Best Tax Attorneys in Reading

FAQs

• Where does the Tax Court hold trial sessions closest to Reading, Pennsylvania?

  The closest location to Reading, where the Tax Courts holds trial sessions, is in Philadelphia. The trial sessions take place at the U.S. Custom House at 200 Chestnut Street, Philadelphia, PA 19106.

• Where is the low-income taxpayer clinic that is closest to Reading, Pennsylvania?

  The closest low-income taxpayer clinic to Reading is the Temple Law School LITC at 1719 North Broad Street, Philadelphia, PA 19122. Another low-income taxpayer clinic based in Philadelphia is the Philadelphia Legal Assistance Taxpayer Support Clinic, located at 718 Arch Street, Suite 300N, Philadelphia, PA 19106.

• What is the new non-resident withholding rate for taxpayers commuting to work in Reading?

  Effective July 1st, 2022, the City of Reading has reduced its non-resident withholding rate for taxpayers commuting to work. The new withholding rate is 1%, as stated in Bill No. 89-2021. Organizations employing individuals who live outside the City but commute to work within Reading must ensure that they withhold local earned income tax at this reduced rate of 1%. Failure to comply may result in fines and penalties.

• Are businesses in Reading required to pay any taxes besides property tax?

  Yes, besides property tax, businesses in Reading have additional tax obligations. Employees within the city must pay an EMS Tax of $52 annually, deducted by employers and remitted to the city within four months of their start date. Moreover, all work conducted in Reading is subject to the Business Privilege Tax, calculated based on Gross Receipts linked to the city's activities, at a rate of 2-1/4 mils (.00225). A prompt payment discount of 2% is available.

• What are the methods for collecting personal income taxes in Reading?

  The collection of personal income taxes in Reading involves three main methods. Individuals are required to make estimated and final payments, while employers withhold taxes from employees' income. In addition, partnerships and S corporations estimate and withhold taxes from non-resident partners or shareholders. These methods ensure the efficient and comprehensive collection of personal income taxes within the city.

• When are property taxes due in Reading, and what happens if they are not paid on time?

  In Reading, property taxes are due in May and June. If unpaid by July 1, the city adds a 10% penalty to the total amount. Additionally, interest at an annual rate of 10% starts accruing on the same date. Delinquencies also result in collection fees, which include attorney's fees and other expenses the city incurs. Therefore, it is beneficial for property owners to pay taxes on time to avoid these extra costs.

• How is the property tax calculated for a piece of land that lies both inside and outside the city limits of Reading?

  When a property is positioned in and out of Reading's city boundaries, the tax is computed based on the property value that falls within the city. An affidavit or certificate of value supports this value division. However, this tax shouldn't dip below the maximum value as per the local tax assessment for the section of the property located in Reading.