Hatboro Moves Forward on Wage Tax

Come January, people who work in Hatboro could begin seeing less of their paychecks.

In fact, those who earn $12,000 or more per year would see $1 per week less under a proposed Local Services Tax that the Hatboro Borough Council is considering for adoption. During Monday night's meeting, the governing body voted to authorize advertisement of the ordinance. 

Council President John Zygmont said the potential $52-per-year tax on people employed within the borough would be discussed during the council's Nov. 5 meeting and is expected to be adopted on Nov. 19 following a public hearing.

Zygmont said previously that the levy would help to minimize the "reality" of a property tax increase in 2013. 

If enacted, the Local Services Tax would become effective and begin to be deducted $1 per week, beginning in January.

Officials seem to favor the taxing method because, based on data, it would only impact 361 borough residents who earn more than $12,000 per year and work in Hatboro. The bulk of the 2,150 people who work in Hatboro live elsewhere, officials have said. 

Based on 2012 first quarter figures provided by Berkheimer Tax Administrator, the $52 tax - which would replace the $10-per-year occupational privilege tax - would generate $111,782 in total. Of that amount, $18,785 would be paid by the 361 borough residents who earn more than $12,000 per year for work in Hatboro. Workers who live outside of Hatboro would pay the remaining $92,997.

In Montgomery County, 40 of 60 municipalities – including Horsham – have enacted a $52-per-year Local Services Tax. In Bucks County, 33 of 57 communities have put the $52 tax in place.