PRINTER'S NO. 428
No. 415 Session of 1999
INTRODUCED BY GREENLEAF, FUMO, COSTA, HOLL AND WAUGH,
FEBRUARY 22, 1999
REFERRED TO FINANCE, FEBRUARY 22, 1999
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 regulating authority to levy business taxes.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Section 2(12) of the act of December 31, 1965
26 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
27 October 11, 1984 (P.L.885, No.172), is amended to read:
1 Section 2. Delegation of Taxing Powers and Restrictions
2 Thereon.--The duly constituted authorities of the following
3 political subdivisions, cities of the second class, cities of
4 the second class A, cities of the third class, boroughs, towns,
5 townships of the first class, townships of the second class,
6 school districts of the second class, school districts of the
7 third class, and school districts of the fourth class, in all
8 cases including independent school districts, may, in their
9 discretion, by ordinance or resolution, for general revenue
10 purposes, levy, assess and collect or provide for the levying,
11 assessment and collection of such taxes as they shall determine
12 on persons, transactions, occupations, privileges, subjects and
13 personal property within the limits of such political
14 subdivisions, and upon the transfer of real property, or of any
15 interest in real property, situate within the political
16 subdivision levying and assessing the tax, regardless of where
17 the instruments making the transfers are made, executed or
18 delivered or where the actual settlements on such transfer take
19 place. The taxing authority may provide that the transferee
20 shall remain liable for any unpaid realty transfer taxes imposed
21 by virtue of this act. Each local taxing authority may, by
22 ordinance or resolution, exempt any person whose total income
23 from all sources is less than five thousand dollars ($5,000) per
24 annum from the per capita or similar head tax, occupation tax
25 and occupational privilege tax, or earned income tax, or any
26 portion thereof, and may adopt regulations for the processing of
27 claims for exemptions. Such local authorities shall not have
28 authority by virtue of this act:
29 * * *
30 (12) To levy, assess and collect a mercantile or business
19990S0415B0428 - 2 -
1 privilege tax on gross receipts or part thereof which are: (i)
2 discounts allowed to purchasers as cash discounts for prompt
3 payment of their bills; (ii) charges advanced by a seller for
4 freight, delivery or other transportation for the purchaser in
5 accordance with the terms of a contract of sale; (iii) received
6 upon the sale of an article of personal property which was
7 acquired by the seller as a trade-in to the extent that the
8 gross receipts in the sale of the article taken in trade does
9 not exceed the amount of trade-in allowance made in acquiring
10 such article; (iv) refunds, credits or allowances given to a
11 purchaser on account of defects in goods sold or merchandise
12 returned; (v) Pennsylvania sales tax; (vi) based on the value of
13 exchanges or transfers between one seller and another seller who
14 transfers property with the understanding that property of an
15 identical description will be returned at a subsequent date;
16 however, when sellers engaged in similar lines of business
17 exchange property and one of them makes payment to the other in
18 addition to the property exchanged, the additional payment
19 received may be included in the gross receipts of the seller
20 receiving such additional cash payments; (vii) of sellers from
21 sales to other sellers in the same line where the seller
22 transfers the title or possession at the same price for which
23 the seller acquired the merchandise; or (viii) transfers between
24 one department, branch or division of a corporation or other
25 business entity of goods, wares and merchandise to another
26 department, branch or division of the same corporation or
27 business entity and which are recorded on the books to reflect
28 such interdepartmental transactions. A political subdivision
29 shall not have the authority to levy, assess and collect a
30 mercantile or business privilege tax on the gross receipts of a
19990S0415B0428 - 3 -
1 business entity which does not have a place of business in the
2 political subdivision. For the purposes of this clause, a place
3 of business shall include, but not be limited to, an office,
4 factory, workshop, branch or warehouse.
5 * * *
6 Section 2. This act shall take effect in 60 days.
A22L53DMS/19990S0415B0428 - 4 -