Community Banker Alert

On behalf of PACB, I was one of the principal speakers today at a Capitol press conference announcing broad and widespread opposition to the proposal which would expand the state sales tax to include banking and other professional services in order to eliminate the school property tax.

As we have previously noted, the PACB Legislative Committee voted to oppose this plan and participate in the coalition working to defeat this plan. We have every indication that this proposal is definitely part of the range of options the Legislature is considering to solve the property tax dilemma. Along with many other seasoned political observers and strategists in Harrisburg, we are convinced that the General Assembly is under enormous pressure to produce something called “meaningful tax reform” as a result of the huge outcry and opposition to the legislative pay raise.

I cannot emphasize enough how vital it is for community bankers to contact state legislators that represent your financial institution and branch offices and legislators with whom you have developed a relationship and inform them of your opposition. Time is of the essence for these contacts as the Legislature may vote on this issue as early as next week.

The more we analyze this proposal, the better understanding we have that this new tax, if enacted, would be an enormous administrative burden and impose new and substantial costs on community banking and would, without question, be detrimental to our customers, particularly those from lower incomes and small to medium-sized businesses that rely heavily on outside professional services including banking.

I have included with this alert a copy of my remarks at the press conference. Please feel free to draw upon them as you make your contacts to your legislators. If you need any other material or have questions, please contact Dave Transue who will be happy to assist you.

Thanks so much.

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