For Immediate Release
February 12, 2007
Contact: Anna Gustafson
717-787-2637
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Senate Acts To Reform Emergency Municipal Services Tax

HARRISBURG – The Senate passed legislation today that would prevent large lump-sum paycheck deductions from the Emergency Municipal Services Tax, according to Senator James J. Rhoades (R-29).

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

"This tax placed an enormous burden on working families, especially low-income workers who would lose a large percentage of one of their paychecks every year," Rhoades said. "Collecting this tax in increments of $1 or $2 just makes more sense, and it removes a major financial burden from those who can least afford 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.