Taxes
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TAXES

For Lower Gwynedd Township 80% of the total revenues come from taxes.  This revenue is used towards police protection, fire protection, street repair and maintenance, parks maintenance and capital improvement projects along with many other services throughout the township to ensure the highest quality of safety for our residents and visitors.  The following is a list and brief explanation of the taxes enacted by Lower Gwyendd Township.

EARNED INCOME TAX (EIT)*

An Earned Income Tax (EIT) of 1% on gross earnings for individuals and net profits for businesses is imposed on everyone living or working in Lower Gwynedd Township.  This tax is distributed evenly between the Township and Wissahickon School District, each receiving 0.5%.  The collection of the EIT generates 53% of the revenues received by the Township. 

REAL ESTATE TAX**

The Board of Supervisors approves the real estate millage rate for the Township as part of the annual budget approval process (usually in late December).  The following is the millage rate and breakdown for the 2012 Fiscal Year:

 

  • General Purpose                                 0.592 mills
  • Debt Service                                        0.400 mills
  • Fire Protection                                    0.146 mills
  • Recreation                                             0.055 mills
  • Fire Hydrant                                        0.030 mills

Total Millage Rate (2017)                  1.223 mills

 

Property Taxes are expressed in terms of mills per dollar of assessed value.  One mill is equal to one-tenth (1/10) of a penny or 1/1000 of a dollar.  To calculate a property tax the formula is always (Mill Rate X Assessed Value).   For instance, with a millage rate of 1.493 mills, and a $300,000 assessed value of a home the tax rate would be:   

                                                                               .001493 X $300,000 =  $447.90

LOCAL SERVICES TAX (LST)*

The Local Services Tax was enacted in 2011 and is paid by everyone working in the Township.  The tax is $52.00 per year.  This tax is usually collected by payroll withholding and remitted to the Tax Administrator.  Any individual making less than $12,000 in a calendar year can file for an exemption with your employer.  

 

BUSINESS PRIVILEGE TAX*

The Business Privilege Tax is paid by business owners and professionals with offices based in Lower Gwynedd Township.  The BPT is based on one mil (1 mil) of gross receipts.

 

MERCANTILE TAX*

The Mercantile Tax is paid by merchants with businesses in Lower Gwynedd Township.  The Mercantile Tax is based on total retail and wholesale sales from the business. 

 

** PSD Codes can be found here for the requisite forms.**

 

TAX COLLECTORS

*Mandated by Pennsylvania Act 32, Lower Gwynedd Township Elected Tax Collector will no longer be collecting the Earned Income Tax (EIT), Local Services Tax (LST), Mercantile Tax and Business Privilege Tax after the 2011 tax year.  The Act has consolidated the collection of the taxes to one administrator per county.  Effective 2012, Berkheimer Tax Administrator will collect for all jurisdictions in Montgomery County.   

 

**Lower Gwynedd's Elected Tax Collector will continue to collect the Real Estate Tax for Lower Gwynedd Township.  Her contact information is:

Betty Lou Yost

LGT Associates

724 Alene Road

Lower Gwynedd, PA 19002

215-628-3988