Pennsylvania State and Local Tax Resources Key Terms

Pennsylvania is moving into the electronic age with its tax processes

Pennsylvania, as any other state, has various local taxes that employees and businesses find imposed on them, such as the Local Services Tax and Mercantile Tax. Attendees at a sporting event or concert are subject to an Amusement Tax. In an effort to streamline the process and make operations more efficient, Pennsylvania entered the electronic age, allowing individuals and businesses to submit tax forms and other information electronically using applications such as E-TIDES and TeleFile.

 

Local Services Tax

The Local Services Tax (LST), formerly known as the Emergency and Municipal Service Tax (EMST), is a tax levied on employees working within a municipality and/or school district and submitted to the tax collector quarterly by one's employer. Emergency services located within the municipality must receive at least 25% of the LST revenues collected. Municipalities may use the remaining monies for the Homestead and Farmstead Exclusion programs designed to provide tax relief to property owners.
Try: Refer to the NewPA website for more information on the Local Services Tax.

Mercantile Tax

The Mercantile Tax, also known as the business gross receipts tax or business privilege tax, is the tax businesses (wholesale, retail and restaurant) pay on their gross receipts for their establishment located within a taxing jurisdiction. In 1988, the Local Tax Reform Act prohibited jurisdictions imposing new mercantile taxes, but grandfathered jurisdictions currently doing so.
Try: For more information, reference the Penn State University website

Amusement tax

An amusement tax is the tax paid on admission to recreational, entertainment or amusement events such as concerts, sporting events and fairs. Amusement tax rates may vary among jurisdictions.
Try: For information on Pennsylvania’s Amusement Tax, refer to the Radnor Township website.

E-TIDES

E-TIDES is an online application that allows individuals to submit tax forms and payment pertaining to Employer Withholdings, Sales, Use and Hotel Occupancy Tax, Liquid Fuels and Fuels Tax, Corporation Taxes, and Unemployment Compensation.
Try: Refer to the E-TIDES website for a complete listing of tax form available for online submittal and payment instructions.

TeleFile

TeleFile allows individuals to submit sales tax and employer withholding information via a touch-tone telephone. Required information for submitting sales tax information over TeleFile includes an eight digit PA Sales Tax Account ID Number, a nine digit Entity ID, amount of tax due, applicable credits and banking information. Required Employer Withholding information includes an eight digit Employer Account Identification Number, a nine digit Entity ID and amount of Personal Income Tax withheld.
Try: For more information on this service, refer to the TeleFile webpage.

Tax appeals

Individuals may file a petition and submit evidence for a tax appeal electronically. A benefit of this process is that any correspondence between the applicant and the Board of Appeals is through email, therefore negating delays of missed phone calls or transmitting information through the postal service.
Try: Refer to the Board of Appeals website to review instructions of filing an appeal electronically and acceptable file formats for submitting evidence.

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