Tax is a new topping on delivered pizza in Pennsylvania

HARRISBURG -- What's a state lawmaker to do when faced with an all-nighter of budget proposals and negotiations? Order out for pizza, of course. Pizza delivery cars circled past the entrance to the state capitol's rotunda late Saturday evening, passing off pizzas to senators, representatives and their legislative staffs facing an all-night budget session Saturday. What was different this year was that legislators would soon be voting to tax the pizza delivery they were enjoying, as part of a new tax plan to raise $2.9 billion in additional revenues in the 1991-92 fiscal year. The controversial measures included a one percent increase in the personal income tax to 3.1 percent, and an 18 cent increase in the cigarette tax. In addition, Pennsylvania's 6 percent sales tax on "nonessentials" now applies to a number of new items, including premium cable television channels, long distance phone calls, household paper products, magazines and delivered baked goods -- including pizza. "We're going to be rivaling Tax-achusetts here," local Domino's manager Dave McGarvey complained this week. Although many area pizza places must already charge sales tax because they are eat-in restaurants, Domino's Pizza -- which can classify itself as a bakery since it lacks an eat-in area -- must now add sales tax to its prices. Off-campus subscribers to Wade CableVision may also feel the tax pinch if they choose to order channels beyond the basic cable subscription. Assistant General Manager Janine Stewart said the tax would be even harder on low-income families in the area. "We do feel it's not fair to our subscribers who depend on cable as their main source of entertainment," Stewart said. But according to Purchasing Department Director Robert Michel, the University itself should be largely unaffected since it is classified as a non-profit institution, and therefore exempt from sales tax in most cases. The University may even become a tax haven for students who enjoy making long distance calls. Since the University is generally not charged sales tax, on-campus users of the University's Penntrex phone system may find that their long distance service is sales tax free.

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