A change to Petersburg’s senior sales tax exemption could go before local voters this fall, if the Petersburg Borough Assembly decides to pass it forward when they meet this evening, June 16.
The borough issues sales tax exemption cards to senior citizens who apply and pay a $100 fee. An individual must be at least 65 years old and live permanently in Petersburg to qualify. Seniors who choose to get their individual sales tax exemption card need to have it with them to use it; card holders can use it on most purchases, except for purchases or services meant for trade or business.
Petersburg’s population has aged a lot since the exemption began over four decades ago. Nearly a quarter of Petersburg’s residents are seniors. According to the borough, it loses nearly half a million dollars a year in tax revenue from the senior exemption.
The proposed change would make it so that only low-income seniors qualify for the card. If the assembly passes it, the question will be on the October municipal ballot because any change to the sales tax must go to a public vote.
Petersburg’s sales tax is currently 6% and sales tax revenue is down from past years. The borough is looking for ways to afford the increased costs of services.
According to the proposal, this change would not affect existing sales tax exemptions for utilities like electricity, water, wastewater, and garbage, or prescription and medical costs.
The borough is also considering raising revenue through charging customers higher rates for water, sewer, and electricity. The assembly will take the final vote on that at Monday night’s meeting. If approved, electricity rates would increase by about 10%, water rates by 3%, and sewer up 25% starting in the next fiscal year. The Petersburg Borough is looking at a 65% increase in sewer rates over the next five years.
According to borough officials, the increases are needed to keep up with the costs of much-needed maintenance projects.
The assembly approved the senior sales tax exemption change and all of the rate increases twice already, and will take their third and final vote tonight. While there aren’t any official public hearings for the issues tonight, community members can still testify to the assembly under “persons to be heard related to the agenda” toward the beginning of the meeting.
The Petersburg Borough Assembly meets tonight at 6 p.m. in the Assembly Chambers. KFSK will broadcast that meeting live.
