Wednesday, December 4, 2013

Earned income tax

In its initial year, West Marlborough Township's 0.5% earned income tax raised $83,000 -- significantly more than the township supervisors had expected when they enacted the tax last December.
At the Dec. 3 township meeting, during a discussion about the proposed 2014 budget, supervisors chairman Bill Wylie said tax consultants had estimated that the tax would bring in $100,000, but the supervisors thought it would be closer to $50,000, given that the household budgets of many township residents involve unearned rather than earned income.
Mr. Wylie said the money raised by the tax is being used to replenish the township's equipment fund, which had been transferred to other accounts and became seriously depleted over the past few years.
The proposed budget calls for no tax increase or decrease for 2014. Mr. Wylie noted, however, that if the township can avoid the extraordinary expenses it faced in recent years (largely unexpected legal and engineering fees), the supervisors might "reconsider" the need for the earned income tax.

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