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FOR IMMEDIATE RELEASE |
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CONTACT: Ann
Collis |
State Rep. David
Levdansky |
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Levdansky measure passes House, would simplify EMS tax refunds
HARRISBURG, June 4 – The House today approved a measure that would provide an exemption for low-income taxpayers from the $52 Emergency Municipal Services tax the legislature adopted several years ago to help local municipalities pay for fire, police and emergency services.
State Rep. David Levdansky, D-Allegheny/ Washington, said his amendment would especially help low-wage workers who are currently hit hardest by this tax.
“Seniors and school-age workers, as well as low-income and part-time employees, stand to benefit the most under this provision,” Levdansky, chairman of the House Finance Committee, explained. “Under current law, people who are on a limited income have money taken out of their check and then must apply for a refund a year later. My proposal would simplify the process so that low-wage workers would not be forced to navigate a cumbersome and unresponsive return process.”
Under Levdansky’s measure, the annual $52 tax would be waived up front for those who earn less than $12,000, rather than the current provision which requires taxpayers to seek reimbursement at the end of the year.
Those eligible under the provision would be required to submit a uniform exemption certificate created by the Department of Community and Economic Development to their employers and local tax jurisdiction, along with the previous year’s W-2 forms or year-end pay stubs for income earned within the taxing jurisdiction.
If an exempted taxpayer exceeds the $12,000 threshold during the year, he or she would be liable for an immediate catch-up, lump-sum withholding of the amount that would have been collected up to that point had it not been for the taxpayer's initial exemption status. Then for the remainder of the year, his or her tax would be withheld on the same basis as other employees.
Levdansky noted that much of the criticism stemming from local government associations relative to the amendments to S.B. 218 in committee had to do with the difficulty of the collection of the tax and the potential administrative requirements in the bill for municipalities.
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“We would not have those difficulties if it wasn’t for the fact that we have over 550 tax collectors collecting local taxes,” Levdansky said. “Shortly, I plan to introduce legislation that would remedy that by requiring local wage taxes and eventually the local services tax to be collected by
one county-wide collection agency. Studies have shown that Pennsylvania could save over 200 million dollars with county-wide tax collection.”
Levdansky’s measure was successfully inserted into S.B. 218, which aims to rectify the exemption issue and would rename the Emergency and Municipal Services the Local Services Tax. The House of Representatives approved the bill 190-8 and sent it back to the Senate for its consideration.
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Attention Radio News Directors: an actuality from Rep. Levdansky is available by calling 1-800-452-3001. Enter PA203 (7-2-039) and the pound sign (#) at the menu prompt to get today’s sound. You can also download the sound in .mp3 format by visiting www.pahouse.com/mediacenter.