Occupation Tax Elimination Referendum

History

The current Occupation Tax uses a resident's occupational title to determine the rate at which they are taxed, regardless of their salary. You can read more about the current tax bill and how it works here.

The Occupation Tax Elimination Act  gives School  Districts the option to eliminate the Occupation Tax by switching it with a small increase in the District’s Earned Income Tax Rate (EIT).

In the spring of 2023, the Phoenixville Area School District Board of Directors approved a motion to place the Occupation Tax Elimination on a ballot referendum. Phoenixville voters will have the opportunity to vote on that ballot referendum on November 7, 2023.

The following information is meant to provide clarity on the referendum in order for voters to make an informed decision and is not an endorsement of a vote by the Phoenixville Area School District.

Overview of the Ballot Referendum

Question: Do you favor eliminating the Phoenixville Area School District Occupation Tax, effective July 1, 2024, which would require increasing the Earned Income Tax rate from 0.5% to a maximum of 0.6%, beginning January 1, 2025?

A YES vote will:
  • Replace occupation tax with 0.1% increase in Earned Income Tax
  • Tax amount will be based on income, NOT job title
  • Most residents earning less than $220,000 per year will see a DECREASE in taxes paid
  • Tax withheld by employers - no bills mailed to taxpayers
  • Change only affects working residents of PASD
  • No changes to property taxes
  • No changes for retired/senior residents

A NO vote will:
  • Keep existing occupation tax
  • Tax amount will be based on job title, not actual income
  • Individual bills mailed to taxpayers annually
See the various household scenarios below for examples on how this will affect a resident's current tax burden.

Household Scenario #1:

Resident A - Accountant $85,000/year
Resident B - Administrative Assistant $45,000/year

A chart describing scenario 1


Household Scenario #2:

Resident A - Aide $28,000/year
Resident B - Laborer $50,000/year

A chart describing scenario 2

Household Scenario #3:

Resident A - Computer Engineer $120,000/year
Resident B - Sales Manager $135,000/year

A chart describing scenario 3


Household Scenario #4:

Resident A - Physician $425,000/year
Resident B - Actuary $120,000/year

A chart describing scenario 4

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