PRINTER'S NO. 889
No. 762 Session of 2003
INTRODUCED BY TIGUE, DALLY, STEIL, LEWIS, YOUNGBLOOD,
WOJNAROSKI, WANSACZ, WALKO, THOMAS, E. Z. TAYLOR, TANGRETTI,
STABACK, SEMMEL, SAINATO, PALLONE, MELIO, KELLER, HARHAI,
GOODMAN, CURRY, CAWLEY, BEBKO-JONES, SOLOBAY, SAYLOR,
ROBERTS, MUNDY, McCALL, HORSEY, GRUCELA, FRANKEL, CORRIGAN
AND BELFANTI, MARCH 6, 2003
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 6, 2003
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 providing for payment of tax to other political
23 subdivisions or states as credit or deduction.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 14 of the act of December 31, 1965
1 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
2 October 26, 1972 (P.L.1043, No.261), is amended to read:
3 Section 14. Payment of Tax to Other Political Subdivisions
4 or States as Credit or Deduction; Withholding Tax.--Payment of
5 any tax to any political subdivision pursuant to an ordinance or
6 resolution passed or adopted prior to the effective date of this
7 act shall be credited to and allowed as a deduction from the
8 liability of taxpayers for any like tax respectively on
9 salaries, wages, commissions, other compensation or on net
10 profits of businesses, professions or other activities and for
11 any income tax imposed by any other political subdivision of
12 this Commonwealth under the authority of this act.
13 Payment of any tax on salaries, wages, commissions, other
14 compensation or on net profits of business, professions or other
15 activities to a political subdivision by residents thereof
16 pursuant to an ordinance or resolution passed or adopted under
17 the authority of this act shall be credited to and allowed as a
18 deduction from the liability of such persons for any other like
19 tax respectively on salaries, wages, commissions, other
20 compensation or on net profits of businesses, professions or
21 other activities imposed by any other political subdivision of
22 this Commonwealth under the authority of this act.
23 Payment of any tax on income to any political subdivision by
24 residents thereof pursuant to an ordinance or resolution passed
25 or adopted under the authority of this act shall, to the extent
26 that such income includes salaries, wages, commissions, other
27 compensation or net profits of businesses, professions or other
28 activities, but in such proportion as hereinafter set forth, be
29 credited to and allowed as a deduction from the liability of
30 such persons for any other tax on salaries, wages, commissions,
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1 other compensation or on net profits of businesses, professions,
2 or other activities imposed by any other political subdivision
3 of this Commonwealth under the authority of this act.
4 Payment of any tax on income to any state or to any political
5 subdivision thereof by residents thereof, pursuant to any State
6 or local law, may, at the discretion of the Pennsylvania
7 political subdivision imposing such tax, to the extent that such
8 income includes salaries, wages, commissions, or other
9 compensation or net profits of businesses, professions or other
10 activities but in such proportions as hereinafter set forth, be
11 credited to and allowed as a deduction from the liability of
12 such person for any other tax on salaries, wages, commissions,
13 other compensation or net profits of businesses, professions or
14 other activities imposed by any political subdivision of this
15 Commonwealth under the authority of this act, if residents of
16 the political subdivision in Pennsylvania receive credits and
17 deductions of a similar kind to a like degree from the tax on
18 income imposed by the other state or political subdivision
19 thereof.
20 Payment of any tax on income to any State other than
21 Pennsylvania or to any political subdivision located outside the
22 boundaries of this Commonwealth, by residents of a political
23 subdivision located in Pennsylvania [shall] may, to the extent
24 that such income includes salaries, wages, commissions, or other
25 compensation or net profits of businesses, professions or other
26 activities but in such proportions as hereinafter set forth, be
27 credited to and allowed as a deduction from the liability of
28 such person for any other tax on salaries, wages, commissions,
29 other compensation or net profits of businesses, professions or
30 other activities imposed by any political subdivision of this
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1 Commonwealth under the authority of this act.
2 Where a credit or a deduction is allowable in any of the
3 several cases hereinabove provided, it shall be allowed in
4 proportion to the concurrent periods for which taxes are imposed
5 by the other state or respective political subdivisions, but not
6 in excess of the amount previously paid for a concurrent period.
7 No credit or deduction shall be allowed against any tax on
8 earned income imposed under authority of this act to the extent
9 of the amount of credit or deduction taken for the same period
10 by the taxpayer against any income tax imposed by the
11 Commonwealth of Pennsylvania under section 314 of the act of
12 March 4, 1971 (P.L.6) known as the "Tax Reform Code of 1971," on
13 account of taxes imposed on income by other states or by their
14 political subdivisions.
15 Section 2. This act shall take effect in 60 days.
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