|
For Immediate
Release
1/31/07
CONTACT:
PA
Senate Republican Communications
(717) 787-6725
Finance Committee Approves EMS Tax Reform Measure
Installment withholding, spending restrictions set by SB 218
AUDIO
HARRISBURG --
Senator Pat Browne's efforts to bring about significant reforms to the Emergency
Municipal Services Tax took a step forward with the Finance Committee's approval
of Senate Bill 218.
SB 218, the
first bill reported out of the Finance Committee since Senator Browne
took over as Chairman 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 Senate Appropriations Committee and could come before the
full Senate for consideration as early as next week.
Senator Browne's
bill mirrors the language of Senate Bill 157, of which he was the prime
sponsor during last session. That measure was approved by the General
Assembly, but vetoed by the Governor, who said the legislation did not
provide adequate time for municipalities to prepare for the changes.
"That is not an
issue this time," Senator Browne said. "I am optimistic that we can move
this legislation through the process in an expeditious manner. This is
essentially the same bill that was approved 47 to 3 in the Senate and
193 to 1 in the House last year. It makes common sense changes that make
this tax less onerous, especially for low-income workers."
SB 218 would
require that the tax, which would be renamed as the "Local Services
Tax," be withheld on a payroll-period basis with a maximum deduction of
$1 per week. Employers would be required to remit the LST collections on
a quarterly basis. It also exempts those earning $12,000 or less per
year from the tax.
The measure
restricts the use of the revenue raised by the LST to only the
following:
-
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.
"Many municipalities adopted the Emergency and Municipal Services
Tax at the maximum rate of $52 per year and withheld that 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.
"Further, the Local Services Tax specifically states how taxing bodies
may use the funds," Senator Browne continued. "The intent of the
original bill was that the revenue was to be used for public safety and
essential public works projects. This measure ensures that the money
goes to those efforts or is used to provide property tax relief or
reductions."
 Print this page
E-mail
this page
|
