How can the Borough tax rainwater?
The Borough cannot tax rainwater. The Borough can create a Storm Sewer Authority and charge user fees, similar to a sanitary sewer system. With a Sanitary Sewer Authority, user fees are charged to property owners based on the amount of water consumed. Funds received through the fee, can only be used within the operation of the sanitary sewer system. The same would be true for a Storm Water Authority. A Storm Sewer Authority would charge a user fee generally on the amount of impervious area of a property since the impervious area is what generates storm water flow that the municipality needs to manage. Unlike a tax, user fees can be assessed to tax-exempt properties. As an example, a church with a large parking lot would pay a high user fee based on the impervious area because they generate a need for storm sewers due to storm water runoff. Presently, general tax dollars are used for storm sewer improvements and maintenance. Churches, as well as other non-profit entities that generate storm water runoff, do not contribute monetarily for the storm sewer improvements. If a Storm Sewer Authority were to be created, funds received through user fees would be restricted to storm sewer improvements and maintenance. Since Penn State owns a significant portion of the storm water system in State College, it is unclear as to how this fee might apply to the University.

Show All Answers

1. What is a mill?
2. Why can’t the Borough borrow money from the Parking Fund for the General Fund?
3. Why is the budgetary problem with revenue and not expenditures?
4. Is the Borough running out of money?
5. What is the difference between what Penn State University would pay in real estate taxes versus what is received in impact fees?
6. How often does the Borough replace computer equipment and vehicles?
7. Why don’t the local municipalities consolidate?
8. Does the County or School District provide any financial contributions to the Centre Region Council of Governments (COG)?
9. Has there been any movement of Penn State University to the south of College Avenue and do these properties pay Real Estate Taxes?
10. Is there a forecast for Earned Income and Net Profits Tax related to new development within the Borough?
11. When was the Business Privilege Tax (BPT) eliminated?
12. How can the Borough tax rainwater?