PRINTER'S NO. 158
No. 145 Session of 1989
INTRODUCED BY LASHINGER, DISTLER, CORNELL AND PETRARCA,
JANUARY 30, 1989
REFERRED TO COMMITTEE ON FINANCE, JANUARY 30, 1989
AN ACT
1 Amending the act of December 31, 1965 (P.L.1257, No.511),
2 entitled "An act empowering cities of the second class,
3 cities of the second class A, cities of the third class,
4 boroughs, towns, townships of the first class, townships of
5 the second class, school districts of the second class,
6 school districts of the third class and school districts of
7 the fourth class including independent school districts, to
8 levy, assess, collect or to provide for the levying,
9 assessment and collection of certain taxes subject to maximum
10 limitations for general revenue purposes; authorizing the
11 establishment of bureaus and the appointment and compensation
12 of officers, agencies and employes to assess and collect such
13 taxes; providing for joint collection of certain taxes,
14 prescribing certain definitions and other provisions for
15 taxes levied and assessed upon earned income, providing for
16 annual audits and for collection of delinquent taxes, and
17 permitting and requiring penalties to be imposed and
18 enforced, including penalties for disclosure of confidential
19 information, providing an appeal from the ordinance or
20 resolution levying such taxes to the court of quarter
21 sessions and to the Supreme Court and Superior Court,"
22 further defining "earned income."
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. The definition of "earned income" in Division I
26 of section 13 of the act of December 31, 1965 (P.L.1257,
27 No.511), known as The Local Tax Enabling Act, is amended to
1 read:
2 Section 13. Earned Income Taxes.--* * *
3 I. Definitions
4 * * *
5 "Earned income." Salaries, wages, commissions, bonuses,
6 incentive payments, fees, tips and other compensation received
7 by a person or his personal representative for services
8 rendered, whether directly or through an agent, and whether in
9 cash or in property; not including, however, wages or
10 compensation paid to persons on active military service,
11 periodic payments for sickness and disability other than regular
12 wages received during a period of sickness, disability or
13 retirement or payments arising under workmen's compensation
14 acts, occupational disease acts and similar legislation, or
15 payments commonly recognized as old age benefits, retirement pay
16 or pensions paid to persons retired from service after reaching
17 a specific age or after a stated period of employment or
18 payments commonly known as public assistance, or unemployment
19 compensation payments made by any governmental agency or
20 payments to reimburse expenses or payments made by employers or
21 labor unions for wage and salary supplemental programs,
22 including, but not limited to, programs covering
23 hospitalization, sickness, disability or death, supplemental
24 unemployment benefits, strike benefits, social security and
25 retirement, or payments by an employer to an employee beyond his
26 regular wages upon termination of his employment, commonly
27 referred to as severance pay.
28 * * *
29 Section 2. This act shall apply to tax years beginning
30 January 1, 1990, and thereafter.
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1 Section 3. This act shall take effect immediately.
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