Much can be said about "temporary" taxes.

In 1936, Johnstown, Pennsylvania suffered severe flooding in their city. On June 9, 1936, the State Legislature acted by drafting a temporary emergency tax to support the victims of the Johnstown flood. Today it is better known as the Liquor tax.

Established on June 9, 1936, this legislation levied a 10% tax on bottles of wine and spirits sold in every Pennsylvania wine and spirit shop. In recent years, the tax was increased to 15% on June 7, 1963 and subsequently increased again on January 1, 1968 to 18%.

Similarily, the Pennsylvania Turnpike Commission was established in the 1920's and created the nation's first "superhighway". The funding for the construction of this highway was to through the "temporary" levy of a highway toll. Seventy years later, the toll continues to be levied.

Critics question the status of the Regional Renaissance Partnership's claim to a temporary sales tax. Since past experience shows that other temporary taxes continue in existance, many believe that this would not be any different.

The proponents of this legislation claim that since it a referendum, the continuation of this tax after 7 years would have to put onto a second referendum.

Upon review of page 20 of Senate Bill 125, the RRP legislation, you will note the following language:


REGIONAL RENAISSANCE AUTHORITY


The aforementioned language is very clear that once this Authority is created, it will not be dissolved, creating the need for continued taxation to fund its existence. In order to solidify the authority's existence, this board has the power to create debt that goes beyond the seven year period.

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