Middle Smithfield considers new $52 tax on those employed in township
Middle Smithfield Township will have a public hearing at 7 p.m. Nov. 16 regarding a proposed ordinance for a Local Services Tax (LST).
If the supervisors approve it, this tax would replace the Occupational Privilege Tax (OPT) currently in effect in the township.
“There are minor technical differences (e.g., how it is collected), but the general intent remains the same,” emailed Chairperson of the Middle Smithfield Township Board of Supervisors Annette Atkinson. “In 2013, the state of Pennsylvania amended The Local Tax Enabling Act of 1965, and many municipalities have done what we are proposing on 11/16.”
The LST will charge adult residents and nonresidents employed within Middle Smithfield Township $52 annually, up from $10 under the OPT, with the exceptions of permanently disabled veterans, those in the army reserves called to active duty in the taxable year, and those who make less than $12,000 a year; as well as those who are unemployed, such as retirees, according to a draft of the ordinance and Atkinson.
“The ceiling for the OPT/LST is $52, and most municipalities have already updated and enacted the $52 per year LST,” emailed Atkinson. “The local school district has always received $5 of the Occupational Privilege Tax, and will receive $5 of the Local Services Tax.”
According to a legal notice for the hearing, the purpose of this tax is to provide "revenue for emergency services, road maintenance and construction and reductions and relief for property taxes."
“The intent of the Middle Smithfield Township Supervisors is to provide much needed assistance for our all-volunteer fire companies, as well as the ambulance companies via the Local Services Tax,” emailed Atkinson, adding that the board will also eliminate the cable franchise fee. “All the funds the township received from the cable franchise fee, collected from cable television subscribers in the township, was disbursed directly to emergency services.”
In terms of how the township will determine if an employed adult is engaged in an occupation within the township, Atkinson wrote that the process for the LST is no different from the OPT.
“Since 2012, municipal taxes and fees have remained the same, even while township amenities and services continue to grow and the township provides more,” emailed Atkinson, adding that municipal sewer rates have been the same since 2014. “Something that has NOT remained the same is the dilemma of our first responders – that continues to grow. Who rescues the rescuers?”
Atkinson also said that while volunteers make up 65% of U.S. firefighters, participation is down 25% between 1984 and 2020, while fire departments respond to more than triple the calls.
“It becomes more and more apparent that we can wait no longer to assist those whose calling is to assist residents,” emailed Atkinson, adding that the township is considering all options to fund first responders.
The township is also considering a fire/EMS tax in 2024.
Max Auguliaro is the public safety and government watchdog reporter at the Pocono Record. Reach him at MAugugliaro@gannett.com.
This article originally appeared on Pocono Record: Middle Smithfield Township: Public hearing on tax proposal is Nov. 16
