The City of Chester is having its way with the Act 47 recovery plan as they’re picking and choosing which elements to enact regardless of the suggestions in the plan.
For example, the so called not-yet-fully-approved-recovery plan recommends earned income tax make a step increase with a jump to 2.5% in 2017 and to 2.75% in 2018. But, according to the notice in the December 17 Delaware County Daily Times, Chester will jump right to a 2.75% income tax for residents starting in 2017.
Establish the earned income tax rate at 2.75% for 2017 on salaries, wages, commissions, net profits and other compensation earned by residents of the City of Chester.
Tax payers will feel the pinch as a 2.75% resident wage tax is the second highest rate in the state behind Philadelphia at 3.9% and represents a nearly 30% increase from the current rate.
In other tax news, according to the notice in the December 21 Delaware County Daily Times, Chester will consider the enactment of a proposed ordinance establishing an Amusement Tax at City Council on December 28 at 10 a.m.
This is in accordance with the municipal financial recovery plan adopted April 25, 1996.
It goes something like this…
There will be a 5% tax on any amusement that imposes an admission price over 10 cents. However, this does not apply to ski resorts and golf courses in Chester where only 40% of the lift ticket or greens fees are assessed the 5% tax.
The ordinance does provide for certain exemptions from the tax if the amusement is conducted for the benefit of religious, educational, governmental, charitable, or fraternal, veterans or society organizations.
Someone asked me if I thought anyone would care about all these new taxes. What do you think?