The decision was passed with an 8-0 majority during a council meeting on August 9th.
Aspinwall business owners are facing an increase in the business privilege tax as the borough grapples with rising expenses
The business privilege tax, which previously stood at $100, will now be set at $500, marking a substantial shift. Heth Turnquist, councilman, and finance chair, highlighted the necessity of this business privilege tax adjustment to offset escalating costs, including infrastructure improvements, employee compensation, and other essential outlays. The move aims to ensure the borough’s financial stability without driving businesses out of operation. Turnquist revealed that without such measures, a projected budget deficit of $300,000 looms ahead.
Adriene Rister, the owner of Spark Books, voiced concerns about the sudden and significant increase, labeling it a 500% surge. She questioned the rationale behind the $500 figure and cautioned against setting a precedent for future tax hikes. Moreover, Rister criticized the lack of advanced communication with businesses about the change.
Turnquist justified the increase by noting that property owners have faced an accumulated $400 surge in real estate taxes over the past two decades, coupled with inflation.
The last adjustment to the business privilege tax occurred in 2004
The council vowed to cooperate with businesses struggling due to the business privilege tax hike, though specific remedies were not outlined in the ordinance. Councilwoman Patti McCaffrey assured business owners that their concerns were taken into account and acknowledged the difficulty of the decision-making process.
The tax alteration is anticipated to generate an extra $48,000 for the borough’s general fund. Despite a previous collection of $12,000 from the business privilege tax with participation from 120 businesses, Keystone Collections identified around 300 businesses, including home-based enterprises, subject to the tax.
Borough Manager Melissa Lang O’Malley revealed plans to seek alternative options for both delinquent tax collection and business privilege tax administration. The borough’s focus remains on financial stability while maintaining a conducive environment for local businesses.