On Tuesday October 17, the PA House of Representatives passed House Bill 542, the latest incarnation of a revenue plan to match the State Budget spending plan passed last summer. The vote was 102 – 88 with significant crossovers. 46 Republican Representatives voted no to Republican leadership-endorsed HB 542 while 32 Democrats including Democratic leadership voted to support the bill.
Now, of course, it is up to the Senate to concur. Previously, the Senate voted for Marcellus Shale taxes which the House did not accept. The House countered with a revenue bill that went after special dedicated funds such as a fund used to cover Insurance Department general government operations, monies dedicated to conservation, districts, etc. The Senate disagreed so this House vote on HB 542 was its response to the Senate rejection. The Senate is expected to vote next week. If the Senate agrees, HB 542 will go to Governor Wolf.
Following are a number of provisions in HB 542 that might be of interest.
- Borrowing from future revenues from the Tobacco Master Settlement Agreement is expected to generate $1.5 billion. It will be repaid over the next 30 years.
Background: The Tobacco Settlement was the result of lawsuits against tobacco companies which resulted in a settlement where tobacco companies would not have to fight off many individual lawsuits but would instead pay states certain amounts each year. Pennsylvania uses that money to fund medical research, smoking cessation, uncompensated care from hospitals, specialized state health programs, etc.
- Expansions of the Sales Tax
- “Remote sellers” = $10 million in this fiscal year and $50 million thereafter
- Exemption from the Sales Tax: Beer kegs
- Personal Income Tax (PIT) Expansion = $20 million
- Those making rent or royalty payments to out of state entities exceeding $5,000 must withhold the PIT.
- Out of state independent contractors coming into PA for work receiving over $5,000 will see PIT withheld from their compensation.
- Personal Income Tax
- Deductions for contributions to ABLE (disabled account similar to IRA) allowed
- Makes permanent check-offs for Wildlife Resource Confirmation Fund, Organ Donation Awareness Fund, American Red Cross, Military & Family Relief Assistance Fund, Children’s Trust Fund
- New Taxes
- Carsharing Fee depending on distance from 25 cents to $2.00. Monies go into a dedicated account, the Public Transportation Assistance Fund. Carsharing is defined as membership providing an alternative to a privately-owned vehicle where the rental is not trip-specific written agreement, no attendant is present when the car is used, and with access to shared vehicles 24 hours a day, fees can be based on time or distance.
- Fireworks: 12% tax on consumer fireworks
- Annual license fees paid by fireworks sellers for permanent structures facilities range from $7,500 to $20,000 depending on square footage.
- Annual license fees for temporary (seasonal) fireworks facilities are $3,000.
- Miscellaneous: Anticipated revenue is $20 million/year.
- Taxpayer period to file petition for reassessment shrinks from 90 to 60 days.
- Period where a taxpayer appeals a Board of Appeals tax decision to the Board of Finance Revenue decreases from 90 to 60 days.
Those interested in how Representatives voted may go to
OTHER LEGISLATIVE UPDATES
- No funding yet for Penn State College of Agricultural Sciences and the University of Pennsylvania School of Veterinary Medicine. A joint hearing will be held by the Senate Agriculture & Rural Affairs, Senate Education, and Senate Appropriations Committees October 25 on funding for Penn State College of Agricultural Sciences and the University of Pennsylvania School of Veterinary Medicine.
- The House adopted House Resolution 515 (Fritz-R-Susquehanna) on October 17 putting the House on record as opposing a September 13 decision by the Delaware River Basin Commission to move a Rule forward to ban fracking in most of northeast PA. The Commission vote was 3-1 with one abstention. PA Governor Wolf voted with the Governors of New York and Delaware for the anti-fracking Rule. The House vote does not legally prevent the Delaware River Basin Commission from moving ahead with the Rule review process.
- House Bill 790 (Pashinski-D-Luzerne) passed the Senate 49-0 on October 18 and was referred to the House Rules Committee. The House now must consider amendments made to the bill in the Senate.
PA STATE COUNCIL of FARM ORGANIZATIONS MEDIA RELEASE August 21, 2017
26 North 9th Street, Lemoyne, PA 17043
Contact: Vince Phillips 717-232-9665, email@example.com
The Pennsylvania State Council of Farm Organizations (PSCFO) urges the PA House of Representatives to take action on legislation which would allow already approved funds to go to agricultural programs at Pennsylvania State University and money going to the University of Pennsylvania’s School of Veterinary Medicine.
According to PSCFO which represents almost seventy agricultural and commodity groups, this legislation is called “non-preferred” and enables funding to some of PA’s universities. Monies for Penn State School of Agricultural Sciences (agriculture research and extension programs) were already approved during the State Budget process which resulted in spending levels for state programs in the fiscal year beginning July 1, 2017. The “non-preferred” legislation enables this already approved money to go to those programs. In addition, Penn State faces another problem in that federal matching funds cannot flow to the College of Agricultural Sciences until PA General Assembly passes this enabling legislation. The University of Pennsylvania’s School of Veterinary Medicine will lose $30 million in state funding if “non-preferred” legislation is not passed.
“We ask that the House consider voting for these “non-preferred” bills separately from the divisive revenue-related issues now causing the budget impasse” said PSCFO President Jeff Nogan.
Ag Progress Days features the latest technology and research exhibits, educational programs, and guided tours. Sponsored by Penn State’s College of Agricultural Sciences, the event celebrates the forty-second year to be held at the Russell E. Larson Agricultural Research Center at Rock Springs, nine miles southwest of State College, Pa. It is one of only three agricultural exhibitions in the country sponsored by a major University. Our exhibits showcase the latest in Penn State research, as well as information on best management practices and changing regulations in the agricultural industry.
With close to 500 exhibitors from 34 states and 4 provinces of Canada, we have something for everyone. Each year, farming families from across Pennsylvania and surrounding states attend this three-day event. Of the 45,000 expected attendees, over 60 percent are actively engaged in agriculture or related professions. Come and learn about the latest innovations in the agricultural industry and spend your day with Penn State Extension educators.
Ag Progress Days features include:
- 80+ acres for crops and machinery demonstrations
- 55 acres for indoor and outdoor exhibits
ROCK SPRINGS – The 2014 Penn State College of Agricultural Sciences AG PROGRESS Days August 12-14 in Rock Springs features a wide variety of programs, several of which are listed below. (Complete listing at http://agsci.psu.edu/apd/events)
- Marcellus Shale: August 12 includes no fewer than five programs including Post-Leasing Issues for Landowners and Negotiating Natural Gas Pipeline Easements in Agricultural Land. In addition, DEP will present a program on how Marcellus Shale natural gas resources are regulated as well as describing proposed revisions currently under consideration.
- Public Policy: Farm Bill Dairy Margin Protection; Public Forum on 2014 Farm Bill and State of PA Agriculture; House Agriculture & Rural Affairs Committee Public Hearing. These are all on August 13.
- Conservation/Environment: USDA Agricultural Research Service is presenting a program August 14 on Riparian conservation for managed grazing lands. It ties conservation objectives (habitat, nutrients, sediments) to agricultural production objectives (watering source, maximizing land productivity) with management options (moveable fence, flash grazing).ROCK SPRINGS
ROCK SPRINGS – An Ag Progress Days staple are the research tours ranging from habitat for deer and other wildlife to management tactics for high yielding soybeans.
Some other tours include woodlot management, stream (riparian) buffers and native prairie grasses, short rotation woody crops for biomass, Penn State’s Deer Research Center; pasture management, American Chestnut Foundation plantings, etc.
In addition, a tour of the High Tunnel Research & Education Facility demonstrates current production systems and horticultural crops that can be produced in high tunnels. Complete list of tours is found at http://agsci.psu.edu/apd/events/tours
PSCFO Recognizes Pechart
PSCFO’s June Council meeting recognized former PDA official Michael Pechart who served under Governors of both parties for eleven years and who retired from PDA earlier this year to take a private sector position. He was a huge resource for PDA and for the entire Agricultural Community.
Huber Re-Elected to PSU Board
In addition, Immediate Past PSCFO President Betsy Huber was re-elected to the
Penn State Board of Trustees. Congrats Betsy!
The Council voted unanimously to rate all three Penn State Trustee candidates as qualified. Two are incumbents seeking re-election, past PSCFO President Betsy Huber and current Trustees Chairman Keith Masser. The third candidate is former state representative Jess Stairs (R-Westmoreland). All three made presentations to the Board.
If you would like copies of their bios, please contact PSCFO at firstname.lastname@example.org.