Taxation

Taxation

Corporate Income Tax/Franchise Tax State  
Rate (range) 9.99%
Capital Stock .45 mils
Federal Taxes Deductible No
Accelerated Depreciation Permitted (Yes or No) Yes – with limitations
Personal Income Tax State Local
Earned Income 3.07%
Unearned Income (e.g. Dividend) 3.07%
Local Services Tax (Paid by Employee) Rate Basis
City Residents $52 Per capita
Local Wage Tax (Withheld by Employer) Rate Basis
Reading City Residents 3.6% Gross wages
Non-City Residents Working in City of Reading 1.3% Gross wages
Non-City Residents 1.0% Gross wages
Reading City Gross Receipts Tax Rate by Type of Business Rate Basis
A) Service 0.225% Gross Volume
B) Commissions 0.225% Gross Volume
C) Rentals 0.225% Gross Volume
D) Wholesale 0.100% Gross Volume
E) Retail 0.150% Gross Volume
Sales Tax on Purchases
State 6%
Local 0%
Total 6%
Utility State Sales Tax Rate / Tax Surcharge / Gross Receipts Tax Sales Tax Surcharge
Electric Power 6% Varies by utility
Natural Gas 6% Varies by utility
Gross Receipts
Transportation 6% 5% or 50 mills
Local 6% 5% or 50 mills
Long Distance In State 6% 5% or 50 mills
Long Distance Out of State 6% 5% or 50 mills
Machinery & Equipment Subject to Sales/Use Tax
Production No
Non-Production Yes
Pollution Control No
Office Furniture/Fixtures/Equipment Yes
Sales/Use Tax (Yes or No) on
Office Building Construction Materials Yes
Industrial Building Construction Materials Yes
Manufacturers’ Raw Materials No
Standard Software Yes
Custom Software No
Intangible Property
Describe What is Subject to Tax Rate (e.g. Accounts N/A
Receivable, Capital Stock)
Basis & Rate N/A
Stock Bond Transaction Fee (Yes or No & its Yes Rate) No
Real Property Tax Rates for Jurisdictions in Berks County
Local Millage – Range 0.0003600 to 0.0143340
County Millage 0.006935
School Millage – Range 0.0164600 to 0.0323500
Common Level Ratio (%) .763
Personal Property Tax Rates per $100 A
City Millage None
County Millage None
School Millage None
Special District Millage None
Assessment Ratio (%) None
Effective Rate per $100 None
State Property Tax Effective Rate per $100
Real Property None
Personal Property (machinery/equipment) None
Property Tax After Core Income Tax
Rate None
Basis & Rate None
Property Tax After Core Income Tax & State Excise Tax
Taxable Items None
Rate for Each Item None
Subject to Personal Property Tax
Production Machinery & Equipment None
Non Production Machinery & Equipment None
Pollution Control None
Inventory None
Raw Materials None
Work in Progress None
Finished Goods None
Freeport Legislation None
Applicable to Warehousing None
Applicable to Manufacturing None
Goods Stored in a Public Warehouse None
Office Furniture-Fixtures None
Computer Equipment None
Workstations None
Telephones None
Furniture None
Company Vehicles None
Standard Software None
Custom Software None

Source: GREP, Commonwealth, City of Reading, Berks County

Updated: 10/24/17