Authorized by the Local Tax Enabling Act, the Emergency Municipal Services Tax (EMST) is levied on the privilege to engage in an occupation within a taxing district. It replaces the Occupational Privilege Tax, and is separate and distinct from the Occupation Assessment Tax. In contrast to the Occupation Assessment Tax, the EMST is levied on residents and nonresidents alike who work within the taxing body's jurisdiction.

EMST is also distinct from the Per Capita Tax, which is fixed amount levied only those residing within the jurisdiction regardless of the amount of property they own or their occupation.

The current maximum statutory rate of the EMST is $52, and is subject to sharing between municipality and the school district.

Unlike the Occupational Privilege Tax, an individual can be subject to EMST in multiple work locations throughout the year as long as the total amount paid does not exceed the $52.00 annual cap put in place by ACT 222.

Section 2 of the Local Tax Enabling Act permits each taxing authority to, by ordinance or resolution, exempt from the EMST any person whose yearly income from all sources is less than $12,000. Taxing bodies are authorized to adopt regulations for processing claims for exemptions.

Situs

The situs for the Emergency Municipal Services tax is the actual location where the individual taxpayer works. It is not based on where the headquarters of the employer is located or where the payroll checks are prepared.

If a taxpayer works in more than one political subdivision during the tax year and is subject to more than one Emergency Municipal Services tax, the Act establishes priorities of liability. The situs of the tax is the place, or places of employment; therefore no taxing district may levy this tax as though it were a kind of per capita tax. It is intended to be a tax on persons gainfully employed. Priorities for collection of the EMST are as follows:

1.      The political subdivision in which a person maintains his principle office or where he is principally employed.

2.      The political subdivision in which a person resides and works if the political subdivision of residence imposes the tax.

3.      The political subdivision in which a person is employed, which imposes the tax, and which is nearest that person’s home. The place of employment is to be determined as of the day the taxpayer first becomes subject to tax during the calendar year.

      The legislative intent as expressed in the law is that no person is to pay more than $52 in any calendar year for EMST regardless of the number of political subdivisions levying the tax where the person may be employed during a calendar year. A tax receipt showing prior payments must be accepted by all other political subdivisions.

Withholding