Chester has no property tax increase for the 16th straight year

Chester preliminary 2011 budget REDUCES TAXES!

Chester, PA -- Chester City Council approved the first reading of the city’s $41.6 million budget for FY 2011 earlier today which included significant tax relief even in light of ongoing difficult nationwide economic conditions.  At a time when many cities are in a major struggle to make ends meet, the City of Chester is not only cutting taxes, but enhancing critical services while simultaneously investing in the future with dedicated funds for vital capital improvements.  The positive results of more than a decade of redevelopment has allowed the City of Chester to continue lowering the tax burden on its residents and businesses while maintaining or improving services.  

The 2011 preliminary budget reduces the resident earned income tax (EIT) rate from 2.25% to 2.15%, reduces the non-resident EIT rate from 1.25% to 1.15%, and provides for no increase in the city’s real estate tax rate for the 16th consecutive year.  “It is nothing short of remarkable that during these difficult economic times we are not only able to hold the line on property taxes, but also able to reduce the earned income tax rate thereby allowing taxpayers to keep more of their hard-earned dollars when they need it most,” said Mayor Wendell N. Butler, Jr. 

Councilman Shepard Garner, Director of Accounts and Finance stated, “I am happy that we are able to relieve some of the tax burden on City residents in light of the difficult economic conditions while maintaining the current level of services. I am also excited that the 2011 Budget affords City residents the opportunity to attend Delaware County Community College at significantly reduced tuition costs.  As Finance Director, I am committed to serving with the residents best interests in mind.”

With these reductions, the resident earned income tax rate of 2.15% has now been decreased by 28% since its high of 3.0% back in 1996.  These tax reductions, when coupled with the Homestead Credit of $632 in direct property tax relief on school district real estate taxes as a result of gaming revenue, have saved households thousands of dollars over the last decade. 

In addition, the budget also commits 1% of the City’s table game revenue from Harrah’s to the Chester Upland School District in order to become a sponsoring district of the Delaware County Community College for the first time in history which will reduce residents’ cost to attend by 50% from $194 to $97 per credit hour.