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Posted on: December 20, 2018

2019 Budget Adopted; Earned Income Tax Increased

The Township recently completed a five year financial plan with the assistance of Public Financial Management. After extensive review of the plan, a 2019 budget was developed and presented to the Board of Supervisors. This budget was posted for public review in mid-November and was adopted at the Supervisors’ meeting on December 12.  

As part of the budget, we have found it necessary to increase the Earned Income Tax (EIT) collected by the Township in 2019 in order to maintain services for residents and meet our financial obligations. The Earned Income Tax is levied on wages, salaries, net profits, commissions and other compensation.

Beginning January 1, 2019, the Earned Income Tax rate for residents and those who work in East Whiteland will be .75 percent (.0075), up from .50 percent (.0050). If you already pay .75 percent or more in Earned Income Tax because you work in another area that has a higher EIT rate, you will not pay any more than what you are currently paying. The additional tax will simply be transferred from the area where you work to East Whiteland. In other words, the EIT will fund essential services where you live instead of where you work.

This change is the first East Whiteland tax increase in 26 years. The Township had avoided increases by delaying spending and receiving non-recurring revenue from the private sale of large commercial properties but that approach is no longer sustainable. The additional revenue from this tax will cover large increases in employee pension and post-retirement liabilities, funding for road maintenance and equipment and open space acquisition.

Keystone Collections Group, which collects the EIT for East Whiteland, will be contacting employers to make them aware of the change. You should also notify your employer. If you are self-employed or you earn income not subject to withholding, please note the change for your quarterly 2019 tax filings. If you require quarterly forms or need reporting assistance, please contact a Keystone Collections Group taxpayer service representative at 724-978-0300 or ask a question online anytime at www.keystonecollects.com.

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