THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GEIST, MARKOSEK, BOYD, CARROLL, J. EVANS, GINGRICH, HARRIS, HESS, KILLION, PETRI, SIPTROTH AND WATSON, SEPTEMBER 16, 2010

REFERRED TO COMMITTEE ON TRANSPORTATION, SEPTEMBER 16, 2010  

AN ACT

Amending Title 74 (Transportation) of the Pennsylvania

Consolidated Statutes, in sustainable mobility options,

providing for local tax for mass transportation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Title 74 of the Pennsylvania Consolidated

Statutes is amended by adding a section to read:

§ 1521.  Local tax for mass transportation.

(a)  Taxes imposed.--The duly constituted authorities of

municipalities may, in their discretion, by ordinance or

resolution, for mass transportation revenue purposes for local

transportation organizations, levy, assess and collect or

provide for the levying, assessment and collection of a tax or

taxes described as follows:

(1)  Upon a transfer of real property or an interest in

real property within the limits of the municipality,

regardless of where the instruments making the transfers are

made, executed or delivered or where the actual settlements

on the transfer take place, to the extent that the

transactions are subject to the tax imposed by Article XI-C

of the act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971. A tax imposed under this paragraph shall

not exceed 0.5% of rate limitations provided by sections 307,

311 and 320 of the act of December 31, 1965 (P.L.1257,

No.511), known as The Local Tax Enabling Act.

(2)  In addition to the tax imposed under Article III of

the Tax Reform Code of 1971, a surtax not to exceed 0.2% of

the tax imposed on the taxable income of resident and

nonresident individuals as provided for under Article III of

the Tax Reform Code of 1971. The surtax shall be in addition

to any tax imposed under Article III of the Tax Reform Code

of 1971.

(3)  In addition to the tax imposed under Article II of

the Tax Reform Code of 1971, a surtax equal to 0.25% imposed

on the purchase price of tangible personal property and

services subject to taxation under Article II of the Tax

Reform Code of 1971. The surtax shall be in addition to any

tax imposed under Article II of the Tax Reform Code of 1971.

(b)  Computation of sales and use tax.--Within 30 days of the

notification of a municipality of the adoption of a tax under

subsection (a), the Department of Revenue shall establish a

combined schedule for the computation of the State Sales and Use

Tax and the State Sales and Use Surtax as established under this

section. The Department of Revenue shall collect the surtax and

remit the surtax proceeds quarterly to the appropriate taxing

authority. The Department of Revenue shall publish the schedule

providing for the combined computation of the State Sales and

Use Tax and the State Sales and Use Surtax in the next

succeeding publication of the Pennsylvania Bulletin.

(c)  Administration.--The taxes authorized under subsection

(a)(1) and (2) shall be administered, collected and enforced

under The Local Tax Enabling Act. The taxes authorized under

subsection (a)(3) shall be administered, collected and enforced

under the Tax Reform Code of 1971. The Department of Revenue may

promulgate and enforce regulations not inconsistent with the

provisions of this section.

(d)  Construction.--The provisions of Articles II, III and

XI-C of the Tax Reform Code of 1971 shall apply to the taxes

imposed under subsection (a) except as inconsistent with this

section.

(e)  Grants by municipalities.--A municipality in any

metropolitan area which is a member of a local transportation

organization is authorized to make annual grants from current

revenues or from revenue derived from taxes levied under this

section to local transportation organizations to assist in

defraying the costs of operations, maintenance and debt service

of a local transportation organization or of a particular mass

transportation project of a local transportation organization

and to enter into long-term agreements providing for the payment

of the same. The obligation of a municipality under any such

agreement shall not be considered to be a part of its

indebtedness, nor shall such obligation be deemed to impair the

status of any indebtedness of such municipality which would

otherwise be considered as self-sustaining.

Section 2.  This act shall take effect in 60 days.