Senate Passes Emergency Municipal Services Tax Reforms

HARRISBURG – The Senate passed extensive reforms to the Emergency Municipal Services tax today to prevent large lump-sum paycheck deductions, according to Sen. Chuck McIlhinney (R-Bucks and Montgomery Counties).

Senate Bill 218 would prevent the Emergency Municipal Services Tax from being collected in one lump sum maximum payment of $52. Under Senate Bill 218, the tax could be deducted at a maximum of $1 per week, meaning the average worker would only have $1 or $2 deducted from their paycheck.

"Collecting the tax in one lump sum placed an enormous financial burden on working Pennsylvanians, as many families who live paycheck-to-paycheck could not afford to have $52 deducted from their pay," McIlhinney said. "By collecting the tax $1 or $2 at a time, we can make this tax much easier to pay."

The legislation also exempts those earning less than $12,000 from paying the tax, providing tax relief to low-income workers.

Senate Bill 218 would expand the uses for this tax revenue. If signed into law, the tax could be used for road construction and maintenance, or property tax relief. Under the legislation, the tax would also be renamed the Local Services Tax.

Senate Bill 218 will now go to the House of Representatives for consideration.

CONTACT:

Heather Cevasco
(717)787-7305