PA sees population loss in 2022
New Census Bureau estimates show Pennsylvania continues to be a state that people are leaving. Pennsylvania lost 40,000 residents in 2022 — a 0.3% decrease in population over 2021. As of July 1, 2022, Pennsylvania had about 12.972 million people living in it, ranking as the fifth-largest state in terms of population, according to the Census Bureau. The Census Bureau reports that 18 states saw a population loss in 2022, with Pennsylvania seeing the fourth-largest drop among all states, behind only New York, California and Illinois. Read more here.
Source: LevittownNow; 12/28/2022

State tax collections end 2022 on a high note
Pennsylvania closed out its tax collections for 2022 taking in a total of $19.7 billion through the end of December. The haul was $503.1 million, or 2.6%, ahead of projections, according to the Wolf administration. Some year-to-date collections were higher than anticipated, including sales tax, personal income tax and corporate tax. Inheritance and realty transfer taxes came in below expectations, with the realty transfer tax seeing a year-to-date total of $351.9 million, which was $26.7 million, or 7.1%, less than anticipated. Read more here.
Source: Penn Capital-Star; 1/4/2023

PAR campaign school is open to all
Realtors and other Pennsylvania residents who are considering a run for local elected office or helping to run a campaign can learn the key elements to winning an election during the Pennsylvania Association of Realtors’ (PAR) five-session campaign school starting Wednesday, Jan. 18. The 60-minute sessions will cover fundraising, grassroots, communications, digital strategy and more. Online registration is open and free to Pennsylvania Realtors and residents. The registration deadline for the first session is Monday, Jan. 16. Register and learn more at the PAR website.

PA enacted 166 new laws in 2022
Pennsylvania enacted 166 laws in 2022 — the most in six years. The legislation that passed through Harrisburg’s law-making machine varied across policy areas. Here are a few highlights:

• Property tax help: Act 54 included a huge one-time boost for Pennsylvania residents struggling with property taxes. Budget-makers set up an infusion of $140 million using COVID-19 relief money to boost the Property Tax/Rent Rebate Program. It means residents approved for a rebate on property taxes or rent paid in 2021 will get an additional one-time bonus rebate equal to 70% of their original rebate amount.
• Corporate tax rates: Act 53 dropped Pennsylvania’s corporate net income take rate to 8.99% and will lower it gradually each year until it reaches 4.99% in 2031. Lawmakers and Gov. Wolf agreed that the high tax rate was discouraging businesses in the state. The rate had been among the highest in the nation at 9.99%.
• 1031 exchanges: Act 53 also included recognition of 1031 exchanges in Pennsylvania starting in 2023. Learn more here.

Source: Daily Times; 1/4/2023

Bucks commissioners approve 2023 budget with taxes steady
The Bucks County commissioners approved the county’s $458 million operating budget for 2023. The budget reduced expenditures by 3.6% and was balanced with no new or increased taxes. It marks the third year in a row without a tax increase for the current administration of Commissioners Bob Harvie, Diane Ellis-Marseglia and Gene DiGirolamo. Click here to view the county's final 2023 budget.
Source: Bucks County; 12/22/2022

New income tax plus a property tax hike in Falls
Falls Township supervisors enacted an earned income tax (EIT) for 2023 and also voted to raise the existing township property tax from 7.22 mills to 8.97 mills to provide additional funding for the township's three fire companies. The property tax increase is the first tax increase in 30 years. By a 4-1 vote, the board voted in favor of the earned income tax to reduce the township's reliance on landfill host fees from Waste Management — now amounting to about $1 million a month — as the landfill sites fill up over the next decade and to avoid raising real estate taxes on seniors on fixed incomes. It is anticipated that Falls would gain $7.2 million from a 1% EIT levy. Falls residents who pay an EIT to another municipality where they work would see their payment revert to Falls, except for residents who work in Philadelphia, who would continue to pay their EIT to the city under provisions in state law. The EIT will not impact nonworking seniors, those who are unemployed or workers who earn less than $8,000 a year.
Source: Bucks County Courier Times; 12/27/2022

Newtown Township approves tax increase
Newtown Township supervisors voted 4-1 to approve a resolution to establish a higher 2023 township tax rate. The township’s $11.3 million 2023 budget calls for a rate hike of 1.625 mills. The increase amounts to roughly $75 per year of additional tax per household. Although board members previously expressed concerns over a tax increase, most agreed the additional revenue is necessary to “shore up township emergency services.”
Source: Bucks County Herald; 12/28/2022

Report on possible Pennsbury-Morrisville merger released
A highly anticipated report on the feasibility of merging Morrisville and Pennsbury school districts was released just before the districts went on their winter breaks. The report does not recommend a single course of action but outlines three scenarios:

• Pennsbury absorbing all Morrisville students
• Pennsbury being paid tuition to educate Morrisville students in grades 3 to 12
• Pennsbury being paid tuition to educate Morrisville students in grades 6 to 12

The report, prepared by PFM Consulting of Philadelphia, goes into detail about the issues involved, describing the complex costs of each of the scenarios, including for staffing, transportation, food service, use and care for facilities, and how the costs would affect bond ratings and property tax rates in a merged district or in the two separate districts. PFM will provide an overview of the report on Tuesday, Jan. 31, at 7 p.m. in the Pennsbury High School East Auditorium, 705 Hood Blvd. in Falls. Read some of the history of the merger discussions in the Bucks County Courier Times here.
Source: Bucks County Courier Times; 12/28/2022

Quakertown issues community survey in superintendent search
Quakertown Community School District Superintendent Dr. William E. Harner recently announced he will retire at the end of the school year. The school board is looking for input from the community and released a survey on the district’s website. The survey is an opportunity for all stakeholders, including residents, parents and guardians, faculty, staff and students, to be part of the process.
Source: Bucks County Courier Times; 12/28/2022

New Garden board says ‘No’ to sewer rate mitigation
By a 3-2 vote at its Dec. 19 meeting, the New Garden Township Board of Supervisors rejected a motion that would investigate ways to create a rate mitigation payment scenario for township customers who are tied into the wastewater system now owned by Aqua Pennsylvania — and who are seeing their sewer bills skyrocket under the new ownership. “While I don’t think the ratepayers have a right to the money — the money belongs to the township — I vote ‘Yes’ because I think the township should help out the ratepayers, because bills have gone up,” Supervisor Ted Gallivan said. “I have spent hours and hours thinking about how we could try to [create a mitigation system for Aqua customers in the township], but there is no easy solution. I am not happy I lost the vote stating my case, but I’m pleased that we have had a good dialogue.” For the past several months, the idea of the township creating a rate mitigation package has been generated from those Aqua ratepayers who have shared the alarming increases reflected in the sewer bills they have been receiving from Aqua. A grassroots organization called Keep Water Affordable (KWA) appealed to the township to consider such a proposal, citing the $29.5 million the township received for the sale of its wastewater system to Aqua. While board members have expressed empathy, their refrain has been the same: how would the township create a rate mitigation package that is equitable for everyone? The township supervisors have identified the need for infrastructure investment as a key focus moving forward.
Source: Chester County Press; 12/20/2022

Oxford Borough Council approves budget with no tax increase
Oxford Borough Council unanimously approved a 2023 budget that keeps the tax rate at 12 mills for another year. The budget is posted on the borough website. Borough council also held a hearing and motion to adopt an ordinance approving the adoption of the Business Improvement District Final Plan, approving the district boundaries and designating Oxford Mainstreet Inc. as the management association to implement and administer the provisions of the plan.
Source: Chester County Press; 12/26/2022

Coatesville velodrome work set to begin in 2023
All hurdles have been cleared and groundbreaking is expected in 2023 for the National Sports and Events Center (NSEC) in Coatesville. The nearly $80 million project, 15 years in the making, is expected to generate 248 jobs, about 100 of them permanent. City officials are hoping construction will be completed in time for the 2024 Olympics. The multisport events and entertainment facility will feature the National Velodrome, the first permanent indoor velodrome in the Eastern United States. The NSEC was recently awarded a total of $9 million in state funding to support land development of the 24-acre site in the center of Coatesville, a city with a population of about 14,000. Along with the construction of the new train station, the project is seen as having the potential to provide a significant economic boost to the city’s ongoing downtown revitalization.
Source: Daily Local; 1/1/2023

Battle for the West Chester Railroad begins
A tug of war is taking place for control of the SEPTA-owned railroad tracks between West Chester Borough and the new Wawa station. Members of the West Chester Borough Rail Service Restoration Committee hope to reestablish “Metro” rail service between the borough and Center City Philadelphia. Some people are worried that the reestablishment of new commuter trains would limit or curtail the use of the existing tracks for the ongoing tourist railroad. Representatives from the Heritage Railroad, a tourist train, want to ensure that antique trains can still operate on weekends. A representative from Heritage Railroad noted that the train provides an economic boost to businesses downtown. A decision must be made on whether the Heritage Railroad will continue to control the tracks through a sublease by April 1, but Borough Manager Sean Metrick noted that sublease can be renewed for as little as a year at a time. The plans to reestablish commuter rail would need SEPTA’s agreement and secured funding.
Source: Daily Local; 12/29/2022