Frequently Asked Questions
About the Local Services Tax
1. Local Services Tax (LST) is replacing the Emergency and Municipal Services Tax (EMST).
2. Effective January 1, 2008, the name of the tax will change to Local Services Tax.
3. The tax, for tax year 2008 forward, becomes a weekly payroll deduction if the total LST rate enacted exceeds $10.00. The tax will now be withheld from the employee each time they are paid on a prorated basis determined by the number of payroll periods in a calendar year. If the total LST rate enacted is $10.00 or less, the tax may be collected in a lump sum.
4. The employee will only be required to pay the tax for the period in which they are employed within a political subdivision which imposes the tax.
5. If the total LST rate enacted exceeds $10.00, the Act requires that all jurisdictions exempt individuals with incomes within their jurisdictions of less than $12,000. Employees will have the right to complete a Local Services Tax Exemption Certificate.
If the total LST rate enacted is $10.00 or less, the jurisdiction may choose to exempt individuals with incomes within their jurisdictions of less than $12,000.
Please be advised that the same income exemption may not apply to the school district portion of the tax.
6. A person who served in any war or armed conflict in which the United States was engaged, received an honorable discharge and as a result of such service was left blind, a paraplegic, a double or quadruple amputee or has a service connected disability declared by the United States Veterans Administration (or its successor) to be a total one hundred percent permanent disability is exempt from the LST. Likewise, any person who serves as a member of a reserve component of the armed forces and is called to active duty during the tax year is exempt from the tax.