PRINTER'S NO. 624
No. 592 Session of 1979
INTRODUCED BY DWYER, LOEPER, PECORA, CORMAN, KUSSE, STAPLETON
AND MANBECK, MARCH 27, 1979
REFERRED TO EDUCATION, MARCH 27, 1979
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," authorizing certain referenda
6 reducing school districts' authority to levy taxes on real
7 property and providing for replacement of lost revenues by an
8 additional school tax upon wages, salaries, commissions and
9 other earned income of individuals.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. The act of March 10, 1949 (P.L.30, No.14), known
13 as the "Public School Code of 1949," is amended by adding a
14 section to read:
15 Section 602.1. Referendum to Replace Property Taxes with
16 Earned Income Taxes.--A school district, upon approval by its
17 electorate of a referendum initiated by either a majority vote
18 of the school directors or upon petition signed by electors of
19 the school district equal in number to at least twenty-five per
20 centum (25%) of the entire vote cast for all candidates for
21 Governor at the last preceding gubernatorial election, shall
1 reduce its real property tax levy and shall impose a tax for
2 school purposes upon wages, salaries, commissions and other
3 earned income of individuals in addition to the tax authorized
4 by section 2, act of December 31, 1965 (P.L.1257, No.511), known
5 as "The Local Tax Enabling Act," at a rate which will produce
6 earned income tax revenues sufficient to replace the real
7 property tax revenues which will not be available because of
8 approval of the referendum. A certified copy of the school
9 directors' resolution or the original petition shall be
10 presented to the county board of elections in all counties in
11 which the school district is situated. Such referendum shall be
12 held in the same manner as provided by law for the approval of
13 the incurring of indebtedness by referendum. The referendum
14 shall provide for a twenty-five per centum (25%), fifty per
15 centum (50%), seventy-five per centum (75%) or one hundred per
16 centum (100%) reduction in the taxes levied upon real property
17 by the school districts. Similarly, a referendum may be
18 initiated to modify or reverse the school directors' authority
19 granted by a prior referendum affecting the taxes levied upon
20 real property and earned income. The change in tax levies by the
21 school directors as a result of the approval by the electorate
22 of a referendum shall take effect for the first school fiscal
23 year beginning after the referendum is approved.
24 Section 2. Subsection (3) of section 8, act of December 31,
25 1965 (P.L.1257, No.511), known as "The Local Tax Enabling Act,"
26 and all other acts and parts of acts are repealed insofar as
27 they are inconsistent herewith.
28 Section 3. This act shall take effect immediately.
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