Frequently Asked Questions
What is the Local Services Tax?
The Local Services Tax is a tax levied on individuals who are employed in municipalities or school districts that have enacted the tax.
Does the LST replace the EMS Tax?
Yes, the Local Services Tax does replace the Emergency and Municipal Services Tax.
Who must pay the Local Services Tax?
The Local Services Tax shall be collected through payroll deductions from all employees. For self-employed individuals, see below.
Are LST Deductions based on where I live or where I am employed?
The Local Services Tax shall be deducted for the municipality or school district in which you are employed.
How and when is the tax deducted from my pay?
If the enacted LST rate exceeds $10, the tax must be withheld on a prorated basis determined by the number of pay periods established by an employer for a calendar year. If the LST rate is $10 or less, the tax may be collected in a lump sum.
What If I am a self employed individual?
Self-employed individuals must pay their own tax on a quarterly basis, if the rate of tax exceeds $10. If the rate of tax is $10 or less, the self-employed individual may be required to pay their own tax in a lump sum payment.
Am I required to file quarterly?
Per Act 7, anyone with a tax rate greater than $10.00 must file quarterly. However, if you choose to pay the full amount with your first quarter filing, that also will be acceptable.
What If I have more than one job?
In the event a person is engaged in more than one occupation or taxing district the collection of such tax shall be the taxing district in which a person is principally employed.
Will I have to pay up to $52.00 per each employer?
The total LST paid by an individual in a calendar year is limited to $52.00, regardless of the number of taxing districts in which an individual works during the year.
How can I request a refund?
A refund can be requested if employed in more than one taxing district and more than the maximum of $52.00 was deducted. Send a copy of the LST refund request form and supporting documentation to your local tax office. Click here to download an LST Refund Request form.
Is there a low income exemption?
If you are employed in an area that has an LST rate that exceeds $10, there is a mandatory income exemption for those whose total earned income and/or net profits are less than $12,000.00. Please be advised that the same income exemption may not apply for the school district portion of the tax and may result in a reduced refund.
If you believe you will meet the exemption requirement, you must complete and return to us the Exemption Certificate. Click here to download the form.