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Frequently Asked Questions

Finance Frequently Asked Questions

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finfaq

 

What is the role of Finance?

Role of Finance:  The role of Finance is to create a unified city accounting system. Finance is responsible for the administration of activities that include:  the receipt, expenditure, accounting, investment, custody and control of municipal funds and assets including the budget (both operating and capital); financial accounting, which shall be conducted according to generally accepted accounting principles; investments and insurance; payroll; pension administration; materials management; and all other financial matters that may arise.

 

How/where do I pay my fees?

All fees that are paid in person are to be paid in the Treasury Office located on the first floor (room 1-33) in City Hall.

 

How do I notify you of a change of location?

If it is simply a change from one City location to another (and not to a location out of the City), an e-mail, fax, or letter giving the complete change of address (and/or phone number if applicable), along with the effective date of the change is sufficient. However, if the change of address is to an out-of City location, the City will have to have notification in writing from the owner(s), i.e. proprietor, partners, or officers, notifying us of the out of business date.  

 

How do I notify you of a change of business location?

  1. If the change of “ownership” is simply a sale of the corporate stock, and there is no change to the business’ Federal ID number, than the City only requires the change to be in writing as detailed in 1) above.
  2. If the change of “ownership” involves more than a simple stock transfer, i.e. there is a new Federal ID number assigned to the “new” entity, the old owner(s) must notify the City accordingly [see 1 above] of its “out of business” date and the new owner(s) must follow the procedures to apply for a new Business Privilege License and be treated as a new business.

 

What are the licensing requirements?

All entities (or individuals filing Schedule C’s who are not considered employees of another) must obtain a Business Privilege License every calendar year (or part of the calendar year that it has operated or will operate).  Along with the Business Privilege License requirement, all entities must file and pay Business Privilege Tax every calendar year.
 
All entities that have employees must submit payment of the Earned Income Tax (3.6% for City of Reading residents in their employ; 1.3% for non-City residents), as well as the Emergency Municipal Services Tax-$52 per person per year.  (Sole proprietors and all general partners of partnerships are required to submit payment of the Emergency Municipal Services Tax as well.)  It is important to note that all entities must register with the City PRIOR to submitting these payroll taxes.  “Registering” means applying for a Business Privilege License; non-profit entities with employees must register with the City and provide proof of their 501(c) or 501 (c)(3) status (to be properly exempted from the Business Privilege Tax requirements).
 
 

What are the regulatory licenses?

Business Privilege is the only license filed with the City of Reading Customer Service Center.

 

What is the role of the purchasing division?

The function of the Purchasing Division is to procure the highest quality commodities and services that meet the City's needs at the least expense.  The purchasing process includes planning and scheduling purchases, seeking competition, assuring the preparation of proper specifications and enforcing compliance with all purchasing regulations and procedures.  This Division also manages in-house printing operations.

What is the process of supplying goods or services to the City?

Verbal or written price quotes are required for purchases over $500 and under $10,000, a written record of which is maintained.
 
Purchases over $10,000 not considered a professional service require a formal bid solicitation through advertising.  Vendors are required to submit sealed bids accompanied by a bid surety.
 
Unless otherwise determined by the Managing Director, any purchase of professional services in amounts exceeding $10,000 must be made by written contract and initiated by a Request for Proposal.
 

What are the business taxes?

Besides property tax businesses are require to pay the following taxes.
 
Employees working in the City of Reading are required to pay EMS Tax of $52 per year. The $52 dollars is to be automatically deducted by employers. Employers are required to remit payment to the City within 4 months of employees start date.
 
Businesses must also pay a Business Privilege Tax. More information on the Business Privilege Tax can be found here.