Murrysville to consider increasing earned income and property transfer taxes
With the public misperception when Murrysville council considered increasing its share of income taxes earned this spring, council members chose to wait for more specific numbers.
“I think we can wait a few months, the budget process will start, and then we can say, ‘This is the exact percentage,’” Chairman of the Board Dayne Dice said in April. “Then we can pass this enabling legislation and then raise taxes at the same time.”
The time is approaching and a tax hike is possible.
At its meeting tonight, the council will consider issuing an ordinance amending the tax code and lowering its percentage of labor income tax from 0.5% to 0.7%.
The council’s initial announcement that it would consider an increase of up to 1% drew criticism from residents. Some believed that this also meant that the Franklin Regional School District’s share would increase.
Currently, the 1% tax levied on labor income is split between the municipality and the school district. But what the municipality collects has no effect on the school district’s share. In fact, if the district wanted to increase its levy, it would have to do so through an electoral referendum, according to state law.
Tonight’s agenda also includes a vote to announce an ordinance raising the real estate transfer tax from 0.5% to 1%.
The municipality has not raised taxes since 2007 and, as of 2012, income tax revenues began to exceed property tax collection, according to Murrysville chief administrator Jim Morrison.
If the board chooses to release the ordinances, both will go to a public hearing at the November 3 meeting. If enacted, they will take effect for tax year 2022.
Tonight’s meeting is set for 7:00 p.m. at the Murrysville Municipal Building, 4100 Sardis Road. The meetings are also broadcast live on local access Comcast Channel 19 and broadcast via Murrysville.com.