Middle Smithfield Twp. supervisors adopt Local Services Tax after public hearing

Middle Smithfield Township has adopted the Local Services Tax (LST) ordinance after holding a public hearing during the board of supervisors meeting on Nov. 16.

During the 30-minute public hearing, the supervisors, along with Solicitor Patrick Armstrong, discussed what the local ordinance was, as well as answered questions about the ordinance from township residents.

The LST will replace the Occupational Privilege Tax (OPT) and tax adults who work within the township $52 annually, up from $10 annually under the OPT, to provide “revenue for emergency services, road maintenance and construction and reductions and relief for property taxes.”

More: Middle Smithfield considers new $52 tax on those employed in township

Armstrong noted that at least 25% of the revenue generated from this tax is required to go to emergency services that service the township.

Disabled veterans, those called to active duty from the army reserves, anyone who makes less than $12,000 a year, and those not employed in the township are exempt from paying the tax.

After attendees questioned which specific agencies would receive money generated by the tax, it was clarified by Armstrong that it is not determined yet who will receive money generated from the tax, and how much they will get, but that the hearing was just to establish the tax.

“This ordinance does not spell out where the money’s going, this is simply enacting the tax,” said Armstrong. “There will come a time when this board or a future board will determine where the tax goes on any given year, but this is something to implement the tax.”

“I apologize if I’m out of order, I’m just trying to protect the guys who are protecting us, and every additional service that we give money to lessens the money that are going to the services that actually respond first to our township,” said attendee Scott Tretheway, after asking a series of questions about where the money from the tax is going.

It was also discussed and clarified why the township was doing away with the cable franchise fee, with the main reason being that it was not fair.

“The cable franchise fee was enacted in 2008 and has been going down since then, and if you look at who has cable now, it skews elderly,” said Board of Supervisors Chairperson Annette Atkinson. “That was created as a vehicle to generate income to pass through to fire and ambulance, but now, why should only people who watch cable support fire and ambulance?”

“I don’t understand why you would want to penalize the people that reside in Middle Smithfield Township and are working,” said attendee Amy Holder over Zoom. “You have a population of people that aren't working that aren’t necessarily retirees, yet the people that are working and spending money in the township are now going to be forced to pay another tax. Why not just roll it into the property tax so that it's distributed fairly amongst all property owners?”

The meeting audio was muted to those attending the meeting via Zoom for a chunk of the hearing, though it did not seem to be intentional.

After Holder's question, it was clarified by Armstrong that the LST only pertains to those working within the township, not those who own property within the township.

Atkinson later clarified that they are also considering a fire and EMS tax on property owners, saying in part “…That is also something that is going to be done because there won’t be enough generated by this Local Services Tax to appropriately support the fire and EMS.”

Holder also asked why the board was not considering a tourism tax, to which Supervisor Michael Dwyer said, “That’s beyond municipal level, we can’t do that.”

“There’s an entertainment tax, I think that might be what you’re referring, if you look that up, you’ll see all the opposition it gets from the Pocono Mountains Visitors Bureau, the Chamber, the tourism industry, it’s kind of hard to pass,” Atkinson added. “Now, that's not saying that that idea is invalid, it’s very valid, and this board has already considered and spoken with local business owners to try and get them to collect at their front desk of a hotel, or anyone who owns golf, and that’s something separately that we’re working on, but tonight, this is where we are for now.”

After closing the public hearing with a unanimous vote, the supervisors voted unanimously to adopt the LST ordinance, which will go into effect on Jan. 1, 2024.

Max Augugliaro 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: $52 Local Services Tax adopted in Middle Smithfield Township