At their Thursday night meeting, Northampton County Council adopted 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 sponsored by Council member Lori Vargo Heffner. It's a great way to show appreciation to volunteer firefighters, whose numbers are diminishing. Northampton County joins Cumberland and Lehigh County as the only three counties offering this incentive.
This ordinance was supported by Heffner as well as Council members Tom Giovanni, John Cusick, Kerry Myers, Kevin Lott, Tara Zrinski and John Brown. Council member John Goffredo recused himself from the vote because he is himself a volunteer. He nevertheless interjected himself several times to argue ion favor of the tax break. He also voted for two amendments and against a Kerry Myers' motion to table.
Council member Ron Heckman was the Great Dissenter.
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 and Lehigh County were the only ones in the state to embrace this initiative.
This point was raised by Executive Lamont McClure. He expressed concern that the ordinance as well as the enabling statute violate the uniformity clause's mandate that "roughly requires ... that everyone is taxed the same." He added that it's unknown how many people will be eligible or how much it will cost the county. He agreed the proposal "comes from the right place." He finally observed that the ordinance would give paid EMS employees a tax break so long as their employer is a nonprofit, and this would be "fundamentally unfair" to the paid EMS workers of a municipality.
Council Solicitor Chris Spadoni said his "educated guess" is that the ordinance would survive a constitutional challenge.
Vargo Heffner claimed there were 50 volunteer companies. Goffredo said there were 38, and later said there were 35. It is clear that no one on Council has any idea who is or is not eligible.
So what?, you might ask. Who would dare challenge this in court? I suspect that paid EMTs or 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. It's good politics, but fiscally irresponsible.
I am surprised that Cusick and Zrinski, both of whom are running for Controller, would agree to this without having more data. So much for requiring accountability.
I am surprised by Heckman's vote. This was a lay-up. Why you would be the lone dissenter is strange. This was a deserved thank you. He will have a lot of people angry at him.
ReplyDeleteBad law passed badly by people who are too stupid and/or too lazy to understand state law.
ReplyDeleteWe need the Counties to step up and promote regionalization. At the present time, we may have more equipment to serve our our needs but not enough volunteers to get a truck out of the station. Counties should do the heavy lift and support regional, paid staff to augment volunteer force. Rebates are nice but don't solve the real problem.
ReplyDeleteHeckman lives in the city so they have real firefighters. He's also not running for re-election. These drinking clubs where they maybe go watch a house burn a ridiculous and don't deserve this. Give it to the real first responders who work for these "volunteer" organizations.
ReplyDelete"I am surprised by Heckman's vote. This was a lay-up. Why you would be the lone dissenter is strange. This was a deserved thank you. He will have a lot of people angry at him."
ReplyDeleteI, for one, thank him. Instead of doing what is politically expedient, like the rest of them, Heckman noted that there really are a lot of unknowns. We don't know how many people are going to be eligible for a $250 reduction in a county tax bill that averages out to $500. We don't know how exactly this impacts the budget. Both Goffredo and Vargo Heffner provided vastly differing estimates. Spadoni said he thought the legislation is constitutional, but hardly gave it a ringing endorsement. And it is fundamentally unfair. Why is an EMT who is employed by a nonprofit eligible for a tax break when he is actually paid? Council needs to re-read the ordinance it adopted and amend it a third time bc it contradicts itself. I personally believe it is unconstitutional and our state supreme court is really tough and strictly construes the uniformity clause.
Goffredo was the biggest hypocrite. He claimed he was conflicted and had to recuse himself based on mistaken advice from Spadoni. If that's so, she should not have participated in the debate at all. That's what recusal means. Instead, he dominated the conversation with all kinds of arguments for this tax break. This included spurious arguments like the child tax credit, which is federal, not state. (The uniformity clause has no application). He voted on two amendments as well as a motion to table. It was completely ridiculous.
From what has been said in the past I am not surprised council went ahead with this. They seem to feel McClure opposes anything that council initiates, while at the same time attacking them for not getting on board and praising everything he wants to do. So now council is fed up and moves ahead on its ideas regardless of what he or his people claim. It is a pattern they say is a hallmark of his administration.
ReplyDeleteHe has a democrat majority on council but has a terrible relationship with them, probably the worst. It appears he only gets along with Zirinski and Lottt who do what they are told and praise his actions, the rest are mean and enemies. His group's sarcastic and condescending manners have affected his ability. Maybre next year when his handpicked candidates are onboard council, he will have more success.
Word is a majority want to do a Home Rule Study because there are problems in an executive heavy county government. They were threatened in the past not to move on it, but it sounds like those days are past.
WTF is wrong with Spadoni? He should have said yes or no as to the legality of this ordnance not " I think it will hold up". Time for Spadoni to go. It's one or the other. I agree with you Bernie.
ReplyDeleteThis comment from2:09 included a huge gap at the end, so I have deleted it and am re-publishing it here:
ReplyDelete"I hope I am mistaken but does this mean that if you live in a city that has professional fire and rescue departments that are paid for by your tax dollars, but another municipality (where you don't live) choses to save tax money by making those services volunteer, their personal would also be paid (actually in essence through a reduced tax bill) by you as well. I can't help that notice some of those municipalities have pretty fancy real estate to boot. All firefighters and EMTs should be paid and they certainly deserve it. They should be paid by the people they serve. So it seems to me some county residents will be taxed twice to the advantage of others.
"I hope I am misunderstanding this new tax break."
12:29,This ordinance has been adopted by several municipalities and with a lot more preparation than occurred here. There is an enabling statute under which the county is specifically authorized to award these tax breaks. But if the enabling statute in unconstitutional, so is the county ordinance.
ReplyDeleteI am sure that Cumberland and Lehigh County researched the question whether a tax break for volunteer firefighters is in violation of the uniformity clause. That constitutional provision includes some exceptions that enable tax breaks like the TIFs we commonly see get handed out like candy. I do not believe any of the exceptions contained in the PA Constitution authorize this tax break. I'd love to see the research proving me wrong. The Pa Supreme Court has been very strict in its interpretation of the uniformity clause. It's why we can't have different tax rates for commercial as opposed to residential properties. It's why a graduated income tax would be illegal.
Goffredo incorrectly claimed he was conflicted. Having reached that conclusion, he should have refrained from participation in the debate or any of the votes concerning this ordinance. One of his misplaced arguments is that a tax credit for child care is legal so this must be ok as well. What Goffredo fails to realize in that the childcare tax credit applies to federal taxes, not state. The state supreme court's uniformity clause has no application in federal tax matters.
With this type of program the volunteer must pay their taxes in full and show proof after payment for a rebate. There are certain requirements they must meet to certified also to receive such a credit. I am not sure yet uniformity clause would be in play because they technically are paying their taxes. They just receive a rebate the following year.
Delete12:54, Your understanding is accurate. The citizens of Municipalities with paid firefighters will be funding this tax break for volunteer firefighters in municipalities that have no paid firefighters and in some cases have no police departments.
ReplyDelete"11:39 - the final sentence of your post is precisely the problem. Most voters are unwilling to spend the time fact-checking ON THEIR OWN. "
ReplyDeleteTrtanslation: Look up goofy far-right websites that confirm your bias.
@9:11 am give it to the cities where they have “real firefighters”. As the wife of a volunteer firefighter, instead of sitting behind your keyboard, why don’t you get off your computer and go run into a burning building for no compensation. It’s a shame that this turned to an attack on individuals who risk their lives for no compensation. You don’t have to like the government or the idea of this tax. Trust me, $250 tax credit won’t mean a damn thing if my husband or one of his fellow firefighters loses their life trying to save your home or loved one. These so called “fake firefighters” are also well trained and take their unpaid job seriously. They are just as valuable as those who receive compensation for what they do. So if you want to call them fake and bash them, post your address so the fake ones can sit at their drinking clubs while you save yourself with your garden hose.
ReplyDeleteRegionalize the fire fighting in the county and pay for it! Stop this nonsense of volunteerism and parochiality. Too much equipment means nothing if you are out there begging for free help! Professionally trained and paid fire fighters are what this county deserves and will pay for willingly. Vollies are a hit and miss concept that is now an archaic solution to a serious situation. Stop bowing down to these good old boys clubs that may or may not serve you well when you most need it.No tax break for wannabe fire fighters no matter how well they scream they are well trained and equal to a paid county/city service.
ReplyDeleteVollie threats are what we get for offering a sane solution to the issue. IF you really want to save lives and be paid for your efforts as a professional..go to school and get certified and find a job with pay and benefits and then you can be proud of yourself and support your family and community with pride. Threatening to not show up at a fire is an insane statement and you need to get the H out of the conversation.
ReplyDelete