Merits of Arnold's firefighter tax credit still debated as measure awaits passage next month

Members of the Arnold Volunteer Fire Department have to wait a little longer to see the firefighter tax credit become reality.

Council was expected to vote on the credit, which would give the city’s volunteer firefighters a tax break for their service.

The tax credit, approved by the state Legislature in 2016, provides firefighters tax relief of either 100% of the city real estate tax paid on a primary residence, or a percentage of the tax paid to the city on earned income up to $50,000.

It was designed to encourage people to volunteer and to recognize and reward those who are already in the fire service.

Councilman George Hawdon has been pushing for approval of the credit but took the blame for it not being brought to a vote at council’s November meeting.

Hawdon said council couldn’t vote on the ordinance because the legal requirement for advertising it advance was not met.

Hawdon apologized to the firefighters attending the meeting and said it would be brought up for a vote Dec. 12.

Resident Karen Peconi, a former Arnold mayor, asked if city officials had determined how many firefighters would qualify for the credit.

Hawdon said there were 15 firefighters living in Arnold who would be eligible.

Peconi said she did not begrudge firefighters getting the benefit of the tax credit but was concerned about the financial impact on the city.

“How big is this going to get,” she said, “because we all know that Arnold needs every dollar it can get.”

Hawdon said two of the eligible firefighters would likely opt for the real estate tax credit, which would cost the city around $1,300 in revenue.

As for the others, Hawdon said: “You’re looking at about $7,300 in foregone revenue. And that would be if everyone earned $50,000.”

He said that could change if Arnold firefighters living in other communities become eligible.

That would occur if their communities also approve the tax credit and agreed to honor it for residents volunteering in Arnold. Hawdon said Arnold would reciprocate and offer the credit to city residents volunteering in other communities.

“We are being watched by other communities up and down the Valley,” he said. “If we pass this, it would be very hard for any other community to deny it.”

Chris O’Leath, a New Kensington resident who volunteers with the Arnold department, made a point in regard to what it would cost the city.

He asked how much the credit would cost the city in total to implement; Hawdon said about $9,700.

O’Leath said that the city’s volunteer fire company saved the city about $63,000 last year.

Hawdon noted that the tax credit would have to be approved by council every year.