PRINTER'S NO. 3572
No. 2593 Session of 1990
INTRODUCED BY BRANDT, TIGUE, GODSHALL, STRITTMATTER, WOZNIAK,
NOYE, PESCI, BARLEY, MERRY, JACKSON, FOX, BUNT, LEE, SCHULER
AND HERSHEY, MAY 29, 1990
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 29, 1990
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 providing for a public hearing prior to adoption of a tax
23 ordinance; and further providing for limitations on rates of
24 specific taxes.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Section 4 of the act of December 31, 1965
28 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
1 October 9, 1967 (P.L.361, No.160), is amended to read:
2 Section 4. Advertisement of Intention to Adopt Tax Ordinance
3 or Resolution; Public Hearing.--[Prior] Sixty days prior to the
4 passage of any ordinance or the adoption of any resolution
5 imposing a tax or license fee under the authority hereunder
6 granted or changing the rates at which such taxes or fees are
7 levied, such political subdivision shall:
8 (1) give notice of the intention to pass such ordinance or
9 adopt such resolution; and
10 (2) hold a public hearing on the merits of same. Such notice
11 shall be given in addition to all other notices required by law
12 to be given and shall set forth the substantial nature [of the]
13 and rate of:
14 (i) any tax or license fee to be imposed, eliminated,
15 (ii) any existing tax or fee where the rate is to be
16 increased or decreased by the proposed ordinance or resolution,
17 the reason which, in the judgment of the officials of the
18 subdivision, necessitates the imposition, elimination or
19 increase or decrease in the rate of the tax or fee, and the
20 amount of revenue estimated to be derived from the tax or fee or
21 change in rates. Publication of such notice, which shall include
22 the date, time and location of the public hearing, shall be made
23 by advertisement once a week for three weeks in a newspaper of
24 general circulation within such political subdivision if there
25 is such newspaper and, if there is not, then such publication
26 shall be made in a newspaper of general circulation within the
27 county in which the advertising political subdivision is
28 located.
29 Every such tax shall continue in force on a calendar or
30 fiscal year basis, as the case may be, without annual
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1 reenactment unless the rate of the tax is subsequently changed.
2 Section 2. Section 8 of the act, amended or added October
3 11, 1984 (P.L.885, No.172) and July 9, 1987 (P.L.203, No.30), is
4 amended to read:
5 Section 8. Limitations on Rates of Specific Taxes.--(a) No
6 taxes levied under the provisions of this act shall be levied by
7 any political subdivision on the following subjects exceeding
8 the rates specified in this section:
9 (1) Per capita, poll or other similar head taxes, ten
10 dollars ($10).
11 (2) On each dollar of the whole volume of business
12 transacted by wholesale dealers in goods, wares and merchandise,
13 one mill, by retail dealers in goods, wares and merchandise and
14 by proprietors of restaurants or other places where food, drink
15 and refreshments are served, one and one-half mills; except in
16 cities of the second class, where rates shall not exceed one
17 mill on wholesale dealers and two mills on retail dealers and
18 proprietors. No such tax shall be levied on the dollar volume of
19 business transacted by wholesale and retail dealers derived from
20 the resale of goods, wares and merchandise, taken by any dealer
21 as a trade-in or as part payment for other goods, wares and
22 merchandise, except to the extent that the resale price exceeds
23 the trade-in allowance.
24 (3) On wages, salaries, commissions and other earned income
25 of individuals, [one percent] no limit.
26 (4) On retail sales involving the transfer of title or
27 possession of tangible personal property, two percent.
28 (5) On the transfer of real property, one percent.
29 (6) On admissions to places of amusement, athletic events
30 and the like, and on motion picture theatres in cities of the
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1 second class, ten percent.
2 (7) Flat rate occupation taxes not using a millage or
3 percentage as a basis, ten dollars ($10).
4 (8) Occupational privilege taxes, ten dollars ($10).
5 (9) On admissions to ski facilities, ten percent. The tax
6 base upon which the tax shall be levied shall not exceed forty
7 percent of the cost of the lift ticket. The lift ticket shall
8 include all costs of admissions to the ski facility.
9 (10) On admissions to golf courses, ten percent. The tax
10 base upon which the tax shall be levied shall not exceed forty
11 percent of the greens fee. The greens fee shall include all
12 costs of admissions to the golf course.
13 (11) On admissions to bowling alleys or bowling lanes, ten
14 percent. The tax base upon which the tax shall be levied shall
15 not exceed forty percent of the charge imposed upon a patron for
16 the sale of admission to or the privilege of admission to a
17 bowling alley or bowling lane to engage in one or more games of
18 bowling.
19 (b) Except as otherwise provided in this act, at any time
20 two political subdivisions shall impose any one of the above
21 taxes, except the tax authorized in subsection (a)(3), on the
22 same person, subject, business, transaction or privilege,
23 located within both such political subdivisions, during the same
24 year or part of the same year, under the authority of this act
25 then the tax levied by a political subdivision under the
26 authority of this act shall, during the time such duplication of
27 the tax exists, except as hereinafter otherwise provided, be
28 one-half of the rate, as above limited, and such one-half rate
29 shall become effective by virtue of the requirements of this act
30 from the day such duplication becomes effective without any
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1 action on the part of the political subdivision imposing the tax
2 under the authority of this act. When any one of the above
3 taxes, except the tax authorized in subsection (a)(3), has been
4 levied under the provisions of this act by one political
5 subdivision and a subsequent levy is made either for the first
6 time or is revived after a lapse of time by another political
7 subdivision on the same person, subject, business, transaction
8 or privilege at a rate that would make the combined levies
9 exceed the limit allowed by this subdivision, the tax of the
10 second political subdivision shall not become effective until
11 the end of the fiscal year for which the prior tax was levied,
12 unless:
13 (1) Notice indicating its intention to make such levy is
14 given to the first taxing body by the second taxing body as
15 follows: (i) when the notice is given to a school district it
16 shall be given at least forty-five days prior to the last day
17 fixed by law for the levy of its school taxes; (ii) when given
18 to any other political subdivision it shall be prior to the
19 first day of January immediately preceding, or if a last day for
20 the adoption of the budget is fixed by law, at least forty-five
21 days prior to such last day; or
22 (2) Unless the first taxing body shall indicate by
23 appropriate resolution its desire to waive notice requirements
24 in which case the levy of the second taxing body shall become
25 effective on such date as may be agreed upon by the two taxing
26 bodies.
27 (c) It is the intent and purpose of this provision to limit
28 rates of taxes referred to in this section so that the entire
29 burden of one tax on a person, subject, business, transaction or
30 privilege shall not exceed the limitations prescribed in this
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1 section: Provided, however, That any two political subdivisions
2 which impose any one of the above taxes, except the tax
3 authorized in subsection (a)(3), on the same person, subject,
4 business, transaction or privilege during the same year or part
5 of the same year may agree among themselves that, instead of
6 limiting their respective rates to one-half of the maximum rate
7 herein provided, they will impose respectively different rates,
8 the total of which shall not exceed the maximum rate as above
9 permitted.
10 [Notwithstanding the provisions of this section, any city of
11 the second class A may enact a tax upon wages, salaries,
12 commissions and other earned income of individuals resident
13 therein, not exceeding one percent, even though a school
14 district levies a similar tax on the same person provided that
15 the aggregate of both taxes does not exceed two percent.]
16 Section 3. This act shall take effect immediately.
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