PRIOR PRINTER'S NOS. 2872, 2886, 3037, PRINTER'S NO. 4504
3117, 3152
No. 2082 Session of 2005
INTRODUCED BY ALLEN, DALLY, SAYLOR, PETRARCA, ZUG, TRUE, FEESE,
ARGALL AND KAUFFMAN, OCTOBER 19, 2005
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
JULY 1, 2006
AN ACT
1 Establishing spending limitations on the Commonwealth; providing <--
2 for the disposition of surplus funds; and making a repeal of
3 provisions in The Fiscal Code relating to the funding of a
4 stabilization reserve.
5 PROVIDING FOR A NONBINDING STATEWIDE REFERENDUM ON THE MATTER OF <--
6 LOCAL SCHOOL PROPERTY TAX ELIMINATION.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Short title.
10 This act shall be known and may be cited as the Taxpayer
11 Fairness Act.
12 Section 2. Definitions. <--
13 The following words and phrases when used in this act shall
14 have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Appropriation limit." The total of the amounts approved as
17 executive authorizations by the Governor plus the total amounts
18 of preferred and nonpreferred appropriations made by the General
1 Assembly from the General Fund during the fiscal year
2 immediately prior to the budget year under consideration,
3 adjusted by the lesser of:
4 (1) The average percentage change in personal income in
5 Pennsylvania; or
6 (2) The average percentage change in inflation plus the
7 average percentage change in State population.
8 "Average percentage change in inflation." The average of the
9 percentage change for each of the three calendar years, from
10 October to October, immediately preceding the calendar year in
11 which a given executive budget is submitted by the Governor, in
12 the United States Department of Labor, Bureau of Labor
13 Statistics, Consumer Price Index for All Urban Consumers, not
14 seasonally adjusted, all items index or its successor index.
15 "Average percentage change in personal income." The average
16 of the percentage change in personal income estimates for
17 Pennsylvania, from second calendar quarter to second calendar
18 quarter, for each of the three calendar years immediately
19 preceding the calendar year in which a given executive budget is
20 submitted by the Governor, as reported by the United States
21 Department of Commerce, Bureau of Economic Analysis, SQ4
22 Quarterly Income Summary for Pennsylvania or its successor index
23 or as determined pursuant to an act of the General Assembly.
24 "Average percentage change in State population." The average
25 of the percentage change in State population for each of the
26 three most recent years immediately preceding the calendar year
27 in which a given executive budget is submitted by the Governor,
28 as reported by the United States Census Bureau for July 1 of
29 each year.
30 Section 3. Spending limitations.
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1 (a) General rule.--Total spending by the Commonwealth in any
2 fiscal year shall not exceed the appropriation limit as set
3 forth in this act.
4 (b) Exceptions.--
5 (1) The appropriations limit of the Commonwealth may be
6 exceeded in any fiscal year for the following:
7 (i) To respond to a presidentially declared
8 emergency if the General Assembly approves by an
9 affirmative vote of a majority of the members elected to
10 each house of the General Assembly.
11 (ii) To respond to a gubernatorially declared
12 emergency if the Governor so requests and the General
13 Assembly approves by an affirmative vote of three-fifths
14 of the members elected to each house of the General
15 Assembly.
16 (iii) In other situations if the General Assembly
17 approves by an affirmative vote of two-thirds of the
18 members elected to each house of the General Assembly.
19 (2) For exceptions set forth under paragraph (1)(i) and
20 (ii), the excess spending authorized by exceeding the
21 appropriation limit in this manner shall not be included in
22 the computation base of the appropriation limit for any
23 subsequent fiscal year.
24 (3) For exceptions set forth under paragraph (1)(iii),
25 the excess spending may be included in the computation base
26 of the appropriation limit for any subsequent fiscal year if
27 the excess spending represents a recurring obligation of the
28 Commonwealth and an act of the General Assembly authorizing
29 the excess of spending specifically authorizes the excess
30 spending to be incorporated in the base.
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1 Section 4. Disposition of surplus revenues.
2 (a) Transfer of surplus.--
3 (1) Except as provided under paragraph (2), for any
4 fiscal year in which the Governor certifies that a surplus
5 exists in the General Fund, 35% of that surplus shall be
6 deposited by the end of the next succeeding quarter into the
7 Budget Stabilization Reserve Fund established in section
8 1701-A of the act of April 9, 1929 (P.L.343, No.176), known
9 as The Fiscal Code, and 65% of that surplus shall be
10 deposited by the end of the next succeeding quarter into the
11 Taxpayer Fairness Fund, which fund is hereby established in
12 the State Treasury.
13 (2) For any fiscal year in which the State Treasurer
14 certifies that the balance in the Budget Stabilization
15 Reserve Fund equals or exceeds 7.5% of the total of all
16 General Fund appropriations in the preceding fiscal year,
17 100% of the surplus certified by the Governor under paragraph
18 (1) shall be deposited into the Taxpayer Fairness Fund.
19 (b) Distribution.--
20 (1) The moneys in the Taxpayer Fairness Fund shall be
21 distributed to taxpayers who have liability for the tax
22 imposed under Article III of the act of March 4, 1971 (P.L.6,
23 No.2), known as the Tax Reform Code of 1971, through a
24 temporary reduction in the rate of such tax, which reduction
25 shall be effective for January 1 through December 31 of the
26 upcoming calendar year.
27 (2) The Secretary of the Budget, in conjunction with the
28 Secretary of Revenue, shall certify the temporary rate for
29 the upcoming calendar year no later than September 30. The
30 temporary rate shall be published in the Pennsylvania
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1 Bulletin, posted on the State's publicly accessible Internet
2 website and reported to the chairman and minority chairman of
3 the Appropriations Committee of the Senate and the chairman
4 and minority chairman of the Appropriations Committee of the
5 House of Representatives.
6 (c) Accumulation.--No moneys shall be distributed from the
7 Taxpayer Fairness Fund pursuant to subsection (b) until such
8 time as the moneys deposited therein are sufficient to provide a
9 temporary reduction of at least 0.01% in the rate of taxation
10 for the tax imposed under Article III of the Tax Reform Code of
11 1971.
12 (d) Appropriated funds.--The General Assembly may at any
13 time provide additional amounts from any funds available to the
14 Commonwealth as an appropriation to the Budget Stabilization
15 Reserve Fund.
16 Section 5. Repeal.
17 Repeals are as follows:
18 (1) The General Assembly declares that the repeal under
19 paragraph (2) is necessary to effectuate the provisions of
20 this act.
21 (2) Section 1702-A of the act of April 9, 1929 (P.L.343,
22 No.176), known as The Fiscal Code, is repealed.
23 SECTION 2. AUTHORIZATION. <--
24 THE SECRETARY OF THE COMMONWEALTH SHALL CAUSE TO BE PLACED ON
25 THE BALLOT, AT THE PRIMARY OR GENERAL ELECTION OCCURRING AT
26 LEAST 30 DAYS NEXT FOLLOWING THE EFFECTIVE DATE OF THIS SECTION,
27 A NONBINDING REFERENDUM TO DETERMINE THE WILL OF THE ELECTORATE
28 OF THIS COMMONWEALTH WITH RESPECT TO THE ELIMINATION OF LOCAL
29 SCHOOL PROPERTY TAX THROUGH THE USE OF SALES AND USE TAX
30 REVENUE.
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1 SECTION 3. FORM OF QUESTION.
2 THE REFERENDUM QUESTION SHALL BE IN SUBSTANTIALLY THE
3 FOLLOWING FORM:
4 SHALL PENNSYLVANIA ADOPT LEGISLATION TO ELIMINATE LOCAL
5 SCHOOL PROPERTY TAXES THROUGH THE USE OF SALES AND USE
6 TAX REVENUE?
7 SECTION 4. CONDUCT OF ELECTION.
8 THE REFERENDUM SHALL BE ADVERTISED AND CONDUCTED IN
9 ACCORDANCE WITH THE PROVISIONS OF THE ACT OF JUNE 3, 1937
10 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE.
11 Section 6 20. Effective date. <--
12 This act shall take effect immediately.
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