PRINTER'S NO. 3574
No. 2595 Session of 1990
INTRODUCED BY FLICK, ITKIN, DISTLER, TIGUE, VROON, FOX AND BUNT,
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 further providing for the occupational privilege tax.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Sections 2(9) and 8(8) of the act of December 31,
26 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act,
27 amended October 11, 1984 (P.L.885, No.172), are amended to read:
1 Section 2. Delegation of Taxing Powers and Restrictions
2 Thereon.--The duly constituted authorities of the following
3 political subdivisions, cities of the second class, cities of
4 the second 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, in all
8 cases including independent school districts, may, in their
9 discretion, by ordinance or resolution, for general revenue
10 purposes, levy, assess and collect or provide for the levying,
11 assessment and collection of such taxes as they shall determine
12 on persons, transactions, occupations, privileges, subjects and
13 personal property within the limits of such political
14 subdivisions, and upon the transfer of real property, or of any
15 interest in real property, situate within the political
16 subdivision levying and assessing the tax, regardless of where
17 the instruments making the transfers are made, executed or
18 delivered or where the actual settlements on such transfer take
19 place. The taxing authority may provide that the transferee
20 shall remain liable for any unpaid realty transfer taxes imposed
21 by virtue of this act. Each local taxing authority may, by
22 ordinance or resolution, exempt any person whose total income
23 from all sources is less than five thousand dollars ($5,000) per
24 annum from the per capita or similar head tax, occupation tax
25 and occupational privilege tax, or earned income tax, or any
26 portion thereof, and may adopt regulations for the processing of
27 claims for exemptions. Such local authorities shall not have
28 authority by virtue of this act:
29 * * *
30 (9) To levy, assess or collect any tax on individuals for
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1 the privilege of engaging in an occupation (occupational
2 privilege tax) except that such a tax may be levied, assessed
3 and collected only by the political subdivision of the
4 taxpayer's place of employment.
5 Payment of any occupational privilege tax to any political
6 subdivision by any person pursuant to an ordinance or resolution
7 passed or adopted under the authority of this act shall be
8 limited to ten dollars ($10) in the case of school districts and
9 to twenty-five dollars ($25) in the case of all other political
10 subdivisions on each person for each calendar year.
11 The situs of such tax shall be the place of employment, but,
12 in the event a person is engaged in more than one occupation, or
13 an occupation which requires his working in more than one
14 political subdivision during the calendar year, the priority of
15 claim to collect such occupational privilege tax shall be in the
16 following order: first, the political subdivision in which a
17 person maintains his principal office or is principally
18 employed; second, the political subdivision in which the person
19 resides and works, if such a tax is levied by that political
20 subdivision; third, the political subdivision in which a person
21 is employed and which imposes the tax nearest in miles to the
22 person's home. The place of employment shall be determined as of
23 the day the taxpayer first becomes subject to the tax during the
24 calendar year.
25 It is the intent of this provision that no person shall pay
26 more than ten dollars ($10) in the case of an occupational
27 privilege tax levied by a school district or twenty-five dollars
28 ($25) in the case of any occupational privilege tax levied by
29 any other political subdivision in any calendar year as an
30 occupational privilege tax irrespective of the number of
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1 political subdivisions within which such person may be employed
2 within any given calendar year.
3 In case of dispute, a tax receipt of the taxing authority for
4 that calendar year declaring that the taxpayer has made prior
5 payment which constitutes prima facie certification of payment
6 to all other political subdivisions.
7 * * *
8 Section 8. Limitations on Rates of Specific Taxes.--No taxes
9 levied under the provisions of this act shall be levied by any
10 political subdivision on the following subjects exceeding the
11 rates specified in this section:
12 * * *
13 (8) Occupational privilege taxes, ten dollars ($10) when
14 levied by a school district or twenty-five dollars ($25) when
15 levied by any other political subdivision.
16 * * *
17 Section 2. (a) If a political subdivision, pursuant to this
18 amendatory act, increases the rate of an occupational privilege
19 tax levied by it, a school district shall have no claim to any
20 of the revenues granted by the increase.
21 (b) When an occupational privilege tax is levied by a school
22 district and another political subdivision, the maximum rate of
23 an occupational privilege tax levied by a school district shall
24 be $5 or the rate, not exceeding $10, levied on the effective
25 date of this amendatory act, whichever is higher.
26 Section 3. This act shall take effect in 60 days.
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