Sen. Browne's EMS Tax Reform Headed to Governor

SB 218 helps low-income workers, provides for installment payments

The Senate today concurred with House amendments to Senate Bill 218 -- a measure introduced by Senator Pat Browne to bring about significant reforms to the Emergency and Municipal Services Tax -- and sent the legislation to the Governor for his signature.

"I am pleased that the General Assembly was able to work together to move this bill to provide important tax relief for Pennsylvania workers," Senator Browne said. "It is my hope that the Governor will act quickly to sign this vital legislation into law. SB 218 brings about common sense changes that make this tax assessment more user-friendly, especially for low-income workers."

SB 218 will end the lump-sum maximum payment of $52 and set specific restrictions on how taxing entities may use revenues raised by the levy. It also requires that the tax be withheld on a payroll-period basis with a maximum deduction of $1 per week. Employers will be required to send collections on a quarterly basis. Those earning $12,000 or less per year are exempted from paying the tax.

"Many municipalities adopted the Emergency and Municipal Services Tax at the maximum rate of $52 per year and withheld that amount in one lump sum, which created a tremendous financial burden for many lower-income workers." Senator Browne said. "Under this measure, low-income workers will be exempt and everyone else will see the tax burden reduced to $1 per week."

SB 218 would rename the tax as the "Local Services Tax" and requires that a minimum of 25 percent of the total revenue collected must go to support emergency services including police, fire and emergency medical services operations. The bill permits the remaining revenues to be used for the following specific purposes:

Road construction and maintenance;
Property tax reduction; and/or,
Property tax relief through the use of homestead/farmstead exemption.

Contact:

Lesley Crozier
(717) 787-1349