Falls to Take Action Seeking EIT Paid to Philly
The fiscally responsible Falls Township Board of Supervisors is working to bring $1,180,000 back to township coffers.
That’s the amount of earned income tax that Falls Township estimates it is losing to the City of Philadelphia. Approximately 1,810 Falls residents work in Philadelphia and are therefore assessed the 3.448 percent Philadelphia wage tax. The Sterling Act, which was enacted in 1932, prevents municipalities from collecting the EIT from residents who work in Philadelphia.
The governing body is hopeful that that may change. The board on Monday unanimously approved a resolution to request an amendment to the Sterling Act, which, if enacted, would allow Falls to collect its 1 percent EIT from Falls residents who work in Philadelphia.
Recouping lost EIT monies will not happen “unless and until the legislature amends the Sterling Act,” township attorney Lauren Gallagher told the board.
With the exception of Philadelphia, Falls residents who work in other municipalities still pay their EIT to Falls Township. If the Sterling Act were to be amended, Falls residents would still pay the same in earned income taxes. However, instead of paying the full Philadelphia wage tax, a portion of their tax (up to 1 percent) would be paid to Falls Township.
The township enacted an EIT in January. Taxes are assessed on all income earned from working. Social security, unemployment compensation and pensions are not subject to an earned income tax.
Supervisor Erin Mullen noted that residents attended earlier meetings and expressed displeasure at the board’s inability to collect an earned income tax from those working in Philadelphia. Mullen said she hopes residents will be “satisfied” that Falls and other townships “are trying something” to resolve the problem.
In other business, the board granted preliminary and final land development approval to Trench Tech Shoring Solutions, Inc. to construct a 7,000-square-foot addition on an existing industrial building on a 13.73-acre parcel located at 1979 Bristol Road.
The company currently maintains trench boxes that are commonly seen along the highway. With the building addition, Trench Tech intends to expand into manufacturing, which will create four additional jobs, officials said.