In 1936, a flood in Johnstown, Pennsylvania led to a temporary 10% tax on wine and liquor sales to fund recovery efforts. The tax remains today at 18%, generating $300 million annually for the state. Despite attempts to repeal or reduce it, none have passed. The flood led to national flood control legislation and Johnstown promoting itself as “Flood Free” after the issue was resolved. The city has a history of tragic floods, including in 1889 and 1977.
In March 1936, melting snow and incessant spring rains caused significant flooding in Johnstown, Pennsylvania, killing 25 people and causing more than $41 million in damage. State lawmakers acted quickly, passing a temporary 10 percent tax on all wine and liquor sold in Pennsylvania to help pay for the area’s recovery. Within six years, the city’s losses were covered, but the tax never went away. In fact, the 10 percent tax became a 15 percent tax in 1963, and was raised again in 1968 to 18 percent, where it remains today. Since 1936, this tax has netted about $15.4 billion dollars — nearly $300 million dollars annually — for Pennsylvania. More than a dozen laws to repeal or reduce the tax have been introduced since 1997, but none have passed.
A flood of national aid:
The 1936 Johnstown flood, often referred to as the St. Patrick’s Day Flood, was preceded by rains that began on March 9 and continued through March 22. The flood was so severe that President Franklin D. Roosevelt passed major national flood control legislation in 1936 and 1937.
In November 1943, Gilbert Van B. Wilkes of the US Army Corps of Engineers reported to the Johnstown bosses that the flooding problem had been resolved. Johnstown began promoting the city as “Flood Free”.
Johnstown’s history has been marked by a series of tragic floods. In addition to the 1936 flood, the city was affected by the Great Flood of 1889, which killed as many as 2,209 people. Another disastrous flood occurred in 1977, killing 84 people.
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