PRINTER'S NO. 885
No. 791 Session of 2001
INTRODUCED BY GERLACH, HELFRICK, CONTI, M. WHITE, WOZNIAK,
MOWERY, KITCHEN, WAUGH AND CORMAN, APRIL 12, 2001
REFERRED TO FINANCE, APRIL 12, 2001
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, further providing for exclusions from
3 local taxation; increasing the rate of earned income
4 taxation; and providing for State collection of certain
5 earned income taxes.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 8701(b), 8711 and 8712 of Title 53 of
9 the Pennsylvania Consolidated Statutes are amended to read:
10 § 8701. General tax authorization.
11 * * *
12 (b) Exclusions.--No school district which levies an earned
13 income and net profits tax authorized by this chapter shall have
14 any power or authority to levy, assess or collect:
15 [(1) A tax based upon a flat rate or on a millage rate
16 on an assessed valuation of a particular trade, occupation or
17 profession, commonly known as an occupation tax.
18 (2) A tax at a set or flat rate upon persons employed
19 within the taxing district, commonly known as an occupational
1 privilege tax.
2 (3) A per capita, poll, residence or similar head tax.]
3 (4) The earned income and net profits tax levied under
4 the Local Tax Enabling Act.
5 (5) An earned income tax under the act of August 24,
6 1961 (P.L.1135, No.508), referred to as the First Class A
7 School District Earned Income Tax Act, or under the
8 additional authority in section 652.1(a)(2) of the act of
9 March 10, 1949 (P.L.30, No.14), known as the Public School
10 Code of 1949.
11 (6) Any tax under section 652.1(a)(4) of the Public
12 School Code of 1949 except as it pertains to real estate
13 transfer taxes.
14 (7) Except for taxes permitted under section 8402(b)
15 (relating to scope and limitations), (c), (d), (e) and (f),
16 any other tax authorized or permitted under the Local Tax
17 Enabling Act.
18 * * *
19 § 8711. Earned income and net profits tax.
20 A school district shall have the power to levy, assess and
21 collect a tax on the earned income and net profits of resident
22 individuals of the school district up to a maximum rate of
23 [1.5%] 2.5%. The earned income and net profits tax may be levied
24 by the school district at a rate of 1.0%, 1.25% [or], 1.5%,
25 1.75%, 2.0%, 2.25% or 2.5%.
26 § 8712. Collections.
27 [Any] (a) Local tax collector.--Except as provided in
28 subsection (b), any school district imposing a tax under section
29 8711 (relating to earned income and net profits tax) shall
30 designate the tax officer who is appointed under section 10 of
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1 the Local Tax Enabling Act, or otherwise by law, as the
2 collector of the earned income and net profits tax. In the
3 performance of the tax collection duties under this subchapter,
4 the designated tax officer shall have all the same powers,
5 rights, responsibilities and duties for the collection of the
6 taxes which may be imposed under the Local Tax Enabling Act,
7 Subchapter C of Chapter 84 (relating to local taxpayers bill of
8 rights) or as otherwise provided by law.
9 (b) State collection.--
10 (1) Any school district imposing a tax upon earned
11 income and net profits under the authority of this chapter
12 may enter into an agreement with the Department of Revenue
13 for the collection of that tax by the Department of Revenue
14 in conjunction with the collection of any tax on personal
15 income imposed by the Commonwealth under the authority of the
16 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
17 Code of 1971.
18 (2) The agreement may not include any provisions
19 regarding enforcement. The agreement and any renewal shall be
20 executed at least six months prior to the date for the
21 collection of the tax; shall have a duration of at least four
22 years; and, after expiration, shall not be reinstituted for a
23 period of four years. The agreement authorized by this
24 section shall contain a provision appointing the Department
25 of Revenue as the tax officer within the meaning of this
26 chapter.
27 (c) Regulations.--The Department of Revenue, by regulation,
28 shall establish the procedures for collecting that tax and
29 paying the full amount collected over to the school district.
30 Section 2. This act shall take effect July 1, 2001.
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