City changes method of collecting tax

NEW CASTLE, Pa. — A local services tax levied on individuals who work in the city won’t hit folks so hard in 2008.

City council has enacted an ordinance that calls for the $52 tax to be deducted gradually through the year. Previously the tax was deducted from workers’ paychecks in one lump sum.

People who get paid every other week will have $2 deducted from each check while those who get paid every week will have $1 deducted.

The state Legislature changed the law this year to allow municipalities to change the method of collection, officials explained.

Also, council has agreed to allow the city to apply for a $500,000 state grant as part of the development of Riverview Commerce Park.

The state has authorized the funding through the Redevelopment Assistance Capital Grant, but the city must submit a formal application, officials said.