|June 23, 2008
Business Personal Property Tax Proposal
Recently the League has received correspondence from several mayors regarding a proposal known as Municipal Revenue Restoration Act of 2008. A League Task Force has also reviewed this proposal, which is not yet in bill form. As presented it certainly appears to address some concerns the League has raised for the past several years.
Unfortunately this is still only a proposal and details of it are not available however, the League has voiced some general concerns with the proposal as presented.
1. This is not a restoration of 2008 municipal revenues. The Governor’s proposed $190 million municipal property tax relief funding cuts still will need to be restored in the State’s FY 2009 appropriations act. This proposal would provide benefits and prevent serious property tax impact in future years.
2. We have urged consideration for a mechanism to provide for direct payment of the video sales and use tax to municipalities. State collection concerns us. Even the ‘poison pill,’ though appreciated, has proved insufficient to ensure State compliance with the spirit of the funding provisions of, for example, the Energy Tax.
As background, the League has a long history of urging a more equal tax environment relative to the telecommunications industry. Appropriate Resolutions have been passed at the Annual League Business meeting.
Rest assured the League is closely monitoring this proposal to assure it can best address municipal concerns.
Very truly yours,
William G. Dressel, Jr.