Taxes

Taxation is a significant part of school finance. Use the links on the left to learn more about taxes. Below are the various types of district taxes.

Property Tax
The property tax or real estate tax is a tax that is levied on the land and buildings owned by individuals and businesses. The base for the tax is the assessed value, which is established by the county assessment office. A uniform millage rate (tax rate) is annually established by the Board of School Directors to be levied against the value of each property. One mill is equivalent to $1 of tax for each $1,000 of property. Therefore, a property with an assessment of $100,000 (as established by the county) would pay $100 for each mill. The district’s millage rate multiplied by the total assessed value for properties in the Souderton Area School District produces the potential tax revenue for the district. For individual taxpayers the millage rate multiplied by the assessed value of their property produces the owner’s tax bill (or use the tax calculator provided within this Web site). All property owners are eligible to pay their tax bill in 3 equal installments. Please contact your tax collector for more information.

Interim Real Estate Tax
The interim real estate tax is a tax on “assessed property” that was not included in the original tax mailing of July 1. Interim real estate tax bills are sent out throughout the school year for new construction/remodeling that increased a property’s assessed value but was not included with the original tax mailing. The tax bill could be the result of an addition to a house/business, a swimming pool, a new house that is finished mid-year, etc.

Per Capita Tax
The per capita tax is a $10 tax on every adult (18 years old or older) resident residing in the Souderton Area School District. The district does not provide an exception for students but does provide an application process for residents of the district who are over 65 and earn less than $10,000 per year or are under 65, disabled, and earn less than $10,000 per year to apply for exoneration. The total per capita tax is $15 but only $10 is received by the school district; the local municipalities receive the other $5.

Earned Income Tax
The district levies a 1% tax on the wages, salaries, commissions, net profits, and other compensation of individuals who reside in the district (income from interest and dividends in not included). The tax applies to employed individuals, unincorporated business owners, partnerships, etc., and is normally withheld from workers’ paychecks. Berkheimer Associates is the current contracted earned income tax collector for the district. Although the total earned income tax is 1%, it is equally shared with the municipalities – the district realizes one-half percent.

Real Estate Transfer Tax
The real estate transfer tax is imposed when someone sells an item of real estate. The tax is based on the selling price of the property and is paid by the purchaser at the time of transfer. The total transfer tax is 1% but the district and the municipalities equally share it – the district realizes one-half percent.

Delinquent Taxes
The district collects delinquent taxes from the real estate tax as well as the per capita tax. All real estate tax bills dated July 1 that are not paid by December 31 are listed on a report completed by the local tax collector and turned over to Portnoff Law Associates, Ltd. in mid January for collection. Portnoff Law Associates, Ltd. collects the tax and then remits it to the district as delinquent real estate tax. Per Capita tax bills that are not collected by June 15 are turned over to Berkheimer Associates, the district’s delinquent per capita tax collector.