EMS Tax Reform Headed to Governor

SB 218 helps low-income workers, provides for installment payments

The Senate concurred with House amendments to Senate Bill 218 -- a measure cosponsored by Senator Bob Robbins (R-50) to bring about significant reforms to the Emergency and Municipal Services Tax -- and sent the legislation to the Governor for his signature.

"This will bring needed reforms to this tax," Senator Robbins said. "As it stands now, this tax places an extremely heavy burden on low-income workers. Senate Bill 218 will not affect the funding municipalities receive to help cover the costs for vital services, but it will eliminate the lump-sum payment of up to $52 that took a serious bite out of employee paychecks."

SB 218 will end the lump-sum maximum payment of $52 and set specific restrictions on how taxing entities may use revenues raised by the levy. It also requires that the tax be withheld on a payroll-period basis with a maximum deduction of $1 per week. Employers will be required to send collections on a quarterly basis. Those earning $12,000 or less per year are exempted from paying the tax.

"One of the key provisions of the bill is the requirement that 25 percent of the total revenue collected must go to support emergency services including police, fire and emergency medical services," Senator Robbins said. "That will ensure that money is dedicated for essential public safety operations."

The bill permits the remaining revenues to be used for the following specific purposes:

Road construction and maintenance;
Property tax reduction; and/or,
Property tax relief through the use of homestead/farmstead exemption.

Contact:

Michael Hengst
(717) 787-1322