Talks to tackle tax incentive

Roughly 20 firefighters may qualify for tax break

Township officials are discussing a possible incentive for local firefighters to get a break on their township taxes.

“It allows for the township to grant a credit to certain qualified volunteers who are actively involved in either a fire company or an ambulance company,” said Solicitor David Onorato.

“It sets out the definition of what that is, and how do you achieve being a qualified volunteer. You can’t just sign up and not participate, you have to do certain things,” he said.

Act 172 of 2016 allows local municipalities to grant tax discounts to emergency personnel, and over the past year Hatfield Township has passed their own local incen-

tive, while Lansdale and Souderton Boroughs and Franconia Township have also discussed doing so, but have not finalized theirs yet.

Based on early talks with the township’s fire company, about 20 volunteers would qualify for active status under the terms set out by the state law, according to Onorato and Finance Director Dave Brill. Using the maximum criteria allowed by the state, and assuming average wages of $74,000 and an average residential township real estate tax bill of $290, the incentive could provide a break of roughly $375 per volunteer on earned income taxes and

an additional $58 per volunteer on real estate taxes.

Multiplying those amounts by the number of volunteers would lead to a total outlay of roughly $7,500 in earned income tax discounts and $1,160 in real estate tax discounts, for a total cost to the township of roughly $8,660 if the incentive is passed at the maximum levels, according to Brill.

“By the time it’s adopted, and starts getting run by the fire company, it may be something you’re looking more toward 2019 for it to really kick in,” Onorato sad.

“It’s supposed to be a yearly program, so we may be looking to have this in place to get started for the 2019 year,” he said.

The firefighter incentive was discussed at the board’s Feb. 20 workshop, and could be brought back for further discussion after more consultation with the fire company, according to Brill and Onorato.

Several action items were discussed at the board’s Feb. 20 meeting and subsequently approved on Feb. 26, including permission for two upcoming events: a “Wish Them Well” walk on Sept. 23, and a Laurel House 5K “Dash Against Domestic Violence” on Oct. 21.

The board voted to adopt a township mission statement stating that staff and elected officials “shall provide innovative, safe, transparent, fiscally responsible services, and respond to the needs of all residents, visitors, and businesses of the township, in a timely,

respectful manner.” The statement was first proposed last summer, vetted by staff and the board in January and February, and approved Feb. 26.

Other approvals included the award of a bid for the township’s 2018 road milling and paving program, purchase of several new Public Works department vehicles, and an updated lease agreement for the cell tower behind the township administration building.