PRIOR PRINTER'S NOS. 1444, 2379, 3182, PRINTER'S NO. 3537 3306
No. 1206 Session of 2003
INTRODUCED BY MAHER, APRIL 21, 2003
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES, MARCH 23, 2004
AN ACT 1 Providing for applicability of the act of December 9, 2002 <-- 2 (P.L.1364, No.166), entitled "An act amending AMENDING the <-- 3 act of December 31, 1965 (P.L.1257, No.511), entitled 'An "AN <-- 4 act empowering cities of the second class, cities of the 5 second class A, cities of the third class, boroughs, towns, 6 townships of the first class, townships of the second class, 7 school districts of the second class, school districts of the 8 third class and school districts of the fourth class 9 including independent school districts, to levy, assess, 10 collect or to provide for the levying, assessment and 11 collection of certain taxes subject to maximum limitations 12 for general revenue purposes; authorizing the establishment 13 of bureaus and the appointment and compensation of officers, 14 agencies and employes to assess and collect such taxes; 15 providing for joint collection of certain taxes, prescribing 16 certain definitions and other provisions for taxes levied and 17 assessed upon earned income, providing for annual audits and 18 for collection of delinquent taxes, and permitting and 19 requiring penalties to be imposed and enforced, including 20 penalties for disclosure of confidential information, 21 providing an appeal from the ordinance or resolution levying 22 such taxes to the court of quarter sessions and to the 23 Supreme Court and Superior Court,' further providing for <-- 24 delegation of taxing powers and restrictions and for 25 definitions." COURT," FURTHER PROVIDING FOR DEFINITIONS; AND <-- 26 PROVIDING FOR THE APPLICABILITY OF 2002 AMENDMENTS RELATING 27 TO DEFINITIONS REGARDING EARNED INCOME TAX. 28 The General Assembly of the Commonwealth of Pennsylvania 29 hereby enacts as follows:
1 Section 1. The amendment of DEFINITION OF "EARNED INCOME" IN <-- 2 section 2 13 I of the act of December 31, 1965 (P.L.1257, <-- 3 No.511), known as The Local Tax Enabling Act, and the IS AMENDED <-- 4 TO READ: 5 SECTION 13. EARNED INCOME TAXES.--ON AND AFTER THE EFFECTIVE 6 DATE OF THIS ACT THE REMAINING PROVISIONS OF THIS SECTION SHALL 7 BE INCLUDED IN OR CONSTRUED TO BE A PART OF EACH TAX LEVIED AND 8 ASSESSED UPON EARNED INCOME BY ANY POLITICAL SUBDIVISION LEVYING 9 AND ASSESSING SUCH TAX PURSUANT TO THIS ACT. THE DEFINITIONS 10 CONTAINED IN THIS SECTION SHALL BE EXCLUSIVE FOR ANY TAX UPON 11 EARNED INCOME AND NET PROFITS LEVIED AND ASSESSED PURSUANT TO 12 THIS ACT, AND SHALL NOT BE ALTERED OR CHANGED BY ANY POLITICAL 13 SUBDIVISION LEVYING AND ASSESSING SUCH TAX. 14 I. DEFINITIONS 15 * * * 16 "EARNED INCOME." COMPENSATION AS DETERMINED UNDER SECTION 303 17 OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE "TAX 18 REFORM CODE OF 1971," AND REGULATIONS IN 61 PA. CODE PT. I 19 SUBPT. B ART. V (RELATING TO PERSONAL INCOME TAX), NOT 20 INCLUDING, HOWEVER, WAGES OR COMPENSATION PAID TO INDIVIDUALS ON 21 ACTIVE MILITARY SERVICE. EMPLOYE BUSINESS EXPENSES ARE ALLOWABLE 22 DEDUCTIONS AS DETERMINED UNDER ARTICLE III OF THE "TAX REFORM 23 CODE OF 1971." THE AMOUNT OF ANY HOUSING ALLOWANCE PROVIDED TO A 24 MEMBER OF THE CLERGY SHALL NOT BE TAXABLE AS EARNED INCOME. 25 * * * 26 SECTION 2. THE FOLLOWING PROVISIONS SHALL APPLY TO TAXABLE 27 YEARS BEGINNING AFTER DECEMBER 31, 2002: 28 (1) THE amendment of the definitions of "earned income" 29 and "net profits" in section 13 I of The Local Tax Enabling <-- 30 Act in THE ACT IN SECTION 2 OF the act of December 9, 2002 <-- 20030H1206B3537 - 2 -
1 (P.L.1364, No.166), entitled "An act amending the act of 2 December 31, 1965 (P.L.1257, No.511), entitled 'An act 3 empowering cities of the second class, cities of the second 4 class A, cities of the third class, boroughs, towns, 5 townships of the first class, townships of the second class, 6 school districts of the second class, school districts of the 7 third class and school districts of the fourth class 8 including independent school districts, to levy, assess, 9 collect or to provide for the levying, assessment and 10 collection of certain taxes subject to maximum limitations 11 for general revenue purposes; authorizing the establishment 12 of bureaus and the appointment and compensation of officers, 13 agencies and employes to assess and collect such taxes; 14 providing for joint collection of certain taxes, prescribing 15 certain definitions and other provisions for taxes levied and 16 assessed upon earned income, providing for annual audits and 17 for collection of delinquent taxes, and permitting and 18 requiring penalties to be imposed and enforced, including 19 penalties for disclosure of confidential information, 20 providing an appeal from the ordinance or resolution levying 21 such taxes to the court of quarter sessions and to the 22 Supreme Court and Superior Court,' further providing for 23 delegation of taxing powers and restrictions and for <-- 24 definitions," shall apply to taxable years beginning after 25 December 31, 2002. RESTRICTIONS AND FOR DEFINITIONS." <-- 26 (2) THE AMENDMENT OF THE DEFINITION OF "EARNED INCOME" 27 IN SECTION 13 I OF THE ACT IN SECTION 1 OF THIS ACT. 28 Section 2 3. This act shall take effect immediately. <-- A31L53VDL/20030H1206B3537 - 3 -