Upper Darby Township Council voted to advertise a draft ordinance that would create a 1% earned income tax (EIT). According to township projections, by 2027 if nothing is done, the budget deficit would grow to over $16 million. According to the Suburban Realtors Alliance municipal database, more than 80% of municipalities in the region have an EIT. Gordon Mann, from the consulting firm Public Financial Management, gave a presentation on what the new tax will mean:

• The 3,000 Upper Darby residents working in the township will pay more.
• The 10,000 people who live in Upper Darby and work in a town without an EIT, such as Haverford Township, would pay the 1% tax.
• For the 9,100 people who live in Upper Darby and work in a municipality with a 1% EIT, their tax payments would revert to Upper Darby.
• Two groups won’t be impacted: Upper Darby residents who work in Philadelphia, and residents with no earned income, such as those who are retired or active military.
• Mann said more people in the township will not be impacted by the tax than are impacted.

Upper Darby has an information page relating to the EIT proposal. View the proposed EIT ordinance here.
Source: Daily Times; 8/13/2024