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LEHIGH VALLEY WEATHER

Commissioners to consider fire tax, tax break for firefighters

Bethlehem Township’s volunteer firefighters may soon receive a tax credit for their service under a new law recently signed by Gov. Tom Wolf.

Under this law, municipalities now have the option of establishing and setting the amount for a tax credit for earned income or property taxes for first responders. But to participate in the program, the individual must be an active volunteer, reside in the township and meet certain certification requirements. Also, the tax credit is limited to 20 percent of tax liability.

This exemption was proposed by Tom Nolan in August, but Mike Hudak and Howard Kutzler said they’d like to review the matter.

At the township’s Sept. 18 meeting, Manager Melissa Shafer said the tax would impact 33 volunteers at Bethlehem Township Volunteer Fire Company, and a similar number at Nancy Run. She estimated that the township would lose revenue of about $17,500 if the exemption comes from earned income tax. She and Finance Director Andrew Freda had previously said it would be easier to administer this exemption if it only came from earned income tax.

Howard Kutzler called the exemption a “wonderful tool to support our volunteers.”

Commissioners directed that a specific proposal be created at the fire relations committee meeting in October, with the plan of enacting an ordinance in time to take effect next year.

While on the topic of firefighters, Tom Nolan proposed that the township enact a fire tax similar to a tax already in place in eight other Northampton County municipalities.

President Mike Hudak, who said he proposed a fire tax himself several years ago, has grown leery of the notion. He warned about setting aside money to buy equipment that is unneeded. He said fire trucks are sold to other municipalities who have no problem obtaining the necessary certifications. He added that Bethlehem city drives “shiny fire trucks” from the 60s, “and they love ‘em.”

Finance Director Andrew Freda told Hudak that he spoke with the state about this idea and it was recommended as a common practice and as a good way to plan ahead. Hudak said he’d want the fire tax to include the township’s entire annual obligation to volunteer firefighters. Freda said that was a good idea and would enable him to streamline that contribute to 80-90 percent of what volunteer firefighters get now.

Chief Ron Ford told Hudak and other commissioners that firefighters don’t dictate what equipment the township must purchase, and explained some of the difficulties faced in obtaining insurance.

Nolan cautioned that a fire tax would not mean, by itself, a tax hike. He said a 0.50 mill fore tax could mean a reduction in the general millage rate.

PRESS PHOTO BY BERNIE O'HARENancy Run Volunteer Fire Co. Engine 14.