Chadds Ford going after back taxes

Chadds Ford Township is going after businesses that haven’t paid their Business Privilege Tax. Supervisors voted 3-0 during their June 5 meeting to seek collection going back to 2007.

As part of the resolution, they will also go after unpaid Local Services Taxes from employees of companies in the township, but only back to 2012.

An earlier consideration was to go after back taxes for both categories from 2007 onward.

Supervisor Keith Klaver said going after the BPT was fair because some businesses did pay, but that going after the LST beyond one year was problematic because it would put an unfair burden on businesses to attempt locating former employees.

The BPT is a tax of $100 per year per business operating in Chadds Ford Township. The LST is a tax of $1 per week, or $52 per year, on those employees who make more than $12,000 per year. Those taxes are supposed to be withheld by employers and passed on to the township.

As reported in December, former township tax collector Bruce Prabel, investigating on his own, discovered that at least 100 businesses — possibly 132 — operating in Chadds Ford were not on the tax rolls dating back to 2007. They were never billed for the LST and never paid them. Some businesses paid the LST, but not the BPT.

By Prabel’s figures at the time, between the uncollected business taxes, employee taxes and some property taxes that were never collected when properties weren’t properly reassessed, the township lost an estimated $740,000 over the years.

Other business

• During the June 4 workshop session, supervisors heard from representatives of the YMCA of the Brandywine Valley. The group is considering purchasing land from the Henderson Group for a facility in Chadds Ford.

Denise Day, president and CEO of the group, said they have signed a letter of intent to buy, but still want to see the best way to proceed. They’ve made no formal application yet and, so far, such use it not permitted under current zoning regulations. [That could be rectified by a commercial overlay. See below.]

If the plan goes through, the Y would build a facility on Henderson’s lot 12 that’s bordered by Hillman and Dickinson drives. It would have a first floor of 53,000 square feet and, possibly a second floor bringing the total square footage to 60,000 or 65,000 square feet.

• That possible commercial overlay is to be on the Planning Commission agenda for June 12. It is strictly a concept at this point, but one possible change would be to allow for a facility such as the YMCA.

If the overlay — the Neighborhood Commercial Overlay Ordinance — would come to fruition, it could also allow for a medium density housing development on the other side of Route 1 between Brandywine Drive and Painters Crossing shopping center. K. Hovnanian Homes has shown a concept plan of 114 townhomes on that 20-acre parcel. That, too, however, would need a zoning change before it could happen.

About Rich Schwartzman

Rich Schwartzman has been reporting on events in the greater Chadds Ford area since September 2001 when he became the founding editor of The Chadds Ford Post. In April 2009 he became managing editor of ChaddsFordLive. He is also an award-winning photographer.

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