Business Privilege Taxes?

[Jeff Ream]

34 minutes ago, Fred Windish said:

Exactly.  But it appears the city is capable of succeeding here. At least, selectively.

There is no doubt Allentown has created its own financial hole after at least a decade of bad decision-making. If you recall, the Mayor during the “YEA” years downtown now sits in Federal Prison serving a 12 year sentence for funny business in office. Numerous other bad decisions too. They just passed a 23% tax increase on residents!

For this particular tax, they are going back 10 years. It’s a desperate municipality that will seek new revenue sources under every rock. Certainly a situation to consider going forward. Both for YEA and DCI.  

 

Isn't YEA's current home part of the next zone downtown to be redone aka demo'd and rebuilt in the plan that created the arena? If I recall at some point, they were discussing looking for a new home.

[JimF-LowBari]

48 minutes ago, Tim K said:

You make valid points, and I too thought about hospitals and colleges, but if you live in the Boston area like I do, the endowments of Harvard, M.I.T., Boston College, Boston University, Mass General, Brigham and Women’s, etc. are pretty substantial. Each also needs municipal services. To be fair, many nonprofits in Boston make donations to the city in lieu of taxes, and many of these institutions provide valuable services to the community, but as it gets more difficult to balance municipal budgets, difficult decisions have to be made. That being said, why did Allentown choose to target the Parkettes? When it comes to local politics, it could be to set an example. It could also be that City Official “Joe Jamoca’s” favorite niece Clarabelle was not accepted by the Parkettes and a loophole of a law was discovered. 

Mechanicsburg where I work and think Harrisburg have occupational fees to offset cost of services business incur. Last I remember $10 from first $1000 you make each year. 

[Fran Haring]

1 hour ago, Tim K said:

You make valid points, and I too thought about hospitals and colleges, but if you live in the Boston area like I do, the endowments of Harvard, M.I.T., Boston College, Boston University, Mass General, Brigham and Women’s, etc. are pretty substantial. Each also needs municipal services. To be fair, many nonprofits in Boston make donations to the city in lieu of taxes, and many of these institutions provide valuable services to the community, but as it gets more difficult to balance municipal budgets, difficult decisions have to be made. That being said, why did Allentown choose to target the Parkettes? When it comes to local politics, it could be to set an example. It could also be that City Official “Joe Jamoca’s” favorite niece Clarabelle was not accepted by the Parkettes and a loophole of a law was discovered. 

Good point.

The game of taxation is not always played on a level field, when it comes to local/regional politics.  Living in Maryland for nearly 30 years now.... there are numerous politicians who have never met a revenue-raiser they didn't like.  LOL.  I'm sure that's the case elsewhere, too.

[cixelsyd]

1 hour ago, Tim K said:

That being said, why did Allentown choose to target the Parkettes? 

Well, just look at that photo in the article.  They have a whole building with their name on it.  They look like a bigger target than other non-profits who just rent a little space here and there.

Maybe one of our Guidestar users can elaborate.

[Fred Windish]

2 hours ago, Jeff Ream said:

Isn't YEA's current home part of the next zone downtown to be redone aka demo'd and rebuilt in the plan that created the arena? If I recall at some point, they were discussing looking for a new home.

Yes, the building in which YEA rents space is inside the Neighborhood Improvement Zone (NIZ). However, I really don’t expect that building to be razed for something else. The NIZ program has just about played itself out. Plenty of empty office space downtown and little incentive for a developer to want that footprint.  By the way, the Parkettes OWN their building. YEA rents.

Also, to find even more funds, the city is hoping to adopt a “rain tax” on ALL nonpervious surfaces. This ridiculous tax would thus hurt schools, churches, hospitals, colleges, and STADIUMS very hard. Most of that would pass down to those who use such spaces. Hmmm, wonder who that is?

Bottom line, it’s probably wise for YEA and DCI to anticipate rising expenses. Perhaps even leading to a move elsewhere at some point. I have no knowledge of the deal YEA has here or if it has given much consideration to finding another home.

 

[MikeD]

4 hours ago, dans said:

Bingo! Follow the money.

No, I don't think they have Bingo at this point.   

Oh.....never mind.     

 

[JimF-LowBari]

15 minutes ago, Fred Windish said:

Yes, the building in which YEA rents space is inside the Neighborhood Improvement Zone (NIZ). However, I really don’t expect that building to be razed for something else. The NIZ program has just about played itself out. Plenty of empty office space downtown and little incentive for a developer to want that footprint.  By the way, the Parkettes OWN their building. YEA rents.

Also, to find even more funds, the city is hoping to adopt a “rain tax” on ALL nonpervious surfaces. This ridiculous tax would thus hurt schools, churches, hospitals, colleges, and STADIUMS very hard. Most of that would pass down to those who use such spaces. Hmmm, wonder who that is?

Bottom line, it’s probably wise for YEA and DCI to anticipate rising expenses. Perhaps even leading to a move elsewhere at some point. I have no knowledge of the deal YEA has here or if it has given much consideration to finding another home.

 

Nothing like doing things that will have new businesses looking elsewhere to locate 

[Jeff Ream]

4 hours ago, Fred Windish said:

Yes, the building in which YEA rents space is inside the Neighborhood Improvement Zone (NIZ). However, I really don’t expect that building to be razed for something else. The NIZ program has just about played itself out. Plenty of empty office space downtown and little incentive for a developer to want that footprint.  By the way, the Parkettes OWN their building. YEA rents.

Also, to find even more funds, the city is hoping to adopt a “rain tax” on ALL nonpervious surfaces. This ridiculous tax would thus hurt schools, churches, hospitals, colleges, and STADIUMS very hard. Most of that would pass down to those who use such spaces. Hmmm, wonder who that is?

Bottom line, it’s probably wise for YEA and DCI to anticipate rising expenses. Perhaps even leading to a move elsewhere at some point. I have no knowledge of the deal YEA has here or if it has given much consideration to finding another home.

 

I had heard YEA was looking outside of the city for various reasons. Would the nonpervious surfaces tax also affect Dorney? Obviously anything run at J Birney, which includes DCI and 2 band circuits...and a lot of PIAA stuff...which begs a question...the schools that use JBC as their home field are the Allentown School District...so would they have to pay themselves this tax?

Edited March 5, 2019 by Jeff Ream

[JimF-LowBari]

31 minutes ago, Jeff Ream said:

.which begs a question...the schools that use JBC as their home field are the Allentown School District...so would they have to pay themselves this tax?

Gonna cut down on the Huskie and Fighting Canary feed 😛

[Fred Windish]

2 hours ago, Jeff Ream said:

I had heard YEA was looking outside of the city for various reasons. Would the nonpervious surfaces tax also affect Dorney? Obviously anything tun at J Birney, which includes DCI and 2 band circuits...and a lot of PIAA stuff...which begs a question...the schools that use JBC as their home field are the Allentown School District...so would they have to pay themselves this tax?

Everything is speculative at this point, but if such a tax went into effect, the school district would pay a tax to the City of Allentown for their impervious acres, including all structures, playgrounds, and parking lots.  I don’t think anyone has yet to determine how much this would cost the school district budget. But, whatever the amount (even if just several thousand dollars) would more than likely be made up  by facility rental increases first, rather than school property tax per household.

I don’t believe Dorney Park is within city limits, so no. That’s South Whitehall Township, I think.

People are leaving New York and New Jersey in record numbers for the Lehigh Valley in Pennsylvania to escape taxes. It’s only a matter of time before people begin to flee the Allentown Area for the same reason.

Edited March 5, 2019 by Fred Windish