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TAX DESCRIPTIONS

WHO IS TAXED: All owners of real estate located within the City and School District. The market value of the property is determined by the Allegheny County Office of Property Assessment. The taxes are calculated by applying the millage rate to the assessed value.

DISCOUNTS: Taxpayers may take a 2% discount on either of the following if taxes are paid by February 10th:

* The total annual tax due or,

* The first installment of tax due.       

TAX PAYMENT DUE DATES:

* Last day of February for 1st installment or the annual amount at gross

* April 30th for 2nd installment

* July 31st for 3rd installment

If no payment is made by the last day of February or if less than the entire first installment amount is paid by the last day of February, the entire year’s taxes become due and payable in full and incur interest charges from March 1st.

Tax bills are mailed in January. Further installment bills are mailed in April and July.

If you have any questions please call 412-255-2525 or visit

Pittsburgh Code Reference Chapter: 263

First Levied: 1816

Realty Transfer is tax collected by the county.

WHO IS TAXED? Every person (natural, association, and corporation) that makes, executes, delivers, accepts, or presents for recording a document which represents the transfer of property.

WHAT IS TAXED? The transfer tax is a tax upon the transaction involving the transfer of title to real estate. The transfer tax is imposed on all transactions that result in a transfer, for consideration, of a beneficial interest in real estate that is located within the city of Pittsburgh and/or School District of Pittsburgh limits.

TAX RATES: 2% City of Pittsburgh; 1% School District of Pittsburgh; 1% Commonwealth of Pennsylvania

COMMON EXCLUSIONS: Transfer to certain relatives, transfer between gov’t and instrumentalities, transfer to trustees for benefit of children, correctional deeds without consideration.

COMMON DEDUCTIONS: NONE

COMMON CREDITS: Real Estate agents or brokers can claim a deed transfer tax credit when the property was taken in trade for another property, but not in excess of the tax due.

NOTES: In Oct. 2005, the City and School District adopted the provisions of the Commonwealth of Pennsylvania Realty Transfer Tax (72 PS/8101-C et seq.) In addition the Commonwealth is authorized to act on behalf of the City and School District to enforce the collection of this tax. This tax is collected by realty transfer stamps that are issued by the Allegheny County Real Estate department, Recorder of Deeds (412-350-4226). The tax collected is then remitted to the City Treasurer. Pittsburgh Code Chapters 255 & 256

Earned Income tax - Individual is tax is collected by Jordan Tax Service

The earned income tax (EIT) is commonly referred to as the wage tax. Although Wages are the most common source of income taxed, wages are not the only source taxed. This tax is collected by Jordan Tax Services.

They can be contacted at 412-345-7966 or jts@jordantax.com.

WHO IS TAXED?  The tax is applied to people who earn income and/or profits and are CIty and School District residents. Residents pay 1% city tax and 2% school tax for a total of 3%. Non-Pennsylvania residents who work within the City pay 1%. Mt. Oliver Borough residents pay the School Earned Income Tax of 2% to the city which acts as the tax collector for the School District. Mt. Oliver residents must also file directly with the Mt. Oliver Borough tax office to report the borough Earned Income Tax.

WHAT IS TAXED? Wages, salaries, tips compensation that is earned, bonuses, stock options, covenant not to compete, other incentives, net profit from businesses or professions. The definition of compensation that applies for the Commonwealth of Pennsylvania is identical for the City.

COMMON EXCLUSIONS: Interest, dividends, active duty pay from the armed forces, pensions, social security, and capital gains.

COMMON DEDUCTIONS: All expenses that are allowed on the State of Pennsylvania UE form.

COMMON CREDITS: Up to 1% of income taxes paid to a municipality in another state or to another state and not claimed on the EIT. This credit applies to the city tax only.

FORMS USED:

Self-employed individuals make quarterly payments using forms from Jordan Tax Services. These forms can be found at http://www.jordantax/Act32/EmployerForms.html

Due dates are:          

1st quarter due April 30

 2nd quarter due July 31

3rd quarter due Oct 31

4th quarter due Jan 31

If a person is employed for wages and has the EIT withheld by his/her employer, but also has self-employment income, estimates must be filed for the self-employment income.

Information on filing EIT forms - 412-345-7966

Earned Income Tax - Employer Withholding is a  tax is collected by Jordan Tax Service

WHAT IS TAXED?

Under Pennsylvania Earned Income Tax law, all residents of the City of Pittsburgh must have three (3%) percent of their wages withheld from their pay as Earned Income Tax. This amount is to be remitted to Jordan Tax Services. This applies whether the employer is located within or outside the City of Pittsburgh. The determining factor is the residency of the employee, not the location of the employer.

If insufficient amounts are withheld by employers, City residents are required to pay the difference when EIT tax returns are filed with Jordan Tax Services. Jordan Tax Services is the agent for EIT Tax collection for the Allegheny County Central Tax District.

TAX RATE: City of Pittsburgh residential; City 1%, School district 2%. 3% Total

Jordan Tax Services can be contacted at 412-345-7966 or jts@jordantax.com.

Local Services Tax is a tax is collected by the City

WHO IS TAXED? Every individual employed or self-employed within the City of Pittsburgh. Employers are required to withhold the tax from the earnings of their employees, but the employees are not relieved of liability until the tax is paid. If not paid via withholding, the employee must pay the tax directly to the City Treasurer. The $52 is to be deducted evenly from pay checks throughout the year.

EXEMPTIONS: Upfront exemptions include - when the total earned income from all sources within Pittsburgh is less than $12,000, the employee is on active duty, or the employee is an honorably discharged veteran with 100% service-connected-disability. The employee must file an exemption certificate with their employer which can be found at www.pittsburghpa.gov/finance/tax-forms.

COMMON CREDITS: Pennsylvania law limits total payment by one person to a maximum of $52 per year, regardless of the number of employees in the year.

EMPLOYEE REFUND: An employee whose total income was less than $12,000 can apply for a refund of $52 (or the amount withheld the following year using the Local Services Refund form which can also be found www.pittsburghpa.gov.finance/tax-forms.

EMPLOYER WITHHOLDING QUARTERLY: The first quarter is due April 30. Quarterly filings are due by the last day of the month following the close of the quarter. Employers must submit, on a CD, a year end summary of employee name, SSN, and the total amount paid for the year with the 4th quarter payment. This year-end record layout can be viewed at www.pittsburghpa.gov/finance/tax-forms - click on LOCAL SERVICES TAX RECORD LAYOUT

Payroll Expense Tax is tax is collected by the City

WHO IS TAXED? All persons that engage, hire, employ, or contract with one or more individuals, as employees, to perform work or render services within the City of Pittsburgh. The Payroll Tax is computed on the employer’s payroll expense and on the net earning distribution of sole proprietors, individuals, partnerships, associations, joint ventures, or other entities that perform work, provide service, or make sales within the City of Pittsburgh. You do not need to be located in the City of Pittsburgh to be subject to this tax.

WHAT IS TAXED? One hundred percent of the payroll expense is attributable to the City of Pittsburgh for employees who perform work or render services exclusively in the City of Pittsburgh. One hundred percent of the net distributions are attributable to the City of Pittsburgh for person (s) who have net income from sales or services rendered exclusively in the City of Pittsburgh.

For employers whose employees perform work or render services partly within and partly outside of the City of Pittsburgh, the method of computing their payroll expense attributable to the City of Pittsburgh is to use the percentage of total number of working hours employed within the City of Pittsburgh compared to the total number of hours employed (within and outside) the City for each individual employee.

Persons who have net income distributions generated by sales or services partly within or outside the City of Pittsburgh shall report on the net distributions or sale or services within the City. Where it is impractical to determine the exact net distribution, an apportionment formula may be used. Any formula so established will be subject to review and correction by the City of Pittsburgh Finance Department. The data supporting the formula must be maintained for at least 3 years as part of office records for audit and review purposes.

TAX RATE: 5 ½ Mills (.0055)

PAYROLL EXPENSE DEFINED AS: The total compensation paid, including salaries wages, net distributions, commissions, bonuses, stock options, and other compensation to all individuals (who during any work year) perform work or render services in whole or in part in the City of Pittsburgh. Employee contributions such as deductions resulting from employee election, whether deferred or otherwise, qualified cash or deferred arrangements (under section 401 (K) of the Internal Revenue Code) must be reported as taxable. Compensation meeting the definition of the earned income would be part of the Payroll Expense Tax. The Payroll Expense Tax is on gross payroll. Employers’ portions of the federal and state payroll taxes, health insurance, pension plans, etc., are not taxable.

COMMON EXCLUSIONS: A charitable organization, shall calculate the tax that would otherwise be attributable to the City of Pittsburgh and file a return, but shall only pay the tax on that portion of its payroll expense attributable to business activity for which a tax may be imposed pursuant to Section 511 of the Internal Revenue Code. If the charity has purchased or is operating branch, affiliates, subsidiaries, whether or not the employees are leased or placed under the auspices of the charities umbrella or parent organization.

FILING DATES: The Payroll expense Tax is to be paid as follows:

1st Quarter; Calculated on payroll expense of January, February, and March; Due May 31st

2nd Quarter; Calculated on payroll expense of April May, June, of the current year; Due August 31st

3rd Quarter; Calculated on payroll expense of July, August, September of the current year; Due November 30th

4th Quarter; Calculated on payroll expense of October, November, December, of the current year; Due February 28th of the following year.

TAX FORM: ET-1

Pittsburgh Code Reference: Ch. 258

For new business registration call 412-255-2543

For additional forms have your city account number ready and call 412-255-2508

First Levied: 2005

WHO IS TAXED? Any foundation, partnership, corporation, or other type of organization operating under a nonprofit charter or organized as a nonprofit entity which provides service to the general public or to a selected or limited number therof. Entities covered include hospitals, libraries, universities, colleges, “schools other than secondary or elementary”, fraternal organizations, nursing homes veteran organizations, health organizations, day care providers, and other organizations which typically have IRS status 501(C)(3).

WHAT IS TAXED? Gross income

COMMON EXCLUSIONS: Any activity conducted by a nonprofit organization, where the receipts in their entirety go to the organization and the activity is conducted by unpaid volunteers. Taxes unrelated to a specific service. Any taxes collected as an agent for the United States of America, Commonwealth of Pennsylvania, or the City of Pittsburgh.

COMMON DEDUCTIONS: None

COMMON CREDITS: $20,000.00

FILING DEADLINE: Annual filing deadline is April 15th. Deadline for new businesses is within forty (40) days of opening.

Pittsburgh Code: Chapter 247

For new business registration call 412-255-2543

For additional forms have your city account number ready and call 412-255-2508

For information on completing a return, call 412-255-2508

Amusement Tax is tax is collected by the City

WHO IS TAXED? Patrons of any type of event that offers entertainment or allows patrons to engage in the entertainment.

WHAT IS TAXED? Gross admissions. The tax rate is 5 percent (5%) however the reciprocal of .04762 is used as the multiplicand. I.e. - if $10.00 is the total charged for admission (which already includes the tax) is multiplied by . 04762 we get $.048, which is the tax charged per ticket.

  1. If a separate admission charge is not collected but the admission charge is included in the amount paid for food and drink and amusement tax is 10% of 5% of the amount paid for food and drink.
  2. When amusement is conducted at a social club or fraternal organization which also furnishes entertainment for which a separate charge is not made, the established price shall be 50% of gross receipts. The amusement tax will be 5% of 50% or 2.5% of gross sales.
  3. Where admission is obtained solely or partly by a contribution or donation, and there is no established price, and not less than 75% of the proceeds go directly to benefit a charitable organization, then the admission is deemed to be 25% of the amount collected. The amusement tax is 5% of 25% or 1.25% of the collections.

COMMON EXEMPTIONS:  A private annual event of a non-profit organization where admission only covers the expenses and the affair is limited to its members and their guests. Free admission tickets given to children under 12, disabled veterans, and members of the Armed Services on active duty and in uniform. Otherwise taxes must be paid on free admission/tickets if persons admitted free to a taxable event where there is an established price.

COMMON CREDITS: None

FILING DATE: Filing is required by the 15th day of the month following the month during which the event is held.

NOTES: In addition to the amusement tax, every producer must secure an Amusement Tax Permit from the Office of Permits, Licenses and Inspections at 412-255-2558 (prior to the event).

TAX FORM: AT

For additional information call 412-255-2320

Pittsburgh Code Reference: Chapter 241

Tax First Levied: 1947

Parking Tax is a tax is collected by the City

WHO IS TAXED? Patrons of any parking facility within the City of Pittsburgh whether open to the public or not, to whom a fee is charged for parking or storing of vehicles.

WHAT IS TAXED? Gross parking charges. The operator acts as an agent for the City and collects tax from the patron.

TAX RATE: 37.5% or .27273 of gross parking rate

COMMON EXCLUSIONS: Parking associated with the occupancy of a residence.

COMMON CREDITS: NONE

FILING DATE: Filing is required by the 15th of each month for the month proceeding. Registration of each separate parking lot or facility and each operator is required prior to beginning business activity. Tax returns must be filed even if no tax is due.

TAX FORM: PT

In addition to the parking tax, every operator must secure a license from the Bureau of Permits, Licenses, and Inspections. Call 412-255-2175 for additional license information or visit the website www.pittsburghpa.gov/pli  

For additional information call 412-255-2175

Pittsburgh Code Reference: Chapter 253

First Levied: 1962

WHO HAS TO PAY THE FEE?  Every employer who employs one or more non-resident employees who earn compensation as the result of services performed at a publically funded facility within the city, to engage in an athletic event or otherwise render a performance for which a non-resident receives remuneration is required to withhold and remit the fee to the treasurer. In the event the employer fails, refuses, or neglects to withhold or remit the fee for any portion thereof, the employee shall be personally liable for payment of the fee and any applicable penalty. Any other user that engages in an event held in a public funded facility within Pittsburgh, for which they receive compensation, such as entertainers or performers, who are not residents of the city are also subject to the usage fee.

WHAT THE FEE IS BASED ON: Earned income. Fee rate is 3%.

EXAMPLES OF WHAT IS SUBJECT TO THIS FEE: Any player or employee of a sports team who engages in an athletic event in Pittsburgh. The compensation attributable to Pittsburgh is determined by using a ration of games in Pittsburgh to the total number of games played by the team. Other persons such as entertainers or performers who engage in an event in Pittsburgh for which they are compensated. The gross compensation attributable to Pittsburgh is determined by the specific amount received for each performance.

COMMON EXCLUSIONS: Residents of Pittsburgh

COMMON DEDUCTIONS: None

COMMON CREDITS: None

FILING DEADLINE: Quarterly filings are due by the lst day of the month following the close of the quarter.

Pittsburgh Code Reference: Chapter 271

For additional information call 412-255-8919

For additional forms have your City account number ready and call 412-255-2424