Falls Twp. To Study Impact Of Possible Earned Income Tax

The Falls Township Board of Supervisors voted Monday evening to hire a firm to study the impacts of an earned income tax (EIT).

The supervisors last had an EIT study completed in 2014 and want an update.

ESI Consult Solutions Inc. has been hired by the supervisors to conduct a two-phase evaluation. The total cost to taxpayers will be $20,000.

The firm has been tasked with studying a potential 1 percent EIT on people who work in Falls Township. The tax would put a 1 percent levy on wages for workers who earn $12,000 or more annually and live in the township, work in the township, or both.

Most of Falls Township’s neighboring communities have an EIT, and residents who work outside the township send that money to municipality in which they work.

A 2014 review by LevittownNow.com found EITs bring in tens of millions to municipalities and were widespread in Bucks County.

“Falls officials have not yet decided whether an EIT will be instituted. The ESI study is the first step in analyzing this possibility,” a statement from the township said.

The township presented information that an ESI Consult Solutions study performed for Bensalem Township before they instituted and EIT determined a 1 percent levy would raise more than $11 million in revenue for the township.

ESI Consult Solutions expects to have a report to Falls Township officials in the coming months.

In other business, the supervisors agreed to go with Travelers Insurance for a cyber liability insurance quote for $3 million in coverage.

The policy has a $26,495 premium cost.

Township Manager Matthew Takita said the municipality received six quotes for the insurance, and Travelers Insurance was the lowest.

“Cyber risk has increased tremendously,” Takita said.

While Falls Township has not suffered any major cyber security issues, the Pennsbury School District and Lower Makefield Township have faced issued this year.

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