The Borough Assembly will consider an ordinance tomorrow night again dealing with grocery taxes.
Borough Assemblyman Blaine Gilman introduced an ordinance that would allow the borough to collect sales tax on non prepared groceries year round.
Gilman: “Right now the current sales tax structure is kind of confusing for the borough on groceries. For the borough we charge a 3% sales tax and that for groceries only gets charged three months out of the year so that’s basically the summer. And another nine months out of the year there’s an exemption basically on groceries and what this ordinance does is asks to repeal that exemption. That will generate an additional revenue of about $3.3 million a year.”
The complicated issue has been circulating through the Borough and state courts since 2008 when residents attempted to cut grocery taxes during non-summer months. James Price spearheaded the initiative, which was approved, but effectively overruled by the Assembly.
The Supreme Court last year sided with Price on the issue. Price is now attempting to put the question to voters in October, but says Gilman’s ordinance, or a substitute introduced by Assemblyman Dale Bagley, would again nullify his proposition before voters get a chance to decide.
