I recently moved to Pennsylvania. I do not live within the city limits of Harrisburg, but I work in Harrisburg. Recently the Harrisburg City Council voted to increase the tax rate of people who work in Harrisburg. I didn't even know I was being taxed by a city I do not live in and have no voting rights in--I cannot vote for mayor or city council members, yet Harrisburg can tax me because I work within the city limits??? Isn't this taxation without representation?
Yes, it is "legal," as the other attorneys have stated. It is technically a wage tax imposed on people "working" within the city. It is similar to working in another state and earning income. If that state has a state income tax, you would have to pay the tax to the state where you worked and a state income tax in your home state on your overall earnings. There may be an offset or credit, but is all likelihood, you would pay two taxes. Generally, taxes are withheld in the location where you actually work. For example, if you live in PA but work in NJ, your taxes will be withheld by your employer in NJ. The problem is that PA also has a state income tax and that tax is generally not withheld by the NJ employer; so, you are responsible for paying the PA state tax, as well. People in this circumstance should check with their accountant or take a close look at the tax rules so they can make estimated quarterly payments in their home state to avoid any penalties. The City Wage or EIT tax is similar in that your employer should be withholding the City Wage tax and making the payment for you. Here is a link to a website where you can obtain information regarding specific taxes levied in a municipality by entering the name of the municipality: http://munstats.pa.gov/Reports/ReportInformation2.aspx?report=EitWithCollector_Dyn_Excel&type=O
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It is allowed. Philadelphia has been taxing residents and non-residents for years. You may be entitled to an offsetting credit from your own township if they charge an earnings tax.
Yes, they certainly can, as was mentioned this is common in Philadelphia and many other cities across the country.
This is not legal advice nor intended to create an attorney-client relationship. The information provided here is informational in nature only. This attorney may not be licensed in the jurisdiction which you have a question about so the answer could be only general in nature.
As others have pointed out, yes they can.
Hope this helps. If you think this post was helpful, please check the answer was a good answer tab below. Thanks. Mr. Geffen is licensed to practice law throughout the state of Texas with an office in Dallas. He is authorized to handle IRS matters throughout the United States and is licensed to practice in US Tax Court as well as The Court of Claims. This answer is provided as a public service and as a general response to a general question, it is not meant, and should not be relied upon as specific legal advice, nor does it create an attorney-client relationship.
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