Part-time employees, including many college students, will most likely not be affected by a new tax to be implemented by the borough.

A committee will discuss tomorrow the implementation of a $52 tax to be taken out of paychecks that meet the minimum income threshold.

The Emergency and Municipal Services Tax was applied by the State College Borough Council after they were given permission from the state government to create the $52 tax.

The tax was passed Dec. 20, and replaced the Occupation Privilege Tax in State College. College, Patton and Ferguson townships also adopted the tax.

A point of contention regarding the tax's implementation is when the $52 will be taken out of an employee's paycheck: at the beginning of the year or once the employee's earnings cross the $5,200 minimum income threshold.

"We are still reviewing that issue," Finance Department Director Mike Groff said. "We anticipate making a decision by the end of this month."

The Occupation Privilege Tax allowed the first $1,000 of a paycheck to be exempt from taxes. After the minimum income threshold of $1,000 was reached, workers in the borough paid $10 to hold a job in the area: $5 went to the school district and $5 went to the borough.

Council President Tom Daubert said the new tax only applies to people who make $5,200 a year or more because that is the new minimum income threshold.

"Part-time people won't have to pay," he said. "It's fairer than raising the income tax for people that live in State College."

Linda Welker, borough tax administrator, said the borough is exploring other options because the tax is new.

"We have no history to really rely on," she said. "There are still so many unknowns ... it's something we're learning as we go."

Borough Manager Tom Fountaine said municipalities in western Pennsylvania, specifically Pittsburgh, would "hold [the $52] at the beginning."

He added that if an employee never hit the $5,200 mark, a tax return could be filed and a refund would be issued for the $52.

Groff said the borough originally only took the taxes from an employee's paycheck once the minimum income threshold was reached.

Council member Cathy Dauler said earlier that the Occupation Privilege Tax was "for the privilege of working" in the borough municipality.

She said the reason for adopting the optional Emergency and Municipal Services Tax was due in part to discussions concerning the repeal of the Business Privilege Tax.

Although the business tax generates $800,000 for the borough yearly, it could be unfair to members of businesses, she said.

She added that with the adoption of Emergency and Municipal Services Tax, repealing the business tax could be discussed more seriously as an alternative.

"It generates quite a bit of revenue," Dauler said. "It balanced the Business Privilege Tax."

Daubert said the new tax was a good idea because "20,000 people use all the facilities and pay zero. With the tax pay, at least $47 goes to the borough."

He added that the previous $5 given to the school district would continue, so $47 of the $52 will go to the borough.

Fountaine said Groff was currently working with other municipalities to "draft rules and regulations on how the process is scheduled to work."

Fountaine said he expects the committee will come to a conclusion by the end of the month.

"We want to get most issues resolved as quickly as we can," he said. "Probably the first week in February, it'll be brought to council."