Columbia Montour Chamber Statement on the Cleveland Township Amusement Ordinance
By Chris Berleth, President
Columbia Montour Chamber of Commerce
On behalf of the Columbia Montour Chamber of Commerce, I write to express extreme disappointment and concern at the decision by the Cleveland Township Supervisors to pass an ill-advised amusement tax ordinance. Further, I urge the supervisors to repeal this ordinance immediately in favor of the good-will alternatives proposed and negotiated in public Township meetings over the last several months.
While the Chamber understands and respects the responsibility of the Township Supervisors to steward Township resources and balance its budget, we call this ordinance “ill-advised” for several key reasons:
First, the issues facing the Township’s budget, including an anticipated adjustment in the cost of police coverage coupled with systemic road repair issues (which Supervisors indicated as the key factors behind the need for the ordinance) cannot possibly be addressed by such a tax. (It would take years of tax collection to generate the millions necessary for the extensive road repairs.) Rather, the Township would be better suited to take advantage of the assistance offered by several organizations to identify and apply for grants, including a portion of the nearly $86 million in newly allotted liquid fuels discretionary funds built into this year’s state budget.
Second, the family of businesses most impacted by this industry-specific tax is located inside three townships and two counties and already pays a hefty share in local taxes. That family of businesses, which has long acknowledged that its operation impacts local services, has for decades gone above and beyond to mitigate this impact by assisting with Township expenses and by offering sizable and regular voluntary contributions to all three townships.
Third, upon learning of this proposed ordinance, the Chamber advocated for data-driven decision-making in collaboration with potentially impacted businesses. In four months, no new data has been presented which suggests this tax is appropriate or proportional as an "impact fee" on Cleveland Township roads.
Fourth, when included in discussions with the Supervisors, impacted businesses repeatedly expressed alarm at:
- the proposed ordinance’s impact and misunderstanding of their business model
- anticipated additional operational expenses, especially those expected for the purpose of tracking the tax in one township and in ensuring compliance
- a new township-specific, industry-specific required license to operate
- a massive increase in their tax liability beyond their perceived sustainability
- the vagueness of the ordinance itself.
Fifth, in good faith, those businesses offered to significantly increase their voluntary contributions to the local governments, and enlisted staff to research additional ways to assist. (This came after the organization increased their contribution earlier this year.)
Sixth, this Chamber holds that no business owner acting in good faith should be asked to endure four months of uncertainty if it can be helped, especially when that good faith and excellent business practices have generated decades of goodwill, inspired accolades at a national level, and resulted in nearly 100 years of longevity.
Seventh, the passage of such an ordinance will likely damage the trust between excellent businesses and local government.
Eighth, any tax which targets a successful industry runs the risk of disincentivizing expansion or growth of that industry within the footprint of said tax.
Ninth, a tax of this magnitude affecting so few businesses is likely to be subject to strong legal scrutiny, which is likely to cost taxpayers unnecessary additional legal expense.
For all these reasons, the Columbia Montour Chamber stands with local business in opposition to the Cleveland Township Amusement Tax Ordinance set to go into effect January 1, 2025.