Earned Income Tax Vote Set For Tuesday In Yardley

YARDLEY BOROUGH, PA — The Yardley Borough Council is expected to vote at its meeting on Tuesday night for an Earned Income Tax.

The council will hold the meeting at 7:30 p.m. Tuesday at Borough Hall at 56 South Main Street.

Borough Councilwoman Martha Howlett told Patch that "while it pains us to consider any tax increase during an affordability crisis, the Borough’s financial reality requires action."

"Our expenses rise every year, while property tax revenue remains essentially flat due to the lack of countywide reassessment," Howlett said.

The councilwoman said that Yardley is already at the 30-mill cap for general purpose property taxes, which fund essential services such as police protection and stormwater management.

Howlett said that revenue from an earned income tax adjusts with inflation, allowing the borough to address current budget deficits and operate with long term stability.

She said there were six council discussions beginning in March, and a door-to-door community outreach to discuss the EIT tax.

"Once residents understood the Borough’s financial need, most recognized why the EIT is necessary," she said.

Some residents wondered why an EIT isn't on the upcoming ballot for the November general election.

Howlett said that regarding a ballot question, the Local Tax Enabling Act requires that an earned income tax be adopted by a vote of Borough Council, not by referendum.

Residents can click here for a one-page summary to understand what the tax entails.

Longtime resident and community advocate Dawn Perlmutter said that residents should attend the public hearing and meeting since it's the last chance to "show up, stand up, and speak out against this tax hike."

"Demand fiscal responsibility, not new taxes," Perlmutter said.

Perlmutter said the EIT is bad for Yardley Borough for the following reasons:

1. An unfair burden on hardworking residents — A 1 percent income tax penalizes residents the more they work
2. Bad for small businesses and local jobs — The EIT tax targets the net profits of unincorporated businesses and hits non-residents. It makes Yardley a less attractive place to work, shop, or open a business, hurting the local economy.
3. Based on flawed and misleading financial projections — The borough claims this tax will bring in $2 million.
4. Lack of demonstrated fiscal discipline — There is no evidence that the council exhausted all cost-cutting measures or thoroughly reviewed the existing budget.
5. School District complications — Under PA Act 511, if the Pennsbury School District enacts its statutory share of the EIT, half of the 1 percent new tax rate will automatically go to the school district rather than Yardley Borough.
6. Keep Taxes Local and Private — Yardley Borough already has an elected tax collector. Passing an EIT means hiring an outside, private corporation to handle the money of residents, introducing extra fees and allowing a third party to monitor private tax records.