By Monica Fragale
Contributing Writer

East Marlborough residents packed the township meeting room on April 23 for a preliminary discussion about a possible earned-income tax (EIT).

Questions from the standing-room-only crowd ranged from who would have to pay the tax to how any revenue would be used to whether township property taxes could be reduced as a result.

“If you’re thinking about (an EIT), maybe you should have a referendum,” said resident Chris Char. “A lot of people are already under the impression that it’s a done deal.”

Resident Richard Marquard asked how revenue raised from an EIT would be spent, adding, “No one from the board has addressed where that revenue is going to be used. It seems to me you’re asking for a blank check.”

The supervisors invited representatives from Keystone Collections to answer questions and explain the intricacies of the tax. Jayson Lawson of Keystone said that 70 of the 73 municipalities in Chester County already collect an EIT, which can be up to one-percent of a resident or employee’s income.

“This was our first step,” said Ellen Sosangelis, the chairperson of the Board of Supervisors. “We wanted to hear from residents, and wanted to hear from Keystone (Collections), the group that would collect an EIT).”

Talk of an earned-income tax surfaced during last year’s budget discussions, when the township had to increase taxes partly to cover East Marlborough’s obligation for fire and EMS services.

East Marlborough is in a unique position in that its borders encompass two school districts, one of which (Kennett Consolidated) already has an EIT in place, according to Lawson.

“Folks that live in the township and send your children to Kennett, you’re already paying a one-percent EIT to Kennett,” Lawson said, adding that if East Marlborough enacted an EIT, it would receive some of the tax revenue currently going to KCSD. The Unionville-Chadds Ford School District does not have an EIT. “A larger portion of the township lives within UCFSD, which does not have an EIT.”

Under an earned-income tax, anybody who lives or works within municipal borders could pay up to one-percent of their income. If there’s an EIT both where someone lives and works, then the funds are split, according to Lawson.

“If you’re employed, you’re responsible for the tax,” Lawson said. “If you’re retired, you’re not responsible.”

Residents who live in East Marlborough but work in an area with an earned-income tax currently pay the EIT to another municipality or school district. If the township supervisors would approve an EIT, then up to half of that tax would come back to East Marlborough, according to Lawson.

Resident James Horgan asked if an EIT could help reduce property taxes.

“If we put an EIT in place, will we reduce our property taxes to where they were?” he asked.

“That was part of our discussion,” Supervisor Jake Elks said. “If, in the future, an EIT is likely, then we need to go back and look at the entire revenue package.”

“Township residents would like to see a reduction,” Horgan said.

According to the township website (eastmarlborough.org), any impact of an EIT would depend on when it was approved.

“If the Board of Supervisors were to implement an EIT for collection to commence in 2026, it would have had to adopt an ordinance by its October 2025 meeting, which would be publicly advertised before any adoption,” the website says.

The supervisors meet on the second Wednesday of each month at 7 p.m.