City Facing Backlash Over Business Tax Collection
Once upon a time there was a tax on the books in the Pennsylvanian town of Braddock – something called the Business Privilege tax. Most business owners in Braddock thought it the stuff of legend, up there with unicorns and people who can parallel park on the first try.
The tax has been on the books for years, but business owners say they thought it went away since the borough made little or no effort to collect it.
That is, until Food Wholesaler A. J. Silberman received a $1.4 million bill for taxes and penalties.
In addition, the borough’s council hired a tax collection agency to collect on these back business privilege taxes. Which, coupled with seemingly out-of-the-blue tax bills, isn’t endearing the council at all to the hearts of local business owners. So, said businesses owners are looking at moving out of the area in order to avoid these hitherto uncollected taxes. A move that could spell devastation to Braddock’s business district.
Mayor John Fetterman unsuccessfully fought the borough’s decision to hire the collection agency.
“When you attack a company that's been here almost 80 years, saying you owe money -- the lion share of which is going to go to a collection agency -- you leave them no choice,” he told KDKA.
Council members referred the matter to the borough’s attorney who did not return phone calls.
But the mayor says council is dug in on the matter, even if it costs the borough jobs and businesses.
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