Allentown plans to divert the Earned Income Taxes from nonresidents who work inside a 130-acre NIZ in the downtown and along the Lehigh River. Instead of passing this local tax revenue back to surrounding municipalities where these nonresidents live, the money will instead help pay for a hockey arena and other improvements over the next thirty years.
South Whitehall appears to be dissatisfied at the lack of information, the diverson of EIT, and the outright diversion of the Township's own businesses.
To date, South Whitehall Township has not taken an official action for or against the NIZ. It has been our hope that we would be provided with information which would be useful in determining our exposure as it relates to diverted Earned Income Tax revenue (EIT). This information has not been delivered and may not be available until June.
Further compounding our concerns are the artificially subsidized rents that will be charged within the Zone. Ironically, our Earned Income Tax will be used to subsidize lower rents within the NIZ, potentially luring South Whitehall businesses into the NIZ
and out of South Whitehall.
We remain hopeful that we can a collaborative and amicable resolution in the coming days.
South Whitehall's Board of Commissioners is next scheduled to meet on Wednesday, April 18, at 7:30 p.m., in the Public Meeting Room of the Township Municipal Building located at 4444 Walbert Avenue.