MELLOW REMINDS WORKERS OF NEW TAX EXEMPTION
HARRISBURG, Jan. 16, 2007 – State Sen. Robert J. Mellow today
reminded workers making less than $12,000 per year that they now qualify
for an exemption from the Local Services Tax (LST).
“I certainly understand how burdensome this tax can be for low-income
workers who live paycheck to paycheck,” Mellow said. “I urge these
workers who qualify for this new exemption to make sure they properly
instruct their employer to not withhold this tax from their paycheck.”
Last year, Mellow backed legislation (Senate
Bill 218) that exempted low-income workers, disabled veterans and
activated military reservists from the tax (previously called the
Emergency and Municipal Services Tax). Depending on which municipality,
the tax ranges from $10 to $52 annually. The new law also requires
employers to withhold the LST in equal installments each pay period
rather than one lump sum.
Under the law, employees may file an annual “upfront exemption form”
with their local municipality levying the LST as well as their employer.
The exemption certificate verifies that the employee reasonably expects
to make less than $12,000 for that year.
Mellow said employers are required to make upfront exemption forms
readily available to employees at all times and provide new employees
with the forms when they are hired. While eligible low-income workers
can get this tax money refunded to them, Mellow said most should take
steps to prevent the tax from being taken from them in the first place.
He added that local governments that assess the tax at $10 or less have
the discretion to exempt low-income workers. Governments that assess an
LST above $10 are required to exempt eligible low-income workers.
“I am proud to have played a role in changing this law,” Mellow said.
“This tax was never meant to be a burden to low-income families,
part-time workers and students trying to earn spending money or
struggling to pay for school.”
# # # |
|
