PRINTER'S NO. 3888
No. 2618 Session of 2004
INTRODUCED BY McGILL, HARPER AND WEBER, MAY 24, 2004
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 24, 2004
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 limitations on rates of specific taxes. 23 The General Assembly of the Commonwealth of Pennsylvania 24 hereby enacts as follows: 25 Section 1. Section 8 of the act of December 31, 1965 26 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended 27 October 11, 1984 (P.L.885, No.172) and July 9, 1987 (P.L.203,
1 No.30), is amended to read: 2 Section 8. Limitations on Rates of Specific Taxes.--No taxes 3 levied under the provisions of this act shall be levied by any 4 political subdivision on the following subjects exceeding the 5 rates specified in this section: 6 (1) Per capita, poll or other similar head taxes, ten 7 dollars ($10). 8 (2) On each dollar of the whole volume of business 9 transacted by wholesale dealers in goods, wares and merchandise, 10 one mill, by retail dealers in goods, wares and merchandise and 11 by proprietors of restaurants or other places where food, drink 12 and refreshments are served, one and one-half mills; except in 13 cities of the second class, where rates shall not exceed one 14 mill on wholesale dealers and two mills on retail dealers and 15 proprietors. No such tax shall be levied on the dollar volume of 16 business transacted by wholesale and retail dealers derived from 17 the resale of goods, wares and merchandise, taken by any dealer 18 as a trade-in or as part payment for other goods, wares and 19 merchandise, except to the extent that the resale price exceeds 20 the trade-in allowance. 21 (3) On wages, salaries, commissions and other earned income 22 of individuals, one percent. 23 (4) On retail sales involving the transfer of title or 24 possession of tangible personal property, two percent. 25 (5) On the transfer of real property, one percent. 26 (6) On admissions to places of amusement, athletic events 27 and the like, and on motion picture theatres in cities of the 28 second class, ten percent. 29 (7) Flat rate occupation taxes not using a millage or 30 percentage as a basis, ten dollars ($10). 20040H2618B3888 - 2 -
1 (8) Occupational privilege taxes, ten dollars ($10). 2 (9) On admissions to ski facilities, ten percent. The tax 3 base upon which the tax shall be levied shall not exceed forty 4 percent of the cost of the lift ticket. The lift ticket shall 5 include all costs of admissions to the ski facility. 6 (10) On admissions to golf courses, ten percent. The tax 7 base upon which the tax shall be levied shall not exceed forty 8 percent of the greens fee. The greens fee shall include all 9 costs of admissions to the golf course. 10 (11) On admissions to bowling alleys or bowling lanes, ten 11 percent. The tax base upon which the tax shall be levied shall 12 not exceed forty percent of the charge imposed upon a patron for 13 the sale of admission to or the privilege of admission to a 14 bowling alley or bowling lane to engage in one or more games of 15 bowling. 16 Except as otherwise provided in this act, at any time two 17 political subdivisions shall impose any one of the above taxes 18 on the same person, subject, business, transaction or privilege, 19 located within both such political subdivisions, during the same 20 year or part of the same year, under the authority of this act 21 then the tax levied by a political subdivision under the 22 authority of this act shall, during the time such duplication of 23 the tax exists, except as hereinafter otherwise provided, be 24 one-half of the rate, as above limited, and such one-half rate 25 shall become effective by virtue of the requirements of this act 26 from the day such duplication becomes effective without any 27 action on the part of the political subdivision imposing the tax 28 under the authority of this act. When any one of the above taxes 29 has been levied under the provisions of this act by one 30 political subdivision and a subsequent levy is made either for 20040H2618B3888 - 3 -
1 the first time or is revived after a lapse of time by another 2 political subdivision on the same person, subject, business, 3 transaction or privilege at a rate that would make the combined 4 levies exceed the limit allowed by this subdivision, the tax of 5 the second political subdivision shall not become effective 6 until the end of the fiscal year for which the prior tax was 7 levied, unless: 8 (1) Notice indicating its intention to make such levy is 9 given to the first taxing body by the second taxing body as 10 follows: (i) when the notice is given to a school district it 11 shall be given at least forty-five days prior to the last day 12 fixed by law for the levy of its school taxes; (ii) when given 13 to any other political subdivision it shall be prior to the 14 first day of January immediately preceding, or if a last day for 15 the adoption of the budget is fixed by law, at least forty-five 16 days prior to such last day; or 17 (2) Unless the first taxing body shall indicate by 18 appropriate resolution its desire to waive notice requirements 19 in which case the levy of the second taxing body shall become 20 effective on such date as may be agreed upon by the two taxing 21 bodies. 22 It is the intent and purpose of this provision to limit rates 23 of taxes referred to in this section so that the entire burden 24 of one tax on a person, subject, business, transaction or 25 privilege shall not exceed the limitations prescribed in this 26 section: Provided, however, That any two political subdivisions 27 which impose any one of the above taxes, on the same person, 28 subject, business, transaction or privilege during the same year 29 or part of the same year may agree among themselves that, 30 instead of limiting their respective rates to one-half of the 20040H2618B3888 - 4 -
1 maximum rate herein provided, they will impose respectively 2 different rates, the total of which shall not exceed the maximum 3 rate as above permitted. 4 Notwithstanding the provisions of this section, any city of 5 the second class A may enact a tax upon wages, salaries, 6 commissions and other earned income of individuals resident 7 therein, not exceeding one percent, even though a school 8 district levies a similar tax on the same person provided that 9 the aggregate of both taxes does not exceed two percent. 10 Notwithstanding the provisions of this section, any borough 11 with a population at the 2000 Federal Decennial Census between 12 6,400 and 6,500 that is located in a county of the second class 13 A that does not operate under a home rule charter may levy an 14 additional 0.25% earned income tax, if the governing body 15 approves a resolution indicating that such tax is necessary to 16 fund police services for the residents of the borough. 17 Section 2. This act shall take effect in 60 days. E11L53DMS/20040H2618B3888 - 5 -