Typical PA: mismangement of the borough leads to heavy taxation which leads to businesses leaving your jurisdiction! No, I don't think HIA can and will go anywhere, but Cramer's is a different story.
And $4.88 MILLION in collected taxes and the airport still cries for money from time to time?!? LOL get real...
*And somebody's math is WAY off here, because 10% of $4.88 mil. is not $48,000-$50,000.
Good Lord, what a mess...
Ruling favors tax on HIA parking
Middletown schools win support on fees dispute
Wednesday, June 14, 2006
BY REGGIE SHEFFIELD
Of The Patriot-News
A Dauphin County judge says the Middletown Area School District can tax parking at the Harrisburg International Airport, while school officials still pledge to share 10 percent of the proceeds with the airport.
In March 2005, the school district suggested imposing a 10-percent tax on those who park at the airport. HIA officials immediately moved to block it, claiming the tax would be unfair.
In a 66-page decision released late yesterday afternoon, Judge Lawrence F. Clark Jr. overruled arguments from airport attorneys that municipal bodies aren't supposed to tax each other.
"We're very pleased," said Middletown Area School District superintendent Audrey L. Utley.
"It's a win for the taxpayers of Middletown," she said.
The Middletown Area School Board likely will discuss the issue Monday night.
Clark acknowledged in his opinion that the school district could not legally compel the airport to collect a tax for the district, but urged both parties to work together.
"Obviously, this court hereby strongly encourages these parties to adopt a combined single transaction process for collecting the tax so as not to burden the departing parking patrons," Clark wrote.
The school district's attorney, Jeff Litts, said school officials are willing to turn over 10 percent of their proceeds to the airport for costs HIA incurs in collecting the tax.
Litts estimated that would amount to between $45,000 and $50,000 a year.
HIA director Frank Testa declined comment on the decision.
"I gotta see the whole body of the opinion," said Testa, who is an attorney.
Airport attorney Tim Nieman similarly declined comment, saying that he had not had a chance to review the opinion.
School district officials have estimated that they are missing out on the 10 percent of $4.88 million in parking fees collected by the Susquehanna Area Regional Airport Authority in 2004.
Similar taxes have been in effect at airports in Philadelphia, Pittsburgh and the Lehigh Valley, district officials have argued.
The school district also seeks to tax the adjacent Cramer Airport Parking, a private business.
State Attorney General Tom Corbett in September filed a federal antitrust lawsuit against the airport authority, accusing it of seeking to acquire Cramer Airport Parking to create a parking monopoly around HIA.
SARAA launched its effort to take Cramer by eminent domain in March. The property has been appraised at $1.57 million.