Falls Twp. Proposes First Tax Increase In 30 Years, Considers Adding Earned Income Tax

For the first time in 30 years, Falls Township is considering raising taxes by a small amount for 2023.

On Monday evening, the Falls Township Board of Supervisors approved the proposed budget that would increase the existing 7.22 millage rate to 8.97 mills. The increase would be solely for the fire protection tax that supports the township’s three volunteer fire companies – the Falls Township, Fairless Hills, and Levittown No. 1 fire companies.

The current fire protection tax rate is 1.75 mills and the proposed budget calls for it to rise to 3 mills. Township ordinance allows the tax to max out at 5 mills.

Township officials said they average homeowner in the township will pay about $90 more per year in taxes to support the fire companies.

Overall, the township is proposing a $73.2 million spending plan. The 2023 budget is a jump over 2022’s budget of $38.5 million, but it includes $28 million set aside for the renovation of the township municipal center off Lincoln Highway.

The township’s proposed budget, if approved, means property owners would pay $269.10 on the average assessment of $30,000 for the municipal tax bill. The township tax bill is the lowest of surrounding municipalities.

Unlike other communities, Falls Township residents are not charged for trash and leaf pickup due to a deal with Waste Management and its landfill in the township.

The township has boasted about not raising taxes and keeping them at rates from the early 1990s, but increasing needs and smaller donations to the volunteer fire companies have led to proposed tax hike.

The township has been dealing with rising pension costs totaling about $3.5 million, other increasing expenses, and an expected drop in landfill host fees to $10.3 million, Falls Township Finance Director Betsy Reukauf said.

The round-the-clock police department makes up 51.5 percent of the township budget.

In 2023, the township expects to get about $630,000 in local services tax money, $623,000 in cable TV franchise fees, $1 million in real estate transfer taxes, $1.8 million in permit fees, and $650,000 in pension system aid from the state.

The township is also funding $4.6 million for road improvements. The work will include paving, improving drainage, constructing new culverts, making repairs near waterways, and building a retaining wall.

In addition, the township is funding $50,000 to deal with trees that are damaged; $470,000 for vehicles, equipment, training, and supplies for the cops; $372,000 for new equipment for public works crews; and $140,000 for a new all-inclusive playground at the Pinewood Pool.

Resident Colin Henderson asked the supervisors about the $28 million estimated for the municipal building renovation.

The supervisors told him the $28 million is their estimate and they hope the project comes in under budget.

Additionally, the township is considering instituting a 1 percent earned income tax (EIT) for 2023.

The supervisors voted 3-2 to formally advertise the proposed EIT. Supervisors Erin Mullen and Brian Galloway voted no.

The new tax, which is paid by workers in nearly every other Bucks County community, could bring in $5.25 million in 2023.

The township expects to bring in about $7 million annually through the new tax in future years, Supervisors Chairman Jeff Dence said.

With the township budget’s reliance on landfill host fees, Dence said the EIT could reduce that reliance.

“This township has relied on a landfill as long as I’ve lived here and much longer than that,” Dence said. “There is an end in sight for the landfill.”

The township expects to get $10.3 million from the Waste Management landfill host fees in 2023.

Presently, township residents pay about $3.5 million per year to other municipalities where they work due to those towns’ EITs. If Falls Township approved an EIT, that money would return to the township, aside from those who work in Philadelphia.

Supervisors Vice Chairman Jeff Boraski said implementing an EIT would be a “a tough decision.”

“It’s the future of the township,” he said. “We’re losing $3.5 million.”

Supervisor John Palmer voted to advertise the EIT but stated he may not vote to institute the new tax. 

“I know a ton of people that don’t pay any right now,” he said. “We might have to go back to the budget and make some hard decisions.”

The budget and EIT will be voted on at the December 19 Falls Township Board of Supervisors meeting.

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