Lawmaker Proposes Redirecting PA Flood Tax Money
March 15, 2010 9:09 AM
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Chris Forshey/AP
Nearly 75 years after the 1936 flood in Johnstown, a tax on alcohol that bears the name of the disaster still sends millions annually into state coffers.
But state Representative Bryan Barbin now wants to use part of the money to bail out strapped local governments and programs for a decade - before eliminating the tax altogether. The tax was instituted in 1936 after St. Patrick's Day floodwaters killed several dozen people and caused an estimated $41-million in damage. Originally a 10-percent levy on liquor, the tax was used to help with cleanup but remained after the work was done.
Raised twice over the decades since, proceeds of the current 18-percent tax on wine and other liquor sales generates $270-million that goes directly into the state's general fund, Barbin said. His measure would direct those funds to battle urban blight and fill an anticipated funding gap in the state's pension system. The tax would be eliminated in 2021.
Nearly 75 years after the 1936 flood in Johnstown, a tax on alcohol that bears the name of the disaster still sends millions annually into state coffers.
But state Representative Bryan Barbin now wants to use part of the money to bail out strapped local governments and programs for a decade - before eliminating the tax altogether. The tax was instituted in 1936 after St. Patrick's Day floodwaters killed several dozen people and caused an estimated $41-million in damage. Originally a 10-percent levy on liquor, the tax was used to help with cleanup but remained after the work was done.
Raised twice over the decades since, proceeds of the current 18-percent tax on wine and other liquor sales generates $270-million that goes directly into the state's general fund, Barbin said. His measure would direct those funds to battle urban blight and fill an anticipated funding gap in the state's pension system. The tax would be eliminated in 2021.
