1Amending the act of December 31, 1965 (P.L.1257, No.511),
2entitled "An act empowering cities of the second class,
3cities of the second class A, cities of the third class,
4boroughs, towns, townships of the first class, townships of
5the second class, school districts of the second class,
6school districts of the third class and school districts of
7the fourth class including independent school districts, to
8levy, assess, collect or to provide for the levying,
9assessment and collection of certain taxes subject to maximum
10limitations for general revenue purposes; authorizing the
11establishment of bureaus and the appointment and compensation
12of officers, agencies and employes to assess and collect such
13taxes; providing for joint collection of certain taxes,
14prescribing certain definitions and other provisions for
15taxes levied and assessed upon earned income, providing for
16annual audits and for collection of delinquent taxes, and
17permitting and requiring penalties to be imposed and
18enforced, including penalties for disclosure of confidential
19information, providing an appeal from the ordinance or
20resolution levying such taxes to the court of quarter
21sessions and to the Supreme Court and Superior Court," in
22local taxes, further providing for limitation on assessment;
23and, in consolidated collection of local income taxes,
24further providing for powers and duties of tax officer.

25The General Assembly of the Commonwealth of Pennsylvania
26hereby enacts as follows:

27Section 1. Section 319 of the act of December 31, 1965
28(P.L.1257, No.511), known as The Local Tax Enabling Act,
29renumbered and amended July 2, 2008 (P.L.197, No.32), is amended

1to read:

2Section 319. Limitation on Assessment.--[No] (a) Except as 
3otherwise provided in subsection (b), no assessment may be made
4of any tax imposed under this chapter more than five years after
5the date on which such tax should have been paid [except where a
6fraudulent return or no return has been filed].

7(b) Where a fraudulent return or no return has been filed,
8no assessment may be made of any tax imposed under this chapter
9more than ten years after the date on which such tax should have
10been paid.

11Section 2. Section 509(h) of the act, added July 2, 2008
12(P.L.197, No.32), is amended to read:

13Section 509. Powers and duties of tax officer.

14* * *

15(h) Actions for collection of income taxes.--The tax officer
16may file an action in the name of a political subdivision within
17the tax collection district for the recovery of income taxes due
18to the political subdivision and unpaid. Nothing in this
19subsection shall affect the authority of a political subdivision
20to file an action in its own name for collection of income taxes
21under this chapter. This subsection shall not be construed to
22limit a tax officer, a tax collection district or political
23subdivision from recovering delinquent income taxes by any other
24means provided by this act. Actions for collection of income
25taxes shall be subject to the following:

26(1) Except as set forth in paragraph (2) or (4), an
27action brought to recover income taxes must be commenced
28within three years of the later of the date:

29(i) the income taxes are due;

30(ii) the declaration or return has been filed; or

1(iii) of a redetermination of compensation or net
2profits by the Department of Revenue.

3(2) If there is substantial understatement of income tax
4liability of 25% or more and there is no fraud, an action
5must be commenced within six years.

6(3) Except as set forth in paragraph (4)(ii), (iii) or
7(iv), an action by a tax officer for recovery of an erroneous
8refund must be commenced as follows:

9(i) Except as set forth in subparagraph (ii), within
10two years after making the refund.

11(ii) If it appears that any part of the refund was
12induced by fraud or misrepresentation of material fact,
13within five years after making the refund.

14(4) [There is no limitation of action] An action by a 
15tax officer must be commenced within ten years of the date on 
16which the tax should have been paid if any of the following
17apply:

18(i) A taxpayer fails to file a declaration or return
19required under this act.

20(ii) An examination of a declaration or return or of
21other evidence in the possession of the tax officer
22relating to the declaration or return reveals a
23fraudulent evasion of income taxes.

24(iii) An employer has deducted income taxes under
25section 512 and has failed to pay the amount deducted to
26the tax officer.

27(iv) An employer has intentionally failed to make
28deductions required by this act.

29* * *

30Section 3. This act shall take effect in 60 days.