Langhorne Borough is looking into adding an Earned Income Tax (EIT) in 2015.
The borough council Wednesday night approved advertising a potential 1 percent EIT. The measure was approved 5-2.
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During the public meeting, the council spoke of the proposed tax that could help fill probable holes that will arise with next year’s budget.
The proposed tax would be for employed residents and those who work in the borough. Residents who do not earn income, like the retired, would not have to pay. In Pennsylvania, 95 percent of townships in the state have an EIT, including Bristol Township, Middletown and Newtown. Some boroughs, including Bristol and Penndel, do not currently have an EIT.
Members of the council debated whether a .5 percent or 1 percent EIT might be a good idea for the borough. It was even suggested that a combination of an EIT and an increase in property taxes might also work.
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Council members who spoke in favor of the EIT said it could bring an additional $80,000 next year to the borough.
The borough needs the extra income to pay for several projects, a proposed expansion in police coverage and also to start saving for future capital projects, officials said.
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Council member John Scheetz was outspoken in favor of the 1 percent EIT and advertising that figure.
Council member Kari Thomas said she was for a .5 percent EIT and voted against advertising for 1 percent. She stated the advertisement should have been for .5 percent.
“I don’t want to raise it the full percent,” Thomas said.
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“Lets advertise it for 1 percent and debate about it later,” Scheetz said. He also said that just because the borough advertises a 1 percent EIT is being considered that doesn’t mean it has to be imposed.
Dave Kaiser, the council president, said he was not for a 1 percent EIT. In the end, he voted to advertise the 1 percent EIT and said the number could be brought down when decision time comes.
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Residents of the borough who already pay an EIT in the town they work would not have to pay more. Officials said the money would come to Langhorne instead of going to the town they are employed in.
Based on an income of $50,000, a .5 percent EIT would bring in $250 a year, per person and a 1 percent EIT would bring in $500 a year, per person.
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The issue will be brought up again at next month’s borough meeting.
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