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Newtown Township taxpayers will be paying slightly more in 2017.
The $12.5 million spending plan for 2017 includes a property tax increase of one mill, which is equal to $339,082. The millage rate will rise from 2.5 to 3.5 starting January 1, Township Manager Kurt Ferguson said.
According to The Advance, the average property owner will see their real estate tax increase by $38 to $40.
The budget will use the slight tax increase to help pay for the Newtown Township’s multi-year plan to repave and repair roads.
The spending plan does not include expenditures for a new township-operated fire company. The plan was included in an early budget but scrapped after a new agreement with the Newtown Fire Association was reached.
In November, Ferguson explained that raising the tax rate to pay for more paving will allow the township to keep up with its 78 miles of roads. Currently, paving and repair projects are paid for with about $540,000 in state liquid fuels tax but it doesn’t allow the township to keep up with the aging roads.
Newtown Township has seen a decrease in earned income tax (EIT) revenues over the past few years. As more towns, like Bensalem and Middletown, have introduced EITs, the amount collected by Newtown Township has shrunk and hurt the township’s bottom line.
The budget was approved 3-2 with Supervisor Jennifer Dix and Supervisor Ryan Gallagher voting against the spending plan.
Editor’s Note: An earlier version of this story incorrectly indicated that spending for a previously proposed township-operated fire company was included in the budget. The funding was removed from the budget after the plan was scrapped.
