Earned Income Tax Mulled In Lower Makefield

LOWER MAKEFIELD TOWNSHIP, PA — The township is considering an Earned Income Tax to help offset a municipal budget shortfall.

Township officials said they are addressing a "longstanding structural deficit" in its General Fund, which is the township's primary operating fund.

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Implementing a Local Earned Income Tax coupled with a contemplated 5-mill reduction in the general-purpose property tax rate is one option the Lower Makefield Township Supervisors are considering.

Nearby Yardley Borough approved an EIT earlier this month to help offset municipal expenses.

Yardley joined 51 other municipalities in Bucks County, and over 90 percent of municipalities statewide, that have an Earned Income Tax.

The Local Tax Enabling Act requires that an earned income tax be adopted by a vote of the municipal government and not by referendum.

The other options township officials are mulling are:

• Property Tax Authority — Requesting the Bucks County Court of Common Pleas to permit a general-purpose property tax rate increase up to 19 mills, consistent with the Second Class Township Code. The Township pursued this approach from at least 1986 through 2004.
• First Class Township — Transitioning to First Class Township classification, which would require voter approval. The township has posted fact sheets online to help residents understand each option and its potential implications.