Earned Income Tax?

Maybe so in Newtown Township. “In this unstable economy, it’s going to concern people,” he said. “I just think there is a negative mindset that will make people apprehensive and vote it down.” Stop by Morrisville. We have a beautiful vista of a magnificent negative mindset.

Board mulls tax hike
Supervisors would use the extra funds to purchase open space.
By CHRISTIAN MENNO

An earned income tax increase could be on the way for Newtown Township.

A public hearing on the increase, which would be used to fund open space, will be on the board of supervisors’ July 23 agenda.

The board last week voted 3-2 to hold the public hearing, which is required to get a tax referendum on the ballot in November. Supervisors Phillip Calabro and Jerry Schenkman voted against the move.

If approved at the polls, the tax hike wouldn’t take effect until an ordinance is enacted. And that, the board members said, wouldn’t happen until land is purchased. The increased part of the tax would remain in effect only until the necessary funds are raised to pay for the purchase, officials said.

“The solicitor will present the board with four different tax percentages, up to a .25 percent increase,” Supervisor Michael Gallagher said. “It will probably be closer to .1 percent, which would generate about $1.1 million.”

Working residents and non-residents employed in the township already pay a 1 percent EIT, split between the Council Rock School District and the township. If a .1 percent increase is approved by voters, the school district would continue to receive its .5 percent, while the township’s portion would increase to .6 percent.

About 41 percent of the increased revenue would come from non-residents, said Gallagher, citing the township’s most recent budget report. According to the census, 18,206 people live in the township. Data wasn’t available on how many people work in the township.

With the average income of township residents at approximately $34,335, according to the 2000 census, a .1 percent EIT hike would cost the average resident $34.34 per year, boosting the total paid to the township to $206.01. That would make the total EIT $377.69 for the average resident.

Proponents of the EIT increase say it’s better than a property tax hike.

Calabro said his problem is not with the tax hike, but the timing.

“In this unstable economy, it’s going to concern people,” he said. “I just think there is a negative mindset that will make people apprehensive and vote it down.”

That would set the open space progress back, perhaps another two years, he said, noting a similar open space referendum was defeated eight years ago during a decidedly positive economic period.

Open space supporter and resident Sue Beasley agreed.

“Let’s just get over the economic crisis and then go forward from there,” she said. “I would just hate to see another referendum defeated. It would send a terrible message that Newtown residents don’t care about this issue.”

Supervisor Robert Ciervo said the timing is right.

“I think this is the exact time with real estate being at its lowest level and only about to go up,” he said. “We know the parcels available and which ones we want to be protected. We can’t wait on this, because two years from now, they most likely won’t be available.”

Board Chairman Robert Jirele cited the Melsky tract as an example of a piece of property that could have been preserved as open space but has since been sold and developed.

If the tax referendum fails in November, Jirele said that alternative revenue streams and potential purchases would be cautiously explored to preserve open space.

Jeffrey Marshall, a resident and vice president of Resource Protection of the Heritage Conservancy group, said hesitation would prove costly.

“We don’t know if the economy is going to be better in six months or a year,” he said. “It’s better to be ahead of the curve instead of behind. Because once it’s gone, it’s gone.”