Bristol Township To Reduce Taxes On Business

The Bristol Township Council unanimously passed a procedural vote to look into lowering a business tax, which they fear may be hindering growth in the township.

“I feel that this tax is currently a deterrent to attracting large entities to Bristol,” said Councilman Bob Lewis, during the meeting on May 19.

The Non-Residential Unit Tax cost -- a tax on the construction of new commercial and industrial facilities -- has rose greatly over the past 10 years.

In 2002, the then-council voted to increase the tax from $0.25 per square-foot to a $1. Four years later in 2006, the council voted to raise the tax once more, doubling it to $2 per square-foot.

“I paid that tax. I hated it. I think this will give (Bristol Township) a much friendlier face,” said Bristol Township Business Coalition member Gerard Lykon.

Currently, the township proposes to roll back the tax to its previous 2002 level.

Issue over the tax came out during Thursday's meeting, when Solicitor Russ Sacco brought to the council an anonymous complaint from an attorney representing a large local business who intended to move to a 200,000-square-foot lot. With the current tax code, it would cost nearly $500,000 just to get the building permit.

"We need to get new businesses into these lots and buildings. I'm for (reducing the tax) 100 percent,” said Democratic council candidate Troy Brennan.

While lowering the tax may bring in new businesses, it will also mean less revenue for a township that already has its fair share of financial woes.

On average, in the last five years, the township has seen around $72,000 in additional revenue from the increased tax rate. With the new tax code, that revenue could be slashed in half.

The council said it isn't too worried about the loss of revenue. According to their estimates, the township said it already has $65,000 more from the Non-Residential Unit Taxes than what was planned out in their 2011 budget.

“I'm not going to say that we don't need the money -- we definitely do, but if it's going to bring business and spur growth, then this is definitely a good thing,” said Council President Rick Pluta.

Township ordinance requires a minimum of three advertisements in local news outlets for any changes done to the tax code. The council is expected to pass the tax reduction measure at the June 16 council meeting.