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FOR IMMEDIATE RELEASE |
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CONTACT: Amy
Figard |
State Rep. Paul Costa |
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Costa: Lump-sum ‘EMS’ tax no more
HARRISBURG, June 21 -- State Rep. Paul Costa, D-Allegheny, is pleased to announce that a bill he championed to help give relief to taxpayers was signed into law by Gov. Ed Rendell today.
The new law allows the tax to be deducted from a worker's paycheck at a rate of $1 per week, rather than having the full $52 taken out of the first paycheck of the year, and changes the name of the Emergency and Municipal Services Tax to the Local Services Tax.
Costa said the lump-sum deduction of $52 was a detriment to lower-income workers, who sometimes received no pay at the start of the year because the amount of the tax exceeded the amount of their first paycheck.
“This was such a huge burden for Pennsylvania taxpayers, especially for low-wage employees,” Costa said. “Prior to the original bill’s passage, I knew the implications the large deduction would have on workers, and I raised those issues by trying to correct the legislation then but to no avail. I’ve continued to work hard to eliminate that burden and today I express great pride in seeing the success of that hard work come to fruition.”
Employers will now collect $1 per week from each of their employees and then remit $13 per quarter to their municipalities.
Another modification exempts workers earning $12,000 or less per year from paying the tax.
The tax is being renamed as the Local Services Tax to eliminate confusion surrounding the use of the returns. At least 25 percent of the tax revenue must go to local emergency services, such as police, fire and emergency medical personnel. Revenue can also go toward road construction or maintenance or property tax reduction.
“Many people mistakenly thought proceeds went to emergency medical service providers, which negatively impacted those organizations’ funding drives and hurt their ability help communities,” Costa said. “I commend the governor for endorsing the changes and bringing much-needed relief to working Pennsylvanians.”
The new law takes effect immediately.
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