PRINTER'S NO. 598
No. 569 Session of 1997
INTRODUCED BY GREENLEAF AND FUMO, FEBRUARY 28, 1997
REFERRED TO FINANCE, FEBRUARY 28, 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 providing for exclusions from gross receipts tax. 23 The General Assembly of the Commonwealth of Pennsylvania 24 hereby enacts as follows: 25 Section 1. Section 2(12) of the act of December 31, 1965 26 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended 27 October 11, 1984 (P.L.885, No.172), is amended to read:
1 Section 2. Delegation of Taxing Powers and Restrictions 2 Thereon.--The duly constituted authorities of the following 3 political subdivisions, cities of the second class, cities of 4 the second class A, cities of the third class, boroughs, towns, 5 townships of the first class, townships of the second class, 6 school districts of the second class, school districts of the 7 third class, and school districts of the fourth class, in all 8 cases including independent school districts, may, in their 9 discretion, by ordinance or resolution, for general revenue 10 purposes, levy, assess and collect or provide for the levying, 11 assessment and collection of such taxes as they shall determine 12 on persons, transactions, occupations, privileges, subjects and 13 personal property within the limits of such political 14 subdivisions, and upon the transfer of real property, or of any 15 interest in real property, situate within the political 16 subdivision levying and assessing the tax, regardless of where 17 the instruments making the transfers are made, executed or 18 delivered or where the actual settlements on such transfer take 19 place. The taxing authority may provide that the transferee 20 shall remain liable for any unpaid realty transfer taxes imposed 21 by virtue of this act. Each local taxing authority may, by 22 ordinance or resolution, exempt any person whose total income 23 from all sources is less than five thousand dollars ($5,000) per 24 annum from the per capita or similar head tax, occupation tax 25 and occupational privilege tax, or earned income tax, or any 26 portion thereof, and may adopt regulations for the processing of 27 claims for exemptions. Such local authorities shall not have 28 authority by virtue of this act: 29 * * * 30 (12) To levy, assess and collect a mercantile or business 19970S0569B0598 - 2 -
1 privilege tax on gross receipts or part thereof which are: (i) 2 discounts allowed to purchasers as cash discounts for prompt 3 payment of their bills; (ii) charges advanced by a seller for 4 freight, delivery or other transportation for the purchaser in 5 accordance with the terms of a contract of sale; (iii) received 6 upon the sale of an article of personal property which was 7 acquired by the seller as a trade-in to the extent that the 8 gross receipts in the sale of the article taken in trade does 9 not exceed the amount of trade-in allowance made in acquiring 10 such article; (iv) refunds, credits or allowances given to a 11 purchaser on account of defects in goods sold or merchandise 12 returned; (v) Pennsylvania sales tax; (vi) based on the value of 13 exchanges or transfers between one seller and another seller who 14 transfers property with the understanding that property of an 15 identical description will be returned at a subsequent date; 16 however, when sellers engaged in similar lines of business 17 exchange property and one of them makes payment to the other in 18 addition to the property exchanged, the additional payment 19 received may be included in the gross receipts of the seller 20 receiving such additional cash payments; (vii) of sellers from 21 sales to other sellers in the same line where the seller 22 transfers the title or possession at the same price for which 23 the seller acquired the merchandise; [or] (viii) transfers 24 between one department, branch or division of a corporation or 25 other business entity of goods, wares and merchandise to another 26 department, branch or division of the same corporation or 27 business entity and which are recorded on the books to reflect 28 such interdepartmental transactions[.]; or (ix) Federal or 29 State liquid fuel or fuel use tax. 30 * * * 19970S0569B0598 - 3 -
1 Section 2. This act shall take effect in 60 days. B3L53JS/19970S0569B0598 - 4 -