On November 8, 2016, the majority of UMT voters (approx. 59% of the votes received) were in favor of imposing an additional Earned Income Tax at the rate of 0.1385 (%) percent on an annual basis beginning January 1, 2017, to be used for the purposes of financing the acquisition, protection, conservation or preservation of undeveloped open spaces or areas; forests and farmlands; natural and scenic resources; and recreational or historic lands; and payment of the attendant costs associated with such actions. This will allow the Township Board of Supervisors to increase the amount of land in the Township which may not be developed for commercial and residential purposes.
The Earned Income Tax increase for UMT residents will equal $13.85 per ten thousand dollars ($10,000) of income.
PLEASE NOTE THAT EARNED INCOME EXCLUDES: Social Security Benefits; Unemployment Compensation; Pensions; Public Assistance; Death Benefits; Gifts; Interest; Dividends; Boarding and Lodging to employees for convenience of employer; Lottery Winnings; Personal use of company cars; Supplementary unemployment benefits (sub pay); Capital Gains (Capital losses may not be used as a deduction against other taxable income); Disability Benefits (Periodical payments received by an individual under a disability insurance plan; Active military service served outside of Pennsylvania and summer encampment; Cafeteria plans; and clergy housing allowance. Some forms of payments from Individual Retirement Programs, such as Keogh, Tax Shelter Annuity, IRA, and 401K are not taxable. Taxpayer should refer to the PA Department of Revenue regulations regarding taxable compensation. These forms of income will not be affected by the passing of the open space referendum.
The additional Earned Income Tax tax imposition will remain in effect for a minimum of five years and will continue unless another referendum to eliminate the additional tax imposition is passed.