The Middletown Township Board of Supervisors plan to reduce the controversial 1 percent earned income tax (EIT) to .5 percent later this month.
The 2 mill reduction in property taxes, which comes to about $58 a household, that was originally approved will be reinstated along with the reduced EIT.
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Supervisors Pat Mallon, George Leonhauser and Drew Kreiling voted for the reduction. Supervisors Tom Gallagher and Robert McMonagle voted no. Gallagher told those attending the meeting he was not against the reduction, but against the entire EIT.
Between $1 and $3 million will have to be taken from the town’s $39-million investment fund to fill the gap. Officials have said the in the past the money is not in place to act as a “rainy day” fund.
Township Solicitor Joseph Pizzo told LevittownNow.com the measure would likely be voted on at the January 20 meeting. The time was needed so the town could post required advertising for the change.
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Despite the move from the supervisors to reduce the EIT, which only taxes those who make more than $12,000 a year, many residents came to the meeting to speak out about the tax.
Mallon assured residents Neshaminy School Board members have told him they would not make an effort to take a portion of the EIT, as he claimed they are allowed too. At least two school board members have spoken out and said state law bans a district from taking EIT revenues if the rate is set at 0.5 percent or below.
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Many residents who spoke during a lengthy public comment session called for the township of 45,000 to cut spending in its budget. Langhorne section resident Larry Pastor was vocal about the spending practices of the township.
Citizen group Middletown Township Taxpayers United (MTTU) has rallied in recent weeks against the proposed EIT and also against newly-elected board member William Oettinger and incumbent Leonhauser, who both campaigned on seven years of no tax increases. Residents on both sides of political spectrum have said they felt mislead by the campaign the candidates waged.
Pastor presented a copy of a letter sent to residents by Mallon just before the election. The letter was in supported the Republican candidates. Pastor said the letter noted Oettinger and Leonhauser’s service to residents and mentioned the lack of tax increases. Leonhauser stated at the meeting he never promised anyone the there would be no tax increases and Oettinger did not return LevittownNow.com’s request for comment.
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Middletown officials said they can reopen the 2014 budget, which was approved in late December, in the coming weeks. Residents plan to lobby officials to reopen the budget.
Here is the statement MTTU put out after Monday’s meeting:
Tonight the MT BoS agreed to reduce their 1% EIT down to .5%. This would not have happened if not for the information provided to the BoS courtesy of members of MTTU, who explained repeatedly that Neshaminy would not take 1/2 of the 1% EIT, and could not take any portion of a .5% EIT. The MT solicitor, Mr. Pizzo, didn’t originally agree with our information, but tonight’s move proved we were correct.
But don’t just sit back and accept this .5% EIT because THIS FIGHT ISN’T OVER YET!
Even though the township’s fiscal year does begin in January (correcting previous info we reported here), the issuance of county/township tax bills doesn’t occur until March 1st, so there is still time to change this.
Tonight we spoke out against the unnecessary spending in our township. We have been in the midst of a financial crisis for several years, yet our township has added several new, high level jobs including an assistant manager, and an engineer (and an assistant); one director has been rewarded with a 70% salary increase over the course of the last 5 years.
Even our Township Manager, Stephanie Teoli Kuhls, who currently makes $152,955, is scheduled to get a $4,500 raise in 2014.
Does this sound like the responsible management of a township in financial trouble?
Come to next Monday’s (January 6th) Taxpayer Rally at 7pm outside the Municipal building, then walk in with us for the 7:30pm township meeting where we will demand that the BoS reopen the 2014 budget and reconsider options that don’t push a burden onto the working class residents of our community.
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