Hatfield Township: Additional 0.25% Earned Income Tax for Open Space

Official plain English statement

Under the authority of the Open Space Lands Act, the Board of Commissioners of Hatfield Township is seeking voter approval to increase the current one half of one percent (0.50%) Earned Income Tax (EIT) already levied annually on residents of the Township by one quarter of one percent (0.25%). The EIT applies exclusively to earned income and does not apply to pensions, Social Security, or other fixed income sources. If approved, the Township's EIT would rise from 0.5% to 0.75%. The revenue generated from the proposed increase in the EIT shall be used to acquire open space land and interests in real property in Hatfield Township, including fee simple purchases, agricultural easements, and conservation easements or development rights, as well as to pay for related acquisition expenses, such as appraisals, legal fees, title searches, survey costs, and closing fees. The Act allows up to 25% of the annual open space tax revenue to be used to develop, engineer, design, improve, and maintain property acquired for an open space benefit or benefits. The revenues from this earned income tax increase would be used only for the purposes provided for in the referendum question, which include acquiring lands and other interests in real property to preserve undeveloped land and expand opportunities for outdoor recreation. The open space land acquired shall be used for open space preservation and/or for both passive and active recreation purposes, in strict compliance with the Act. The Township would also be required to establish, by ordinance, procedures to review, rate, and value properties prior to acquisition. The Township may use the revenue from the tax increase to pay off a bond that was secured to purchase open space.