The Business Privilege Tax applies to any person engaging in any business, trade, occupation or profession in the Borough that offers services to the public. The tax due is based on the gross receipts generated by the business activity.
A $10.00 tax is due for individuals and businesses with less than $15,000 in annual gross receipts. For businesses with annual gross receipts of $15,000 or more, a $150.00 tax is due. A copy of the Federal Schedule C, Federal Tax Form 1120, or detailed Excel spreadsheet may be used to show the calculation of gross receipts.
Persons or businesses who are required to pay the Business Privilege Tax must register with Berkheimer Tax Innovation, the Borough’s tax collector for this tax. For registration or questions, please contact: Berkheimer Tax Innovations, 325-A N Pottstown Pike, Exton, PA 19341. Telephone: 610-599-3140, Monday thru Friday, 9:00 am-4: 00 pm. Website: www.hab-inc.com. A Business Privilege Tax Return must be filed with Berkheimer annually.
Local Services Tax
The Local Services Tax, previously known as EMST Tax, is paid by all individuals working within the Borough. The total Local Services Tax levied on individuals is $52 per calendar year.
Each employer doing business within the Borough is required to register with Keystone Collections Group, the Borough’s tax collector for this tax, and deduct the tax from the compensation paid to each employee who is subject to this tax.
The Earned Income Tax (EIT), commonly called a “wage tax,” is a tax on individuals’ gross wages. Borough residents who receive earned income—including salaries, wages, commissions, bonuses, incentive payments, fees, tips and/or other compensation for services rendered, whether in cash or property—are subject to the tax.
The rate of Earned Income Tax for residents of the Borough is 1.25%.
Employers doing business in the Borough are required to register with Keystone Collections Group, the Borough’s tax collector for this tax, and deduct the appropriate tax from employees’ paychecks.
Employers doing business outside the Borough who employ Borough residents also must register with Keystone and deduct the tax from the paychecks of all employees who live in the Borough. If an employer fails to deduct the tax, Borough residents who are subject to the tax must pay the tax directly to Keystone Collections Group, preferably on a quarterly basis.
Real Estate taxes are levied on all real property within the Borough of West Chester. The millage rate is 7.40.
Of this 7.40 rate, 6.96 mills is for General purposes, .29 mills is for Debt purposes and .15 mills is for the Library.
Tax bills are mailed to all property owners in February of each year.
Real Estate taxes are collected for the Borough by the Chester County Treasurer’s Office. The Chester County Treasurer’s Office can be contacted at313 West Market Street, West Chester, PA 19380. Telephone: 610-344-6000. Website: https://www.chesco.org
Covid-19 & Real Estate Taxes
On May 12, 2020 the Borough Council adopted Resolution14-2020 Waiving the Collection of Late Fees if taxes are paid in full by December 31, 2020.