New Freedom Council votes to return 30% of amusement-tax receipts to Northern Central Railway

New Freedom Borough Council voted to return 30% of the amusement-tax receipts collected from the Northern Central Railway (NCR) for the year referenced by council, while leaving the borough's amusement tax ordinance at its current 5% rate. The council discussed the solicitor's review of the ordinance and public testimony both for and against the refund.

The vote follows hours of public comment and council discussion about the tax's purpose, history and fiscal impact. The solicitor told the council the borough's amusement-tax ordinance complies with Pennsylvania constitutional uniformity principles; council members and residents debated whether returning funds to NCR would be an appropriate use of borough funds.

Council members, borough staff and representatives of NCR said the tax was established in 2012'13 to offset stormwater, parking and emergency-service costs tied to the train-related influx of visitors. Council discussion referenced an amount collected for the referenced period of $28,343.21. A representative of Northern Central Railway, Bob (Representative, Northern Central Railway), said, “The money we received back in the past, we've used to run reduced tickets certain events ... This year, we're planning on having $10 [tickets] which allows a lot of the people in the town that cannot afford our regular ticket.”

Opponents in the audience argued borough taxpayers should retain the money for local infrastructure. One resident said, “I think freedom should keep their 28,000 and we decide how that money is gonna be spent on the infrastructure ... instead of giving it back to spend on tickets for people that don't live here.” Council members pressed finance and budget implications: returning money to NCR would be paid from the borough general fund and therefore reduce the amount available in the annual budget unless otherwise replaced.

Procedurally, a motion to return all collected tax to NCR failed for lack of a second. A later motion to reduce the ordinance to 2.5% likewise received no second. The final successful motion rescinded earlier language and proposed returning 30% of the referenced tax receipts; council then voted to approve returning 30% and to retain the 5% amusement tax going forward.

The solicitor had previously reviewed state rulings on similar taxes and told council members that, in his view, the borough's ordinance is legally defensible under the Pennsylvania Constitution's uniformity clause. The council did not adopt any ordinance change at the meeting; council members said an ordinance change (if pursued) would require advertisement and a future hearing.

The decision resolves a recurring annual request from NCR for borough support via refunds or allocations and leaves the borough's formal amusement-tax rate intact. Council members said the decision aims to balance support for a local business that draws visitors with the borough's need to fund street, parking and emergency services.

Council next steps: record the refund in the borough financial accounts and reflect the one-time return in budget planning; any future ordinance changes would require formal advertisement and consideration at a future meeting.