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Dover board votes 5–4 to form earned‑income‑tax commission to study shifting tax burden
Summary
By a 5–4 vote the board agreed to establish an earned income tax commission to study whether to pursue an earned‑income tax (EIT) to offset property taxes; solicitor outlined statutory deadlines that would constrain the timetable if the board pursues a referendum.
The Dover Area School District Board voted 5–4 to establish an earned‑income‑tax (EIT) commission to study whether the district should pursue an earned‑income tax as a mechanism to shift some of the local revenue burden away from property taxes. The vote authorizes the formation of a citizen commission to research impacts and hold public hearings; any proposal ultimately would require voter approval in a municipal election and, if approved, would not take effect until the 2026‑27 school year.
Director Kendig, who has raised the EIT in prior meetings, said a commission would study local earnings, assessments and distributional effects and return a nonbinding recommendation to the board. “At some point in time we have to start thinking about these widows and widowers … who are on really a fixed income,” he said, arguing that an earnings‑based tax could provide relief to homeowners on fixed incomes.
District solicitor Mr. Pratt briefed the board on statutory timelines during the discussion. Pratt said the commission must be established by March 7 to meet the schedule for placing a question before voters at the November municipal election. The commission then has 90 days to hold at least one public hearing and make a recommendation to the board. The board must decide whether to place a referendum on the ballot at least 60 days before the election (September 4 this year, per Pratt’s summary). If the process moves forward this year and voters approve a change, Pratt said any tax change would apply beginning with the 2026‑27 school year; missing this cycle would delay any action two years.
Board members split on the merits. Supporters said an EIT can shift the burden off fixed‑income homeowners who pay property taxes but not wage taxes; opponents said the EIT is regressive in impact on low‑income wage earners and does not tax nonwage retirement and investment income, creating inequities. One board member pointed out Dover already levies a relatively high EIT (0.9%) compared with other county districts.
Public testimony mirrored board debate. Resident Chris Rotolo urged action to provide the board with information and said voters might back a modest revenue increase if presented with the dollar‑for‑household impact. Other commenters warned a wage tax hits low‑income earners and retirees differently and urged caution.
The motion to form the commission was moved by Director McKinney and seconded by Director Wolverton; the roll call produced five votes in favor and four opposed. The board resolution authorizes creation of a commission (board to define membership size and composition) to study the EIT and hold required public hearings; any recommendation from that commission would be nonbinding and require subsequent board action to place a referendum before voters.
Next steps: If the board proceeds with forming the commission the solicitor said the district must meet statutory deadlines (March 7 to form commission; 90 days for commission recommendation; September 4 decision deadline to place an item on the November ballot). If the board misses this calendar, the next municipal ballot opportunity would be in two years and any approved change would not be effective until the 2028‑29 tax year, per the solicitor’s summary.
