HONEY BROOK TWP, PA — Honey Brook Township supervisors are considering an 80% reduction in the municipality’s dedicated open-space income tax, a proposal that would lower residents’ tax bills beginning in 2027 while reducing revenue available for farmland and land preservation.
The proposed ordinance would decrease the township’s open-space earned-income and net-profits tax from 0.5% to 0.1%, effective January 1, 2027. Supervisors have scheduled a public hearing for November 11 at 7 p.m. and could adopt the measure immediately afterward.
The reduction would lower the tax from $5 to $1 for every $1,000 in taxable earned income or net profits, saving affected residents $4 per $1,000.
For a resident earning $50,000 annually in income subject to the tax, the open-space levy would fall from $250 to $50, a $200 annual reduction.
Township officials estimate the reduced tax would generate $270,000 in 2027, substantially less than the approximately $840,000 in average annual revenue historically generated by the preservation program, according to information from the Chester County Planning Commission.
The proposed change would reduce the tax rate by four-fifths, although the projected revenue cannot be directly compared with historical collections to determine the precise effect on future preservation funding.
Honey Brook Township voters approved the original 0.5% open-space tax in 2005, establishing a dedicated revenue source for protecting agricultural land and other open space.
The program has helped preserve approximately 4,710 acres, according to the county Planning Commission.
Revenue from the tax is restricted to the township’s land-preservation program rather than general municipal operations.
The proposed reduction would leave that restriction intact while decreasing the amount collected from residents’ earned income and net profits.
The ordinance would amend Chapter 24 of the township’s municipal code, which governs the earned-income and net-profits tax. Other provisions of the existing tax ordinance, adopted in 2010, would remain unchanged.
The proposal creates a financial trade-off between reducing residents’ tax obligations and maintaining a dedicated funding stream for future land preservation.
The November 11 hearing will take place at the Honey Brook Township Building, 500 Suplee Road, before the supervisors’ regularly scheduled meeting.
Residents and other interested parties may attend and comment on the proposed ordinance. Supervisors could vote to enact the reduction following the hearing, but no final decision has been made.
The full ordinance is available for public inspection at the township building during regular office hours. Copies have also been provided to the Chester County Law Library.
Residents requiring disability-related accommodations to attend the hearing may contact the township at 610-273-3970.
If approved, the lower tax rate would take effect January 1, 2027, reducing the cost to residents while leaving the township with a smaller dedicated revenue stream for future open-space preservation.
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