FOR IMMEDIATE RELEASE

CONTACT: ERIN BOYLAN

PHONE: (717) 787-5166

eboylan@pasenate.com

SENATOR MUSTO CO-SPONSORING FLOOD RELIEF LEGISLATION

HARRISBURG, October 8, 2004 – State Sen. Ray Musto is working to provide state-sponsored financial aid for Pennsylvanians recovering after recent flooding.

Musto (D-Luzerne/Carbon/Monroe) will co-sponsor a package of flood relief legislation to help businesses and individuals recoup their losses in the aftermath of Tropical Storm Ivan.

“Flood victims deserve assistance from both the federal and state government as they go through the rebuilding process,” Musto said. “These bills will ensure that we in Pennsylvania are doing our share to help families, workers and business owners to get back to their normal lives.”

The flood relief package would create a grant program to assist citizens and small business owners who suffered personal property damage due to flooding. The legislation also includes a provision that would authorize the state to match Federal Emergency Management Agency (FEMA) funds appropriated to Pennsylvania municipalities for debris cleanup and hazard mitigation.

In addition, the legislation would allow local taxing authorities to temporarily abate local real estate taxes for flood victims. The Commonwealth would reimburse tax authorities for the uncollected revenues.

“To fund these flood relief programs, we would tap into reserves or savings from Pennsylvania’s General Fund, while also creating a short-term ‘Flood Relief Tax’ on smokeless tobacco and other tobacco products not currently charged under cigarette sales taxes,” Musto said. “All revenues generated by the ‘Flood Relief Tax’ would go directly into a Flood Relief Fund, and the money would be used only for victims of the September 2001 floods.”

Musto noted that the “Flood Relief Tax” would be repealed within two years of its enactment.

CONTACT: ERIN BOYLAN

PHONE: (717) 787-7105 PHONE: (717) 787-5166