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For Immediate
Release
2/12/07
CONTACT:
PA
Senate Republican Communications
(717) 787-6725
Audio
EMS Tax Reform Bill Approved
Senate Bill 218 now headed to House for consideration
HARRISBURG -- 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
and Municipal
Services Tax.
SB 218
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:
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Emergency services including police, fire and emergency medical
services;
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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."
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