If last year’s budget process was any indication, Hatboro will once again be considering a budget with a tax boost, according to Council President John Zygmont.
Just how much is yet to be determined.
“We’re going to be seeing some type of a tax increase this year,” Zygmont said during Monday night’s council meeting. “It’s reality.”
To help minimize that reality, Zygmont suggested the borough introduce an ordinance to create a $52 Local Services Tax. The council took no action Monday, but Zygmont said the governing body would need to make a decision at its Oct. 22 meeting so it could be put in place for January, when the tax would begin to be deducted. The tax would be deducted throughout the course of the year at $1 per week.
The tax, if enacted, would be levied against the estimated 2,150 who work in Hatboro and earn more than $12,000 per year. It would replace the $10 per year Occupational Privilege Tax.
“I would ask council to think about this as a way of getting $93,000 from outside the borough as opposed to increasing real estate taxes,” Zygmont said, referring to the estimated amount that would be paid by non-residents.
Based on 2012 first quarter figures provided by Berkheimer Tax Administrator, the higher wage tax would generate $111,782 in total. Of that amount, $18,785 would be paid by the 361 borough residents who earn more than $12,000 per year for work in Hatboro. Workers who live outside of Hatboro would pay the remaining $92,997.
In Montgomery County, 40 of 60 municipalities – including Horsham – have enacted a $52-per-year Local Services Tax. In Bucks County, 33 of 57 communities have put the $52 tax in place.