Aspinwall considers raising $100 business privilege tax to $500

Aspinwall officials are considering raising the borough’s annual business privilege tax from $100 to $500.

Councilman Heth Turnquist, chair of finance and personnel, pitched the idea as a way to generate more revenue for the borough instead of raising real estate taxes, which have remained steady since 2019.

The business tax hasn’t been raised since its adoption in 2004.

Factors driving the proposal is the need for street paving and other improvements.

“Everyone’s aware of the infrastructure demands, and we need to have more cash on hand to do repairs and preventive maintenance,” Turnquist said. “We’ve been looking into other options to hopefully lessen the burden on homeowners in Aspinwall.”

The increase is expected to impact about 120 to 150 businesses and would increase revenue the tax generates from about $12,000 annually to between $50,000 and $60,000 a year.

The business privilege tax is applied to businesses making at least $2,000.

“We have held the line on increases in millage rates since 2019,” Turnquist said. “However, this rate is no longer keeping up with price increases for materials, wages and benefits. … We are getting a more concrete understanding of if there will be any exclusions or exemptions.”

While Aspinwall has a flat business privilege tax, other neighboring communities have its business tax based on a percentage of gross revenue.

That can be the difference between a few hundred dollars to several thousand, Aspinwall Council President Tim McLaughlin said during the June 14 council meeting.

“This is quite significant,” he said. “When we moved our business from Aspinwall to a mile away in Sharpsburg, our business privilege cost went from $100 to $11,370. You heard it. No typo, I didn’t stutter.”

McLaughlin said $500 is “more than a fair ask” for a business community to help sustain borough services.

State law prohibits Aspinwall from switching its business privilege tax to a percentage.

McLaughlin also said the potential business tax hike received some support at recent Chamber of Commerce meetings.

“The business community and residents of Aspinwall both use our resources in ways of police, fire, public works and borough staff,” he said. “The business community hasn’t had their tax reassessed in quite some time, so we made that adjustment. We’ve been in regular contact with the business community via (the) chamber, and they were aware and supportive of the increase.”

Repeated calls to Chamber Executive Director Giuseppe Francioni were not returned.

Council plans to further discuss the matter at its July 12 meeting.

Residents and business owners will have another opportunity to comment on the proposal at the Aug. 2 workshop meeting. Formal adoption is expected Aug. 9.