PRINTER'S NO. 3328
No. 2436 Session of 1990
INTRODUCED BY PICCOLA, JOHNSON, TIGUE, D. F. CLARK, NOYE,
McVERRY, MORRIS, PHILLIPS, NAHILL, DEMPSEY, RITTER, SAURMAN,
HERMAN, JOSEPHS, MERRY, BUNT, THOMAS, TRELLO, LEH, LAUGHLIN,
VEON, ADOLPH, E. Z. TAYLOR, MAINE, CLYMER, RICHARDSON, ALLEN,
CIVERA, OLASZ AND LASHINGER, APRIL 4, 1990
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 4, 1990
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 collection of delinquent per capita,
23 occupation, occupational privilege and earned income taxes
24 from spouses and spouses' employers.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. Section 19 of the act of December 31, 1965
1 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
2 October 4, 1978 (P.L.930, No.177), is amended to read:
3 Section 19. Collection of Delinquent Per Capita, Occupation,
4 Occupational Privilege and Earned Income Taxes from Employers,
5 etc.--[The](a) Subject to the limitations and restrictions in
6 subsection (b), the tax collector shall demand, receive and
7 collect from all corporations, political subdivisions,
8 associations, companies, firms or individuals, employing persons
9 owing delinquent per capita, or occupation, occupational
10 privilege and earned income taxes, or whose spouse owes
11 delinquent per capita, occupation, occupational privilege and
12 earned income taxes, or having in possession unpaid commissions
13 or earnings belonging to any person or persons owing delinquent
14 per capita, occupation, occupational privilege and earned income
15 taxes, or whose spouse owes delinquent per capita, occupation,
16 occupational privilege and earned income taxes, upon the
17 presentation of a written notice and demand certifying that the
18 information contained therein is true and correct and containing
19 the name of the taxable or the spouse thereof and the amount of
20 tax due. Upon the presentation of such written notice and
21 demand, it shall be the duty of any such corporation, political
22 subdivision, association, company, firm or individual to deduct
23 from the wages, commissions or earnings of such individual
24 employes, then owing or that shall within sixty days thereafter
25 become due, or from any unpaid commissions or earnings of any
26 such taxable in its or his possession, or that shall within
27 sixty days thereafter come into its or his possession, a sum
28 sufficient to pay the respective amount of the delinquent per
29 capita, occupation, occupational privilege and earned income
30 taxes and costs, shown upon the written notice or demand, and to
19900H2436B3328 - 2 -
1 pay the same to the tax collector of the taxing district in
2 which such delinquent tax was levied within sixty days after
3 such notice shall have been given. No more than ten percent of
4 the wages, commissions or earnings of the delinquent taxpayer or
5 spouse thereof may be deducted at any one time for delinquent
6 per capita, occupation, occupational privilege and earned income
7 taxes and costs. Such corporation, political subdivision,
8 association, firm or individual shall be entitled to deduct from
9 the moneys collected from each employe the costs incurred from
10 the extra bookkeeping necessary to record such transactions, not
11 exceeding two percent of the amount of money so collected and
12 paid over to the tax collector. Upon the failure of any such
13 corporation, political subdivision, association, company, firm
14 or individual to deduct the amount of such taxes or to pay the
15 same over to the tax collector, less the cost of bookkeeping
16 involved in such transaction, as herein provided, within the
17 time hereby required, such corporation, political subdivision,
18 association, company, firm or individual shall forfeit and pay
19 the amount of such tax for each such taxable whose taxes are not
20 withheld and paid over, or that are withheld and not paid over
21 together with a penalty of ten percent added thereto, to be
22 recovered by an action of assumpsit in a suit to be instituted
23 by the tax collector, or by the proper authorities of the taxing
24 district, as debts of like amount are now by law recoverable,
25 except that such person shall not have the benefit of any stay
26 of execution or exemption law. The tax collector shall not
27 proceed against a spouse or his employer until he has pursued
28 collection remedies against the delinquent taxpayer and his
29 employer under this section.
30 (b) Whenever a tax collector institutes proceedings to
19900H2436B3328 - 3 -
1 collect delinquent per capita, occupation, occupational
2 privilege and earned income taxes and costs against a spouse or
3 an employer of a spouse and that spouse thereafter files a
4 complaint instituting an action in divorce, then all proceedings
5 of the tax collector against that spouse shall terminate.
6 Section 2. This act shall take effect immediately.
A5L53RZ/19900H2436B3328 - 4 -