A panel of three judges will hear on Dec. 10 in Lackawanna County Court Scranton's request for a commuter tax in 2013.
A 1 percent earned income tax on people who work in the city but live elsewhere is one of the key alternatives to property tax hikes under the city's revised Act 47 recovery plan adopted Aug. 23. The city needs approval from Lackawanna County Court to impose a commuter tax each year that it may exist.
The mayor and council propose to increase the nonresident earned income tax from the current 1 percent to 2 percent, while maintaining the earned income tax of 3.4 percent on city residents, of which 1 percent goes to the Scranton School District.
A 1 percent commuter tax is expected to raise $2.5 million next year for Scranton and $4 million in 2014 and 2015, after which it would be discontinued, council members have said.
A "rule to show cause" issued Thursday by county Judges Terrence Nealon and Robert Mazzoni and visiting Pike County Judge Harold Thomson set a hearing for Dec. 10 at 9:30 a.m., and if necessary another on Dec. 11 at 9:30 a.m., for the panel to hear Scranton's petition to impose in 2013 a 1 percent earned income tax on commuters.
The rule now gives subjects of the proposed commuter tax an opportunity "to show cause (to the court) why the requested relief should not be granted," the rule states.
The city also now must issue a public notice of the hearing in a newspaper of general circulation and in the county's legal publication, the Lackawanna Jurist. Anyone wishing to intervene as a party in the matter, or file a response to the petition, then would have 20 days from the date of the public notice to file petitions with the Clerk of Judicial Records, Civil Division, 1st Floor, Brooks Building, 436 Spruce St., Scranton, Pa.
The city and any intervenors must file memoranda of law in support of their respective positions at least seven days prior to the Dec. 10 hearing.
The city and intervenors/respondents also have until Dec. 5 to file and exchange lists of witnesses and exhibits to be introduced during the Dec. 10 hearing.
Meanwhile, at an Abingtons Council of Governments meeting Thursday night, Mayfield Mayor Al Chelik outlined a plan of opposition to tax, calling on the approximately 20 representatives from Abingtons communities to help see it through.
He said 31 of 39 municipalities in Lackawanna County, excluding Scranton, have expressed interest in fighting the city's proposed commuter tax. However, only seven municipalities have paid the $200 needed to support the legal costs associated with the fight.
"We need the money as quickly as possible because we plan to be there for the Dec. 10 hearing," Mr. Chelik said. "I think there is a greater sense of urgency now that there is a hearing date, but we are ready for this."
Mr. Chelik said he plans to meet with an attorney tomorrow to further discuss the case and potentially finalize an agreement. Once an agreement is reached, the group will organize several countywide meetings to garner more support.
Also at the meeting, which was held at the South Abington Twp. Municipal Building, Scott Twp. Supervisor Michael Giannetta emphasized the importance of a "committed effort" among municipalities. He said if the city wins the legal battle, nonresidents of Scranton who work in the city will be paying the commuter tax forever. "Once it starts, it will never go away," Mr. Giannetta said. "The city will be like a heroin addict and will never be able to get off it. They will never stop wanting the $4 million from nonresidents."
Staff writer MIKE IORFINO contributed to this report.
Contact the writer: jlockwood@timesshamrock.com