Millage Rate Limits Raised for Dedicated Fire & EMS Taxes

To meet the increasing financial needs of fire and ambulance services, on July 11th, the Pennsylvania General Assembly passed Regular Session 2023-2024 House Bill 2310, which authorized increased millage rates for annual taxes levied by Townships of the Second Class for Fire Protection and Emergency Services from 3 mills to 10 mills.

For the average Newtown Township homeowner, a 1 mill yearly real estate tax amounts to about $44.00. For the township as a whole, each mill in taxes brings in about $330,000.

Enhanced Fire Services Tax

According to the legislation, an eligible second class township – which includes Newtown Township – can, by ordinance, levy an annual tax not exceeding ten mills and appropriate the revenue collected from the tax for the following purposes:

purchasing and maintaining fire apparatus building and a suitable place to house fire apparatus;
making of appropriations to fire companies located inside and outside the township;
training of fire company personnel and for fire training schools and centers;
contracting with adjacent municipalities corporations or volunteer fire companies in adjacent municipal corporations for fire protection;
paying salaries, benefits or other compensation of fire suppression employes of the township or a fire company serving the township.

When the 2024 township budget was approved it included a 2 mill increase in the township’s fire protection fund. According to the Township Manager, this increase in the fire fund was needed to pay for a $250,000 contribution to the Newtown Fire Association. The fund also anticipates a contribution to its the capital fund of $660,000 for future capital purchases, including a new fire truck to replacing an aging engine. In 2024, the township dedicated 4 mills in taxes to the fire fund.

Emergency Ambulance Services Tax

The legislation increases the permitted millage for emergency services tax from one-half mill to five mills for the following purposes:

supporting ambulance, rescue and other emergency services serving the eligible township.
paying salaries, benefits or other compensation of employes of the ambulance, rescue or other emergency service.

The Newtown ambulance squad is facing the same financial issues as other emergency medical services across the commonwealth. The cost of medical equipment has increased, staff are leaving for better-paying jobs, and the squad has a funding model that relies mostly on insurance collections and patient co-pays, rather than local taxes.

Back in 2022, Newtown Township residents approved a referendum allowing the township to increase property taxes by 0.5 mills, an idea that the Newtown Ambulance Squad (NAS) proposed to the township (read “Voters Support Additional Needed Funding for the #NewtownPA Ambulance Squad”).

Ordinance Authorizing the New Tax Increase Limits

The Board of Supervisors can enact an ordinance authorizing the levy of up to 10 mills of fire tax annually and up to 5 mills of emergency services tax annually without specifying the actual tax rate. The actual tax rate, however, for each given year would be decided by the Board during its year-end budgeting process.

Survey

What do you think? Should Newtown Township authorize this new limit in Fire and EMS Services Tax? And if it does, should it actuallu increase these taxes and by how much? TAKE MY SURVEY!

Posted on 01 Oct 2024, 12:13 - Category: Taxes