Local Tax Reform
July 3rd, 2008 by Harold FordGov. Ed Rendell signed into law a bill that will streamline Pennsylvania’s local tax collection system. The new law (S.B. 1063) reduces municipal and school district Earned Income Tax collectors from 560 to 69. Essentially, one collector will be named for each county. The program will begin in 2010 and will be fully operational by 2012.
According to the Pennsylvania Economy League, Pennsylvania’s fractured and inefficient system left some $237 million uncollected each year, which would be enough to hire 3,000 more teachers and 3,000 more police officers, or lower property taxes. This bill, in essence, hopes to improve this. Sen. Jane Earll of Erie, the bill’s sponsor, said “The way we collect taxes now is antiquated, inefficient and results in a lack of withholding, lost revenue and revenue that ultimately does not get distributed to the municipalities where it belongs.”
If you’d like to read the bill, visit http://www.legis.state.pa.us/cfdocs/billinfo/billinfo.cfm?syear=2007&sind=0&body=S&type=B&bn=1063.
April 28th, 2010 at 12:44 pm
Would you be able to post a blog on where this stands today (2010) because i’ve had many municipalities threaten me with fines and penalties if i pay to anyone besides them.
Thank You
April 28th, 2010 at 2:59 pm
Tiffany,
From what I understand, localities and counties do not need to fully comply until 2012, which means until your told by your county, you should probably continue to remit the same way you always have. The state is asking counties to try to be ready on January 1st, 2011, but I’ve heard that this is not being expedited at the local level.
The reduction in tax collectors is a sore subject to collectors, which is probably why they are resorting to threats. Eventually (by no later than 01/01/2012) you will remit to one collector per county.