Rocky Grove, Reno Fire Chiefs Believe Sugarcreek Borough Could Do More with Tax Rebate

Chris Rossetti

Chris Rossetti

Published November 16, 2017 5:40 am
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SUGARCREEK BOROUGH, Pa. (EYT) — Not enough.

That is the feeling of both Reno Volunteer Fire Department chief Mike Garbacz and Rocky Grove Volunteer Fire Department chief Jeremy Simcheck following a public hearing on Wednesday on the proposed Sugarcreek Borough ordinance that would give a 20 percent property tax rebate (on the borough’s portion of the taxes) to volunteer firefighters living the borough.

Both chiefs believe the borough should enact both the property tax rebate and Earned Income Tax (EIT) credit as allowed by Pennsylvania Act 172 of 2016 that authorizes the establishment of a Volunteer Service Credit program for volunteers of fire departments who meet certain requirements. (Municipalities can give anywhere between one percent and 100 percent rebate on the EIC or do a set rebate amount.)

“I’m very disappointed you are only doing the property tax,” Simcheck told the council at its regular meeting following the public hearing, which Simcheck missed because he was working. “I think it is personally a slap in the face of people who spend more than $100.00 or $200.00 a year just in gas. I think we should do more. I think you should offer the maximum allowed by law, which included the Earned Income Tax.”

Simcheck said based on his calculations, the most someone would get back with the 20 percent rebate, which is the maximum allowed by the law, would be $100.00 to $200.00 while Garbacz believes it would be in reality $50.00 to $100.00 and wouldn’t help anyone who rents a residence in the borough.

“We feel we won’t get anyone new to join the department, which is the idea behind the law,” Garbacz said. “It will help some current members, but if the intent is to bring in new members, it’s not going to.”

“Why not do the wage credit too and set a ceiling if it is too high?” Garbacz said.

Council member Larry Baughman said the EIC was discussed at a meeting in October, but the council as well as mayor-elect Charlie McDaniel, who was a candidate for that position in October, believed it would be too complicated for business owners.

“We can start with this and see how it works,” Baughman said. “We can always look at it next year. At least this is something to start with.”

There were some mumblings from firefighters in attendance that the borough shouldn’t even bother if all they are going to get back is $50.00 to $100.00, but Garbacz also seemed to believe something was better than nothing.

In addition to what the firefighters would get back, a start date for the program was also a matter of discussion.

The ordinance, as written by borough solicitor Brian Spaid, would have backdated the start date to January 20, 2017, meaning that volunteers who are eligible could receive the tax credit after paying their 2018 tax bill.

But, Baughman said that would be hard to do because time spent on fundraising efforts is factored into volunteer status. While Baughman believes Reno has kept good records of volunteer hours, he isn’t sure about Rocky Grove, and said it wouldn’t be fair to the Rocky Grove Ladies Auxiliary.

Garbacz suggested that the tax credit be implemented immediately for those in both departments who qualify but Baughman objected.

“Is that fair?” Baughman asked.

Garbacz conceded that it probably wasn’t, and Baughman said it needs to be fair to everyone.

It appears the ordinance that the council will vote on (it can’t be voted on any earlier than the December 20, 2017, meeting) will start with the 2018 tax year. If the ordinance is passed, volunteers won’t see a tax credit until the 2019 tax bill.

The proposed ordinance also defines eligibility requirements for active volunteers and administrative details.

Some of the highlights of that include a volunteer must be a Sugarcreek Borough resident and a member of either the Rocky Grove Volunteer Fire Department, the Rocky Grove Volunteer Fire Department Ladies Auxiliary, or the Reno Volunteer Fire Department.

In addition, volunteers must earn “credits” which can be accumulated in a variety of ways including responding to emergency calls, training, fundraising, facility or equipment maintenance, financial bookkeeping, involvement in other events or projects that aid the financial viability, and emergency response. Total years a volunteer has served is also a factor.

The credit program will be devised by the departments and approved by the borough. It will be the responsibility of the chiefs at the departments to record the credits and give the borough a list of eligible firefighters for the previous year by January 15 of the year after the eligibility.

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