Bill Text: PA SB1050 | 2009-2010 | Regular Session | Introduced

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Bill Title: Authorizing countywide implementation of sales, use, occupancy, personal income or earned income and net profits taxes; providing for the levying, assessment, collection and distribution of such taxes among municipalities within a county; requiring reduction of other taxes on real property and individuals; and providing for the powers and duties of the Department of Community and Economic Development, the Department of Revenue and the State Treasurer.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Introduced - Dead) 2009-07-23 - Referred to FINANCE [SB1050 Detail]

Download: Pennsylvania-2009-SB1050-Introduced.html

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PRINTER'S NO. 1342
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1050 Session of2009
INTRODUCED BY EICHELBERGER, EARLL, MUSTO, O'PAKE, BRUBAKER AND ALLOWAY, JULY 23, 2009
REFERRED TO FINANCE, JULY 23, 2009
AN ACT
Authorizing countywide implementation of sales, use, occupancy,
personal income or earned income and net profits taxes;
providing for the levying, assessment, collection and
distribution of such taxes among municipalities within a
county; requiring reduction of other taxes on real property
and individuals; and providing for the powers and duties of
the Department of Community and Economic Development, the
Department of Revenue and the State Treasurer.
TABLE OF CONTENTS
Chapter 1. General Provisions
Section 101. Short title.
Section 102. Definitions.
Section 103. Scope and limitations.
Section 104. Home rule counties.
Section 105. Certain rates of taxation limited.
Chapter 3. Subjects of Taxation
Subchapter A. Tax Authorization
Section 301. General tax authorization.
Section 302. Continuity of tax.
Section 303. Election to participate under act.
Section 304. Municipal input into participation.
Subchapter B. County Sales and Use Tax
Section 311. Construction.
Section 312. Imposition.
Section 313. Situs.
Section 314. Licenses.
Section 315. Rules and regulations; collection costs.
Section 316. Procedure and administration.
Section 317. County sales and use tax funds.
Section 318. Disbursements.
Subchapter C. Personal Income Tax
Section 321. Construction.
Section 322. Personal income tax.
Section 323. Collections.
Section 324. Rules and regulations.
Section 325. Procedure and administration.
Subchapter D. Earned Income and Net Profits Tax
Section 331. Earned income and net profits tax.
Section 332. Collections.
Section 333. Rules and regulations.
Section 334. Procedure and administration.
Subchapters E through I (Reserved)
Chapter 5. Credits, Exemptions and Deferrals
Subchapter A. Credits and Exemptions
Section 501. Credits.
Section 502. Low-income tax provisions.
Section 503. Regulations.
Subchapter B. Real Estate Tax Deferral
Section 511. Legislative intent.
Section 512. Definitions.
Section 513. Authority.
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Section 514. Income eligibility.
Section 515. Tax deferral.
Section 516. Application procedure.
Section 517. Contents of application.
Section 518. Attachment and satisfaction of liens.
Subchapters C through J (Reserved)
Chapter 7. Disposition and Use of Tax Revenues
Section 701. Use of sales tax revenues.
Section 702. Use of personal or earned income tax revenues.
Section 703. Revenue limitation exceptions.
Section 704. Methods of reducing real property tax.
Section 705. Estimates of distributions and revenues.
Chapter 9. Register for Certain Taxes
Section 901. Definitions.
Section 902. Register for taxes under this act.
Section 903. Information for register.
Section 904. Availability and effective period of register.
Section 905. Effect of nonfiling.
Section 906. Effect of chapter on liability of taxpayer.
Chapter 17. Miscellaneous Provisions
Section 1701. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
CHAPTER 1
GENERAL PROVISIONS
Section 101. Short title.
This act shall be known and may be cited as the Balanced
Options - Local Decisions Act.
Section 102. Definitions.
The following words and phrases when used in this act shall
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have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Association." As defined in section 301 of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
"Board of county commissioners." Includes the successor in
function to the board of county commissioners in a county which
has adopted a home rule charter under the former act of April
13, 1972 (P.L.184, No.62), known as the Home Rule Charter and
Optional Plans Law, but does not include the city council of a
city of the first class.
"Budgeted revenue." The revenue from taxes actually levied
and assessed by a local government unit. The term does not
include revenue from:
(1) Delinquent taxes.
(2) Payments in lieu of taxes.
(3) The real estate transfer tax.
(4) The Public Utility Realty Tax, commonly known as
PURTA.
(5) Interest or dividend earnings.
(6) Federal or State grants, contracts or
appropriations.
(7) Income generated from operations.
(8) Any other source that is revenue not derived
directly from taxes levied and assessed by a local government
unit.
"Business." As defined in section 301 of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
"Classes of income." The classes of income set forth in
section 303 of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971.
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"Compensation." As defined in section 301 of the act of
March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
1971.
"County." A county-level municipality within this
Commonwealth, regardless of classification. The term includes a
county which has adopted a home rule charter or optional plan of
government under the former act of April 13, 1972 (P.L.184,
No.62), known as the Home Rule Charter and Optional Plans Law.
The term does not include a county of the first or second class.
"Current year." The calendar year or fiscal year for which
the tax is levied.
"Department." The Department of Revenue of the Commonwealth.
"Domicile." As defined in section 501 of the act of December
31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
Act.
"Earned income." The classes of income defined as earned
income in section 501 of the act of December 31, 1965 (P.L.1257,
No.511), known as The Local Tax Enabling Act.
"Employer." As defined in section 301 of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
"Governing body." The board of county commissioners,
including the successor in function to the board of county
commissioners in a county which has adopted a home rule charter
under the former act of April 13, 1972 (P.L.184, No.62), known
as the Home Rule Charter and Optional Plans Law, city council,
borough council, incorporated town council, board of township
commissioners, board of township supervisors, a governing
council of a home rule municipality or optional plan
municipality or a governing council of any similar general
purpose unit of government which may hereafter be created by
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statute.
"Home rule municipality." A city, borough, incorporated town
or township which has adopted a home rule charter under the
former act of April 13, 1972 (P.L.184, No.62), known as the Home
Rule Charter and Optional Plans Law.
"Individual." As defined in section 301 of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
"Inverse per capita income." A factor determined by dividing
the integer one by the per capita income of the municipality, as
determined by the most recent survey by the Department of
Commerce.
"Local Tax Enabling Act." The act of December 31, 1965
(P.L.1257, No.511), known as The Local Tax Enabling Act.
"Municipality." A city of the second class A, city of the
third class, borough, incorporated town, township of the first
class, township of the second class, home rule municipality,
optional plan municipality, optional form municipality or
similar general purpose unit of government which may hereafter
be created by statute, except a city of the first or second
class.
"Net profits." The classes of income defined as net profits
in section 501 of the act of December 31, 1965 (P.L.1257,
No.511), known as The Local Tax Enabling Act.
"Nonresident." An individual domiciled outside the
municipality.
"Optional form municipality." A city which has adopted an
optional form of government under the act of July 15, 1957
(P.L.901, No.399), known as the Optional Third Class City
Charter Law.
"Optional plan municipality." A city, borough, incorporated
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town or township which has adopted an optional plan of
government under the former act of April 13, 1972 (P.L.184,
No.62), known as the Home Rule Charter and Optional Plans Law.
"Ordinance." Includes a resolution.
"Personal income." The classes of income enumerated in
section 303 of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, and upon which is imposed a
personal income tax by the Commonwealth.
"Preceding year." The calendar year or fiscal year before
the current year.
"Register." The register provided for in Chapter 9.
"Resident individual." An individual who is domiciled in a
municipality or county.
"School district." A school district of the first class A,
second class, third class or fourth class, including any
independent school district.
"Succeeding year." The calendar year or fiscal year
following the current year.
"Tax base." The collective value of activities, property and
assets available for taxation.
"Tax officer." The person, public employee or private agency
designated by a governing body to collect and administer the
taxes imposed under this act.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
"Taxpayer." An individual required under this act to file a
tax return or to pay a tax.
Section 103. Scope and limitations.
(a) General rule.--Except as provided in subsections (b),
(c), (d) and (e), it is the intent of this act to confer upon
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each county the power to levy, assess and collect taxes upon the
subjects of taxation set forth in this act.
(b) Real estate transfer taxes.--This act does not affect
the powers of a municipality or school district to levy, assess
and collect a real estate transfer tax, including any real
estate transfer tax levied under the authority of section
652.1(a)(4) of the act of March 10, 1949 (P.L.30, No.14), known
as the Public School Code of 1949.
(c) Amusement taxes.--A municipality or school district
within a county which has elected to participate under section
303 and which has lawfully levied, assessed or collected or
provided for the levying, assessment or collection of an
amusement tax may continue to levy, assess and collect such tax
on such subjects upon which the tax was imposed at a rate not to
exceed the rate imposed by the municipality or school district
as of the effective date of this act. No new amusement taxes
shall be imposed by a municipality or school district within a
county which has elected to participate under this act.
(d) Mercantile or business privilege taxes on gross
receipts.--Nothing in this act shall, either explicitly or
implicitly, permit a county, municipality or school district to
impose, expand the subjects of or increase the rate of any
mercantile or business privilege tax on gross receipts not
otherwise permitted prior to the effective date of this act, nor
shall any provision of this act affect the prohibitions on
business gross receipts taxes as set forth in section 301.1 of
the Local Tax Enabling Act, section 533 of the act of December
13, 1988 (P.L.1121, No.145), known as the Local Tax Reform Act,
the Tax Reform Code and any other relevant act.
(e) Sign or sign privilege tax.--Any county or municipality
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which has on or before January 1, 2009, assessed, levied or
collected an annual sign tax or annual sign privilege tax or
provided for the levying, assessment or collection of such tax
may continue to levy, assess and collect such tax on such
subjects upon which the tax was imposed by the county or
municipality at a rate not to exceed the rate imposed by the
county or municipality as of January 1, 2009. A county or
municipality which does not assess, levy or collect an annual
sign tax or annual sign privilege tax as of January 1, 2009, may
not assess, levy or collect such tax.
Section 104. Home rule counties.
The governing body of a home rule county which desires to
participate under this act shall be subject to the requirements
of section 303. A home rule county shall not have the right or
authority to fix the rate of taxation for the subjects of
taxation authorized under Chapter 3 in excess of the rates fixed
in Chapter 3. Home rule counties which elect to participate
under the provisions of this act shall be subject to the
distribution provisions of sections 701 and 702.
Section 105. Certain rates of taxation limited.
(a) General rule.--If a municipality and school district
both impose an earned income tax on the same individual under
the Local Tax Enabling Act and the municipality and school
district are limited to, or have agreed upon, a division of the
tax rate in accordance with section 311 of the Local Tax
Enabling Act, then the municipality and school district which
continue to levy the income tax under the Local Tax Enabling Act
shall remain subject to that limitation or agreement.
(b) Limitation.--In the event that a school district opts to
impose or increase an earned income tax under the Local Tax
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Enabling Act within a county that has elected to participate
under this act, the school district shall remain subject to the
provisions of section 311 of the Local Tax Enabling Act, or any
agreement pertaining to the division of the tax rate with
affected municipalities.
CHAPTER 3
SUBJECTS OF TAXATION
SUBCHAPTER A
TAX AUTHORIZATION
Section 301. General tax authorization.
(a) General rule.--Subject to sections 303 and 304 and
except as provided in subsection (b), a county of the third
through eighth class shall have the power and may by ordinance
levy, assess and collect or provide for the levying, assessment
and collection of such taxes on the subjects specified in this
chapter for general revenue purposes as it shall determine on
any or all of the subjects of taxation set forth in this act
within the geographical limits of the county.
(b) Exclusions.--No county, or any municipality within the
county which levies a tax authorized by this act, shall have any
power or authority to levy, assess or collect:
(1) A tax based upon a flat rate or on a millage rate on
an assessed valuation of a particular trade, occupation or
profession, commonly known as an occupation tax.
(2) A tax at a set or flat rate upon persons employed
within the taxing district, commonly known as an occupational
privilege tax.
(3) A per capita, poll, residence or similar head tax.
(4) A new, or an increase in any existing, earned income
and net profits tax levied under the Local Tax Enabling Act.
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(5) Any other tax authorized or permitted under the
Local Tax Enabling Act except a local services tax, an
amusement tax in effect prior to the effective date of this
act, or a mercantile or business privilege tax on gross
receipts, as modified by paragraph (7).
(6) The intangible personal property tax under the act
of June 17, 1913 (P.L.507, No.335), referred to as the
Intangible Personal Property Tax Law.
(7) Any mercantile or business privilege tax on gross
receipts, as limited by section 533 of the act of December
13, 1988 (P.L.1121, No.145), known as the Local Tax Reform
Act, after one year from the date of the election to
participate under this act pursuant to section 303.
Section 302. Continuity of tax.
Every tax levied under the provisions of this act shall
continue in force on a calendar or fiscal year basis, as the
case may be, without annual reenactment unless the rate of tax
is lawfully increased or the tax is subsequently repealed.
Section 303. Election to participate under act.
(a) General rule.--The imposition of a tax under Subchapter
B, C or D shall only be done in accordance with this section.
(b) Tax study commission.--Before any county, or
municipalities therein, seeks referendum approval for the levy,
assessment or collection of any tax under the authority of this
act, a local tax study commission shall be appointed in
accordance with the following provisions:
(1) The local tax study commission shall consist of
members appointed by the governing body of the county in
consultation with municipal officials within the county. No
member of the local tax study commission shall be a relative,
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by blood or marriage, of an official or employee of the
county or a municipality therein. All members shall be
residents of the county. The local tax study commission shall
consist of seven members. Representatives on a local tax
study commission must reasonably reflect the socioeconomic,
age and occupational diversity of the county.
(2) The governing body of the county shall provide
necessary and reasonable staff to support the local tax study
commission and shall reimburse the members of the local tax
study commission for necessary and reasonable expenses in the
discharge of their duties.
(3) The local tax study commission shall study the
existing taxes levied, assessed and collected by the county
and the municipalities therein and the effect of any county
or municipal taxes imposed concurrently with a school
district and shall determine if and how the tax policies of
the county and its municipalities could be strengthened or
made more equitable by adopting for levy, assessment and
collection a different combination of any of the following
taxes: personal income tax, earned income and net profits
tax, real estate tax or sales and use tax at such levels and
in such combinations on permissible subjects of taxation as
do not exceed the limitations in this act. This study shall
include, but not be limited to, consideration of all of the
following:
(i) Historic rate and revenue provided by taxes
currently levied, assessed and collected by the county
and the municipalities therein.
(ii) The percentage of total revenues provided by
taxes currently levied, assessed and collected.
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(iii) The age, income, employment and property use
characteristics of the existing tax base.
(iv) The projected revenues of any taxes currently
levied, assessed and collected.
(v) The projected revenues of any taxes referred to
in this paragraph not currently levied, assessed and
collected by the municipality or county.
(4) Within 120 days of its appointment, the local tax
study commission shall submit a nonbinding recommendation to
the county and its municipalities with regard to the
appropriate tax or combination of taxes, identified in
paragraph (3), to be levied, assessed and collected
commencing the next fiscal year. No later than 60 days after
submission of the recommendation, the governing body of the
county shall accept or reject the recommendation of the local
tax study commission.
(5) If the local tax study commission fails to make a
nonbinding recommendation within 120 days of its appointment,
the governing body of the county shall discharge the
appointed local tax study commission and may appoint itself
as the local tax study commission or may propose the adoption
of a combination of taxes for the county and its
municipalities for the next fiscal year.
(6) The local tax study commission shall publish or
cause to be published, concurrent with issuing its
recommendation, a final report of its activities and
recommendations and shall deliver the final report to the
governing bodies of the county and municipalities therein.
The local tax study commission shall be subject to 65 Pa.C.S.
Ch. 7 (relating to open meetings) and the act of February 14,
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2008 (P.L.6, No.3), known as the Right-to-Know Law.
(7) Receipts are required for all reimbursable expenses
under paragraph (2).
(8) All the records, receipts, tapes, minutes of
meetings and written discussions of the local tax study
commission shall, upon its discharge, be turned over to the
secretary or chief clerk of the county for permanent
safekeeping. The secretary or chief clerk shall make such
materials available for public inspection at any time during
regular business hours.
(9) The local tax study commission shall be discharged
upon the filing of its final report.
(c) Public referendum requirements to participate under
act.--Subject to the notice and public hearing requirements of
section 316(a), 325(a) or 334, whichever is applicable, a
governing body may elect to participate under this act by
obtaining the approval of the electorate of the affected county
and its municipalities in a public referendum at only the
municipal or general primary election preceding the calendar
year or fiscal year when the taxes will be initially imposed.
The referendum question must state the initial rate of the
proposed tax, the reason for the tax and the amount of proposed
revenue growth, if any, in the fiscal year of transition to the
tax system authorized under this act, expressed as a percent
increase over the prior year's budgeted revenue. Any increase in
revenues between the transition year and the prior year's
budgeted revenue shall not exceed 2%. The governing body must
frame the question in clear language that is readily
understandable by the layperson. For the purpose of
illustration, a referendum question could be framed as follows:
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Do you favor the imposition of an X% (name of tax) to be
used to replace certain existing local taxes and to make
reductions in real property taxes by means of a homestead
exemption in the amount of Y?
A nonlegal interpretative statement must accompany the question
in accordance with section 201.1 of the Pennsylvania Election
Code, that includes the following: the initial rate of the tax
or taxes to be imposed and the maximum allowable rate of the tax
or taxes imposed under this act; the estimated revenues to be
derived from the initial rate of the tax or taxes imposed under
this act in the fiscal year of transition to the tax system
authorized under this act; the estimated tax savings from the
reduction in real property taxes and the elimination of certain
existing taxes under this act; the identification of the
existing taxes to be eliminated under this act; the method or
methods to be used to reduce real property taxes; the class or
classes of real property for which real property taxes would be
reduced; and the estimated amount of real property tax reduction
by class, expressed as an average percent reduction by class, if
applicable. If a referendum under this section fails to win
majority approval of the electorate, a county or municipality
shall not be required to seek the approval of the electorate as
a prerequisite to an increase in the rate of any tax which the
governing body of the affected county or municipality is already
authorized to levy and increase under any other act.
Section 304. Municipal input into participation.
(a) Decision to participate.--After the first January 1
occurring at least six months following the effective date of
this section, if the board of county commissioners of a county
has not elected to participate under this act, municipalities
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located in that county may require, as provided in this section,
the board of county commissioners of the county to establish a
local tax study commission under section 303. The affirmative
votes of the governing bodies of municipalities whose combined
population represents more than 60% of the population within the
county shall be necessary to require the board of county
commissioners to elect participation under this act. The
population of a municipality that is located in more than one
county shall be determined separately for each county where the
municipality is located on the basis of the municipality's
population within each county.
(b) Decision not to participate.--If the board of county
commissioners of a county has elected to participate under this
act, municipalities located in that county may, at any time
prior to a final vote by the county commissioners under section
303(b)(4) or (5), submit a resolution passed by the
municipality's governing body to the board of county
commissioners of the county indicating the municipality's desire
to reject participation under this act. If the county receives
duly passed resolutions from municipalities whose combined
population represents 60% of the county's population, a county
shall reject participation and no referendum shall be placed
before the electorate.
(c) Procedure.--
(1) Each governing body of a municipality voting in the
affirmative on the question shall certify its vote on the
question to the board of county commissioners. The governing
body of a municipality that is located in more than one
county shall certify its vote on the question to the board of
county commissioners for each county where the municipality
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is located.
(2) The affirmative votes of the governing bodies of
municipalities whose combined population represents more than
60% of the population within the county shall be necessary
for the board of county commissioners to be required to elect
or reject participation under this act. The population of a
municipality that is located in more than one county shall be
determined separately for each county where the municipality
is located on the basis of the municipality's population
within each county.
(3) Immediately upon receipt of certifications
indicating the approval of resolutions by municipalities
whose combined population represents more than 60% of the
population of the county, the board of county commissioners
of the county shall either elect to participate and initiate
the procedures under section 303 or reject participation
under this section, in accordance with the decision contained
in those resolutions which represent more than 60% of the
population of the county.
SUBCHAPTER B
COUNTY SALES AND USE TAX
Section 311. Construction.
The tax imposed by the governing body of a county under this
subchapter shall be in lieu of imposing taxes under sections 322
and 331 and in addition to any tax imposed by the Commonwealth
under Article II of the Tax Reform Code. Except for the situs
provisions under section 313, the provisions of Article II of
the Tax Reform Code shall apply to the tax.
Section 312. Imposition.
(a) Sales.--The governing body of a county of the third
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through eighth class may levy and assess upon each separate sale
at retail of tangible personal property or services, as defined
in Article II of the Tax Reform Code, within the boundaries of
the county, a tax on the purchase price. The tax shall be
collected by the vendor from the purchaser and shall be paid
over to the Commonwealth as provided in this subchapter. The
sales tax shall not be paid to the Commonwealth by any person
who has paid the tax imposed under Chapter 5 of the act of June
5, 1991 (P.L.9, No.6), known as the Pennsylvania
Intergovernmental Cooperation Authority Act for Cities of the
First Class, or subdivision (e) of Article XXXI-B of the act of
July 28, 1953 (P.L.723, No.230), known as the Second Class
County Code, equal to or greater than the tax imposed under this
subsection.
(b) Use.--In any county, except for a county of the first or
second class, within which the tax authorized in subsection (a)
is imposed, there shall be levied, assessed and collected upon
the use, within the county, of tangible personal property
purchased at retail and on services purchased at retail, as
defined in Article II of the Tax Reform Code, a tax on the
purchase price. The tax shall be paid over to the Commonwealth
by the person who makes the use. The use tax imposed under this
subchapter shall not be paid over to the Commonwealth by any
person who has paid the tax imposed under:
(1) Subsection (a).
(2) This subsection to the vendor with respect to the
use.
(3) Chapter 5 of the Pennsylvania Intergovernmental
Cooperation Authority Act for Cities of the First Class,
equal to or greater than the tax imposed under either
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subsection (a) or this subsection.
(4) Subdivision (e) of Article XXXI-B of the Second
Class County Code equal to or greater than the tax imposed
under either subsection (a) or this subsection.
(c) Occupancy.--In any county within which a tax authorized
by subsection (a) is imposed, there shall be levied, assessed
and collected an excise tax on the rent upon every occupancy of
a room or rooms in a hotel in the county. The tax shall be
collected by the operator or owner from the occupant and paid
over to the Commonwealth.
(d) Rate and uniformity.--
(1) The tax authorized by subsections (a), (b) and (c)
shall be imposed at a rate not to exceed 1%.
(2) The tax imposed by subsections (a), (b) and (c)
shall be uniform.
(e) Computation.--The tax imposed under this section shall
be computed in the manner set forth in section 503(e)(2) of the
Pennsylvania Intergovernmental Cooperation Authority Act for
Cities of the First Class.
Section 313. Situs.
(a) General rule.--Except as provided in subsection (b), the
situs of sales at retail or uses, including leases, of motor
vehicles, aircraft, motorcraft and utility services shall be
determined in the manner specified by section 504 of the act of
June 5, 1991 (P.L.9, No.6), known as the Pennsylvania
Intergovernmental Cooperation Authority Act for Cities of the
First Class, as well as the Tax Reform Code of 1971.
(b) Premium cable and telecommunications services.--The sale
or use of premium cable or telecommunications service shall be
deemed to occur at the address in the county where the customer
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receives the bill for service. This subsection shall determine
the situs of premium cable service for the purpose of all county
sales taxes, including those imposed under Chapter 5 of the
Pennsylvania Intergovernmental Cooperation Authority Act for
Cities of the First Class and under subdivision (e) of Article
XXXI-B of the act of July 28, 1953 (P.L.723, No.230), known as
the Second Class County Code.
Section 314. Licenses.
A license for the collection of the tax imposed by this
subchapter shall be issued in the same manner as is provided for
in section 505 of the act of June 5, 1991 (P.L.9, No.6), known
as the Pennsylvania Intergovernmental Cooperation Authority Act
for Cities of the First Class. Licensees shall be entitled to
the same discount as provided in section 227 of the Tax Reform
Code.
Section 315. Rules and regulations; collection costs.
(a) Regulations.--Rules and regulations shall be applicable
to the taxes imposed under section 312 in the same manner as is
provided for in section 506(1) and (2) of the act of June 5,
1991 (P.L.9, No.6), known as the Pennsylvania Intergovernmental
Cooperation Authority Act for Cities of the First Class.
(b) Administrative costs.--The department, to cover its
costs of administration, shall be entitled to retain a sum equal
to the costs of administration. When the annual operating budget
for the department is submitted to the General Assembly, the
department shall also submit to the chairman and minority
chairman of the Appropriations Committee of the Senate and to
the chairman and minority chairman of the Appropriations
Committee of the House of Representatives a report of the actual
sums retained for costs of collection in the preceding fiscal
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year, together with all supporting details.
Section 316. Procedure and administration.
(a) Ordinance.--Any county authorized to impose the tax
under section 312 shall give at least 60 days' written notice to
every municipality and school district located in the county of
its intent to impose the tax and shall adopt an ordinance after
the expiration of 60 days after the date of such notice. The
notice and an ordinance shall state the tax rate and refer to
this subchapter. The ordinance shall authorize the imposition of
all taxes provided for in section 312. Prior to adopting an
ordinance imposing the tax authorized by section 312, the
governing body of the county shall give public notice of its
intent to adopt the ordinance in the manner provided by section
306 of the Local Tax Enabling Act and shall conduct at least one
public hearing regarding the proposed adoption of the ordinance.
(b) Notification to department.--A certified copy of the
county ordinance shall be delivered to the department by
September 1 of the year prior to the effective date thereof. The
county ordinance shall become effective on January 1 of the
following year.
(c) Delivery of repeal ordinance.--A certified copy of any
repeal ordinance shall be delivered to the department at least
30 days prior to the effective date of the repeal.
Section 317. County sales and use tax funds.
There is created for each county levying the tax under
section 312 the (proper name) County Sales and Use Tax Fund. The
State Treasurer shall be custodian of the funds which shall be
subject to the provisions of law applicable to funds listed in
section 302 of the act of April 9, 1929 (P.L.343, No.176), known
as The Fiscal Code. Taxes imposed under section 312 shall be
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received by the department and paid to the State Treasurer and,
along with interest and penalties, less any collection costs
allowed under this subchapter and any refunds and credits paid,
shall be credited to the funds not less frequently than every
two weeks. During any period prior to the credit of moneys to
the funds, interest earned on moneys received by the department
and paid to the State Treasurer under this subchapter shall be
deposited into the funds. All moneys in the funds, including,
but not limited to, moneys credited to the funds under this
section, prior year encumbrances and the interest earned
thereon, shall not lapse or be transferred to any other fund,
but shall remain in the funds. Pending their disbursement,
moneys received on behalf of or deposited into the funds shall
be invested or reinvested as are other moneys in the custody of
the State Treasurer in the manner provided by law. All earnings
received from the investment or reinvestment of the moneys shall
be credited to the respective funds. The Auditor General shall
periodically audit the records of the department relative to its
duties under this section and shall furnish the results of such
audit to any county levying the sales and use tax under section
312 and to any municipality within the county upon its request.
Section 318. Disbursements.
(a) General rule.--On or before the tenth day of every
month, the State Treasurer shall make the disbursements on
behalf of the county imposing the tax out of the moneys which
are, as of the last day of the previous month, contained in the
respective county sales and use tax fund.
(b) Disbursement to counties.--The State Treasurer shall
disburse to a county imposing the tax authorized under section
312 an amount of money equal to 50% of the tax collected in that
20090SB1050PN1342 - 22 -
county and remitted to the department and deposited in the
respective county sales and use tax fund. The county shall
deposit the revenue from the respective county sales and use tax
fund into the county general fund for disposition as provided
under section 701(a).
(c) Disbursement to municipalities.--The State Treasurer
shall, at the same time, disburse to the municipalities 50% of
the tax collected in their respective counties as provided in
subsection (d). Each municipality's portion shall be deposited
in the municipal general fund for disposition as provided in
section 701(b).
(d) Allocation to municipalities.--The money allocated to
municipalities in the county shall be distributed pro rata based
on the population of each municipality located in the county as
a percentage of the sum of the population of all municipalities
located in the county. For municipalities located in more than
one county, the population shall be determined separately for
each county where the municipality is located on the basis of
the municipality's population within each county.
SUBCHAPTER C
PERSONAL INCOME TAX
Section 321. Construction.
The tax imposed in a county under this subchapter shall be in
lieu of imposing taxes under sections 312 and 331, and in
addition to any tax imposed by the Commonwealth under Article
III of the Tax Reform Code. In addition to the provisions in
sections 501, 502 and 503, the provisions of Article III of the
Tax Reform Code shall apply to the tax.
Section 322. Personal income tax.
Upon approval by referendum under this act, a county shall
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have the power to levy, assess and collect a tax on the personal
income of resident individuals of the county up to a maximum
rate of 1.5%, in increments of 0.25 of 1%.
Section 323. Collections.
Any county imposing a tax under section 322 shall designate
either the tax officer under the Local Tax Enabling Act or the
Department of Revenue as the collector of the countywide
personal income tax. In the performance of the tax collection
duties under this subchapter, the designated tax officer shall
have all the same powers, rights, responsibilities and duties
for the collection of the taxes which may be imposed under the
Local Tax Enabling Act or otherwise by law.
Section 324. Rules and regulations.
Taxes imposed under section 322 will be subject to the rules
and regulations adopted by the department under Article III of
the Tax Reform Code.
Section 325. Procedure and administration.
(a) Ordinance.--The governing body of the county, in order
to impose the tax authorized by section 322, shall adopt an
ordinance which shall refer to this subchapter. Prior to
adopting an ordinance imposing the tax authorized by section
322, the governing body shall give public notice of its intent
to adopt the ordinance in the manner provided in section 316,
and shall conduct at least one public hearing regarding the
proposed adoption of the ordinance.
(b) Delivery.--A certified copy of the ordinance imposing
the tax shall be delivered to the department no later than 90
days prior to the effective date of the ordinance.
(c) Delivery of repeal ordinance.--A certified copy of any
repeal ordinance shall be delivered to the department at least
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30 days prior to the effective date of the repeal.
SUBCHAPTER D
EARNED INCOME AND NET PROFITS TAX
Section 331. Earned income and net profits tax.
If approved by referendum, and in lieu of imposing the taxes
under sections 312 and 322, a county shall have the power to
levy, assess and collect a tax on the earned income and net
profits of resident individuals of the municipality up to a
maximum rate of 1.5%, in increments of 0.25 of 1%. Any county
which imposes a tax under this subsection shall not impose any
tax under section 322.
Section 332. Collections.
Any county imposing a tax under section 331 shall designate
the tax officer who is appointed under the Local Tax Enabling
Act as the collector of the earned income and net profits tax.
In the performance of the tax collection duties under this
subchapter, the designated tax officer shall have all the same
powers, rights, responsibilities and duties for the collection
of the taxes which may be imposed under the Local Tax Enabling
Act or otherwise by law.
Section 333. Rules and regulations.
Taxes imposed under section 331 shall be subject to the rules
and regulations under the Local Tax Enabling Act.
Section 334. Procedure and administration.
The governing body of the county, in order to impose the tax
authorized by section 331, shall adopt an ordinance which shall
refer to this subchapter. Prior to adopting an ordinance
imposing the tax authorized by section 331, the governing body
shall give public notice of its intent to adopt the ordinance in
the manner provided by section 306 of the Local Tax Enabling
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Act, and shall conduct at least one public hearing regarding the
proposed adoption of the ordinance.
SUBCHAPTERS E THROUGH I (RESERVED)
CHAPTER 5
CREDITS, EXEMPTIONS AND DEFERRALS
SUBCHAPTER A
CREDITS AND EXEMPTIONS
Section 501. Credits.
The provisions of section 317 of the Local Tax Enabling Act
shall be used to determine any credits under the provisions of
this act for any taxes imposed under section 322 on the earned
income portion of the personal income tax or section 331.
Section 502. Low-income tax provisions.
The provisions of section 304 of the Tax Reform Code shall be
applied in any county which levies a tax under section 322 or
331.
Section 503. Regulations.
Each county shall adopt regulations for the processing of
claims under sections 501 and 502.
SUBCHAPTER B
REAL ESTATE TAX DEFERRAL
Section 511. Legislative intent.
In order to provide additional relief to residential property
owners facing tax increases caused by changes in the millage
rate, assessment rates or method or by a countywide
reassessment, it is the intent of the General Assembly to create
a program which will allow counties and municipalities to defer
the increased portion of real property taxes when certain
conditions are met.
Section 512. Definitions.
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The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Base payment." The amount of property tax paid by an
applicant in the base year.
"Base year." The tax year preceding the first tax year for
which a taxing authority implements the provisions of this
subchapter or the tax year immediately preceding an applicant's
entry into the tax deferral program.
"Claimant." A person who qualifies as a claimant under the
provisions of the former act of March 11, 1971 (P.L.104, No.3),
known as the Senior Citizens Rebate and Assistance Act, whether
or not a claim is filed under that act and whose household
income does not exceed the limit provided for in section 515.
"Homestead." Real property which qualifies as a homestead
under the provisions of the former act of March 11, 1971
(P.L.104, No.3), known as the Senior Citizens Rebate and
Assistance Act, except real property which is rented or leased
to a claimant.
"Household income." All income as defined in the former act
of March 11, 1971 (P.L.104, No.3), known as the Senior Citizens
Rebate and Assistance Act, received by the claimant and by the
claimant's spouse while residing in the homestead during the
calendar year for which a tax deferral is claimed.
"Increases in property taxes." An increase in the property
tax above the base payment, resulting from a millage increase, a
change in the assessment ratio or method or any other reason.
"Taxing authority." A county, city, borough, town or
township in a county that has elected to participate under this
act in accordance with section 303.
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Section 513. Authority.
All taxing authorities shall have the power and authority to
grant annual tax deferrals in the manner provided in this
subchapter.
Section 514. Income eligibility.
(a) First year of enactment.--During the first calendar year
this subchapter takes effect, a claimant shall be eligible for a
tax deferral if the claimant has a household income of $15,000
or less.
(b) Subsequent years.--The amount of household income
provided for in subsection (a) shall be increased by $500 each
calendar year following the calendar year this subchapter takes
effect.
Section 515. Tax deferral.
(a) Amount.--An annual real estate tax deferral granted
under this subchapter shall equal the increase in real property
taxes in excess of the claimant's base payment.
(b) Prohibition.─No tax deferrals shall be granted if the
total amount of deferred taxes, plus the total amount of all
other unsatisfied liens on the homestead of the claimant,
exceeds 85% of the market value of the homestead or if the
outstanding principal on any and all mortgages on the homestead
exceeds 70% of the market value of the homestead. Market value
shall equal assessed value divided by the common level ratio as
most recently determined by the State Tax Equalization Board for
the county in which the property is located.
Section 516. Application procedure.
(a) Initial application.--Any person eligible for a tax
deferral under this subchapter may apply annually to the taxing
authority. In the initial year of application, the following
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information shall be provided in the manner required by the
taxing authority:
(1) A statement of request for the tax deferral.
(2) A certification that the applicant or the applicant
and his or her spouse jointly are the owners in fee simple
and residents of the property upon which the real property
taxes are imposed.
(3) A certification that the applicant's residence is
adequately insured under a homeowner's policy to the extent
of all outstanding liens.
(4) Receipts showing timely payment of the immediately
preceding year's nondeferred real property tax liability.
(5) Proof of income eligibility under section 514.
(b) Subsequent years.--After the initial entry into the
program, a claimant shall remain eligible for tax deferral in
subsequent years so long as the claimant continues to meet the
eligibility requirements of this subchapter.
Section 517. Contents of application.
Any application for a tax deferral distributed to persons
shall contain the following:
(1) A statement that the tax deferral granted under this
subchapter is provided in exchange for a lien against the
homestead of the applicant.
(2) An explanation of the manner in which the deferred
taxes shall become due, payable and delinquent and include,
at a minimum, the consequences of noncompliance with the
provisions of this subchapter.
Section 518. Attachment and satisfaction of liens.
(a) Nature of lien.--All taxes deferred under this
subchapter shall constitute a prior lien on the homestead of the
20090SB1050PN1342 - 29 -
claimant in favor of the taxing authority and shall attach as of
the date and in the same manner as other liens for taxes. The
deferred taxes shall be collected as other liens for taxes, but
the deferred taxes shall be due, payable and delinquent only as
provided in subsection (b), and no interest shall be collected
on the lien.
(b) Payment.--
(1) All or part of the deferred taxes may at any time be
paid to the taxing authority.
(2) In the event that the deferred taxes are not paid by
the claimant or the claimant's spouse during his or her
lifetime or during their continued ownership of the property,
the deferred taxes shall be paid either:
(i) prior to the conveyance of the property to any
third party; or
(ii) prior to the passing of the legal or equitable
title, either by will or by statute, to the heirs of the
claimant or the claimant's spouse.
(3) The surviving spouse of a claimant shall not be
required to pay the deferred taxes by reason of his or her
acquisition of the property due to death of the claimant as
long as the surviving spouse maintains his or her residence
in the property. The surviving spouse may continue to
participate in the tax deferral program in subsequent years
provided he or she is eligible under the provisions of this
subchapter.
SUBCHAPTERS C THROUGH J (RESERVED)
CHAPTER 7
DISPOSITION AND USE OF TAX REVENUES
Section 701. Use of sales tax revenues.
20090SB1050PN1342 - 30 -
(a) Counties.--
(1) In the fiscal year of implementation, each county
that imposes a sales and use tax under this act shall use all
revenues from the tax first to offset any lost revenue to the
county from the taxes prohibited under section 301(b) in an
amount equal to the revenue the county collected from the
prohibited taxes in the immediately preceding fiscal year and
then to reduce the county real property tax by means of:
(i) The universal exemption or the homestead
exemption.
(ii) A reduction in the millage rate.
(iii) A rent and tax rebate program modeled after
the Commonwealth's Property Tax and Rent Rebate Program.
(iv) Any combination of the options under the
foregoing subparagraphs.
(2) Reductions under paragraph (1) shall be done in
accordance with section 704.
(3) The department shall provide to each county that
imposes a sales and use tax an estimate of the total dollar
amount of revenue that the county can expect to receive from
the county's share of the 1% county sales and use tax for the
fiscal year of implementation. The department may charge the
county for the actual costs of calculating the requested
estimates. Guidelines concerning the costs shall be published
in the Pennsylvania Bulletin. In the event the actual amount
of sales and use tax revenue received by a county is less
than the estimate of sales and use tax revenue provided by
the department, the county may increase its real property tax
millage rate to the level necessary to offset any shortfall
resulting from an overestimation of sales and use tax
20090SB1050PN1342 - 31 -
revenue, as certified by the department, in the fiscal year
of implementation.
(b) Municipalities.--
(1) All sales and use tax revenues received by any
municipality shall be first used to offset any lost revenue
from the taxes prohibited under section 301(b), and then used
to reduce the municipal real property tax by means of:
(i) The universal exemption or the homestead
exemption.
(ii) A reduction in the millage rate.
(iii) A rent and tax rebate program modeled after
the Commonwealth's Property Tax and Rent Rebate Program.
(iv) Any combination of the options under the
foregoing subparagraphs.
(2) Reductions under paragraph (1) shall be done in
accordance with section 704.
(3) In the event the actual amount of sales and use tax
revenue received by a municipality is less than the estimate
of sales and use tax revenue provided by the department, the
municipality may increase its real property tax millage rate
to the level necessary to offset any shortfall resulting from
an overestimation of sales and use tax revenue, as certified
by the department, in the fiscal year of implementation.
Section 702. Use of personal or earned income tax revenues.
(a) Counties.--
(1) For the fiscal year of implementation of a newly
imposed income tax, all revenues received by a county shall
first be used to offset any lost revenue to the county from
the taxes prohibited under section 301(b) in an amount equal
to the revenue the county collected from the prohibited taxes
20090SB1050PN1342 - 32 -
in the immediately preceding fiscal year and then to reduce
the municipal real property tax by means of:
(i) The universal exemption or the homestead
exemption.
(ii) A reduction in the millage rate.
(iii) A rent and tax rebate program modeled after
the Commonwealth's Property Tax and Rent Rebate Program.
(iv) Any combination of the options under the
foregoing subparagraphs.
(2) Reductions under paragraph (1) shall be done in
accordance with section 704.
(b) Municipalities.--The disposition of revenue from an
income tax or an increase in the rate of an income tax imposed
by municipalities under the authority of this act shall occur in
the following manner:
(1) In a municipality which currently does not impose an
income tax, all revenues received by the municipality shall
first be used to offset any lost revenue to the municipality
from the taxes prohibited under section 301(b) in an amount
equal to the revenue the municipality collected from the
prohibited taxes in the immediately preceding fiscal year and
then to reduce the municipality's real property tax by means
of:
(i) The universal exemption or the homestead
exemption.
(ii) A reduction in the millage rate.
(iii) A rent and tax rebate program modeled after
the Commonwealth's Property Tax and Rent Rebate Program.
(iv) Any combination of the options under the
foregoing subparagraphs.
20090SB1050PN1342 - 33 -
(2) Reductions under paragraph (1) shall be done in
accordance with section 704.
(3) In municipalities which currently impose an earned
income tax, all revenues received by the municipality in
excess of current revenue, including the existing earned
income tax, shall first be used to offset lost revenue from
the taxes prohibited under section 301(b), and then to reduce
the municipality's real property tax by means of:
(i) The universal exemption or the homestead
exemption.
(ii) A reduction in the millage rate.
(iii) A rent and tax rebate program modeled after
the Commonwealth's Property Tax and Rent Rebate Program.
(iv) Any combination of the options under the
foregoing subparagraphs.
(4) Reductions under paragraph (1) shall be done in
accordance with section 704.
(c) Revenue estimates of department.--The department shall
provide to each taxing jurisdiction that imposes an income tax
under this act an estimate of the total dollar amount of revenue
that the taxing jurisdiction can expect to receive from an
income tax for the fiscal year of implementation. The department
may charge the taxing jurisdiction for the actual costs of
calculating the requested estimates. Guidelines concerning the
costs shall be published in the Pennsylvania Bulletin. In the
event the actual dollar amount of income tax revenue received by
a taxing jurisdiction is less than the estimate of income tax
revenue provided by the department, the taxing jurisdiction may
increase its real property tax millage rate to the level
necessary to offset any shortfall resulting from an
20090SB1050PN1342 - 34 -
overestimation of income tax revenue, as certified by the
department, in the fiscal year of implementation.
Section 703. Revenue limitation exceptions.
(a) Exceptions listed.--The limitations in sections 312, 322
and 331 may not be waived, except in the following cases:
(1) To respond to or recover from an emergency or
disaster declared under 35 Pa.C.S. Pt. V (relating to
emergency management services), for the duration of the
emergency or duration of the disaster or for the costs of the
recovery from the emergency or disaster.
(2) To implement a court order or an administrative
decision of a Federal or State agency. In instances where the
tax increase is necessary to respond to a court order or an
administrative decision of a Federal or State agency
requiring a temporary increase in local expenditures, the
rate increase shall be rescinded following fulfillment of the
court decision.
(3) To respond to a Federal or State statute, regulation
or order adding to or significantly altering responsibilities
and duties or requiring expenditure of county or local funds
to the extent not funded by the Federal or State Government.
This provision shall apply only to a Federal or State
statute, regulation or order taking effect after the
effective date of this act.
(b) Court action.--Prior to any waiver under subsection (a),
approval is required by the court of common pleas in the
judicial district in which the governing body is located. The
following shall apply to any proceedings instituted under this
subsection:
(1) The governing body must prove by clear and
20090SB1050PN1342 - 35 -
convincing evidence the necessity for the waiver.
(2) The court may retain continuing jurisdiction in
these cases and may, on its own motion or on petition of an
interested party, revoke approval for the waiver.
(c) Distressed municipality or county.--This section shall
not be construed to prohibit any municipality or county declared
distressed under the act of July 10, 1987 (P.L.246, No.47),
known as the Municipalities Financial Recovery Act, from
petitioning the court of common pleas for a tax increase in
accordance with section 123(c) of the Municipalities Financial
Recovery Act.
(d) Standing.--Any taxpayer or business shall have standing
as a party to a proceeding under this section as long as the
taxpayer or business resides within or pays real property taxes
to the taxing jurisdiction of the governing body instituting the
action.
Section 704. Methods of reducing real property tax.
(a) General rule.--Any county or municipality that levies or
receives revenue from a county sales and use tax or an income
tax under the provisions of this act may achieve the required
reduction of the real property tax by exercising one or any
combination of the options contained in the following
paragraphs:
(1) The taxing jurisdiction may exclude from taxation by
means of the homestead exemption a fixed amount of the
assessed value of each homestead property in the taxing
jurisdiction within the limits, if any, imposed by Article
VIII of the Constitution of Pennsylvania, as provided in
subsection (b). The property tax shall be levied at the same
millage rate as levied by the taxing jurisdiction for the
20090SB1050PN1342 - 36 -
fiscal year immediately preceding the year of implementation
of the sales and use tax or income tax, as appropriate,
imposed under this act.
(2) The taxing jurisdiction may exclude from taxation by
means of the universal exemption a fixed amount of the
assessed value of each property in the taxing jurisdiction
within the limits, if any, imposed by Article VIII of the
Constitution of Pennsylvania. The property tax shall be
levied at the same millage rate as levied by the taxing
jurisdiction for the fiscal year immediately preceding the
year of implementation of the sales and use tax or income
tax, as appropriate, imposed under this act.
(3) The taxing jurisdiction may reduce the millage rate
of the real property tax generally to the same rate on all
taxable real property. The reduction in millage rate shall be
calculated based on the millage rate levied by the taxing
jurisdiction for the fiscal year immediately preceding the
year of implementation of the sales and use tax or income
tax, as appropriate, imposed under this act.
(4) The taxing jurisdiction may reduce the millage rate
of the real property tax generally to the same rate on all
taxable real property in combination with either the
homestead exemption as provided under paragraph (1) or the
universal exemption as provided under paragraph (2). The
reduction in the real property millage rate shall be
calculated based on the millage rate levied by the taxing
jurisdiction for the fiscal year immediately preceding the
year of implementation of the sales and use tax or income
tax, as appropriate, imposed under this act.
(b) Limitations.--
20090SB1050PN1342 - 37 -
(1) Any taxing jurisdiction which elects to reduce the
real property tax by means of the homestead exemption shall
reduce the assessed value of each homestead in the taxing
jurisdiction by a fixed amount established by its governing
body up to the maximum limits contained in section 2(b) of
Article VIII of the Constitution of Pennsylvania.
(2) After a countywide revision of assessments within a
county or municipality which has established a homestead
exemption, the governing body of the taxing jurisdiction
shall adjust the amount of the homestead exemption as
follows:
(i) if the county changes its assessment base by
applying a change in the established predetermined ratio,
the homestead exemption shall be adjusted by the percent
change between the existing predetermined ratio and the
newly established predetermined ratio; or
(ii) if the county performs a countywide revision of
assessments by revaluing all properties and applying an
established predetermined ratio, the homestead exemption
shall be adjusted by dividing the homestead exemption for
the year preceding the countywide revision of assessments
by the common level ratio and multiplying the quotient of
that calculation by the newly established predetermined
ratio.
(3) If after reducing the real property tax by means of
either the homestead exemption or the universal exemption
there are any revenues remaining from a sales and use tax or
income tax imposed under this act, the remaining revenues
shall be used to further reduce the real property tax by
means of a uniform reduction in the millage rate.
20090SB1050PN1342 - 38 -
(c) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Common level ratio." The ratio of assessed value to current
market value used generally in the county as last determined by
the State Tax Equalization Board under the act of June 27, 1947
(P.L.1046, No.447), referred to as the State Tax Equalization
Board Law.
"Established predetermined ratio." The ratio of assessed
value to market value established by the board of county
commissioners and uniformly applied in determining assessed
value in any year.
"Homestead." A dwelling, and as much of the land surrounding
it as is reasonably necessary for the use of a dwelling as a
home, occupied as the principal dwelling place by the owner or
owners thereof. The term also includes premises occupied by
reason of ownership by individuals as defined in section 301 of
the Tax Reform Code. The term also includes premises occupied by
reason of ownership in a cooperative housing corporation, mobile
homes which are assessed as realty for local property tax
purposes and the land, if owned by the person claiming the
homestead property exemption upon which the mobile home is
situated, and other similar living accommodations, as well as
part of a multidwelling or multipurpose building and a part of
the land on which it is built. The term also includes premises
occupied by reason of ownership of a dwelling located on land
owned by a nonprofit incorporated association of which the
person claiming the homestead property exemption is a member, if
the person is required to pay a pro rata share of the property
taxes levied against the association's land. As used in this
20090SB1050PN1342 - 39 -
subsection, the term "owner" includes a person in possession
under a contract of sale, deed of trust, life estate, joint
tenancy or tenancy in common or by reason of statutes of descent
or distribution.
Section 705. Estimates of distributions and revenues.
(a) General rule.--Estimates and proposed tax rates utilized
by a county, municipality or local study commission shall be
formulated so that in the fiscal year of implementation, the
total budgeted revenues of a county or municipality, including
the funds distributed under section 318, do not exceed the total
budgeted revenues in the prior fiscal year. Increases in the tax
base which occur as a natural result of social or economic
factors such as increases in property values, population, retail
sales or other taxable activities, and not as a result of
changes in rates of taxation, may be excluded from the
formulation.
(b) Refund of excess.--If, in the fiscal year of
implementation, revenues from the taxes authorized by this act
cause the total budgeted revenues of a county or municipality,
including funds distributed under section 318, to exceed the
budgeted revenues of the prior fiscal year by more than 2%, the
county or municipality shall return such excess to the taxpayers
and adjust its tax rates to comply with subsection (a) in the
next fiscal year.
(c) Use of excess.--If, in the fiscal year of
implementation, a county's or municipality's total budgeted
revenues do not exceed the prior fiscal year's budgeted revenues
by more than 2%, any excess shall be used to retire debt or
pension obligations of the government entity.
CHAPTER 9
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REGISTER FOR CERTAIN TAXES
Section 901. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Community and Economic
Development of the Commonwealth.
Section 902. Register for taxes under this act.
(a) General rule.--It shall be the duty of the department to
have available an official continuing register supplemented
annually of all sales and use, personal income, earned income
and net profits and municipal service taxes levied under this
act.
(b) Contents of register.--The register and its supplements
shall list:
(1) The counties or municipalities levying personal
income tax, earned income and net profits tax or sales and
use tax under this act.
(2) The rate of tax as stated in the ordinance levying
the tax.
(3) The rate on taxpayers.
(4) The name and address of the tax officer responsible
for administering the collection of the tax and from whom
information, forms for reporting and copies of rules and
regulations are available.
Section 903. Information for register.
Information for the register shall be furnished by the chief
clerk or secretary of each county or municipality to the
department in such manner and on such forms as the department
may prescribe. The information must be received by the
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department no later than July 15 of each year following the
first year of imposition to show new tax enactments, repeals and
changes. Failure to comply with this date for filing may result
in the omission of the tax levy from the register for that year.
Failure of the department to receive information of taxes
continued without change may be construed by the department to
mean that the information contained in the previous register
remains in force.
Section 904. Availability and effective period of register.
The department shall have the register, with such annual
supplements as may be required by new tax enactments, repeals or
changes, available upon request no later than August 15 of each
year. The effective period for each register shall be from July
1 of the year in which it is issued to June 30 of the following
year.
Section 905. Effect of nonfiling.
Employers shall not be required by any ordinance to withhold
from the compensation of their employees any personal income tax
or earned income and net profits tax imposed under the
provisions of this act which is not listed in the register or to
make reports of compensation in connection with taxes not so
listed. If the register is not available by August 15, the
register of the previous year shall continue temporarily in
effect for an additional period of not more than one year.
Section 906. Effect of chapter on liability of taxpayer.
The provisions of this chapter shall not affect the liability
of any taxpayer for taxes lawfully imposed under this act.
CHAPTER 17
MISCELLANEOUS PROVISIONS
Section 1701. Effective date.
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This act shall take effect immediately.
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