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Pennsylvania Senate approves Act 47 bill allowing Harrisburg to keep taxing authority

HARRISBURG, Pa. — The city of Harrisburg approved a bill on Wednesday that would allow the city to keep its Act 47 taxing authority for five more years.

Some experts say that passing the bill will only help the city of Harrisburg.

“I perceive that this bill is going to pass without opposition,” said Senator John DiSanto.

This comes after house bill 2557 was passed to the senate for approval on Monday.

The bill will allow Harrisburg to continue to collect local service tax on people who work in the city.

It will also allow the city to collect up to two percent earned income tax over the next five years.

“It’s important for the city to get out of Act 47 so that they can continue to operate at a normal business manor acquiring responsible debt and doing what they need to do for Capitol improvement projects,” said Senator DiSanto.

A spokesperson with Greater Harrisburg Association of Realtors says they support the bill, adding that the city will no longer have to look at alternative means of raising revenue by raising taxes.

“That would have a profound affect on home values and not just home values but rental values as well,” said Edwin Tichenor, said president of Greater Harrisburg Association of Realtors.

“If we see a thriving and prosperous city that value is going to not only be felt within the city, its going to transcend into local municipalities, local counties and so other areas will be prosperous as well, he added.

Tichenor says the bill will help to continue revitalization and sustainable development within the city.

“I think you’re going to see a very vibrant and prosperous city hopefully even like a smaller Pittsburgh or Fish Town Philadelphia if you will,” he added.

“It does create an oversight an oversight board in authority that will make sure that the city operates within the perimeters that the legislature has granted,” added Senator DiSanto.

Senate officials voted on the bill 48-1 Wednesday evening.