A description and analysis of two failed local finance reform efforts in Pennsylvania between 1987 and 1989--a blue ribbon tax reform commission and a state constitutional amendment--are presented in this report. Constraints imposed during the reform design stage and two political "tar pits"--household/business proportion of local taxes, and commuter taxes--interacted to forestall successful adoption. Factors that contributed to the defeat of the reform efforts include inadequate public education; fear of increased personal income taxes; lack of governor support; inaccurate and disorganized drafting; and the development of partisan political and business factions. Most significant was the inadequacy of a short-term state commission and a special legislative session for large-scale, structural tax reform. Issues that must be addressed before financial reform efforts are undertaken are household/business local tax allocation, interdistrict fiscal tensions, and public education. Two statistical tables are included. (7 references) (LMI)