In a 3-0 vote Wednesday night, Towamencin Township Supervisors implemented a 24% property tax increase as part of their 2023 budget, which means about $120 more in taxes for a home assessed at the median assessed value of $156,000, according to Supervisors Chairman Chuck Wilson.
Wilson was joined in his approval of the budget by Supervisors Rich Marino and Joyce Snyder, the sole Democrat. Supervisors Laura Smith and Kristin Warner were absent from the meeting.
The new millage rate for 2023 will be 5.6895 mills, an increase of 1.13 mills from the current year. Supervisors previously raised taxes in 2021 by 0.75 mills.
“This is a 24.8% increase from the current year. To the taxpayer that owns a home with the median assessed value of $156,000 will pay an additional $120 in real estate taxes, if they take advantage of Homestead Exemption,” said Wilson. “If their bill was $491 this year, it would be $611 next year.”
While the boost in taxes may mean $120 more for someone in a median-assessed home, it could mean a bill of $800 or more for those with properties assessed at $200,000 or more.
Last month, Towamencin Township Finance Director Adam Szumski said the 1.1315 millage increase would generate an additional $900,000 in revenue for the township, with about $400,000 going to personnel costs and interfund transfers. The rest is earmarked for capital equipment improvements.
“One of the items that we’re most proud of to do in the 2023 budget,” said Wilson prior to the vote, “is to address compensation issues of township non-uniform staff, given the current inflation environment. In addition to the increases that were a part of the budget, there was another $200,000, which was allocated among those employees to bring those salaries up to be competitive, so we can retain the valuable employees we have.”
Wilson thanked new township Manager David G. Kraynik for “starting the project before he got here.”
“He brought it home for us,” Wilson said. “We’re very pleased that we’re able to do that.”
Sewer rental fees remain at $450 annually in the new township budget.
Homestead and Farmstead Exemption will remain at $50,000. This will provide $227.90 off eligible taxpayers’ municipal property tax bills.
Homestead and Farmstead Exemptions are for primary residences only. Exemptions stick with the property every year unless the parcel is sold or becomes a rental property.
“In 2000,” Wilson said, “Montgomery County implemented Homestead Exemption, which allows a reduction in the amount of assessed value.”
Wilson urged taxpayers to apply for the Homestead Exemption.
“We still have people that don’t take advantage of Homestead Exemption,” he said. “Save yourself a few dollars on taxes.”
To take part in the Homestead Exclusion, property owners must register with Montgomery County by Dec. 15 for the next tax year. If you are eligible for Homestead or Farmstead Exemption, it is automatically billed into the tax bill. However, it only affects the next round of taxes, so those who received approval this tax year can expect to see it take effect next year.
Download the Homestead or Farmstead Exemption Application form here.
You can find Homestead Application, Homestead Removal and other Exemption forms on the Montgomery County Board of Assessment Appeals website at this link.
From 2002 to 2014, the Homestead and Farmstead Exemption amount in Towamencin Township was $59,000. It was reduced to $45,000 for 2015 and increased to $50,000 for 2022.
“Farmstead is similar to Homestead, except it targets farm properties,” Wilson said. “By law, if a municipality offers Homestead Exemption, Farmstead Exemption must also be offered. It cannot exceed the amount of Homestead Exemption.”
Two residents commented on the 2023 budget and tax increase: Towamencin Government Study Commission Chairman Kofi Osei and Government Study Commission Citizens’ Volunteer Committee member Vanessa Gaynor. Osei, who said he does not own real estate in Towamencin, criticized the board’s justification for two large tax increases and a sewer rate increase over the past three years. Gaynor was interested in supervisors updating the comprehensive and financial plans.
“We have to get into the habit of raising sewer and property taxes 0.5% every year,” Osei said, surmising that such a plan would lead to much healthier cash reserves. Osei wanted supervisors to think again if they thought a “last minute rate hike” was a way to reward neighbors.
“A tax hike without any sewer rate hike is incongruent with what you said during the sewer monetization process,” Osei said.
Earlier this month, Snyder, who seconded the motion for approval of the budget Wednesday, said gradual increases in taxes over a number of years could have prevented the current situation.
Homestead or Farmstead Exemption is not the only solution to aid taxpayers with paying their bills.
There is a PA-1000 Property Tax/Rent Rebate program for eligible homeowners, and the school district is also running a property tax rebate program.
In September, the school board voted unanimously for a resolution for a one-time 70% boost to the district property tax and rent rebate program for eligible homeowners and renters, with a financial impact to the district of about $250,000, aligning itself with this year’s state bonus rebate program.
The rent rebate program benefits eligible Pennsylvanians ages 65 and older, widows and widowers ages 50 and older, and people with disabilities age 18 and older. One cannot make more than $35,000 a year as a homeowner and $15,000 a year as a renter, and it considers half of Social Security income.
To be eligible for a rebate, the claimant must have lived at least one day of a claim year, owned, and occupied and paid taxes or rented and occupied and paid rent for the claim year during the time period the claimant was alive, according to the Pennsylvania Department of Revenue.
To be eligible for the North Penn School District rebate, the taxpayer must first be approved for the state rebate.
See also:
Lansdale Borough Passes 2023 Budget with 16% Tax Increase
North Wales Borough Passes 2023 Budget with No Tax Increase
Hatfield Township Proposed 2023 Budget Carries No Tax Increase
Towamencin Supervisors Proposing 25% Property Tax Increase for 2023
Montco Commissioners Vote to Advertise 2023 Budget with 8% Tax Increase
