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Tax relief discussed

An Earned Income Tax credit is being considered for active firefighters in West Penn Township.

The township supervisors on Monday said they are considering providing the credits under Pennsylvania Act 172 Firefighters Ordinance.There is a time constraint on the supervisors.Attorney Holly Heintzelman, the borough's solicitor, said for the tax credit to be implemented in 2018, it would have to be advertised 30 days before approval and 45 days before tax bills go out.This means action must occur by either late September or early October.She said the township presently has 37 active fire department members.The supervisors were undecided if the credit should be a maximum of $200 or $150 of the amount of Earned Income Tax credited if they approve the measure. The Earned Income Tax is 1 percent of an individual's earned income, but the total collected is shared between the local municipality and school district.An individual earning $40,000 would pay $400 in Earned Income Tax. If the credit is $200, the school district would receive $200 but the township wouldn't receive anything because of the credit. If the maximum credit is $200 and the individual earns $20,000, that particular individual would have a $100 township credit toward their $200 Earned Income Tax bill.Heintzelman said the township has the option to apply the credit to Earned Income Tax or Real Estate Tax. The supervisors felt it would be more practical to apply it, if approved, to Earned Income Tax because not all the firefighters own real estate.The solicitor said the township would have to provide a list of eligible recipients of the credit to the tax collector.Act 172 Firefighters Ordinance was approved in Harrisburg as a method to help volunteer firefighters recruit new members.Anthony Prudenti, vice chairman of the board of supervisors, said that whatever the township forfeits in tax revenue on the credit, it will deduct from the amount budgeted each year for the fire department."So the net result is it doesn't hurt our budget," Prudenti said. "We have budget talks coming up, and we cannot raise taxes."In other matters, the township is looking into installing an electronic billboard at the police department building.Prudenti said the township has been considering this for some time, but such a billboard would cost $30,000 to $60,000.He said a private firm is interested in installing a billboard and paying the township a rental fee of $4,000 to $4,600 per year over 20 years. The sign would be 25 feet wide and 12 feet high. There would be eight rotating messages, with seven of them sponsored sites and the eighth one provided free to the township.Prudenti said since he is serving only a six-year term, "I would feel uncomfortable signing a 20-year lease."Chairman James Dean said he feels differently, and that allowing the sign would provide revenue for the township and allow it to offer free messaging.Supervisor Ted Bogosh agreed with Dean, saying, "We wanted to put up signs for some time. We're not only getting the sign, but getting income."The supervisors agreed to seek additional information.