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Earned Income/Local Services Tax
The Occupation Tax is authorized by the Local Tax enabling Act, and is levied on allresidents 18 years of age and older. It is based on a person’s job title, NOT INCOME.Currently, the tax is levied by Newville Borough.Cumberland County’s Assessment schedule lists approximately 120 titles, each of whichhas been assigned an assessment value ranging from 0 to 1,000 in increments of 100.The amount of tax is computed by multiplying the tax rate set by the taxing body timesthe assessment value of the job title. For example, if your job title carries an assessmentvalue of 300, and your municipality has set a tax rate of 15%, your occupation taxamount would be .15 x 300 which equals $45.
It is the responsibility of the individual taxpayer to ensure that he or she is on the taxrolls. Anyone who fails to file and pay occupation taxes shall be retroactively assessedand may be immediately billed at the applicable penalty, face or discount amount by theappropriate taxing bodies.
The deadline for correction or appeal of one’s job title is ninety (90) days from the dateof the tax bill.Four School Districts in the County, Big Spring, Camp Hill, Shippensburg and WestShore levy a flat tax called a Residency Tax. This tax is either $5.00 or $10.00
Local Services Tax
Act 7 of 2007 amended the Local Tax Enabling Act, Act 511 of 1965, to permitmunicipalities and school district to impose, on persons employed within the jurisdiction,a combined Local Services Tax (LST) of up to a maximum of $52 a year. Municipalitiesmust use funds from an LST for police, fire or emergency services; road construction ormaintenance; or the reduction of property taxes. Additionally, municipalities must use atleast 25% of the revenues for emergency services. This limitation does not apply to theschool district. The situs for the LST is the actual location where the individual taxpayerworks. No person should pay more that $52 a year, regardless of the number of politicaljurisdictions in which they worked during that year. Contact the taxing municipality andschool district where you work to find out if they have adopted the LST.
I. The March Bill
A. You will receive at this time a Personal Tax Notice which will include the following:
1. County Per Capita Tax
2. Municipal Per Capita Tax
3. Occupation Tax if you reside in Lower Allen Township, Lower Frankford Township, Newburg, Newville or Shippensburg Borough. This list of municipalities may change at any time.
B. If you own real estate, you will also receive a separate Real Estate Tax Bill which includes the following:
1. County Real Estate Tax
2. Municipal Real Estate Tax
II. The July Bill
A. You will receive at this time a Personal Tax Notice which may include the following:
1. School District Per Capita Tax
2. School District Residency Tax
B. If you own real estate, you will also receive a separate Real Estate Tax Bill which will show the amount of tax owed to your school district.
Please follow the links to see a Tax Collector List and a Millage Rate page.