Jun. 23, 2020
HARRISBURG – Legislation drafted by Rep. Lee James (R-Venango/Butler) to bridge the tax gap necessitated by COVID-19 received unanimous support in the House. The bill would authorize local governments to borrow money for two years, rather than just one year, so they can maintain operations.
Previously, a borrowing term of one year was sufficient. However, as tax payment deadlines have been extended for residents to alleviate some of financial burdens caused by COVID-19, deadlines also need to be extended for local governments.
“It’s important that residents – who have been forced out of work against their will – have some flexibility in paying their local taxes. It’s great that local governments across the state are accommodating that need, and my bill is about making sure the municipal bodies are not compromised in the process,” James said. “Allowing them to extend their borrowing terms will help them to serve residents without limitations or interruption.”
Local governments make budget expenditures throughout the year, but only receive revenue on a periodic basis throughout the budget year. Borrowing via tax anticipation notes provides a steady stream of funding with minimal additional costs.
As
House Bill 2536 received support in the House, it now moves to the Senate for consideration.
Representative Lee James
64th Legislative District
Pennsylvania House of Representatives
Media Contact: Alison Evans
717.260.6206
aevans@pahousegop.com
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