The municipal property tax rate will decrease in Upper Makefield in 2023.
The township’s Board of Supervisors has approved a municipal budget for next year that reduces the millage rate by 0.8 mils to 6.45 mils.
“Nearly all of our property tax is for debt payment for Open Space purchased over the past 20 years. As that is paid back, we can reduce our property tax,” explained Upper Makefield Township Manager Dave Nyman.
In a report on the budget, Nyman further noted that Upper Makefield “has been able to continue to reduce taxes while at the same time funding a Five-Year Capital Improvement program and maintaining a comfortable fund balance, with no impact to the services provided to our residents.”
A mil is equal to $1 of every $1,000 of a property’s assessed value.
To calculate the municipal tax on an Upper Makefield property under the new millage rate, multiply the assessed value of the property by 6.45 and then divide by 1,000.
For instance, a residential property assessed at the township average of $68,745 will pay $443 in township real estate taxes in 2023.
County and school district taxes make up much larger portions of a resident’s property tax bill. The township doesn’t control those. Council Rock School District taxes take up about 80% of the total property tax bill, with the county getting about 15% and the township a pinch under 4%, according to data from Upper Makefield.
Like other municipalities, the township also collects an earned income tax. The EIT rate in Upper Makefield is a half of a percent.
“According to the 2020 Census, the median income for a family in Upper Makefield Township is $157,014, which translates into an annual Earned Income Tax payment of $785.07,” Nyman noted in his report.
The general fund of the township’s 2023 budget projects expenditures of about $8.1 million. The general fund, which is by far the largest portion of the budget, pays for essential services that include police, public works, township administration and more.
Other notable funds include open space, where $884,587 in expenditures are projected next year, and the fire fund, where $178,000 in expenses are anticipated.
Nyman noted that the budget is the culmination of the collaborative efforts the Board of Supervisors, township staff, volunteer boards and residents.
“The entire township team of employees should be commended for their efforts,” Nyman said. “With this year’s ongoing work to continue to control costs and contain spending, township staff has exhibited their dedication to serving the residents of Upper Makefield.”
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