Opposition grows to warehousing tax amid budget stalemate

VIDEO: PA budget battle solution...

HARRISBURG, Pa. - An evolving proposal to fill Pennsylvania state government's $2.2 billion projected deficit is hitting opposition over extending the state sales tax to business-to-business storage and warehousing.

Lawmakers said Tuesday that a growing number of businesses and labor unions are asking them to oppose the tax. It's a relatively small piece of an overall revenue package negotiated behind closed doors by Democratic Gov. Tom Wolf's office and leaders of the Republican-controlled Legislature.

No votes on it are scheduled.

Lawmakers overwhelmingly approved a $32 billion budget bill June 30, about a 3 percent increase, but haven't agreed on how to fully fund it.

The revenue package otherwise leans heavily on borrowing, one-time fund transfers and authorizing 10 more casinos around Pennsylvania. Opposition by House GOP leaders stalled a tax on Marcellus Shale natural gas production.

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