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Council keeps borough amusement tax after heated debate over refunds to excursion railway
Summary
After hours of testimony and a divided floor, New Freedom Borough Council voted to retain its amusement tax and to place a fuller ordinance review on next month's agenda. The debate centered on a refund request from Northern Central Railway, disputed claims about infrastructure costs, and constitutional concerns about selective refunds.
New Freedom Borough Council voted this month to keep its amusement tax in place and to direct staff and the solicitor to prepare a formal ordinance review for next month.
The action followed a lengthy public-and-council debate after Northern Central Railway (NCR) asked the borough to refund a portion of the amusement-tax proceeds collected in 2025. Jody Anderson Lighty, speaking for NCR, distributed event schedules for the America's 250th weekend and asked the council to "give back all of the amusement tax that was collected in 2025," saying the organization operates as a nonprofit, draws many out-of-state visitors and supports local businesses.
Council members split over whether refunds or abolition were appropriate. Council member Erica argued against repeal in a prepared statement, saying, "Eliminating this tax does not remove the associated cost. It shifts them onto residents," and pointing to the borough's prior tax increases and debt profile. She urged retention of a dedicated revenue stream or creation of a ring-fenced fund that would direct amusement-tax dollars to infrastructure and public-safety costs related to visitors.
Supporters of change said data collected in recent reviews did not substantiate the tax's original rationale and raised fairness concerns about how the ordinance is applied to various nonprofits and events. Speakers also questioned whether the borough had consistently enforced the ordinance (for example, whether small community events, carnival operators, churches or seasonal vendors were being treated the same way).
The solicitor and staff were asked to research legal constraints on refunds and selective return of public funds; council members specifically requested written guidance about uniformity requirements under state constitutional provisions and the local tax enabling act. The motion to begin steps to abolish the tax was amended on the floor to retain the tax as-is and to move a comprehensive ordinance review to the next council meeting; the amendment carried and the abolition effort did not proceed this month.
Council agreed that the refund request from NCR and any proposal to alter the ordinance will return on next month's agenda so members, staff and affected organizations can provide additional financial reports and the solicitor can supply a legal memorandum. No refund was approved at this meeting.
