PRINTER'S NO. 1834
No. 1511 Session of 1997
INTRODUCED BY BUNT, FARGO, E. Z. TAYLOR, TRELLO, CIVERA AND
FLICK, MAY 14, 1997
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 14, 1997
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" to exclude certain rental
23 income.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. The definition of "earned income" in section 13
27 of the act of December 31, 1965 (P.L.1257, No.511), known as The
28 Local Tax Enabling Act, is amended to read:
1 Section 13. Earned Income Taxes.--On and after the effective
2 date of this act the remaining provisions of this section shall
3 be included in or construed to be a part of each tax levied and
4 assessed upon earned income by any political subdivision levying
5 and assessing such tax pursuant to this act. The definitions
6 contained in this section shall be exclusive for any tax upon
7 earned income and net profits levied and assessed pursuant to
8 this act, and shall not be altered or changed by any political
9 subdivision levying and assessing such tax.
10 I. Definitions
11 * * *
12 "Earned income." Salaries, wages, commissions, bonuses,
13 incentive payments, fees, tips and other compensation received
14 by a person or his personal representative for services
15 rendered, whether directly or through an agent, and whether in
16 cash or in property; not including, however, wages or
17 compensation paid to persons on active military service,
18 periodic payments for sickness and disability other than regular
19 wages received during a period of sickness, disability or
20 retirement or payments arising under workmen's compensation
21 acts, occupational disease acts and similar legislation, or
22 payments commonly recognized as old age benefits, retirement pay
23 or pensions paid to persons retired from service after reaching
24 a specific age or after a stated period of employment or
25 payments commonly known as public assistance, or unemployment
26 compensation payments made by any governmental agency or
27 payments to reimburse expenses or payments made by employers or
28 labor unions for wage and salary supplemental programs,
29 including, but not limited to, programs covering
30 hospitalization, sickness, disability or death, supplemental
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1 unemployment benefits, strike benefits, social security and
2 retirement, or rental income unless such income is classified as
3 net profits under this section.
4 * * *
5 Section 2. This act shall apply to the tax year beginning
6 January 1, 1998, and each tax year thereafter.
7 Section 3. This act shall take effect immediately.
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