Businesses and residents in Bucks County are subject to taxes on the local level (municipal, county, & school district), the Commonwealth of Pennsylvania, and the Federal government.
Local tax revenue is primarily derived from local real estate taxes, although municipal governments may also collect a variety of local taxes or fees.
Real Estate Taxes are determined by multiplying the millage rate which is set by the Taxing Authority (Local Government, County Government or School Board ) X the assessment (assessment by Bucks County Board of Assessment ) for the property in question. The Bucks County Board of Assessment uses an assessment ratio formula (currently 4.4%) determined by the Pennsylvania State Taxation Equalization Board. Contact the Board of Assessment at (215) 348-6219 for more information about how property assessments are derived.
|Township or Borough||10.00|
Total Millage 414.00 X Assessment of $15,000 = .41400 x $15,000 = $6,210.00 Total Annual Real Estate Taxes
Personal Property Taxes, Business Use Taxes and certain other taxes levied by a municipality on business and individuals are computed in a variety of ways. We recommend contacting the municipality directly for these taxes.
For complete information on business and personal taxes collected by the Commonwealth of Pennsylvania, please visit www.revenue.state.pa.us.
Special Tax Incentives exist for companies relocating to or expanding in the Keystone Opportunity Zones, Enterprise Zone of Bucks County, or a LERTA tax-abatement district.
Keystone Opportunity Zone (KOZ) Program
Keystone Opportunity Zone (KOZ) Program
Keystone Opportunity Zones (KOZ) and Keystone Opportunity Expansion Zones (KOEZ) are geographic areas; that are established by parcel numbers with greatly reduced state and local taxes. KOZs reflect a true sense of partnership among state and local taxing bodies, school districts; economic development agencies and community-based organizations in eliminating specific state and local taxes within specific underdeveloped and underutilized areas, communities within Pennsylvania are experiencing economic growth and investment.
The tax liability binding ordinances and resolutions were passed granting the waiver, abatement or exemption of certain state and local taxes. Depending on the situation, the tax burden maybe reduced to zero through exemptions, deductions, abatements and credits for the following:
- State Taxes: Corporate Net Income Taxes, Capital Stock Foreign Franchise Tax, Personal Income Tax, Sales Use Tax, Bank Shares and Trust Company Shares Tax, Alternative Bank and Trust Company Shares Tax, Mutual Thrift Institutions Tax, Insurance Premiums Tax
- Local Taxes: Earned Income/Net Profits Tax, Business Gross Receipts, Business Occupancy, Business Privilege and Mercantile Taxes, Local Real Property Tax, Sales and Use Tax
In Bucks County
The tax benefits available under KOZ and KOEZ program were available as of January 1, 1999; January 1, 2010 and August 31, 2012 respectfully, and may be available through December 31, 2019 and December 31, 2022 depending on the expiration date that was imposed by the KOZ Subzone or KOEZ Expansion Subzone. The goal of the KOZ/KOEZ is to revive economically distressed urban and rural communities with one of the most powerful market-based incentives eliminating taxes.
Bucks County has three areas with KOZ or KOEZ status. Contact BCEDC for more details on the availability of these sites in Bucks County.
Application for KOZ renewal click here.
Enterprise Zone Tax Credit Program
The Enterprise Zone Tax Credit is competitively awarded by the Commonwealth of Pennsylvania. Eligible companies are businesses located in the state- and locally-designated Enterprise Zone, which make improvements to real property with the Zone. The Commonwealth may award up to $250,000 of tax credits per project, per company, per year. Credits are used to offset the company's Pennsylvania tax liability. Applications to the Commonwealth for this program are administered by the Enterprise Zone Coordinator, within the County's Redevelopment Authority.
LERTA Property Tax Abatement Program
The Local Economic Revitalization Tax Assistance (LERTA) Program provides a graduated abatement on real estate taxes for companies that make improvements to property within the LERTA district. As an example of a typical LERTA project, a building is built on a vacant parcel of ground (which has a baseline tax assessment of "X"). As a result of the improvements, the real estate tax assessment on the parcel of ground will now include the new building, and the assessment is increased from "X" to "Y". The LERTA program provides an abatement on the difference between "X" and "Y" over a period of 5 - 10 years. At the end of the abatement period, the property owner pays the full amount of taxes due on the improved property.