Tullytown Borough has joined the list of the majority of Bucks County municipalities that have implemented an Earned Income Tax (EIT).
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The borough council gave its nod to this new tax late last year, with the tax coming into effect starting on January 1.
The newly approved EIT is set at a rate of 1 percent and impacts both residents of Tullytown Borough and nonresidents who are employed within the borough.
The tax applies to earned income and net profits, but it exempts individuals earning $12,000 or less annually.
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Borough Solicitor Russ Sacco said that the tax would not impact social security or investment income.
Sacco highlighted at a meeting late last year that many Tullytown residents are already familiar with the tax, as they have been paying similar taxes to other municipalities within Bucks County and other nearby counties.
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Addressing potential concerns, Sacco also explained the tax implications for Tullytown residents working in New Jersey. He noted that while employers are not mandated to deduct the earned income tax, residents are still liable to pay it concurrently with their income tax filings.
In cases where employers do not withhold the tax, Sacco recommended residents make estimated payments.
Keystone Collections Group, which serves as the local earned income tax administrator for Tullytown Borough, will oversee the implementation and collection of the new tax.
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With the addition of the EIT, Tullytown Borough aligns with 55 other municipalities and school districts in Bucks County that have already imposed a local earned income tax.
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