PRINTER'S NO. 907
No. 807 Session of 1997
INTRODUCED BY BROWNE, FICHTER, ARMSTRONG, HENNESSEY, COWELL, GEIST, COY, WALKO, MELIO, ROONEY, RUBLEY, FAIRCHILD, PESCI, LAUGHLIN, BARRAR, COLAFELLA, STEELMAN, LYNCH, ITKIN, McCALL, TRELLO, MAITLAND, BARD, ADOLPH, DALLY, BOSCOLA, SEMMEL, CIVERA, ROHRER, RAYMOND AND E. Z. TAYLOR, MARCH 12, 1997
REFERRED TO COMMITTEE ON FINANCE, MARCH 12, 1997
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 defining "earned income" to authorize the 23 establishment of a separate class of income for old-age or 24 retirement benefit plans. 25 The General Assembly of the Commonwealth of Pennsylvania 26 hereby enacts as follows: 27 Section 1. The definition of "earned income" in section 13
1 of the act of December 31, 1965 (P.L.1257, No.511), known as The 2 Local Tax Enabling Act, is amended to read: 3 Section 13. Earned Income Taxes.--On and after the effective 4 date of this act the remaining provisions of this section shall 5 be included in or construed to be a part of each tax levied and 6 assessed upon earned income by any political subdivision levying 7 and assessing such tax pursuant to this act. The definitions 8 contained in this section shall be exclusive for any tax upon 9 earned income and net profits levied and assessed pursuant to 10 this act, and shall not be altered or changed by any political 11 subdivision levying and assessing such tax. 12 I. Definitions 13 * * * 14 "Earned income." Salaries, wages, commissions, bonuses, 15 incentive payments, fees, tips and other compensation received 16 by a person or his personal representative for services 17 rendered, whether directly or through an agent, and whether in 18 cash or in property; not including, however, wages or 19 compensation paid to persons on active military service, 20 periodic payments for sickness and disability other than regular 21 wages received during a period of sickness, disability or 22 retirement or payments arising under workmen's compensation 23 acts, occupational disease acts and similar legislation, or 24 payments commonly recognized as old age benefits, retirement pay 25 or pensions paid to persons retired from service after reaching 26 a specific age or after a stated period of employment: Provided, 27 That at the discretion of the local authority through ordinance 28 or resolution, the definition of earned income may be amended to 29 adopt the separate class of income for old age and retirement 30 benefits as provided in sections 301(a) and 303(a)(9) of the act 19970H0807B0907 - 2 -
1 of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of 2 1971," or payments commonly known as public assistance, or 3 unemployment compensation payments made by any governmental 4 agency or payments to reimburse expenses or payments made by 5 employers or labor unions for wage and salary supplemental 6 programs, including, but not limited to, programs covering 7 hospitalization, sickness, disability or death, supplemental 8 unemployment benefits, strike benefits, social security and 9 retirement. 10 * * * 11 Section 2. This act shall take effect January 1, 1998. A28L53JS/19970H0807B0907 - 3 -