News

Harrisburg receiver takes tax fight to Commonwealth Court

Written by The Associated Press | Aug 23, 2012 11:04 AM

(Harrisburg) -- An argument over whether a state appointee can force Pennsylvania's cash-strapped capital to increase taxes is going before a judge.

Thursday's hearing will be before Commonwealth Court Judge Bonnie Brigance Leadbetter.

Harrisburg City Council members are refusing to double the city's 1 percent income tax, but Gov. Tom Corbett's appointee who is managing the city's finances says it's part of a recovery plan that they must approve.

Council members don't like the idea and instead favor a commuter tax or a countywide sales tax.

The city is deep in debt over a costly renovation of its municipal trash incinerator, and it's facing a cash shortfall that may leave it unable to pay its bills soon. Corbett signed a law last year that authorized the unprecedented state takeover of Harrisburg.

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