Proposed budget would tax candy, caskets, coal
By TOM MURSE
Published Feb 09, 2010 22:10

If Gov. Ed Rendell gets his way, you'll soon be paying sales tax on Barnstormers' tickets, Fido's trip to the veterinarian, that candy bar you buy from the vending machine — not to mention newspapers.

And that's not all.

Your dry cleaning? Taxed.

American flags? Taxed.

Basic television? Taxed.

Your casket and burial expenses? Taxed.

"You get taxed your whole life, and now (Rendell) wants to tax you at the time of somebody's death?" asked Chip Snyder, the owner of Charles F. Snyder Funeral Home Inc.

Yes, indeed.

Rendell, in his eighth and final budget address Tuesday, called on the Legislature to cut the state sales tax from 6 percent to 4 percent, and expand it to include dozens of items that are now exempt.

The move is designed to head off a "fiscal tsunami" after he leaves office at the end of the year — a combined $5.6 billion deficit from the 2011 expiration of federal stimulus money and a 2012 spike in pension obligations.

The proposal, which must be approved by state lawmakers, would raise about $531.5 million from September through June 2011 — revenue that would not be available until the next fiscal year.

But the idea is not sitting well with folks who provide those types of services in Lancaster County.

Legal services? Taxed.

"Attorneys are expensive enough without having a sales tax added on," said Lancaster attorney John May. "On a $1,000 bill, that would be $40. I don't think it's fair. I don't think it's right."

A martini at your favorite bar or restaurant? Taxed.

"This is another layer of taxation on alcohol," said Ray Hottenstein, the owner of The Olde Greenfield Inn and longtime member of the Pennsylvania Restaurant Association.

Beer and liquor are already taxed at distributors and state-run liquor stores, costs that are passed on to customers.

"We would be opposed to any across-the-board increase in taxes on drinks across the bar without industry compensation," Hottenstein said. "This is just going to kill us, unless he repeals the Johnstown Flood Tax."

The tax is an 18-percent surcharge on every bottle bought at a state liquor store.

Metal bullion and investment coins? Taxed.

Dennis Steinmetz, the owner of Steinmetz Coins & Currency on Centerville Road, called the idea "foolish."

"There are 26 states that don't tax that," he said.

One of them is neighboring Maryland.

"All it's going to do is push business out of state," Steinmetz said. "Why would you buy a gold coin from me for $1,000 and pay taxes when you could go elsewhere and pay zero in taxes? This is a very poor and nonrevenue productive bill for the state."

Under the plan, Rendell proposes to extend a 4-percent sales tax to 74 services and other transactions that are currently exempt, including many professional services, home electric bills, candy, gum and personal hygiene products.

His plan would keep intact some major exemptions, including those on groceries, clothing and prescription drugs.

Basic TV? Taxed.

"We've got no comment," said Bob Grove Sr., a spokesman for Comcast, the cable outfit Rendell works for as a sports commentator.

Dry cleaning? Taxed.

"I know Gov. Rendell does things like try to sell the Turnpike," said Gail Weaver, co-owner of West End Cleaners in New Holland. "He tries to put taxes on everything he can. So people will get less service for what they're paying."

Weaver, of course, is opposed to the idea.

"The state has to learn to live within their budget," he said, "and start saying no to people who are yelling for things."

Crematories & death care services? Taxed.

"That will put a burden on many, many people," Snyder said. "I'm totally against it. It's totally unfair to constituents. We have one of the largest senior populations, and with unemployment the way it is?

"Mr. Rendell should probably do some other things — get off ESPN — and worry about some other issues," Snyder said.

 

Rendell released the following list of 74 items he is proposing to tax:

Accounting, auditing and bookkeeping services

Administrative services

Advertising, public relations and related services

Air transportation

Airline catering

All other professional and technical services

Amusement and recreation industries

Architectural, engineering and related services

Bad debts

Basic television

Call center credit

Candy and gum

Caskets and burial vaults

Catalogs and direct mail advertising

Charges for returnable containers

Coal

Coin operated food and beverage vending machines

Commercial vessels (construction and repair)

Commercial vessels (equipment and maintenance)

Common carriers

Construction of memorials

Consulting (scientific, environmental and technical)

Custom programming, design and data processing

Dry-cleaning and laundry services

Electric residential

Electrical, plumbing, heating and air-conditioning service fees

Financial institutions fees

Firewood

Fish feed

Flags

Fuel oil/gas — residential

Funeral parlors, crematories and death care services

Gratuities

Helicopters

Horses sold to out-of-state purchasers

Hotel — permanent resident

Information services

Investment metal bullion & investment coins

Legal

Liquor or malt beverage purchased from retail dispenser

Magazines

Manufacturing exemption (public utility)

Motor vehicles (out-of-state purchases)

Museums, historical sites, zoos, and parks (for profit)

Newspapers

Non-prescription drugs

Other transportation

Other: personal services

Parking lots and garages

Personal care services

Personal hygiene products

Rail transportation equipment

Recreational parks, camps and campgrounds

Rental of films for commercial exhibition

School buses

Scientific research and development services

Services to buildings and dwellings

Specialized design

Spectator sports admissions (excludes schools)

Stair lift devices

Telephone — residential

Temporary usage

Textbooks

Theater, dance, music and performing arts admissions (for profit)

Tourist promotion agencies

Transit and ground transportation

Trout

Truck transportation

Uniform commercial code filing fees

Veterinary fees

Warehouse storage

Waste management and remediation services

Water and sewage services

Wrapping and packing supplies

tmurse@lnpnews.com

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