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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY BARRAR, CALTAGIRONE, CLYMER, DENLINGER, FLECK, GABLER, GEIST, GINGRICH, GOODMAN, GROVE, HARHART, HESS, KAUFFMAN, M.K. KELLER, KILLION, PETRI, PYLE, RAPP, SCAVELLO, K. SMITH AND SWANGER, FEBRUARY 14, 2011 |
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| REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 14, 2011 |
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| AN ACT |
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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 payment of tax to other political |
23 | subdivisions or states as credit or deduction and withholding |
24 | tax; and providing for local services tax credit. |
25 | The General Assembly of the Commonwealth of Pennsylvania |
26 | hereby enacts as follows: |
27 | Section 1. Section 317 of the act of December 31, 1965 |
28 | (P.L.1257, No.511), known as The Local Tax Enabling Act, amended |
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1 | July 2, 2008 (P.L.197, No.32), is amended to read: |
2 | Section 317. Payment of Tax to Other Political Subdivisions |
3 | or States as Credit or Deduction; Withholding Tax.--[Payment] |
4 | Except as provided in section 317.1, payment of any tax to any |
5 | political subdivision pursuant to an ordinance or resolution |
6 | passed or adopted prior to the effective date of this act shall |
7 | be credited to and allowed as a deduction from the liability of |
8 | taxpayers for any like tax respectively on salaries, wages, |
9 | commissions, other compensation or on net profits of businesses, |
10 | professions or other activities and for any income tax imposed |
11 | by any other political subdivision of this Commonwealth under |
12 | the authority of this chapter. |
13 | Payment of any tax on salaries, wages, commissions, other |
14 | compensation or on net profits of business, professions or other |
15 | activities to a political subdivision by residents thereof |
16 | pursuant to an ordinance or resolution passed or adopted under |
17 | the authority of this chapter shall be credited to and allowed |
18 | as a deduction from the liability of such persons for any other |
19 | like tax respectively on salaries, wages, commissions, other |
20 | compensation or on net profits of businesses, professions or |
21 | other activities imposed by any other political subdivision of |
22 | this Commonwealth under the authority of this chapter. |
23 | Payment of any tax on income to any political subdivision by |
24 | residents thereof pursuant to an ordinance or resolution passed |
25 | or adopted under the authority of this chapter shall, to the |
26 | extent that such income includes salaries, wages, commissions, |
27 | other compensation or net profits of businesses, professions or |
28 | other activities, but in such proportion as hereinafter set |
29 | forth, be credited to and allowed as a deduction from the |
30 | liability of such persons for any other tax on salaries, wages, |
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1 | commissions, other compensation or on net profits of businesses, |
2 | professions, or other activities imposed by any other political |
3 | subdivision of this Commonwealth under the authority of this |
4 | chapter. |
5 | Payment of any tax on income to any state or to any political |
6 | subdivision thereof by residents thereof, pursuant to any State |
7 | or local law, may, at the discretion of the Pennsylvania |
8 | political subdivision imposing such tax, to the extent that such |
9 | income includes salaries, wages, commissions, or other |
10 | compensation or net profits of businesses, professions or other |
11 | activities but in such proportions as hereinafter set forth, be |
12 | credited to and allowed as a deduction from the liability of |
13 | such person for any other tax on salaries, wages, commissions, |
14 | other compensation or net profits of businesses, professions or |
15 | other activities imposed by any political subdivision of this |
16 | Commonwealth under the authority of this chapter, if residents |
17 | of the political subdivision in Pennsylvania receive credits and |
18 | deductions of a similar kind to a like degree from the tax on |
19 | income imposed by the other state or political subdivision |
20 | thereof. |
21 | Payment of any tax on income to any State other than |
22 | Pennsylvania or to any political subdivision located outside the |
23 | boundaries of this Commonwealth, by residents of a political |
24 | subdivision located in Pennsylvania shall, to the extent that |
25 | such income includes salaries, wages, commissions, or other |
26 | compensation or net profits of businesses, professions or other |
27 | activities but in such proportions as hereinafter set forth, be |
28 | credited to and allowed as a deduction from the liability of |
29 | such person for any other tax on salaries, wages, commissions, |
30 | other compensation or net profits of businesses, professions or |
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1 | other activities imposed by any political subdivision of this |
2 | Commonwealth under the authority of this chapter. |
3 | Where a credit or a deduction is allowable in any of the |
4 | several cases hereinabove provided, it shall be allowed in |
5 | proportion to the concurrent periods for which taxes are imposed |
6 | by the other state or respective political subdivisions, but not |
7 | in excess of the amount previously paid for a concurrent period. |
8 | No credit or deduction shall be allowed against any tax on |
9 | earned income imposed under authority of this chapter to the |
10 | extent of the amount of credit or deduction taken for the same |
11 | period by the taxpayer against any income tax imposed by the |
12 | Commonwealth of Pennsylvania under section 314 of the act of |
13 | March 4, 1971 (P.L.6, No.2) known as the "Tax Reform Code of |
14 | 1971," on account of taxes imposed on income by other states or |
15 | by their political subdivisions. |
16 | Section 2. The act is amended by adding a section to read: |
17 | Section 317.1. Local Services Tax Credit.—-(a) Payment of a |
18 | local services tax to a political subdivision pursuant to an |
19 | ordinance or resolution passed or adopted shall be credited to |
20 | and allowed as a deduction from the liability of a taxpayer for |
21 | a tax on earned income imposed by a political subdivision of |
22 | this Commonwealth. |
23 | (b) This section shall only apply to taxpayers that are |
24 | residents of and are employed within the same political |
25 | subdivision imposing both the earned income tax and the local |
26 | services tax. |
27 | Section 3. This act shall take effect immediately. |
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