The rate for the Borough of Churchill is $52.00 annually.

Employer Remittance of Collected Tax and Reporting of Collection Detail

Self-Employed Individuals

Exemptions to the Local Services Tax

 The law requires municipalities who levy the Local Services Tax at a rate exceeding $10.00 to exempt any person from the Local Services Tax whose total earned income and net profits from all sources within the political subdivision is less than $12,000 for the calendar year in which the Local Services Tax is levied.

 Each political subdivision levying the Local Services Tax shall also exempt the following persons from the Local Services Tax:

(1)        Any person who is an honorably discharged veteran with 100% service-connected disability.

 (2)               Any person on active duty.

 A person seeking to claim an exemption from the Local Services Tax must annually file an exemption certificate with the Borough of Churchill’s office and file a copy of the certificate with the person’s employer affirming that the person reasonably expects to receive earned income and net profits from all sources of an amount less than $12,000 in the calendar year for which the exemption certificate is filed. 

INFORMATION IS AVAILABLE ON THE PENNSYLVANIA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT (DCED) WEBSITE AT www.newpa.com  (FOLLOW THE MENU STEPS – LOCAL GOVERNMENT SERVICES, LOCAL TAX INFO., LOCAL SERVICES TAX.

 The exemption certificate shall have attached to it a copy of all the employee’s last pay stubs or W-2 forms from employment for the year prior to the fiscal year for which the employee is requesting to be exempted from the Local Services Tax.

 Upon receipt of the exemption certificate, the employer shall not withhold the tax from the person during the calendar or remainder of the calendar year for which the exemption certificate applies.  With respect to a person who claimed an exemption from the Local Services Tax, upon notification to an employer by the person that the person has received earned income and net profits from all sources equal to or in excess of $12,000 in that calendar year, an employer shall withhold the Local Services Tax from the person as follows:

If a person who claimed an exemption for a given calendar year from the Local Services Tax becomes subject to the tax for the calendar year, the employer shall withhold the tax for the remainder of that calendar year.

 The employer shall withhold from the person, for the first payroll period after receipt of the notification under the above paragraph, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption certificate filed by the person, plus the per payroll amount due for that first payroll period.

 The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld for other employees.

 In the event the employment of a person subject to withholding Local Services Tax under this exception is severed in that calendar year, the person shall be liable for any outstanding balance of tax due and the political subdivision levying the tax may pursue collection under this act.

 Employers shall be responsible for retaining a copy of all exemption certificates filed by employees within a given calendar year for a minimum of three (3) years.  Employers who have failed to withhold the Local Services Tax from an employee or employees, and do not have copies of the employee exemption certificate or certificates, will be held responsible for the payment of the Local Services Tax as if the tax had been originally levied against the employer.

Download Local Service Tax (LST) Forms