EMS Tax Reform First Senate Bill Approved in 2007-08

Senate Bill 218 now headed to House for consideration

The Senate today gave final approval to Senate Bill 218, a measure introduced by Senator Pat Browne to bring about significant reforms to the Emergency Municipal Services Tax.

SB 218, the first bill approved by the Senate for the 2007-08 Legislative Session, would end the lump-sum maximum payment of $52 and set specific restrictions on how taxing entities may use revenues raised by the levy. The bill is now headed to the House of Representatives for consideration.

"I am very pleased that the Senate made this bill a priority and expeditiously moved it on to the House," Senator Browne said. "This is basically the same bill that was approved 193 to 1 by the House last year. Therefore, I hope the House will act just as quickly and provide this relief to working Pennsylvanians. It brings about common sense changes that make this tax less onerous, especially for low-income workers."

SB 218 would require that the tax be withheld on a payroll-period basis with a maximum deduction of $1 per week. Employers would be required to send collections on a quarterly basis. It also exempts those earning $12,000 or less per year from the tax.

The bill would rename the tax as the "Local Services Tax" and permit the revenue raised by the levy to be used for the following specific purposes:

• Emergency services including police, fire and emergency medical services;
• Road construction and maintenance;
• Property tax reduction; and/or,
• Property tax relief through the use of homestead/farmstead exemption.