29 March 2020
WARD 1 - COMMISSIONER’S REPORT
PENN VALLEY, GLADWYNE, MERION PARK
MARCH 29, 2020
I HOPE EVERYBODY IS DOING WELL during these challenging times. I am somewhat hesitant to write in that we can reach a saturation point with coronavirus information, so I seek only to share some recent, relevant information which hopefully you will find of assistance.
CURRENT COVID-19 CASES. As of today there are 431 reported cases in Montgomery County which is a 6% increase from yesterday. In Lower Merion, which remains the municipality with the highest number of cases, over the past 5 days the reported cases have been 48–60–68-71-79. I would not make any statistical analysis, but it differs from other “hot-spots.”
A COVID-19 drive-in testing site is available at Temple University's Upper Dublin campus, but testing is by appointment only from 10:00 a.m. to 4:00 p.m., for people who meet certain criteria. For more information, visit montcopa.org. The telephone number for the County's COVID-19 information line is 610-631-3000 and you can also email covid19@montcopa.org with questions.
For other Township news, if you have not done so, you can register for Blackboard Connect on the following website: https://lowermerionalert.bbcportal.com.
TAXMAN COMETH LATER. Lower Merion Real Estate taxes will not be due until June 1, 2020. Since the Township Building is currently closed, it is preferable that you pay by mail or electronically. More information can be obtained at: https://www.lowermerion.org/services/township-tax-collector-s-office.
REFUSE RESCUE. With everybody staying at home, there has been a 30% increase in trash and recycling tonnage. This places an extra burden upon our refuse workers and although they are handling this load, it extends the time required to finish their routes – and we are trying to minimize that amount of time people need be in close proximity. So, for those residents who have rear-yard pick-up if you are able to bring trash to the curbside this voluntary act would help the crews. Also, please try to reduce volume by flattening cardboard and any materials which can be crushed to take up less space.
REGIOINAL RAILS REIGNED IN. Regional Rail Ticket Offices are closed; tickets are available at Kiosks. As of Sunday March 29, 2020 all Regional Rail Lines will begin operating on an essential service schedule. This schedule will operate 7 days a week, except on the Cynwyd Line. Cynwyd Line service will begin Monday, March 30, 2020 and will only operate Monday – Friday. Full timetables of the new schedule will be posted on septa.org
Amtrak – Keystone and Pennsylvanian Service cancelled. Northeast Corridor (Regional and Acela) operating approximately 40% of typical weekday service.
IS $2 TRILLION ENOUGH? Congress passed a $2 trillion coronavirus economic stimulus bill which was signed into law on Friday, March 27, 2020. This legislation is aimed at providing relief for individuals and businesses that have been negatively impacted by the coronavirus outbreak. During the course of my “day job” (which I think still exists) I have tried to distill some highlights for clients which I share for whatever benefit you may find.
Direct payments: Americans who pay taxes will receive a one-time direct deposit of up to $1,200, and married couples will receive $2,400, plus an additional $500 per child. The payments will be available for incomes up to $75,000 for individuals and $150,000 for married couples.
Unemployment: The program provides $250 billion for an extended unemployment insurance program and expands eligibility and offers workers an additional $600 per week for four months, on top of what state programs pay. It also extends UI benefits through Dec. 31 for eligible workers. The deal applies to the self-employed, independent contractors and gig economy workers.
Payroll taxes: The measure allows employers to delay the payment of their portion of 2020 payroll taxes until 2021 and 2022.
Use of retirement funds: The bill waives the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-related purposes, retroactive to Jan. 1. Withdrawals are still taxed, but taxes are spread over three years, or the taxpayer has the three-year period to roll it back over.
401(k) Loans: The loan limit is increased from $50,000 to $100,000
RMDs suspended: Required Minimum Distributions from IRAs and 401(k) plans (at age 72) are suspended.
Charity. There is a new provision that provides an above-the-line deduction for charitable contributions, plus, the limits on charitable contributions are changed.
Small Business Relief: $350 billion is being dedicated to preventing layoffs and business closures while workers have to stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven. There is a 4% interest charge, however, which need be paid.
Net Operating Losses: The Tax Cuts and Jobs Act (TCJA) net operating loss rules are modified. The 80% rule is lifted, and losses can now be carried back five years.
Excess Loss Limitations: The excess loss limitation (ELL) rules for pass-through entities are suspended.
Interest Expense Limitation: The interest expense limitations are increased to 50% from 30% for tax years beginning in 2019 or 2020. Taxpayers can also elect to calculate the interest limitation for 2020 using their 2019 adjusted taxable income as the relevant base, which often will be significantly higher.
Large corporations: $500 billion will be allotted to provide loans, loan guarantees, and other investments, these will be overseen by a Treasury Department inspector general. These loans will not exceed five years and cannot be forgiven. Airlines will receive $50 billion (of the $500 billion) for passenger air carriers, and $8 billion for cargo air carriers.
Hospitals and health care: The deal provides over $140 billion in appropriations to support the U.S. health system, $100 billion of which will be injected directly into hospitals. The rest will be dedicated to providing personal and protective equipment for health care workers, testing supplies, increased workforce and training, accelerated Medicare payments, and supporting the CDC, among other health investments.
Coronavirus testing: All testing and potential vaccines for COVID-19 will be covered at no cost to patients.
States and local governments: State, local and tribal governments will receive $150 billion. $30 billion is set aside for states, and educational institutions. $45 billion is for disaster relief, and $25 billion for transit programs. Hopefully we are eligible in Lower Merion to offset the inevitable decrease in our tax revenues.
PLEASE TAKE CARE.
Dan