Reading Chapter

Reading Chapter’s Local Taxation and Government Committee Meets with the Berks EIT Bureau

PICPA members Rose Lamaestra and Joe Pancerella, both members of the Reading Chapters’s Local Taxation and Government Committee, met with Rick Weisser, Berks E.I.T executive director, and Ron Beard, tax administrator, to discuss the issues that affect both CPAs and tax collectors.  

First they discussed whether Berks requires filers to use their earned income tax form or if a generic form may be used.  Weisser stated the No. 1 reason to use their EIT form is that it contains an account number that is necessary for processing.  Sometimes an individual or tax preparer using a generic form will not transfer the account number to that document.  This causes extra work and increases the possibility of transcription errors.

Other topics discussed included electronic submission. Credit card payments are accepted, however the rounding of numbers is not acceptable.  Improper rounding creates errors, so it is necessary to include the cents on the return.

Local Services Tax (formerly the occupational privilege or emergency municipal services tax)
Effective Jan. 1, 2008, every municipality must pass an ordinance stating the dollar amount of the tax imposed on workers in their municipality.  If the tax exceeds $10, employers will be required to spread this tax evenly over the number of pays for the year.  There is an exemption for anyone that does not expect to earn $12,000 from an employer during that year.  Berks is updating their Web site to include the exemption form as well as the coverage areas and their applicable taxes.  Employers will receive forms in the mail and, which can be reproduced as needed.

Earned Income Tax - House Bill 1458
This bill would consolidate local taxing districts at the school district level, which would allow local districts to retain control over collection of taxes.  Berks. as well as the Pennsylvania Earned Income Tax Officers, Administrators & Collectors (PEITOAC) is in favor of this bill.

Earned Income Tax - House Bill 1550/Senate Bill 1063
These bills are similar to HB 1458, but they would consolidate taxing districts at the county level.  PEITOAC feels local municipalities and school districts would lose control over tax monies vital to the operation of their respective entities.  Further, taxes withheld by employers would be delayed reaching the proper districts since employers would be given the option of remitting taxes for all employees to one taxing district, regardless of where the employees might be employed or reside.

Berks processed 131,000 returns for the 2006 tax year.  They cover 15 school districts and 60 municipalities.  The committee appreciates their cooperation in conducting this interview.