Per capita tax may be dropped

ROYERSFORD >> Borough residents may soon have one less tax to pay each year.

On April 13, the borough council will hold a public hearing and likely vote on a proposal to do away with the per capita tax.

The $10 tax brought in less than $10,000 per year, even though more than $22,000 in tax bills were issued each year, according to Tax Collector Amy Billetta.

“We had lots of return mail and unpaid collections and we were incurring postal costs,” said Billetta.”It was more expensive and time-consuming than it was worth.”

The per capita tax is fixed and for any person with an income exceeding $12,000 and if married, a joint income over $24,000. Those who make less could file for an exoneration of that tax, which is “just another piece of paperwork,” Billetta said.

The per capita tax used to be collected by the SpringFord Area School District, along with its real estate taxes, but it passed the responsibility back to the municipalities a few years ago, according to Royersford Borough Council President Anil Dham.

“We are going to eliminate collection of this tax this calendar year going forward pending a vote at one of the April meetings,” Dham wrote in an email response to a MediaNews Group query.

“After discussion with our tax collector, and much confusion by residents over the tax, we found our improved financial position makes it something we can eliminate and give a break to our residents,” he wrote. Dham said the borough’s financial situation is due to higher earned income tax revenues, grants received, more businesses coming to downtown, “fiscal savvy by our borough manager” and “wise decisions by this current borough council,” he said.

The April 13 borough council meeting starts at 7:15 p.m.