Aspinwall hikes business privilege tax to $500

Aspinwall business owners will have to pay more for the privilege of doing business in the borough.

Council voted 8-0 on Wednesday, Aug. 9 to raise its business privilege tax from $100 to $500 starting this year.

The ordinance was advertised last month. It was also discussed at several meetings.

Heth Turnquist, councilman and finance chair, said the tax hike was necessary to help cover rising costs such as infrastructure upgrades, employee salaries and benefits and other general expenses.

“The goal is not to put anyone out of business,” he said. “The goal is just to pay the bills of Aspinwall.

“We haven’t done the budget yet, but we’re looking at a $300,000 hole (next year). … At some point we all got to pay the bills. Because as soon as we don’t fix the pipes, you guys will go find places that have better business districts where you actually have water. It’s just how it works.”

Business owner concerns

Adriene Rister, owner of Spark Books, questioned how the borough came up with the $500 number. She also expressed concerns about it being a precedent for future tax hikes, and took borough officials to task for not sending letters to businesses informing them of the increase prior to the meeting.

“It’s a 500% increase,” Rister said. “If you try to put that on residents in Aspinwall, there would be wall to wall people in here. … There’s a precedent set when you go that high that fast.

“There’s lots of businesses that would have preferred if you guys went on to $250 and then we talked about it, or if you went to $200 this year and then $300 and then $400.”

Turnquist said property owners are paying about $400 more in real estate taxes due to increases the past 20 years.

That and inflationary factors led to the $500 determination. The business privilege tax has not increased since 2004.

Turnquist said the borough will work with businesses who feel the tax hike is a hardship.

It’s unclear if that means there will be a payment plan or if a portion of the tax would be forgiven.

The ordinance, which was posted on the borough’s website, does not specify remedies for hardships.

Councilwoman Patti McCaffrey wanted to ensure Rister and other business owners that their concerns were being heard.

“We’ve listened to everybody,” she said. “This is not a fun thing to do. This is not a great place to be in on your side or this side at all. There are hard decisions to make. This was in the works for some time.”

More tax revenue

The tax hike is expected to bring in at least $48,000 in additional revenue for the general fund.

Borough Manager Melissa Lang O’Malley said $12,000 in business privilege taxes was collected last year with only 120 businesses paying it.

However, Keystone Collections provided the borough with a list of 300 businesses including several at-home businesses.

O’Malley said they are working with the collectors to identify those who are tax delinquent. The borough does not take business privilege tax payments. Those go to Keystone Collections.

O’Malley said the borough plans to solicit requests for proposals for both delinquent tax collection and business privilege taxes next year to see if there are better options.

Aspinwall’s delinquent tax collector is Pennsylvania Municipal Service.