At the January 26, 2023, meeting of the Bucks County Tax Collection Committee (TCC), Joseph W. Lazzaro, Vice President & General Counsel, KEYSTONE collections group, gave an update on Earned Income Tax (EIT) collected in 2022.
“Earned Income Tax generation [for Bucks County] is again up by 7.6% in 2022 over 2021,” reported Mr. Lazzaro. The total amount collected was nearly $835 million!
Newtown Township received $5.76 million in resident EIT in 2022 Keystone Report. In contrast, the township received $5.30 million in resident EIT in 2021, according to 2021 Keystone Report. Thus, the township saw an 8.7% increase in resident EIT in 2022 over 2021!
NOTE: Half (0.5%) of the 1% Resident EIT collected by Keystone earmarked for Newtown Township goes to the township and half (0.5%) goes to Council Rock School District (CRSD).
Meanwhile, Newtown received $2.159 million in non-resident EIT in 2022 according to the Keystone Report, whereas in 2021 the township received $2.184 million in non-resident EIT, which is a modest 1.1% decrease in 2022 compared to 2021.
NOTE: The full 1% of Non-resident EIT goes to the township.
At the TCC meeting, mention was made that Falls Township and Langhorne Borough instituted EIT in 2023. Newtown, therefore, will not be able to collect EIT from residents of these municipalities who work in Newtown. It is estimated that the township will lose over $170,000 in EIT in 2023 due to this.
Mr. Lazzaro also mentioned that primarily due to more sophisticated automated procedures, delinquent EIT collections continue to go up with $13.8 million in revenue from this source for Bucks County (see photo). Apparently, Newtown did not see an increase in delinquent EIT. In 2022, Newtown Township received $444,248 in delinquent EIT compared to $484,420 in 2021, which is a decrease of 8%.
For Newtown, the combined resident, non-resident, and delinquent EIT received in 2022 was $8.36 million compared to $7.97 in 2021 – a 4.9% increase!
Listen to an edited excerpt of Mr. Lazzaro’s comments below.
Posted on 29 Jan 2023, 01:25 - Category: Taxes