Fifty-two dollars may not pay tuition or even some months the phone bill, but for a college student it can mean money for gas and groceries; thus, anyone would be startled to have $52 taken out of their paycheck, as many West Chester students were last week. The money was taken out for a standard tax listed as “Opt,” which, unfortunately, does not mean optional. The acronym stands for Occupational Privilege Tax, but the listing is actually out of date; it has been replaced by the Emergency Municipal Services (EMS) tax. This funds emergency efforts such as fire or medical responses.
As of last year, according to Pennsylvania state law, $52 is the maximum tax that can be withheld from any one employee. In other words, if a student or staff member pays the $52 tax in West Chester, they won’t have to pay it if they work another job in another community. If, however, a person worked in two municipalities with $10 taxes, they would still be charged both. In some cases, proof of payment of the tax may be required; any pay stub from the time the tax is withheld onwards would suffice, as it will be listed on all of them.
The web site for Berkheimer, the local tax administrator, found at www.hab-inc.com, states, “The legislative intent as expressed in the law is that no person is to pay more than $52 in any calendar year for EMST regardless of the number of political subdivisions levying the tax where the person may be employed during a calendar year.” It also explains the priority for imposition of the tax (i.e. who gets the money).
State employees are charged first where they work the most or make the most money; secondly, where they live if they work there and finally their place of work closest to their home, up to $52.00.
Not every West Chester University student or staff member is paying the tax to West Chester. This is because everything on the “Sykes side” of Rosedale Avenue, including Matlack Street offices and South Campus, are actually part of West Goshen, which is imposing the maximum tax for the first time this year. One university employee speculated that West Chester may have chosen to impose the maximum tax because the number of West Chester residents who pay property and income tax is low compared to the number of temporary workers who benefit from the emergency municipal services. These are not just employees of the university, but of other properties which are also exempt from certain taxes, such as churches and some historical sites.
Certain employees on campus work for Student Services Incorporated, whose payroll is separate. According to students, SSI was able to split the tax so that it was not taken out all at once. Unfortunately, West Chester’s software is not equipped to do this and as anyone who made the switch to the new system – which includes “mywcu,” – can attest, changing the software is not just a matter of loading a new program into a computer.
Some employees, however, may be able to get this money back when they file their taxes. In West Chester, people who make less than $1,200 per year qualify for a refund; in West Goshen, that cutoff jumps to $12,000.
The Berkheimer Tax Administrator would be best equipped to answer further questions about this tax. Contact information can be found at http:www.hab-inc.com/content/contact.htm.