HARRISBURG, Pa., Dec. 21, 2005 (PRIMEZONE) -- The Pennsylvania Chamber of Business and Industry urges the Senate to non-concur with property tax reform amendments added by the House on Tuesday to Senate Bill 854.
"We are extremely concerned that the desire to provide voters with property tax reform has trumped good public policy," said Maura Donley, PA Chamber vice president of communications. "To enact taxes on business services in order to pay for residential school district property tax relief is short-sighted and makes bad economic sense."
Senate Bill 854, which would provide much needed health-care relief for employers through tax credits for contributions to health savings accounts, was amended in the House to expand the sales tax base to include numerous professional services typically purchased by businesses, such as management, consulting and public relations.
Donley said a tax on management services would affect nearly every aspect of business operations, from site selection to security and safety.
Under the bill as passed, businesses would be taxed for seeking advice on managing environmental contamination or hazardous materials, as well as for assistance in expansion decisions. Even individuals seeking advice for new business start-ups would be taxed under the House plan.
"There is little doubt that this bill would be harmful to Pennsylvania's job creators," Donley said. "Pennsylvania has one of the most onerous business tax climates in the country. Shifting hundreds of millions, if not billions, of dollars onto the business community to provide residential property tax relief only exacerbates an already dire situation for our economy."
Studies clearly indicate that Pennsylvania businesses pay more taxes per capita than most states in the nation.
In addition, nearly every economic indicator continues to demonstrate that the Commonwealth is slipping further behind the rest of the nation in the race for economic viability. The Commonwealth's rate of growth in gross state product, employment and personal income shows that Pennsylvania is underperforming economically.
"The more onerous our business climate becomes, the worse off our economy is," Donley said. "The changes to this bill would only hinder Pennsylvania employers' ability to maintain and create family sustaining jobs.
"We implore the Senate to non-concur on House amendments to S.B. 854, and urge subsequent conferees to develop a property tax plan that provides fair and appropriate relief to all taxpayers; provides cost-saving measures to local school districts; and does not harm Pennsylvania's economic viability."
The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with more than 12,000 members statewide. More information is available on the Chamber's website at www.pachamber.org.
The PA Chamber of Business and Industry logo is available at: http://media.primezone.com/prs/single/?pkgid=353