At their Thursday night meeting, Northampton County Council introduced an ordinance that will give volunteer firefighters or employees (presumably unpaid) of an EMS nonprofit a rebate of up to $250 for county real estate taxes that have been paid that year by the volunteer or EMS employee. It was suggested the previous day by Council member Lori Vargo Heffner. It's a great way to show appreciation to volunteer firefighters, whose numbers are diminishing. If adopted, Northampton County would join Cumberland County as the only two counties offering this incentive. As wonderful as this idea sounds, I think more study is warranted because the enabling statute could very well run afoul of our state constitution.
There is a statutory basis for this proposal. In 2016, the state legislature authorized municipalities to offer a real estate or earned income tax credit to active volunteers for up to 20% on their tax liability. This tax break was enacted in Bethlehem Tp the following year. In 2020, the General Assembly authorized counties and school districts to offer this tax credit as well, even up to 100%.
While there's certainly a statutory basis for this tax break, the real question is whether it is unconstitutional.
Pennsylvania's Constitution includes a "uniformity clause" providing that "[a]ll taxes shall be uniform, upon the same class of subjects, within the territorial limits of the authority levying the tax, and shall be levied and collected under general laws." Unlike other states with similar constitutional provisions, Pennsylvania courts have consistently interpreted this mandate very strictly. It was enacted in 1874 precisely to prevent state or municipal officials from giving preferential tax treatment to influential developers who line politicians' pockets with campaign contributions.
This, of course, was completely unsatisfactory to special interests looking for LERTAs, TIFs and other real estate tax breaks. So the state constitution also includes some exceptions enacted in 1968. These include churches, cemeteries, public properties, veterans' clubs and purely public charities. The exception also authorizes the state legislature to carve out exceptions for private forest and agricultural reserves and to create those special tax breaks for developers. It allows the state to create limited tax exemptions for the aged, infirm and disabled. Disabled veterans are expressly exempt.
I see no basis in the state constitution under which volunteer firefighters and EMS personnel are entitled to a tax break. This could be why Cumberland County is the only one in the state to embrace this initiative.
This matter needs to be researched thoroughly, and it's unfair to expect Council Solicitor Chris Spadoni to have an answer in a matter of days. Given the strict interpretation given to the uniformity clause and the lack of a clear constitutional exception, this relief is questionable.
So what?, you might ask. Who would dare challenge this in court? I suspect that paid firefighters might have a problem with it. So might the municipalities that have paid fire departments. They already are subsidizing townships and boroughs who refuse to provide police protection, and now their citizens might be compelled to pay for eventual tax increases caused by this subsidy.
Here's another question. How much is this going to cost the county? How many active volunteers are out there? How many of them own real estate? Lori Vargo Heffner introduced a good idea but without getting some important data that might have an impact on the budget and revenue projections.
In Cumberland County, this measure reduced revenues by $47,124 this year. Cumberland has a population of 268,579. Northampton County has a census of 318,526. So it will cost a little more, assuming a commensurate number of firefighters.
Finally, isn't this a slippery slope? What about teachers, nurses and cops? Back in 2007, when Lamont McClure was on County Council, he proposed an American Heroes Grant for combat veterans in Iraq, Ron Angle retorted sarcastically with the suggestion that there be a Greatest Generation Grant for WWII vets. These would be politically beneficial, but were unlawful. Former Exec John Stoffa vetoed this proposal, which had no basis at all in law or the constitution. That was a very unpopular thing to do. But that's how he rolled.
25 comments:
A terrible idea form Hefner or political favor. She is a wannabe real county commissioner. She should stop trying to top McClure. She wants votes and will let the majority of county taxpayers pay for it.
Nice idea. Not theirs to give. I'm pro-choice on charitable giving. Government should let me choose my charities and volunteer organizations and not remove those choices from me.
In addition to Cumberland County, it seems that Lehigh County has also implemented this policy.
https://www.wfmz.com/news/area/lehighvalley/volunteer-firefighters-to-get-real-estate-tax-credit-in-lehigh-county/article_2a7d129c-e4a8-11ed-b0d6-afe4464b3a46.html
$250/yr won't change anyone's mind about volunteering. Volunteering in 2023, is dead. This is a dumb idea that won't solve the problem and will only result in less available funding for everything.
NOW is the time for a Regional Departments. No municipality can support a full time or hybrid department without raising taxes sharply. Some believe a hybrid dept will create animosity between the paid and unpaid, ultimately leading to volunteer decline and a full time paid. Tules prevent paid firefighters from running calls off duty.
Tax credits are nice, but don't solve the volunteer problem.
In the past, the social halls were there to support the volunteer department. Now, it seems they are separate entitites and some may have a liquor license as a non-profit in name onky but do little to support their host department. These licenses should be regulated. The state and Counties should lead Fire and Police regionalization efforts. Service without Borders could provide economy of scale savings and reduce duplicate, costly equipment.
Bernie, Lehigh County already moved on this, for volunteers only, not paid Fire/EMS personnel. This is the right thing to do and eliminates the slippery slope issue you brought up.
We should do this.
Lehigh County - https://www.wfmz.com/news/area/lehighvalley/volunteer-firefighters-to-get-real-estate-tax-credit-in-lehigh-county/article_2a7d129c-e4a8-11ed-b0d6-afe4464b3a46.htm
Lower Mac also did this few years ago.
Absolutely they should receive tons of benefits. They're VOLUNTEERS!
The number should be 2500
8:34, I'm glad to see this in Lower Mac and in Lehigh. I would contact their solicitor to see what research was done with respect to the uniformity clause. That is my big concern.
The state passed legislation authorizing this a few years ago, and expanded it to include Counties around 2020. Someone would have to challenge the state legislation as violative of the uniformity clause.
"Absolutely they should receive tons of benefits. They're VOLUNTEERS!"
Are they? Some of the EMS workers at nonprofit EMS agencies are paid employees. The ordinance as drafted would consider them volunteers. That definition needs to be more clear.
BoH 1026. Paid EMS medical transport could also serves as volunteers firefighters. In this situation, I would extend the tax credit to them. All volunteers should meet a minimum level of service to qualify for the tax credit. This shoukd be certified each year by the the Chief based on call response.
Absolutely they should receive tons of benefits. They're VOLUNTEERS!
Bernie,
Had no idea. Thanks for informing us.
Bernie writes:
"Are they? Some of the EMS workers at nonprofit EMS agencies are paid employees. The ordinance as drafted would consider them volunteers. That definition needs to be more clear."
"Someone would have to challenge the state legislation as violative of the uniformity clause."
Yes. This challenge could come from a municipality that has a paid department bc it is being forced to subsidize volunteers outside of its jurisdiction. I think that is possible, though unlikely.
There should also be more language concerning the review of membership logs, etc. The proposed ordinance calls for periodic review by the Northampton County Board of Commissioners. That is a nonexistent entity. Council members may choose to call themselves commissioners, but it is still Northampton County Council. Moreover, how is Council to conduct this periodic review? That's bogus. Not one of them will ever check a thing, which will give free rein to an unscrupulous person deciding who is entitled to be called a volunteer. There should be a mandatory annual audit of these logs, probably by the Controller's office. I know most fire chiefs are very honest, but we have an obligation to look out for fraud and abuse.
While we are at it, home owners whom have paid off their mortgage should be exempt (or at least pay a much, much lower amount) from school property taxes. Thieves.
Not a resident of Northampton County. I live in Allentown. While I have some sympathy for lightly populated areas with low incomes, it galls me when relatively rich townships that don’t’ fund their own services get subsidies from the State and County. (These tax breaks are a subsidy.) In Lehigh County, Lower Macungie Twp is of course the classic example (huge houses and shopping centers, no municipal police or fire). Any subsidies of these types of services should take into account the unwillingness of well-healed home owners living in MacMansions to pay for their own services through their own property taxes. Here is some info on a few townships in NC.
Municipality....Household Income(K)...Median Housing Value (K)
Williams Twp............88.4................307.3
Beth. Twp..............104.2................278.3
Hanover Twp.............93.1................311.6
Forks Twp..............107.2................286.8
Bushkill Twp...........100.6................302.8
U. Bethel Twp...........75.0................234.9
L. Bethel Twp...........69.0................244.9
Northampton Co (avg.)...77.1................232.5
Should all townships and communities receive subsidies?
(If you want to check my numbers or look at other townships, insert the name of the township before “northamptoncountypennsylvania” in the url. Include the word township, no abbreviations or spaces.)
https://www.census.gov/quickfacts/fact/dashboard/northamptoncountypennsylvania/INC110221
No Way!
I’m sick and tired paying for the services that the greedy insurance companies benefit from. It’s time they pay their fair share. EMS workers all fire companies and partial,police departments should be paid by the insurance companies not by local taxes.
"Any subsidies of these types of services should take into account the unwillingness of well-healed home owners living in MacMansions to pay for their own services through their own property taxes."
Certainly fair. Two thoughts come to mind. 1) Don't hate the player. Hate the game. 2) The townships cited prove the old adage, if you watch your pennies, your dollars will take care of themselves.
"While we are at it, home owners whom have paid off their mortgage should be exempt (or at least pay a much, much lower amount) from school property taxes. Thieves."
So, if rich people come in and buy a MacMansion for cash, they pay no school taxes on their new palace? Alrighty.
So, she didn't even check to change the language in her bill. Been told she is a county organization big cheese in training. Do this and Wach every special interest group come filing in for their well-deserved tax break. It is sad government is now populated by hey look at me people who buy votes with taxpayer money.
There is a huge difference between providing tax incentives for volunteer firefighters and EMS workers vs. the concept of providing similar tax breaks to persons who are full time paid employees (such as police officers).
It would also help if municipalities used their existing authority to enact dedicated real estate taxes to fund fire and EMS services, so that the volunteers and their families don't have to spend so much of their life doing fundraising. One person joked "I'd love if it the fire companies were fully funded, but the Air Force had to hold a bake sale to buy a new bomber."
North Whitehall and Lower Macungie are the clearest local examples of municipalities with large populations that do not pay for a local police force. As a result, Lower Macungie has almost no municipal real estate taxes, while everyone else pays for their State Police protection. There have been multiple efforts over the years by Governors and legislators to require municipalities with large populations to pay their fair share of police costs, but the measures never move forward.
It is only appropriate for the State Police to be the primary police force for very rural townships and very small towns.
PA. has the second highest gas taxes in the U.S., but PennDOT keeps saying they don't have the funding to make needed road improvements and transit agencies are facing large deficits.
One of the main reasons is that hundreds of millions of dollars of our gas tax revenue is being diverted to fund the State Police. Governor Shapiro is working to stop these diversions, so the money is really used for transportation as intended.
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