HOUSE AMENDED
PRIOR PRINTER'S NOS. 574, 992, 1027, PRINTER'S NO. 1110
1039, 1075
No. 100 Session of 2003
INTRODUCED BY JUBELIRER, BRIGHTBILL, PICCOLA, RHOADES, DENT,
RAFFERTY, WENGER, TOMLINSON, ROBBINS, MADIGAN, M. WHITE,
MOWERY, CONTI, WAUGH, THOMPSON, PUNT, HELFRICK, ERICKSON,
WONDERLING AND ARMSTRONG, MARCH 24, 2003
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
JULY 19, 2003
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An <--
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," further providing for per capita
6 taxes; providing for the imposition and collection of an
7 earned income and net profits tax OR PERSONAL INCOME TAX by <--
8 school districts after approval by the electors; providing
9 for applicability of referendum exceptions; and further
10 providing for the mandate waiver program.
11 AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN <--
12 ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN
13 PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL
14 SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE
15 LAWS RELATING THERETO," FURTHER PROVIDING FOR PER CAPITA
16 TAXES AND FOR DISTRESS IN SCHOOL DISTRICTS OF THE FIRST
17 CLASS; PROVIDING FOR THE IMPOSITION AND COLLECTION OF AN
18 EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX BY
19 SCHOOL DISTRICTS AFTER APPROVAL BY THE ELECTORS, FOR STATE
20 MATCHING FUNDS FORMULA, FOR WAGE AND NET PROFITS TAX RELIEF
21 IN CITIES OF THE FIRST CLASS AND FOR APPLICABILITY OF
22 REFERENDUM EXCEPTIONS; AND FURTHER PROVIDING FOR THE MANDATE
23 WAIVER PROGRAM.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 679 of the act of March 10, 1949 (P.L.30, <--
1 No.14), known as the Public School Code of 1949, amended
2 November 26, 1982 (P.L.760, No.215), is amended to read:
3 Section 679. Per Capita Taxes.--Each resident or inhabitant,
4 over eighteen years of age, in every school district of the
5 second, third, and fourth class, which shall levy such tax,
6 shall annually pay, for the use of the school district in which
7 he or she is a resident or inhabitant, a per capita tax of not
8 less than one dollar nor more than five dollars, as may be
9 assessed by the local school district. The tax collector shall
10 not proceed against a spouse or his employer until he has
11 pursued remedies against the delinquent taxpayer and the
12 taxpayer's employer under this section.
13 Each school district may exempt any person whose total income
14 from all sources is less than [five thousand dollars] ten
15 thousand dollars per annum from its per capita tax or any
16 portion thereof. The school district may adopt and employ
17 regulations for the processing of claims for the exemption.
18 Section 2. The act is amended by adding an article to read:
19 ARTICLE VI-A
20 TAXATION BY SCHOOL DISTRICTS
21 (a) General Provisions
22 Section 601-A. Short title of article.
23 This article shall be known and may be cited as the Taxpayer
24 Choice Act.
25 Section 602-A. Definitions.
26 The following words and phrases when used in this article
27 shall have the meanings given to them in this section unless the
28 context clearly indicates otherwise:
29 "Board of school directors." A board of school directors of
30 a school district of the second class, third class or fourth
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1 class.
2 "Budgeted revenue." Local tax revenue. The term shall not
3 include revenue from any of the following:
4 (1) Delinquent taxes.
5 (2) Payments in lieu of taxes.
6 (3) The real estate transfer tax.
7 (4) The distribution of the public utility realty tax
8 imposed under Article XI-A of the act of March 4, 1971
9 (P.L.6, No.2), known as the Tax Reform Code of 1971.
10 (5) A mercantile or business privilege tax on gross
11 receipts.
12 (6) An amusement or admissions tax.
13 "Business." As defined in section 301 of the act of March 4,
14 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
15 "Consumer Price Index." The Consumer Price Index for All
16 Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,
17 Delaware and Maryland area for the most recent 12-month period
18 for which figures have been officially reported by the United
19 States Department of Labor, Bureau of Labor Statistics,
20 immediately prior to the date of the primary election at which
21 the referendum will be submitted to the voters.
22 "Current year." The fiscal year for which a tax is levied.
23 "Department." The Department of Community and Economic
24 Development of the Commonwealth.
25 "Domicile." As defined in section 13 of the act of December
26 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
27 Act.
28 "Dwelling." A structure used as a place of habitation by a
29 natural person.
30 "Earned income." All of the classes of income defined as
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1 earned income in section 13 of the act of December 31, 1965
2 (P.L.1257, No.511), known as The Local Tax Enabling Act.
3 "Election officials." The county board of elections of a
4 county.
5 "Employer." As defined in section 301 of the act of March 4,
6 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
7 "Farmstead." All buildings and structures on a farm not less
8 than ten contiguous acres in area, not otherwise exempt from
9 real property taxation or qualified for any other abatement or
10 exclusion pursuant to any other law, that are used primarily:
11 (1) to produce or store any farm product produced on the
12 farm for purposes of commercial agricultural production;
13 (2) to house or confine any animal raised or maintained
14 on the farm for the purpose of commercial agricultural
15 production;
16 (3) to store any agricultural supply to be used on the
17 farm in commercial agricultural production; or
18 (4) to store any machinery or equipment used on the farm
19 in commercial agricultural production.
20 This term shall only apply to farms used as the domicile of an
21 owner.
22 "Farmstead property." A farmstead for which an application
23 has been submitted and approved under 53 Pa.C.S. § 8584
24 (relating to administration and procedure).
25 "Homestead." A dwelling, including the parcel of land on
26 which the dwelling is located and the other improvements located
27 on the parcel for which any of the following apply:
28 (1) The dwelling is primarily used as the domicile of an
29 owner who is a natural person. The homestead for real
30 property qualifying under this paragraph shall not include
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1 the land on which the dwelling is located if the land is not
2 owned by a person who owns the dwelling.
3 (2) The dwelling is a unit in a condominium as the term
4 is defined in 68 Pa.C.S. § 3103 (relating to definitions) and
5 the unit is primarily used as the domicile of a natural
6 person who is an owner of the unit; or the dwelling is a unit
7 in a cooperative as the term is defined in 68 Pa.C.S. § 4103
8 (relating to definitions) and the unit is primarily used as
9 the domicile of a natural person who is an owner of the unit.
10 The homestead for a unit in a condominium or a cooperative
11 shall be limited to the assessed value of the unit, which
12 shall be determined in a manner consistent with the
13 assessment of real property taxes on those units under 68
14 Pa.C.S. (relating to real and personal property) or as
15 otherwise provided by law. If the unit is not separately
16 assessed for real property taxes, the homestead shall be a
17 pro rata share of the real property.
18 (3) The dwelling does not qualify under paragraphs (1)
19 and (2) and a portion of the dwelling is used as the domicile
20 of an owner who is a natural person. The homestead for real
21 property qualifying under this paragraph shall be the portion
22 of the real property that is equal to the portion of the
23 dwelling that is used as the domicile of an owner.
24 "Homestead property." A homestead for which an application
25 has been submitted and approved under 53 Pa.C.S. § 8584
26 (relating to administration and procedure).
27 "Local Tax Enabling Act." The act of December 31, 1965
28 (P.L.1257, No.511), known as The Local Tax Enabling Act.
29 "Local tax revenue." The revenue from taxes actually levied
30 and assessed by a school district. The term does not include
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1 interest or dividend earnings, Federal or State grants,
2 contracts or appropriations, income generated from operations or
3 any other source that is not derived from taxes levied and
4 assessed by a school district.
5 "Municipality." As defined in 1 Pa.C.S. § 1991 (relating to
6 definitions).
7 "Net profits." All of the classes of income defined as net
8 profits in section 13 of the act of December 31, 1965 (P.L.1257,
9 No.511), known as The Local Tax Enabling Act.
10 "Owner." Includes any of the following:
11 (1) A joint tenant or tenant in common.
12 (2) A person who is a purchaser of real property under a
13 contract.
14 (3) A partial owner.
15 (4) A person who owns real property as a result of being
16 a beneficiary of a will or trust or as a result of intestate
17 succession.
18 (5) A person who owns or purchases a dwelling on leased
19 land.
20 (6) A person who holds a life lease in real property
21 previously sold or transferred to another.
22 (7) A person in possession under a life estate.
23 (8) A grantor who has placed the real property in a
24 revocable trust.
25 (9) A member of a cooperative as defined in 68 Pa.C.S. §
26 4103 (relating to definitions).
27 (10) A unit owner of a condominium as defined in 68
28 Pa.C.S. § 3103 (relating to definitions).
29 (11) A partner of a family farm partnership or a
30 shareholder of a family farm corporation as the terms are
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1 defined in section 1101-C of the act of March 4, 1971 (P.L.6,
2 No.2), known as the Tax Reform Code of 1971.
3 "PERSONAL INCOME." INCOME ENUMERATED IN SECTION 303 OF THE <--
4 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
5 OF 1971, AS RETURNED TO AND ASCERTAINED BY THE DEPARTMENT OF
6 REVENUE, SUBJECT, HOWEVER, TO ANY CORRECTION THEREOF FOR FRAUD,
7 EVASION OR ERROR AS FINALLY DETERMINED BY THE COMMONWEALTH.
8 "Political subdivision." As defined in 1 Pa.C.S. § 1991
9 (relating to definitions).
10 "Preceding year." The fiscal year before the current year.
11 "Primarily used." Usage of at least 51% of the square
12 footage of a dwelling.
13 "Resident individual." An individual who is domiciled in a
14 school district.
15 "School district." A school district of the second class,
16 third class or fourth class.
17 "Statewide average weekly wage." That amount determined
18 annually for each calendar year by the Department of Labor and
19 Industry under section 105.1 of the act of June 2, 1915
20 (P.L.736, No.338), known as the Workers' Compensation Act.
21 "Succeeding year." The fiscal year following the current
22 year.
23 "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
24 known as the Tax Reform Code of 1971.
25 "Taxpayer." An individual required under this article to
26 file a tax return or to pay a tax.
27 Section 603-A. Scope and limitations.
28 (a) General rule.--Except as provided in subsection (b) and
29 section 605-A, it is the intent of this article to confer upon
30 each school district the power to levy, assess and collect an
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1 earned income and net profits tax OR PERSONAL INCOME TAX as set <--
2 forth in subdivision (c).
3 (b) Real estate transfer taxes.--This article shall not be
4 construed to affect the power of a school district to levy,
5 assess and collect a real estate transfer tax.
6 (c) Occupation tax.--This article shall not be construed to
7 affect the power of a school district to do any of the
8 following:
9 (1) To elect to place a referendum question on the
10 ballot pursuant to the act of June 22, 2001 (P.L.374, No.24),
11 known as the Optional Occupation Tax Elimination Act. A
12 school district may place such referendum question on the
13 ballot at the same municipal election as a referendum
14 question placed on the ballot pursuant to subdivision (b).
15 (2) To eliminate its occupation tax pursuant to the
16 Optional Occupation Tax Elimination Act.
17 Section 604-A. Preemption.
18 No act of the General Assembly shall be construed to vacate
19 or preempt any resolution adopted under this article providing
20 for the imposition of a tax by a school district unless the act
21 of the General Assembly expressly vacates or preempts the
22 authority to adopt the resolution.
23 Section 605-A. Certain rates of taxation limited.
24 If a municipality and school district both impose an earned
25 income and net profits tax on the same individual under the
26 Local Tax Enabling Act and the municipality and school district
27 are limited to or have agreed upon a division of the tax rate in
28 accordance with section 8 of the Local Tax Enabling Act, then
29 the municipality that continues to levy the earned income and
30 net profits tax under the Local Tax Enabling Act shall remain
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1 subject to that limitation or agreement in the event that the
2 school district opts to impose an earned income and net profits
3 tax under section 621-A.
4 (b) Tax Authorization
5 Section 611-A. General tax authorization.
6 Subject to sections 613-A and 614-A, each school district or
7 second class A county governed by a home rule charter may by
8 resolution levy, assess and collect or provide for the levying,
9 assessment and collection of an earned income and net profits
10 tax OR PERSONAL INCOME TAX under subdivision (c). <--
11 Section 611.1-A. Second Class A county optional imposition of
12 tax.
13 If a county which is a county of the second class A which is
14 governed by a home rule charter elects to impose the tax
15 authorized under section 611-A:
16 (1) The county shall make the election 30 days prior to
17 the school district's decision deadline. If the county does
18 not elect to impose the tax each school district shall still
19 have the option of imposing the tax in accordance with this
20 act.
21 (2) Section 613-A(e)(4) does not apply.
22 (3) No school district which is wholly within that
23 county shall impose the tax, unless the county ballot
24 question fails. If the county ballot question fails, the
25 school district may impose the tax in accordance with this
26 act at a later date.
27 (4) If the tax is imposed, the county may retain an
28 amount of money to cover the costs of collecting,
29 distributing and administrating the tax but that amount shall
30 not exceed 1% of the total amount collected.
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1 (5) In a school district that crosses county lines, the
2 residents of that school district would have two ballot
3 questions. If both ballot questions pass, the tax is paid
4 first to the school district and used as a credit against the
5 county tax. The county will reduce the amount payable to the
6 school district to the same proportion of actual money paid
7 to the county from residents of that school district in that
8 county after reducing the credit amount paid to the school
9 district.
10 (6) If the county ballot question is passed, the county
11 would give each school district an amount equal to the
12 homestead/farmstead amount up to one-half of the county
13 median school property tax under 53 Pa.C.S. Ch. 85 Subch. F
14 (relating to homestead property exclusion), which the school
15 district would then credit against the school taxes of the
16 residential properties that are in both that school district
17 and county. The credit shall not exceed 100% of the property
18 taxes of any residential property. Any amount in excess of
19 the 100% limitation must be used by the school district to
20 further reduce millage.
21 Section 612-A. Continuity of tax.
22 An earned income and net profits tax OR PERSONAL INCOME TAX <--
23 levied under the provisions of subdivision (c) shall continue in
24 force on a fiscal year basis without annual reenactment unless
25 the rate of tax is increased or the tax is subsequently
26 repealed.
27 Section 613-A. Adoption of referendum.
28 (a) General rule.--
29 (1) In order to levy an earned income and net profits
30 tax OR PERSONAL INCOME TAX under subdivision (c), a board of <--
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1 school directors shall use the procedures set forth in
2 subsection (b).
3 (2) A board of school directors after making an election
4 to levy an earned income and net profits tax OR PERSONAL <--
5 INCOME TAX under subdivision (c) may, after a period of at
6 least five full fiscal years, elect under the provisions of
7 subsection (c) to end participation under this subdivision.
8 If the electorate approves a referendum to do so, the board
9 of school directors may not continue to levy an earned income
10 and net profits tax OR PERSONAL INCOME TAX under subdivision <--
11 (c).
12 (b) Public referendum requirements.--Except as set forth in
13 subsection (d) the following apply:
14 (1) Subject to the notice and hearing requirements of
15 section 626-A, a board of school directors may levy the
16 earned income and net profits tax OR PERSONAL INCOME TAX <--
17 under subdivision (c) only by obtaining the approval of the
18 electorate of the affected school district in a public
19 referendum at only the municipal election preceding the
20 fiscal year when the earned income and net profits tax OR <--
21 PERSONAL INCOME TAX will be initially imposed. The county
22 board of elections shall cause the referendum question
23 required by this section to be submitted to the electors of
24 the school district.
25 (2) The referendum question shall state the initial rate
26 of the proposed earned income and net profits tax OR PERSONAL <--
27 INCOME TAX to be levied under subdivision (c), the reason for
28 the tax and the amount of proposed budgeted revenue growth,
29 if any, in the first fiscal year following adoption of the
30 referendum, expressed as a percent increase over the prior
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1 year's budgeted revenue. Any increase in budgeted revenue
2 between the first fiscal year following adoption of the
3 referendum and the prior year's budgeted revenue shall not
4 exceed 2%. The question shall be in clear language that is
5 readily understandable by a layperson. For the purpose of
6 illustration, a referendum question may be framed as follows:
7 Do you favor the imposition of an earned income and net <--
8 profits tax of X% X% (NAME OF TAX) to be used in order to <--
9 reduce residential real property taxes by X% and provide
10 for a one-time revenue increase of X% over the preceding
11 fiscal year?
12 A nonlegal interpretative statement shall accompany the
13 referendum question in accordance with section 201.1 of the act
14 of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
15 Election Code. A board of school directors of a school district
16 in which a referendum under this section has been approved shall
17 not be subject to the provisions of section 614-A for any future
18 increases in the earned income and net profits tax OR PERSONAL <--
19 INCOME TAX rates authorized under subdivision (c). If the
20 referendum question fails to receive a majority vote pursuant to
21 this section, approval of the electorate under section 614-A
22 shall not be required to levy any tax or increase the rate of
23 any tax which the board of school directors of the affected
24 school district is authorized to levy and increase pursuant to
25 any other act.
26 (c) Public referendum requirements for the municipal
27 election of 2003.--In addition to the provisions of subsection
28 (b), the following shall apply for the municipal election of
29 2003:
30 (1) The referendum question required by this section
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1 shall be submitted to the electors of each school district
2 for the municipal election of 2003.
3 (2) No later than August 5, 2003, the board of school
4 directors of each school district shall adopt the resolution
5 required under section 626-A authorizing the referendum
6 question. The resolution and the referendum question shall be
7 based on the calculation provided for under section 626-A(b).
8 (3) If the board of school directors fails to adopt the
9 resolution required under section 626-A by August 5, 2003,
10 the county board of elections shall prepare a referendum
11 question that authorizes an earned income and net profits tax
12 for the school district at the maximum rate permitted, based
13 on the calculation provided for under section 626-A(b).
14 (4) The county board of elections shall cause the
15 referendum question required by this subsection to be
16 submitted to the electors of the school district consistent
17 with the provisions of this section.
18 (d) Public referendum requirements to end participation
19 under this subdivision.--Subject to the notice and public
20 hearing requirements in section 4 of the Local Tax Enabling Act,
21 a board of school directors may elect to end participation under
22 this subdivision in accordance with subsection (a)(2) by
23 obtaining the approval of the electorate of the affected school
24 district in a public referendum at a municipal election.
25 (e) Nonapplicability.--This section shall not apply to any
26 of the following:
27 (1) A school district in which a referendum question
28 under 53 Pa.C.S. § 8703 (relating to adoption of referendum)
29 has been approved and implemented.
30 (2) A school district of the first class.
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1 (3) A school district of the first class A.
2 (4) A school district certified as distressed pursuant
3 to section 691 or an education empowerment district pursuant
4 to section 1705-B or 1707-B.
5 Section 614-A. Public referendum requirements for increasing
6 certain taxes.
7 (a) Applicability.--This section shall apply to the board of
8 school directors of a school district in which a referendum
9 under section 613-A is approved.
10 (b) Prohibitions.--Except as set forth in subsection (f),
11 unless there is compliance with subsection (c), a board of
12 school directors may not do any of the following:
13 (1) Increase the rate of a tax levied for the support of
14 the public schools by more than the percentage increase in
15 the Statewide average weekly wage in the preceding year or in
16 the percentage increase in the Consumer Price Index,
17 whichever is greater.
18 (2) Levy a tax for the support of the public schools
19 which was not levied in the fiscal year in which a referendum
20 under section 613-A was approved.
21 (3) Raise the rate of the earned income and net profits
22 tax, if already imposed under the authority of section 13 of
23 the Local Tax Enabling Act, except as otherwise provided for
24 under section 621-A.
25 (c) Referendum.--
26 (1) In order to take an action under subsection (b)(1),
27 at the primary election immediately preceding the fiscal year
28 in which the proposed tax increase would take effect:
29 (i) a referendum stating the specific rate or rates
30 of the tax increase must be submitted to the electors
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1 residing in the school district; and
2 (ii) a majority of the electors voting on the
3 referendum must approve the increase.
4 (2) In order to take an action under subsection (b)(2),
5 at the primary election immediately preceding the fiscal year
6 in which the proposed tax would take effect:
7 (i) a referendum stating the specific tax and rate
8 to be levied must be submitted to the electors residing
9 in the school district; and
10 (ii) a majority of the electors voting on the
11 referendum must approve the tax.
12 (d) Failure to approve referendum.--
13 (1) If there is no approval under subsection (c)(1)(ii),
14 the board of school directors may approve an increase in the
15 tax rate of not more than the percentage increase in the
16 Statewide average weekly wage in the preceding year or the
17 percentage increase in the Consumer Price Index, whichever is
18 greater.
19 (2) If there is no approval under subsection (c)(2)(ii),
20 the board of school directors may not levy the tax.
21 (e) Exception to general rule.--The provisions of subsection
22 (b)(1) shall not apply to an increase in the rate of any tax
23 levied for the support of the public schools which is less than
24 or equal to the percentage increase in the Statewide average
25 weekly wage in the preceding year or the percentage increase in
26 the Consumer Price Index, whichever is greater. Prior to any
27 increase under this subsection, the board of school directors
28 shall certify to the Department of Education the estimates of
29 local tax rates under this subsection. The Department of
30 Education may, on its own motion or on petition of a person
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1 having standing under subsection (j), revise the estimates
2 certified by the board of school directors and reduce the
3 allowable increase in the rate of any tax under this subsection.
4 (f) Referendum exceptions.--The provisions of subsection
5 (b)(1) shall not apply to an increase in the rate of any tax
6 levied for the support of the public schools where the increase
7 is necessary to respond to one or more of the following
8 conditions:
9 (1) To respond to or recover from an emergency or
10 disaster declared pursuant to 35 Pa.C.S. § 7301 (relating to
11 general authority of Governor) or 75 Pa.C.S. § 6108 (relating
12 to power of Governor during emergency), only for the duration
13 of the emergency or disaster.
14 (2) To implement a court order or an administrative
15 order from a Federal or State agency that requires the
16 expenditure of funds that exceed current available revenues,
17 provided that the rate increase is rescinded following
18 fulfillment of the court order or administrative order.
19 (3) (i) To pay interest and principal on any
20 indebtedness incurred under 53 Pa.C.S. Pt. VII Subpt. B
21 (relating to indebtedness and borrowing) prior to the
22 effective date of this section, provided that in no case
23 may the school district incur additional debt under this
24 paragraph, except for the refinancing of existing debt,
25 including the payment of costs and expenses related to
26 such refinancing and the establishment or funding of
27 appropriate debt service reserves and provided further
28 that the increase is rescinded following the final
29 payment of interest and principal.
30 (ii) The exception provided under this paragraph may
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1 not be used in lieu of the referendum under subsection
2 (c)(2) to pay for costs which could not be financed by
3 the issuance of debt under 53 Pa.C.S. (relating to
4 municipalities generally).
5 (4) To respond to conditions that pose an immediate
6 threat of serious physical harm or injury to the students,
7 staff or residents of the school district, but only until the
8 conditions causing the threat have been fully resolved.
9 (5) Special purpose tax levies approved by the
10 electorate.
11 (6) The basic education funding allocation and special
12 education funding allocation to the school district from the
13 Commonwealth for the year in which the tax rate increase
14 would take effect is equal to or less than the basic
15 education funding allocation and special education funding
16 allocation to the school district for the preceding fiscal
17 year.
18 (7) (i) To maintain per-student local tax revenue in
19 the school district at an amount not exceeding the amount
20 of per-student local tax revenue at the level of the
21 preceding year, adjusted for the percentage increase in
22 the Statewide average weekly wage or the percentage
23 increase in the Consumer Price Index, whichever is
24 greater.
25 (ii) This paragraph shall apply only if the
26 percentage growth in average daily membership in the
27 school district between the current fiscal year and the
28 third fiscal year immediately preceding the current
29 fiscal year exceeds 10%. For the purposes of this
30 paragraph, per-student local tax revenue shall be
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1 determined by dividing local tax revenue by average daily
2 membership.
3 (8) To make payments on behalf of active members of the
4 Public School Employees' Retirement System as required
5 pursuant to 24 Pa.C.S § 8327 (relating to payments by
6 employers), where the increase in the employer contribution
7 rate on behalf of active members as calculated under 24
8 Pa.C.S. § 8328 (relating to actuarial cost method) for the
9 school year for which payments are required is equal to or
10 greater than 200% of the employer contribution rate on behalf
11 of active members in effect for the school year prior to the
12 school year for which an exception under this paragraph is
13 sought.
14 (9) To pay extraordinary expenses incurred in providing
15 special education programs and services to students with
16 disabilities where the anticipated increase in expenditures
17 on special education programs and services is greater than
18 10% of the school district's total expenditures on special
19 education programs and services for the school year prior to
20 the school year for which an exception under this paragraph
21 is sought.
22 (10) To compensate for a one-year decrease of 10% or
23 more in the school district's real property tax base. For the
24 purposes of this paragraph, the decrease shall be measured by
25 the percent change in the assessed value of all taxable
26 property within the school district between the fiscal year
27 in which an exception under this paragraph is sought and the
28 fiscal year immediately preceding the fiscal year in which an
29 exception under this paragraph is sought.
30 (11) To pay costs associated with implementing new
20030S0100B1110 - 18 -
1 unfunded federally mandated educational programs.
2 (g) Revenue derived from increase.--Any revenue derived from
3 an increase in the rate of any tax allowed pursuant to an
4 exception under subsection (f)(3) or (5) shall not exceed the
5 anticipated dollar value of the expenditure for which the
6 exception under subsection (f) was sought.
7 (h) Limitation on rate.--The increase in the rate of any tax
8 allowed pursuant to an exception under subsection (f)(1), (2),
9 (4), (6), (7), (8), (9), (10) or (11) shall not exceed the rate
10 increase required as determined by a court of common pleas
11 pursuant to subsection (i).
12 (i) Court action.--Prior to the imposition of the tax
13 increase under subsection (f)(1), (2), (4), (6), (7), (8), (9),
14 (10) or (11), approval by the court of common pleas in the
15 judicial district in which the administrative office of the
16 school district is located must be obtained. The board of school
17 directors shall publish in a newspaper of general circulation a
18 notice of its intent to file an action under this subsection at
19 least one week prior to the filing of the petition. The board of
20 school directors shall also publish in a newspaper of general
21 circulation notice, as soon as possible following notification
22 from the court that a hearing has been scheduled, stating the
23 date, time and place of the hearing on the petition. The
24 following shall apply to any proceedings instituted under this
25 subsection:
26 (1) The board of school directors must prove by clear
27 and convincing evidence the necessity for the tax increase.
28 (2) The board of school directors must prove by clear
29 and convincing evidence the anticipated dollar value of the
30 expenditure for which an exception under subsection (f) is
20030S0100B1110 - 19 -
1 sought.
2 (3) The board of school directors must prove by clear
3 and convincing evidence that there are no assets or other
4 feasible alternatives available to the school district.
5 (4) The court shall determine the dollar value of the
6 expenditure for which an exception under subsection (f) is
7 sought, the rate increase required and the appropriate
8 duration of the increase. The court may retain continuing
9 jurisdiction and may, on its own motion or on petition of an
10 interested party, revoke approval for or order rescission of
11 a tax increase.
12 (j) Standing.--A person shall have standing as a party to a
13 proceeding under this section as long as the person resides
14 within or pays real property taxes to the taxing jurisdiction of
15 the board of school directors instituting the action.
16 Section 615-A. Property tax limits on reassessment.
17 After any county makes a countywide revision of assessment of
18 real property at values based upon an established predetermined
19 ratio as required by law or after any county changes its
20 established predetermined ratio, a board of school directors in
21 a school district in which a referendum under section 613-A has
22 been approved, which after the effective date of this section
23 for the first time levies its real estate taxes on that revised
24 assessment or valuation, shall for the first year reduce its tax
25 rate, if necessary, for the purpose of having the percentage
26 increase in taxes levied for that year against the real
27 properties contained in the duplicate for the preceding year be
28 less than or equal to the percentage increase in the Statewide
29 average weekly wage for the preceding year notwithstanding the
30 increased valuations of such properties under the revised
20030S0100B1110 - 20 -
1 assessment. For the purpose of determining the total amount of
2 taxes to be levied for the first year, the amount to be levied
3 on newly constructed buildings or structures or on increased
4 valuations based on new improvements made to existing houses
5 need not be considered. The tax rate shall be fixed for that
6 year at a figure which will accomplish this purpose. The
7 provisions of section 614-A shall apply to increases in the tax
8 rate above the limits provided in this section.
9 (c) Earned Income and Net Profits Tax <--
10 (C) EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX <--
11 Section 621-A. Authorization.
12 (a) Earned income and net profits tax authorized.--A board <--
13 (A) GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS MAY CHOOSE TO <--
14 LEVY, ASSESS AND COLLECT A TAX ON EARNED INCOME AND NET PROFITS
15 OR A PERSONAL INCOME TAX UNDER THIS SECTION.
16 (B) EARNED INCOME AND NET PROFITS TAX.--
17 (1) A BOARD of school directors may levy, assess and
18 collect a tax on the earned income and net profits of
19 resident individuals of the school district at a rate
20 determined by the board of school directors.
21 (b) Tax rates determined.--The earned income and net profits <--
22 (2) THE EARNED INCOME AND NET PROFITS tax authorized <--
23 under subsection (a) PARAGRAPH (1) shall not be less than the <--
24 rate required to provide an exclusion for farmstead property
25 and an exclusion for homestead property equal to 50% of the
26 maximum exclusion under 53 Pa.C.S. § 8586 (relating to
27 limitations) and shall not exceed the rate required to
28 provide an exclusion for farmstead property and an exclusion
29 for homestead property equal to the maximum exclusion under
30 53 Pa.C.S. § 8586. The board of school directors shall round
20030S0100B1110 - 21 -
1 the rate of the earned income and net profits tax OR PERSONAL <--
2 INCOME TAX levied pursuant to this section to the nearest
3 tenth of a percent. The exclusion for farmstead property
4 granted under this section shall not exceed the amount
5 granted for the exclusion for homestead property.
6 (C) PERSONAL INCOME TAX.-- <--
7 (1) A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
8 COLLECT A TAX ON THE PERSONAL INCOME OF RESIDENT INDIVIDUALS
9 OF THE SCHOOL DISTRICT AT A RATE DETERMINED BY THE BOARD OF
10 SCHOOL DIRECTORS.
11 (2) THE PERSONAL INCOME TAX AUTHORIZED UNDER SUBSECTION
12 (B)(1) SHALL EQUAL THE SUM OF THE RATE REQUIRED TO GENERATE
13 THE SAME AMOUNT OF EARNED INCOME AND NET PROFITS IMPOSED BY
14 THE SCHOOL DISTRICT PRIOR TO THE ADOPTION OF THIS SUBSECTION
15 AND TO PROVIDE AN EXCLUSION FOR FARMSTEAD PROPERTY AND AN
16 EXCLUSION FOR HOMESTEAD PROPERTY EQUAL TO 50% OF THE MAXIMUM
17 EXCLUSION UNDER 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS)
18 AND SHALL NOT EXCEED THE RATE REQUIRED TO PROVIDE AN
19 EXCLUSION FOR FARMSTEAD PROPERTY AND AN EXCLUSION FOR
20 HOMESTEAD PROPERTY EQUAL TO THE MAXIMUM EXCLUSION UNDER 53
21 PA.C.S. § 8586. THE BOARD OF SCHOOL DIRECTORS SHALL ROUND THE
22 RATE OF THE PERSONAL INCOME TAX PURSUANT TO THIS SECTION TO
23 THE NEAREST TENTH OF A PERCENT. THE EXCLUSION FOR FARMSTEAD
24 PROPERTY GRANTED UNDER THIS SECTION SHALL NOT EXCEED THE
25 AMOUNT GRANTED FOR THE EXCLUSION FOR HOMESTEAD PROPERTY.
26 (3) IF A BOARD OF SCHOOL DIRECTORS ELECTS TO IMPOSE A
27 PERSONAL INCOME TAX UNDER THIS SUBSECTION, THE BOARD OF
28 SCHOOL DIRECTORS SHALL NOT BE PERMITTED TO IMPOSE THE EARNED
29 INCOME AND NET PROFITS TAX UNDER SUBSECTION (A) OR UNDER THE
30 ACT OF DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE
20030S0100B1110 - 22 -
1 LOCAL TAX ENABLING ACT.
2 (D) PROHIBITIONS.--A SCHOOL DISTRICT THAT LEVIES A LOCAL
3 PERSONAL INCOME TAX UNDER THIS SECTION SHALL HAVE NO POWER TO
4 LEVY, ASSESS OR COLLECT THE EARNED INCOME AND NET PROFITS TAX
5 UNDER THIS SECTION.
6 Section 622-A. Collections.
7 A (A) GENERAL RULE.--EXCEPT AS OTHERWISE PROVIDED IN <--
8 SUBSECTION (B), A board of school directors imposing a tax under
9 section 621-A shall designate the tax officer who is appointed
10 under section 10 of the Local Tax Enabling Act, or otherwise by
11 law, as the collector of the earned income and net profits tax
12 OR PERSONAL INCOME TAX. In the performance of the tax collection <--
13 duties under this subdivision, the designated tax officer shall
14 have all the same powers, rights, responsibilities and duties
15 for the collection of the taxes which may be imposed under the
16 Local Tax Enabling Act, 53 Pa.C.S. Ch. 84, Subch. C (relating to
17 local taxpayers bill of rights) or as otherwise provided by law.
18 (B) ALTERNATIVE TAX COLLECTOR APPOINTED.--ANY SCHOOL <--
19 DISTRICT IMPOSING A TAX UPON PERSONAL INCOME UNDER THE AUTHORITY
20 OF SECTION 621-A MAY ENTER INTO AN AGREEMENT WITH THE DEPARTMENT
21 OF REVENUE FOR THE COLLECTION OF THAT TAX BY THE DEPARTMENT OF
22 REVENUE IN CONJUNCTION WITH THE COLLECTION OF ANY TAX ON
23 PERSONAL INCOME IMPOSED BY THE COMMONWEALTH UNDER THE AUTHORITY
24 OF THE TAX REFORM CODE. THE AGREEMENT AUTHORIZED BY THIS
25 SUBSECTION SHALL CONTAIN A PROVISION APPOINTING THE DEPARTMENT
26 OF REVENUE AS THE TAX OFFICER WITHIN THE MEANING OF THIS
27 SECTION. THE DEPARTMENT OF REVENUE, BY REGULATION, SHALL
28 ESTABLISH THE PROCEDURES FOR COLLECTING THAT TAX AND PAYING THE
29 FULL AMOUNT COLLECTED OVER TO THE SCHOOL DISTRICT.
30 (C) COLLECTION AND REMITTANCE AGREEMENT.--IF THE BOARD OF
20030S0100B1110 - 23 -
1 SCHOOL DIRECTORS CHOOSES TO IMPOSE THE PERSONAL INCOME TAX UNDER
2 THIS SECTION, THE BOARD OF SCHOOL DIRECTORS MAY CONTRACT WITH
3 THE DEPARTMENT OF REVENUE TO COLLECT THE TAX AND REMIT IT TO THE
4 SCHOOL DISTRICT ON A REGULAR BASIS.
5 Section 623-A. Credits.
6 (a) General rule.--The provisions of section 14 of the Local
7 Tax Enabling Act shall be applied by a board of school directors
8 to determine any credits under the provisions of this
9 subdivision for a tax imposed under section 621-A.
10 (b) Tax credit.--Notwithstanding any other provisions of law
11 to the contrary, the following apply:
12 (1) This subsection only applies to a taxpayer who is
13 not a resident of a city of the first class but who is
14 subject to the tax on salaries, wages, commissions or other
15 compensation imposed by a city of the first class under the
16 authority of the act of August 5, 1932 (Sp.Sess., P.L.45,
17 No.45), referred to as the Sterling Act.
18 (2) Payment of a tax on salaries, wages, commissions or
19 other compensation to a school district by residents of the
20 school district shall be credited and paid to the school
21 district of residence and allowed as a deduction from the
22 liability of the taxpayer for personal income tax due to the
23 Commonwealth under section 302 of the Tax Reform Code. The
24 deduction shall not exceed the liability of the taxpayer for
25 any other tax on salaries, wages, commissions or other
26 compensation imposed by a city of the first class under the
27 authority of the Sterling Act.
28 Section 624-A. Earned income and net profits tax exemption.
29 A school district that imposes a tax under section 621-A may <--
30 (A) GENERAL RULE.--A SCHOOL DISTRICT THAT IMPOSES AN EARNED <--
20030S0100B1110 - 24 -
1 INCOME AND NET PROFITS TAX UNDER SECTION 621-A MAY exempt from
2 the payment of that tax any person whose total income from all
3 sources is less than $10,000.
4 (B) APPLICABILITY.--THE PROVISIONS OF SECTION 304 OF THE TAX <--
5 REFORM CODE SHALL APPLY TO THE LOCAL PERSONAL INCOME TAX BY ANY
6 SCHOOL DISTRICT THAT LEVIES A TAX ON PERSONAL INCOME OF
7 RESIDENTS UNDER SECTION 621-A(B).
8 Section 625-A. Rules and regulations.
9 A tax imposed under section 621-A shall be subject to all <--
10 regulations adopted under section 13 of the Local Tax Enabling
11 Act. A school district A SCHOOL DISTRICT THAT IMPOSES: <--
12 (1) AN EARNED INCOME AND NET PROFITS TAX UNDER SECTION
13 621-A SHALL BE SUBJECT TO ALL REGULATIONS ADOPTED UNDER
14 SECTION 13 OF THE LOCAL TAX ENABLING ACT AND may adopt
15 regulations for the processing of claims for credits or
16 exemptions under sections 623-A and 624-A; OR <--
17 (2) A PERSONAL INCOME TAX UNDER SECTION 621-A SHALL BE
18 SUBJECT TO ALL REGULATIONS ADOPTED BY THE DEPARTMENT OF
19 REVENUE IN ADMINISTERING THE TAX DUE TO THE COMMONWEALTH
20 UNDER SECTION 302 OF THE TAX REFORM CODE.
21 Section 626-A. Procedure and administration.
22 (a) Levy.--In order to levy a tax under section 621-A, the
23 board of school directors shall adopt a resolution which shall
24 refer to this subdivision prior to placing a referendum question
25 on the ballot under section 613-A. Prior to adopting a
26 resolution imposing a tax under section 621-A, the board of
27 school directors shall give public notice of its intent to adopt
28 the resolution in the manner provided by section 4 of the Local
29 Tax Enabling Act and shall conduct at least one public hearing
30 regarding the proposed adoption of the resolution.
20030S0100B1110 - 25 -
1 (b) Calculation.--For the purposes of proposing a resolution
2 and referendum under section 613-A(c), the board of school
3 directors shall calculate:
4 (1) The value of homestead property in the school
5 district by dividing the total assessed value of residential
6 property in the school district in calendar year 2002, as
7 compiled by the State Tax Equalization Board, by the total
8 number of owner-occupied housing units in the school district
9 as reported by the United States Census Bureau for the 2000
10 census in Summary File 1.
11 (2) The maximum homestead exclusion by multiplying the
12 quotient from paragraph (1) by 0.50.
13 (3) The proposed homestead exclusion for the school
14 district by multiplying the product from paragraph (2) by a
15 number as determined by the board of school directors,
16 providing that such number is greater than or equal to 0.50
17 and less than or equal to 1.0.
18 (4) The proposed reduction in real property taxes for
19 the school district by multiplying the product from paragraph
20 (3) by the real property tax millage rate of the school
21 district in effect for the 2001-2002 school year.
22 Section 627-A. Disposition of earned income and net profits tax
23 OR PERSONAL INCOME TAX revenue. <--
24 The disposition of revenue from a tax or an increase in the
25 rate of a tax imposed by school districts under section 621-A
26 shall occur in the following manner:
27 (1) For the fiscal year of implementation of a newly
28 imposed income tax, all earned income and net profits tax <--
29 revenue REVENUE FROM A NEWLY IMPOSED INCOME TAX received by a <--
30 school district shall be used to provide for an amount equal
20030S0100B1110 - 26 -
1 to the earned income and net profits tax revenue over the
2 preceding fiscal year; an increase in budgeted revenues over
3 the preceding fiscal year in accordance with the amount
4 specified in the referendum question approved by the voters
5 under section 613-A; and a reduction in the school district
6 real property tax by means of an exclusion for farmstead
7 property and homestead property pursuant to section 621-A.
8 (2) For the fiscal year of implementation of an increase
9 in the rate of the existing tax imposed under section 621-A,
10 all revenue received by a school district directly
11 attributable to the increased rate shall be used to reduce
12 the school district real property tax by means of an
13 exclusion for farmstead property and homestead property
14 pursuant to section 621-A.
15 (d) Homestead Exclusion
16 Section 691-A. Changes to the amount of the homestead
17 exclusion.
18 (a) Increases in the homestead exclusion.--A school district
19 may increase the amount of the exclusion for homestead property
20 required pursuant to section 627-A consistent with the
21 prohibitions in 53 Pa.C.S. § 8586 (relating to limitations).
22 (b) Decreases in the homestead exclusion.--A school district
23 may only reduce the exclusion for homestead property below the
24 level authorized pursuant to the referendum required under
25 section 613-A, subsection (c) and section 692-A(d) when the
26 median assessed value used in calculating the homestead
27 exclusion decreases.
28 (c) Reassessment.--After a revision of assessments by means
29 of revaluing all properties, the governing body providing an
30 exclusion for homestead property under section 613-A shall
20030S0100B1110 - 27 -
1 adjust the amount of the exclusion pursuant to 53 Pa.C.S. §
2 8583(e) (relating to exclusion for homestead property).
3 Section 692-A. Homestead exclusion process.
4 (a) Listing required.--Not later than September 1, 2003, and
5 not later than September 1 of each year thereafter, the board of
6 school directors of each school district shall compile a listing
7 of all real property within the school district that it believes
8 to be qualified as a homestead or a farmstead as those terms are
9 defined under 53 Pa.C.S § 8401 (relating to definitions) or 8582
10 (relating to definitions). The school district shall use
11 information or statements from the owners or residents of the
12 property and shall consult with the assessor of the county in
13 compiling the list. This listing may be compiled at the same
14 time as the enumeration of school children is performed pursuant
15 to section 1351.
16 (b) Notification to homestead owners.--If the electors of a
17 school district approve a referendum question pursuant to
18 section 613-A, the board of school directors shall, by first
19 class mail, notify the owners of each homestead and each
20 farmstead on the listing required by this section that
21 submitting an application is required under 53 Pa.C.S. Ch. 85
22 Subch. F (relating to homestead property exclusion) prior to the
23 property being qualified for any homestead or farmstead
24 exclusion authorized by law. The notice required by this section
25 shall include a copy of the application required by the assessor
26 of the county where the property is located and the instructions
27 for completing and returning the application.
28 (c) Calculation of the homestead and farmstead exclusion.--
29 The listing of homesteads and farmsteads required to be compiled
30 under this section shall be used by the school district in
20030S0100B1110 - 28 -
1 estimating the amount of the homestead exclusion and farmstead
2 exclusion for purposes of a referendum question under section
3 613-A(b).
4 (d) Revisions to the initial calculation of homestead and
5 farmstead exclusion for school districts.--If the electors of a
6 school district approve a referendum question pursuant to 613-
7 A(c), the board of school directors shall revise the calculation
8 utilized under section 626-A(b) with information derived from
9 the listing required under subsection (a) no later than March 1,
10 2004. Such revised calculation shall be used to provide
11 homestead and farmstead exclusions. Where the tax imposed under
12 section 621-A is insufficient to provide the homestead and
13 farmstead exclusions authorized through approval of a referendum
14 question, the exclusions may be reduced accordingly.
15 (e) Appeals.--Real property for which an application under
16 53 Pa.C.S. § 8584 (relating to administration and procedure) has
17 been filed by March 1, 2004, shall be deemed to be a homestead
18 property or farmstead property, as the case may be, for the
19 purposes of implementing a homestead or farmstead exclusion
20 under 53 Pa.C.S. § 8717 (relating to disposition of earned
21 income and net profits tax revenue) in the school district
22 fiscal year beginning July 1, 2004, unless the assessor denies
23 the application within the time provided by law and the denial
24 is unappealed or unappealable. The school district is authorized
25 to collect taxes, interest and penalties relating to a homestead
26 or farmstead exclusion that is denied after the denial is
27 unappealed or unappealable.
28 (f) Reports.--In addition to the report required under 53
29 Pa.C.S. § 8584(i), the assessor shall be required to provide a
30 supplemental report containing the information required under 53
20030S0100B1110 - 29 -
1 Pa.C.S. § 8584(i) for applications filed by March 1, 2004. The
2 date of the supplemental report shall be set by the school
3 district, but shall not be earlier than June 1, 2004.
4 (g) Applicability.--Subsections (b), (c), (d), (e), (f) and
5 (g) shall apply only to school districts that approve a
6 referendum under section 613-A at the 2003 municipal election.
7 (e) Register
8 Section 693-A. Register for taxes.
9 (a) General rule.--The department shall maintain an official
10 continuing register supplemented annually of all earned income
11 and net profits taxes OR PERSONAL INCOME TAXES levied under <--
12 subdivision (c).
13 (b) Contents of register.--The register shall list:
14 (1) The school districts levying the tax.
15 (2) The rate of tax as stated in the resolution levying
16 the tax.
17 (3) The rate on taxpayers.
18 (4) The name and address of the official responsible for
19 administering the collection of the tax and from whom
20 information, forms and copies of regulations are available.
21 Section 694-A. Information for register.
22 Information for the register shall be furnished by the school
23 district to the department as prescribed by the department. The
24 information must be received by the department no later than
25 July 15 of each year to show new tax enactments, repeals and
26 changes. Failure to comply with the filing date may result in
27 the omission of the tax levy from the register for that year.
28 Failure of the department to receive information of taxes
29 continued without change may be construed by the department to
30 mean that the information contained in the previous register
20030S0100B1110 - 30 -
1 remains in force.
2 Section 695-A. Availability and effective period of register.
3 The register, with such annual supplements as may be required
4 by new tax enactments, repeals or changes, shall be available
5 upon request no later than August 15 of each year. The effective
6 period for each register shall be from July 1 of the year in
7 which it is issued to June 30 of the following year.
8 Section 696-A. Effect of nonfiling.
9 Employers shall not be required by any ordinance to withhold
10 from the compensation of their employees any local earned income
11 and net profits tax OR PERSONAL INCOME TAX imposed under <--
12 subdivision (c) which is not listed in the register or to make
13 reports of compensation in connection with taxes not so listed.
14 If the register is not available by August 15, the register of
15 the previous year shall continue to be effective for an
16 additional period of not more than one year.
17 Section 697-A. Effect of subdivision on liability of taxpayer.
18 The provisions of this subdivision shall not be construed to
19 affect the liability of any taxpayer for taxes lawfully imposed
20 under subdivisions (b) and (c).
21 Section 3. Section 1714-B(g) of the act, added May 10, 2000
22 (P.L.44, No.16), is amended to read:
23 Section 1714-B. Mandate Waiver Program.--* * *
24 (g) The following provisions of this act shall not be
25 subject to waiver pursuant to this section: sections 108, 110,
26 111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
27 443, 510, 513, 518, 527, 701.1, 708, 736, 737, 738, 739, 740,
28 741, 752, 753, 755, 771, 776, 777, 808, 809, 810, 1303(a), 1310,
29 1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330, 1332, 1361,
30 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546 and 1547;
20030S0100B1110 - 31 -
1 provisions prohibiting discrimination; Articles VI, VI-A, XI,
2 XI-A, XII, XIII-A, XIV and XVII-A and this article.
3 * * *
4 Section 4. The addition of section 614-A(f)(6), (8), (9),
5 (10) and (11) of the act shall apply to school districts in
6 which a referendum question under 53 Pa.C.S. § 8703 has been
7 approved and implemented.
8 Section 5. This act shall take effect immediately.
9 SECTION 1. SECTION 679 OF THE ACT OF MARCH 10, 1949 (P.L.30, <--
10 NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, AMENDED
11 NOVEMBER 26, 1982 (P.L.760, NO.215), IS AMENDED TO READ:
12 SECTION 679. PER CAPITA TAXES.--EACH RESIDENT OR INHABITANT,
13 OVER EIGHTEEN YEARS OF AGE, IN EVERY SCHOOL DISTRICT OF THE
14 SECOND, THIRD, AND FOURTH CLASS, WHICH SHALL LEVY SUCH TAX,
15 SHALL ANNUALLY PAY, FOR THE USE OF THE SCHOOL DISTRICT IN WHICH
16 HE OR SHE IS A RESIDENT OR INHABITANT, A PER CAPITA TAX OF NOT
17 LESS THAN ONE DOLLAR NOR MORE THAN FIVE DOLLARS, AS MAY BE
18 ASSESSED BY THE LOCAL SCHOOL DISTRICT. THE TAX COLLECTOR SHALL
19 NOT PROCEED AGAINST A SPOUSE OR HIS EMPLOYER UNTIL HE HAS
20 PURSUED REMEDIES AGAINST THE DELINQUENT TAXPAYER AND THE
21 TAXPAYER'S EMPLOYER UNDER THIS SECTION.
22 EACH SCHOOL DISTRICT MAY EXEMPT ANY PERSON WHOSE TOTAL INCOME
23 FROM ALL SOURCES IS LESS THAN [FIVE THOUSAND DOLLARS] TEN
24 THOUSAND DOLLARS PER ANNUM FROM ITS PER CAPITA TAX OR ANY
25 PORTION THEREOF. THE SCHOOL DISTRICT MAY ADOPT AND EMPLOY
26 REGULATIONS FOR THE PROCESSING OF CLAIMS FOR THE EXEMPTION.
27 SECTION 2. SECTION 696(H)(1) OF THE ACT, AMENDED JUNE 29,
28 2002 (P.L.524, NO.88), IS AMENDED TO READ:
29 SECTION 696. DISTRESS IN SCHOOL DISTRICTS OF THE FIRST
30 CLASS.--* * *
20030S0100B1110 - 32 -
1 (H) THE SCHOOL REFORM COMMISSION SHALL BE RESPONSIBLE FOR
2 FINANCIAL MATTERS RELATED TO THE DISTRESSED SCHOOL DISTRICT OF
3 THE FIRST CLASS AND:
4 (1) [ALL] EXCEPT AS PROVIDED IN ARTICLE VI-C, ALL TAXES
5 AUTHORIZED TO BE LEVIED BY A SCHOOL DISTRICT OF THE FIRST CLASS
6 OR FOR A SCHOOL DISTRICT OF THE FIRST CLASS BY A CITY OR COUNTY
7 OF THE FIRST CLASS ON THE DATE OF THE DECLARATION OF DISTRESS
8 SHALL CONTINUE TO BE AUTHORIZED AND LEVIED IN ACCORDANCE WITH
9 THIS ACT AND SHALL BE TRANSMITTED TO THE SCHOOL DISTRICT. FOR
10 THE FIRST FISCAL YEAR OR PART THEREOF AND EVERY FISCAL YEAR
11 THEREAFTER IN WHICH THE SCHOOL DISTRICT IS DECLARED TO BE
12 DISTRESSED, THE AMOUNT APPROPRIATED OR PAID BY THE CITY OR
13 COUNTY TO THE SCHOOL DISTRICT AND THE TAX AUTHORIZED BY THE CITY
14 OR COUNTY TO BE LEVIED FOR THE SCHOOL DISTRICT OR DEDICATED TO
15 THE SCHOOL DISTRICT SHALL BE AN AMOUNT OR TAX NOT LESS THAN THE
16 HIGHEST AMOUNT PAID BY THE CITY OR COUNTY TO THE SCHOOL DISTRICT
17 OR AUTHORIZED BY THE CITY OR COUNTY TO BE LEVIED FOR THE SCHOOL
18 DISTRICT OR DEDICATED TO THE SCHOOL DISTRICT DURING ANY OF THE
19 THREE FULL PRECEDING FISCAL YEARS. IN ADDITION, THE CITY OF THE
20 FIRST CLASS SHALL PROVIDE TO THE SCHOOL DISTRICT OF THE FIRST
21 CLASS ALL OTHER AVAILABLE LOCAL NON-TAX REVENUE, INCLUDING
22 GRANTS, SUBSIDIES OR PAYMENTS MADE DURING THE PRIOR YEAR.
23 * * *
24 SECTION 3. THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
25 ARTICLE VI-A
26 TAXATION BY SCHOOL DISTRICTS
27 (A) GENERAL PROVISIONS
28 SECTION 601-A. SHORT TITLE OF ARTICLE.
29 THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER
30 CHOICE ACT.
20030S0100B1110 - 33 -
1 SECTION 602-A. DEFINITIONS.
2 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
3 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
4 CONTEXT CLEARLY INDICATES OTHERWISE:
5 "ASSESSOR." AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
6 DEFINITIONS).
7 "AVERAGE INDEX" OR "INDEX." THE AVERAGE OF THE PERCENTAGE
8 INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE AND THE EMPLOYMENT
9 COST INDEX CALCULATED BY THE DEPARTMENT OF EDUCATION AND
10 PUBLISHED IN THE PENNSYLVANIA BULLETIN UNDER SECTION 614-A(K).
11 "BOARD OF SCHOOL DIRECTORS." A BOARD OF SCHOOL DIRECTORS OF
12 A SCHOOL DISTRICT OF THE FIRST CLASS A, SECOND CLASS, THIRD
13 CLASS OR FOURTH CLASS.
14 "CURRENT YEAR." THE FISCAL YEAR FOR WHICH A TAX IS LEVIED.
15 "DOMICILE." AS DEFINED IN SECTION 13 OF THE ACT OF DECEMBER
16 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
17 ACT.
18 "EARNED INCOME." AS DEFINED IN SECTION 13 OF THE ACT OF
19 DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
20 ENABLING ACT.
21 "ELECTION OFFICIALS." THE COUNTY BOARD OF ELECTIONS OF A
22 COUNTY.
23 "EMPLOYER." AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
24 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
25 "EMPLOYMENT COST INDEX." THE MOST RECENT OFFICIAL FIGURES,
26 FOR THE PREVIOUS 12-MONTH PERIOD FOR THE EMPLOYMENT COST INDEX
27 SERIES FOR ELEMENTARY AND SECONDARY SCHOOLS, REPORTED BY THE
28 BUREAU OF LABOR STATISTICS OF THE DEPARTMENT OF LABOR.
29 "FARMSTEAD." AS DEFINED IN 53 PA.C.S. §8582 (RELATING TO
30 DEFINITIONS).
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1 "FARMSTEAD PROPERTY." A FARMSTEAD FOR WHICH AN APPLICATION
2 HAS BEEN SUBMITTED AND APPROVED UNDER 53 PA.C.S. § 8584
3 (RELATING TO ADMINISTRATION AND PROCEDURE).
4 "FUND." THE PROPERTY TAX RELIEF FUND.
5 "HOMESTEAD." AS DEFINED IN 53 PA.C.S. § 8401 (RELATING TO
6 DEFINITIONS).
7 "HOMESTEAD PROPERTY." A HOMESTEAD FOR WHICH AN APPLICATION
8 HAS BEEN SUBMITTED AND APPROVED UNDER 53 PA.C.S. § 8584
9 (RELATING TO ADMINISTRATION AND PROCEDURE).
10 "INCOME TAX." A TAX ON EARNED INCOME AND NET PROFITS OR A
11 TAX ON PERSONAL INCOME IMPOSED PURSUANT TO THIS ARTICLE.
12 "LOCAL TAX ENABLING ACT." THE ACT OF DECEMBER 31, 1965
13 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
14 "LOCAL TAX REVENUE." THE REVENUE FROM TAXES ACTUALLY LEVIED
15 AND ASSESSED BY A SCHOOL DISTRICT. THE TERM DOES NOT INCLUDE
16 INTEREST OR DIVIDEND EARNINGS, FEDERAL OR STATE GRANTS,
17 CONTRACTS OR APPROPRIATIONS, INCOME GENERATED FROM OPERATIONS OR
18 ANY OTHER SOURCE THAT IS NOT DERIVED FROM TAXES LEVIED AND
19 ASSESSED BY A SCHOOL DISTRICT.
20 "MUNICIPALITY." AS DEFINED IN 1 PA.C.S. § 1991 (RELATING TO
21 DEFINITIONS).
22 "NET PROFITS." AS DEFINED IN SECTION 13 OF THE ACT OF
23 DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
24 ENABLING ACT.
25 "PERSONAL INCOME." INCOME ENUMERATED IN SECTION 303 OF THE
26 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
27 OF 1971, AS RETURNED TO AND ASCERTAINED BY THE DEPARTMENT OF
28 REVENUE, SUBJECT, HOWEVER, TO ANY CORRECTION THEREOF FOR FRAUD,
29 EVASION OR ERROR AS FINALLY DETERMINED BY THE COMMONWEALTH.
30 "POLITICAL SUBDIVISION." AS DEFINED IN 1 PA.C.S. § 1991
20030S0100B1110 - 35 -
1 (RELATING TO DEFINITIONS).
2 "PRECEDING YEAR." THE FISCAL YEAR BEFORE THE CURRENT YEAR.
3 "RESIDENT INDIVIDUAL." AN INDIVIDUAL WHO IS DOMICILED IN A
4 SCHOOL DISTRICT.
5 "SCHOOL DISTRICT." A SCHOOL DISTRICT OF THE FIRST CLASS A,
6 SECOND CLASS, THIRD CLASS OR FOURTH CLASS.
7 "STATEWIDE AVERAGE WEEKLY WAGE." THAT AMOUNT DETERMINED
8 ANNUALLY FOR EACH CALENDAR YEAR BY THE DEPARTMENT OF LABOR AND
9 INDUSTRY UNDER SECTION 105.1 OF THE ACT OF JUNE 2, 1915
10 (P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT.
11 "SUCCEEDING YEAR." THE FISCAL YEAR FOLLOWING THE CURRENT
12 YEAR.
13 "TAX REFORM CODE." THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
14 KNOWN AS THE TAX REFORM CODE OF 1971.
15 "TAXPAYER." AN INDIVIDUAL REQUIRED UNDER THIS ARTICLE TO
16 FILE A TAX RETURN OR TO PAY A TAX.
17 SECTION 603-A. INTENT; SCOPE AND LIMITATIONS.
18 (A) INTENT.--
19 (1) IT IS THE INTENT OF THIS ARTICLE TO ULTIMATELY
20 PROVIDE QUALIFYING SCHOOL DISTRICTS WITH STATE FUNDS WHICH,
21 WHEN SUPPLEMENTED WITH THE MINIMUM LOCAL CONTRIBUTION, ARE
22 SUFFICIENT SO THAT SCHOOL DISTRICTS IN THE AGGREGATE ARE ABLE
23 TO REDUCE PROPERTY TAXES ON HOMESTEAD PROPERTY AND FARMSTEAD
24 PROPERTY BY $5 FOR EVERY DOLLAR OF LOCAL CONTRIBUTION.
25 (2) IT IS THE INTENT OF THIS ARTICLE TO PERMIT SCHOOL
26 DISTRICTS TO SUPPLEMENT THE MINIMUM LOCAL CONTRIBUTION AND
27 THE STATE FUNDS WITH ADDITIONAL LOCAL FUNDS TO PERMIT FURTHER
28 REDUCTIONS IN PROPERTY TAXES ON HOMESTEAD PROPERTY AND
29 FARMSTEAD PROPERTY.
30 (B) GENERAL RULE.--
20030S0100B1110 - 36 -
1 (1) EACH SCHOOL DISTRICT IN WHICH THE GOVERNING BODY HAS
2 ADOPTED A RESOLUTION UNDER SECTION 611-A(A)(1) AND EACH
3 SCHOOL DISTRICT IN WHICH THE ELECTORS HAVE APPROVED A
4 REFERENDUM UNDER SECTION 613-A(B)(2)(I)(A) SHALL BE QUALIFIED
5 FOR A DISTRIBUTION OF FUNDS FROM THE FUND PURSUANT TO ARTICLE
6 VI-B FOR THE PURPOSE OF PROVIDING EXCLUSIONS FOR HOMESTEAD
7 PROPERTY AND FARMSTEAD PROPERTY.
8 (2) IF A SCHOOL DISTRICT CHOOSES TO IMPOSE THE TAX
9 AUTHORIZED BY SECTION 611-A(A)(1), IT SHALL HAVE THE POWER TO
10 IMPOSE, SUBJECT TO SECTION 613-A, ADDITIONAL EARNED INCOME
11 AND NET PROFITS TAX OR PERSONAL INCOME TAX FOR THE PURPOSE OF
12 HOMESTEAD AND FARMSTEAD EXCLUSIONS.
13 (3) THIS ARTICLE SHALL NOT BE CONSTRUED TO AFFECT THE
14 POWER OF A SCHOOL DISTRICT TO DO ANY OF THE FOLLOWING:
15 (I) TO ELECT TO PLACE A REFERENDUM QUESTION ON THE
16 BALLOT PURSUANT TO THE ACT OF JUNE 22, 2001 (P.L.374,
17 NO.24), KNOWN AS THE OPTIONAL OCCUPATION TAX ELIMINATION
18 ACT. A SCHOOL DISTRICT MAY PLACE SUCH REFERENDUM QUESTION
19 ON THE BALLOT AT THE SAME MUNICIPAL ELECTION AS A
20 REFERENDUM QUESTION PLACED ON THE BALLOT PURSUANT TO
21 SUBDIVISION (B).
22 (II) TO ELIMINATE ITS OCCUPATION TAX PURSUANT TO THE
23 OPTIONAL OCCUPATION TAX ELIMINATION ACT.
24 SECTION 604-A. (RESERVED).
25 SECTION 605-A. CERTAIN RATES OF TAXATION LIMITED.
26 IF A MUNICIPALITY AND SCHOOL DISTRICT BOTH IMPOSE AN EARNED
27 INCOME AND NET PROFITS TAX ON THE SAME INDIVIDUAL UNDER THE
28 LOCAL TAX ENABLING ACT AND THE MUNICIPALITY AND SCHOOL DISTRICT
29 ARE LIMITED TO OR HAVE AGREED UPON A DIVISION OF THE TAX RATE IN
30 ACCORDANCE WITH SECTION 8 OF THE LOCAL TAX ENABLING ACT, THEN
20030S0100B1110 - 37 -
1 THE MUNICIPALITY THAT CONTINUES TO LEVY THE EARNED INCOME AND
2 NET PROFITS TAX UNDER THE LOCAL TAX ENABLING ACT SHALL REMAIN
3 SUBJECT TO THAT LIMITATION OR AGREEMENT IN THE EVENT THAT THE
4 SCHOOL DISTRICT OPTS TO IMPOSE AN INCOME TAX UNDER SECTION 621-
5 A.
6 (B) TAX AUTHORIZATION
7 SECTION 611-A. GENERAL TAX AUTHORIZATION.
8 (A) MINIMUM LOCAL CONTRIBUTION.--
9 (1) NOTWITHSTANDING THE PROVISIONS OF SECTION 613-A,
10 EACH SCHOOL DISTRICT MAY, BY RESOLUTION, LEVY, ASSESS AND
11 COLLECT AN EARNED INCOME AND NET PROFITS TAX IN THE AMOUNT OF
12 ONE TENTH OF ONE PERCENT (.1%) UNDER SUBDIVISION (C) IN ORDER
13 TO QUALIFY FOR DISTRIBUTION OF MONEY FROM THE FUND UNDER
14 ARTICLE VI-B.
15 (2) NOT LATER THAN 30 DAYS AFTER THE EFFECTIVE DATE OF
16 THIS ARTICLE, THE BOARD OF SCHOOL DIRECTORS SHALL ADOPT A
17 RESOLUTION IMPOSING THE TAX AUTHORIZED BY PARAGRAPH (1) AND
18 SHALL IMMEDIATELY NOTIFY THE DEPARTMENT OF EDUCATION IN ORDER
19 TO ESTABLISH THE SCHOOL DISTRICT'S ELIGIBILITY TO RECEIVE A
20 PROPERTY TAX REDUCTION ALLOCATION PURSUANT TO ARTICLE VI-B.
21 THE TAX IMPOSED UNDER THE AUTHORITY OF THIS SUBSECTION SHALL
22 BE EFFECTIVE BEGINNING ON THE FIRST DAY OF THE SCHOOL
23 DISTRICT'S FIRST SCHOOL YEAR COMMENCING AFTER DECEMBER 31,
24 2003.
25 (I) FIFTEEN DAYS AFTER THE DEADLINE IN PARAGRAPH
26 (2), THE DEPARTMENT OF EDUCATION SHALL NOTIFY THE COUNTY
27 BOARD OF ELECTIONS OF EACH COUNTY OF THE SCHOOL DISTRICTS
28 IN THAT COUNTY WHICH HAVE FAILED TO TAKE THE ACTION
29 REQUIRED UNDER THIS PARAGRAPH.
30 (II) THE COUNTY BOARD OF ELECTIONS SHALL PROCEED TO
20030S0100B1110 - 38 -
1 HAVE THE REFERENDUM QUESTION SET FORTH IN SECTION 613-
2 A(B)(2)(I)(A) AND (B) PLACED ON THE BALLOT AT THE
3 MUNICIPAL ELECTION OF 2003.
4 (III) THE COUNTY BOARD OF ELECTIONS SHALL CERTIFY TO
5 THE DEPARTMENT OF EDUCATION THE RESULTS OF THE REFERENDUM
6 REFERRED TO IN SUBPARAGRAPH (II) AS SOON AS PRACTICABLE.
7 (IV) IF, SUBSEQUENT TO INITIAL NOTIFICATION THAT A
8 SCHOOL DISTRICT HAD NOT COMPLIED WITH THE REQUIREMENTS OF
9 THIS PARAGRAPH, THE DEPARTMENT OF EDUCATION NOTIFIES THE
10 BOARD THAT THE SCHOOL DISTRICT HAS SUBSEQUENTLY COMPLIED,
11 THE COUNTY BOARD OF ELECTIONS MAY TAKE WHATEVER ACTION IT
12 DEEMS APPROPRIATE TO EITHER REMOVE THE QUESTION FROM THE
13 BALLOT IN THAT SCHOOL DISTRICT OR DECLARE THE VOTE OR
14 POTENTIAL VOTE NULL AND VOID.
15 (B) SUPPLEMENTAL TAX RELIEF.--
16 (1) SUBJECT TO SECTION 613-A, EACH SCHOOL DISTRICT MAY
17 UNDER SUBDIVISION (C), BY RESOLUTION, LEVY, ASSESS AND
18 COLLECT:
19 (I) AN ADDITIONAL TAX ON EARNED INCOME AND NET
20 PROFITS UP TO THE MAXIMUM RATE AUTHORIZED UNDER SECTION
21 621-A(B); OR
22 (II) A TAX ON PERSONAL INCOME UP TO THE MAXIMUM RATE
23 AUTHORIZED UNDER SECTION 621-A(C). IF A SCHOOL DISTRICT
24 IMPOSES A PERSONAL INCOME TAX, IT SHALL RELINQUISH THE
25 RIGHT TO IMPOSE AN EARNED INCOME AND NET PROFITS TAX
26 UNDER THIS ARTICLE OR ANY OTHER ACT AND SHALL CONVERT ANY
27 EXISTING INCOME TAX TO A PERSONAL INCOME TAX PURSUANT TO
28 THE REQUIREMENTS OF SECTION 621-A(C)(2).
29 (2) IMPOSITION OF THE TAX AUTHORIZED BY 611-A(A)(1)
30 SHALL REQUIRE THE SCHOOL DISTRICT TO SUBMIT A REFERENDUM
20030S0100B1110 - 39 -
1 QUESTION TO THE VOTERS REQUESTING THEIR APPROVAL FOR EITHER
2 THE IMPOSITION OF AN ADDITIONAL RATE OF EARNED INCOME AND NET
3 PROFITS TAX OR A NEWLY IMPOSED PERSONAL INCOME TAX TO BE USED
4 FOR AN ADDITIONAL DEGREE OF HOMESTEAD EXCLUSIONS, CONSISTENT
5 WITH THE REQUIREMENTS OF SECTION 613-A. IF THE SCHOOL
6 DISTRICT DETERMINES AND THE DEPARTMENT OF EDUCATION CONFIRMS
7 THAT ESTIMATED TAX COLLECTIONS PURSUANT TO THE TAX AUTHORIZED
8 BY THIS SECTION TOGETHER WITH THE ESTIMATED PROPERTY TAX
9 REDUCTION ALLOCATION, AS CERTIFIED TO IT BY THE DEPARTMENT OF
10 EDUCATION, PROVIDE FUNDING SUFFICIENT TO GRANT HOMESTEAD AND
11 FARMSTEAD EXCLUSIONS EQUAL TO OR GREATER THAN 50% OF THE
12 MAXIMUM AMOUNT AUTHORIZED BY THE CONSTITUTION OF
13 PENNSYLVANIA, THE SCHOOL DISTRICT SHALL NOT BE REQUIRED TO
14 PLACE ANY REFERENDUM ON THE BALLOT PURSUANT TO SECTION 613-A,
15 EXCEPT THAT A SCHOOL DISTRICT MAY SUBMIT A QUESTION TO THE
16 VOTERS UNDER SECTION 613-A IF IT DESIRES TO PROVIDE
17 ADDITIONAL RESIDENTIAL PROPERTY TAX RELIEF.
18 SECTION 612-A. CONTINUITY OF TAX.
19 AN EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX
20 LEVIED UNDER THE PROVISIONS OF SUBDIVISION (C) SHALL CONTINUE IN
21 FORCE ON A FISCAL YEAR BASIS WITHOUT ANNUAL REENACTMENT EXCEPT
22 IN A YEAR IN WHICH THE RATE OF TAX IS INCREASED OR THE TAX IS
23 SUBSEQUENTLY REPEALED.
24 SECTION 613-A. ADOPTION OF REFERENDUM.
25 (A) GENERAL RULE.--
26 (1) THE FOLLOWING APPLY:
27 (I) ALL SCHOOL DISTRICTS ARE AUTHORIZED TO IMPOSE A
28 ONE TENTH OF ONE PERCENT (.1%) EARNED INCOME AND NET
29 PROFITS TAX PURSUANT TO SECTION 611-A(A)(1) WITHOUT
30 SUBMITTING THE ISSUE TO A REFERENDUM OF THE VOTERS.
20030S0100B1110 - 40 -
1 ACTION UNDER THIS PARAGRAPH WILL TRIGGER THE SCHOOL
2 DISTRICT'S ELIGIBILITY TO OBTAIN A STATE MATCH FROM THE
3 FUND FOR THE SOLE PURPOSE OF PROVIDING FOR HOMESTEAD OR
4 FARMSTEAD PROPERTY TAX EXCLUSIONS. TAKING THIS ACTION
5 SHALL REQUIRE THE SCHOOL DISTRICT TO SUBMIT A REFERENDUM
6 TO THE VOTERS REQUESTING THEIR APPROVAL FOR EITHER THE
7 IMPOSITION OF AN ADDITIONAL RATE OF AN EARNED INCOME AND
8 NET PROFITS TAX OR A NEWLY IMPOSED PERSONAL INCOME TAX TO
9 BE USED FOR AN ADDITIONAL DEGREE OF HOMESTEAD EXCLUSIONS
10 TO BRING THE RATE OF EXCLUSION IN THE SCHOOL DISTRICT TO
11 AT LEAST 50% OF THE AMOUNT ALLOWED UNDER THE CONSTITUTION
12 OF PENNSYLVANIA. IF THE MINIMUM LOCAL CONTRIBUTION,
13 TOGETHER WITH THE STATE MATCH FROM THE FUND, PROVIDE
14 ENOUGH REVENUE TO PROVIDE FOR 50% OF THE ALLOWABLE
15 HOMESTEAD EXCLUSION WITHOUT RESORTING TO FURTHER LOCAL
16 TAX INCREASES, NO REFERENDUM SHALL BE REQUIRED. THE BOARD
17 OF SCHOOL DIRECTORS COULD CHOOSE TO REQUEST PERMISSION TO
18 INCREASE INCOME TAXES TO BE ABLE TO PROVIDE UP TO THE
19 FULL HOMESTEAD EXCLUSION PERMITTED BY THE CONSTITUTION OF
20 PENNSYLVANIA. IF THE BOARD CHOOSES TO REQUEST PERMISSION
21 TO ENACT A PERSONAL INCOME TAX AND THE VOTERS APPROVE THE
22 REFERENDUM, THEN ANY EARNED INCOME AND NET PROFITS TAX
23 IMPOSED BY THE SCHOOL DISTRICT WHICH WAS IN EXISTENCE
24 PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE AND THE
25 EARNED INCOME AND NET PROFITS TAX NEWLY IMPOSED PURSUANT
26 TO SECTION 611-A(A)(1) WILL BE CONVERTED INTO A PERSONAL
27 INCOME TAX AT THE RATE DETERMINED UNDER SECTION 621-
28 A(C)(2).
29 (II) IF A SCHOOL DISTRICT FAILS TO IMPOSE THE ONE
30 TENTH OF ONE PERCENT (.1%) EARNED INCOME AND NET PROFITS
20030S0100B1110 - 41 -
1 TAX PURSUANT TO THE AUTHORIZATION PROVIDED FOR IN SECTION
2 611-A(A)(1) TO ALLOW ITS HOMEOWNERS TO SHARE IN THE
3 PROCEEDS OF THE FUND, THE COUNTY BOARD OF ELECTIONS SHALL
4 PLACE TWO QUESTIONS ON THE BALLOT IN THE SCHOOL DISTRICT.
5 THE FIRST QUESTION SHALL SEEK VOTER APPROVAL FOR A ONE
6 TENTH OF ONE PERCENT (.1%) INCREASE IN THE EARNED INCOME
7 TAX IN ORDER TO OBTAIN THE STATE MATCHING FUNDS FOR
8 HOMESTEAD AND FARMSTEAD PROPERTY TAX EXCLUSIONS, AND THE
9 SECOND QUESTION SHALL SEEK VOTER APPROVAL OF AN
10 ADDITIONAL EARNED INCOME AND NET PROFITS TAX INCREASE TO
11 PROVIDE FOR A TOTAL HOMESTEAD EXCLUSION OF 50% OF THE
12 PERMITTED AMOUNT.
13 (III) IF A SCHOOL DISTRICT ADOPTS A RESOLUTION
14 IMPOSING THE ONE TENTH OF ONE PERCENT (.1%) EARNED INCOME
15 AND NET PROFITS TAX BUT FAILS TO PLACE A REFERENDUM ON
16 THE BALLOT SEEKING ADDITIONAL INCOME TAXES FOR PROPERTY
17 TAX RELIEF, THE COUNTY BOARD OF ELECTIONS SHALL PLACE A
18 QUESTION ON THE BALLOT IN THE SCHOOL DISTRICT SEEKING
19 VOTER APPROVAL OF AN ADDITIONAL EARNED INCOME AND NET
20 PROFITS TAX INCREASE TO PROVIDE FOR A TOTAL HOMESTEAD
21 EXCLUSION OF 50% OF THE PERMITTED AMOUNT.
22 (2) IN ORDER TO LEVY, IN ADDITION TO THE TAX IMPOSED
23 UNDER SECTION 611-A(A)(1), AN EARNED INCOME AND NET PROFITS
24 TAX OR PERSONAL INCOME TAX UNDER SUBDIVISION (C), A BOARD OF
25 SCHOOL DIRECTORS SHALL USE THE PROCEDURES SET FORTH IN
26 SUBSECTION (B).
27 (3) IF A SCHOOL DISTRICT DOES NOT TAKE ACTION TO IMPOSE
28 THE TAX AUTHORIZED UNDER SECTION 611-A(A)(1), THE PROCEDURE
29 SET FORTH IN SUBSECTION (B)(2)(I) SHALL APPLY.
30 (4) A BOARD OF SCHOOL DIRECTORS AFTER MAKING AN ELECTION
20030S0100B1110 - 42 -
1 TO LEVY AN EARNED INCOME AND NET PROFITS TAX OR PERSONAL
2 INCOME TAX UNDER SUBDIVISION (C) MAY, AFTER A PERIOD OF AT
3 LEAST FOUR FULL FISCAL YEARS, ELECT UNDER THE PROVISIONS OF
4 SUBSECTION (F) TO END PARTICIPATION UNDER THIS SUBDIVISION.
5 IF THE ELECTORATE APPROVES, AT A GENERAL OR MUNICIPAL
6 ELECTION, A REFERENDUM TO DO SO, THE BOARD OF SCHOOL
7 DIRECTORS MAY NOT CONTINUE TO LEVY AN EARNED INCOME AND NET
8 PROFITS TAX OR PERSONAL INCOME TAX UNDER SUBDIVISION (C).
9 (B) PUBLIC REFERENDUM REQUIREMENTS.--EXCEPT AS SET FORTH IN
10 SUBSECTION (D) THE FOLLOWING APPLY:
11 (1) A BOARD OF SCHOOL DIRECTORS MAY, IN ADDITION TO THE
12 TAX IMPOSED UNDER SECTION 611-A(A)(1), LEVY THE EARNED INCOME
13 AND NET PROFITS TAX OR PERSONAL INCOME TAX UNDER SUBDIVISION
14 (C) ONLY BY OBTAINING THE APPROVAL OF THE ELECTORATE OF THE
15 AFFECTED SCHOOL DISTRICT IN A PUBLIC REFERENDUM AT ONLY THE
16 MUNICIPAL ELECTION PRECEDING THE FISCAL YEAR WHEN THE EARNED
17 INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX WILL BE
18 INITIALLY IMPOSED. THE COUNTY BOARD OF ELECTIONS SHALL CAUSE
19 THE REFERENDUM QUESTION REQUIRED BY THIS SECTION TO BE
20 SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT.
21 (2) EXCEPT IN THE CASE OF A REFERENDUM REQUIRED IF A
22 SCHOOL DISTRICT FAILS TO ADOPT THE TAX AUTHORIZED BY SECTION
23 611-A(A)(1) OR FAILS, AFTER HAVING ADOPTED THE TAX, TO TAKE
24 ACTION TO PLACE A REFERENDUM ON THE BALLOT UNDER THIS
25 SUBSECTION, THE REFERENDUM QUESTION SHALL STATE THE INITIAL
26 RATE OF THE PROPOSED EARNED INCOME AND NET PROFITS TAX OR
27 PERSONAL INCOME TAX TO BE LEVIED UNDER SUBDIVISION (C) AND
28 THE REASON FOR THE TAX. THE REFERENDUM QUESTION SHALL BE
29 FRAMED IN ONE OF THE FOLLOWING FORMS WITH THE SCHOOL DISTRICT
30 RESOLUTION OR, IF NECESSARY, ACTION BY THE COUNTY BOARD OF
20030S0100B1110 - 43 -
1 ELECTIONS DETERMINING THE VARIABLE PERCENTAGES REPRESENTED BY
2 THE TERMS "X" AND "Y" IN THE FORM OF THE QUESTION CHOSEN BY
3 THE SCHOOL DISTRICT OR MANDATED BY THIS SECTION:
4 (I) IF A SCHOOL DISTRICT FAILS TO TAKE ANY ACTION,
5 THE REFERENDUM QUESTIONS SUBMITTED TO THE VOTERS SHALL BE
6 IN THE FOLLOWING FORM:
7 (A) DO YOU FAVOR IMPOSITION AND COLLECTION OF AN
8 INCREASE IN THE EARNED INCOME AND NET PROFITS TAX OF
9 ONE TENTH OF ONE PERCENT (.1%) IN ORDER TO OBTAIN
10 STATE MATCHING FUNDS IN A MULTIPLE DETERMINED BY THE
11 LEVEL OF PROCEEDS IN THE PROPERTY TAX RELIEF FUND TO
12 PROVIDE FOR RESIDENTIAL PROPERTY TAX RELIEF?
13 (B) DO YOU FAVOR THE IMPOSITION OF AN X%
14 ADDITIONAL EARNED INCOME AND NET PROFITS TAX ABOVE
15 THE AMOUNT REQUIRED TO OBTAIN STATE MATCHING FUNDS IN
16 ORDER TO PROVIDE FURTHER RESIDENTIAL PROPERTY TAX
17 REDUCTIONS OF UP TO 50% OF THE ALLOWABLE MAXIMUM
18 HOMESTEAD EXCLUSION?
19 (II) IF A SCHOOL DISTRICT ENACTS BY RESOLUTION A ONE
20 TENTH OF ONE PERCENT (.1%) INCREASE IN THE EARNED INCOME
21 AND NET PROFITS TAX TO OBTAIN THE STATE MATCHING FUNDS, A
22 REFERENDUM QUESTION SHALL BE SUBMITTED TO THE VOTERS IN
23 ONE OF THE FOLLOWING FORMS:
24 (A) DO YOU FAVOR THE IMPOSITION OF AN X% EARNED
25 INCOME AND NET PROFITS TAXES IN ORDER TO PROVIDE
26 FURTHER RESIDENTIAL PROPERTY TAX REDUCTIONS OF UP TO
27 Y%?
28 (B) DO YOU FAVOR ABOLISHING YOUR CURRENT EARNED
29 INCOME AND NET PROFITS TAX AND CONVERTING IT INTO A
30 PERSONAL INCOME TAX AT X% IN ORDER TO GENERATE FUNDS
20030S0100B1110 - 44 -
1 TO PROVIDE FOR RESIDENTIAL PROPERTY TAX REDUCTIONS OF
2 Y% IN ADDITION TO REPLACING THE REVENUE FROM THE
3 ABOLISHED EARNED INCOME AND NET PROFITS TAX.
4 (III) IF A SCHOOL DISTRICT ENACTS BY RESOLUTION A
5 ONE TENTH OF ONE PERCENT (.1%) INCREASE IN THE EARNED
6 INCOME AND NET PROFITS TAX TO OBTAIN THE STATE MATCHING
7 FUNDS BUT FAILS TO TAKE ACTION TO SUBMIT A REFERENDUM
8 QUESTION TO THE VOTERS TO PROVIDE FOR ADDITIONAL
9 HOMESTEAD PROPERTY TAX RELIEF, THE FOLLOWING QUESTION
10 SHALL BE SUBMITTED TO THE VOTERS:
11 DO YOU FAVOR THE IMPOSITION OF AN X% EARNED
12 INCOME AND NET PROFITS TAX IN ORDER TO PROVIDE
13 FURTHER HOMESTEAD PROPERTY TAX REDUCTIONS OF UP TO
14 50% OF THE ALLOWABLE MAXIMUM HOMESTEAD EXCLUSION?
15 (3) A NONLEGAL INTERPRETATIVE STATEMENT SHALL ACCOMPANY
16 THE REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF
17 THE ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
18 PENNSYLVANIA ELECTION CODE.
19 (C) TAX IMPLEMENTATION AND PUBLIC REFERENDUM REQUIREMENTS
20 FOR THE MUNICIPAL ELECTION OF 2003.--IN ADDITION TO THE
21 PROVISIONS OF SUBSECTION (B), THE FOLLOWING SHALL APPLY FOR THE
22 MUNICIPAL ELECTION OF 2003:
23 (1) NOT LATER THAN 30 DAYS AFTER THE EFFECTIVE DATE OF
24 THIS ARTICLE, THE BOARD OF SCHOOL DIRECTORS SHALL ADOPT A
25 RESOLUTION IMPOSING THE TAX AUTHORIZED BY SECTION 611-A(A)(1)
26 AND SHALL DETERMINE THE PARAMETERS NECESSARY FOR THE
27 SUBMISSION OF THE REFERENDUM QUESTION REQUIRED TO BE
28 SUBMITTED TO THE VOTERS BY THIS SECTION.
29 (2) THE REFERENDUM QUESTION REQUIRED BY THIS SECTION
30 SHALL BE SUBMITTED TO THE ELECTORS OF EACH SCHOOL DISTRICT
20030S0100B1110 - 45 -
1 FOR THE MUNICIPAL ELECTION OF 2003.
2 (I) NO LATER THAN 30 DAYS AFTER THE EFFECTIVE DATE
3 OF THIS SUBPARAGRAPH OR 15 DAYS AFTER THE DEPARTMENT OF
4 EDUCATION CERTIFIES TO THE SCHOOL DISTRICT ITS INITIAL
5 ESTIMATED PROPERTY TAX REDUCTION ALLOCATION, WHICHEVER IS
6 LATER, THE BOARD OF SCHOOL DIRECTORS OF EACH SCHOOL
7 DISTRICT SHALL ADOPT THE RESOLUTION REQUIRED UNDER
8 SECTION 626-A(A) AUTHORIZING THE REFERENDUM QUESTION. THE
9 RESOLUTION AND THE REFERENDUM QUESTION SHALL BE BASED ON
10 THE CALCULATION PROVIDED FOR UNDER SECTION 626-A(B).
11 (II) IF THE BOARD OF SCHOOL DIRECTORS FAILS TO ADOPT
12 THE RESOLUTION REQUIRED UNDER SECTION 626-A(A) BY THE
13 DATE SPECIFIED IN THIS PARAGRAPH, THE COUNTY BOARD OF
14 ELECTIONS SHALL PREPARE A REFERENDUM QUESTION PURSUANT TO
15 SUBSECTION (B)(2)(III) THAT AUTHORIZES AN EARNED INCOME
16 AND NET PROFITS TAX FOR THE SCHOOL DISTRICT AT THE RATE
17 NECESSARY TO PROVIDE FOR A HOMESTEAD EXCLUSION OF AT
18 LEAST 50% OF THE MAXIMUM RATE PERMITTED, BASED ON THE
19 CALCULATION PROVIDED FOR UNDER SECTION 626-A(B).
20 (III) THE COUNTY BOARD OF ELECTIONS SHALL CAUSE THE
21 REFERENDUM QUESTION REQUIRED BY THIS SUBSECTION TO BE
22 SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT
23 CONSISTENT WITH THE PROVISIONS OF THIS SECTION. THE
24 COUNTY MAY SEEK REASONABLE COSTS ASSOCIATED WITH THE
25 PREPARATION OF THE REFERENDUM QUESTION FROM A SCHOOL
26 DISTRICT LOCATED WITHIN THE COUNTY WHICH FAILS TO ADOPT A
27 RESOLUTION REQUIRED UNDER THIS SECTION.
28 (D) SEGREGATED AMOUNTS.--WHEN A MAJORITY OF THE ELECTORS
29 VOTE IN FAVOR OF THE REFERENDUM QUESTION SUBMITTED TO THEM UNDER
30 SUBSECTION (B)(2)(I)(A), THE NEW TAX RATE SHALL BE SELF-
20030S0100B1110 - 46 -
1 EXECUTING AND SHALL APPLY TO A SCHOOL DISTRICT'S FIRST SCHOOL
2 YEAR COMMENCING AFTER DECEMBER 31, 2003 AND EACH SCHOOL YEAR
3 THEREAFTER. COLLECTIONS OF THE NEW TAX SHALL BE HELD IN A
4 SEGREGATED ACCOUNT OF THE SCHOOL DISTRICT AND USED IN
5 CONJUNCTION WITH ITS PROPERTY TAX REDUCTION ALLOCATION FROM THE
6 COMMONWEALTH ONLY FOR HOMESTEAD AND FARMSTEAD PROPERTY TAX
7 RELIEF. NO PROPERTY TAX REDUCTION ALLOCATION SHALL BE PAID TO
8 THE SCHOOL DISTRICT UNTIL IT RATIFIES THE REFERENDUM BY
9 RESOLUTION AND PASSES THE RESOLUTION REQUIRED UNDER SUBSECTION
10 (E).
11 (E) RESOLUTION IMPLEMENTING TAX PROVISIONS REQUIRED.--WHEN A
12 MAJORITY OF THE ELECTORS VOTING ON A REFERENDUM QUESTION WHICH
13 WAS NOT PLACED ON THE BALLOT BY THE AFFIRMATIVE ACTION OF THE
14 BOARD OF SCHOOL DIRECTORS VOTE IN FAVOR OF THE QUESTION, THE
15 SCHOOL DISTRICT SHALL, WITHIN 30 DAYS OF THE CERTIFICATION OF
16 THE PASSAGE OF THE REFERENDUM BY THE COUNTY BOARD OF ELECTIONS,
17 ADOPT A RESOLUTION IMPLEMENTING THE TAX PROVISIONS MANDATED BY
18 THE VOTERS. FAILURE TO ADOPT A RESOLUTION SHALL SUSPEND THE
19 SCHOOL DISTRICT'S RIGHT TO RECEIVE THE DISTRIBUTION OF ITS
20 PROPERTY TAX REDUCTION ALLOCATION UNDER ARTICLE VI-B UNTIL A
21 RESOLUTION IS ADOPTED. THE SCHOOL DISTRICT'S ALLOCATION SHALL BE
22 RESERVED BY THE DEPARTMENT OF EDUCATION IN A SEPARATE ACCOUNT
23 FOR PAYMENT WHEN THE SCHOOL DISTRICT SATISFIES THE REQUIREMENTS
24 OF THIS SUBSECTION.
25 (F) PUBLIC REFERENDUM REQUIREMENTS TO END PARTICIPATION
26 UNDER THIS SUBDIVISION.--SUBJECT TO THE NOTICE AND PUBLIC
27 HEARING REQUIREMENTS IN SECTION 4 OF THE LOCAL TAX ENABLING ACT,
28 A BOARD OF SCHOOL DIRECTORS MAY ELECT TO END PARTICIPATION UNDER
29 THIS SUBDIVISION IN ACCORDANCE WITH SUBSECTION (A)(4) BY
30 OBTAINING THE APPROVAL OF THE ELECTORATE OF THE AFFECTED SCHOOL
20030S0100B1110 - 47 -
1 DISTRICT IN A PUBLIC REFERENDUM AT A MUNICIPAL ELECTION.
2 (G) EFFECT ON CERTAIN SCHOOL DISTRICTS.--
3 (1) THIS SECTION SHALL NOT APPLY TO A SCHOOL DISTRICT OF
4 THE FIRST CLASS.
5 (2) EXCEPT FOR SUBSECTION (B)(2)(I)(A), THIS SECTION
6 SHALL NOT APPLY TO A SCHOOL DISTRICT OF THE FIRST CLASS A OR
7 A SCHOOL DISTRICT CERTIFIED AS DISTRESSED PURSUANT TO SECTION
8 691 OR AN EDUCATIONAL EMPOWERMENT SCHOOL DISTRICT PURSUANT TO
9 SECTION 1705-B OR 1707-B.
10 (3) EXCEPT FOR SUBSECTIONS (B)(2)(I)(A), (H), (I), (J)
11 AND (K), THIS SECTION SHALL NOT APPLY TO A SCHOOL DISTRICT IN
12 WHICH A REFERENDUM QUESTION UNDER 53 PA.C.S. § 8703 (RELATING
13 TO ADOPTION OF REFERENDUM) HAS BEEN APPROVED AND IMPLEMENTED.
14 (H) ELECTION.--A SCHOOL DISTRICT IN WHICH A REFERENDUM
15 QUESTION UNDER 53 PA.C.S. § 8703 HAS BEEN APPROVED AND
16 IMPLEMENTED MAY, BY RESOLUTION, MAKE AN ELECTION TO ADOPT THE
17 PROVISIONS OF SECTION 611-A. THE ADOPTION OF A RESOLUTION
18 AUTHORIZING ELECTION UNDER THIS ARTICLE SHALL HAVE THE SAME
19 EFFECT AS A PUBLIC REFERENDUM QUESTION UNDER THIS SECTION
20 RECEIVING A MAJORITY VOTE, AND THE PROVISIONS OF THIS ARTICLE
21 SHALL APPLY IN A MANNER DESIGNED TO ATTAIN THAT OUTCOME. IF A
22 SCHOOL BOARD OF DIRECTORS MAKES AN ELECTION UNDER THIS
23 SUBSECTION, THE SCHOOL DISTRICT SHALL NO LONGER BE REQUIRED TO
24 IMPLEMENT THE PROVISIONS OF 53 PA.C.S. CH. 87.
25 (I) EFFECT ON TAX RATES AND HOMESTEAD AND FARMSTEAD
26 EXCLUSIONS.--AN ELECTION UNDER SUBSECTION (H) SHALL NOT AFFECT
27 THE CURRENT RATE OF EARNED INCOME AND NET PROFITS TAX CURRENTLY
28 IMPOSED, NOR SHALL THE AMOUNT OF THE HOMESTEAD AND FARMSTEAD
29 EXCLUSION CURRENTLY ENACTED BE CHANGED UNLESS THE SCHOOL
30 DISTRICT ELECTS TO CHANGE THE TAX RATE OR HOMESTEAD AND
20030S0100B1110 - 48 -
1 FARMSTEAD EXCLUSION CONSISTENT WITH THE PROVISIONS OF THIS
2 ARTICLE.
3 (J) PENDING REFERENDUM QUESTIONS TO ELECT PARTICIPATION.--A
4 SCHOOL DISTRICT WHICH, BY RESOLUTION, HAS ELECTED TO PLACE A
5 REFERENDUM QUESTION ON THE BALLOT IN ACCORDANCE WITH THE
6 PROVISIONS OF 53 PA.C.S. § 8703(B) IN THE MUNICIPAL ELECTION OF
7 2003, MAY, BY RESOLUTION, REQUIRE THAT THE REFERENDUM QUESTION
8 BE REMOVED FROM THE BALLOT. IF A SCHOOL DISTRICT ELECTS TO
9 WITHDRAW THE QUESTION FOR THE MUNICIPAL ELECTION OF 2003, IT
10 SHALL COMPLY WITH THIS SECTION.
11 (K) PENDING REFERENDUM QUESTIONS TO END PARTICIPATION.--A
12 SCHOOL DISTRICT WHICH, BY RESOLUTION, HAS ELECTED TO END
13 PARTICIPATION UNDER 53 PA.C.S. § 8703(C) IN A MUNICIPAL ELECTION
14 MAY, BY RESOLUTION, REQUIRE THAT THE REFERENDUM QUESTION BE
15 REMOVED FROM THE BALLOT. IF A SCHOOL DISTRICT ELECTS NOT TO
16 REMOVE THE QUESTION AND THE QUESTION RECEIVES A MAJORITY OF THE
17 VOTE BY THE ELECTORATE, THEN THE SCHOOL DISTRICT SHALL PLACE A
18 REFERENDUM QUESTION CONSISTENT WITH SUBSECTION (B) ON THE NEXT
19 PRIMARY ELECTION BALLOT IMMEDIATELY FOLLOWING THE MUNICIPAL
20 ELECTION.
21 SECTION 614-A. PUBLIC REFERENDUM REQUIREMENTS FOR INCREASING
22 CERTAIN TAXES.
23 (A) APPLICABILITY.--THIS SECTION SHALL APPLY TO THE BOARD OF
24 SCHOOL DIRECTORS OF A SCHOOL DISTRICT IF THE TAX UNDER SECTION
25 611-A(A)(1) IS ENACTED OR IF A REFERENDUM UNDER SECTION 613-A IS
26 APPROVED.
27 (B) PROHIBITIONS.--EXCEPT AS SET FORTH IN SUBSECTION (F),
28 UNLESS THERE IS COMPLIANCE WITH SUBSECTION (C), A BOARD OF
29 SCHOOL DIRECTORS MAY NOT DO ANY OF THE FOLLOWING:
30 (1) INCREASE THE RATE OF A TAX LEVIED FOR THE SUPPORT OF
20030S0100B1110 - 49 -
1 THE PUBLIC SCHOOLS BY MORE THAN THE PERCENTAGE INCREASE IN
2 THE INDEX IN THE PRECEDING YEAR.
3 (2) LEVY A TAX FOR THE SUPPORT OF THE PUBLIC SCHOOLS
4 WHICH WAS NOT LEVIED IN THE FISCAL YEAR IN WHICH A REFERENDUM
5 UNDER SECTION 613-A WAS APPROVED OR A TAX UNDER SECTION 611-
6 A(A)(1) WAS IMPOSED.
7 (3) RAISE THE RATE OF THE EARNED INCOME AND NET PROFITS
8 TAX, IF ALREADY IMPOSED UNDER THE AUTHORITY OF SECTION 13 OF
9 THE LOCAL TAX ENABLING ACT, EXCEPT AS OTHERWISE PROVIDED FOR
10 UNDER SECTION 621-A.
11 (4) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE
12 TO THE CONTRARY, THE ADOPTION OF A REFERENDUM UNDER SECTION
13 613-A CONFERS ON THE BOARD OF SCHOOL DIRECTORS THE AUTHORITY
14 TO RAISE INCOME TAXES ONLY TO THE EXTENT CONTAINED IN THE
15 LANGUAGE OF THE REFERENDUM AND ANY FUTURE, ADDITIONAL
16 INCREASE OF THE INCOME TAX TO BE USED FOR THE SOLE PURPOSE OF
17 PROPERTY TAX REDUCTION SHALL BE REQUIRED TO BE SUBMITTED TO
18 THE VOTERS AT A SUBSEQUENT REFERENDUM PURSUANT TO THE
19 PROVISIONS OF SECTION 613-A.
20 (C) REFERENDUM.--
21 (1) IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(1),
22 AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE FISCAL YEAR
23 IN WHICH THE PROPOSED TAX INCREASE WOULD TAKE EFFECT:
24 (I) A REFERENDUM STATING THE SPECIFIC RATE OR RATES
25 OF THE TAX INCREASE MUST BE SUBMITTED TO THE ELECTORS
26 RESIDING IN THE SCHOOL DISTRICT; AND
27 (II) A MAJORITY OF THE ELECTORS VOTING ON THE
28 REFERENDUM MUST APPROVE THE INCREASE.
29 (2) IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(2),
30 AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE FISCAL YEAR
20030S0100B1110 - 50 -
1 IN WHICH THE PROPOSED TAX WOULD TAKE EFFECT:
2 (I) A REFERENDUM STATING THE SPECIFIC TAX AND RATE
3 TO BE LEVIED MUST BE SUBMITTED TO THE ELECTORS RESIDING
4 IN THE SCHOOL DISTRICT; AND
5 (II) A MAJORITY OF THE ELECTORS VOTING ON THE
6 REFERENDUM MUST APPROVE THE TAX.
7 (D) FAILURE TO APPROVE REFERENDUM.--
8 (1) IF THERE IS NO APPROVAL UNDER SUBSECTION (C)(1)(II),
9 THE BOARD OF SCHOOL DIRECTORS MAY APPROVE AN INCREASE IN THE
10 TAX RATE OF NOT MORE THAN THE PERCENTAGE INCREASE IN THE
11 INDEX IN THE PRECEDING YEAR.
12 (2) IF THERE IS NO APPROVAL UNDER SUBSECTION (C)(2)(II),
13 THE BOARD OF SCHOOL DIRECTORS MAY NOT LEVY THE TAX.
14 (E) EXCEPTION TO GENERAL RULE.--THE PROVISIONS OF SUBSECTION
15 (B)(1) SHALL NOT APPLY TO AN INCREASE IN THE RATE OF ANY TAX
16 LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS WHICH IS LESS THAN
17 OR EQUAL TO THE PERCENTAGE INCREASE IN THE INDEX IN THE
18 PRECEDING YEAR. PRIOR TO ANY INCREASE UNDER THIS SUBSECTION, THE
19 BOARD OF SCHOOL DIRECTORS SHALL CERTIFY TO THE DEPARTMENT OF
20 EDUCATION THE ESTIMATES OF LOCAL TAX RATES UNDER THIS
21 SUBSECTION. THE DEPARTMENT OF EDUCATION MAY, ON ITS OWN MOTION
22 OR ON PETITION OF A PERSON HAVING STANDING UNDER SUBSECTION (J),
23 REVISE THE ESTIMATES CERTIFIED BY THE BOARD OF SCHOOL DIRECTORS
24 AND REDUCE THE ALLOWABLE INCREASE IN THE RATE OF ANY TAX UNDER
25 THIS SUBSECTION.
26 (F) REFERENDUM EXCEPTIONS.--THE PROVISIONS OF SUBSECTION
27 (B)(1) SHALL NOT APPLY TO AN INCREASE IN THE RATE OF ANY TAX
28 LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS WHERE THE INCREASE
29 IS NECESSARY TO RESPOND TO ONE OR MORE OF THE FOLLOWING
30 CONDITIONS:
20030S0100B1110 - 51 -
1 (1) TO RESPOND TO OR RECOVER FROM AN EMERGENCY OR
2 DISASTER DECLARED PURSUANT TO 35 PA.C.S. § 7301 (RELATING TO
3 GENERAL AUTHORITY OF GOVERNOR) OR 75 PA.C.S. § 6108 (RELATING
4 TO POWER OF GOVERNOR DURING EMERGENCY), ONLY FOR THE DURATION
5 OF THE EMERGENCY OR DISASTER.
6 (2) TO IMPLEMENT A COURT ORDER OR AN ADMINISTRATIVE
7 ORDER FROM A FEDERAL OR STATE AGENCY THAT REQUIRES THE
8 EXPENDITURE OF FUNDS THAT EXCEED CURRENT AVAILABLE REVENUES,
9 PROVIDED THAT THE RATE INCREASE IS RESCINDED FOLLOWING
10 FULFILLMENT OF THE COURT ORDER OR ADMINISTRATIVE ORDER.
11 (3) AS FOLLOWS:
12 (I) TO PAY INTEREST AND PRINCIPAL ON ANY
13 INDEBTEDNESS INCURRED UNDER 53 PA.C.S. PT. VII SUBPT. B
14 (RELATING TO INDEBTEDNESS AND BORROWING) PRIOR TO THE
15 EFFECTIVE DATE OF THIS SECTION, PROVIDED THAT IN NO CASE
16 MAY THE SCHOOL DISTRICT INCUR ADDITIONAL DEBT UNDER THIS
17 PARAGRAPH, EXCEPT FOR THE REFINANCING OF EXISTING DEBT,
18 INCLUDING THE PAYMENT OF COSTS AND EXPENSES RELATED TO
19 SUCH REFINANCING AND THE ESTABLISHMENT OR FUNDING OF
20 APPROPRIATE DEBT SERVICE RESERVES AND PROVIDED FURTHER
21 THAT THE INCREASE IS RESCINDED FOLLOWING THE FINAL
22 PAYMENT OF INTEREST AND PRINCIPAL.
23 (II) TO PAY INTEREST AND PRINCIPAL ON ANY ELECTORAL
24 DEBT INCURRED UNDER 53 PA.C.S. PT VII SUBPT. B.
25 (III) TO PAY INTEREST AND PRINCIPAL ON ANY
26 INDEBTEDNESS INCURRED FOR SCHOOL CONSTRUCTION PROJECTS
27 UNDER 22 PA. CODE CH. 21 (RELATING TO SCHOOL BUILDINGS),
28 WHETHER SUCH INDEBTEDNESS IS INCURRED BEFORE OR AFTER THE
29 ENACTMENT OF THIS ARTICLE, WHEN THE PROJECT HAS RECEIVED
30 PLAN CON A APPROVAL BY THE DEPARTMENT OF EDUCATION PRIOR
20030S0100B1110 - 52 -
1 TO THE EFFECTIVE DATE OF THIS SECTION AND TO ESTABLISH
2 AND FUND APPROPRIATE DEBT SERVICE RESERVED, PROVIDED THAT
3 THE INCREASE IS RESCINDED FOLLOWING FINAL PAYMENT OF
4 INTEREST AND PRINCIPAL.
5 (IV) THE EXCEPTION PROVIDED UNDER THIS PARAGRAPH MAY
6 NOT BE USED IN LIEU OF THE REFERENDUM UNDER SUBSECTION
7 (C)(2) TO PAY FOR COSTS WHICH COULD NOT BE FINANCED BY
8 THE ISSUANCE OF DEBT UNDER 53 PA.C.S. (RELATING TO
9 MUNICIPALITIES GENERALLY).
10 (4) TO RESPOND TO CONDITIONS THAT POSE AN IMMEDIATE
11 THREAT OF SERIOUS PHYSICAL HARM OR INJURY TO THE STUDENTS,
12 STAFF OR RESIDENTS OF THE SCHOOL DISTRICT, BUT ONLY UNTIL THE
13 CONDITIONS CAUSING THE THREAT HAVE BEEN FULLY RESOLVED.
14 (5) SPECIAL PURPOSE TAX LEVIES APPROVED BY THE
15 ELECTORATE.
16 (6) TO PAY COSTS ATTRIBUTABLE TO AN INCREASE IN THE SUM
17 OF SELECTED SCHOOL EXPENDITURES WHERE SUCH EXPENDITURES
18 EXCEED THE SUM OF SELECTED STATE ALLOCATIONS AS DEFINED IN
19 THIS PARAGRAPH.
20 (I) FOR THE PURPOSES OF THIS PARAGRAPH, SUCH
21 "SELECTED SCHOOL EXPENDITURES" SHALL INCLUDE ANY INCREASE
22 IN COSTS ASSOCIATED WITH NEW, UNFUNDED FEDERALLY MANDATED
23 EDUCATIONAL PROGRAMS, PAYMENTS MADE TO CHARTER SCHOOLS
24 LOCATED IN THE DISTRICT, PAYMENTS MADE TO INTERMEDIATE
25 UNITS OR COMMUNITY COLLEGES FOR VOCATIONAL EDUCATION
26 EXPENSES AND CHANGES IN THE PAYMENTS ON BEHALF OF ACTIVE
27 MEMBERS OF THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM
28 AS REQUIRED PURSUANT TO 24 PA.C.S. § 8327 (RELATING TO
29 PAYMENTS BY EMPLOYERS) BETWEEN THE SCHOOL YEAR PRIOR TO
30 THE SCHOOL YEAR IN WHICH AN EXCEPTION UNDER THIS
20030S0100B1110 - 53 -
1 PARAGRAPH IS SOUGHT AND THE SCHOOL YEAR IN WHICH AN
2 EXCEPTION UNDER THIS PARAGRAPH IS SOUGHT.
3 (II) FOR THE PURPOSES OF THIS PARAGRAPH, "SELECTED
4 STATE ALLOCATIONS" SHALL INCLUDE ANY INCREASE OR DECREASE
5 IN PAYMENTS PROVIDED THROUGH THE BASIC EDUCATION FUNDING
6 ALLOCATION, SPECIAL EDUCATION FUNDING ALLOCATION AND
7 PROVIDED UNDER SECTIONS 2502.16, 2502,30, 2541, 2542,
8 2543, 2572, 2574, 2574.1, 2574.2, 2574.3, 2575, 2575.1,
9 2575.2 AND 2580 BETWEEN THE SCHOOL YEAR PRIOR TO THE
10 SCHOOL YEAR IN WHICH AN EXCEPTION UNDER THIS PARAGRAPH IS
11 SOUGHT AND THE SCHOOL YEAR IN WHICH AN EXCEPTION UNDER
12 THIS PARAGRAPH IS SOUGHT.
13 (7) (I) TO MAINTAIN PER-STUDENT LOCAL TAX REVENUE IN
14 THE SCHOOL DISTRICT AT AN AMOUNT NOT EXCEEDING THE AMOUNT
15 OF PER-STUDENT LOCAL TAX REVENUE AT THE LEVEL OF THE
16 PRECEDING YEAR, ADJUSTED FOR THE PERCENTAGE INCREASE IN
17 THE INDEX IN THE PRECEDING YEAR.
18 (II) THIS PARAGRAPH SHALL APPLY ONLY IF THE
19 PERCENTAGE GROWTH IN AVERAGE DAILY MEMBERSHIP IN THE
20 SCHOOL DISTRICT BETWEEN THE CURRENT FISCAL YEAR AND THE
21 THIRD FISCAL YEAR IMMEDIATELY PRECEDING THE CURRENT
22 FISCAL YEAR EXCEEDS 10%. FOR THE PURPOSES OF THIS
23 PARAGRAPH, PER-STUDENT LOCAL TAX REVENUE SHALL BE
24 DETERMINED BY DIVIDING LOCAL TAX REVENUE BY AVERAGE DAILY
25 MEMBERSHIP.
26 (8) TO COMPENSATE FOR A ONE-YEAR DECREASE OF 10% OR MORE
27 IN THE SCHOOL DISTRICT'S REAL PROPERTY TAX BASE. FOR THE
28 PURPOSES OF THIS PARAGRAPH, THE DECREASE SHALL BE MEASURED BY
29 THE PERCENT CHANGE IN THE ASSESSED VALUE OF ALL TAXABLE
30 PROPERTY WITHIN THE SCHOOL DISTRICT BETWEEN THE FISCAL YEAR
20030S0100B1110 - 54 -
1 IN WHICH AN EXCEPTION UNDER THIS PARAGRAPH IS SOUGHT AND THE
2 FISCAL YEAR IMMEDIATELY PRECEDING THE FISCAL YEAR IN WHICH AN
3 EXCEPTION UNDER THIS PARAGRAPH IS SOUGHT.
4 (G) REVENUE DERIVED FROM INCREASE.--ANY REVENUE DERIVED FROM
5 AN INCREASE IN THE RATE OF ANY TAX ALLOWED PURSUANT TO AN
6 EXCEPTION UNDER SUBSECTION (F)(3) OR (5) SHALL NOT EXCEED THE
7 ANTICIPATED DOLLAR VALUE OF THE EXPENDITURE FOR WHICH THE
8 EXCEPTION UNDER SUBSECTION (F) WAS SOUGHT.
9 (H) LIMITATION ON RATE.--THE INCREASE IN THE RATE OF ANY TAX
10 ALLOWED PURSUANT TO AN EXCEPTION UNDER SUBSECTION (F)(1), (2),
11 (4), (6), (7) OR (8) SHALL NOT EXCEED THE RATE INCREASE REQUIRED
12 AS DETERMINED BY A COURT OF COMMON PLEAS PURSUANT TO SUBSECTION
13 (I).
14 (I) COURT ACTION.--PRIOR TO THE IMPOSITION OF THE TAX
15 INCREASE UNDER SUBSECTION (F)(1), (2), (4), (6), (7) OR (8),
16 APPROVAL BY THE COURT OF COMMON PLEAS IN THE JUDICIAL DISTRICT
17 IN WHICH THE ADMINISTRATIVE OFFICE OF THE SCHOOL DISTRICT IS
18 LOCATED MUST BE OBTAINED. THE BOARD OF SCHOOL DIRECTORS SHALL
19 PUBLISH IN A NEWSPAPER OF GENERAL CIRCULATION A NOTICE OF ITS
20 INTENT TO FILE AN ACTION UNDER THIS SUBSECTION AT LEAST ONE WEEK
21 PRIOR TO THE FILING OF THE PETITION. THE BOARD OF SCHOOL
22 DIRECTORS SHALL ALSO PUBLISH IN A NEWSPAPER OF GENERAL
23 CIRCULATION NOTICE, AS SOON AS POSSIBLE FOLLOWING NOTIFICATION
24 FROM THE COURT THAT A HEARING HAS BEEN SCHEDULED, STATING THE
25 DATE, TIME AND PLACE OF THE HEARING ON THE PETITION. THE
26 FOLLOWING SHALL APPLY TO ANY PROCEEDINGS INSTITUTED UNDER THIS
27 SUBSECTION:
28 (1) THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
29 AND CONVINCING EVIDENCE THE NECESSITY FOR THE TAX INCREASE.
30 (2) THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
20030S0100B1110 - 55 -
1 AND CONVINCING EVIDENCE THE ANTICIPATED DOLLAR VALUE OF THE
2 EXPENDITURE FOR WHICH AN EXCEPTION UNDER SUBSECTION (F) IS
3 SOUGHT.
4 (3) THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
5 AND CONVINCING EVIDENCE THAT THERE ARE NO ASSETS OR OTHER
6 FEASIBLE ALTERNATIVES AVAILABLE TO THE SCHOOL DISTRICT.
7 (4) THE COURT SHALL DETERMINE THE DOLLAR VALUE OF THE
8 EXPENDITURE FOR WHICH AN EXCEPTION UNDER SUBSECTION (F) IS
9 SOUGHT, THE RATE INCREASE REQUIRED AND THE APPROPRIATE
10 DURATION OF THE INCREASE. THE COURT MAY RETAIN CONTINUING
11 JURISDICTION AND MAY, ON ITS OWN MOTION OR ON PETITION OF AN
12 INTERESTED PARTY, REVOKE APPROVAL FOR OR ORDER RESCISSION OF
13 A TAX INCREASE.
14 (J) STANDING.--A PERSON SHALL HAVE STANDING AS A PARTY TO A
15 PROCEEDING UNDER THIS SECTION AS LONG AS THE PERSON RESIDES
16 WITHIN OR PAYS REAL PROPERTY TAXES TO THE TAXING JURISDICTION OF
17 THE BOARD OF SCHOOL DIRECTORS INSTITUTING THE ACTION.
18 (K) AVERAGED INDEX CALCULATION.--ON OR ABOUT JANUARY 15 OF
19 EACH YEAR, THE DEPARTMENT OF EDUCATION SHALL CALCULATE THE
20 AVERAGE OF THE PERCENTAGE INCREASES IN THE STATEWIDE AVERAGE
21 WEEKLY WAGE AND THE PERCENTAGE INCREASE IN THE EMPLOYMENT COST
22 INDEX FOR THE PREVIOUS 12-MONTH PERIOD. THE DEPARTMENT OF
23 EDUCATION SHALL PUBLISH NOTICE OF THIS CALCULATED AVERAGE BY
24 FEBRUARY 1 OF EACH YEAR IN THE PENNSYLVANIA BULLETIN.
25 SECTION 615-A. PROPERTY TAX LIMITS ON REASSESSMENT.
26 AFTER ANY COUNTY MAKES A COUNTYWIDE REVISION OF ASSESSMENT OF
27 REAL PROPERTY AT VALUES BASED UPON AN ESTABLISHED PREDETERMINED
28 RATIO AS REQUIRED BY LAW OR AFTER ANY COUNTY CHANGES ITS
29 ESTABLISHED PREDETERMINED RATIO, A BOARD OF SCHOOL DIRECTORS IN
30 A SCHOOL DISTRICT WHICH HAS ADOPTED A RESOLUTION IMPOSING THE
20030S0100B1110 - 56 -
1 TAX UNDER SECTION 611-A(A)(1) OR IN WHICH A REFERENDUM UNDER
2 SECTION 613-A HAS BEEN APPROVED, WHICH AFTER THE EFFECTIVE DATE
3 OF THIS SECTION FOR THE FIRST TIME LEVIES ITS REAL ESTATE TAXES
4 ON THAT REVISED ASSESSMENT OR VALUATION, SHALL FOR THE FIRST
5 YEAR REDUCE ITS TAX RATE, IF NECESSARY, FOR THE PURPOSE OF
6 HAVING THE PERCENTAGE INCREASE IN TAXES LEVIED FOR THAT YEAR
7 AGAINST THE REAL PROPERTIES CONTAINED IN THE DUPLICATE FOR THE
8 PRECEDING YEAR BE LESS THAN OR EQUAL TO THE PERCENTAGE INCREASE
9 IN THE AVERAGE INDEX FOR THE PRECEDING YEAR NOTWITHSTANDING THE
10 INCREASED VALUATIONS OF SUCH PROPERTIES UNDER THE REVISED
11 ASSESSMENT. FOR THE PURPOSE OF DETERMINING THE TOTAL AMOUNT OF
12 TAXES TO BE LEVIED FOR THE FIRST YEAR, THE AMOUNT TO BE LEVIED
13 ON NEWLY CONSTRUCTED BUILDINGS OR STRUCTURES OR ON INCREASED
14 VALUATIONS BASED ON NEW IMPROVEMENTS MADE TO EXISTING HOUSES
15 NEED NOT BE CONSIDERED. THE TAX RATE SHALL BE FIXED FOR THAT
16 YEAR AT A FIGURE WHICH WILL ACCOMPLISH THIS PURPOSE. THE
17 PROVISIONS OF SECTION 614-A SHALL APPLY TO INCREASES IN THE TAX
18 RATE ABOVE THE LIMITS PROVIDED IN THIS SECTION.
19 (C) EARNED INCOME AND NET PROFITS TAX
20 OR PERSONAL INCOME TAX
21 SECTION 621-A. AUTHORIZATION.
22 (A) GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS MAY CHOOSE TO
23 LEVY, ASSESS AND COLLECT A TAX ON EARNED INCOME AND NET PROFITS
24 OR A PERSONAL INCOME TAX UNDER THIS SECTION.
25 (B) EARNED INCOME AND NET PROFITS TAX.--
26 (1) A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
27 COLLECT A TAX ON EARNED INCOME AND NET PROFITS OF RESIDENT
28 INDIVIDUALS OF THE SCHOOL DISTRICT AT THE RATE AND PURSUANT
29 TO THE AUTHORITY PROVIDED IN SECTION 611-A(A)(1) WITHOUT
30 SUBMITTING THE QUESTION TO THE VOTERS IN A REFERENDUM UNDER
20030S0100B1110 - 57 -
1 SECTION 613-A.
2 (2) A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
3 COLLECT AN ADDITIONAL TAX ON THE EARNED INCOME AND NET
4 PROFITS OF RESIDENT INDIVIDUALS OF THE SCHOOL DISTRICT.
5 (3) THE COMBINED RATE OF THE EARNED INCOME AND NET
6 PROFITS TAX AUTHORIZED UNDER PARAGRAPHS (1) AND (2) SHALL NOT
7 BE AT A RATE LESS THAN THE RATE REQUIRED TO PROVIDE REVENUE,
8 IN ADDITION TO THE STATE MATCH FROM THE FUND, FOR AN
9 EXCLUSION FOR FARMSTEAD PROPERTY AND AN EXCLUSION FOR
10 HOMESTEAD PROPERTY EQUAL TO 50% OF THE MAXIMUM EXCLUSION
11 UNDER 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS) AND SHALL
12 NOT EXCEED THE RATE REQUIRED TO PROVIDE AN EXCLUSION FOR
13 FARMSTEAD PROPERTY AND AN EXCLUSION FOR HOMESTEAD PROPERTY
14 EQUAL TO THE MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586. THE
15 BOARD OF SCHOOL DIRECTORS SHALL ROUND THE RATE OF THE EARNED
16 INCOME AND NET PROFITS TAX LEVIED PURSUANT TO THIS SECTION TO
17 THE NEAREST TENTH OF A PERCENT. THE EXCLUSION FOR FARMSTEAD
18 PROPERTY GRANTED UNDER THIS SECTION SHALL NOT EXCEED THE
19 AMOUNT GRANTED FOR THE EXCLUSION FOR HOMESTEAD PROPERTY.
20 (C) PERSONAL INCOME TAX.--
21 (1) A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
22 COLLECT A TAX ON THE PERSONAL INCOME OF RESIDENT INDIVIDUALS
23 OF THE SCHOOL DISTRICT AT A RATE DETERMINED BY THE BOARD OF
24 SCHOOL DIRECTORS.
25 (2) THE PERSONAL INCOME TAX AUTHORIZED UNDER PARAGRAPH
26 (1) SHALL EQUAL THE SUM OF THE RATE REQUIRED TO GENERATE THE
27 SAME AMOUNT OF EARNED INCOME AND NET PROFITS TAX REVENUE
28 RECEIVED BY THE SCHOOL DISTRICT PRIOR TO THE ADOPTION OF THIS
29 SUBSECTION AND PURSUANT TO SECTION 611-A(A)(1) AND TO PROVIDE
30 AN EXCLUSION FOR FARMSTEAD PROPERTY AND AN EXCLUSION FOR
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1 HOMESTEAD PROPERTY EQUAL TO 50% OF THE MAXIMUM EXCLUSION
2 UNDER 53 PA.C.S. § 8586 AND SHALL NOT EXCEED THE RATE
3 REQUIRED TO PROVIDE AN EXCLUSION FOR FARMSTEAD PROPERTY AND
4 AN EXCLUSION FOR HOMESTEAD PROPERTY EQUAL TO THE MAXIMUM
5 EXCLUSION UNDER 53 PA.C.S. § 8586. THE BOARD OF SCHOOL
6 DIRECTORS SHALL ROUND THE RATE OF THE PERSONAL INCOME TAX
7 PURSUANT TO THIS SECTION TO THE NEAREST TENTH OF A PERCENT.
8 THE EXCLUSION FOR FARMSTEAD PROPERTY GRANTED UNDER THIS
9 SECTION SHALL NOT EXCEED THE AMOUNT GRANTED FOR THE EXCLUSION
10 FOR HOMESTEAD PROPERTY.
11 (3) IF A BOARD OF SCHOOL DIRECTORS ELECTS TO IMPOSE A
12 PERSONAL INCOME TAX UNDER THIS SUBSECTION, THE BOARD OF
13 SCHOOL DIRECTORS SHALL NOT BE PERMITTED TO IMPOSE THE EARNED
14 INCOME AND NET PROFITS TAX UNDER SUBSECTION (B) OR UNDER THE
15 LOCAL TAX ENABLING ACT.
16 (4) A PERSONAL INCOME TAX IMPOSED UNDER THE AUTHORITY OF
17 THIS ARTICLE SHALL BE LEVIED AND ASSESSED ON THE SAME BASIS
18 AND ADMINISTERED IN THE SAME FASHION AS THE TAX IMPOSED BY
19 ARTICLE III OF THE TAX REFORM CODE, THE PROVISIONS OF WHICH
20 ARE INCORPORATED BY REFERENCE INTO THIS ARTICLE.
21 (I) NOTWITHSTANDING THE PROVISIONS OF SECTION 353(F)
22 OF THE TAX REFORM CODE, THE DEPARTMENT OF REVENUE MAY
23 PERMIT THE PROPER OFFICER OF A SCHOOL DISTRICT IMPOSING A
24 TAX PURSUANT TO THIS ARTICLE TO INSPECT THE TAX RETURNS
25 OF ANY TAXPAYER OR MAY FURNISH TO THE OFFICER OR AN
26 AUTHORIZED REPRESENTATIVE AN ABSTRACT OF THE RETURN OF
27 INCOME OF ANY CURRENT OR FORMER RESIDENT OF THE SCHOOL
28 DISTRICT, OR SUPPLY INFORMATION CONCERNING ANY ITEM OF
29 INCOME CONTAINED IN ANY TAX RETURN. THE OFFICER OR
30 AUTHORIZED AGENT OF THE SCHOOL DISTRICT IMPOSING A TAX
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1 UNDER THIS ARTICLE SHALL BE FURNISHED THE REQUESTED
2 INFORMATION UPON PAYMENT TO THE DEPARTMENT OF THE COST OF
3 COLLECTING AND REPRODUCING THE REQUESTED INFORMATION.
4 (II) (A) EXCEPT FOR OFFICIAL PURPOSES OR AS
5 PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR ANY
6 OFFICER, AGENT OR EMPLOYEE OF A SCHOOL DISTRICT TO DO
7 ANY OF THE FOLLOWING:
8 (I) DISCLOSE THE AMOUNT OR SOURCE OF INCOME,
9 PROFITS, LOSSES, EXPENDITURES OR ANY PARTICULAR
10 INFORMATION CONCERNING INCOME, PROFITS, LOSSES OR
11 EXPENDITURES CONTAINED IN ANY RETURN.
12 (II) PERMIT ANY RETURN OR COPY OF A RETURN
13 OR ANY BOOK CONTAINING ANY ABSTRACT OR
14 PARTICULARS TO BE SEEN OR EXAMINED.
15 (III) PRINT OR PUBLISH IN ANY MANNER ANY
16 RETURN OR ANY PARTICULAR INFORMATION CONCERNING
17 THE RETURN.
18 (IV) PRINT OR PUBLISH IN ANY MANNER ANY
19 AMOUNT OR SOURCE OF INCOME, PROFITS, LOSSES,
20 EXPENDITURES OR ANY PARTICULAR INFORMATION
21 CONCERNING INCOME, PROFITS, LOSSES OR
22 EXPENDITURES CONTAINED IN ANY RETURN.
23 (B) ANY OFFICER, AGENT OR EMPLOYEE OF A SCHOOL
24 DISTRICT THAT VIOLATES CLAUSE (A):
25 (I) MAY BE FINED NOT MORE THAN $1,000 OR
26 IMPRISONED FOR NOT MORE THAN ONE YEAR, OR BOTH.
27 (II) SHALL BE DISMISSED FROM OFFICE OR
28 DISCHARGED FROM EMPLOYMENT.
29 (D) PROHIBITIONS.--
30 (1) A SCHOOL DISTRICT THAT LEVIES A LOCAL PERSONAL
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1 INCOME TAX UNDER THIS SECTION SHALL HAVE NO POWER TO LEVY,
2 ASSESS OR COLLECT THE EARNED INCOME AND NET PROFITS TAX UNDER
3 THIS SECTION.
4 (2) PAYMENT OF ANY TAX ON INCOME TO ANY STATE OTHER THAN
5 PENNSYLVANIA OR TO ANY POLITICAL SUBDIVISION LOCATED OUTSIDE
6 THE BOUNDARIES OF THIS COMMONWEALTH, BY RESIDENTS OF A SCHOOL
7 DISTRICT LOCATED IN PENNSYLVANIA SHALL NOT BE CREDITED TO AND
8 ALLOWED AS A DEDUCTION FROM THE LIABILITY OF SUCH PERSON FOR
9 ANY INCOME TAX IMPOSED BY THE SCHOOL DISTRICT OF RESIDENCE.
10 SECTION 622-A. COLLECTIONS.
11 A BOARD OF SCHOOL DIRECTORS IMPOSING A TAX UNDER THIS ARTICLE
12 SHALL DESIGNATE A TAX OFFICER UNDER SECTION 10 OF THE LOCAL TAX
13 ENABLING ACT, OR OTHERWISE BY LAW, AS THE COLLECTOR OF THE
14 EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX. IN THE
15 PERFORMANCE OF THE TAX COLLECTION DUTIES UNDER THIS SUBDIVISION,
16 THE DESIGNATED TAX OFFICER SHALL HAVE ALL THE SAME POWERS,
17 RIGHTS, RESPONSIBILITIES AND DUTIES FOR THE COLLECTION OF THE
18 TAXES WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING ACT, 53
19 PA.C.S. CH. 84 SUBCH. C (RELATING TO LOCAL TAXPAYERS BILL OF
20 RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
21 SECTION 623-A. CREDITS AND REIMBURSEMENT.
22 (A) CREDIT.--THE PROVISIONS OF SECTION 14 OF THE LOCAL TAX
23 ENABLING ACT SHALL BE APPLIED BY A BOARD OF SCHOOL DIRECTORS TO
24 DETERMINE ANY CREDITS UNDER THE PROVISIONS OF THIS SUBDIVISION
25 FOR A TAX IMPOSED UNDER SECTION 621-A.
26 (B) REIMBURSEMENT.--NOTWITHSTANDING ANY OTHER PROVISIONS OF
27 LAW TO THE CONTRARY, THE FOLLOWING APPLY:
28 (1) THIS SUBSECTION ONLY APPLIES TO A TAXPAYER WHO IS A
29 RESIDENT OF THIS COMMONWEALTH AND NOT A RESIDENT OF A CITY OF
30 THE FIRST CLASS BUT WHO IS SUBJECT TO THE TAX ON SALARIES,
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1 WAGES, COMMISSIONS OR OTHER COMPENSATION IMPOSED BY A CITY OF
2 THE FIRST CLASS UNDER THE AUTHORITY OF THE ACT OF AUGUST 5,
3 1932 (SP.SESS., P.L.45, NO.45), REFERRED TO AS THE STERLING
4 ACT.
5 (2) PAYMENT OF A TAX ON SALARIES, WAGES, COMMISSION OR
6 OTHER COMPENSATION AS SET FORTH IN PARAGRAPH (1) SHALL BE
7 CREDITED TO THE SCHOOL DISTRICT OF THE TAXPAYER'S RESIDENCE
8 AT AN AMOUNT NO GREATER THAN THE RATE OF TAX IMPOSED ON THE
9 EARNED INCOME AND NET PROFITS OF THE TAXPAYER BY THE SCHOOL
10 DISTRICT IN WHICH THE TAXPAYER RESIDES.
11 (3) FOR FISCAL YEARS BEGINNING AFTER JUNE 30, 2004, AN
12 AMOUNT EQUAL TO THE AGGREGATE AMOUNT OF THE TAX CREDITED
13 UNDER PARAGRAPH (2) SHALL BE PAID FROM THE FUND TO THE SCHOOL
14 DISTRICT OF RESIDENCE OF EACH TAXPAYER UNDER PARAGRAPH (1)
15 FOR THE SOLE PURPOSE OF FUNDING HOMESTEAD AND FARMSTEAD
16 EXCLUSIONS IN ACCORDANCE WITH THIS ARTICLE. THE DEPARTMENT OF
17 EDUCATION SHALL PRESCRIBE PROCEDURES TO CALCULATE THE AMOUNT
18 DUE TO EACH SCHOOL DISTRICT QUALIFYING UNDER THIS PARAGRAPH.
19 SECTION 624-A. EXEMPTION AND SPECIAL PROVISIONS.
20 (A) GENERAL RULE.--A SCHOOL DISTRICT THAT IMPOSES AN EARNED
21 INCOME AND NET PROFITS TAX UNDER SECTION 621-A MAY EXEMPT FROM
22 THE PAYMENT OF THAT TAX ANY PERSON WHOSE TOTAL INCOME FROM ALL
23 SOURCES IS LESS THAN $10,000.
24 (B) APPLICABILITY.--THE PROVISIONS OF SECTION 304 OF THE TAX
25 REFORM CODE SHALL APPLY TO THE LOCAL PERSONAL INCOME TAX BY ANY
26 SCHOOL DISTRICT THAT LEVIES A TAX ON PERSONAL INCOME OF
27 RESIDENTS UNDER SECTION 621-A(C).
28 SECTION 625-A. RULES AND REGULATIONS.
29 A SCHOOL DISTRICT THAT IMPOSES:
30 (1) AN EARNED INCOME AND NET PROFITS TAX UNDER SECTION
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1 621-A SHALL BE SUBJECT TO ALL REGULATIONS ADOPTED UNDER
2 SECTION 13 OF THE LOCAL TAX ENABLING ACT AND MAY ADOPT
3 REGULATIONS FOR THE PROCESSING OF CLAIMS FOR CREDITS OR
4 EXEMPTIONS UNDER SECTIONS 623-A AND 624-A; OR
5 (2) A PERSONAL INCOME TAX UNDER SECTION 621-A SHALL BE
6 SUBJECT TO ALL REGULATIONS ADOPTED BY THE DEPARTMENT OF
7 REVENUE IN ADMINISTERING THE TAX DUE TO THE COMMONWEALTH
8 UNDER SECTION 302 OF THE TAX REFORM CODE.
9 SECTION 626-A. PROCEDURE AND ADMINISTRATION.
10 (A) LEVY.--IN ORDER TO LEVY A TAX UNDER SECTION 621-A, THE
11 BOARD OF SCHOOL DIRECTORS MUST ADOPT A RESOLUTION REFERRING TO
12 THIS SUBDIVISION PRIOR TO PLACING A REFERENDUM QUESTION ON THE
13 BALLOT UNDER SECTION 613-A. PRIOR TO ADOPTING A RESOLUTION
14 IMPOSING A TAX UNDER SECTION 621-A(B)(2) OR (C), THE BOARD OF
15 SCHOOL DIRECTORS MUST GIVE PUBLIC NOTICE OF ITS INTENT TO ADOPT
16 THE RESOLUTION IN THE MANNER PROVIDED BY SECTION 4 OF THE LOCAL
17 TAX ENABLING ACT AND MUST CONDUCT AT LEAST ONE PUBLIC HEARING
18 REGARDING THE PROPOSED ADOPTION OF THE RESOLUTION.
19 (B) CALCULATION.--FOR THE PURPOSES OF PROPOSING A RESOLUTION
20 AND REFERENDUM UNDER SECTION 613-A(C), THE BOARD OF SCHOOL
21 DIRECTORS SHALL CALCULATE:
22 (1) THE VALUE OF HOMESTEAD PROPERTY IN THE SCHOOL
23 DISTRICT BY DIVIDING THE TOTAL ASSESSED VALUE OF RESIDENTIAL
24 PROPERTY IN THE SCHOOL DISTRICT IN CALENDAR YEAR 2002, AS
25 COMPILED BY THE STATE TAX EQUALIZATION BOARD, BY THE TOTAL
26 NUMBER OF OWNER-OCCUPIED HOUSING UNITS IN THE SCHOOL DISTRICT
27 AS REPORTED BY THE UNITED STATES CENSUS BUREAU FOR THE 2000
28 CENSUS IN SUMMARY FILE 1.
29 (2) THE MAXIMUM HOMESTEAD EXCLUSION BY MULTIPLYING THE
30 QUOTIENT FROM PARAGRAPH (1) BY 0.50.
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1 (3) THE PROPOSED HOMESTEAD EXCLUSION FOR THE SCHOOL
2 DISTRICT BY MULTIPLYING THE PRODUCT FROM PARAGRAPH (2) BY A
3 NUMBER AS DETERMINED BY THE BOARD OF SCHOOL DIRECTORS,
4 PROVIDING THAT SUCH NUMBER IS GREATER THAN OR EQUAL TO 0.50
5 AND LESS THAN OR EQUAL TO 1.0.
6 (4) THE PROPOSED REDUCTION IN REAL PROPERTY TAXES FOR
7 THE SCHOOL DISTRICT BY MULTIPLYING THE PRODUCT FROM PARAGRAPH
8 (3) BY THE REAL PROPERTY TAX MILLAGE RATE OF THE SCHOOL
9 DISTRICT IN EFFECT FOR THE 2001-2002 SCHOOL YEAR.
10 (C) CONFLICT.--IN ANY SITUATION WHERE THERE IS A CONFLICT
11 INVOLVING THE AUTHORITY CONFERRED ON A LOCAL TAX COLLECTOR, BY
12 THE PROVISIONS OF THE LOCAL TAX ENABLING ACT AND THE TAX REFORM
13 CODE, THE PROVISIONS OF THE LOCAL TAX ENABLING ACT SHALL
14 CONTROL.
15 SECTION 627-A. DISPOSITION OF INCOME TAX REVENUE.
16 (A) SCHOOL YEAR OF IMPLEMENTATION.--
17 (1) FOR THE FIRST SCHOOL YEAR THAT A TAX IMPOSED
18 PURSUANT TO SECTION 611-A(A)(1) OR A TAX AUTHORIZED PURSUANT
19 TO SECTION 613-A IS IMPLEMENTED, AN INCREASE IN REVENUE
20 RECEIVED BY A SCHOOL DISTRICT THAT IS DIRECTLY ATTRIBUTABLE
21 TO ANY OF THE FOLLOWING SHALL BE USED BY THE SCHOOL DISTRICT
22 TO PROVIDE FOR A REDUCTION IN THE SCHOOL DISTRICT PROPERTY
23 TAX BY MEANS OF AN EXCLUSION FOR FARMSTEAD PROPERTY AND
24 HOMESTEAD PROPERTY:
25 (I) IMPLEMENTATION OF A NEW TAX ON EARNED INCOME AND
26 NET PROFITS.
27 (II) IMPLEMENTATION OF A NEW TAX ON PERSONAL INCOME.
28 (III) AN INCREASE IN THE RATE OF A TAX ON EARNED
29 INCOME AND NET PROFITS.
30 (IV) A CONVERSION OF A TAX ON PERSONAL INCOME FROM A
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1 TAX ON EARNED INCOME AND NET PROFITS.
2 (2) IN THE SECOND SCHOOL YEAR AND EACH SCHOOL YEAR
3 THEREAFTER, THE FUNDS DERIVED FROM THE SOURCES DELINEATED IN
4 PARAGRAPH (1) SHALL BE USED TO THE EXTENT NECESSARY TO
5 CONTINUE TO PROVIDE FOR A REDUCTION IN SCHOOL DISTRICT
6 PROPERTY TAXES AT THE LEVEL ESTABLISHED IN THE IMMEDIATELY
7 PRIOR SCHOOL YEAR.
8 (B) SUBSEQUENT RATE INCREASES OR BASE CHANGES.--
9 (1) FOR THE SCHOOL YEAR OF IMPLEMENTATION OF AN INCREASE
10 IN THE RATE OF AN EXISTING TAX IMPOSED UNDER SECTION 621-A OR
11 THE CONVERSION OF A TAX ON PERSONAL INCOME FROM A TAX ON
12 EARNED INCOME AND NET PROFITS UNDER THIS ARTICLE, ALL REVENUE
13 RECEIVED BY A SCHOOL DISTRICT DIRECTLY ATTRIBUTABLE TO THE
14 INCREASED RATE OR CONVERSION SHALL BE USED TO REDUCE THE
15 SCHOOL DISTRICT REAL PROPERTY TAX BY MEANS OF AN EXCLUSION
16 FOR FARMSTEAD PROPERTY AND HOMESTEAD PROPERTY PURSUANT TO
17 SECTION 621-A.
18 (2) IN THE SECOND SCHOOL YEAR AFTER THE IMPLEMENTATION
19 OF AN INCREASE REFERRED TO IN PARAGRAPH (1) AND EACH SCHOOL
20 YEAR THEREAFTER, THE FUNDS DERIVED FROM THE SOURCES
21 DELINEATED IN PARAGRAPH (1) SHALL BE USED TO THE EXTENT
22 NECESSARY TO CONTINUE TO PROVIDE FOR A REDUCTION IN SCHOOL
23 DISTRICT PROPERTY TAXES AT THE LEVEL ESTABLISHED IN THE
24 IMMEDIATELY PRIOR SCHOOL YEAR.
25 (C) SCHOOL DISTRICT COSTS.--NOT MORE THAN 2% OF THE INCREASE
26 IN REVENUE CALCULATED UNDER SUBSECTION (A)(1) MAY BE RETAINED BY
27 THE SCHOOL DISTRICT TO OFFSET COSTS TO IMPLEMENT THIS ARTICLE.
28 (D) EXCLUSIVE USE.--ALL FUNDS RECEIVED BY A SCHOOL DISTRICT
29 FROM THE FUND IN ANY SCHOOL YEAR PURSUANT TO ITS PROPERTY TAX
30 REDUCTION ALLOCATION SHALL BE USED EXCLUSIVELY TO PROVIDE FOR A
20030S0100B1110 - 65 -
1 REDUCTION IN THE SCHOOL DISTRICT REAL PROPERTY TAX BY MEANS OF
2 AN EXCLUSION FROM FARMSTEAD PROPERTY AND HOMESTEAD PROPERTY
3 PURSUANT TO THE PROVISIONS OF SUBDIVISION (D).
4 (D) HOMESTEAD EXCLUSION
5 SECTION 691-A. CHANGES TO THE AMOUNT OF THE HOMESTEAD
6 EXCLUSION.
7 (A) INCREASES IN THE HOMESTEAD EXCLUSION.--A SCHOOL DISTRICT
8 MAY INCREASE THE AMOUNT OF THE EXCLUSION FOR HOMESTEAD PROPERTY
9 REQUIRED PURSUANT TO SECTION 627-A CONSISTENT WITH THE
10 PROHIBITIONS IN 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS).
11 (B) DECREASES IN THE HOMESTEAD EXCLUSION.--A SCHOOL DISTRICT
12 MAY ONLY REDUCE THE EXCLUSION FOR HOMESTEAD PROPERTY BELOW THE
13 LEVEL AUTHORIZED PURSUANT TO SUBSECTION (C), SECTION 692-A(B)
14 AND THE REFERENDUM REQUIRED UNDER SECTION 613-A, WHEN THE MEDIAN
15 ASSESSED VALUE USED IN CALCULATING THE HOMESTEAD EXCLUSION
16 DECREASES.
17 (C) REASSESSMENT.--AFTER A REVISION OF ASSESSMENTS BY MEANS
18 OF REVALUING ALL PROPERTIES, THE GOVERNING BODY PROVIDING AN
19 EXCLUSION FOR HOMESTEAD PROPERTY UNDER SECTION 613-A SHALL
20 ADJUST THE AMOUNT OF THE EXCLUSION PURSUANT TO 53 PA.C.S. §
21 8583(E) (RELATING TO EXCLUSION FOR HOMESTEAD PROPERTY).
22 (D) EXCESS FUNDING.--A SCHOOL DISTRICT WHICH COLLECTS OR
23 ANTICIPATES COLLECTING REVENUE FROM TAXES AUTHORIZED UNDER THIS
24 ARTICLE, TOGETHER WITH STATE FUNDS RECEIVED PURSUANT TO ARTICLE
25 VI-B, IN AN AMOUNT GREATER THAN THAT NECESSARY TO PROVIDE FOR
26 HOMESTEAD EXCLUSIONS EQUAL TO 100% OF THE AMOUNT AUTHORIZED
27 PURSUANT TO THE CONSTITUTION OF PENNSYLVANIA SHALL USE THOSE
28 EXCESS TO EITHER:
29 (1) REDUCE THE RATE OF ITS EARNED INCOME AND NET PROFITS
30 TAX OR ITS PERSONAL INCOME TAX TO A LEVEL THAT RETURNS TO
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1 THOSE TAXPAYERS ALL EXCESS FUNDS; OR
2 (2) REDUCE THE MILLAGE RATE ON ALL TAXABLE REAL PROPERTY
3 WITHIN THE SCHOOL DISTRICT TO THE EXTENT NECESSARY TO USE ALL
4 THE EXCESS REVENUE FOR PROPERTY TAX RELIEF.
5 (E) REDUCTION IN FUNDING.--IN ANY YEAR SUBSEQUENT TO A YEAR
6 IN WHICH AN INCOME TAX RATE WAS REDUCED PURSUANT TO SUBSECTION
7 (D), IF THE REVENUE COLLECTED OR ANTICIPATED TO BE COLLECTED
8 UNDER THIS ARTICLE AND ARTICLE VI-B FALLS BELOW THE AMOUNT
9 NECESSARY TO MAINTAIN HOMESTEAD PROPERTY TAX EXCLUSIONS AT 100%
10 OF THE MAXIMUM, THE SCHOOL DISTRICT MAY RERAISE THE RATE OF THE
11 INCOME TAX SO REDUCED BY THE AMOUNT PREVIOUSLY REDUCED WITHOUT
12 COMPLYING WITH THE REFERENDUM PROVISIONS OF SECTION 613-A OR
13 614-A.
14 SECTION 692-A. HOMESTEAD EXCLUSION PROCESS.
15 (A) NOTIFICATION TO PROPERTY OWNERS.--IF THE BOARD OF SCHOOL
16 DIRECTORS IMPOSES A TAX UNDER SECTION 611-A(A)(1) OR IF THE
17 ELECTORS OF A SCHOOL DISTRICT APPROVE A REFERENDUM QUESTION
18 PURSUANT TO SECTION 613-A, THE BOARD OF SCHOOL DIRECTORS SHALL,
19 BY FIRST CLASS MAIL, NOTIFY THE OWNERS OF EACH PARCEL OF
20 PROPERTY WITHIN THE DISTRICT OF THE FOLLOWING INFORMATION AT A
21 MINIMUM:
22 (1) THE RATE OF ADDITIONAL EARNED INCOME AND NET PROFITS
23 TAX OR PERSONAL INCOME TAX APPROVED PURSUANT TO SECTIONS 611-
24 A AND 613-A.
25 (2) THE ESTIMATED DOLLAR AMOUNT OF PROPERTY TAX RELIEF
26 REALIZED FOR EACH QUALIFYING HOMESTEAD AND FARMSTEAD PROPERTY
27 AS PROJECTED BY SECTION 626-A. THIS INFORMATION SHALL BE
28 ACCOMPANIED BY A STATEMENT THAT THE ACTUAL DOLLAR PROPERTY
29 TAX RELIEF MAY BE AFFECTED BY THE TOTAL NUMBER OF
30 APPLICATIONS RECEIVED AND APPROVED.
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1 (3) THE REQUIREMENT TO SUBMIT A COMPLETED APPLICATION AS
2 REQUIRED UNDER 53 PA.C.S. CH. 85 SUBCH. F (RELATING TO
3 HOMESTEAD PROPERTY EXCLUSION) IN ORDER TO QUALIFY FOR THE
4 PROPERTY TAX REDUCTIONS ESTIMATED IN PARAGRAPH (2).
5 THE NOTICE REQUIRED BY THIS SECTION SHALL INCLUDE A COPY OF THE
6 APPLICATION REQUIRED BY THE ASSESSOR OF THE COUNTY WHERE THE
7 PROPERTY IS LOCATED AND THE INSTRUCTIONS FOR COMPLETING AND
8 RETURNING THE APPLICATION. THE NOTICE REQUIRED BY THIS
9 SUBSECTION SHALL BE MADE BY DECEMBER 15, 2003, AND AGAIN BY
10 JANUARY 31, 2004.
11 (B) REVISIONS TO THE INITIAL CALCULATION OF HOMESTEAD AND
12 FARMSTEAD EXCLUSION FOR SCHOOL DISTRICTS.--IF THE BOARD OF
13 SCHOOL DIRECTORS IMPOSES A TAX UNDER SECTION 611-A(A)(1) OR IF
14 THE ELECTORS OF A SCHOOL DISTRICT APPROVE A REFERENDUM QUESTION
15 PURSUANT TO 613-A(C), THE BOARD OF SCHOOL DIRECTORS SHALL REVISE
16 THE CALCULATION UTILIZED UNDER SECTION 626-A(B) WITH INFORMATION
17 DERIVED FROM THE SUPPLEMENTAL REPORT FROM THE ASSESSOR UNDER
18 THIS SECTION. SUCH REVISED CALCULATION SHALL BE USED TO PROVIDE
19 HOMESTEAD AND FARMSTEAD EXCLUSIONS. WHERE THE TAX IMPOSED UNDER
20 SECTION 621-A IS INSUFFICIENT TO PROVIDE THE HOMESTEAD AND
21 FARMSTEAD EXCLUSIONS AUTHORIZED THROUGH APPROVAL OF A REFERENDUM
22 QUESTION, THE EXCLUSIONS MAY BE REDUCED ACCORDINGLY.
23 (C) APPEALS.--REAL PROPERTY FOR WHICH AN APPLICATION UNDER
24 53 PA.C.S. § 8584 (RELATING TO ADMINISTRATION AND PROCEDURE) HAS
25 BEEN FILED BY MARCH 1, 2004, SHALL BE DEEMED TO BE A HOMESTEAD
26 PROPERTY OR FARMSTEAD PROPERTY, AS THE CASE MAY BE, FOR THE
27 PURPOSES OF IMPLEMENTING A HOMESTEAD OR FARMSTEAD EXCLUSION
28 UNDER 53 PA.C.S. § 8717 (RELATING TO DISPOSITION OF EARNED
29 INCOME AND NET PROFITS TAX REVENUE) IN THE SCHOOL DISTRICT
30 FISCAL YEAR BEGINNING JULY 1, 2004, UNLESS THE ASSESSOR DENIES
20030S0100B1110 - 68 -
1 THE APPLICATION WITHIN THE TIME PROVIDED BY LAW AND THE DENIAL
2 IS UNAPPEALED OR UNAPPEALABLE. THE SCHOOL DISTRICT IS AUTHORIZED
3 TO COLLECT TAXES, INTEREST AND PENALTIES RELATING TO A HOMESTEAD
4 OR FARMSTEAD EXCLUSION THAT IS DENIED AFTER THE DENIAL IS
5 UNAPPEALED OR UNAPPEALABLE.
6 (D) REPORTS.--IN ADDITION TO THE REPORT REQUIRED UNDER 53
7 PA.C.S. § 8584(I), THE ASSESSOR SHALL BE REQUIRED TO PROVIDE A
8 SUPPLEMENTAL REPORT CONTAINING THE INFORMATION REQUIRED UNDER 53
9 PA.C.S. § 8584(I) FOR APPLICATIONS FILED BY MARCH 1, 2004. THE
10 DATE OF THE SUPPLEMENTAL REPORT SHALL BE SET BY THE SCHOOL
11 DISTRICT, BUT SHALL NOT BE EARLIER THAN JUNE 1, 2004.
12 (E) DUTIES OF ASSESSORS--THE ASSESSOR SHALL MAIL TO THE
13 OWNER OF EACH HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY FOR
14 WHICH AN APPLICATION HAS BEEN SUBMITTED AND APPROVED PRIOR TO
15 THE EFFECTIVE DATE OF THIS SECTION A NOTICE STATING THE DATE BY
16 WHICH THE OWNER WOULD BE REQUIRED TO RESUBMIT AN APPLICATION TO
17 MAINTAIN THE PROPERTY'S STATUS AS HOMESTEAD PROPERTY OR
18 FARMSTEAD PROPERTY UNDER THE COUNTY'S SCHEDULE FOR REVIEW OR
19 REAPPLICATION FOR HOMESTEAD AND FARMSTEAD EXCLUSIONS. THE NOTICE
20 UNDER THIS SECTION SHALL BE MADE BY FIRST CLASS MAIL NO LATER
21 THAN DECEMBER 15, 2003.
22 (F) PROHIBITION.--A COUNTY SHALL NOT REQUIRE AN APPLICATION
23 FEE FOR THE SUBMISSION OR REVIEW OF APPLICATIONS SUBMITTED TO
24 QUALIFY FOR A HOMESTEAD EXCLUSION OR FARMSTEAD EXCLUSION UNDER
25 THIS ARTICLE OR UNDER 53 PA.C.S. CH. 85 SUBCH. F.
26 (G) APPLICABILITY.--WITH THE EXCEPTION OF SUBSECTION (F),
27 THIS SECTION SHALL APPLY ONLY TO SCHOOL DISTRICTS IN WHICH THE
28 BOARD OF SCHOOL DIRECTORS IMPOSES A TAX UNDER SECTION 611-
29 A(A)(1) OR WHICH APPROVES A REFERENDUM UNDER SECTION 613-A AT
30 THE 2003 MUNICIPAL ELECTION.
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1 (E) REGISTER
2 SECTION 693-A. REGISTER FOR TAXES.
3 (A) GENERAL RULE.--THE DEPARTMENT OF COMMUNITY AND ECONOMIC
4 DEVELOPMENT SHALL MAINTAIN AN OFFICIAL CONTINUING REGISTER
5 SUPPLEMENTED ANNUALLY OF ALL EARNED INCOME AND NET PROFITS TAXES
6 OR PERSONAL INCOME TAXES LEVIED UNDER SUBDIVISION (C).
7 (B) CONTENTS OF REGISTER.--THE REGISTER SHALL LIST:
8 (1) THE SCHOOL DISTRICTS LEVYING THE TAX.
9 (2) THE RATE OF TAX AS STATED IN THE RESOLUTION LEVYING
10 THE TAX.
11 (3) THE RATE ON TAXPAYERS.
12 (4) THE NAME AND ADDRESS OF THE OFFICIAL RESPONSIBLE FOR
13 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM
14 INFORMATION, FORMS AND COPIES OF REGULATIONS ARE AVAILABLE.
15 SECTION 694-A. INFORMATION FOR REGISTER.
16 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE SCHOOL
17 DISTRICT TO THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
18 AS PRESCRIBED BY THE DEPARTMENT. THE INFORMATION MUST BE
19 RECEIVED BY THE DEPARTMENT NO LATER THAN JULY 15 OF EACH YEAR TO
20 SHOW NEW TAX ENACTMENTS, REPEALS AND CHANGES. FAILURE TO COMPLY
21 WITH THE FILING DATE MAY RESULT IN THE OMISSION OF THE TAX LEVY
22 FROM THE REGISTER FOR THAT YEAR. FAILURE OF THE DEPARTMENT TO
23 RECEIVE INFORMATION OF TAXES CONTINUED WITHOUT CHANGE MAY BE
24 CONSTRUED BY THE DEPARTMENT TO MEAN THAT THE INFORMATION
25 CONTAINED IN THE PREVIOUS REGISTER REMAINS IN FORCE.
26 SECTION 695-A. AVAILABILITY AND EFFECTIVE PERIOD OF REGISTER.
27 THE REGISTER, WITH SUCH ANNUAL SUPPLEMENTS AS MAY BE REQUIRED
28 BY NEW TAX ENACTMENTS, REPEALS OR CHANGES, SHALL BE AVAILABLE
29 UPON REQUEST NO LATER THAN AUGUST 15 OF EACH YEAR. THE EFFECTIVE
30 PERIOD FOR EACH REGISTER SHALL BE FROM JULY 1 OF THE YEAR IN
20030S0100B1110 - 70 -
1 WHICH IT IS ISSUED TO JUNE 30 OF THE FOLLOWING YEAR.
2 SECTION 696-A. EFFECT OF NONFILING.
3 EMPLOYERS SHALL NOT BE REQUIRED BY ANY ORDINANCE TO WITHHOLD
4 FROM THE COMPENSATION OF THEIR EMPLOYEES ANY LOCAL EARNED INCOME
5 AND NET PROFITS TAX OR PERSONAL INCOME TAX IMPOSED UNDER
6 SUBDIVISION (C) WHICH IS NOT LISTED IN THE REGISTER OR TO MAKE
7 REPORTS OF COMPENSATION IN CONNECTION WITH TAXES NOT SO LISTED.
8 IF THE REGISTER IS NOT AVAILABLE BY AUGUST 15, THE REGISTER OF
9 THE PREVIOUS YEAR SHALL CONTINUE TO BE EFFECTIVE FOR AN
10 ADDITIONAL PERIOD OF NOT MORE THAN ONE YEAR.
11 SECTION 697-A. EFFECT OF SUBDIVISION ON LIABILITY OF TAXPAYER.
12 THE PROVISIONS OF THIS SUBDIVISION SHALL NOT BE CONSTRUED TO
13 AFFECT THE LIABILITY OF ANY TAXPAYER FOR TAXES LAWFULLY IMPOSED
14 UNDER SUBDIVISIONS (B) AND (C).
15 ARTICLE VI-B
16 STATE MATCHING FUNDS FORMULA
17 SECTION 601-B. SCOPE.
18 THIS ARTICLE RELATES TO THE STATE MATCHING FUNDS FORMULA.
19 SECTION 602-B. DEFINITIONS.
20 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
21 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
22 CONTEXT CLEARLY INDICATES OTHERWISE:
23 "PROPERTY TAX REDUCTION INDEX." A QUOTIENT EQUAL TO THE SUM
24 OF THE NUMERICAL RANK OF A SCHOOL DISTRICT'S PERSONAL INCOME
25 VALUATION PER AVERAGE DAILY MEMBERSHIP, THE NUMERICAL RANK OF
26 ITS MARKET-VALUE/INCOME-AID RATIO, THE NUMERICAL RANK OF ITS
27 EQUALIZED MILLAGE AND THE NUMERICAL RANK OF ITS SCHOOL TAX
28 RATIO, DIVIDED BY 1,000.
29 "RESIDENTIAL PROPERTY TAX." THE DOLLAR VALUE OF REAL
30 PROPERTY TAXES PAID BY RESIDENTIAL PROPERTY OWNERS IN A SCHOOL
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1 DISTRICT, DETERMINED BY MULTIPLYING THE REAL PROPERTY TAXES
2 COLLECTED BY THE SCHOOL DISTRICT TIMES THE PERCENTAGE OF THE
3 TOTAL PROPERTY VALUE IN THE SCHOOL DISTRICT CLASSIFIED AS
4 RESIDENTIAL BY THE STATE TAX EQUALIZATION BOARD.
5 "SCHOOL TAX RATIO." THE DOLLAR VALUE OF LOCAL TAXES
6 COLLECTED BY THE SCHOOL DISTRICT OR BY A CITY OF THE FIRST CLASS
7 FOR A SCHOOL DISTRICT OF THE FIRST CLASS DIVIDED BY THE PERSONAL
8 INCOME VALUATION OF THE SCHOOL DISTRICT.
9 SECTION 603-B. STATE PROPERTY TAX REDUCTION ALLOCATION.
10 (A) ADMINISTRATION.--BY AUGUST 15, 2003, THE DEPARTMENT OF
11 EDUCATION SHALL DO ALL OF THE FOLLOWING:
12 (1) ARRAY THE 2001 PERSONAL INCOME VALUATION DIVIDED BY
13 THE 2001-2002 AVERAGE DAILY MEMBERSHIP, THE 2003-2004 MARKET-
14 VALUE/INCOME-AID RATIO, THE 2001-2002 EQUALIZED MILLAGE AND
15 THE 2001-2002 SCHOOL TAX RATIO OF EACH SCHOOL DISTRICT IN
16 RANK ORDER AND ASSIGN EACH SCHOOL DISTRICT A DISCREET
17 NUMERICAL RANK FOR ITS PERSONAL INCOME VALUATION PER AVERAGE
18 DAILY MEMBERSHIP, ITS MARKET-VALUE/INCOME-AID RATIO, ITS
19 EQUALIZED MILLAGE AND ITS SCHOOL TAX RATIO. FOR THE NUMERICAL
20 RANK OF A SCHOOL DISTRICT'S PERSONAL INCOME VALUATION PER
21 AVERAGE DAILY MEMBERSHIP, THE SCHOOL DISTRICT WITH THE LOWEST
22 PERSONAL INCOME VALUATION PER AVERAGE DAILY MEMBERSHIP SHALL
23 HAVE THE HIGHEST NUMERICAL RANK. FOR THE NUMERICAL RANK OF A
24 SCHOOL DISTRICT'S MARKET-VALUE/INCOME-AID RATIO, THE SCHOOL
25 DISTRICT WITH THE HIGHEST MARKET-VALUE/INCOME-AID RATIO SHALL
26 HAVE THE HIGHEST NUMERICAL RANK; PROVIDED THAT ALL SCHOOL
27 DISTRICTS WITH A MARKET-VALUE/INCOME-AID RATIO EQUAL TO 0.15
28 SHALL RECEIVE A RANKING OF 1. FOR THE NUMERICAL RANK OF A
29 SCHOOL DISTRICT'S EQUALIZED MILLAGE, THE SCHOOL DISTRICT WITH
30 THE HIGHEST EQUALIZED MILLAGE SHALL HAVE THE HIGHEST
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1 NUMERICAL RANK. FOR THE NUMERICAL RANK OF A SCHOOL DISTRICT'S
2 SCHOOL TAX RATIO, THE SCHOOL DISTRICT WITH THE HIGHEST SCHOOL
3 TAX RATIO SHALL HAVE THE HIGHEST NUMERICAL RANK.
4 (2) ASSIGN EACH SCHOOL DISTRICT A PROPERTY TAX REDUCTION
5 INDEX.
6 (3) CALCULATE THE PROPERTY TAX REDUCTION ALLOCATION FOR
7 EACH SCHOOL DISTRICT BY MULTIPLYING THE SCHOOL DISTRICT'S
8 ESTIMATED 2002-2003 AVERAGE DAILY MEMBERSHIP BY THE PROPERTY
9 TAX REDUCTION INDEX OF THE SCHOOL DISTRICT AND MULTIPLYING
10 THAT PRODUCT BY THE NECESSARY FACTOR IN ORDER TO ALLOCATE ALL
11 OF THE FUNDS IN THE FUND AS CERTIFIED BY THE SECRETARY OF
12 EDUCATION AND THE DEPARTMENT OF REVENUE, EXCEPT AS FOLLOWS:
13 (I) A SCHOOL DISTRICT FOR WHICH THE ALLOCATION UNDER
14 THIS PARAGRAPH IS LESS THAN THE PRODUCT OF THE 2001-2002
15 RESIDENTIAL PROPERTY TAX OF THE SCHOOL DISTRICT AND 0.15
16 SHALL RECEIVE AN ADDITIONAL AMOUNT SO THAT THE TOTAL
17 ALLOCATION UNDER THIS PARAGRAPH IS EQUAL TO THE PRODUCT
18 OF THE RESIDENTIAL PROPERTY TAX OF THE SCHOOL DISTRICT
19 AND 0.15.
20 (II) A SCHOOL DISTRICT FOR WHICH THE ALLOCATION
21 UNDER THIS PARAGRAPH IS GREATER THAN THE PRODUCT OF THE
22 2001-2002 RESIDENTIAL PROPERTY TAX OF THE SCHOOL DISTRICT
23 AND 0.50 SHALL RECEIVE A TOTAL ALLOCATION EQUAL TO THE
24 PRODUCT OF THE RESIDENTIAL PROPERTY TAX OF THE SCHOOL
25 DISTRICT AND 0.50, EXCEPT AS PROVIDED IN SUBSECTION (D).
26 (4) NOTIFY EACH SCHOOL DISTRICT OF THE AMOUNT OF ITS
27 PROPERTY TAX REDUCTION ALLOCATION BY AUGUST 15, 2003, AND
28 MARCH 1 OF EACH YEAR THEREAFTER.
29 (B) PAYMENT.--FOR THE FISCAL YEAR COMMENCING JULY 1, 2004,
30 AND JULY 1 OF EACH FISCAL YEAR THEREAFTER, THE COMMONWEALTH
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1 SHALL PAY TO EACH ELIGIBLE SCHOOL DISTRICT A PROPERTY TAX
2 REDUCTION ALLOCATION UNDER THE PROVISIONS OF ARTICLE VI-A EQUAL
3 TO THE AMOUNT CALCULATED UNDER SUBSECTION (A)(3). PAYMENTS
4 REQUIRED UNDER THIS SUBSECTION SHALL BE MADE PURSUANT TO SECTION
5 2517(C).
6 (C) DATA.--THE DATA ELEMENTS USED TO DETERMINE THE
7 CALCULATIONS WITHIN THIS SECTION SHALL BE BASED ON THE MOST
8 RECENT DATA, CERTIFIED BY THE DEPARTMENT BY AUGUST 15, 2003.
9 (D) FIRST CLASS SCHOOL DISTRICTS.--THE LIMITATION IN
10 SUBSECTION (A)(3)(II) SHALL NOT APPLY TO THE CALCULATION OF THE
11 PROPERTY TAX REDUCTION ALLOCATION FOR A SCHOOL DISTRICT OF THE
12 FIRST CLASS.
13 (E) REDUCTION OF WAGE TAXES IN A CITY OF THE FIRST CLASS.--A
14 CITY COUNCIL OF A CITY OF THE FIRST CLASS SHALL REDUCE ANY TAX
15 IMPOSED ON THE WAGES OF RESIDENTS AND NONRESIDENTS UNDER THE
16 AUTHORITY OF THE ACT OF AUGUST 5, 1932 (SP.SESS., P.L.45,
17 NO.45), REFERRED TO AS THE STERLING ACT, IN A MANNER CONSISTENT
18 WITH ARTICLE VI-C AND IN ACCORDANCE WITH THE FOLLOWING:
19 (1) FOR RESIDENTS, BY AN AMOUNT EQUAL TO THE AMOUNT OF
20 THE PROPERTY TAX REDUCTION ALLOCATION RECEIVED FROM THE
21 COMMONWEALTH PURSUANT TO SUBSECTION (B) IN AN AMOUNT NOT TO
22 EXCEED THE LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(II) HAD
23 SUCH LIMITATIONS APPLIED.
24 (2) FOR NONRESIDENTS, BY ANY AMOUNT EQUAL TO THE AMOUNT
25 OF THE PROPERTY TAX REDUCTION ALLOCATION RECEIVED FROM THE
26 COMMONWEALTH PURSUANT TO SUBSECTION (B) IN EXCESS OF THE
27 LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(II) HAD SUCH
28 LIMITATIONS APPLIED.
29 ARTICLE VI-C
30 WAGE AND NET PROFITS TAX RELIEF IN CITIES
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1 OF THE FIRST CLASS
2 SECTION 601-C. SCOPE.
3 THIS ARTICLE RELATES TO WAGE AND NET PROFITS TAX RELIEF IN
4 CITIES OF THE FIRST CLASS.
5 SECTION 602-C. DEFINITIONS.
6 (RESERVED)
7 SECTION 603-C. TAX RELIEF.
8 (A) TAX REDUCTION.--A CITY OF THE FIRST CLASS MAY REDUCE THE
9 RATE OF WAGE AND NET PROFITS TAX TO OBTAIN THE COMMONWEALTH
10 FUNDING UNDER THIS ARTICLE. IF THE CITY ELECTS TO REDUCE TAXES
11 PURSUANT TO THIS ARTICLE, FUNDS RECEIVED BY A CITY OF THE FIRST
12 CLASS UNDER THIS ARTICLE FROM THE FUND SHALL BE USED TO OFFSET A
13 REDUCTION BY THE CITY IN FISCAL YEAR 2004-2005 AND EACH FISCAL
14 YEAR THEREAFTER IN THE RATE OF TAX ON WAGES AND NET PROFITS FOR
15 BOTH RESIDENTS AND NONRESIDENTS AS PROVIDED FOR IN SUBSECTION
16 (B) WHICH REDUCTIONS SHALL REMAIN IN EFFECT FOR SO LONG AS SUCH
17 FUNDS ARE PAID TO THE CITY IN AN AMOUNT EQUAL TO THE COST OF
18 SUCH REDUCTIONS.
19 (B) CALCULATION OF REDUCTION.--
20 (1) THE CITY SHALL CALCULATE THE AMOUNT OF THE RATE
21 REDUCTIONS SO THAT THEY EQUAL, BASED ON ESTIMATES CERTIFIED
22 BY THE CITY'S DIRECTOR OF FINANCE AND APPROVED BY THE
23 PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY PRIOR TO
24 THE IMPLEMENTATION OF THE REDUCTIONS, IN COMBINATION WITH ANY
25 REDUCTION IN THE RATE OF UNEARNED INCOME TAX IMPOSED BY A
26 SCHOOL DISTRICT IN THE CITY OF THE FIRST CLASS REQUIRED BY
27 THE ACT OF AUGUST 9, 1963 (P.L.640, NO.338), ENTITLED "AN ACT
28 EMPOWERING CITIES OF THE FIRST CLASS, COTERMINOUS WITH SCHOOL
29 DISTRICTS OF THE FIRST CLASS, TO AUTHORIZE THE BOARDS OF
30 PUBLIC EDUCATION OF SUCH SCHOOL DISTRICTS TO IMPOSE CERTAIN
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1 ADDITIONAL TAXES FOR SCHOOL DISTRICT PURPOSES, AND PROVIDING
2 FOR THE LEVY, ASSESSMENT AND COLLECTION OF SUCH TAXES," AS A
3 RESULT OF THE REDUCTION IN THE RATE OF WAGE AND NET PROFITS
4 TAX, THE AMOUNT PAID TO THE CITY FROM THE FUND FOR TAX
5 REDUCTIONS. THE CITY SHALL, EACH YEAR, TRANSFER TO SUCH
6 SCHOOL DISTRICT AN AMOUNT EQUAL TO THE COST OF ANY REDUCTION
7 IN THE RATE OF UNEARNED INCOME TAX CAUSED BY THE RATE; AND
8 SUCH TRANSFER SHALL NOT BE SUBJECT TO THE PROVISIONS OF
9 SECTION 696(H).
10 (2) THE TAX RATE REDUCTIONS IMPLEMENTED BY A CITY OF THE
11 FIRST CLASS PURSUANT TO THIS PARAGRAPH SHALL BE IN ADDITION
12 TO THE FOLLOWING SCHEDULE OF PERCENTAGES OF WAGE AND NET
13 PROFITS TAX RATE REDUCTIONS ALREADY SCHEDULED TO OCCUR:
14 (I) IN 2005, 2.0728% FOR RESIDENTS AND 0.8402% FOR
15 NONRESIDENTS.
16 (II) IN 2006, 0.8581% FOR RESIDENTS AND 0.8473% FOR
17 NONRESIDENTS.
18 (III) IN 2007, 0.8656% FOR RESIDENTS AND 0.8545% FOR
19 NONRESIDENTS.
20 (IV) IN 2008, 0.8731% FOR RESIDENTS AND 0.8619% FOR
21 NONRESIDENTS.
22 (C) EXCEPTIONS.--THE WAGE AND NET PROFITS TAX RATES CAN ONLY
23 BE RAISED ABOVE THE RATES SPECIFIED IN SUBSECTION (B)(2) BY SUCH
24 AMOUNT THAT IS NECESSARY TO RESPOND TO ANY OF THE FOLLOWING:
25 (1) A FISCAL THREAT OR CONDITION, AS CERTIFIED BY THE
26 CITY'S DIRECTOR OF FINANCE AND APPROVED BY THE PENNSYLVANIA
27 INTERGOVERNMENTAL COOPERATION AUTHORITY, THAT OCCURS TO THE
28 CITY AS SET FORTH IN SECTION 614-A(F) OR AN EQUIVALENT FISCAL
29 THREAT THAT AFFECTS THE CITIZENS OF THE CITY. IT SHALL BE THE
30 RESPONSIBILITY OF THE CITY'S DIRECTOR OF FINANCE WITH THE
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1 APPROVAL OF THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
2 AUTHORITY TO INSURE THAT THE ADDITIONAL TAX REVENUE RAISED IS
3 EQUAL TO THE AMOUNT EXPENDED TO RESPOND TO THE FISCAL THREAT
4 OR CONDITION. IF THE AMOUNT OF REVENUE RAISED THROUGH RATE
5 ADJUSTMENT EXCEEDS THE AMOUNT NECESSARY TO RESPOND, OVER THE
6 COURSE OF THE CITY'S APPROVED FINANCIAL PLAN, TO THE FISCAL
7 THREAT, ALL OF THE EXCESS AMOUNT SHALL BE USED FOR WAGE TAX
8 AND NET PROFITS TAX REDUCTION IN THE IMMEDIATELY SUCCEEDING
9 APPROVED FINANCIAL PLAN, BUT ONLY IF THE RATE REDUCTION
10 (EXPRESSED AS THE DIFFERENCE BETWEEN THE TWO RATES) WOULD
11 EXCEED .0002.
12 (2) A DECREASE OF MORE THAN 2% IN THE AMOUNT OF TOTAL
13 TAX COLLECTIONS PLUS ANY FUNDS PROVIDED UNDER THIS ARTICLE
14 FROM THE PRECEDING YEAR'S COLLECTIONS. SUCH A DETERMINATION
15 OF A DECREASE MUST BE ATTESTED TO BY THE CITY'S DIRECTOR OF
16 FINANCE AND AGREED TO BY THE PENNSYLVANIA INTERGOVERNMENTAL
17 COOPERATION AUTHORITY.
18 (3) A DECLARATION BY THE PENNSYLVANIA INTERGOVERNMENTAL
19 COOPERATION AUTHORITY THAT THE CITY'S FIVE-YEAR PLAN IS
20 DISAPPROVED PURSUANT TO SECTION 209 OF THE ACT OF JUNE 5,
21 1991 (P.L.9, NO.6), KNOWN AS THE PENNSYLVANIA
22 INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
23 FIRST CLASS.
24 (4) FEDERAL OR STATE LAW IMPOSES A NEW UNFUNDED MANDATE
25 ON THE CITY THAT COSTS THE CITY MORE THAN 1.5% OF THE CITY'S
26 TOTAL GENERAL FUND EXPENDITURES IN ANY FISCAL YEAR.
27 (5) THE COST TO THE CITY OF AN EXISTING MANDATE IMPOSED
28 BY FEDERAL OR STATE LAW INCREASES BY MORE THAN 1.5% OF THE
29 CITY'S TOTAL GENERAL FUND EXPENDITURES IN ANY FISCAL YEAR AND
30 FUNDS TO PAY FOR THE INCREASE ARE NOT APPROPRIATED TO THE
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1 CITY BY THE FEDERAL OR STATE GOVERNMENT.
2 (6) EXISTING FEDERAL OR STATE FUNDING IS DECREASED BY
3 1.5% OF THE CITY'S TOTAL GENERAL FUND EXPENDITURES IN ANY
4 FISCAL YEAR.
5 (D) EXCESS FUNDS.--IF IN ANY FISCAL YEAR THE SUMS RECEIVED
6 BY A CITY OF THE FIRST CLASS FROM THE FUND ARE IN EXCESS OF THE
7 VALUE OF THE TAX RATE REDUCTIONS ACTUALLY MADE BY THE CITY
8 PURSUANT TO SUBSECTION (A), THE CITY SHALL, WITHIN 60 DAYS
9 FOLLOWING THE CERTIFICATION BY THE DIRECTOR OF FINANCE, IN
10 CONSULTATION WITH THE SECRETARY OF THE BUDGET AND WITH THE
11 APPROVAL OF THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
12 AUTHORITY OF THE AMOUNT OF THE EXCESS, DO ANY OF THE FOLLOWING:
13 (1) REPAY TO THE FUND THE EXCESS SUMS; OR
14 (2) FURTHER REDUCE WAGE AND NET PROFITS TAX RATES AND
15 UNEARNED INCOME TAX RATES, IF REQUIRED, IN THE FISCAL YEAR
16 NEXT FOLLOWING THE DETERMINATION OF THE EXCESS, BY AN AMOUNT
17 THAT WILL RESULT IN TOTAL TAX RATE REDUCTIONS REQUIRED FOR
18 THE AMOUNT RECEIVED FROM THE FUND. TO THE EXTENT THE RATE
19 REDUCTION PROVIDED FOR IN PARAGRAPH (2), EXPRESSED AS THE
20 DIFFERENCE BETWEEN THE TWO RATES, WOULD NOT EXCEED .0002,
21 THIS SUBSECTION SHALL NOT APPLY.
22 (E) INSUFFICIENT FUNDS.--IF IN ANY FISCAL YEAR THE DIRECTOR
23 OF FINANCE CERTIFIES, IN CONSULTATION WITH THE SECRETARY OF THE
24 BUDGET AND WITH THE APPROVAL OF THE PENNSYLVANIA
25 INTERGOVERNMENTAL COOPERATION AUTHORITY, THAT THE AMOUNT OF SUMS
26 RECEIVED BY THE CITY FROM THE FUND ARE LESS THAN THE VALUE OF
27 THE TAX RATE REDUCTIONS ACTUALLY MADE BY THE CITY PURSUANT TO
28 SUBSECTION (A), THE CITY MAY, IN THE FISCAL YEAR NEXT FOLLOWING
29 THE DETERMINATION OF THE AMOUNT, INCREASE THE CITY'S WAGE AND
30 NET PROFITS TAX RATE ABOVE THE RATES SPECIFIED IN SUBSECTION
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1 (B)(2) BY AN AMOUNT THAT WILL RESULT IN AN OVERALL TAX RATE
2 REDUCTION EQUAL TO THAT REQUIRED FOR THE AMOUNT RECEIVED BY THE
3 CITY FROM THE FUND. TO THE EXTENT THE RATE INCREASE PROVIDED FOR
4 IN THIS SUBSECTION, EXPRESSED AS THE DIFFERENCE BETWEEN THE TWO
5 RATES, WOULD NOT EXCEED .0002, THIS SUBSECTION SHALL NOT APPLY.
6 SECTION 4. SECTION 1714-B(G) OF THE ACT, ADDED MAY 10, 2000
7 (P.L.44, NO.16), IS AMENDED TO READ:
8 SECTION 1714-B. MANDATE WAIVER PROGRAM.--* * *
9 (G) THE FOLLOWING PROVISIONS OF THIS ACT SHALL NOT BE
10 SUBJECT TO WAIVER PURSUANT TO THIS SECTION: SECTIONS 108, 110,
11 111, 321, 322, 323, 324, 325, 326, 327, 431, 436, 437, 440.1,
12 443, 510, 513, 518, 527, 701.1, 708, 736, 737, 738, 739, 740,
13 741, 752, 753, 755, 771, 776, 777, 808, 809, 810, 1303(A), 1310,
14 1317, 1317.1, 1317.2, 1318, 1327, 1327.1, 1330, 1332, 1361,
15 1366, 1501, 1502, 1513, 1517, 1518, 1521, 1523, 1546 AND 1547;
16 PROVISIONS PROHIBITING DISCRIMINATION; ARTICLES VI, VI-A, VI-B,
17 VI-C, XI, XI-A, XII, XIII-A, XIV AND XVII-A AND THIS ARTICLE.
18 * * *
19 SECTION 5. SECTION 614-A(F)(6) AND (8) OF THE ACT SHALL
20 APPLY TO SCHOOL DISTRICTS IN WHICH A REFERENDUM QUESTION UNDER
21 53 PA.C.S. § 8703 IS APPROVED AND IMPLEMENTED.
22 SECTION 6. NO SCHOOL DISTRICT WHICH HAS NOT ALREADY MADE AN
23 ELECTION TO ADOPT THE PROVISIONS OF 53 PA.C.S. CH. 87 MAY MAKE
24 AN ELECTION TO DO SO AFTER THE EFFECTIVE DATE OF THIS SECTION.
25 SECTION 7. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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