HOUSE AMENDED PRIOR PRINTER'S NOS. 143, 708, 784, PRINTER'S NO. 1401 809, 1048
No. 157 Session of 2005
INTRODUCED BY ARMSTRONG, VANCE, GORDNER, THOMPSON, PILEGGI, EARLL, COSTA, KASUNIC, ORIE, LOGAN, ROBBINS, WONDERLING, BOSCOLA, M. WHITE, WAUGH, WENGER, FUMO, PIPPY AND D. WHITE, FEBRUARY 2, 2005
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, DECEMBER 5, 2005
AN ACT 1 Amending the act of December 31, 1965 (P.L.1257, No.511), <-- 2 entitled "An act empowering cities of the second class, 3 cities of the second class A, cities of the third class, 4 boroughs, towns, townships of the first class, townships of 5 the second class, school districts of the second class, 6 school districts of the third class and school districts of 7 the fourth class including independent school districts, to 8 levy, assess, collect or to provide for the levying, 9 assessment and collection of certain taxes subject to maximum 10 limitations for general revenue purposes; authorizing the 11 establishment of bureaus and the appointment and compensation 12 of officers, agencies and employes to assess and collect such 13 taxes; providing for joint collection of certain taxes, 14 prescribing certain definitions and other provisions for 15 taxes levied and assessed upon earned income, providing for 16 annual audits and for collection of delinquent taxes, and 17 permitting and requiring penalties to be imposed and 18 enforced, including penalties for disclosure of confidential 19 information, providing an appeal from the ordinance or 20 resolution levying such taxes to the court of quarter 21 sessions and to the Supreme Court and Superior Court," 22 further providing for delegation of taxing powers and <-- 23 restrictions thereon; and making editorial changes. THE <-- 24 DELEGATION OF TAXING POWERS AND RESTRICTIONS THEREON; 25 REPEALING PROVISIONS RELATING TO CONTINUATION OF OCCUPATIONAL 26 PRIVILEGE TAXES; AND MAKING EDITORIAL CHANGES. 27 AMENDING THE ACT OF DECEMBER 31, 1965 (P.L.1257, NO.511), <-- 28 ENTITLED "AN ACT EMPOWERING CITIES OF THE SECOND CLASS, 29 CITIES OF THE SECOND CLASS A, CITIES OF THE THIRD CLASS,
1 BOROUGHS, TOWNS, TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF 2 THE SECOND CLASS, SCHOOL DISTRICTS OF THE SECOND CLASS, 3 SCHOOL DISTRICTS OF THE THIRD CLASS AND SCHOOL DISTRICTS OF 4 THE FOURTH CLASS INCLUDING INDEPENDENT SCHOOL DISTRICTS, TO 5 LEVY, ASSESS, COLLECT OR TO PROVIDE FOR THE LEVYING, 6 ASSESSMENT AND COLLECTION OF CERTAIN TAXES SUBJECT TO MAXIMUM 7 LIMITATIONS FOR GENERAL REVENUE PURPOSES; AUTHORIZING THE 8 ESTABLISHMENT OF BUREAUS AND THE APPOINTMENT AND COMPENSATION 9 OF OFFICERS, AGENCIES AND EMPLOYES TO ASSESS AND COLLECT SUCH 10 TAXES; PROVIDING FOR JOINT COLLECTION OF CERTAIN TAXES, 11 PRESCRIBING CERTAIN DEFINITIONS AND OTHER PROVISIONS FOR 12 TAXES LEVIED AND ASSESSED UPON EARNED INCOME, PROVIDING FOR 13 ANNUAL AUDITS AND FOR COLLECTION OF DELINQUENT TAXES, AND 14 PERMITTING AND REQUIRING PENALTIES TO BE IMPOSED AND 15 ENFORCED, INCLUDING PENALTIES FOR DISCLOSURE OF CONFIDENTIAL 16 INFORMATION, PROVIDING AN APPEAL FROM THE ORDINANCE OR 17 RESOLUTION LEVYING SUCH TAXES TO THE COURT OF QUARTER 18 SESSIONS AND TO THE SUPREME COURT AND SUPERIOR COURT," 19 FURTHER PROVIDING FOR DELEGATION OF TAXING POWERS AND 20 RESTRICTIONS THEREON; PROVIDING FOR LOCAL SERVICES TAXES; 21 REPEALING PROVISIONS RELATING TO EMERGENCY AND MUNICIPAL 22 SERVICES TAXES AND TO CONTINUATION OF OCCUPATIONAL PRIVILEGE 23 TAXES; AND MAKING EDITORIAL CHANGES. 24 The General Assembly of the Commonwealth of Pennsylvania 25 hereby enacts as follows: 26 Section 1. Section 2 of the act of December 31, 1965 <-- 27 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended 28 December 1, 2004 (P.L.1729, No.222), is amended to read: 29 Section 2. Delegation of Taxing Powers and Restrictions 30 Thereon.--The duly constituted authorities of the following 31 political subdivisions, cities of the second class, cities of 32 the second class A, cities of the third class, boroughs, towns, 33 townships of the first class, townships of the second class, 34 school districts of the second class, school districts of the 35 third class, and school districts of the fourth class, in all 36 cases including independent school districts, may, in their 37 discretion, by ordinance or resolution, for general revenue 38 purposes, levy, assess and collect or provide for the levying, 39 assessment and collection of such taxes as they shall determine 40 on persons, transactions, occupations, privileges, subjects and 41 personal property within the limits of such political 20050S0157B1401 - 2 -
1 subdivisions, and upon the transfer of real property, or of any 2 interest in real property, situate within the political 3 subdivision levying and assessing the tax, regardless of where 4 the instruments making the transfers are made, executed or 5 delivered or where the actual settlements on such transfer take 6 place. The taxing authority may provide that the transferee 7 shall remain liable for any unpaid realty transfer taxes imposed 8 by virtue of this act. Each local taxing authority may, by 9 ordinance or resolution, exempt any person whose total income 10 from all sources is less than twelve thousand dollars ($12,000) 11 per annum from the per capita or similar head tax, occupation 12 tax [and emergency and municipal services tax,] or earned income 13 tax, or any portion thereof, and may adopt regulations for the 14 processing of claims for exemptions. Each local taxing authority 15 shall by ordinance or resolution exempt any person whose total 16 income from all sources is less than twelve thousand dollars 17 ($12,000) per annum from the emergency and municipal services 18 tax. Such local authorities shall not have authority by virtue 19 of this act: 20 (1) To levy, assess and collect or provide for the levying, 21 assessment and collection of any tax on the transfer of real 22 property when the transfer is by will or mortgage or the 23 intestate laws of this Commonwealth or on a transfer by the 24 owner of previously occupied residential premises to a builder 25 of new residential premises when such previously occupied 26 residential premises is taken in trade by such builder as part 27 of the consideration from the purchaser of a new previously 28 unoccupied single family residential premises or on a transfer 29 between corporations operating housing projects pursuant to the 30 housing and redevelopment assistance law and the shareholders 20050S0157B1401 - 3 -
1 thereof, or on a transfer between nonprofit industrial 2 development agencies and industrial corporations purchasing from 3 them, or on transfer to or from nonprofit industrial development 4 agencies, or on a transfer between husband and wife, or on a 5 transfer between persons who were previously husband and wife 6 but who have since been divorced; provided such transfer is made 7 within three months of the date of the granting of the final 8 decree in divorce, or the decree of equitable distribution of 9 marital property, whichever is later, and the property or 10 interest therein, subject to such transfer, was acquired by the 11 husband and wife, or husband or wife, prior to the granting of 12 the final decree in divorce, or on a transfer between parent and 13 child or the spouse of such a child, or between parent and 14 trustee for the benefit of a child or the spouse of such child, 15 or on a transfer between a grandparent and grandchild or the 16 spouse of such grandchild, or on a transfer between brother and 17 sister or brother and brother or sister and sister or the spouse 18 of such brother or sister, or on a transfer to a conservancy 19 which possesses a tax-exempt status pursuant to section 20 501(c)(3) of the Internal Revenue Code, and which has as its 21 primary purpose the preservation of land for historic, 22 recreational, scenic, agricultural or open space opportunities, 23 by and between a principal and straw party for the purpose of 24 placing a mortgage or ground rent upon the premises, or on a 25 correctional deed without consideration, or on a transfer to the 26 United States, the Commonwealth of Pennsylvania, or to any of 27 their instrumentalities, agencies or political subdivisions, by 28 gift, dedication or deed in lieu of condemnation, or deed of 29 confirmation in connection with condemnation proceedings, or 30 reconveyance by the condemning body of the property condemned to 20050S0157B1401 - 4 -
1 the owner of record at the time of condemnation which 2 reconveyance may include property line adjustments provided said 3 reconveyance is made within one year from the date of 4 condemnation, leases, or on a conveyance to a trustee under a 5 recorded trust agreement for the express purpose of holding 6 title in trust as security for a debt contracted at the time of 7 the conveyance under which the trustee is not the lender and 8 requiring the trustee to make reconveyance to the grantor- 9 borrower upon the repayment of the debt, or a transfer within a 10 family from a sole proprietor family member to a family farm 11 corporation, or in any sheriff sale instituted by a mortgagee in 12 which the purchaser of said sheriff sale is the mortgagee who 13 instituted said sale, or on a privilege, transaction, subject, 14 occupation or personal property which is now or does hereafter 15 become subject to a State tax or license fee; 16 (2) To levy, assess or collect a tax on the gross receipts 17 from utility service of any person or company whose rates and 18 services are fixed and regulated by the Pennsylvania Public 19 Utility Commission or on any public utility services rendered by 20 any such person or company or on any privilege or transaction 21 involving the rendering of any such public utility service; 22 (3) Except on sales of admission to places of amusement or 23 on sales or other transfers of title or possession of property, 24 to levy, assess or collect a tax on the privilege of employing 25 such tangible property as is now or does hereafter become 26 subject to a State tax; and for the purposes of this clause, 27 real property rented for camping purposes shall not be 28 considered a place of amusement. 29 (4) To levy, assess and collect a tax on goods and articles 30 manufactured in such political subdivision or on the by-products 20050S0157B1401 - 5 -
1 of manufacture, or on minerals, timber, natural resources and 2 farm products produced in such political subdivision or on the 3 preparation or processing thereof for use or market, or on any 4 privilege, act or transaction related to the business of 5 manufacturing, the production, preparation or processing of 6 minerals, timber and natural resources, or farm products, by 7 manufacturers, by producers and by farmers with respect to the 8 goods, articles and products of their own manufacture, 9 production or growth, or on any privilege, act or transaction 10 relating to the business of processing by-products of 11 manufacture, or on the transportation, loading, unloading or 12 dumping or storage of such goods, articles, products or by- 13 products; except that local authorities may levy, assess and 14 collect an emergency and municipal services tax and taxes on the 15 occupation, per capita and earned income or net profits of 16 natural persons engaged in the above activities whether doing 17 business as individual proprietorship or as members of 18 partnerships or other associations; 19 (5) To levy, assess or collect a tax on salaries, wages, 20 commissions, compensation and earned income of nonresidents of 21 the political subdivisions: Provided, That this limitation (5) 22 shall apply only to school districts of the second, third and 23 fourth classes; 24 (6) To levy, assess or collect a tax on personal property 25 subject to taxation by counties or on personal property owned by 26 persons, associations and corporations specifically exempted by 27 law from taxation under the county personal property tax law: 28 Provided, That this limitation (6) shall not apply to cities of 29 the second class; 30 (7) To levy, assess or collect a tax on membership in or 20050S0157B1401 - 6 -
1 membership dues, fees or assessment of charitable, religious, 2 beneficial or nonprofit organizations including but not limited 3 to sportsmens, recreational, golf and tennis clubs, girl and boy 4 scout troops and councils; 5 (8) To levy, assess or collect any tax on a mobilehome or 6 house trailer subject to a real property tax unless the same tax 7 is levied, assessed and collected on other real property in the 8 political subdivision. 9 (9) To levy, assess or collect any tax on individuals for 10 the privilege of engaging in an occupation (emergency and 11 municipal services tax) except that such a tax may be levied, 12 assessed and collected only by the political subdivision of the 13 taxpayer's place of employment. 14 Payment of any emergency and municipal services tax to any 15 political subdivision by any person pursuant to an ordinance or 16 resolution passed or adopted under the authority of this act 17 shall be no [less than ten dollars ($10)] more than twenty-five 18 percent of the tax levied on each person for any quarter in a 19 calendar year nor more than fifty-two dollars ($52) on each 20 person for each calendar year[.], irrespective of the number of 21 political subdivisions within which such person may be employed. 22 Notwithstanding any other provision of law, a taxpayer shall not 23 be liable for an amount of tax in excess of the tax authorized 24 to be collected under this clause. If a municipality does not 25 levy the emergency and municipal services tax, the school 26 district which includes such municipality boundaries, in whole 27 or in part, may levy the emergency and municipal services tax 28 and collect no more than ten dollars ($10) on each person for 29 each calendar year. If a municipality levies the emergency and 30 municipal services tax and the school district levies such tax, 20050S0157B1401 - 7 -
1 the school district may only collect five dollars ($5) on each 2 person for each calendar year; and, subject to the quarterly 3 twenty-five percent limitation of this paragraph, this five 4 dollars ($5) per person shall be paid to the school district 5 from the funds levied and collected by the municipality. 6 The situs of such tax shall be the place of employment, but, 7 in the event a person is engaged in more than one occupation, or 8 an occupation which requires his working in more than one 9 political subdivision during the calendar year, the priority of 10 claim to collect such emergency and municipal services tax shall 11 be in the following order: first, the political subdivision in 12 which a person maintains his principal office or is principally 13 employed; second, the political subdivision in which the person 14 resides and works, if such a tax is levied by that political 15 subdivision; third, the political subdivision in which a person 16 is employed and which imposes the tax nearest in miles to the 17 person's home. The place of employment shall be determined as of 18 the day the taxpayer first becomes subject to the tax [during 19 the calendar year. 20 It is the intent of this provision that no person shall pay 21 more than fifty-two dollars ($52) in any calendar year as an 22 emergency and municipal services tax irrespective of the number 23 of political subdivisions within which such person may be 24 employed within any given calendar year.] within a political 25 subdivision. 26 In case of dispute, a tax receipt of the [taxing authority] 27 political subdivision for that calendar year declaring that the 28 taxpayer has made prior payment which constitutes prima facie 29 certification of payment to all other political subdivisions. 30 (10) To levy, assess or collect a tax on admissions to 20050S0157B1401 - 8 -
1 motion picture theatres: Provided, That this limitation (10) 2 shall not apply to cities of the second class. 3 (11) To levy, assess or collect a tax on the construction of 4 or improvement to residential dwellings or upon the application 5 for or issuance of permits for the construction of or 6 improvements to residential dwellings. 7 (12) To levy, assess and collect a mercantile or business 8 privilege tax on gross receipts or part thereof which are: (i) 9 discounts allowed to purchasers as cash discounts for prompt 10 payment of their bills; (ii) charges advanced by a seller for 11 freight, delivery or other transportation for the purchaser in 12 accordance with the terms of a contract of sale; (iii) received 13 upon the sale of an article of personal property which was 14 acquired by the seller as a trade-in to the extent that the 15 gross receipts in the sale of the article taken in trade does 16 not exceed the amount of trade-in allowance made in acquiring 17 such article; (iv) refunds, credits or allowances given to a 18 purchaser on account of defects in goods sold or merchandise 19 returned; (v) Pennsylvania sales tax; (vi) based on the value of 20 exchanges or transfers between one seller and another seller who 21 transfers property with the understanding that property of an 22 identical description will be returned at a subsequent date; 23 however, when sellers engaged in similar lines of business 24 exchange property and one of them makes payment to the other in 25 addition to the property exchanged, the additional payment 26 received may be included in the gross receipts of the seller 27 receiving such additional cash payments; (vii) of sellers from 28 sales to other sellers in the same line where the seller 29 transfers the title or possession at the same price for which 30 the seller acquired the merchandise; or (viii) transfers between 20050S0157B1401 - 9 -
1 one department, branch or division of a corporation or other 2 business entity of goods, wares and merchandise to another 3 department, branch or division of the same corporation or 4 business entity and which are recorded on the books to reflect 5 such interdepartmental transactions. 6 (13) To levy, assess or collect an amusement or admissions 7 tax on membership, membership dues, fees or assessments, 8 donations, contributions or monetary charges of any character 9 whatsoever paid by the general public, or a limited or selected 10 number thereof, for such persons to enter into any place, 11 indoors or outdoors, to engage in any activities, the 12 predominant purpose or nature of which is exercise, fitness, 13 health maintenance, improvement or rehabilitation, health or 14 nutrition education, or weight control. 15 (14) Except by cities of the second class, to levy, assess 16 or collect a tax on payroll amounts generated as a result of 17 business activity. 18 (15) Except by cities of the second class in which a sports 19 stadium or arena that has received public funds in connection 20 with its construction or maintenance is located, to levy, assess 21 and collect a publicly funded facility usage fee upon those 22 nonresident individuals who use such facility to engage in an 23 athletic event or otherwise render a performance for which they 24 receive remuneration. 25 (16) To levy, assess or collect an amusement or admissions 26 tax on the charge imposed upon a patron for the sale of 27 admission to or for the privilege of admission to a bowling 28 alley or bowling lane to engage in one or more games of bowling. 29 Section 2. Section 9 of the act, amended December 12, 1968 30 (P.L.1203, No.377), is amended to read: 20050S0157B1401 - 10 -
1 Section 9. Register for Earned Income and [Occupational 2 Privilege] Emergency and Municipal Services Taxes.--It shall be 3 the duty of the [Department of Community Affairs] Department of 4 Community and Economic Development to have available an official 5 continuing register supplemented annually of all earned income 6 and [occupational privilege] emergency and municipal services 7 taxes levied under authority of this act. The register and its 8 supplements, hereinafter referred to as the register, shall list 9 such jurisdictions levying earned income and/or [occupational 10 privilege] emergency and municipal services taxes, the rate of 11 the tax as stated in the tax levying ordinance or resolution, 12 and the effective rate on resident and nonresident taxpayers, if 13 different from the stated rate because of a coterminous levy, 14 the name and address of the officer responsible for 15 administering the collection of the tax and from whom 16 information, forms for reporting and copies of rules and 17 regulations are available. With each jurisdiction listed, all 18 jurisdictions making coterminous levies shall also be noted and 19 their tax rates shown. 20 Information for the register shall be furnished by the 21 secretary of each taxing body to the [Department of Community 22 Affairs] Department of Community and Economic Development in 23 such manner and on such forms as the [Department of Community 24 Affairs] Department of Community and Economic Development may 25 prescribe. The information must be received by the [Department 26 of Community Affairs] Department of Community and Economic 27 Development by certified mail not later than May 31 of each year 28 to show new tax enactments, repeals and changes. Failure to 29 comply with this date for filing may result in the omission of 30 the levy from the register for that year. Failure of the 20050S0157B1401 - 11 -
1 [Department of Community Affairs] Department of Community and 2 Economic Development to receive information of taxes continued 3 without change may be construed by the department to mean that 4 the information contained in the previous register remains in 5 force. 6 The [Department of Community Affairs] Department of Community 7 and Economic Development shall have the register with such 8 annual supplements as may be required by new tax enactments, 9 repeals or changes available upon request not later than July 1 10 of each year. The effective period for each register shall be 11 from July 1 of the year in which it is issued to June 30 of the 12 following year. 13 Employers shall not be required by any local ordinance to 14 withhold from the wages, salaries, commissions or other 15 compensation of their employes any tax imposed under the 16 provisions of this act, which is not listed in the register, or 17 make reports of wages, salaries, commissions or other 18 compensation in connection with taxes not so listed: Provided, 19 That if the register is not available by July 1, the register of 20 the previous year shall continue temporarily in effect for an 21 additional period not to exceed one year. The provisions of this 22 section shall not affect the liability of any taxpayer for taxes 23 lawfully imposed under this act. 24 Ordinances or resolutions imposing earned income or 25 [occupational privilege] emergency and municipal services taxes 26 under authority of this act may contain provisions requiring 27 employers doing business within the jurisdiction of the 28 political subdivision imposing the tax to withhold the tax from 29 the compensation of those of their employes who are subject to 30 the tax: Provided, That no employer shall be held liable for 20050S0157B1401 - 12 -
1 failure to withhold earned income taxes or for the payment of 2 such withheld tax money to a political subdivision other than 3 the political subdivision entitled to receive such money if such 4 failure to withhold or such incorrect transmittal of withheld 5 taxes arises from incorrect information as to the employe's 6 place of residence submitted by the employe: And provided 7 further, That employers shall not be required by any local 8 ordinance to withhold from compensation for any one of their 9 employes for the [occupational privilege] emergency and 10 municipal services tax more than one time in any [fiscal period] 11 quarter of the calendar year, and shall not be required to remit 12 such tax until thirty (30) days after the end of such quarter of 13 a calendar year: And provided further, That the [occupational 14 privilege] emergency and municipal services tax shall be 15 applicable to employment in the period beginning January 1, of 16 the current year and ending December 31 of the current year, 17 except that taxes imposed for the first time shall become 18 effective from the date specified in the ordinance or 19 resolution, and the tax shall continue in force on a calendar 20 year basis. 21 Section 3. Section 22.5 of the act, added December 1, 2004 22 (P.L.1729, No.222), is amended to read: 23 Section 22.5. Restricted Use.--(a) Any municipality 24 deriving funds from the emergency and municipal services tax may 25 only use the funds for: 26 (1) police, fire and/or emergency services; 27 (2) road construction and/or maintenance; [or] 28 (3) reduction of property taxes[.]; or 29 (4) property tax relief through implementation of a 30 homestead and farmstead exclusion in accordance with 53 Pa.C.S. 20050S0157B1401 - 13 -
1 Ch. 85 Subch. F (relating to homestead property exclusion). 2 (a.1) In the event that a municipality determines to 3 implement a homestead and farmstead exclusion for purposes of 4 providing property tax relief in accordance with subsection 5 (a)(4), the following shall apply: 6 (1) The decision to provide a homestead and farmstead 7 exclusion shall be made, by ordinance, prior to December 1, with 8 the homestead and farmstead exclusion to take effect for the 9 fiscal year beginning the first day of January following 10 adoption of the ordinance. Upon adopting an ordinance in 11 accordance with this paragraph, a municipality shall, by first 12 class mail, notify the assessor, as defined in 53 Pa.C.S. § 8582 13 (relating to definitions), of its decision to provide a 14 homestead and farmstead exclusion. 15 (2) The assessor shall provide a municipality that will be 16 imposing a homestead and farmstead exclusion in accordance with 17 subsection (a)(4) with a certified report, as provided in 53 18 Pa.C.S. § 8584(i) (relating to administration and procedure), 19 listing information regarding homestead and farmstead properties 20 in the municipality as determined pursuant to applications filed 21 with the assessor in connection with this or any other law under 22 which a homestead or farmstead exclusion has been adopted. In 23 the year in which an ordinance is adopted in accordance with 24 paragraph (1), the assessor shall provide the certified report 25 after being notified by the municipality of its decision to 26 provide a homestead and farmstead exclusion. In each succeeding 27 year, the assessor shall provide the certified report by 28 December 1 or at the same time the tax duplicate is certified to 29 the municipality, whichever occurs first. Any duty placed on an 30 assessor in accordance with this paragraph shall be in addition 20050S0157B1401 - 14 -
1 to those established in 53 Pa.C.S. Ch. 85 Subch. F and the act 2 of July 5, 2004 (P.L.654, No.72), known as the "Homeowner Tax 3 Relief Act." 4 (3) Only homestead or farmstead properties identified in the 5 certified report of the assessor obtained in any year shall be 6 eligible to receive the exclusion for the next fiscal year. 7 (4) In the year in which a municipality adopts the ordinance 8 evidencing its decision to implement a homestead and farmstead 9 exclusion, the municipality shall notify by first class mail the 10 owner of each parcel of residential property within the 11 municipality of each of the following: 12 (i) That the homestead and farmstead exclusion program is to 13 be implemented to provide property tax relief as authorized by 14 subsection (a)(4), beginning in the next fiscal year. 15 (ii) That only properties currently identified in the 16 certified report of the assessor as having been approved in 17 whole or in part, as homestead or farmstead properties, shall be 18 entitled to an exclusion in the next fiscal year. 19 (iii) That owners of properties that have not been approved 20 by the assessor as homestead or farmstead properties may file an 21 application in accordance with 53 Pa.C.S. § 8584(a), by the 22 annual application deadline of March 1, in order to qualify for 23 the program in the year following the next fiscal year. 24 The one-time notice required by this paragraph may be combined 25 and made together with the annual notice required by paragraph 26 (6). 27 (5) Both in the year in which the initial decision to 28 provide a homestead and farmstead exclusion is to be made and in 29 each succeeding year, a municipality shall, by resolution, fix 30 the dollar amount that is to be excluded from the assessed value 20050S0157B1401 - 15 -
1 of each homestead and farmstead property for the next fiscal 2 year, consistent with 53 Pa.C.S. §§ 8583 (relating to exclusion 3 of homestead property) and 8586 (relating to limitations). This 4 determination of the amount of the homestead and farmstead 5 exclusion shall be made, after receipt of the tax duplicate and 6 the certified report from the assessor, at the time the 7 governing body of a municipality determines the municipal budget 8 and estimates its emergency and municipal services tax revenues 9 for the next fiscal year. 10 (6) Each year after the year in which the municipality 11 implements a homestead and farmstead exclusion and no later than 12 sixty days prior to the application deadline, the municipality 13 shall give notice of the existence of the municipality's 14 homestead and farmstead exclusion program, the need to file an 15 application in accordance with 53 Pa.C.S. § 8584(a) in order to 16 qualify for the program, and the application deadline, which, in 17 accordance with 53 Pa.C.S. § 8584(b), shall be March 1. This 18 annual notice, which shall be given by first class mail, need 19 only be sent to the owner of each parcel of residential property 20 in the municipality which is not approved as homestead or 21 farmstead property or for which the approval is due to expire. 22 (b) For the purpose of the emergency and municipal services 23 tax, the term municipality does not include a school district. 24 Section 4. This act shall apply to taxes levied for tax 25 years commencing on or after January 1, 2006. 26 Section 5. This act shall take effect January 1, 2006. 27 SECTION 1. SECTION 2 OF THE ACT OF DECEMBER 31, 1965 <-- 28 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AMENDED 29 DECEMBER 1, 2004 (P.L.1729, NO.222), IS AMENDED TO READ: 30 SECTION 2. DELEGATION OF TAXING POWERS AND RESTRICTIONS 20050S0157B1401 - 16 -
1 THEREON.--THE DULY CONSTITUTED AUTHORITIES OF THE FOLLOWING 2 POLITICAL SUBDIVISIONS, CITIES OF THE SECOND CLASS, CITIES OF 3 THE SECOND CLASS A, CITIES OF THE THIRD CLASS, BOROUGHS, TOWNS, 4 TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS, 5 SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE 6 THIRD CLASS, AND SCHOOL DISTRICTS OF THE FOURTH CLASS, IN ALL 7 CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS, MAY, IN THEIR 8 DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL REVENUE 9 PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING, 10 ASSESSMENT AND COLLECTION OF SUCH TAXES AS THEY SHALL DETERMINE 11 ON PERSONS, TRANSACTIONS, OCCUPATIONS, PRIVILEGES, SUBJECTS AND 12 PERSONAL PROPERTY WITHIN THE LIMITS OF SUCH POLITICAL 13 SUBDIVISIONS, AND UPON THE TRANSFER OF REAL PROPERTY, OR OF ANY 14 INTEREST IN REAL PROPERTY, SITUATE WITHIN THE POLITICAL 15 SUBDIVISION LEVYING AND ASSESSING THE TAX, REGARDLESS OF WHERE 16 THE INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR 17 DELIVERED OR WHERE THE ACTUAL SETTLEMENTS ON SUCH TRANSFER TAKE 18 PLACE. THE TAXING AUTHORITY MAY PROVIDE THAT THE TRANSFEREE 19 SHALL REMAIN LIABLE FOR ANY UNPAID REALTY TRANSFER TAXES IMPOSED 20 BY VIRTUE OF THIS ACT. EACH LOCAL TAXING AUTHORITY MAY, BY 21 ORDINANCE OR RESOLUTION, EXEMPT ANY PERSON WHOSE TOTAL INCOME 22 FROM ALL SOURCES IS LESS THAN TWELVE THOUSAND DOLLARS ($12,000) 23 PER ANNUM FROM THE PER CAPITA OR SIMILAR HEAD TAX, OCCUPATION 24 TAX AND [EMERGENCY AND MUNICIPAL SERVICES TAX] OCCUPATIONAL 25 PRIVILEGE TAX, OR EARNED INCOME TAX, OR ANY PORTION THEREOF, AND 26 MAY ADOPT REGULATIONS FOR THE PROCESSING OF CLAIMS FOR 27 EXEMPTIONS. EACH MUNICIPALITY SHALL BY ORDINANCE OR RESOLUTION 28 EXEMPT ANY PERSON WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS 29 THAN TWELVE THOUSAND DOLLARS ($12,000) FOR THE IMMEDIATELY PRIOR 30 CALENDAR YEAR FROM THE MUNICIPAL SERVICES TAX. SUCH LOCAL 20050S0157B1401 - 17 -
1 AUTHORITIES SHALL NOT HAVE AUTHORITY BY VIRTUE OF THIS ACT: 2 (1) TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING, 3 ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF REAL 4 PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE 5 INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE 6 OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER 7 OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED 8 RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART 9 OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY 10 UNOCCUPIED SINGLE FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER 11 BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE 12 HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS 13 THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL 14 DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM 15 THEM, OR ON TRANSFER TO OR FROM NONPROFIT INDUSTRIAL DEVELOPMENT 16 AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A 17 TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE 18 BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE 19 WITHIN THREE MONTHS OF THE DATE OF THE GRANTING OF THE FINAL 20 DECREE IN DIVORCE, OR THE DECREE OF EQUITABLE DISTRIBUTION OF 21 MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR 22 INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE 23 HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF 24 THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND 25 CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND 26 TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD, 27 OR ON A TRANSFER BETWEEN A GRANDPARENT AND GRANDCHILD OR THE 28 SPOUSE OF SUCH GRANDCHILD, OR ON A TRANSFER BETWEEN BROTHER AND 29 SISTER OR BROTHER AND BROTHER OR SISTER AND SISTER OR THE SPOUSE 30 OF SUCH BROTHER OR SISTER, OR ON A TRANSFER TO A CONSERVANCY 20050S0157B1401 - 18 -
1 WHICH POSSESSES A TAX-EXEMPT STATUS PURSUANT TO SECTION 2 501(C)(3) OF THE INTERNAL REVENUE CODE, AND WHICH HAS AS ITS 3 PRIMARY PURPOSE THE PRESERVATION OF LAND FOR HISTORIC, 4 RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN SPACE OPPORTUNITIES, 5 BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF 6 PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A 7 CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE 8 UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF 9 THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY 10 GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION, OR DEED OF 11 CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS, OR 12 RECONVEYANCE BY THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO 13 THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH 14 RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID 15 RECONVEYANCE IS MADE WITHIN ONE YEAR FROM THE DATE OF 16 CONDEMNATION, LEASES, OR ON A CONVEYANCE TO A TRUSTEE UNDER A 17 RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING 18 TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF 19 THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND 20 REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR- 21 BORROWER UPON THE REPAYMENT OF THE DEBT, OR A TRANSFER WITHIN A 22 FAMILY FROM A SOLE PROPRIETOR FAMILY MEMBER TO A FAMILY FARM 23 CORPORATION, OR IN ANY SHERIFF SALE INSTITUTED BY A MORTGAGEE IN 24 WHICH THE PURCHASER OF SAID SHERIFF SALE IS THE MORTGAGEE WHO 25 INSTITUTED SAID SALE, OR ON A PRIVILEGE, TRANSACTION, SUBJECT, 26 OCCUPATION OR PERSONAL PROPERTY WHICH IS NOW OR DOES HEREAFTER 27 BECOME SUBJECT TO A STATE TAX OR LICENSE FEE; 28 (2) TO LEVY, ASSESS OR COLLECT A TAX ON THE GROSS RECEIPTS 29 FROM UTILITY SERVICE OF ANY PERSON OR COMPANY WHOSE RATES AND 30 SERVICES ARE FIXED AND REGULATED BY THE PENNSYLVANIA PUBLIC 20050S0157B1401 - 19 -
1 UTILITY COMMISSION OR ON ANY PUBLIC UTILITY SERVICES RENDERED BY 2 ANY SUCH PERSON OR COMPANY OR ON ANY PRIVILEGE OR TRANSACTION 3 INVOLVING THE RENDERING OF ANY SUCH PUBLIC UTILITY SERVICE; 4 (3) EXCEPT ON SALES OF ADMISSION TO PLACES OF AMUSEMENT OR 5 ON SALES OR OTHER TRANSFERS OF TITLE OR POSSESSION OF PROPERTY, 6 TO LEVY, ASSESS OR COLLECT A TAX ON THE PRIVILEGE OF EMPLOYING 7 SUCH TANGIBLE PROPERTY AS IS NOW OR DOES HEREAFTER BECOME 8 SUBJECT TO A STATE TAX; AND FOR THE PURPOSES OF THIS CLAUSE, 9 REAL PROPERTY RENTED FOR CAMPING PURPOSES SHALL NOT BE 10 CONSIDERED A PLACE OF AMUSEMENT. 11 (4) TO LEVY, ASSESS AND COLLECT A TAX ON GOODS AND ARTICLES 12 MANUFACTURED IN SUCH POLITICAL SUBDIVISION OR ON THE BY-PRODUCTS 13 OF MANUFACTURE, OR ON MINERALS, TIMBER, NATURAL RESOURCES AND 14 FARM PRODUCTS PRODUCED IN SUCH POLITICAL SUBDIVISION OR ON THE 15 PREPARATION OR PROCESSING THEREOF FOR USE OR MARKET, OR ON ANY 16 PRIVILEGE, ACT OR TRANSACTION RELATED TO THE BUSINESS OF 17 MANUFACTURING, THE PRODUCTION, PREPARATION OR PROCESSING OF 18 MINERALS, TIMBER AND NATURAL RESOURCES, OR FARM PRODUCTS, BY 19 MANUFACTURERS, BY PRODUCERS AND BY FARMERS WITH RESPECT TO THE 20 GOODS, ARTICLES AND PRODUCTS OF THEIR OWN MANUFACTURE, 21 PRODUCTION OR GROWTH, OR ON ANY PRIVILEGE, ACT OR TRANSACTION 22 RELATING TO THE BUSINESS OF PROCESSING BY-PRODUCTS OF 23 MANUFACTURE, OR ON THE TRANSPORTATION, LOADING, UNLOADING OR 24 DUMPING OR STORAGE OF SUCH GOODS, ARTICLES, PRODUCTS OR BY- 25 PRODUCTS; EXCEPT THAT LOCAL AUTHORITIES MAY LEVY, ASSESS AND 26 COLLECT [AN EMERGENCY AND] A MUNICIPAL SERVICES TAX AND TAXES ON 27 THE OCCUPATION, PER CAPITA AND EARNED INCOME OR NET PROFITS OF 28 NATURAL PERSONS ENGAGED IN THE ABOVE ACTIVITIES WHETHER DOING 29 BUSINESS AS INDIVIDUAL PROPRIETORSHIP OR AS MEMBERS OF 30 PARTNERSHIPS OR OTHER ASSOCIATIONS; 20050S0157B1401 - 20 -
1 (5) TO LEVY, ASSESS OR COLLECT A TAX ON SALARIES, WAGES, 2 COMMISSIONS, COMPENSATION AND EARNED INCOME OF NONRESIDENTS OF 3 THE POLITICAL SUBDIVISIONS: PROVIDED, THAT THIS LIMITATION (5) 4 SHALL APPLY ONLY TO SCHOOL DISTRICTS OF THE SECOND, THIRD AND 5 FOURTH CLASSES; 6 (6) TO LEVY, ASSESS OR COLLECT A TAX ON PERSONAL PROPERTY 7 SUBJECT TO TAXATION BY COUNTIES OR ON PERSONAL PROPERTY OWNED BY 8 PERSONS, ASSOCIATIONS AND CORPORATIONS SPECIFICALLY EXEMPTED BY 9 LAW FROM TAXATION UNDER THE COUNTY PERSONAL PROPERTY TAX LAW: 10 PROVIDED, THAT THIS LIMITATION (6) SHALL NOT APPLY TO CITIES OF 11 THE SECOND CLASS; 12 (7) TO LEVY, ASSESS OR COLLECT A TAX ON MEMBERSHIP IN OR 13 MEMBERSHIP DUES, FEES OR ASSESSMENT OF CHARITABLE, RELIGIOUS, 14 BENEFICIAL OR NONPROFIT ORGANIZATIONS INCLUDING BUT NOT LIMITED 15 TO SPORTSMENS, RECREATIONAL, GOLF AND TENNIS CLUBS, GIRL AND BOY 16 SCOUT TROOPS AND COUNCILS; 17 (8) TO LEVY, ASSESS OR COLLECT ANY TAX ON A MOBILEHOME OR 18 HOUSE TRAILER SUBJECT TO A REAL PROPERTY TAX UNLESS THE SAME TAX 19 IS LEVIED, ASSESSED AND COLLECTED ON OTHER REAL PROPERTY IN THE 20 POLITICAL SUBDIVISION. 21 (9) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR 22 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION ([EMERGENCY AND] 23 MUNICIPAL SERVICES TAX) EXCEPT THAT SUCH A TAX MAY BE LEVIED, 24 ASSESSED AND COLLECTED ONLY BY THE [POLITICAL SUBDIVISION] 25 MUNICIPALITY OF THE TAXPAYER'S PLACE OF PRIMARY EMPLOYMENT. 26 PAYMENT OF ANY [EMERGENCY AND] MUNICIPAL SERVICES TAX TO ANY 27 [POLITICAL SUBDIVISION] MUNICIPALITY BY ANY PERSON PURSUANT TO 28 AN ORDINANCE OR RESOLUTION PASSED OR ADOPTED UNDER THE AUTHORITY 29 OF THIS ACT SHALL BE NO [LESS THAN TEN DOLLARS ($10) NOR] MORE 30 THAN FIFTY-TWO DOLLARS ($52) ON EACH PERSON [FOR EACH] DURING A 20050S0157B1401 - 21 -
1 CALENDAR YEAR[.] WITHOUT REGARD TO THE NUMBER OF MUNICIPALITIES 2 WITHIN WHICH A PERSON MAY BE EMPLOYED DURING A CALENDAR YEAR. 3 NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A TAXPAYER SHALL NOT 4 BE LIABLE FOR AN AMOUNT OF TAX IN EXCESS OF THE TAX AUTHORIZED 5 TO BE COLLECTED UNDER THIS CLAUSE. 6 A SCHOOL DISTRICT MAY NOT LEVY A MUNICIPAL SERVICES TAX UNDER 7 THIS ACT. 8 IF A MUNICIPALITY LEVIES THE MUNICIPAL SERVICES TAX AT AN 9 AMOUNT GREATER THAN TEN DOLLARS ($10) PER ANNUM, IT SHALL 10 REQUIRE THE EMPLOYER TO WITHHOLD THE MUNICIPAL SERVICES TAX ON A 11 PRO RATA BASIS DETERMINED BY THE NUMBER OF PAYROLL PERIODS 12 ESTABLISHED BY THE EMPLOYER FOR A CALENDAR YEAR. NOTHING UNDER 13 THIS CLAUSE SHALL BE CONSTRUED TO PROHIBIT EMPLOYES FROM 14 ENTERING INTO AN AGREEMENT WITH THEIR EMPLOYER TO MAKE PAYMENT 15 OF THE MUNICIPAL SERVICES TAX IN FULL AT THE TIME OF THE FIRST 16 WITHHOLDING OF THE MUNICIPAL SERVICES TAX. 17 THE SITUS OF SUCH TAX SHALL BE THE PLACE OF PRIMARY 18 EMPLOYMENT, BUT, IN THE EVENT A PERSON IS ENGAGED IN MORE THAN 19 ONE OCCUPATION, [OR AN OCCUPATION WHICH REQUIRES HIS WORKING IN 20 MORE THAN ONE POLITICAL SUBDIVISION DURING THE CALENDAR YEAR,] 21 THE PRIORITY OF CLAIM TO COLLECT SUCH [EMERGENCY AND] MUNICIPAL 22 SERVICES TAX SHALL BE [IN THE FOLLOWING ORDER: FIRST,] THE 23 POLITICAL SUBDIVISION IN WHICH A PERSON MAINTAINS HIS PRINCIPAL 24 OFFICE OR IS PRINCIPALLY EMPLOYED.[; SECOND, THE POLITICAL 25 SUBDIVISION IN WHICH THE PERSON RESIDES AND WORKS, IF SUCH A TAX 26 IS LEVIED BY THAT POLITICAL SUBDIVISION; THIRD, THE POLITICAL 27 SUBDIVISION IN WHICH A PERSON IS EMPLOYED AND WHICH IMPOSES THE 28 TAX NEAREST IN MILES TO THE PERSON'S HOME. THE PLACE OF 29 EMPLOYMENT SHALL BE DETERMINED AS OF THE DAY THE TAXPAYER FIRST 30 BECOMES SUBJECT TO THE TAX DURING THE CALENDAR YEAR. 20050S0157B1401 - 22 -
1 IT IS THE INTENT OF THIS PROVISION THAT NO PERSON SHALL PAY 2 MORE THAN FIFTY-TWO DOLLARS ($52) IN ANY CALENDAR YEAR AS AN 3 EMERGENCY AND MUNICIPAL SERVICES TAX IRRESPECTIVE OF THE NUMBER 4 OF POLITICAL SUBDIVISIONS WITHIN WHICH SUCH PERSON MAY BE 5 EMPLOYED WITHIN ANY GIVEN CALENDAR YEAR.] NO TAXPAYER SHALL BE 6 SUBJECT TO THE COLLECTION OF THE MUNICIPAL SERVICES TAX BY MORE 7 THAN ONE MUNICIPALITY DURING A PAYROLL PERIOD AS ESTABLISHED BY 8 THE TAXPAYER'S PRIMARY EMPLOYER LOCATED IN THE MUNICIPALITY IN 9 WHICH THE TAXPAYER MAINTAINS THE TAXPAYER'S PRIMARY EMPLOYMENT. 10 IT IS THE INTENT OF THIS PROVISION THAT NO TAXPAYER BE SUBJECT 11 TO THE COLLECTION OF THE MUNICIPAL SERVICES TAX BY MORE THAN ONE 12 MUNICIPALITY DURING A PAYROLL PERIOD. 13 IN CASE OF DISPUTE, A TAX RECEIPT OF THE TAXING AUTHORITY 14 [FOR THAT CALENDAR YEAR] OR PROOF OF EMPLOYER WITHHOLDING FOR 15 THE PAYROLL PERIOD DECLARING THAT THE TAXPAYER HAS MADE PRIOR 16 PAYMENT WHICH CONSTITUTES PRIMA FACIE CERTIFICATION OF PAYMENT 17 TO ALL OTHER POLITICAL SUBDIVISIONS. 18 (9.1) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR 19 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION (OCCUPATION PRIVILEGE 20 TAX) EXCEPT THAT SUCH A TAX MAY ONLY BE LEVIED, ASSESSED OR 21 COLLECTED BY THE SCHOOL DISTRICT OF THE TAXPAYER'S PRINCIPAL 22 EMPLOYMENT. THE LEVYING OF THE OCCUPATION PRIVILEGE TAX SHALL 23 NOT EXCEED THE RATE OF MUNICIPAL SERVICES TAX LEVIED BY THE 24 SCHOOL DISTRICT IN CALENDAR YEAR 2005. ANY SCHOOL DISTRICT THAT 25 DID NOT SHARE IN LEVYING OF THE MUNICIPAL SERVICES TAX IN 26 CALENDAR YEAR 2005 SHALL BE PROHIBITED FROM LEVYING THE 27 OCCUPATION PRIVILEGE TAX. THE TAXPAYER SHALL RECEIVE A CREDIT 28 AGAINST THE MUNICIPAL SERVICES TAX LEVIED BY A MUNICIPALITY 29 EQUAL TO THE AMOUNT BY WHICH THE SUM OF THE MUNICIPAL SERVICE 30 TAX LEVIED BY THE MUNICIPALITY PLUS THE OCCUPATION PRIVILEGE TAX 20050S0157B1401 - 23 -
1 LEVIED BY A SCHOOL DISTRICT EXCEEDS FIFTY-TWO DOLLARS ($52). 2 (10) TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO 3 MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10) 4 SHALL NOT APPLY TO CITIES OF THE SECOND CLASS. 5 (11) TO LEVY, ASSESS OR COLLECT A TAX ON THE CONSTRUCTION OF 6 OR IMPROVEMENT TO RESIDENTIAL DWELLINGS OR UPON THE APPLICATION 7 FOR OR ISSUANCE OF PERMITS FOR THE CONSTRUCTION OF OR 8 IMPROVEMENTS TO RESIDENTIAL DWELLINGS. 9 (12) TO LEVY, ASSESS AND COLLECT A MERCANTILE OR BUSINESS 10 PRIVILEGE TAX ON GROSS RECEIPTS OR PART THEREOF WHICH ARE: (I) 11 DISCOUNTS ALLOWED TO PURCHASERS AS CASH DISCOUNTS FOR PROMPT 12 PAYMENT OF THEIR BILLS; (II) CHARGES ADVANCED BY A SELLER FOR 13 FREIGHT, DELIVERY OR OTHER TRANSPORTATION FOR THE PURCHASER IN 14 ACCORDANCE WITH THE TERMS OF A CONTRACT OF SALE; (III) RECEIVED 15 UPON THE SALE OF AN ARTICLE OF PERSONAL PROPERTY WHICH WAS 16 ACQUIRED BY THE SELLER AS A TRADE-IN TO THE EXTENT THAT THE 17 GROSS RECEIPTS IN THE SALE OF THE ARTICLE TAKEN IN TRADE DOES 18 NOT EXCEED THE AMOUNT OF TRADE-IN ALLOWANCE MADE IN ACQUIRING 19 SUCH ARTICLE; (IV) REFUNDS, CREDITS OR ALLOWANCES GIVEN TO A 20 PURCHASER ON ACCOUNT OF DEFECTS IN GOODS SOLD OR MERCHANDISE 21 RETURNED; (V) PENNSYLVANIA SALES TAX; (VI) BASED ON THE VALUE OF 22 EXCHANGES OR TRANSFERS BETWEEN ONE SELLER AND ANOTHER SELLER WHO 23 TRANSFERS PROPERTY WITH THE UNDERSTANDING THAT PROPERTY OF AN 24 IDENTICAL DESCRIPTION WILL BE RETURNED AT A SUBSEQUENT DATE; 25 HOWEVER, WHEN SELLERS ENGAGED IN SIMILAR LINES OF BUSINESS 26 EXCHANGE PROPERTY AND ONE OF THEM MAKES PAYMENT TO THE OTHER IN 27 ADDITION TO THE PROPERTY EXCHANGED, THE ADDITIONAL PAYMENT 28 RECEIVED MAY BE INCLUDED IN THE GROSS RECEIPTS OF THE SELLER 29 RECEIVING SUCH ADDITIONAL CASH PAYMENTS; (VII) OF SELLERS FROM 30 SALES TO OTHER SELLERS IN THE SAME LINE WHERE THE SELLER 20050S0157B1401 - 24 -
1 TRANSFERS THE TITLE OR POSSESSION AT THE SAME PRICE FOR WHICH 2 THE SELLER ACQUIRED THE MERCHANDISE; OR (VIII) TRANSFERS BETWEEN 3 ONE DEPARTMENT, BRANCH OR DIVISION OF A CORPORATION OR OTHER 4 BUSINESS ENTITY OF GOODS, WARES AND MERCHANDISE TO ANOTHER 5 DEPARTMENT, BRANCH OR DIVISION OF THE SAME CORPORATION OR 6 BUSINESS ENTITY AND WHICH ARE RECORDED ON THE BOOKS TO REFLECT 7 SUCH INTERDEPARTMENTAL TRANSACTIONS. 8 (13) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS 9 TAX ON MEMBERSHIP, MEMBERSHIP DUES, FEES OR ASSESSMENTS, 10 DONATIONS, CONTRIBUTIONS OR MONETARY CHARGES OF ANY CHARACTER 11 WHATSOEVER PAID BY THE GENERAL PUBLIC, OR A LIMITED OR SELECTED 12 NUMBER THEREOF, FOR SUCH PERSONS TO ENTER INTO ANY PLACE, 13 INDOORS OR OUTDOORS, TO ENGAGE IN ANY ACTIVITIES, THE 14 PREDOMINANT PURPOSE OR NATURE OF WHICH IS EXERCISE, FITNESS, 15 HEALTH MAINTENANCE, IMPROVEMENT OR REHABILITATION, HEALTH OR 16 NUTRITION EDUCATION, OR WEIGHT CONTROL. 17 (14) EXCEPT BY CITIES OF THE SECOND CLASS, TO LEVY, ASSESS 18 OR COLLECT A TAX ON PAYROLL AMOUNTS GENERATED AS A RESULT OF 19 BUSINESS ACTIVITY. 20 (15) EXCEPT BY CITIES OF THE SECOND CLASS IN WHICH A SPORTS 21 STADIUM OR ARENA THAT HAS RECEIVED PUBLIC FUNDS IN CONNECTION 22 WITH ITS CONSTRUCTION OR MAINTENANCE IS LOCATED, TO LEVY, ASSESS 23 AND COLLECT A PUBLICLY FUNDED FACILITY USAGE FEE UPON THOSE 24 NONRESIDENT INDIVIDUALS WHO USE SUCH FACILITY TO ENGAGE IN AN 25 ATHLETIC EVENT OR OTHERWISE RENDER A PERFORMANCE FOR WHICH THEY 26 RECEIVE REMUNERATION. 27 (16) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS 28 TAX ON THE CHARGE IMPOSED UPON A PATRON FOR THE SALE OF 29 ADMISSION TO OR FOR THE PRIVILEGE OF ADMISSION TO A BOWLING 30 ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF BOWLING. 20050S0157B1401 - 25 -
1 SECTION 2. SECTION 7 OF THE ACT, AMENDED AUGUST 11, 1967 2 (P.L.228, NO.83) AND OCTOBER 9, 1967 (P.L.361, NO.160), IS 3 AMENDED TO READ: 4 SECTION 7. FILING OF CERTIFIED COPIES OF ORDINANCES AND 5 RESOLUTIONS.--WHEN AN ORDINANCE OR A RESOLUTION IS FIRST PASSED 6 OR ADOPTED BY A POLITICAL SUBDIVISION IMPOSING A TAX OR LICENSE 7 FEE UNDER THE AUTHORITY OF THIS ACT, AN EXACT PRINTED OR 8 TYPEWRITTEN COPY THEREOF, CERTIFIED TO BY THE SECRETARY OF THE 9 TAXING BODY, SHALL BE FILED WITH THE [DEPARTMENT OF COMMUNITY 10 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT WITHIN 11 FIFTEEN DAYS AFTER THE SAME BECOMES EFFECTIVE. 12 ANY SECRETARY OR PERSON ACTING AS THE CLERK OR SECRETARY OF 13 THE TAXING BODY OF ANY POLITICAL SUBDIVISION DURING THE MEETING 14 AT WHICH AN ORDINANCE OR RESOLUTION IMPOSING A TAX OR LICENSE 15 FEE IS PASSED OR ADOPTED AS HEREIN PROVIDED WHO SHALL FAIL TO 16 FILE THE CERTIFIED COPY OR STATEMENT RELATIVE THERETO WITH THE 17 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND 18 ECONOMIC DEVELOPMENT AS HEREIN REQUIRED, SHALL, UPON SUMMARY 19 CONVICTION THEREOF IN THE COUNTY IN WHICH THE POLITICAL 20 SUBDIVISION IS LOCATED, BE SENTENCED TO PAY A FINE OF NOT LESS 21 THAN FIVE DOLLARS ($5) NOR MORE THAN TWENTY-FIVE DOLLARS ($25), 22 AND THE COSTS OF PROSECUTION. 23 SECTION 3. SECTION 8 OF THE ACT, AMENDED DECEMBER 1, 2004 24 (P.L.1729, NO.222), IS AMENDED TO READ: 25 SECTION 8. LIMITATIONS ON RATES OF SPECIFIC TAXES.--NO TAXES 26 LEVIED UNDER THE PROVISIONS OF THIS ACT SHALL BE LEVIED BY ANY 27 POLITICAL SUBDIVISION ON THE FOLLOWING SUBJECTS EXCEEDING THE 28 RATES SPECIFIED IN THIS SECTION: 29 (1) PER CAPITA, POLL OR OTHER SIMILAR HEAD TAXES, TEN 30 DOLLARS ($10). 20050S0157B1401 - 26 -
1 (2) ON EACH DOLLAR OF THE WHOLE VOLUME OF BUSINESS 2 TRANSACTED BY WHOLESALE DEALERS IN GOODS, WARES AND MERCHANDISE, 3 ONE MILL, BY RETAIL DEALERS IN GOODS, WARES AND MERCHANDISE AND 4 BY PROPRIETORS OF RESTAURANTS OR OTHER PLACES WHERE FOOD, DRINK 5 AND REFRESHMENTS ARE SERVED, ONE AND ONE-HALF MILLS; EXCEPT IN 6 CITIES OF THE SECOND CLASS, WHERE RATES SHALL NOT EXCEED ONE 7 MILL ON WHOLESALE DEALERS AND TWO MILLS ON RETAIL DEALERS AND 8 PROPRIETORS. NO SUCH TAX SHALL BE LEVIED ON THE DOLLAR VOLUME OF 9 BUSINESS TRANSACTED BY WHOLESALE AND RETAIL DEALERS DERIVED FROM 10 THE RESALE OF GOODS, WARES AND MERCHANDISE, TAKEN BY ANY DEALER 11 AS A TRADE-IN OR AS PART PAYMENT FOR OTHER GOODS, WARES AND 12 MERCHANDISE, EXCEPT TO THE EXTENT THAT THE RESALE PRICE EXCEEDS 13 THE TRADE-IN ALLOWANCE. 14 (3) ON WAGES, SALARIES, COMMISSIONS AND OTHER EARNED INCOME 15 OF INDIVIDUALS, ONE PERCENT. 16 (4) ON RETAIL SALES INVOLVING THE TRANSFER OF TITLE OR 17 POSSESSION OF TANGIBLE PERSONAL PROPERTY, TWO PERCENT. 18 (5) ON THE TRANSFER OF REAL PROPERTY, ONE PERCENT. 19 (6) ON ADMISSIONS TO PLACES OF AMUSEMENT, ATHLETIC EVENTS 20 AND THE LIKE, AND ON MOTION PICTURE THEATRES IN CITIES OF THE 21 SECOND CLASS, TEN PERCENT. 22 (7) FLAT RATE OCCUPATION TAXES NOT USING A MILLAGE OR 23 PERCENTAGE AS A BASIS, TEN DOLLARS ($10). 24 (8) [EMERGENCY AND MUNICIPAL] MUNICIPAL SERVICES TAXES, 25 FIFTY-TWO DOLLARS ($52). 26 (9) ON ADMISSIONS TO SKI FACILITIES, TEN PERCENT. THE TAX 27 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY 28 PERCENT OF THE COST OF THE LIFT TICKET. THE LIFT TICKET SHALL 29 INCLUDE ALL COSTS OF ADMISSIONS TO THE SKI FACILITY. 30 (10) ON ADMISSIONS TO GOLF COURSES, TEN PERCENT. THE TAX 20050S0157B1401 - 27 -
1 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY 2 PERCENT OF THE GREENS FEE. THE GREENS FEE SHALL INCLUDE ALL 3 COSTS OF ADMISSIONS TO THE GOLF COURSE. 4 (12) ON PAYROLLS, FIFTY-FIVE HUNDREDTHS PERCENT. 5 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AT ANY TIME TWO 6 POLITICAL SUBDIVISIONS SHALL IMPOSE ANY ONE OF THE ABOVE TAXES 7 ON THE SAME PERSON, SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE, 8 LOCATED WITHIN BOTH SUCH POLITICAL SUBDIVISIONS, DURING THE SAME 9 YEAR OR PART OF THE SAME YEAR, UNDER THE AUTHORITY OF THIS ACT 10 THEN THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THE 11 AUTHORITY OF THIS ACT SHALL, DURING THE TIME SUCH DUPLICATION OF 12 THE TAX EXISTS, EXCEPT AS HEREINAFTER OTHERWISE PROVIDED, BE 13 ONE-HALF OF THE RATE, AS ABOVE LIMITED, AND SUCH ONE-HALF RATE 14 SHALL BECOME EFFECTIVE BY VIRTUE OF THE REQUIREMENTS OF THIS ACT 15 FROM THE DAY SUCH DUPLICATION BECOMES EFFECTIVE WITHOUT ANY 16 ACTION ON THE PART OF THE POLITICAL SUBDIVISION IMPOSING THE TAX 17 UNDER THE AUTHORITY OF THIS ACT. WHEN ANY ONE OF THE ABOVE TAXES 18 HAS BEEN LEVIED UNDER THE PROVISIONS OF THIS ACT BY ONE 19 POLITICAL SUBDIVISION AND A SUBSEQUENT LEVY IS MADE EITHER FOR 20 THE FIRST TIME OR IS REVIVED AFTER A LAPSE OF TIME BY ANOTHER 21 POLITICAL SUBDIVISION ON THE SAME PERSON, SUBJECT, BUSINESS, 22 TRANSACTION OR PRIVILEGE AT A RATE THAT WOULD MAKE THE COMBINED 23 LEVIES EXCEED THE LIMIT ALLOWED BY THIS SUBDIVISION, THE TAX OF 24 THE SECOND POLITICAL SUBDIVISION SHALL NOT BECOME EFFECTIVE 25 UNTIL THE END OF THE FISCAL YEAR FOR WHICH THE PRIOR TAX WAS 26 LEVIED, UNLESS: 27 (1) NOTICE INDICATING ITS INTENTION TO MAKE SUCH LEVY IS 28 GIVEN TO THE FIRST TAXING BODY BY THE SECOND TAXING BODY AS 29 FOLLOWS: (I) WHEN THE NOTICE IS GIVEN TO A SCHOOL DISTRICT IT 30 SHALL BE GIVEN AT LEAST FORTY-FIVE DAYS PRIOR TO THE LAST DAY 20050S0157B1401 - 28 -
1 FIXED BY LAW FOR THE LEVY OF ITS SCHOOL TAXES; (II) WHEN GIVEN 2 TO ANY OTHER POLITICAL SUBDIVISION IT SHALL BE PRIOR TO THE 3 FIRST DAY OF JANUARY IMMEDIATELY PRECEDING, OR IF A LAST DAY FOR 4 THE ADOPTION OF THE BUDGET IS FIXED BY LAW, AT LEAST FORTY-FIVE 5 DAYS PRIOR TO SUCH LAST DAY; OR 6 (2) UNLESS THE FIRST TAXING BODY SHALL INDICATE BY 7 APPROPRIATE RESOLUTION ITS DESIRE TO WAIVE NOTICE REQUIREMENTS 8 IN WHICH CASE THE LEVY OF THE SECOND TAXING BODY SHALL BECOME 9 EFFECTIVE ON SUCH DATE AS MAY BE AGREED UPON BY THE TWO TAXING 10 BODIES. 11 IT IS THE INTENT AND PURPOSE OF THIS PROVISION TO LIMIT RATES 12 OF TAXES REFERRED TO IN THIS SECTION SO THAT THE ENTIRE BURDEN 13 OF ONE TAX ON A PERSON, SUBJECT, BUSINESS, TRANSACTION OR 14 PRIVILEGE SHALL NOT EXCEED THE LIMITATIONS PRESCRIBED IN THIS 15 SECTION: PROVIDED, HOWEVER, THAT ANY TWO POLITICAL SUBDIVISIONS 16 WHICH IMPOSE ANY ONE OF THE ABOVE TAXES, ON THE SAME PERSON, 17 SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE DURING THE SAME YEAR 18 OR PART OF THE SAME YEAR MAY AGREE AMONG THEMSELVES THAT, 19 INSTEAD OF LIMITING THEIR RESPECTIVE RATES TO ONE-HALF OF THE 20 MAXIMUM RATE HEREIN PROVIDED, THEY WILL IMPOSE RESPECTIVELY 21 DIFFERENT RATES, THE TOTAL OF WHICH SHALL NOT EXCEED THE MAXIMUM 22 RATE AS ABOVE PERMITTED. 23 NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, ANY CITY OF 24 THE SECOND CLASS A MAY ENACT A TAX UPON WAGES, SALARIES, 25 COMMISSIONS AND OTHER EARNED INCOME OF INDIVIDUALS RESIDENT 26 THEREIN, NOT EXCEEDING ONE PERCENT, EVEN THOUGH A SCHOOL 27 DISTRICT LEVIES A SIMILAR TAX ON THE SAME PERSON PROVIDED THAT 28 THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT. IN THE 29 CASE OF DUPLICATION OF [EMERGENCY AND] MUNICIPAL SERVICES TAXES 30 BY BOTH A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT OF THE 20050S0157B1401 - 29 -
1 FIRST CLASS A, AND ANOTHER TAXING BODY, THE SCHOOL DISTRICT'S 2 SHARE OF THE TAX SHALL NOT EXCEED THE AMOUNT OF A TAX ON THE 3 PRIVILEGE OF ENGAGING IN AN OCCUPATION COLLECTED BY THE SCHOOL 4 DISTRICT AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH. IN THE CASE 5 WHERE A SCHOOL DISTRICT DID NOT LEVY A TAX ON THE PRIVILEGE OF 6 ENGAGING IN AN OCCUPATION ON THE EFFECTIVE DATE OF THIS 7 PARAGRAPH, THE SCHOOL DISTRICT MAY IMPOSE A FUTURE LEVY NOT TO 8 EXCEED FIVE DOLLARS ($5). A SCHOOL DISTRICT OF THE FIRST CLASS A 9 SHALL NOT LEVY, ASSESS OR COLLECT [AN EMERGENCY AND] A MUNICIPAL 10 SERVICES TAX. 11 SECTION 4. SECTION 9 OF THE ACT, AMENDED DECEMBER 12, 1968 12 (P.L.1203, NO.377), IS AMENDED TO READ: 13 SECTION 9. REGISTER FOR EARNED INCOME AND OCCUPATIONAL 14 PRIVILEGE TAXES.--IT SHALL BE THE DUTY OF THE [DEPARTMENT OF 15 COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC 16 DEVELOPMENT TO HAVE AVAILABLE AN OFFICIAL CONTINUING REGISTER 17 SUPPLEMENTED ANNUALLY OF ALL EARNED INCOME AND OCCUPATIONAL 18 PRIVILEGE TAXES LEVIED UNDER AUTHORITY OF THIS ACT. THE REGISTER 19 AND ITS SUPPLEMENTS, HEREINAFTER REFERRED TO AS THE REGISTER, 20 SHALL LIST SUCH JURISDICTIONS LEVYING EARNED INCOME AND/OR 21 OCCUPATIONAL PRIVILEGE MUNICIPAL SERVICES TAXES, THE RATE OF THE 22 TAX AS STATED IN THE TAX LEVYING ORDINANCE OR RESOLUTION, AND 23 THE EFFECTIVE RATE ON RESIDENT AND NONRESIDENT TAXPAYERS, IF 24 DIFFERENT FROM THE STATED RATE BECAUSE OF A COTERMINOUS LEVY, 25 THE NAME AND ADDRESS OF THE OFFICER RESPONSIBLE FOR 26 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM 27 INFORMATION, FORMS FOR REPORTING AND COPIES OF RULES AND 28 REGULATIONS ARE AVAILABLE. WITH EACH JURISDICTION LISTED, ALL 29 JURISDICTIONS MAKING COTERMINOUS LEVIES SHALL ALSO BE NOTED AND 30 THEIR TAX RATES SHOWN. 20050S0157B1401 - 30 -
1 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE 2 SECRETARY OF EACH TAXING BODY TO THE [DEPARTMENT OF COMMUNITY 3 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT IN 4 SUCH MANNER AND ON SUCH FORMS AS THE [DEPARTMENT OF COMMUNITY 5 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT MAY 6 PRESCRIBE. THE INFORMATION MUST BE RECEIVED BY THE [DEPARTMENT 7 OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC 8 DEVELOPMENT BY CERTIFIED MAIL NOT LATER THAN MAY 31 OF EACH YEAR 9 TO SHOW NEW TAX ENACTMENTS, REPEALS AND CHANGES. FAILURE TO 10 COMPLY WITH THIS DATE FOR FILING MAY RESULT IN THE OMISSION OF 11 THE LEVY FROM THE REGISTER FOR THAT YEAR. FAILURE OF THE 12 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND 13 ECONOMIC DEVELOPMENT TO RECEIVE INFORMATION OF TAXES CONTINUED 14 WITHOUT CHANGE MAY BE CONSTRUED BY THE DEPARTMENT TO MEAN THAT 15 THE INFORMATION CONTAINED IN THE PREVIOUS REGISTER REMAINS IN 16 FORCE. 17 THE [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY 18 AND ECONOMIC DEVELOPMENT SHALL HAVE THE REGISTER WITH SUCH 19 ANNUAL SUPPLEMENTS AS MAY BE REQUIRED BY NEW TAX ENACTMENTS, 20 REPEALS OR CHANGES AVAILABLE UPON REQUEST NOT LATER THAN JULY 1 21 OF EACH YEAR. THE EFFECTIVE PERIOD FOR EACH REGISTER SHALL BE 22 FROM JULY 1 OF THE YEAR IN WHICH IT IS ISSUED TO JUNE 30 OF THE 23 FOLLOWING YEAR. 24 EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL ORDINANCE TO 25 WITHHOLD FROM THE WAGES, SALARIES, COMMISSIONS OR OTHER 26 COMPENSATION OF THEIR EMPLOYES ANY TAX IMPOSED UNDER THE 27 PROVISIONS OF THIS ACT, WHICH IS NOT LISTED IN THE REGISTER, OR 28 MAKE REPORTS OF WAGES, SALARIES, COMMISSIONS OR OTHER 29 COMPENSATION IN CONNECTION WITH TAXES NOT SO LISTED: PROVIDED, 30 THAT IF THE REGISTER IS NOT AVAILABLE BY JULY 1, THE REGISTER OF 20050S0157B1401 - 31 -
1 THE PREVIOUS YEAR SHALL CONTINUE TEMPORARILY IN EFFECT FOR AN 2 ADDITIONAL PERIOD NOT TO EXCEED ONE YEAR. THE PROVISIONS OF THIS 3 SECTION SHALL NOT AFFECT THE LIABILITY OF ANY TAXPAYER FOR TAXES 4 LAWFULLY IMPOSED UNDER THIS ACT. 5 ORDINANCES OR RESOLUTIONS IMPOSING EARNED INCOME [OR], 6 OCCUPATIONAL PRIVILEGE OR MUNICIPAL SERVICES TAXES UNDER 7 AUTHORITY OF THIS ACT MAY CONTAIN PROVISIONS REQUIRING EMPLOYERS 8 DOING BUSINESS WITHIN THE JURISDICTION OF THE POLITICAL 9 SUBDIVISION IMPOSING THE TAX TO WITHHOLD THE TAX FROM THE 10 COMPENSATION OF THOSE OF THEIR EMPLOYES WHO ARE SUBJECT TO THE 11 TAX: PROVIDED, THAT NO EMPLOYER SHALL BE HELD LIABLE FOR FAILURE 12 TO WITHHOLD EARNED INCOME TAXES OR FOR THE PAYMENT OF SUCH 13 WITHHELD TAX MONEY TO A POLITICAL SUBDIVISION OTHER THAN THE 14 POLITICAL SUBDIVISION ENTITLED TO RECEIVE SUCH MONEY IF SUCH 15 FAILURE TO WITHHOLD OR SUCH INCORRECT TRANSMITTAL OF WITHHELD 16 TAXES ARISES FROM INCORRECT INFORMATION AS TO THE EMPLOYE'S 17 PLACE OF RESIDENCE SUBMITTED BY THE EMPLOYE: AND PROVIDED 18 FURTHER, THAT EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL 19 ORDINANCE TO WITHHOLD FROM COMPENSATION FOR ANY ONE OF THEIR 20 EMPLOYES FOR THE OCCUPATIONAL PRIVILEGE TAX MORE THAN ONE TIME 21 IN ANY FISCAL PERIOD: AND PROVIDED FURTHER, THAT THE 22 OCCUPATIONAL PRIVILEGE AND MUNICIPAL SERVICES TAX SHALL BE 23 APPLICABLE TO EMPLOYMENT IN THE PERIOD BEGINNING JANUARY 1, OF 24 THE CURRENT YEAR AND ENDING DECEMBER 31 OF THE CURRENT YEAR, 25 EXCEPT THAT TAXES IMPOSED FOR THE FIRST TIME SHALL BECOME 26 EFFECTIVE FROM THE DATE SPECIFIED IN THE ORDINANCE OR 27 RESOLUTION, AND THE TAX SHALL CONTINUE IN FORCE ON A CALENDAR 28 YEAR BASIS. 29 SECTION 5. SECTION 19 OF THE ACT, AMENDED OCTOBER 4, 1978 30 (P.L.930, NO.177), IS AMENDED TO READ: 20050S0157B1401 - 32 -
1 SECTION 19. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION, 2 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME 3 TAXES FROM EMPLOYERS, ETC.--THE TAX COLLECTOR SHALL DEMAND, 4 RECEIVE AND COLLECT FROM ALL CORPORATIONS, POLITICAL 5 SUBDIVISIONS, ASSOCIATIONS, COMPANIES, FIRMS OR INDIVIDUALS, 6 EMPLOYING PERSONS OWING DELINQUENT PER CAPITA, OR OCCUPATION, 7 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME 8 TAXES, OR WHOSE SPOUSE OWES DELINQUENT PER CAPITA, OCCUPATION, 9 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME 10 TAXES, OR HAVING IN POSSESSION UNPAID COMMISSIONS OR EARNINGS 11 BELONGING TO ANY PERSON OR PERSONS OWING DELINQUENT PER CAPITA, 12 OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND 13 EARNED INCOME TAXES, OR WHOSE SPOUSE OWES DELINQUENT PER CAPITA, 14 OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND 15 EARNED INCOME TAXES, UPON THE PRESENTATION OF A WRITTEN NOTICE 16 AND DEMAND CERTIFYING THAT THE INFORMATION CONTAINED THEREIN IS 17 TRUE AND CORRECT AND CONTAINING THE NAME OF THE TAXABLE OR THE 18 SPOUSE THEREOF AND THE AMOUNT OF TAX DUE. UPON THE PRESENTATION 19 OF SUCH WRITTEN NOTICE AND DEMAND, IT SHALL BE THE DUTY OF ANY 20 SUCH CORPORATION, POLITICAL SUBDIVISION, ASSOCIATION, COMPANY, 21 FIRM OR INDIVIDUAL TO DEDUCT FROM THE WAGES, COMMISSIONS OR 22 EARNINGS OF SUCH INDIVIDUAL EMPLOYES, THEN OWING OR THAT SHALL 23 WITHIN SIXTY DAYS THEREAFTER BECOME DUE, OR FROM ANY UNPAID 24 COMMISSIONS OR EARNINGS OF ANY SUCH TAXABLE IN ITS OR HIS 25 POSSESSION, OR THAT SHALL WITHIN SIXTY DAYS THEREAFTER COME INTO 26 ITS OR HIS POSSESSION, A SUM SUFFICIENT TO PAY THE RESPECTIVE 27 AMOUNT OF THE DELINQUENT PER CAPITA, OCCUPATION, OCCUPATIONAL 28 PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME TAXES AND COSTS, 29 SHOWN UPON THE WRITTEN NOTICE OR DEMAND, AND TO PAY THE SAME TO 30 THE TAX COLLECTOR OF THE TAXING DISTRICT IN WHICH SUCH 20050S0157B1401 - 33 -
1 DELINQUENT TAX WAS LEVIED WITHIN SIXTY DAYS AFTER SUCH NOTICE 2 SHALL HAVE BEEN GIVEN. NO MORE THAN TEN PERCENT OF THE WAGES, 3 COMMISSIONS OR EARNINGS OF THE DELINQUENT TAXPAYER OR SPOUSE 4 THEREOF MAY BE DEDUCTED AT ANY ONE TIME FOR DELINQUENT PER 5 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES 6 AND EARNED INCOME TAXES AND COSTS. SUCH CORPORATION, POLITICAL 7 SUBDIVISION, ASSOCIATION, FIRM OR INDIVIDUAL SHALL BE ENTITLED 8 TO DEDUCT FROM THE MONEYS COLLECTED FROM EACH EMPLOYE THE COSTS 9 INCURRED FROM THE EXTRA BOOKKEEPING NECESSARY TO RECORD SUCH 10 TRANSACTIONS, NOT EXCEEDING TWO PERCENT OF THE AMOUNT OF MONEY 11 SO COLLECTED AND PAID OVER TO THE TAX COLLECTOR. UPON THE 12 FAILURE OF ANY SUCH CORPORATION, POLITICAL SUBDIVISION, 13 ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL TO DEDUCT THE AMOUNT OF 14 SUCH TAXES OR TO PAY THE SAME OVER TO THE TAX COLLECTOR, LESS 15 THE COST OF BOOKKEEPING INVOLVED IN SUCH TRANSACTION, AS HEREIN 16 PROVIDED, WITHIN THE TIME HEREBY REQUIRED, SUCH CORPORATION, 17 POLITICAL SUBDIVISION, ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL 18 SHALL FORFEIT AND PAY THE AMOUNT OF SUCH TAX FOR EACH SUCH 19 TAXABLE WHOSE TAXES ARE NOT WITHHELD AND PAID OVER, OR THAT ARE 20 WITHHELD AND NOT PAID OVER TOGETHER WITH A PENALTY OF TEN 21 PERCENT ADDED THERETO, TO BE RECOVERED BY AN ACTION OF ASSUMPSIT 22 IN A SUIT TO BE INSTITUTED BY THE TAX COLLECTOR, OR BY THE 23 PROPER AUTHORITIES OF THE TAXING DISTRICT, AS DEBTS OF LIKE 24 AMOUNT ARE NOW BY LAW RECOVERABLE, EXCEPT THAT SUCH PERSON SHALL 25 NOT HAVE THE BENEFIT OF ANY STAY OF EXECUTION OR EXEMPTION LAW. 26 THE TAX COLLECTOR SHALL NOT PROCEED AGAINST A SPOUSE OR HIS 27 EMPLOYER UNTIL HE HAS PURSUED COLLECTION REMEDIES AGAINST THE 28 DELINQUENT TAXPAYER AND HIS EMPLOYER UNDER THIS SECTION. 29 SECTION 6. SECTION 20 OF THE ACT IS AMENDED TO READ: 30 SECTION 20. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION, 20050S0157B1401 - 34 -
1 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME 2 TAXES FROM THE COMMONWEALTH.--UPON PRESENTATION OF A WRITTEN 3 NOTICE AND DEMAND UNDER OATH OR AFFIRMATION, TO THE STATE 4 TREASURER OR ANY OTHER FISCAL OFFICER OF THE STATE, OR ITS 5 BOARDS, AUTHORITIES, AGENCIES OR COMMISSIONS, IT SHALL BE THE 6 DUTY OF THE TREASURER OR OFFICER TO DEDUCT FROM THE WAGES THEN 7 OWING, OR THAT SHALL WITHIN SIXTY DAYS THEREAFTER BECOME DUE TO 8 ANY EMPLOYE, A SUM SUFFICIENT TO PAY THE RESPECTIVE AMOUNT OF 9 THE DELINQUENT PER CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, 10 MUNICIPAL SERVICES AND EARNED INCOME TAXES AND COSTS SHOWN ON 11 THE WRITTEN NOTICE. THE SAME SHALL BE PAID TO THE TAX COLLECTOR 12 OF THE TAXING DISTRICT IN WHICH SAID DELINQUENT TAX WAS LEVIED 13 WITHIN SIXTY DAYS AFTER SUCH NOTICE SHALL HAVE BEEN GIVEN. 14 SECTION 7. SECTION 22.1 OF THE ACT, ADDED NOVEMBER 30, 2004 15 (P.L.1520, NO.192), IS AMENDED TO READ: 16 SECTION 22.1. COSTS OF COLLECTION OF DELINQUENT PER CAPITA, 17 OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND 18 EARNED INCOME TAXES.--(A) A PERSON, PUBLIC EMPLOYE OR PRIVATE 19 AGENCY DESIGNATED BY A GOVERNING BODY OF A POLITICAL SUBDIVISION 20 TO COLLECT AND ADMINISTER A PER CAPITA, OCCUPATION, OCCUPATIONAL 21 PRIVILEGE, MUNICIPAL SERVICES OR EARNED INCOME TAX MAY IMPOSE 22 AND COLLECT THE REASONABLE COSTS INCURRED TO PROVIDE NOTICES OF 23 DELINQUENCY OR TO IMPLEMENT SIMILAR PROCEDURES UTILIZED TO 24 COLLECT DELINQUENT TAXES FROM A TAXPAYER AS APPROVED BY THE 25 GOVERNING BODY OF THE POLITICAL SUBDIVISION. REASONABLE COSTS 26 COLLECTED MAY BE RETAINED BY THE PERSON, PUBLIC EMPLOYE OR 27 PRIVATE AGENCY DESIGNATED TO COLLECT THE TAX AS AGREED TO BY THE 28 GOVERNING BODY OF THE POLITICAL SUBDIVISION. AN ITEMIZED 29 ACCOUNTING OF ALL COSTS COLLECTED SHALL BE REMITTED TO THE 30 POLITICAL SUBDIVISION ON AN ANNUAL BASIS. 20050S0157B1401 - 35 -
1 (B) COSTS RELATED TO THE COLLECTION OF UNPAID PER CAPITA, 2 OCCUPATION [OR], OCCUPATIONAL PRIVILEGE OR MUNICIPAL SERVICES 3 TAXES MAY ONLY BE ASSESSED, LEVIED AND COLLECTED FOR FIVE YEARS 4 FROM THE LAST DAY OF THE CALENDAR YEAR IN WHICH THE TAX WAS DUE. 5 (C) A DELINQUENT TAXPAYER MAY NOT BRING AN ACTION FOR 6 REIMBURSEMENT, REFUND OR ELIMINATION OF REASONABLE COSTS OF 7 COLLECTION ASSESSED OR IMPOSED PRIOR TO THE EFFECTIVE DATE OF 8 THIS SECTION. ADDITIONAL COSTS MAY NOT BE ASSESSED ON DELINQUENT 9 TAXES COLLECTED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. 10 SECTION 8. SECTION 22.5 OF THE ACT, ADDED DECEMBER 1, 2004 11 (P.L.1729, NO.222), IS AMENDED TO READ: 12 [SECTION 22.5. RESTRICTED USE.--(A) ANY MUNICIPALITY 13 DERIVING FUNDS FROM THE EMERGENCY AND MUNICIPAL SERVICES TAX MAY 14 ONLY USE THE FUNDS FOR: 15 (1) POLICE, FIRE AND/OR EMERGENCY SERVICES; 16 (2) ROAD CONSTRUCTION AND/OR MAINTENANCE; OR 17 (3) REDUCTION OF PROPERTY TAXES. 18 (B) FOR THE PURPOSE OF THE EMERGENCY AND MUNICIPAL SERVICES 19 TAX, THE TERM MUNICIPALITY DOES NOT INCLUDE A SCHOOL DISTRICT.] 20 SECTION 9. ANY ORDINANCE OR RESOLUTION PROVIDING FOR THE 21 LEVYING, ASSESSMENT OR COLLECTION OF A TAX ON INDIVIDUALS FOR 22 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION WHICH HAS BEEN 23 ENACTED BY A POLITICAL SUBDIVISION PRIOR TO DECEMBER 1, 2004, 24 SHALL CONTINUE IN FULL FORCE AND EFFECT, WITHOUT REENACTMENT, AS 25 IF SUCH TAX HAD BEEN LEVIED, ASSESSED OR COLLECTED AS A 26 MUNICIPAL SERVICES TAX UNDER SECTION 2(9) OF THE ACT. ALL 27 REFERENCES IN ANY ORDINANCE OR RESOLUTION TO A TAX ON THE 28 PRIVILEGE OF ENGAGING IN AN OCCUPATION SHALL BE DEEMED TO BE A 29 REFERENCE TO A MUNICIPAL SERVICES TAX FOR THE PURPOSES OF THE 30 ACT. 20050S0157B1401 - 36 -
1 SECTION 10. THE AMENDMENT OR ADDITION OF THE FOLLOWING 2 PROVISIONS SHALL APPLY TO TAXES LEVIED FOR CALENDAR YEAR 2006: 3 (1) THE AMENDMENT OF SECTION 2 OF THE ACT. 4 (2) THE AMENDMENT OF SECTION 8 OF THE ACT. 5 (3) THE AMENDMENT OF SECTION 9 OF THE ACT, EXCEPT FOR 6 ANY EDITORIAL AMENDMENT CHANGING THE REFERENCE FROM THE 7 DEPARTMENT OF COMMUNITY AFFAIRS TO THE DEPARTMENT OF 8 COMMUNITY AND ECONOMIC DEVELOPMENT. 9 (4) THE AMENDMENT OF SECTION 19 OF THE ACT. 10 (5) THE AMENDMENT OF SECTION 20 OF THE ACT. 11 (6) THE AMENDMENT OF SECTION 22.1 OF THE ACT. 12 (7) THE AMENDMENT OF SECTION 22.5 OF THE ACT. 13 SECTION 11. REPEALS ARE AS FOLLOWS: 14 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER 15 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE AMENDMENT OF 16 SECTION 2(9) OF THE ACT. 17 (2) SECTION 6 OF THE ACT OF DECEMBER 1, 2004 (P.L.1729, 18 NO.222), ENTITLED "AN ACT AMENDING THE ACT OF DECEMBER 31, 19 1965 (P.L.1257, NO.511), ENTITLED 'AN ACT EMPOWERING CITIES 20 OF THE SECOND CLASS, CITIES OF THE SECOND CLASS A, CITIES OF 21 THE THIRD CLASS, BOROUGHS, TOWNS, TOWNSHIPS OF THE FIRST 22 CLASS, TOWNSHIPS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE 23 SECOND CLASS, SCHOOL DISTRICTS OF THE THIRD CLASS AND SCHOOL 24 DISTRICTS OF THE FOURTH CLASS INCLUDING INDEPENDENT SCHOOL 25 DISTRICTS, TO LEVY, ASSESS, COLLECT OR TO PROVIDE FOR THE 26 LEVYING, ASSESSMENT AND COLLECTION OF CERTAIN TAXES SUBJECT 27 TO MAXIMUM LIMITATIONS FOR GENERAL REVENUE PURPOSES; 28 AUTHORIZING THE ESTABLISHMENT OF BUREAUS AND THE APPOINTMENT 29 AND COMPENSATION OF OFFICERS, AGENCIES AND EMPLOYES TO ASSESS 30 AND COLLECT SUCH TAXES; PROVIDING FOR JOINT COLLECTION OF 20050S0157B1401 - 37 -
1 CERTAIN TAXES, PRESCRIBING CERTAIN DEFINITIONS AND OTHER 2 PROVISIONS FOR TAXES LEVIED AND ASSESSED UPON EARNED INCOME, 3 PROVIDING FOR ANNUAL AUDITS AND FOR COLLECTION OF DELINQUENT 4 TAXES, AND PERMITTING AND REQUIRING PENALTIES TO BE IMPOSED 5 AND ENFORCED, INCLUDING PENALTIES FOR DISCLOSURE OF 6 CONFIDENTIAL INFORMATION, PROVIDING AN APPEAL FROM THE 7 ORDINANCE OR RESOLUTION LEVYING SUCH TAXES TO THE COURT OF 8 QUARTER SESSIONS AND TO THE SUPREME COURT AND SUPERIOR 9 COURT,' FURTHER PROVIDING FOR DELEGATION OF TAXING POWERS AND 10 RESTRICTIONS THEREON; PROVIDING FOR NONRESIDENT SPORTS 11 FACILITY USAGE FEE, FOR PARKING TAX RATES AND FOR PAYROLL 12 TAXES; FURTHER PROVIDING FOR LIMITATIONS ON RATES OF SPECIFIC 13 TAXES AND FOR THE APPOINTMENT OF A SINGLE COLLECTOR OF TAXES; 14 FURTHER PROVIDING FOR THE APPLICABILITY OF PETITIONS UNDER 15 THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE 16 MUNICIPALITIES FINANCIAL RECOVERY ACT; AND MAKING A REPEAL," 17 IS REPEALED. 18 SECTION 12. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. 19 SECTION 1. SECTION 2 OF THE ACT OF DECEMBER 31, 1965 <-- 20 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AMENDED 21 DECEMBER 1, 2004 (P.L.1729, NO.222), IS AMENDED TO READ: 22 SECTION 2. DELEGATION OF TAXING POWERS AND RESTRICTIONS 23 THEREON.--THE DULY CONSTITUTED AUTHORITIES OF THE FOLLOWING 24 POLITICAL SUBDIVISIONS, CITIES OF THE SECOND CLASS, CITIES OF 25 THE SECOND CLASS A, CITIES OF THE THIRD CLASS, BOROUGHS, TOWNS, 26 TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS, 27 SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE 28 THIRD CLASS, AND SCHOOL DISTRICTS OF THE FOURTH CLASS, IN ALL 29 CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS, MAY, IN THEIR 30 DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL REVENUE 20050S0157B1401 - 38 -
1 PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING, 2 ASSESSMENT AND COLLECTION OF SUCH TAXES AS THEY SHALL DETERMINE 3 ON PERSONS, TRANSACTIONS, OCCUPATIONS, PRIVILEGES, SUBJECTS AND 4 PERSONAL PROPERTY WITHIN THE LIMITS OF SUCH POLITICAL 5 SUBDIVISIONS, AND UPON THE TRANSFER OF REAL PROPERTY, OR OF ANY 6 INTEREST IN REAL PROPERTY, SITUATE WITHIN THE POLITICAL 7 SUBDIVISION LEVYING AND ASSESSING THE TAX, REGARDLESS OF WHERE 8 THE INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR 9 DELIVERED OR WHERE THE ACTUAL SETTLEMENTS ON SUCH TRANSFER TAKE 10 PLACE. THE TAXING AUTHORITY MAY PROVIDE THAT THE TRANSFEREE 11 SHALL REMAIN LIABLE FOR ANY UNPAID REALTY TRANSFER TAXES IMPOSED 12 BY VIRTUE OF THIS ACT. EACH LOCAL TAXING AUTHORITY MAY, BY 13 ORDINANCE OR RESOLUTION, EXEMPT ANY PERSON WHOSE TOTAL INCOME 14 FROM ALL SOURCES IS LESS THAN TWELVE THOUSAND DOLLARS ($12,000) 15 PER ANNUM FROM THE PER CAPITA OR SIMILAR HEAD TAX, OCCUPATION 16 TAX [AND EMERGENCY AND MUNICIPAL SERVICES TAX], OR EARNED INCOME 17 TAX, OR ANY PORTION THEREOF, AND MAY ADOPT REGULATIONS FOR THE 18 PROCESSING OF CLAIMS FOR EXEMPTIONS. EACH POLITICAL SUBDIVISION 19 SHALL BY ORDINANCE OR RESOLUTION EXEMPT ANY PERSON FROM THE 20 LOCAL SERVICES TAX WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS 21 THAN TWELVE THOUSAND DOLLARS ($12,000) FOR THE CALENDAR YEAR IN 22 WHICH THE LOCAL SERVICES TAX IS LEVIED, AND SHALL ADOPT 23 REGULATIONS FOR THE PROCESSING OF REFUND CLAIMS FOR A LOCAL 24 SERVICES TAX PAID BY ANY PERSON WHO IS ELIGIBLE FOR THE 25 EXEMPTION. THE REGULATIONS SHALL BE CONSISTENT WITH 53 PA.C.S. 26 §§ 8425 (RELATING TO REFUNDS OF OVERPAYMENTS) AND 8426 (RELATING 27 TO INTEREST ON OVERPAYMENT). THE DATE OF OVERPAYMENT FOR A LOCAL 28 SERVICES TAX SHALL BE THE DATE THE TAX WAS DEDUCTED AND WITHHELD 29 AT SOURCE. REFUNDS MADE WITHIN SEVENTY-FIVE DAYS OF A REFUND 30 REQUEST OR SEVENTY-FIVE DAYS AFTER THE LAST DAY THE EMPLOYER IS 20050S0157B1401 - 39 -
1 REQUIRED TO REMIT THE LOCAL SERVICES TAX FOR THE LAST QUARTER OF 2 THE CALENDAR YEAR UNDER SECTION 9 OF THIS ACT, WHICHEVER IS 3 LATER, SHALL NOT BE SUBJECT TO INTEREST IMPOSED UNDER 53 PA.C.S. 4 § 8426. IT IS THE INTENT OF THIS SECTION THAT A POLITICAL 5 SUBDIVISION OR ITS TAX OFFICER DETERMINE ELIGIBILITY FOR THE 6 EXEMPTION AND PROVIDE REFUNDS TO EXEMPT PERSONS FROM THE LOCAL 7 SERVICES TAX AND THAT EMPLOYERS SHALL NOT BE RESPONSIBLE FOR 8 PROCESSING THE EXEMPTION OR EXEMPTING ANY EMPLOYE FROM THE LOCAL 9 SERVICES TAX. FOR PURPOSES OF THIS SECTION, "INCOME FROM ALL 10 SOURCES" SHALL MEAN "INCOME" AS DEFINED IN SECTION 3 OF THE ACT 11 OF MARCH 11, 1971 (P.L.104, NO.3), KNOWN AS THE SENIOR CITIZENS 12 REBATE AND ASSISTANCE ACT. THE DEPARTMENT OF COMMUNITY AND 13 ECONOMIC DEVELOPMENT SHALL DEVELOP UNIFORM FORMS TO BE USED BY 14 POLITICAL SUBDIVISIONS TO FACILITATE THE REFUND OF THE TAX TO 15 ANY PERSON ELIGIBLE FOR THE EXEMPTION. SUCH LOCAL AUTHORITIES 16 SHALL NOT HAVE AUTHORITY BY VIRTUE OF THIS ACT: 17 (1) TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING, 18 ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF REAL 19 PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE 20 INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE 21 OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER 22 OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED 23 RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART 24 OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY 25 UNOCCUPIED SINGLE FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER 26 BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE 27 HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS 28 THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL 29 DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM 30 THEM, OR ON TRANSFER TO OR FROM NONPROFIT INDUSTRIAL DEVELOPMENT 20050S0157B1401 - 40 -
1 AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A 2 TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE 3 BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE 4 WITHIN THREE MONTHS OF THE DATE OF THE GRANTING OF THE FINAL 5 DECREE IN DIVORCE, OR THE DECREE OF EQUITABLE DISTRIBUTION OF 6 MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR 7 INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE 8 HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF 9 THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND 10 CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND 11 TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD, 12 OR ON A TRANSFER BETWEEN A GRANDPARENT AND GRANDCHILD OR THE 13 SPOUSE OF SUCH GRANDCHILD, OR ON A TRANSFER BETWEEN BROTHER AND 14 SISTER OR BROTHER AND BROTHER OR SISTER AND SISTER OR THE SPOUSE 15 OF SUCH BROTHER OR SISTER, OR ON A TRANSFER TO A CONSERVANCY 16 WHICH POSSESSES A TAX-EXEMPT STATUS PURSUANT TO SECTION 17 501(C)(3) OF THE INTERNAL REVENUE CODE, AND WHICH HAS AS ITS 18 PRIMARY PURPOSE THE PRESERVATION OF LAND FOR HISTORIC, 19 RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN SPACE OPPORTUNITIES, 20 BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF 21 PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A 22 CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE 23 UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF 24 THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY 25 GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION, OR DEED OF 26 CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS, OR 27 RECONVEYANCE BY THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO 28 THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH 29 RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID 30 RECONVEYANCE IS MADE WITHIN ONE YEAR FROM THE DATE OF 20050S0157B1401 - 41 -
1 CONDEMNATION, LEASES, OR ON A CONVEYANCE TO A TRUSTEE UNDER A 2 RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING 3 TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF 4 THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND 5 REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR- 6 BORROWER UPON THE REPAYMENT OF THE DEBT, OR A TRANSFER WITHIN A 7 FAMILY FROM A SOLE PROPRIETOR FAMILY MEMBER TO A FAMILY FARM 8 CORPORATION, OR IN ANY SHERIFF SALE INSTITUTED BY A MORTGAGEE IN 9 WHICH THE PURCHASER OF SAID SHERIFF SALE IS THE MORTGAGEE WHO 10 INSTITUTED SAID SALE, OR ON A PRIVILEGE, TRANSACTION, SUBJECT, 11 OCCUPATION OR PERSONAL PROPERTY WHICH IS NOW OR DOES HEREAFTER 12 BECOME SUBJECT TO A STATE TAX OR LICENSE FEE; 13 (2) TO LEVY, ASSESS OR COLLECT A TAX ON THE GROSS RECEIPTS 14 FROM UTILITY SERVICE OF ANY PERSON OR COMPANY WHOSE RATES AND 15 SERVICES ARE FIXED AND REGULATED BY THE PENNSYLVANIA PUBLIC 16 UTILITY COMMISSION OR ON ANY PUBLIC UTILITY SERVICES RENDERED BY 17 ANY SUCH PERSON OR COMPANY OR ON ANY PRIVILEGE OR TRANSACTION 18 INVOLVING THE RENDERING OF ANY SUCH PUBLIC UTILITY SERVICE; 19 (3) EXCEPT ON SALES OF ADMISSION TO PLACES OF AMUSEMENT OR 20 ON SALES OR OTHER TRANSFERS OF TITLE OR POSSESSION OF PROPERTY, 21 TO LEVY, ASSESS OR COLLECT A TAX ON THE PRIVILEGE OF EMPLOYING 22 SUCH TANGIBLE PROPERTY AS IS NOW OR DOES HEREAFTER BECOME 23 SUBJECT TO A STATE TAX; AND FOR THE PURPOSES OF THIS CLAUSE, 24 REAL PROPERTY RENTED FOR CAMPING PURPOSES SHALL NOT BE 25 CONSIDERED A PLACE OF AMUSEMENT. 26 (4) TO LEVY, ASSESS AND COLLECT A TAX ON GOODS AND ARTICLES 27 MANUFACTURED IN SUCH POLITICAL SUBDIVISION OR ON THE BY-PRODUCTS 28 OF MANUFACTURE, OR ON MINERALS, TIMBER, NATURAL RESOURCES AND 29 FARM PRODUCTS PRODUCED IN SUCH POLITICAL SUBDIVISION OR ON THE 30 PREPARATION OR PROCESSING THEREOF FOR USE OR MARKET, OR ON ANY 20050S0157B1401 - 42 -
1 PRIVILEGE, ACT OR TRANSACTION RELATED TO THE BUSINESS OF
2 MANUFACTURING, THE PRODUCTION, PREPARATION OR PROCESSING OF
3 MINERALS, TIMBER AND NATURAL RESOURCES, OR FARM PRODUCTS, BY
4 MANUFACTURERS, BY PRODUCERS AND BY FARMERS WITH RESPECT TO THE
5 GOODS, ARTICLES AND PRODUCTS OF THEIR OWN MANUFACTURE,
6 PRODUCTION OR GROWTH, OR ON ANY PRIVILEGE, ACT OR TRANSACTION
7 RELATING TO THE BUSINESS OF PROCESSING BY-PRODUCTS OF
8 MANUFACTURE, OR ON THE TRANSPORTATION, LOADING, UNLOADING OR
9 DUMPING OR STORAGE OF SUCH GOODS, ARTICLES, PRODUCTS OR BY-
10 PRODUCTS; EXCEPT THAT LOCAL AUTHORITIES MAY LEVY, ASSESS AND
11 COLLECT [AN EMERGENCY AND MUNICIPAL] A LOCAL SERVICES TAX AND
12 TAXES ON THE OCCUPATION, PER CAPITA AND EARNED INCOME OR NET
13 PROFITS OF NATURAL PERSONS ENGAGED IN THE ABOVE ACTIVITIES
14 WHETHER DOING BUSINESS AS INDIVIDUAL PROPRIETORSHIP OR AS
15 MEMBERS OF PARTNERSHIPS OR OTHER ASSOCIATIONS;
16 (5) TO LEVY, ASSESS OR COLLECT A TAX ON SALARIES, WAGES,
17 COMMISSIONS, COMPENSATION AND EARNED INCOME OF NONRESIDENTS OF
18 THE POLITICAL SUBDIVISIONS: PROVIDED, THAT THIS LIMITATION (5)
19 SHALL APPLY ONLY TO SCHOOL DISTRICTS OF THE SECOND, THIRD AND
20 FOURTH CLASSES;
21 (6) TO LEVY, ASSESS OR COLLECT A TAX ON PERSONAL PROPERTY
22 SUBJECT TO TAXATION BY COUNTIES OR ON PERSONAL PROPERTY OWNED BY
23 PERSONS, ASSOCIATIONS AND CORPORATIONS SPECIFICALLY EXEMPTED BY
24 LAW FROM TAXATION UNDER THE COUNTY PERSONAL PROPERTY TAX LAW:
25 PROVIDED, THAT THIS LIMITATION (6) SHALL NOT APPLY TO CITIES OF
26 THE SECOND CLASS;
27 (7) TO LEVY, ASSESS OR COLLECT A TAX ON MEMBERSHIP IN OR
28 MEMBERSHIP DUES, FEES OR ASSESSMENT OF CHARITABLE, RELIGIOUS,
29 BENEFICIAL OR NONPROFIT ORGANIZATIONS INCLUDING BUT NOT LIMITED
30 TO SPORTSMENS, RECREATIONAL, GOLF AND TENNIS CLUBS, GIRL AND BOY
20050S0157B1401 - 43 -
1 SCOUT TROOPS AND COUNCILS;
2 (8) TO LEVY, ASSESS OR COLLECT ANY TAX ON A MOBILEHOME OR
3 HOUSE TRAILER SUBJECT TO A REAL PROPERTY TAX UNLESS THE SAME TAX
4 IS LEVIED, ASSESSED AND COLLECTED ON OTHER REAL PROPERTY IN THE
5 POLITICAL SUBDIVISION.
6 (9) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR
7 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION ([EMERGENCY AND
8 MUNICIPAL] LOCAL SERVICES TAX) EXCEPT THAT SUCH A TAX MAY BE
9 LEVIED, ASSESSED AND COLLECTED ONLY BY THE POLITICAL SUBDIVISION
10 OF THE TAXPAYER'S PLACE OF EMPLOYMENT.
11 [PAYMENT OF ANY EMERGENCY AND MUNICIPAL SERVICES TAX TO ANY
12 POLITICAL SUBDIVISION BY ANY PERSON PURSUANT TO AN ORDINANCE OR
13 RESOLUTION PASSED OR ADOPTED UNDER THE AUTHORITY OF THIS ACT
14 SHALL BE NO LESS THAN TEN DOLLARS ($10) NOR MORE THAN FIFTY-TWO
15 DOLLARS ($52) ON EACH PERSON FOR EACH CALENDAR YEAR.
16 THE SITUS OF SUCH TAX SHALL BE THE PLACE OF EMPLOYMENT, BUT,
17 IN THE EVENT A PERSON IS ENGAGED IN MORE THAN ONE OCCUPATION, OR
18 AN OCCUPATION WHICH REQUIRES HIS WORKING IN MORE THAN ONE
19 POLITICAL SUBDIVISION DURING THE CALENDAR YEAR, THE PRIORITY OF
20 CLAIM TO COLLECT SUCH EMERGENCY AND MUNICIPAL SERVICES TAX SHALL
21 BE IN THE FOLLOWING ORDER: FIRST, THE POLITICAL SUBDIVISION IN
22 WHICH A PERSON MAINTAINS HIS PRINCIPAL OFFICE OR IS PRINCIPALLY
23 EMPLOYED; SECOND, THE POLITICAL SUBDIVISION IN WHICH THE PERSON
24 RESIDES AND WORKS, IF SUCH A TAX IS LEVIED BY THAT POLITICAL
25 SUBDIVISION; THIRD, THE POLITICAL SUBDIVISION IN WHICH A PERSON
26 IS EMPLOYED AND WHICH IMPOSES THE TAX NEAREST IN MILES TO THE
27 PERSON'S HOME. THE PLACE OF EMPLOYMENT SHALL BE DETERMINED AS OF
28 THE DAY THE TAXPAYER FIRST BECOMES SUBJECT TO THE TAX DURING THE
29 CALENDAR YEAR.
30 IT IS THE INTENT OF THIS PROVISION THAT NO PERSON SHALL PAY
20050S0157B1401 - 44 -
1 MORE THAN FIFTY-TWO DOLLARS ($52) IN ANY CALENDAR YEAR AS AN 2 EMERGENCY AND MUNICIPAL SERVICES TAX IRRESPECTIVE OF THE NUMBER 3 OF POLITICAL SUBDIVISIONS WITHIN WHICH SUCH PERSON MAY BE 4 EMPLOYED WITHIN ANY GIVEN CALENDAR YEAR. 5 IN CASE OF DISPUTE, A TAX RECEIPT OF THE TAXING AUTHORITY FOR 6 THAT CALENDAR YEAR DECLARING THAT THE TAXPAYER HAS MADE PRIOR 7 PAYMENT WHICH CONSTITUTES PRIMA FACIE CERTIFICATION OF PAYMENT 8 TO ALL OTHER POLITICAL SUBDIVISIONS.] THE FOLLOWING APPLY: 9 (I) FOR ANY PAYROLL PERIOD IN A CALENDAR YEAR, A POLITICAL 10 SUBDIVISION LEVYING A LOCAL SERVICES TAX PURSUANT TO AN 11 ORDINANCE OR A RESOLUTION UNDER THE AUTHORITY OF THIS ACT SHALL 12 COLLECT NO MORE THAN THE PRO RATA SHARE OF THE TAX LEVIED ON A 13 PERSON FOR A CALENDAR YEAR DETERMINED BY DIVIDING THE TAX LEVIED 14 ON A PERSON FOR THE CALENDAR YEAR BY THE NUMBER OF PAYROLL 15 PERIODS ESTABLISHED BY THE EMPLOYER FOR THE CALENDAR YEAR. FOR 16 PURPOSES OF DETERMINING THE PRO RATA SHARE, EMPLOYERS SHALL 17 ROUND DOWN THE AMOUNT OF THE TAX COLLECTED EACH PAYROLL PERIOD 18 TO THE NEAREST ONE-HUNDREDTH OF A DOLLAR. THE LOCAL SERVICES TAX 19 SHALL BE NO MORE THAN FIFTY-TWO DOLLARS ($52) ON EACH PERSON FOR 20 EACH CALENDAR YEAR, IRRESPECTIVE OF THE NUMBER OF POLITICAL 21 SUBDIVISIONS WITHIN WHICH A PERSON MAY BE EMPLOYED. 22 (II) IF A SCHOOL DISTRICT LEVIED AND COLLECTED AN EMERGENCY 23 AND MUNICIPAL SERVICES TAX ON THE EFFECTIVE DATE OF THIS 24 SUBCLAUSE, THE SCHOOL DISTRICT MAY CONTINUE TO LEVY A LOCAL 25 SERVICES TAX IN THE SAME AMOUNT THE SCHOOL DISTRICT COLLECTED ON 26 THE EFFECTIVE DATE OF THIS SUBCLAUSE, SUBJECT TO THE PRO RATA 27 LIMITATION BASED ON PAYROLL PERIODS OF SUBCLAUSE (I). HOWEVER, 28 IF A MUNICIPALITY LOCATED IN WHOLE OR IN PART WITHIN THE SCHOOL 29 DISTRICT SUBSEQUENTLY LEVIES THE LOCAL SERVICES TAX, THE SCHOOL 30 DISTRICT MAY ONLY COLLECT FIVE DOLLARS ($5) ON TAXPAYERS 20050S0157B1401 - 45 -
1 EMPLOYED WITHIN THE MUNICIPALITY EACH CALENDAR YEAR, SUBJECT TO 2 THE LIMITATIONS OF THIS CLAUSE. A SCHOOL DISTRICT THAT DID NOT 3 LEVY OR COLLECT A LOCAL SERVICES TAX ON THE EFFECTIVE DATE OF 4 THIS SUBCLAUSE SHALL BE PROHIBITED FROM LEVYING A LOCAL SERVICES 5 TAX. IF A SCHOOL DISTRICT AND A MUNICIPALITY LOCATED IN WHOLE OR 6 IN PART WITHIN THE SCHOOL DISTRICT BOTH LEVY A LOCAL SERVICES 7 TAX, THE SCHOOL DISTRICT'S PRO RATA SHARE OF THE AGGREGATE LOCAL 8 SERVICES TAXES LEVIED ON TAXPAYERS EMPLOYED WITHIN THE 9 MUNICIPALITY SHALL BE COLLECTED BY THE MUNICIPALITY OR ITS TAX 10 OFFICER BASED ON PAY PERIODS, AND PAID TO THE SCHOOL DISTRICT ON 11 A QUARTERLY BASIS WITHIN SIXTY DAYS OF RECEIPT BY THE 12 MUNICIPALITY OR ITS TAX OFFICER. IF A MUNICIPALITY LOCATED IN 13 WHOLE OR IN PART WITHIN A SCHOOL DISTRICT DOES NOT LEVY AND 14 COLLECT THE LOCAL SERVICES TAX, THE SCHOOL DISTRICT MAY PROVIDE 15 FOR COLLECTION OF THE LOCAL SERVICES TAX AS PROVIDED IN SECTION 16 10 OF THIS ACT. 17 (III) NO TAXPAYER SHALL BE SUBJECT TO THE PAYMENT OF THE 18 LOCAL SERVICES TAX BY MORE THAN ONE POLITICAL SUBDIVISION DURING 19 EACH PAYROLL PERIOD AS ESTABLISHED BY SUBCLAUSE (IV). 20 (IV) THE SITUS OF THE TAX SHALL BE THE PLACE OF EMPLOYMENT 21 ON THE FIRST DAY THE TAXPAYER BECOMES SUBJECT TO THE TAX DURING 22 EACH PAYROLL PERIOD IN A CALENDAR YEAR, BUT, IN THE EVENT A 23 PERSON IS ENGAGED IN MORE THAN ONE OCCUPATION, THAT IS, 24 CONCURRENT EMPLOYMENT, OR AN OCCUPATION WHICH REQUIRES THE 25 TAXPAYER WORKING IN MORE THAN ONE POLITICAL SUBDIVISION DURING A 26 PAYROLL PERIOD, THE PRIORITY OF CLAIM TO COLLECT THE LOCAL 27 SERVICES TAX SHALL BE IN THE FOLLOWING ORDER: FIRST, THE 28 POLITICAL SUBDIVISION IN WHICH A PERSON MAINTAINS THE PERSON'S 29 PRINCIPAL OFFICE OR IS PRINCIPALLY EMPLOYED; SECOND, THE 30 POLITICAL SUBDIVISION IN WHICH THE PERSON RESIDES AND WORKS, IF 20050S0157B1401 - 46 -
1 THE TAX IS LEVIED BY THAT POLITICAL SUBDIVISION; AND THIRD, THE 2 POLITICAL SUBDIVISION IN WHICH A PERSON IS EMPLOYED AND WHICH 3 IMPOSES THE TAX NEAREST IN MILES TO THE PERSON'S HOME. 4 (V) IN THE CASE OF CONCURRENT EMPLOYMENT, AN EMPLOYER SHALL 5 REFRAIN FROM WITHHOLDING THE LOCAL SERVICES TAX IF THE EMPLOYE 6 PROVIDES A RECENT PAY STATEMENT FROM A PRINCIPAL EMPLOYER THAT 7 INCLUDES THE NAME OF THE EMPLOYER, THE LENGTH OF THE PAY PERIOD 8 AND THE AMOUNT OF THE LOCAL SERVICES TAX WITHHELD, WHICH IS 9 ACCOMPANIED BY A STATEMENT FROM THE EMPLOYE THAT THE PAY 10 STATEMENT IS FROM THE EMPLOYE'S PRINCIPAL EMPLOYER AND THE 11 EMPLOYE WILL NOTIFY OTHER EMPLOYERS OF A CHANGE IN PRINCIPAL 12 PLACE OF EMPLOYMENT WITHIN TWO WEEKS OF ITS OCCURRENCE. THE 13 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL DEVELOP A 14 UNIFORM EMPLOYE STATEMENT FORM. 15 (VI) POLITICAL SUBDIVISIONS SHALL ADOPT REGULATIONS FOR THE 16 PROCESSING OF REFUND CLAIMS FOR OVERPAID LOCAL SERVICES TAXES 17 FOR ANY CALENDAR YEAR. THE REGULATIONS SHALL BE CONSISTENT WITH 18 53 PA.C.S. §§ 8425 AND 8426. THE DATE OF OVERPAYMENT FOR A LOCAL 19 SERVICES TAX SHALL BE THE DATE THE TAX WAS DEDUCTED AND WITHHELD 20 AT SOURCE. REFUNDS MADE WITHIN SEVENTY-FIVE DAYS OF A REFUND 21 REQUEST OR SEVENTY-FIVE DAYS AFTER THE LAST DAY THE EMPLOYER IS 22 REQUIRED TO REMIT THE LOCAL SERVICES TAX FOR THE LAST QUARTER OF 23 THE CALENDAR YEAR UNDER SECTION 9 OF THIS ACT, WHICHEVER IS 24 LATER, SHALL NOT BE SUBJECT TO INTEREST IMPOSED UNDER 53 PA.C.S. 25 § 8426. POLITICAL SUBDIVISIONS SHALL ONLY PROVIDE REFUNDS FOR 26 AMOUNTS OVERPAID IN A CALENDAR YEAR THAT EXCEED ONE DOLLAR ($1). 27 (VII) THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT 28 MAY PROVIDE SUGGESTED FORMS AND TECHNICAL ASSISTANCE TO 29 FACILITATE THE ADMINISTRATION OF THE LOCAL SERVICES TAX FOR 30 POLITICAL SUBDIVISIONS AND REDUCE THE BURDEN OF IMPLEMENTATION, 20050S0157B1401 - 47 -
1 ACCOUNTING AND COMPLIANCE FOR EMPLOYERS AND TAXPAYERS.
2 (10) TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO
3 MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10)
4 SHALL NOT APPLY TO CITIES OF THE SECOND CLASS.
5 (11) TO LEVY, ASSESS OR COLLECT A TAX ON THE CONSTRUCTION OF
6 OR IMPROVEMENT TO RESIDENTIAL DWELLINGS OR UPON THE APPLICATION
7 FOR OR ISSUANCE OF PERMITS FOR THE CONSTRUCTION OF OR
8 IMPROVEMENTS TO RESIDENTIAL DWELLINGS.
9 (12) TO LEVY, ASSESS AND COLLECT A MERCANTILE OR BUSINESS
10 PRIVILEGE TAX ON GROSS RECEIPTS OR PART THEREOF WHICH ARE: (I)
11 DISCOUNTS ALLOWED TO PURCHASERS AS CASH DISCOUNTS FOR PROMPT
12 PAYMENT OF THEIR BILLS; (II) CHARGES ADVANCED BY A SELLER FOR
13 FREIGHT, DELIVERY OR OTHER TRANSPORTATION FOR THE PURCHASER IN
14 ACCORDANCE WITH THE TERMS OF A CONTRACT OF SALE; (III) RECEIVED
15 UPON THE SALE OF AN ARTICLE OF PERSONAL PROPERTY WHICH WAS
16 ACQUIRED BY THE SELLER AS A TRADE-IN TO THE EXTENT THAT THE
17 GROSS RECEIPTS IN THE SALE OF THE ARTICLE TAKEN IN TRADE DOES
18 NOT EXCEED THE AMOUNT OF TRADE-IN ALLOWANCE MADE IN ACQUIRING
19 SUCH ARTICLE; (IV) REFUNDS, CREDITS OR ALLOWANCES GIVEN TO A
20 PURCHASER ON ACCOUNT OF DEFECTS IN GOODS SOLD OR MERCHANDISE
21 RETURNED; (V) PENNSYLVANIA SALES TAX; (VI) BASED ON THE VALUE OF
22 EXCHANGES OR TRANSFERS BETWEEN ONE SELLER AND ANOTHER SELLER WHO
23 TRANSFERS PROPERTY WITH THE UNDERSTANDING THAT PROPERTY OF AN
24 IDENTICAL DESCRIPTION WILL BE RETURNED AT A SUBSEQUENT DATE;
25 HOWEVER, WHEN SELLERS ENGAGED IN SIMILAR LINES OF BUSINESS
26 EXCHANGE PROPERTY AND ONE OF THEM MAKES PAYMENT TO THE OTHER IN
27 ADDITION TO THE PROPERTY EXCHANGED, THE ADDITIONAL PAYMENT
28 RECEIVED MAY BE INCLUDED IN THE GROSS RECEIPTS OF THE SELLER
29 RECEIVING SUCH ADDITIONAL CASH PAYMENTS; (VII) OF SELLERS FROM
30 SALES TO OTHER SELLERS IN THE SAME LINE WHERE THE SELLER
20050S0157B1401 - 48 -
1 TRANSFERS THE TITLE OR POSSESSION AT THE SAME PRICE FOR WHICH 2 THE SELLER ACQUIRED THE MERCHANDISE; OR (VIII) TRANSFERS BETWEEN 3 ONE DEPARTMENT, BRANCH OR DIVISION OF A CORPORATION OR OTHER 4 BUSINESS ENTITY OF GOODS, WARES AND MERCHANDISE TO ANOTHER 5 DEPARTMENT, BRANCH OR DIVISION OF THE SAME CORPORATION OR 6 BUSINESS ENTITY AND WHICH ARE RECORDED ON THE BOOKS TO REFLECT 7 SUCH INTERDEPARTMENTAL TRANSACTIONS. 8 (13) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS 9 TAX ON MEMBERSHIP, MEMBERSHIP DUES, FEES OR ASSESSMENTS, 10 DONATIONS, CONTRIBUTIONS OR MONETARY CHARGES OF ANY CHARACTER 11 WHATSOEVER PAID BY THE GENERAL PUBLIC, OR A LIMITED OR SELECTED 12 NUMBER THEREOF, FOR SUCH PERSONS TO ENTER INTO ANY PLACE, 13 INDOORS OR OUTDOORS, TO ENGAGE IN ANY ACTIVITIES, THE 14 PREDOMINANT PURPOSE OR NATURE OF WHICH IS EXERCISE, FITNESS, 15 HEALTH MAINTENANCE, IMPROVEMENT OR REHABILITATION, HEALTH OR 16 NUTRITION EDUCATION, OR WEIGHT CONTROL. 17 (14) EXCEPT BY CITIES OF THE SECOND CLASS, TO LEVY, ASSESS 18 OR COLLECT A TAX ON PAYROLL AMOUNTS GENERATED AS A RESULT OF 19 BUSINESS ACTIVITY. 20 (15) EXCEPT BY CITIES OF THE SECOND CLASS IN WHICH A SPORTS 21 STADIUM OR ARENA THAT HAS RECEIVED PUBLIC FUNDS IN CONNECTION 22 WITH ITS CONSTRUCTION OR MAINTENANCE IS LOCATED, TO LEVY, ASSESS 23 AND COLLECT A PUBLICLY FUNDED FACILITY USAGE FEE UPON THOSE 24 NONRESIDENT INDIVIDUALS WHO USE SUCH FACILITY TO ENGAGE IN AN 25 ATHLETIC EVENT OR OTHERWISE RENDER A PERFORMANCE FOR WHICH THEY 26 RECEIVE REMUNERATION. 27 (16) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS 28 TAX ON THE CHARGE IMPOSED UPON A PATRON FOR THE SALE OF 29 ADMISSION TO OR FOR THE PRIVILEGE OF ADMISSION TO A BOWLING 30 ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF BOWLING. 20050S0157B1401 - 49 -
1 SECTION 2. SECTION 7 OF THE ACT, AMENDED AUGUST 11, 1967 2 (P.L.228, NO.83) AND OCTOBER 9, 1967 (P.L.361, NO.160), IS 3 AMENDED TO READ: 4 SECTION 7. FILING OF CERTIFIED COPIES OF ORDINANCES AND 5 RESOLUTIONS.--WHEN AN ORDINANCE OR A RESOLUTION IS FIRST PASSED 6 OR ADOPTED BY A POLITICAL SUBDIVISION IMPOSING A TAX OR LICENSE 7 FEE UNDER THE AUTHORITY OF THIS ACT, AN EXACT PRINTED OR 8 TYPEWRITTEN COPY THEREOF, CERTIFIED TO BY THE SECRETARY OF THE 9 TAXING BODY, SHALL BE FILED WITH THE [DEPARTMENT OF COMMUNITY 10 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT WITHIN 11 FIFTEEN DAYS AFTER THE SAME BECOMES EFFECTIVE. 12 ANY SECRETARY OR PERSON ACTING AS THE CLERK OR SECRETARY OF 13 THE TAXING BODY OF ANY POLITICAL SUBDIVISION DURING THE MEETING 14 AT WHICH AN ORDINANCE OR RESOLUTION IMPOSING A TAX OR LICENSE 15 FEE IS PASSED OR ADOPTED AS HEREIN PROVIDED WHO SHALL FAIL TO 16 FILE THE CERTIFIED COPY OR STATEMENT RELATIVE THERETO WITH THE 17 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND 18 ECONOMIC DEVELOPMENT AS HEREIN REQUIRED, SHALL, UPON SUMMARY 19 CONVICTION THEREOF IN THE COUNTY IN WHICH THE POLITICAL 20 SUBDIVISION IS LOCATED, BE SENTENCED TO PAY A FINE OF NOT LESS 21 THAN FIVE DOLLARS ($5) NOR MORE THAN TWENTY-FIVE DOLLARS ($25), 22 AND THE COSTS OF PROSECUTION. 23 SECTION 3. SECTION 8 OF THE ACT, AMENDED DECEMBER 1, 2004 24 (P.L.1729, NO.222), IS AMENDED TO READ: 25 SECTION 8. LIMITATIONS ON RATES OF SPECIFIC TAXES.--NO TAXES 26 LEVIED UNDER THE PROVISIONS OF THIS ACT SHALL BE LEVIED BY ANY 27 POLITICAL SUBDIVISION ON THE FOLLOWING SUBJECTS EXCEEDING THE 28 RATES SPECIFIED IN THIS SECTION: 29 (1) PER CAPITA, POLL OR OTHER SIMILAR HEAD TAXES, TEN 30 DOLLARS ($10). 20050S0157B1401 - 50 -
1 (2) ON EACH DOLLAR OF THE WHOLE VOLUME OF BUSINESS
2 TRANSACTED BY WHOLESALE DEALERS IN GOODS, WARES AND MERCHANDISE,
3 ONE MILL, BY RETAIL DEALERS IN GOODS, WARES AND MERCHANDISE AND
4 BY PROPRIETORS OF RESTAURANTS OR OTHER PLACES WHERE FOOD, DRINK
5 AND REFRESHMENTS ARE SERVED, ONE AND ONE-HALF MILLS; EXCEPT IN
6 CITIES OF THE SECOND CLASS, WHERE RATES SHALL NOT EXCEED ONE
7 MILL ON WHOLESALE DEALERS AND TWO MILLS ON RETAIL DEALERS AND
8 PROPRIETORS. NO SUCH TAX SHALL BE LEVIED ON THE DOLLAR VOLUME OF
9 BUSINESS TRANSACTED BY WHOLESALE AND RETAIL DEALERS DERIVED FROM
10 THE RESALE OF GOODS, WARES AND MERCHANDISE, TAKEN BY ANY DEALER
11 AS A TRADE-IN OR AS PART PAYMENT FOR OTHER GOODS, WARES AND
12 MERCHANDISE, EXCEPT TO THE EXTENT THAT THE RESALE PRICE EXCEEDS
13 THE TRADE-IN ALLOWANCE.
14 (3) ON WAGES, SALARIES, COMMISSIONS AND OTHER EARNED INCOME
15 OF INDIVIDUALS, ONE PERCENT.
16 (4) ON RETAIL SALES INVOLVING THE TRANSFER OF TITLE OR
17 POSSESSION OF TANGIBLE PERSONAL PROPERTY, TWO PERCENT.
18 (5) ON THE TRANSFER OF REAL PROPERTY, ONE PERCENT.
19 (6) ON ADMISSIONS TO PLACES OF AMUSEMENT, ATHLETIC EVENTS
20 AND THE LIKE, AND ON MOTION PICTURE THEATRES IN CITIES OF THE
21 SECOND CLASS, TEN PERCENT.
22 (7) FLAT RATE OCCUPATION TAXES NOT USING A MILLAGE OR
23 PERCENTAGE AS A BASIS, TEN DOLLARS ($10).
24 (8) [EMERGENCY AND MUNICIPAL] LOCAL SERVICES TAXES, FIFTY-
25 TWO DOLLARS ($52).
26 (9) ON ADMISSIONS TO SKI FACILITIES, TEN PERCENT. THE TAX
27 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
28 PERCENT OF THE COST OF THE LIFT TICKET. THE LIFT TICKET SHALL
29 INCLUDE ALL COSTS OF ADMISSIONS TO THE SKI FACILITY.
30 (10) ON ADMISSIONS TO GOLF COURSES, TEN PERCENT. THE TAX
20050S0157B1401 - 51 -
1 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY 2 PERCENT OF THE GREENS FEE. THE GREENS FEE SHALL INCLUDE ALL 3 COSTS OF ADMISSIONS TO THE GOLF COURSE. 4 (12) ON PAYROLLS, FIFTY-FIVE HUNDREDTHS PERCENT. 5 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AT ANY TIME TWO 6 POLITICAL SUBDIVISIONS SHALL IMPOSE ANY ONE OF THE ABOVE TAXES 7 ON THE SAME PERSON, SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE, 8 LOCATED WITHIN BOTH SUCH POLITICAL SUBDIVISIONS, DURING THE SAME 9 YEAR OR PART OF THE SAME YEAR, UNDER THE AUTHORITY OF THIS ACT 10 THEN THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THE 11 AUTHORITY OF THIS ACT SHALL, DURING THE TIME SUCH DUPLICATION OF 12 THE TAX EXISTS, EXCEPT AS HEREINAFTER OTHERWISE PROVIDED, BE 13 ONE-HALF OF THE RATE, AS ABOVE LIMITED, AND SUCH ONE-HALF RATE 14 SHALL BECOME EFFECTIVE BY VIRTUE OF THE REQUIREMENTS OF THIS ACT 15 FROM THE DAY SUCH DUPLICATION BECOMES EFFECTIVE WITHOUT ANY 16 ACTION ON THE PART OF THE POLITICAL SUBDIVISION IMPOSING THE TAX 17 UNDER THE AUTHORITY OF THIS ACT. WHEN ANY ONE OF THE ABOVE TAXES 18 HAS BEEN LEVIED UNDER THE PROVISIONS OF THIS ACT BY ONE 19 POLITICAL SUBDIVISION AND A SUBSEQUENT LEVY IS MADE EITHER FOR 20 THE FIRST TIME OR IS REVIVED AFTER A LAPSE OF TIME BY ANOTHER 21 POLITICAL SUBDIVISION ON THE SAME PERSON, SUBJECT, BUSINESS, 22 TRANSACTION OR PRIVILEGE AT A RATE THAT WOULD MAKE THE COMBINED 23 LEVIES EXCEED THE LIMIT ALLOWED BY THIS SUBDIVISION, THE TAX OF 24 THE SECOND POLITICAL SUBDIVISION SHALL NOT BECOME EFFECTIVE 25 UNTIL THE END OF THE FISCAL YEAR FOR WHICH THE PRIOR TAX WAS 26 LEVIED, UNLESS: 27 (1) NOTICE INDICATING ITS INTENTION TO MAKE SUCH LEVY IS 28 GIVEN TO THE FIRST TAXING BODY BY THE SECOND TAXING BODY AS 29 FOLLOWS: (I) WHEN THE NOTICE IS GIVEN TO A SCHOOL DISTRICT IT 30 SHALL BE GIVEN AT LEAST FORTY-FIVE DAYS PRIOR TO THE LAST DAY 20050S0157B1401 - 52 -
1 FIXED BY LAW FOR THE LEVY OF ITS SCHOOL TAXES; (II) WHEN GIVEN 2 TO ANY OTHER POLITICAL SUBDIVISION IT SHALL BE PRIOR TO THE 3 FIRST DAY OF JANUARY IMMEDIATELY PRECEDING, OR IF A LAST DAY FOR 4 THE ADOPTION OF THE BUDGET IS FIXED BY LAW, AT LEAST FORTY-FIVE 5 DAYS PRIOR TO SUCH LAST DAY; OR 6 (2) UNLESS THE FIRST TAXING BODY SHALL INDICATE BY 7 APPROPRIATE RESOLUTION ITS DESIRE TO WAIVE NOTICE REQUIREMENTS 8 IN WHICH CASE THE LEVY OF THE SECOND TAXING BODY SHALL BECOME 9 EFFECTIVE ON SUCH DATE AS MAY BE AGREED UPON BY THE TWO TAXING 10 BODIES. 11 IT IS THE INTENT AND PURPOSE OF THIS PROVISION TO LIMIT RATES 12 OF TAXES REFERRED TO IN THIS SECTION SO THAT THE ENTIRE BURDEN 13 OF ONE TAX ON A PERSON, SUBJECT, BUSINESS, TRANSACTION OR 14 PRIVILEGE SHALL NOT EXCEED THE LIMITATIONS PRESCRIBED IN THIS 15 SECTION: PROVIDED, HOWEVER, THAT ANY TWO POLITICAL SUBDIVISIONS 16 WHICH IMPOSE ANY ONE OF THE ABOVE TAXES, ON THE SAME PERSON, 17 SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE DURING THE SAME YEAR 18 OR PART OF THE SAME YEAR MAY AGREE AMONG THEMSELVES THAT, 19 INSTEAD OF LIMITING THEIR RESPECTIVE RATES TO ONE-HALF OF THE 20 MAXIMUM RATE HEREIN PROVIDED, THEY WILL IMPOSE RESPECTIVELY 21 DIFFERENT RATES, THE TOTAL OF WHICH SHALL NOT EXCEED THE MAXIMUM 22 RATE AS ABOVE PERMITTED. 23 NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, ANY CITY OF 24 THE SECOND CLASS A MAY ENACT A TAX UPON WAGES, SALARIES, 25 COMMISSIONS AND OTHER EARNED INCOME OF INDIVIDUALS RESIDENT 26 THEREIN, NOT EXCEEDING ONE PERCENT, EVEN THOUGH A SCHOOL 27 DISTRICT LEVIES A SIMILAR TAX ON THE SAME PERSON PROVIDED THAT 28 THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT. [IN THE 29 CASE OF DUPLICATION OF EMERGENCY AND MUNICIPAL SERVICES TAXES BY 30 BOTH A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT OF THE 20050S0157B1401 - 53 -
1 FIRST CLASS A, AND ANOTHER TAXING BODY, THE SCHOOL DISTRICT'S 2 SHARE OF THE TAX SHALL NOT EXCEED THE AMOUNT OF A TAX ON THE 3 PRIVILEGE OF ENGAGING IN AN OCCUPATION COLLECTED BY THE SCHOOL 4 DISTRICT AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH. IN THE CASE 5 WHERE A SCHOOL DISTRICT DID NOT LEVY A TAX ON THE PRIVILEGE OF 6 ENGAGING IN AN OCCUPATION ON THE EFFECTIVE DATE OF THIS 7 PARAGRAPH, THE SCHOOL DISTRICT MAY IMPOSE A FUTURE LEVY NOT TO 8 EXCEED FIVE DOLLARS ($5). A SCHOOL DISTRICT OF THE FIRST CLASS A 9 SHALL NOT LEVY, ASSESS OR COLLECT AN EMERGENCY AND MUNICIPAL 10 SERVICES TAX.] 11 SECTION 4. SECTION 9 OF THE ACT, AMENDED DECEMBER 12, 1968 12 (P.L.1203, NO.377), IS AMENDED TO READ: 13 SECTION 9. REGISTER FOR EARNED INCOME AND [OCCUPATIONAL 14 PRIVILEGE] LOCAL SERVICES TAXES.--IT SHALL BE THE DUTY OF THE 15 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND 16 ECONOMIC DEVELOPMENT TO HAVE AVAILABLE AN OFFICIAL CONTINUING 17 REGISTER SUPPLEMENTED ANNUALLY OF ALL EARNED INCOME AND 18 [OCCUPATIONAL PRIVILEGE] LOCAL SERVICES TAXES LEVIED UNDER 19 AUTHORITY OF THIS ACT. THE REGISTER AND ITS SUPPLEMENTS, 20 HEREINAFTER REFERRED TO AS THE REGISTER, SHALL LIST SUCH 21 JURISDICTIONS LEVYING EARNED INCOME [AND/OR OCCUPATIONAL 22 PRIVILEGE] AND LOCAL SERVICES TAXES, THE RATE OF THE TAX AS 23 STATED IN THE TAX LEVYING ORDINANCE OR RESOLUTION, AND THE 24 EFFECTIVE RATE ON RESIDENT AND NONRESIDENT TAXPAYERS, IF 25 DIFFERENT FROM THE STATED RATE BECAUSE OF A COTERMINOUS LEVY, 26 THE NAME AND ADDRESS OF THE OFFICER RESPONSIBLE FOR 27 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM 28 INFORMATION, FORMS FOR REPORTING AND COPIES OF RULES AND 29 REGULATIONS ARE AVAILABLE. WITH EACH JURISDICTION LISTED, ALL 30 JURISDICTIONS MAKING COTERMINOUS LEVIES SHALL ALSO BE NOTED AND 20050S0157B1401 - 54 -
1 THEIR TAX RATES SHOWN. 2 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE 3 SECRETARY OF EACH TAXING BODY TO THE [DEPARTMENT OF COMMUNITY 4 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT IN 5 SUCH MANNER AND ON SUCH FORMS AS THE [DEPARTMENT OF COMMUNITY 6 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT MAY 7 PRESCRIBE. THE INFORMATION MUST BE RECEIVED BY THE [DEPARTMENT 8 OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC 9 DEVELOPMENT BY CERTIFIED MAIL NOT LATER THAN MAY 31 OF EACH YEAR 10 TO SHOW NEW TAX ENACTMENTS, REPEALS AND CHANGES. FAILURE TO 11 COMPLY WITH THIS DATE FOR FILING MAY RESULT IN THE OMISSION OF 12 THE LEVY FROM THE REGISTER FOR THAT YEAR. FAILURE OF THE 13 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND 14 ECONOMIC DEVELOPMENT TO RECEIVE INFORMATION OF TAXES CONTINUED 15 WITHOUT CHANGE MAY BE CONSTRUED BY THE DEPARTMENT TO MEAN THAT 16 THE INFORMATION CONTAINED IN THE PREVIOUS REGISTER REMAINS IN 17 FORCE. 18 THE [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY 19 AND ECONOMIC DEVELOPMENT SHALL HAVE THE REGISTER WITH SUCH 20 ANNUAL SUPPLEMENTS AS MAY BE REQUIRED BY NEW TAX ENACTMENTS, 21 REPEALS OR CHANGES AVAILABLE UPON REQUEST NOT LATER THAN JULY 1 22 OF EACH YEAR. THE EFFECTIVE PERIOD FOR EACH REGISTER SHALL BE 23 FROM JULY 1 OF THE YEAR IN WHICH IT IS ISSUED TO JUNE 30 OF THE 24 FOLLOWING YEAR. 25 EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL ORDINANCE TO 26 WITHHOLD FROM THE WAGES, SALARIES, COMMISSIONS OR OTHER 27 COMPENSATION OF THEIR EMPLOYES ANY TAX IMPOSED UNDER THE 28 PROVISIONS OF THIS ACT, WHICH IS NOT LISTED IN THE REGISTER, OR 29 MAKE REPORTS OF WAGES, SALARIES, COMMISSIONS OR OTHER 30 COMPENSATION IN CONNECTION WITH TAXES NOT SO LISTED: PROVIDED, 20050S0157B1401 - 55 -
1 THAT IF THE REGISTER IS NOT AVAILABLE BY JULY 1, THE REGISTER OF 2 THE PREVIOUS YEAR SHALL CONTINUE TEMPORARILY IN EFFECT FOR AN 3 ADDITIONAL PERIOD NOT TO EXCEED ONE YEAR. THE PROVISIONS OF THIS 4 SECTION SHALL NOT AFFECT THE LIABILITY OF ANY TAXPAYER FOR TAXES 5 LAWFULLY IMPOSED UNDER THIS ACT. 6 ORDINANCES OR RESOLUTIONS IMPOSING EARNED INCOME OR 7 [OCCUPATIONAL PRIVILEGE] LOCAL SERVICES TAXES UNDER AUTHORITY OF 8 THIS ACT MAY CONTAIN PROVISIONS REQUIRING EMPLOYERS DOING 9 BUSINESS WITHIN THE JURISDICTION OF THE POLITICAL SUBDIVISION 10 IMPOSING THE TAX TO WITHHOLD THE TAX FROM THE COMPENSATION OF 11 THOSE OF THEIR EMPLOYES WHO ARE SUBJECT TO THE TAX: PROVIDED, 12 THAT NO EMPLOYER SHALL BE HELD LIABLE FOR FAILURE TO WITHHOLD 13 EARNED INCOME TAXES OR FOR THE PAYMENT OF SUCH WITHHELD TAX 14 MONEY TO A POLITICAL SUBDIVISION OTHER THAN THE POLITICAL 15 SUBDIVISION ENTITLED TO RECEIVE SUCH MONEY IF SUCH FAILURE TO 16 WITHHOLD OR SUCH INCORRECT TRANSMITTAL OF WITHHELD TAXES ARISES 17 FROM INCORRECT INFORMATION AS TO THE EMPLOYE'S PLACE OF 18 RESIDENCE SUBMITTED BY THE EMPLOYE: AND PROVIDED FURTHER, THAT 19 [EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL ORDINANCE TO 20 WITHHOLD FROM COMPENSATION FOR ANY ONE OF THEIR EMPLOYES FOR THE 21 OCCUPATIONAL PRIVILEGE TAX MORE THAN ONE TIME IN ANY FISCAL 22 PERIOD:] NO EMPLOYER SHALL BE HELD LIABLE FOR FAILURE TO 23 WITHHOLD THE LOCAL SERVICES TAX OR FOR THE PAYMENT OF THE 24 WITHHELD TAX MONEY TO A POLITICAL SUBDIVISION IF THE FAILURE TO 25 WITHHOLD TAXES ARISES FROM INCORRECT INFORMATION SUBMITTED BY 26 THE EMPLOYE AS TO THE EMPLOYE'S PLACE OR PLACES OF EMPLOYMENT, 27 THE EMPLOYE'S PRINCIPAL OFFICE OR WHERE THE EMPLOYE IS 28 PRINCIPALLY EMPLOYED: AND PROVIDED FURTHER, THAT AN EMPLOYER 29 SHALL NOT BE LIABLE FOR PAYMENT OF THE LOCAL SERVICES TAX IN AN 30 AMOUNT EXCEEDING THE AMOUNT WITHHELD BY THE EMPLOYER IF THE 20050S0157B1401 - 56 -
1 EMPLOYER COMPLIES WITH THE PROVISIONS OF SECTION 2(9) OF THIS 2 ACT AND REMITS THE AMOUNT SO WITHHELD IN ACCORDANCE WITH THIS 3 SECTION: AND PROVIDED FURTHER, THAT THE DEPARTMENT OF COMMUNITY 4 AND ECONOMIC DEVELOPMENT MAY PROVIDE SUGGESTED FORMS AND 5 TECHNICAL ASSISTANCE TO FACILITATE THE ADMINISTRATION OF THE 6 LOCAL SERVICES TAX FOR POLITICAL SUBDIVISIONS AND REDUCE THE 7 BURDEN OF IMPLEMENTATION, ACCOUNTING AND COMPLIANCE FOR 8 EMPLOYERS AND TAXPAYERS: AND PROVIDED FURTHER, THAT THE 9 [OCCUPATIONAL PRIVILEGE] LOCAL SERVICES TAX SHALL BE APPLICABLE 10 TO EMPLOYMENT IN THE PERIOD BEGINNING JANUARY 1, OF THE CURRENT 11 YEAR AND ENDING DECEMBER 31 OF THE CURRENT YEAR, EXCEPT THAT 12 TAXES IMPOSED FOR THE FIRST TIME SHALL BECOME EFFECTIVE FROM THE 13 DATE SPECIFIED IN THE ORDINANCE OR RESOLUTION, AND THE TAX SHALL 14 CONTINUE IN FORCE ON A CALENDAR YEAR BASIS[.]: AND PROVIDED 15 FURTHER, THAT EMPLOYERS SHALL BE REQUIRED TO REMIT THE LOCAL 16 SERVICES TAXES THIRTY DAYS AFTER THE END OF EACH QUARTER OF A 17 CALENDAR YEAR. 18 SECTION 5. SECTION 19 OF THE ACT, AMENDED OCTOBER 4, 1978 19 (P.L.930, NO.177), IS AMENDED TO READ: 20 SECTION 19. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION, 21 OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL SERVICES, LOCAL 22 SERVICES AND EARNED INCOME TAXES FROM EMPLOYERS, ETC.--THE TAX 23 COLLECTOR SHALL DEMAND, RECEIVE AND COLLECT FROM ALL 24 CORPORATIONS, POLITICAL SUBDIVISIONS, ASSOCIATIONS, COMPANIES, 25 FIRMS OR INDIVIDUALS, EMPLOYING PERSONS OWING DELINQUENT PER 26 CAPITA, OR OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND 27 MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES, OR 28 WHOSE SPOUSE OWES DELINQUENT PER CAPITA, OCCUPATION, 29 OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL SERVICES, LOCAL 30 SERVICES AND EARNED INCOME TAXES, OR HAVING IN POSSESSION UNPAID 20050S0157B1401 - 57 -
1 COMMISSIONS OR EARNINGS BELONGING TO ANY PERSON OR PERSONS OWING 2 DELINQUENT PER CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, 3 EMERGENCY AND MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED 4 INCOME TAXES, OR WHOSE SPOUSE OWES DELINQUENT PER CAPITA, 5 OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL 6 SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES, UPON THE 7 PRESENTATION OF A WRITTEN NOTICE AND DEMAND CERTIFYING THAT THE 8 INFORMATION CONTAINED THEREIN IS TRUE AND CORRECT AND CONTAINING 9 THE NAME OF THE TAXABLE OR THE SPOUSE THEREOF AND THE AMOUNT OF 10 TAX DUE. UPON THE PRESENTATION OF SUCH WRITTEN NOTICE AND 11 DEMAND, IT SHALL BE THE DUTY OF ANY SUCH CORPORATION, POLITICAL 12 SUBDIVISION, ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL TO DEDUCT 13 FROM THE WAGES, COMMISSIONS OR EARNINGS OF SUCH INDIVIDUAL 14 EMPLOYES, THEN OWING OR THAT SHALL WITHIN SIXTY DAYS THEREAFTER 15 BECOME DUE, OR FROM ANY UNPAID COMMISSIONS OR EARNINGS OF ANY 16 SUCH TAXABLE IN ITS OR HIS POSSESSION, OR THAT SHALL WITHIN 17 SIXTY DAYS THEREAFTER COME INTO ITS OR HIS POSSESSION, A SUM 18 SUFFICIENT TO PAY THE RESPECTIVE AMOUNT OF THE DELINQUENT PER 19 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND 20 MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES AND 21 COSTS, SHOWN UPON THE WRITTEN NOTICE OR DEMAND, AND TO PAY THE 22 SAME TO THE TAX COLLECTOR OF THE TAXING DISTRICT IN WHICH SUCH 23 DELINQUENT TAX WAS LEVIED WITHIN SIXTY DAYS AFTER SUCH NOTICE 24 SHALL HAVE BEEN GIVEN. NO MORE THAN TEN PERCENT OF THE WAGES, 25 COMMISSIONS OR EARNINGS OF THE DELINQUENT TAXPAYER OR SPOUSE 26 THEREOF MAY BE DEDUCTED AT ANY ONE TIME FOR DELINQUENT PER 27 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND 28 MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES AND 29 COSTS. SUCH CORPORATION, POLITICAL SUBDIVISION, ASSOCIATION, 30 FIRM OR INDIVIDUAL SHALL BE ENTITLED TO DEDUCT FROM THE MONEYS 20050S0157B1401 - 58 -
1 COLLECTED FROM EACH EMPLOYE THE COSTS INCURRED FROM THE EXTRA 2 BOOKKEEPING NECESSARY TO RECORD SUCH TRANSACTIONS, NOT EXCEEDING 3 TWO PERCENT OF THE AMOUNT OF MONEY SO COLLECTED AND PAID OVER TO 4 THE TAX COLLECTOR. UPON THE FAILURE OF ANY SUCH CORPORATION, 5 POLITICAL SUBDIVISION, ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL 6 TO DEDUCT THE AMOUNT OF SUCH TAXES OR TO PAY THE SAME OVER TO 7 THE TAX COLLECTOR, LESS THE COST OF BOOKKEEPING INVOLVED IN SUCH 8 TRANSACTION, AS HEREIN PROVIDED, WITHIN THE TIME HEREBY 9 REQUIRED, SUCH CORPORATION, POLITICAL SUBDIVISION, ASSOCIATION, 10 COMPANY, FIRM OR INDIVIDUAL SHALL FORFEIT AND PAY THE AMOUNT OF 11 SUCH TAX FOR EACH SUCH TAXABLE WHOSE TAXES ARE NOT WITHHELD AND 12 PAID OVER, OR THAT ARE WITHHELD AND NOT PAID OVER TOGETHER WITH 13 A PENALTY OF TEN PERCENT ADDED THERETO, TO BE RECOVERED BY AN 14 ACTION OF ASSUMPSIT IN A SUIT TO BE INSTITUTED BY THE TAX 15 COLLECTOR, OR BY THE PROPER AUTHORITIES OF THE TAXING DISTRICT, 16 AS DEBTS OF LIKE AMOUNT ARE NOW BY LAW RECOVERABLE, EXCEPT THAT 17 SUCH PERSON SHALL NOT HAVE THE BENEFIT OF ANY STAY OF EXECUTION 18 OR EXEMPTION LAW. THE TAX COLLECTOR SHALL NOT PROCEED AGAINST A 19 SPOUSE OR HIS EMPLOYER UNTIL HE HAS PURSUED COLLECTION REMEDIES 20 AGAINST THE DELINQUENT TAXPAYER AND HIS EMPLOYER UNDER THIS 21 SECTION. 22 SECTION 6. SECTION 20 OF THE ACT IS AMENDED TO READ: 23 SECTION 20. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION, 24 OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL SERVICES, LOCAL 25 SERVICES AND EARNED INCOME TAXES FROM THE COMMONWEALTH.--UPON 26 PRESENTATION OF A WRITTEN NOTICE AND DEMAND UNDER OATH OR 27 AFFIRMATION, TO THE STATE TREASURER OR ANY OTHER FISCAL OFFICER 28 OF THE STATE, OR ITS BOARDS, AUTHORITIES, AGENCIES OR 29 COMMISSIONS, IT SHALL BE THE DUTY OF THE TREASURER OR OFFICER TO 30 DEDUCT FROM THE WAGES THEN OWING, OR THAT SHALL WITHIN SIXTY 20050S0157B1401 - 59 -
1 DAYS THEREAFTER BECOME DUE TO ANY EMPLOYE, A SUM SUFFICIENT TO 2 PAY THE RESPECTIVE AMOUNT OF THE DELINQUENT PER CAPITA, 3 OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL 4 SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES AND COSTS SHOWN 5 ON THE WRITTEN NOTICE. THE SAME SHALL BE PAID TO THE TAX 6 COLLECTOR OF THE TAXING DISTRICT IN WHICH SAID DELINQUENT TAX 7 WAS LEVIED WITHIN SIXTY DAYS AFTER SUCH NOTICE SHALL HAVE BEEN 8 GIVEN. 9 SECTION 7. SECTION 22.1 OF THE ACT, ADDED NOVEMBER 30, 2004 10 (P.L.1520, NO.192), IS AMENDED TO READ: 11 SECTION 22.1. COSTS OF COLLECTION OF DELINQUENT PER CAPITA, 12 OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL 13 SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES.--(A) A PERSON, 14 PUBLIC EMPLOYE OR PRIVATE AGENCY DESIGNATED BY A GOVERNING BODY 15 OF A POLITICAL SUBDIVISION TO COLLECT AND ADMINISTER A PER 16 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND 17 MUNICIPAL SERVICES, LOCAL SERVICES OR EARNED INCOME TAX MAY 18 IMPOSE AND COLLECT THE REASONABLE COSTS INCURRED TO PROVIDE 19 NOTICES OF DELINQUENCY OR TO IMPLEMENT SIMILAR PROCEDURES 20 UTILIZED TO COLLECT DELINQUENT TAXES FROM A TAXPAYER AS APPROVED 21 BY THE GOVERNING BODY OF THE POLITICAL SUBDIVISION. REASONABLE 22 COSTS COLLECTED MAY BE RETAINED BY THE PERSON, PUBLIC EMPLOYE OR 23 PRIVATE AGENCY DESIGNATED TO COLLECT THE TAX AS AGREED TO BY THE 24 GOVERNING BODY OF THE POLITICAL SUBDIVISION. AN ITEMIZED 25 ACCOUNTING OF ALL COSTS COLLECTED SHALL BE REMITTED TO THE 26 POLITICAL SUBDIVISION ON AN ANNUAL BASIS. 27 (B) COSTS RELATED TO THE COLLECTION OF UNPAID PER CAPITA, 28 OCCUPATION [OR], OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL 29 SERVICES OR LOCAL SERVICES TAXES MAY ONLY BE ASSESSED, LEVIED 30 AND COLLECTED FOR FIVE YEARS FROM THE LAST DAY OF THE CALENDAR 20050S0157B1401 - 60 -
1 YEAR IN WHICH THE TAX WAS DUE. 2 (C) A DELINQUENT TAXPAYER MAY NOT BRING AN ACTION FOR 3 REIMBURSEMENT, REFUND OR ELIMINATION OF REASONABLE COSTS OF 4 COLLECTION ASSESSED OR IMPOSED PRIOR TO THE EFFECTIVE DATE OF 5 THIS SECTION. ADDITIONAL COSTS MAY NOT BE ASSESSED ON DELINQUENT 6 TAXES COLLECTED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION. 7 SECTION 8. SECTIONS 22.4 AND 22.5 OF THE ACT, ADDED DECEMBER 8 1, 2004 (P.L.1729, NO.222), ARE AMENDED TO READ: 9 [SECTION 22.4. EMERGENCY AND MUNICIPAL SERVICES TAXES.--ANY 10 REFERENCE IN ANY ACT OR LAW TO AN OCCUPATIONAL PRIVILEGE TAX 11 SHALL MEAN THE EMERGENCY AND MUNICIPAL SERVICES TAXES AS 12 PROVIDED FOR IN THIS ACT. 13 SECTION 22.5. RESTRICTED USE.--(A) ANY MUNICIPALITY 14 DERIVING FUNDS FROM THE EMERGENCY AND MUNICIPAL SERVICES TAX MAY 15 ONLY USE THE FUNDS FOR: 16 (1) POLICE, FIRE AND/OR EMERGENCY SERVICES; 17 (2) ROAD CONSTRUCTION AND/OR MAINTENANCE; OR 18 (3) REDUCTION OF PROPERTY TAXES. 19 (B) FOR THE PURPOSE OF THE EMERGENCY AND MUNICIPAL SERVICES 20 TAX, THE TERM MUNICIPALITY DOES NOT INCLUDE A SCHOOL DISTRICT.] 21 SECTION 9. THE ACT IS AMENDED BY ADDING A SECTION TO READ: 22 SECTION 22.6. RESTRICTED USE.--(A) ANY MUNICIPALITY 23 DERIVING FUNDS FROM THE LOCAL SERVICES TAX SHALL USE NO LESS 24 THAN TWENTY-FIVE PERCENT OF THE FUNDS FOR POLICE, FIRE AND 25 EMERGENCY SERVICES. 26 (B) FOR THE PURPOSE OF THE LOCAL SERVICES TAX, THE TERM 27 "MUNICIPALITY" DOES NOT INCLUDE A SCHOOL DISTRICT. 28 SECTION 10. ANY ORDINANCE OR RESOLUTION PROVIDING FOR THE 29 LEVYING, ASSESSMENT OR COLLECTION OF A TAX ON INDIVIDUALS FOR 30 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION WHICH HAS BEEN 20050S0157B1401 - 61 -
1 ENACTED BY A POLITICAL SUBDIVISION PRIOR TO DECEMBER 1, 2004, 2 SHALL CONTINUE IN FULL FORCE AND EFFECT, WITHOUT REENACTMENT, AS 3 IF SUCH TAX HAD BEEN LEVIED, ASSESSED OR COLLECTED AS A LOCAL 4 SERVICES TAX UNDER SECTION 2(9) OF THE ACT. ALL REFERENCES IN 5 ANY ORDINANCE OR RESOLUTION TO A TAX ON THE PRIVILEGE OF 6 ENGAGING IN AN OCCUPATION SHALL BE DEEMED TO BE A REFERENCE TO A 7 LOCAL SERVICES TAX FOR THE PURPOSES OF THE ACT. 8 SECTION 11. ALL EMERGENCY AND LOCAL SERVICES TAXES LEVIED 9 FOR THE CALENDAR YEAR BEGINNING ON JANUARY 1, 2005, SHALL REMAIN 10 IN EFFECT FOR THE CALENDAR YEAR BEGINNING ON JANUARY 1, 2005, 11 AND ENDING DECEMBER 31, 2005, AND ARE NOT OTHERWISE ALTERED. 12 SECTION 12. THE AMENDMENT OR ADDITION OF THE FOLLOWING 13 PROVISIONS SHALL APPLY TO TAXES LEVIED FOR CALENDAR YEAR 2006 14 AND EACH YEAR THEREAFTER: 15 (1) THE AMENDMENT OF SECTION 2 OF THE ACT. 16 (2) THE AMENDMENT OF SECTION 8 OF THE ACT. 17 (3) THE AMENDMENT OF SECTION 9 OF THE ACT, EXCEPT FOR 18 ANY EDITORIAL AMENDMENT CHANGING THE REFERENCE FROM THE 19 DEPARTMENT OF COMMUNITY AFFAIRS TO THE DEPARTMENT OF 20 COMMUNITY AND ECONOMIC DEVELOPMENT. 21 (4) THE AMENDMENT OF SECTION 19 OF THE ACT. 22 (5) THE AMENDMENT OF SECTION 20 OF THE ACT. 23 (6) THE AMENDMENT OF SECTION 22.1 OF THE ACT. 24 (7) THE AMENDMENT OF SECTION 22.4 OF THE ACT. 25 (8) THE AMENDMENT OF SECTION 22.5 OF THE ACT. 26 (9) THE ADDITION OF SECTION 22.6 OF THE ACT. 27 SECTION 13. REPEALS ARE AS FOLLOWS: 28 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER 29 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE AMENDMENT OF 30 SECTION 2(9) OF THE ACT. 20050S0157B1401 - 62 -
1 (2) SECTION 6 OF THE ACT OF DECEMBER 1, 2004 (P.L.1729, 2 NO.222), ENTITLED "AN ACT AMENDING THE ACT OF DECEMBER 31, 3 1965 (P.L.1257, NO.511), ENTITLED 'AN ACT EMPOWERING CITIES 4 OF THE SECOND CLASS, CITIES OF THE SECOND CLASS A, CITIES OF 5 THE THIRD CLASS, BOROUGHS, TOWNS, TOWNSHIPS OF THE FIRST 6 CLASS, TOWNSHIPS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE 7 SECOND CLASS, SCHOOL DISTRICTS OF THE THIRD CLASS AND SCHOOL 8 DISTRICTS OF THE FOURTH CLASS INCLUDING INDEPENDENT SCHOOL 9 DISTRICTS, TO LEVY, ASSESS, COLLECT OR TO PROVIDE FOR THE 10 LEVYING, ASSESSMENT AND COLLECTION OF CERTAIN TAXES SUBJECT 11 TO MAXIMUM LIMITATIONS FOR GENERAL REVENUE PURPOSES; 12 AUTHORIZING THE ESTABLISHMENT OF BUREAUS AND THE APPOINTMENT 13 AND COMPENSATION OF OFFICERS, AGENCIES AND EMPLOYES TO ASSESS 14 AND COLLECT SUCH TAXES; PROVIDING FOR JOINT COLLECTION OF 15 CERTAIN TAXES, PRESCRIBING CERTAIN DEFINITIONS AND OTHER 16 PROVISIONS FOR TAXES LEVIED AND ASSESSED UPON EARNED INCOME, 17 PROVIDING FOR ANNUAL AUDITS AND FOR COLLECTION OF DELINQUENT 18 TAXES, AND PERMITTING AND REQUIRING PENALTIES TO BE IMPOSED 19 AND ENFORCED, INCLUDING PENALTIES FOR DISCLOSURE OF 20 CONFIDENTIAL INFORMATION, PROVIDING AN APPEAL FROM THE 21 ORDINANCE OR RESOLUTION LEVYING SUCH TAXES TO THE COURT OF 22 QUARTER SESSIONS AND TO THE SUPREME COURT AND SUPERIOR 23 COURT,' FURTHER PROVIDING FOR DELEGATION OF TAXING POWERS AND 24 RESTRICTIONS THEREON; PROVIDING FOR NONRESIDENT SPORTS 25 FACILITY USAGE FEE, FOR PARKING TAX RATES AND FOR PAYROLL 26 TAXES; FURTHER PROVIDING FOR LIMITATIONS ON RATES OF SPECIFIC 27 TAXES AND FOR THE APPOINTMENT OF A SINGLE COLLECTOR OF TAXES; 28 FURTHER PROVIDING FOR THE APPLICABILITY OF PETITIONS UNDER 29 THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE 30 MUNICIPALITIES FINANCIAL RECOVERY ACT; AND MAKING A REPEAL," 20050S0157B1401 - 63 -
1 IS REPEALED. 2 SECTION 14. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. A24L53SFL/20050S0157B1401 - 64 -