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Scranton Asks Judge for Another Tax Hike

SCRANTON — People who work in Scranton may soon see more money coming out of their paychecks. City officials were in front of a judge on Wednesday asking ...
scranton city hall

SCRANTON -- People who work in Scranton may soon see more money coming out of their paychecks.

City officials were in front of a judge on Wednesday asking to increase Scranton's local services tax. The extra money has already been budgeted for, even though the request is still in the judge's hands.

Most of us pay the local services tax to the municipality that we work in. It's typically $52 per year, paid all at once, or weekly $1 payments.

The city of Scranton plans to triple that tax to $156 per year, but first, they have to get court approval.

This is the third time in almost as many years that the city of Scranton has gone in front of a judge to ask for a tax increase. The city has yet to succeed. But this time, Mayor Bill Courtright is backed by a new state law that allows cities to increase a local services tax.

"It's difficult. These are difficult decisions, you know, to raise the LST tax is not an easy thing to do, but it's a necessary thing to do. If we don't make these tough decisions, the city's not going to get out of the situation we find ourselves in," Courtright said.

The $52 a year tax applies to anyone who works in Scranton, both residents and nonresidents. It helps pay for police and fire coverage, and other basic city services.

Only one person came to the courthouse to oppose tripling the tax.

"No, because it's more tax and spend. Let's account for the money that we basically get, OK, you can't see that. Everybody is frustrated about where that money is coming from and where it is going," said Scranton resident John Walsh.

Even though the tax hike is supported by a state law, Scranton's final roadblock was a visiting judge who shot down the city's commuter tax, or Act 205 tax, last year. This is another attempt for the city to gain more revenue.

"I think that even during the Act 205 pension tax hearings, it wasn't for the court's lack of understanding of the plight of the city, it was a difference of opinion as to what the law allowed at that time. I think that the court was more receptive today in saying that it seems as though the city has followed all of the tenets of the law for this local services tax increase," said city solicitor Jason Shrive.

Scranton officials left the courthouse with confidence.

The judge didn't make an immediate decision, but did give a vote of confidence, saying, "This administration is doing its job ably. I think the mayor deserves recognition for that, no matter the decision I make."

If the judge approves an increased LST tax, it would have to be enacted very soon. It's already budgeted for this year. The tax hike would affect more than 30,000 people who work in Scranton.

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