Frequently Asked Questions

 

What is a ACT 199 – Local Services Tax?

An ACT 199 Local Services Tax is a tax levied by a jurisdiction that is under a state authorized Distressed Community enactment (ACT 47 and/or ACT 205) and has been granted approval by the courts to raise their tax rate above $52.00. It is applied to individuals who are employed in the named municipality.

Does the ACT 199 LST replace the current LST Tax in place?

Yes, the ACT 199 Local Services Tax does replace the current Local Services Tax and will remain in place until removed by the courts or repealed by the municipality.

Who must pay the ACT 199 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 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.

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.  If the employee will make in excess of the income exemption ($15,600) required under ACT 199, the employer will withhold the difference between the primary work location rate and the rate in place in the ACT 199 area.

Will I have to pay up to $52.00 per each employer?

For individuals employed in an ACT 199 area, the total LST paid by an individual in a calendar year is limited to maximum rate enacted by that jurisdiction (Maximum is $156.00), 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 was deducted. Send a copy of the LST refund request form and supporting documentation to your local tax office. Click here to download a Refund Application.

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 $15,600.00. 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. Click here to download an Act 199 Exemption Certificate.