Murrysville resident Larry Schultz said he’s surprised the municipality has gone 14 years without a tax hike.
“I appreciate how blessed Murrysville has been, based on their very sound spending and management,” he told council members recently.
Schultz supported a potential 0.2% bump in the municipality’s share of earned income tax revenue, up to 0.7%.
The proposal followed a 2020 fiscal analysis by the finance department showing that Murrysville’s use of capital reserves to support the general fund budget, combined with the impact of the pandemic, made it necessary to identify new potential revenue streams to maintain the current level of services to residents.
Murrysville has not raised taxes since 2007.
The proposals have stirred discussion and debate at council meetings and online in Murrysville-area community Facebook pages.
Brad Funari, a candidate for council, said boosting the earned income tax rate would shift a greater share of the community’s tax burden “on a reducing number of hardworking families in Murrysville.”
“It may create a windfall of revenue now but will not be sustainable in the long term,” Funari said.
Candidate Jamie Lingg suggested Murrysville could increase its industrial tax base by expanding industrial zoning “with careful consideration to location and without compromising property values.”
David Nader of Murrysville asked that council not raise taxes on just the residents who are working.
“This is a municipality issue, not an income tax issue,” Nader said. “Collecting a tax from a select group in your community is not only discriminatory, but it also opens the door to a dangerous precedent — ‘Let’s charge this group for this need, and this other group for this other need.’ It’s plain discriminatory, and it’s wrong.”
Councilman Carl Stepanovich noted an earned income tax hike is just one option under consideration, with another being a 0.5% bump in the real estate transfer tax on property sales, up to 1%.
“The real estate transfer tax affects everyone in the community — new home buyers as well as seniors downsizing, who will most likely benefit from the increase in their property values over an extended period,” Stepanovich said. “The proposed rate increases for both these taxes will strike a balance fair to all.”
Council candidate Joseph Conklin said he felt any tax hike “should be equitable in that it applies to those who earn an income and those who own property.”
Nader agreed.
“I’m here to call upon you to do the right thing, not the easy thing,” he said. “Treat us all alike.”
Council will consider both tax-hike proposals in November. For more information, including council meeting agendas, visit Murrysville.com.