ESI principal Peter Angelides: “Falls Township, Pa. could recapture $2M with an EIT”
Angelides said that an EIT could potentially “recapture” $2 million for Falls Township.
An excerpt from the article:
“Almost half of Falls residents who work pay an earned income tax to another municipality, an economic consultant said Monday night at the township supervisors’ meeting.
“Of the 48 percent who pay an EIT, 9 percent work in Philadelphia and pay the annual tax to the city, said Peter A. Angelides of Econsult Solutions. By law, Falls ‘cannot recapture’ the tax township residents pay to Philadelphia if they work there, he said.”
Like many jurisdictions in Lower Bucks County, Eastern Delaware County and Southern Montgomery County, Falls Township currently does not collect an EIT. Most other jurisdictions in Southeastern Pennsylvania, and throughout the commonwealth, for that matter, do collect an EIT.
In recent years, local jurisdictions have added the EIT to their tax system. Most recently, Middletown Township, Pa., directly to the west of Falls Township, adopted an EIT for the 2014 calendar year.
Falls Township hired ESI to estimate the number of Falls Township residents who pay an EIT to other jurisdictions and to estimate the amount of EIT they pay to other jurisdictions.
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Tags: impact, municipalities, Pennsylvania, public policy, report, taxation policy