PRIOR PRINTER'S NOS. 649, 2326, 2683 PRINTER'S NO. 4707
4353
No. 592 Session of 2001
INTRODUCED BY EGOLF, BENNINGHOFF, DeLUCA, DeWEESE, T. ARMSTRONG,
READSHAW, YOUNGBLOOD, NAILOR, BELARDI, CORNELL, LYNCH,
HENNESSEY, CALTAGIRONE, GEIST, GRUCELA, PHILLIPS, M. BAKER,
TRAVAGLIO, VANCE, GEORGE, SOLOBAY, FEESE, TULLI, LAUGHLIN,
DAILEY, ORIE, CAPPELLI, WOJNAROSKI, ZUG, DALEY, BELFANTI,
WILT, LEDERER, STABACK, WOGAN, TIGUE, DALLY, FRANKEL, SHANER,
JADLOWIEC, FAIRCHILD, FORCIER, CLARK, SCHRODER, S. MILLER,
FICHTER, SCHULER, PISTELLA, BASTIAN, E. Z. TAYLOR, WALKO,
LEH, ROHRER, SURRA, MARSICO, SATHER, CIVERA, McNAUGHTON,
WASHINGTON, T. STEVENSON, KELLER, BARRAR, BARD, METCALFE,
HUTCHINSON, COLAFELLA, STERN, HASAY, HESS, CLYMER, MICHLOVIC,
LUCYK, PETRARCA, COSTA, HORSEY, SEMMEL, SAMUELSON, HARHAI,
GABIG, HABAY, MAHER, GORDNER AND DiGIROLAMO, FEBRUARY 8, 2001
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
NOVEMBER 26, 2002
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," AUTHORIZING LIMITED REAL PROPERTY <--
6 ASSESSMENT GROWTH RESTRICTIONS IN CITIES OF THE FIRST CLASS;
7 PROVIDING FOR THE IMPOSITION AND COLLECTION OF AN EARNED
8 INCOME AND NET PROFITS TAX OR INCOME TAX BY SCHOOL DISTRICTS
9 AFTER APPROVAL BY THE ELECTORS; AND further providing for the
10 display of the United States flag and relating ceremonies.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 771 of the act of March 10, 1949 (P.L.30, <--
14 No.14), known as the Public School Code of 1949, amended January
15 8, 1952 (1951 P.L.1856, No.497), is amended to read:
1 SECTION 1. THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN <--
2 AS THE PUBLIC SCHOOL CODE OF 1949, IS AMENDED BY ADDING A
3 SECTION TO READ:
4 SECTION 651.1. LIMITED REAL PROPERTY ASSESSMENT GROWTH
5 RESTRICTIONS PERMITTED.--(A) THE COUNCIL OF A CITY OF THE FIRST
6 CLASS MAY, BY ORDINANCE, ESTABLISH AN ANNUAL LIMIT ON THE
7 PERCENTAGE INCREASE IN THE ASSESSED VALUE OF EACH PARCEL OF REAL
8 PROPERTY WITHIN SUCH CITY FROM THE IMMEDIATE PRIOR YEAR. IF SUCH
9 AN ORDINANCE IS ENACTED, COUNCIL MUST CHOOSE A SINGLE ASSESSMENT
10 LIMITATION FOR THE TWO (2) YEAR PERIOD THAT IS NOT LESS THAN
11 FOUR PER CENTUM (4%) OR MORE THAN TEN PER CENTUM (10%) APPLIED
12 UNIFORMLY TO EACH PARCEL OF REAL PROPERTY. NOTWITHSTANDING ANY
13 OTHER LAW, ORDINANCE OR CHARTER PROVISION TO THE CONTRARY, THE
14 ORDINANCES AUTHORIZED UNDER THIS SECTION MAY BE MADE IMMEDIATELY
15 EFFECTIVE AND APPLICABLE TO REAL PROPERTY TAXES DUE IN THE
16 FISCAL YEAR IN WHICH SUCH ORDINANCES ARE ENACTED.
17 (B) AFTER ENACTMENT OF AN ORDINANCE AUTHORIZED UNDER
18 SUBSECTION (A), THE BOARD OF REVISION OF TAXES SHALL RETURN AN
19 ASSESSED VALUE FOR EACH PARCEL OF REAL PROPERTY THAT IS EQUAL TO
20 THE LESSER OF THE CURRENT ASSESSED VALUE WITHOUT THE LIMITATION
21 IMPOSED BY THE FIXED PERCENTAGE OR THE ASSESSED VALUE AS LIMITED
22 BY THE FIXED PERCENTAGE INCREASE.
23 (C) THE ASSESSMENT LIMITATION AUTHORIZED UNDER THIS SECTION
24 SHALL NOT APPLY TO:
25 (1) ANY INCREASED ASSESSMENT OCCURRING BECAUSE OF NEW
26 CONSTRUCTION, AN IMPROVEMENT TO THE AFFECTED REAL PROPERTY OR AN
27 OPEN MARKET SALE OF THE REAL PROPERTY.
28 (2) ANY TAX ON THE USE OR OCCUPANCY OF REAL ESTATE.
29 (D) THE PROVISIONS OF THIS SECTION SHALL BE APPLICABLE TO
30 ASSESSMENTS RETURNED BY THE BOARD OF REVISION OF TAXES DURING
20010H0592B4707 - 2 -
1 CALENDAR YEAR 2002 FOR TAX YEAR 2003 AND DURING CALENDAR YEAR
2 2003 FOR TAX YEAR 2004.
3 (E) THIS SECTION SHALL EXPIRE JANUARY 1, 2005.
4 SECTION 2. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
5 ARTICLE VI-A
6 TAXATION BY SCHOOL DISTRICTS
7 (A) GENERAL PROVISIONS.
8 SECTION 601-A. DEFINITIONS.
9 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
10 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
11 CONTEXT CLEARLY INDICATES OTHERWISE:
12 "CURRENT YEAR." THE FISCAL YEAR FOR WHICH THE TAX IS LEVIED.
13 "DOMICILE." AS DEFINED IN SECTION 13 OF THE ACT OF DECEMBER
14 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
15 ACT.
16 "EARNED INCOME." THE CLASSES OF INCOME DEFINED AS EARNED
17 INCOME IN SECTION 13 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257,
18 NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
19 "EMPLOYER." AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
20 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
21 "GOVERNING BODY." A BOARD OF SCHOOL DIRECTORS OF A SCHOOL
22 DISTRICT.
23 "HOMESTEAD PROPERTY." A HOMESTEAD FOR WHICH AN APPLICATION
24 HAS BEEN SUBMITTED AND APPROVED UNDER 53 PA.C.S. § 8584
25 (RELATING TO ADMINISTRATION AND PROCEDURE).
26 "LOCAL TAX ENABLING ACT." THE ACT OF DECEMBER 31, 1965
27 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
28 "LOCAL TAX REVENUE." THE REVENUE FROM TAXES ACTUALLY LEVIED
29 AND ASSESSED BY A SCHOOL DISTRICT. THE TERM DOES NOT INCLUDE
30 INTEREST OR DIVIDEND EARNINGS, FEDERAL OR STATE GRANTS,
20010H0592B4707 - 3 -
1 CONTRACTS OR APPROPRIATIONS, INCOME GENERATED FROM OPERATIONS OR
2 ANY OTHER SOURCE THAT IS NOT DERIVED FROM TAXES LEVIED AND
3 ASSESSED BY A SCHOOL DISTRICT.
4 "MUNICIPALITY." AS DEFINED IN 1 PA.C.S. § 1991 (RELATING TO
5 DEFINITIONS).
6 "NET PROFITS." THE CLASSES OF INCOME DEFINED AS NET PROFITS
7 IN SECTION 13 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257,
8 NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
9 "PERSONAL INCOME." INCOME ENUMERATED IN SECTION 303 OF THE
10 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
11 OF 1971, AS RETURNED TO AND ASCERTAINED BY THE DEPARTMENT OF
12 REVENUE, SUBJECT, HOWEVER, TO ANY CORRECTION THEREOF FOR FRAUD,
13 EVASION OR ERROR AS FINALLY DETERMINED BY THE COMMONWEALTH.
14 "PRECEDING YEAR." THE FISCAL YEAR BEFORE THE CURRENT YEAR.
15 "RESIDENT INDIVIDUAL." AN INDIVIDUAL WHO IS DOMICILED IN A
16 SCHOOL DISTRICT.
17 "SCHOOL DISTRICT." A SCHOOL DISTRICT OF THE FIRST CLASS A,
18 SECOND CLASS, THIRD CLASS OR FOURTH CLASS, INCLUDING ANY
19 INDEPENDENT SCHOOL DISTRICT. THE TERM SHALL NOT INCLUDE A SCHOOL
20 DISTRICT OF THE FIRST CLASS COTERMINOUS WITH A CITY OF THE FIRST
21 CLASS.
22 "STATEWIDE AVERAGE WEEKLY WAGE." THAT AMOUNT DETERMINED
23 ANNUALLY FOR EACH CALENDAR YEAR BY THE DEPARTMENT OF LABOR AND
24 INDUSTRY UNDER SECTION 105.1 OF THE ACT OF JUNE 2, 1915
25 (P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT.
26 "SUCCEEDING YEAR." THE FISCAL YEAR FOLLOWING THE CURRENT
27 YEAR.
28 "TAX REFORM CODE." THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
29 KNOWN AS THE TAX REFORM CODE OF 1971.
30 SECTION 602-A. SCOPE AND LIMITATIONS.
20010H0592B4707 - 4 -
1 (A) GENERAL RULE.--IT IS THE INTENT OF THIS ARTICLE TO
2 CONFER UPON EACH SCHOOL DISTRICT THE POWER TO LEVY, ASSESS AND
3 COLLECT THE TAXES SET FORTH IN SUBDIVISION (C), SUBJECT TO THE
4 LIMITATIONS AND PROCEDURES PROVIDED IN THIS ARTICLE.
5 (B) REAL ESTATE TRANSFER TAXES.--THIS ARTICLE DOES NOT
6 AFFECT THE POWERS OF A SCHOOL DISTRICT TO LEVY, ASSESS AND
7 COLLECT A REAL ESTATE TRANSFER TAX, INCLUDING ANY REAL ESTATE
8 TRANSFER TAX LEVIED UNDER THE AUTHORITY OF SECTION 652.1(A)(4).
9 (C) OCCUPATION TAX ELIMINATION.--THIS ARTICLE SHALL NOT
10 AFFECT THE POWER OF A SCHOOL DISTRICT TO DO ANY OF THE
11 FOLLOWING:
12 (1) TO ELECT TO PLACE A REFERENDUM QUESTION ON THE
13 BALLOT PURSUANT TO THE ACT OF JUNE 22, 2001 (P.L.374, NO.24),
14 KNOWN AS THE OPTIONAL OCCUPATION TAX ELIMINATION ACT. A
15 SCHOOL DISTRICT MAY PLACE SUCH A REFERENDUM QUESTION ON THE
16 BALLOT AT THE SAME MUNICIPAL ELECTION AS A REFERENDUM
17 QUESTION PLACED ON THE BALLOT PURSUANT TO SECTION 612-A.
18 (2) TO ELIMINATE ITS OCCUPATION TAX PURSUANT TO THE
19 OPTIONAL OCCUPATION TAX ELIMINATION ACT.
20 SECTION 603-A. PREEMPTION.
21 NO ACT OF THE GENERAL ASSEMBLY WILL VACATE OR PREEMPT ANY
22 RESOLUTION ADOPTED UNDER THIS ARTICLE PROVIDING FOR THE
23 IMPOSITION OF A TAX BY A SCHOOL DISTRICT UNLESS THE ACT OF THE
24 GENERAL ASSEMBLY EXPRESSLY VACATES OR PREEMPTS THE AUTHORITY TO
25 ADOPT THE RESOLUTION.
26 SECTION 604-A. CERTAIN RATES OF TAXATION LIMITED.
27 IF A MUNICIPALITY AND SCHOOL DISTRICT BOTH IMPOSE AN EARNED
28 INCOME AND NET PROFITS TAX ON THE SAME INDIVIDUAL UNDER THE
29 LOCAL TAX ENABLING ACT AND THE MUNICIPALITY AND SCHOOL DISTRICT
30 ARE LIMITED TO OR HAVE AGREED UPON A DIVISION OF THE TAX RATE IN
20010H0592B4707 - 5 -
1 ACCORDANCE WITH SECTION 8 OF THE LOCAL TAX ENABLING ACT, THEN
2 THE MUNICIPALITY THAT CONTINUES TO LEVY THE EARNED INCOME AND
3 NET PROFITS TAX UNDER THE LOCAL TAX ENABLING ACT SHALL REMAIN
4 SUBJECT TO THAT LIMITATION OR AGREEMENT IN THE EVENT THAT THE
5 SCHOOL DISTRICT OPTS TO IMPOSE AN INCOME TAX UNDER SUBDIVISION
6 (C).
7 (B) TAX AUTHORIZATION PROCEDURES.
8 SECTION 611-A. GENERAL TAX AUTHORIZATION.
9 (A) GENERAL RULE.--SUBJECT TO SECTION 612-A AND EXCEPT AS
10 PROVIDED IN SUBSECTIONS (B) AND (C), EACH SCHOOL DISTRICT SHALL
11 HAVE THE POWER AND MAY BY RESOLUTION LEVY, ASSESS AND COLLECT OR
12 PROVIDE FOR THE LEVYING, ASSESSMENT AND COLLECTION OF THE TAXES
13 AUTHORIZED UNDER SUBDIVISION (C).
14 (B) EXCLUSIONS.--NO SCHOOL DISTRICT WHICH LEVIES A TAX
15 AUTHORIZED BY SUBDIVISION (C) SHALL HAVE ANY POWER OR AUTHORITY
16 TO LEVY, ASSESS OR COLLECT:
17 (1) THE EARNED INCOME AND NET PROFITS TAX LEVIED UNDER
18 THE LOCAL TAX ENABLING ACT.
19 (2) AN EARNED INCOME TAX UNDER THE ACT OF AUGUST 24,
20 1961 (P.L.1135, NO.508), REFERRED TO AS THE FIRST CLASS A
21 SCHOOL DISTRICT EARNED INCOME TAX ACT, OR UNDER THE
22 ADDITIONAL AUTHORITY IN SECTION 652.1(A)(2).
23 (C) LIMITED TAXES.--NO SCHOOL DISTRICT WHICH LEVIES A TAX
24 AUTHORIZED BY SUBDIVISION (C) SHALL HAVE ANY POWER OR AUTHORITY
25 TO LEVY, ASSESS OR COLLECT A TAX LISTED IN PARAGRAPHS (1)
26 THROUGH (5) UNLESS THE SCHOOL DISTRICT LEVIED, ASSESSED OR
27 COLLECTED THE TAX PRIOR TO THE ADOPTION OF THE REFERENDUM
28 REQUIRED TO LEVY A TAX UNDER SUBDIVISION (C). NO SCHOOL DISTRICT
29 WHICH LEVIES A TAX AUTHORIZED BY SUBDIVISION (C) SHALL HAVE ANY
30 POWER OR AUTHORITY TO INCREASE THE RATE OF ANY TAX LISTED IN
20010H0592B4707 - 6 -
1 PARAGRAPHS (1) THROUGH (5).
2 (1) A TAX BASED UPON A FLAT RATE OR ON A MILLAGE RATE ON
3 AN ASSESSED VALUATION OF A PARTICULAR TRADE, OCCUPATION OR
4 PROFESSION, COMMONLY KNOWN AS AN OCCUPATION TAX.
5 (2) A TAX AT A SET OR FLAT RATE UPON PERSONS EMPLOYED
6 WITHIN THE TAXING DISTRICT, COMMONLY KNOWN AS AN OCCUPATIONAL
7 PRIVILEGE TAX.
8 (3) ANY TAX UNDER SECTION 652.1(A)(4), EXCEPT AS IT
9 PERTAINS TO REAL ESTATE TRANSFER TAXES.
10 (4) ANY OTHER TAX AUTHORIZED OR PERMITTED UNDER THE
11 LOCAL TAX ENABLING ACT.
12 (5) A PER CAPITA, POLL, RESIDENCE OR SIMILAR HEAD TAX.
13 (D) DELINQUENT TAXES.--THE PROVISIONS OF SUBSECTIONS (B) AND
14 (C) SHALL NOT APPLY TO COLLECTION OF DELINQUENT TAXES.
15 SECTION 612-A. PROCEDURES TO ELECT PARTICIPATION.
16 (A) GENERAL RULE.--IN ORDER TO LEVY A TAX UNDER SUBDIVISION
17 (C), A GOVERNING BODY SHALL USE THE PROCEDURES SET FORTH IN THIS
18 SECTION.
19 (B) PUBLIC REFERENDUM REQUIRED.--SUBJECT TO THE NOTICE AND
20 PUBLIC HEARING REQUIREMENTS OF SUBSECTION (C), A GOVERNING BODY
21 MAY LEVY A TAX UNDER SUBDIVISION (C) ONLY BY FIRST OBTAINING THE
22 APPROVAL OF THE ELECTORATE OF THE AFFECTED SCHOOL DISTRICT IN A
23 PUBLIC REFERENDUM AT ONLY THE MUNICIPAL ELECTION PRECEDING THE
24 FISCAL YEAR WHEN THE TAX WILL BE INITIALLY IMPOSED.
25 (C) NOTICE AND HEARING REQUIREMENTS.--PRIOR TO APPROVING A
26 RESOLUTION TO PLACE A REFERENDUM ON THE BALLOT UNDER THIS
27 SECTION, THE GOVERNING BODY SHALL:
28 (1) GIVE PUBLIC NOTICE OF ITS INTENT TO ADOPT THE
29 RESOLUTION IN THE MANNER PROVIDED BY SECTION 4 OF THE LOCAL
30 TAX ENABLING ACT.
20010H0592B4707 - 7 -
1 (2) CONDUCT AT LEAST ONE PUBLIC HEARING REGARDING THE
2 CONTENT OF THE RESOLUTION.
3 (D) REFERENDUM QUESTION.--THE REFERENDUM QUESTION MUST STATE
4 THE INITIAL RATE OF THE PROPOSED TAX, THE REASON FOR THE TAX AND
5 THE AMOUNT OF PROPOSED LOCAL TAX REVENUE GROWTH, IF ANY, IN THE
6 FIRST FISCAL YEAR FOLLOWING ADOPTION OF THE REFERENDUM,
7 EXPRESSED AS A PERCENT INCREASE OVER THE PRIOR YEAR'S LOCAL TAX
8 REVENUE. ANY INCREASE IN THE LOCAL TAX REVENUE BETWEEN THE FIRST
9 FISCAL YEAR FOLLOWING ADOPTION OF THE REFERENDUM AND THE PRIOR
10 YEAR'S LOCAL TAX REVENUE SHALL NOT EXCEED THE ANNUAL PERCENT
11 CHANGE IN THE STATEWIDE AVERAGE WEEKLY WAGE FOR THE PRIOR YEAR.
12 THE QUESTION SHALL BE IN CLEAR LANGUAGE THAT IS READILY
13 UNDERSTANDABLE BY A LAYPERSON. FOR THE PURPOSE OF ILLUSTRATION,
14 A REFERENDUM QUESTION MAY BE FRAMED AS FOLLOWS:
15 DO YOU FAVOR THE IMPOSITION OF AN X% (NAME OF TAX) TO BE
16 USED TO REDUCE REAL PROPERTY TAXES BY X% BY MEANS OF A
17 HOMESTEAD EXCLUSION AND PROVIDE FOR A ONE-TIME REVENUE
18 INCREASE OF X% OVER THE PRECEDING FISCAL YEAR?
19 (E) PLAIN LANGUAGE STATEMENT.--A NONLEGAL INTERPRETATIVE
20 STATEMENT MUST ACCOMPANY THE QUESTION IN ACCORDANCE WITH SECTION
21 201.1 OF THE ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS
22 THE PENNSYLVANIA ELECTION CODE, THAT INCLUDES THE FOLLOWING: THE
23 INITIAL RATE OF THE TAX AND THE MAXIMUM ALLOWABLE RATE OF THE
24 TAX IMPOSED UNDER SUBDIVISION (C); THE ESTIMATED REVENUES TO BE
25 DERIVED FROM THE INITIAL RATE OF THE TAX IMPOSED UNDER
26 SUBDIVISION (C); THE AMOUNT OF PROPOSED REVENUE GROWTH, IF ANY,
27 IN THE FIRST FISCAL YEAR FOLLOWING ADOPTION OF THE REFERENDUM;
28 THE ESTIMATED REDUCTION IN REAL PROPERTY TAXES AND THE METHOD TO
29 BE USED TO REDUCE REAL PROPERTY TAXES; THE CLASS OR CLASSES OF
30 REAL PROPERTY FOR WHICH REAL PROPERTY TAXES WOULD BE REDUCED;
20010H0592B4707 - 8 -
1 AND THE ESTIMATED AMOUNT OF REAL PROPERTY TAX REDUCTION BY
2 CLASS, EXPRESSED AS AN AVERAGE PERCENT REDUCTION BY CLASS.
3 (F) REFERENDUM RESULTS.--IF A MAJORITY OF THE ELECTORS
4 VOTING ON THE QUESTION VOTE "YES," THEN THE GOVERNING BODY:
5 (1) SHALL BE REQUIRED TO IMPLEMENT THE TAXES STATED IN
6 THE REFERENDUM QUESTION AND IMPLEMENT AN EXCLUSION FOR
7 HOMESTEAD PROPERTY AS REQUIRED UNDER SUBDIVISION (C).
8 (2) SHALL BE REQUIRED TO SUBMIT INCREASES IN THE RATE OF
9 THE REAL PROPERTY TAX TO THE ELECTORS OF THE SCHOOL DISTRICT
10 AS PROVIDED UNDER SECTION 614-A.
11 IF A MAJORITY OF THE ELECTORS VOTING ON THE QUESTION VOTE "NO,"
12 THE GOVERNING BODY SHALL NOT IMPOSE A TAX UNDER SUBDIVISION (C).
13 (G) REFERENDUM PROCEEDINGS.--PROCEEDINGS UNDER THIS SECTION
14 SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF JUNE 3,
15 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA ELECTION
16 CODE.
17 SECTION 613-A. PROCEDURES TO END PARTICIPATION.
18 (A) REFERENDUM REQUIRED.--A GOVERNING BODY MAY, AFTER A
19 PERIOD OF THREE FULL FISCAL YEARS OF PARTICIPATION UNDER THIS
20 ARTICLE, ELECT TO END PARTICIPATION UNDER THIS ARTICLE BY
21 OBTAINING THE APPROVAL OF THE ELECTORS OF THE SCHOOL DISTRICT IN
22 A PUBLIC REFERENDUM AT A MUNICIPAL ELECTION. THE PROVISIONS OF
23 SECTION 612-A(C) AND (G) SHALL APPLY TO A REFERENDUM UNDER THIS
24 SECTION.
25 (B) REFERENDUM QUESTION.--THE REFERENDUM QUESTION SHALL
26 INCLUDE A LISTING OF THE TAXES TO BE REPEALED, A LISTING OF THE
27 TAXES THE GOVERNING BODY HAS THE AUTHORITY TO IMPOSE OR TO
28 INCREASE AND A SPECIFIC REFERENCE TO THE REMOVAL OF LIMITATIONS
29 ON PROPERTY TAX INCREASES.
30 (C) PLAIN LANGUAGE STATEMENT.--A NONLEGAL INTERPRETIVE
20010H0592B4707 - 9 -
1 STATEMENT MUST ACCOMPANY THE QUESTION IN ACCORDANCE WITH SECTION
2 201.1 OF THE ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS
3 THE PENNSYLVANIA ELECTION CODE.
4 (D) REFERENDUM RESULTS.--IF A MAJORITY OF THE ELECTORS
5 VOTING ON THE QUESTION VOTE "YES," THEN THE GOVERNING BODY:
6 (1) SHALL BE REQUIRED TO REPEAL THE TAXES AUTHORIZED
7 UNDER SUBDIVISION (C) AND MAY LEVY, ASSESS AND COLLECT THE
8 TAXES PROHIBITED BY SECTION 611-A(B) AND (C) TO THE EXTENT
9 PERMITTED BY LAW; AND
10 (2) SHALL NOT BE REQUIRED TO SUBMIT INCREASES IN THE
11 RATE OF THE REAL PROPERTY TAX TO A REFERENDUM AS PROVIDED
12 UNDER SECTION 614-A.
13 IF A MAJORITY OF THE ELECTORS VOTING ON THE QUESTION VOTE "NO,"
14 THE GOVERNING BODY SHALL CONTINUE TO BE SUBJECT TO THE
15 PROVISIONS OF THIS ARTICLE.
16 SECTION 614-A. REFERENDUM FOR PROPERTY TAX INCREASES.
17 (A) GENERAL RULE.--EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND
18 (D), A GOVERNING BODY THAT ELECTS TO LEVY A TAX UNDER
19 SUBDIVISION (C) PURSUANT TO SECTION 612-A SHALL NOT INCREASE THE
20 RATE OF ITS TAX ON REAL PROPERTY WITHOUT FIRST OBTAINING THE
21 APPROVAL OF THE ELECTORATE OF THE AFFECTED SCHOOL DISTRICT IN A
22 REFERENDUM AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE
23 FISCAL YEAR OF THE PROPOSED TAX INCREASE.
24 (B) DISAPPROVAL.--WHENEVER THE ELECTORATE FAILS TO APPROVE
25 THE PROPOSED REFERENDUM QUESTION TO INCREASE THE RATE OF TAX ON
26 REAL PROPERTY UNDER SUBSECTION (A), THE GOVERNING BODY SHALL BE
27 LIMITED TO THE RATE OF TAX PERMITTED TO BE IN EFFECT AFTER THE
28 ALLOWANCE OF THE EXCEPTIONS PERMITTED IN SUBSECTIONS (C) AND
29 (D).
30 (C) EXCEPTION TO GENERAL RULE.--THE PROVISIONS OF SUBSECTION
20010H0592B4707 - 10 -
1 (A) SHALL NOT APPLY TO AN INCREASE IN THE RATE OF THE REAL
2 PROPERTY TAX THAT DOES NOT CAUSE LOCAL TAX REVENUE, EXCLUDING
3 REAL PROPERTY TAXES TO BE LEVIED ON NEWLY CONSTRUCTED BUILDINGS
4 OR STRUCTURES OR ON INCREASED VALUATIONS BASED ON NEW
5 IMPROVEMENTS MADE TO EXISTING HOUSES, TO INCREASE BY MORE THAN
6 THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE IN
7 THE PRECEDING YEAR. PRIOR TO ANY INCREASE UNDER THIS SUBSECTION,
8 THE GOVERNING BODY MUST CERTIFY TO THE DEPARTMENT OF EDUCATION
9 THE ESTIMATES OF TOTAL LOCAL TAX REVENUES USED IN THE
10 CALCULATION UNDER THIS SUBSECTION. THE DEPARTMENT OF EDUCATION
11 MAY, ON ITS OWN INITIATIVE OR ON PETITION OF A PERSON HAVING
12 STANDING UNDER SUBSECTION (F), REVISE THE ESTIMATES CERTIFIED BY
13 THE GOVERNING BODY AND REDUCE THE ALLOWABLE INCREASE IN THE RATE
14 OF THE REAL PROPERTY TAX UNDER THIS SUBSECTION.
15 (D) REFERENDUM EXCEPTIONS.--THE PROVISIONS OF SUBSECTION (A)
16 SHALL NOT APPLY TO INCREASES IN THE RATE OF TAX ON REAL PROPERTY
17 IN THIS SUBSECTION ONLY IF THE EXCEPTION TO THE GENERAL RULE
18 UNDER SUBSECTION (C) HAS BEEN UTILIZED, IF APPLICABLE, TO THE
19 MAXIMUM AMOUNT ALLOWED:
20 (1) TO RESPOND TO OR RECOVER FROM AN EMERGENCY OR
21 DISASTER DECLARED PURSUANT TO 35 PA.C.S. § 7301 (RELATING TO
22 GENERAL AUTHORITY OF GOVERNOR) OR 75 PA.C.S. § 6108 (RELATING
23 TO POWER OF GOVERNOR DURING EMERGENCY), ONLY FOR THE DURATION
24 OF THE EMERGENCY OR DISASTER AND FOR THE COSTS OF THE
25 RECOVERY FROM THE EMERGENCY OR DISASTER.
26 (2) TO IMPLEMENT A COURT ORDER OR AN ADMINISTRATIVE
27 ORDER FROM A FEDERAL OR STATE AGENCY THAT REQUIRES THE
28 EXPENDITURE OF FUNDS THAT EXCEED CURRENT AVAILABLE REVENUES.
29 THE RATE INCREASE SHALL BE RESCINDED FOLLOWING FULFILLMENT OF
30 THE COURT ORDER OR ADMINISTRATIVE ORDER.
20010H0592B4707 - 11 -
1 (3) TO PAY INTEREST AND PRINCIPAL ON ANY INDEBTEDNESS
2 INCURRED UNDER 53 PA.C.S. (RELATING TO MUNICIPALITIES
3 GENERALLY). HOWEVER, IN NO CASE MAY A SCHOOL DISTRICT INCUR
4 ADDITIONAL DEBT UNDER THIS PARAGRAPH, EXCEPT FOR THE
5 REFINANCING OF EXISTING DEBT, INCLUDING THE PAYMENT OF COSTS
6 AND EXPENSES RELATED TO SUCH REFINANCING AND THE
7 ESTABLISHMENT OR FUNDING OF APPROPRIATE DEBT SERVICE
8 RESERVES. THE INCREASE SHALL BE RESCINDED FOLLOWING THE FINAL
9 PAYMENT OF INTEREST AND PRINCIPAL. THE EXCEPTION PROVIDED
10 UNDER THIS PARAGRAPH SHALL NOT BE USED TO AVOID REFERENDUM
11 REQUIREMENTS TO PAY FOR COSTS WHICH COULD NOT BE FINANCED BY
12 THE ISSUANCE OF DEBT UNDER 53 PA.C.S.
13 (4) TO RESPOND TO CONDITIONS THAT POSE AN IMMEDIATE
14 THREAT OF SERIOUS PHYSICAL HARM OR INJURY TO THE STUDENTS,
15 STAFF OR RESIDENTS OF THE SCHOOL DISTRICT UNTIL THE
16 CIRCUMSTANCES CAUSING THE THREAT HAVE BEEN FULLY RESOLVED.
17 (5) SPECIAL PURPOSE TAX LEVIES APPROVED BY THE
18 ELECTORATE.
19 (6) TO MAINTAIN PER-STUDENT LOCAL TAX REVENUE IN THE
20 SCHOOL DISTRICT AT AN AMOUNT NOT EXCEEDING THE AMOUNT OF PER-
21 STUDENT LOCAL TAX REVENUE OF THE PRECEDING YEAR, ADJUSTED FOR
22 THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE.
23 THIS PARAGRAPH SHALL APPLY ONLY IF THE PERCENTAGE GROWTH IN
24 STUDENT ENROLLMENT IN THE SCHOOL DISTRICT BETWEEN THE CURRENT
25 FISCAL YEAR AND THE THIRD FISCAL YEAR IMMEDIATELY PRECEDING
26 THE CURRENT FISCAL YEAR EXCEEDS 10%. FOR THE PURPOSES OF THIS
27 PARAGRAPH, STUDENT ENROLLMENT SHALL BE MEASURED BY AVERAGE
28 DAILY MEMBERSHIP AS DEFINED IN SECTION 2501(3). FOR THE
29 PURPOSES OF THIS PARAGRAPH, PER-STUDENT LOCAL TAX REVENUE
30 SHALL BE DETERMINED BY DIVIDING LOCAL TAX REVENUE BY AVERAGE
20010H0592B4707 - 12 -
1 DAILY MEMBERSHIP.
2 (E) COURT ACTION.--PRIOR TO THE IMPOSITION OF THE TAX
3 INCREASE UNDER SUBSECTION (D)(1), (2), (4) OR (6), APPROVAL IS
4 REQUIRED BY THE COURT OF COMMON PLEAS IN THE JUDICIAL DISTRICT
5 IN WHICH THE GOVERNING BODY IS LOCATED. THE GOVERNING BODY SHALL
6 PUBLISH IN A NEWSPAPER OF GENERAL CIRCULATION A NOTICE OF ITS
7 INTENT TO FILE AN ACTION UNDER THIS SUBSECTION AT LEAST ONE WEEK
8 PRIOR TO THE FILING OF THE PETITION. THE GOVERNING BODY SHALL
9 ALSO PUBLISH IN A NEWSPAPER OF GENERAL CIRCULATION NOTICE, AS
10 SOON AS POSSIBLE FOLLOWING NOTIFICATION FROM THE COURT THAT A
11 HEARING HAS BEEN SCHEDULED, STATING THE DATE, TIME AND PLACE OF
12 THE HEARING ON THE PETITION. THE FOLLOWING SHALL APPLY TO ANY
13 PROCEEDINGS INSTITUTED UNDER THIS SUBSECTION:
14 (1) THE GOVERNING BODY MUST PROVE BY CLEAR AND
15 CONVINCING EVIDENCE THE NECESSITY FOR THE TAX INCREASE.
16 (2) THE GOVERNING BODY MUST PROVE BY CLEAR AND
17 CONVINCING EVIDENCE THAT THERE ARE NO ASSETS OR OTHER
18 FEASIBLE ALTERNATIVES AVAILABLE TO THE SCHOOL DISTRICT.
19 (3) THE COURT SHALL DETERMINE THE APPROPRIATE DURATION
20 OF THE INCREASE AND MAY RETAIN CONTINUING JURISDICTION. THE
21 COURT MAY, ON ITS OWN MOTION OR ON PETITION OF AN INTERESTED
22 PARTY, REVOKE APPROVAL FOR OR ORDER RESCISSION OF A TAX
23 INCREASE.
24 (F) STANDING.--A PERSON SHALL HAVE STANDING AS A PARTY TO A
25 PROCEEDING UNDER THIS SECTION IF THE PERSON RESIDES WITHIN OR
26 PAYS REAL PROPERTY TAXES TO THE TAXING JURISDICTION OF THE
27 GOVERNING BODY INSTITUTING THE ACTION.
28 (G) PROPERTY TAX LIMITS ON REASSESSMENT.--AFTER ANY COUNTY
29 MAKES A COUNTYWIDE REVISION OF ASSESSMENT OF REAL PROPERTY AT
30 VALUES BASED UPON AN ESTABLISHED PREDETERMINED RATIO AS REQUIRED
20010H0592B4707 - 13 -
1 BY LAW OR AFTER ANY COUNTY CHANGES ITS ESTABLISHED PREDETERMINED
2 RATIO, EACH SCHOOL DISTRICT THAT HAS APPROVED A REFERENDUM
3 QUESTION UNDER SECTION 612-A, WHICH HEREAFTER FOR THE FIRST TIME
4 LEVIES ITS REAL ESTATE TAXES ON THAT REVISED ASSESSMENT OR
5 VALUATION, SHALL FOR THE FIRST YEAR REDUCE ITS TAX RATE, IF
6 NECESSARY, FOR THE PURPOSE OF HAVING THE PERCENTAGE INCREASE IN
7 TAXES LEVIED FOR THAT YEAR AGAINST THE REAL PROPERTIES CONTAINED
8 IN THE DUPLICATE FOR THE PRECEDING YEAR BE LESS THAN OR EQUAL TO
9 THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE FOR
10 THE PRECEDING YEAR NOTWITHSTANDING THE INCREASED VALUATIONS OF
11 SUCH PROPERTIES UNDER THE REVISED ASSESSMENT. FOR THE PURPOSE OF
12 DETERMINING THE TOTAL AMOUNT OF TAXES TO BE LEVIED FOR THE FIRST
13 YEAR, THE AMOUNT TO BE LEVIED ON NEWLY CONSTRUCTED BUILDINGS OR
14 STRUCTURES OR ON INCREASED VALUATIONS BASED ON NEW IMPROVEMENTS
15 MADE TO EXISTING HOUSES NEED NOT BE CONSIDERED. THE TAX RATE
16 SHALL BE FIXED FOR THAT YEAR AT A FIGURE WHICH WILL ACCOMPLISH
17 THIS PURPOSE. THE PROVISIONS OF SUBSECTION (A) SHALL APPLY TO
18 INCREASES IN THE TAX RATE ABOVE THE LIMITS PROVIDED IN THIS
19 SUBSECTION.
20 SECTION 615-A. QUESTION TO BE SUBMITTED TO ELECTORS.
21 (A) QUESTION REQUIRED.--THE BOARD OF SCHOOL DIRECTORS OF
22 EACH SCHOOL DISTRICT SHALL CAUSE A REFERENDUM QUESTION PURSUANT
23 TO SECTION 612-A TO BE SUBMITTED TO THE ELECTORS OF THE SCHOOL
24 DISTRICT, AT THE 2003 MUNICIPAL ELECTION.
25 (B) OPTIONS AUTHORIZED.--EXCEPT AS PROVIDED IN SUBSECTION
26 (C), THE BOARD OF SCHOOL DIRECTORS SHALL BE AUTHORIZED TO
27 DETERMINE THE CONTENT OF THE QUESTION TO BE SUBMITTED TO THE
28 ELECTORS UNDER THIS SECTION, SUBJECT TO THE PROVISIONS OF THIS
29 ARTICLE AND THE OPTIONS AUTHORIZED THEREIN.
30 (C) FAILURE TO ACT.--IF THE BOARD OF SCHOOL DIRECTORS FAILS
20010H0592B4707 - 14 -
1 TO ADOPT THE RESOLUTION REQUIRED BY SUBSECTION (A) WITHIN 90
2 DAYS PRECEDING THE 2003 MUNICIPAL ELECTION, THE COUNTY BOARD OF
3 ELECTIONS SHALL PREPARE A QUESTION FOR THE SCHOOL DISTRICT
4 PURSUANT TO SECTION 612-A THAT WOULD REQUIRE THE EARNED INCOME
5 AND NET PROFITS TAX AUTHORIZED UNDER SECTION 622-A TO BE IMPOSED
6 AT THE MAXIMUM RATE PERMITTED. THE DEPARTMENT OF EDUCATION SHALL
7 PROVIDE ASSISTANCE TO THE COUNTY BOARD OF ELECTIONS UNDER THIS
8 SUBSECTION.
9 (D) REFERENDUM PROCEDURE.--
10 (1) AT THE 2003 MUNICIPAL ELECTION, THE COUNTY BOARD OF
11 ELECTIONS SHALL CAUSE THE QUESTION REQUIRED BY THIS SECTION
12 TO BE SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT.
13 (2) IF A MAJORITY OF THE ELECTORS VOTING ON THE QUESTION
14 VOTE IN THE AFFIRMATIVE, THE QUESTION SHALL BE ADOPTED AND
15 THE BOARD OF SCHOOL DIRECTORS SHALL IMPLEMENT THE PROVISIONS
16 OF THIS ARTICLE CONSISTENT WITH THE QUESTION SUBMITTED TO AND
17 APPROVED BY THE ELECTORS.
18 (3) THE PROCEDURE FOR THE REFERENDUM UNDER THIS SECTION
19 SHALL BE GOVERNED BY THE ACT OF JUNE 3, 1937 (P.L.1333,
20 NO.320), KNOWN AS THE PENNSYLVANIA ELECTION CODE.
21 (E) NONAPPLICABILITY.--THIS SECTION SHALL NOT APPLY TO:
22 (1) A SCHOOL DISTRICT IN WHICH A REFERENDUM QUESTION
23 UNDER 53 PA.C.S. § 8703 (RELATING TO ADOPTION OF REFERENDUM)
24 HAS BEEN APPROVED AND IMPLEMENTED.
25 (2) A SCHOOL DISTRICT CERTIFIED AS DISTRESSED PURSUANT
26 TO SECTION 691 OR CERTIFIED AS AN EDUCATION EMPOWERMENT
27 DISTRICT PURSUANT TO SECTION 1705-B OR 1707-B.
28 (3) A SCHOOL DISTRICT OF THE FIRST CLASS.
29 (C) TAXES AUTHORIZED TO REDUCE PROPERTY TAX.
30 SECTION 621-A. TAXES AUTHORIZED TO REDUCE PROPERTY TAXES.
20010H0592B4707 - 15 -
1 (A) AUTHORIZED TAX OPTIONS.--THE TAXES AUTHORIZED UNDER THIS
2 SUBDIVISION MAY BE IMPOSED BY A SCHOOL DISTRICT PURSUANT TO THE
3 REQUIREMENTS OF SECTION 612-A.
4 (B) CONTINUITY OF TAX.--A TAX LEVIED UNDER THE PROVISIONS OF
5 THIS SUBDIVISION SHALL CONTINUE IN FORCE ON A FISCAL YEAR BASIS
6 WITHOUT ANNUAL REENACTMENT UNLESS THE RATE OF TAX IS INCREASED
7 OR THE TAX IS SUBSEQUENTLY REPEALED.
8 SECTION 622-A. EARNED INCOME AND NET PROFITS TAX.
9 (A) IMPOSITION.--A SCHOOL DISTRICT RECEIVING AUTHORIZATION
10 UNDER SECTION 612-A SHALL HAVE THE POWER TO LEVY, ASSESS AND
11 COLLECT A TAX ON THE EARNED INCOME AND NET PROFITS OF RESIDENT
12 INDIVIDUALS OF THE SCHOOL DISTRICT. THE EARNED INCOME AND NET
13 PROFITS TAX MAY BE LEVIED BY THE SCHOOL DISTRICT AT A RATE
14 AUTHORIZED UNDER SUBSECTION (B). A SCHOOL DISTRICT THAT LEVIES A
15 LOCAL PERSONAL INCOME TAX UNDER SECTION 623-A SHALL HAVE NO
16 POWER TO LEVY, ASSESS OR COLLECT THE EARNED INCOME AND NET
17 PROFITS TAX UNDER THIS SECTION.
18 (B) RATE LIMITS AND INCREASES.--
19 (1) FOR THE FISCAL YEAR OF IMPLEMENTATION, THE RATE OF
20 THE TAX LEVIED UNDER THIS SECTION SHALL NOT EXCEED THE RATE,
21 AS CALCULATED BY THE GOVERNING BODY, THAT WOULD ALLOW THE
22 SCHOOL DISTRICT TO PROVIDE THE HOMESTEAD EXCLUSION AUTHORIZED
23 UNDER 53 PA.C.S. § 8583 (RELATING TO EXCLUSION FOR HOMESTEAD
24 PROPERTY) UP TO THE MAXIMUM AMOUNT AUTHORIZED UNDER 53
25 PA.C.S. § 8586 (RELATING TO LIMITATIONS).
26 (2) FOR FISCAL YEARS SUBSEQUENT TO THE FISCAL YEAR OF
27 IMPLEMENTATION, THE GOVERNING BODY MAY INCREASE THE RATE OF
28 THE TAX LEVIED UNDER THIS SECTION IN EXCESS OF THE LIMITS
29 CALCULATED UNDER PARAGRAPH (1) ONLY BY OBTAINING APPROVAL OF
30 THE ELECTORATE OF THE AFFECTED SCHOOL DISTRICT IN A
20010H0592B4707 - 16 -
1 REFERENDUM AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE
2 FISCAL YEAR OF THE PROPOSED RATE INCREASE. INSOFAR AS IT IS
3 APPLICABLE, SECTION 612-A SHALL GOVERN THE REFERENDUM UNDER
4 THIS PARAGRAPH.
5 (3) THE GOVERNING BODY SHALL MAKE A GOOD FAITH
6 CALCULATION OF THE MAXIMUM RATE UNDER THIS SUBSECTION. THE
7 GOVERNING BODY MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF
8 EDUCATION AND THE DEPARTMENT OF REVENUE IN MAKING THE
9 CALCULATIONS UNDER THIS SUBSECTION.
10 (4) THE RATE OF TAX DETERMINED UNDER THIS SUBSECTION
11 SHALL BE ROUNDED OFF TO THE NEAREST INCREMENT OF ONE-TENTH OF
12 ONE PERCENT.
13 (5) IF A REFERENDUM QUESTION UNDER THE ACT OF JUNE 22,
14 2001 (P.L.374, NO.24), KNOWN AS THE OPTIONAL OCCUPATION TAX
15 ELIMINATION ACT, IS ON THE BALLOT CONCURRENTLY WITH A
16 REFERENDUM QUESTION UNDER SECTION 612-A AND BOTH QUESTIONS
17 ARE APPROVED, THE RATE OF THE TAX ON EARNED INCOME AND NET
18 PROFITS AUTHORIZED UNDER THIS SECTION SHALL BE CUMULATIVE IN
19 ACCORDANCE WITH THE QUESTIONS APPROVED BY THE ELECTORS.
20 (C) COLLECTIONS.--ANY SCHOOL DISTRICT IMPOSING A TAX UNDER
21 THIS SECTION SHALL DESIGNATE THE TAX OFFICER WHO IS APPOINTED
22 UNDER SECTION 10 OF THE LOCAL TAX ENABLING ACT, OR OTHERWISE BY
23 LAW, AS THE COLLECTOR OF THE EARNED INCOME AND NET PROFITS TAX.
24 IN THE PERFORMANCE OF THE TAX COLLECTION DUTIES UNDER THIS
25 SUBDIVISION, THE DESIGNATED TAX OFFICER SHALL HAVE ALL THE SAME
26 POWERS, RIGHTS, RESPONSIBILITIES AND DUTIES FOR THE COLLECTION
27 OF THE TAXES WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING
28 ACT, 53 PA.C.S. CH. 84 SUBCH. C (RELATING TO LOCAL TAXPAYERS
29 BILL OF RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
30 (D) LOCAL TAX CREDITS.--THE PROVISIONS OF SECTION 14 OF THE
20010H0592B4707 - 17 -
1 LOCAL TAX ENABLING ACT SHALL BE USED TO DETERMINE ANY CREDITS
2 UNDER THE PROVISIONS OF THIS SUBDIVISION FOR ANY TAXES IMPOSED
3 UNDER THIS SECTION.
4 (E) STATE TAX CREDIT.--A CREDIT AGAINST PERSONAL INCOME TAX
5 DUE TO THE COMMONWEALTH UNDER SECTION 302 OF THE TAX REFORM CODE
6 SHALL BE GRANTED TO ALL NONRESIDENTS OF A CITY OF THE FIRST
7 CLASS WHO ARE SUBJECT TO A TAX IMPOSED BY A CITY OF THE FIRST
8 CLASS PURSUANT TO THE ACT OF AUGUST 5, 1932 (SP.SESS., P.L.45,
9 NO.45), REFERRED TO AS THE STERLING ACT. THE CREDIT SHALL EQUAL
10 0.25% OF SALARIES, WAGES, COMMISSIONS, COMPENSATION OR OTHER
11 INCOME RECEIVED FOR WORK DONE OR SERVICES PERFORMED WITHIN A
12 CITY OF THE FIRST CLASS. THE SECRETARY OF REVENUE SHALL
13 PROMULGATE SUCH REGULATIONS AND FORMS AS ARE NECESSARY TO
14 IMPLEMENT THE PROVISIONS OF THIS SUBSECTION. THIS SECTION SHALL
15 ONLY APPLY TO RESIDENTS OF SCHOOL DISTRICTS WHICH IMPOSE THE TAX
16 UNDER THIS SUBDIVISION. A GOVERNING BODY OF A SCHOOL DISTRICT IN
17 A COUNTY OF THE SECOND CLASS A SHALL, AND A GOVERNING BODY OF A
18 SCHOOL DISTRICT IN A COUNTY OF THE THIRD CLASS MAY, INCLUDE IN
19 THE REFERENDUM QUESTION UNDER SECTION 612-A LANGUAGE ASKING
20 WHETHER THE CREDIT AGAINST THE PERSONAL INCOME TAX IN THIS
21 SUBSECTION SHOULD BE PROVIDED TO THE NONRESIDENT TAXPAYER IN THE
22 CITY OF THE FIRST CLASS OR THE SCHOOL DISTRICT IN WHICH THE
23 TAXPAYER RESIDES FOR THE PURPOSE OF MAKING ADDITIONAL TAX
24 REDUCTIONS IN ACCORDANCE WITH SECTION 631-A. SHOULD ANY COURT OF
25 COMPETENT JURISDICTION DETERMINE THAT THIS SUBSECTION IS
26 UNCONSTITUTIONAL, THE PROVISIONS OF THIS SUBSECTION SHALL BE
27 VOID AND NO CREDIT SHALL BE EXPANDED OR EXTENDED IN ANY WAY BY
28 ANY COURT.
29 (F) EARNED INCOME AND NET PROFITS TAX EXEMPTION.--A SCHOOL
30 DISTRICT THAT IMPOSES AN EARNED INCOME AND NET PROFITS TAX UNDER
20010H0592B4707 - 18 -
1 THIS SUBDIVISION MAY EXEMPT FROM THE PAYMENT OF THAT TAX ANY
2 PERSON WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS THAN $7,500.
3 (G) RULES AND REGULATIONS.--TAXES IMPOSED UNDER THIS SECTION
4 WILL BE SUBJECT TO ALL REGULATIONS ADOPTED UNDER SECTION 13 OF
5 THE LOCAL TAX ENABLING ACT. A SCHOOL DISTRICT MAY ADOPT
6 REGULATIONS FOR THE PROCESSING OF CLAIMS FOR CREDITS OR
7 EXEMPTIONS UNDER THIS SECTION.
8 (H) PROCEDURE AND ADMINISTRATION.--IN ORDER TO LEVY THE TAX
9 UNDER THIS SECTION, THE GOVERNING BODY SHALL ADOPT A RESOLUTION
10 WHICH SHALL REFER TO THIS SECTION.
11 (I) DISPOSITION OF EARNED INCOME AND NET PROFITS TAX
12 REVENUE.--THE DISPOSITION OF REVENUE FROM AN EARNED INCOME AND
13 NET PROFITS TAX OR AN INCREASE IN THE RATE OF AN EARNED INCOME
14 AND NET PROFITS TAX IMPOSED BY SCHOOL DISTRICTS UNDER THE
15 AUTHORITY OF THIS SECTION SHALL CONFORM TO SECTION 631-A.
16 SECTION 623-A. LOCAL PERSONAL INCOME TAX.
17 (A) IMPOSITION.--A SCHOOL DISTRICT RECEIVING AUTHORIZATION
18 UNDER SECTION 612-A SHALL HAVE THE POWER TO LEVY, ASSESS AND
19 COLLECT A TAX ON THE PERSONAL INCOME OF RESIDENT INDIVIDUALS OF
20 THE SCHOOL DISTRICT. THE LOCAL PERSONAL INCOME TAX MAY BE LEVIED
21 BY THE SCHOOL DISTRICT AT A RATE AUTHORIZED UNDER SUBSECTION
22 (B). A SCHOOL DISTRICT THAT LEVIES AN EARNED INCOME AND NET
23 PROFITS TAX UNDER SECTION 622-A SHALL HAVE NO POWER TO LEVY,
24 ASSESS OR COLLECT A LOCAL PERSONAL INCOME TAX UNDER THIS
25 SECTION.
26 (B) RATE LIMITS AND INCREASES.--
27 (1) FOR THE FISCAL YEAR OF IMPLEMENTATION, THE RATE OF
28 THE TAX LEVIED UNDER THIS SECTION SHALL NOT EXCEED THE RATE,
29 AS CALCULATED BY THE GOVERNING BODY, THAT WOULD ALLOW THE
30 SCHOOL DISTRICT TO PROVIDE THE HOMESTEAD EXCLUSION AUTHORIZED
20010H0592B4707 - 19 -
1 UNDER 53 PA.C.S. § 8583 (RELATING TO EXCLUSION FOR HOMESTEAD
2 PROPERTY) UP TO THE MAXIMUM AMOUNT AUTHORIZED UNDER 53
3 PA.C.S. § 8586 (RELATING TO LIMITATIONS).
4 (2) FOR FISCAL YEARS SUBSEQUENT TO THE FISCAL YEAR OF
5 IMPLEMENTATION, THE GOVERNING BODY MAY INCREASE THE RATE OF
6 THE TAX LEVIED UNDER THIS SECTION IN EXCESS OF THE LIMITS
7 CALCULATED UNDER PARAGRAPH (1) ONLY BY OBTAINING APPROVAL OF
8 THE ELECTORATE OF THE AFFECTED SCHOOL DISTRICT IN A
9 REFERENDUM AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE
10 FISCAL YEAR OF THE PROPOSED RATE INCREASE. INSOFAR AS IT IS
11 APPLICABLE, SECTION 612-A SHALL GOVERN THE REFERENDUM UNDER
12 THIS PARAGRAPH.
13 (3) THE GOVERNING BODY SHALL MAKE A GOOD FAITH
14 CALCULATION OF THE MAXIMUM RATE UNDER THIS SUBSECTION. THE
15 GOVERNING BODY MAY SEEK THE ASSISTANCE OF THE DEPARTMENT OF
16 EDUCATION AND THE DEPARTMENT OF REVENUE IN MAKING THE
17 CALCULATIONS UNDER THIS SUBSECTION.
18 (4) THE RATE OF TAX DETERMINED UNDER THIS SUBSECTION
19 SHALL BE ROUNDED OFF TO THE NEAREST INCREMENT OF ONE-TENTH OF
20 ONE PERCENT.
21 (5) IF A REFERENDUM QUESTION UNDER THE ACT OF JUNE 22,
22 2001 (P.L.374, NO.24), KNOWN AS THE OPTIONAL OCCUPATION TAX
23 ELIMINATION ACT, IS ON THE BALLOT CONCURRENTLY WITH A
24 REFERENDUM QUESTION UNDER SECTION 612-A AND BOTH QUESTIONS
25 ARE APPROVED, THE RATE OF THE TAX ON PERSONAL INCOME
26 AUTHORIZED IN THIS SECTION SHALL BE CUMULATIVE IN ACCORDANCE
27 WITH THE QUESTIONS APPROVED BY THE ELECTORS, EXCEPT THAT THE
28 RATE OF THE ADDITIONAL EARNED INCOME TAX APPROVED PURSUANT TO
29 THE OPTIONAL OCCUPATION TAX ELIMINATION ACT SHALL BE
30 RECALCULATED TO UTILIZE THE LOCAL PERSONAL INCOME TAX BASE.
20010H0592B4707 - 20 -
1 (C) COLLECTIONS.--
2 (1) EXCEPT AS PERMITTED BY PARAGRAPH (2), ANY SCHOOL
3 DISTRICT IMPOSING A TAX UNDER THIS SECTION SHALL DESIGNATE
4 THE TAX OFFICER WHO IS APPOINTED UNDER SECTION 10 OF THE
5 LOCAL TAX ENABLING ACT, OR OTHERWISE BY LAW, AS THE COLLECTOR
6 OF THE LOCAL PERSONAL INCOME TAX. IN THE PERFORMANCE OF THE
7 TAX COLLECTION DUTIES UNDER THIS SECTION, THE DESIGNATED TAX
8 OFFICER SHALL HAVE ALL THE SAME POWERS, RIGHTS,
9 RESPONSIBILITIES AND DUTIES FOR THE COLLECTION OF THE TAXES
10 WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING ACT, 53
11 PA.C.S. CH. 84 SUBCH. C (RELATING TO LOCAL TAXPAYERS BILL OF
12 RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
13 (2) ANY SCHOOL DISTRICT IMPOSING A TAX UPON PERSONAL
14 INCOME UNDER THE AUTHORITY OF THIS SECTION MAY ENTER INTO AN
15 AGREEMENT WITH THE DEPARTMENT OF REVENUE FOR THE COLLECTION
16 OF THAT TAX BY THE DEPARTMENT OF REVENUE IN CONJUNCTION WITH
17 THE COLLECTION OF ANY TAX ON PERSONAL INCOME IMPOSED BY THE
18 COMMONWEALTH UNDER THE AUTHORITY OF THE TAX REFORM CODE. THE
19 AGREEMENT AUTHORIZED BY THIS SECTION SHALL CONTAIN A
20 PROVISION APPOINTING THE DEPARTMENT OF REVENUE AS THE TAX
21 OFFICER WITHIN THE MEANING OF THIS SECTION. THE DEPARTMENT OF
22 REVENUE, BY REGULATION, SHALL ESTABLISH THE PROCEDURES FOR
23 COLLECTING THAT TAX AND PAYING THE FULL AMOUNT COLLECTED OVER
24 TO THE SCHOOL DISTRICT.
25 (D) LOCAL TAX CREDITS.--THE PROVISIONS OF SECTION 14 OF THE
26 LOCAL TAX ENABLING ACT SHALL BE USED TO DETERMINE ANY CREDITS
27 UNDER THE PROVISIONS OF THIS SECTION FOR ANY TAXES IMPOSED UNDER
28 THIS SECTION ON THE EARNED INCOME PORTION OF THE PERSONAL INCOME
29 TAX.
30 (E) STATE TAX CREDIT.--A CREDIT AGAINST PERSONAL INCOME TAX
20010H0592B4707 - 21 -
1 DUE TO THE COMMONWEALTH UNDER SECTION 302 OF THE TAX REFORM CODE
2 SHALL BE GRANTED TO ALL NONRESIDENTS OF A CITY OF THE FIRST
3 CLASS WHO ARE SUBJECT TO A TAX IMPOSED BY A CITY OF THE FIRST
4 CLASS PURSUANT TO THE ACT OF AUGUST 5, 1932 (SP.SESS., P.L.45,
5 NO.45), REFERRED TO AS THE STERLING ACT. THE CREDIT SHALL EQUAL
6 0.25% OF SALARIES, WAGES, COMMISSIONS, COMPENSATION OR OTHER
7 INCOME RECEIVED FOR WORK DONE OR SERVICES PERFORMED WITHIN A
8 CITY OF THE FIRST CLASS. THE SECRETARY OF REVENUE SHALL
9 PROMULGATE SUCH REGULATIONS AND FORMS AS ARE NECESSARY TO
10 IMPLEMENT THE PROVISIONS OF THIS SUBSECTION. THIS SECTION SHALL
11 ONLY APPLY TO RESIDENTS OF SCHOOL DISTRICTS WHICH IMPOSE THE TAX
12 UNDER THIS SUBCHAPTER. A GOVERNING BODY OF A SCHOOL DISTRICT IN
13 A COUNTY OF THE SECOND CLASS A SHALL, AND A GOVERNING BODY OF A
14 SCHOOL DISTRICT IN A COUNTY OF THE THIRD CLASS MAY, INCLUDE IN
15 THE REFERENDUM QUESTION UNDER SECTION 612-A LANGUAGE ASKING
16 WHETHER THE CREDIT AGAINST THE PERSONAL INCOME TAX IN THIS
17 SUBSECTION SHOULD BE PROVIDED TO THE NONRESIDENT TAXPAYER IN THE
18 CITY OF THE FIRST CLASS OR THE SCHOOL DISTRICT IN WHICH THE
19 TAXPAYER RESIDES FOR THE PURPOSE OF MAKING ADDITIONAL TAX
20 REDUCTIONS IN ACCORDANCE WITH SECTION 631-A. SHOULD ANY COURT OF
21 COMPETENT JURISDICTION DETERMINE THAT THIS SUBSECTION IS
22 UNCONSTITUTIONAL, THE PROVISIONS OF THIS SUBSECTION SHALL BE
23 VOID AND NO CREDIT SHALL BE EXPANDED OR EXTENDED IN ANY WAY BY
24 ANY COURT.
25 (F) LOW INCOME TAX CREDIT.--THE PROVISIONS OF SECTION 304 OF
26 THE TAX REFORM CODE SHALL BE APPLIED TO THE LOCAL PERSONAL
27 INCOME TAX BY ANY SCHOOL DISTRICT THAT LEVIES A TAX UNDER THIS
28 SECTION.
29 (G) LOCAL PERSONAL INCOME TAX EXEMPTION.--A SCHOOL DISTRICT
30 THAT IMPOSES A LOCAL PERSONAL INCOME TAX UNDER THIS SECTION MAY
20010H0592B4707 - 22 -
1 EXEMPT FROM THE PAYMENT OF THAT TAX ANY PERSON WHOSE TOTAL
2 INCOME FROM ALL SOURCES IS LESS THAN $7,500.
3 (H) RULES AND REGULATIONS.--TAXES IMPOSED UNDER THIS SECTION
4 SHALL BE SUBJECT TO ALL REGULATIONS ADOPTED BY THE DEPARTMENT OF
5 REVENUE UNDER ARTICLE III OF THE TAX REFORM CODE. A SCHOOL
6 DISTRICT MAY ADOPT REGULATIONS FOR THE PROCESSING OF CLAIMS FOR
7 CREDITS OR EXEMPTIONS UNDER THIS SECTION.
8 (I) PROCEDURE AND ADMINISTRATION.--IN ORDER TO LEVY THE TAX
9 UNDER THIS SECTION, THE GOVERNING BODY SHALL ADOPT A RESOLUTION
10 WHICH SHALL REFER TO THIS SECTION.
11 (J) DISPOSITION OF LOCAL PERSONAL INCOME TAX REVENUE.--THE
12 DISPOSITION OF REVENUE FROM A LOCAL PERSONAL INCOME TAX OR AN
13 INCREASE IN THE RATE OF A LOCAL PERSONAL INCOME TAX IMPOSED BY
14 SCHOOL DISTRICTS UNDER THE AUTHORITY OF THIS SECTION SHALL
15 CONFORM TO SECTION 631-A.
16 (D) HOMESTEAD EXCLUSION.
17 SECTION 631-A. DISPOSITION OF TAX REVENUE.
18 THE DISPOSITION OF REVENUE FROM A TAX OR AN INCREASE IN THE
19 RATE OF A TAX AUTHORIZED UNDER SUBDIVISION (C) SHALL OCCUR IN
20 THE FOLLOWING MANNER:
21 (1) FOR THE FISCAL YEAR OF IMPLEMENTATION OF A NEWLY
22 IMPOSED TAX, ALL TAX REVENUE RECEIVED BY A SCHOOL DISTRICT
23 SHALL BE USED FIRST TO OFFSET ANY LOST REVENUE TO THE SCHOOL
24 DISTRICT FROM THE TAXES PROHIBITED UNDER SECTION 611-A(B) IN
25 AN AMOUNT EQUAL TO THE REVENUE COLLECTED FROM THE PROHIBITED
26 TAXES IN SECTION 611-A(B) IN THE PRECEDING FISCAL YEAR;
27 SECOND, TO PROVIDE FOR AN INCREASE IN LOCAL TAX REVENUES OVER
28 THE PRECEDING FISCAL YEAR IN ACCORDANCE WITH THE AMOUNT
29 SPECIFIED IN THE REFERENDUM QUESTION APPROVED BY THE ELECTORS
30 UNDER SECTION 612-A; AND THIRD, TO REDUCE THE SCHOOL DISTRICT
20010H0592B4707 - 23 -
1 REAL PROPERTY TAX IN THE FOLLOWING ORDER:
2 (I) BY MEANS OF AN EXCLUSION FOR HOMESTEAD PROPERTY
3 PURSUANT TO 53 PA.C.S. § 8583 (RELATING TO EXCLUSION FOR
4 HOMESTEAD PROPERTY).
5 (II) BY MEANS OF A REDUCTION IN THE MILLAGE RATE
6 AFTER THE LIMIT ON THE EXCLUSION FOR HOMESTEAD PROPERTY
7 HAS BEEN REACHED UNDER 53 PA.C.S. § 8586 (RELATING TO
8 LIMITATIONS).
9 (2) FOR THE FISCAL YEAR OF IMPLEMENTATION OF AN INCREASE
10 IN THE RATE OF THE EXISTING TAX AUTHORIZED UNDER SUBDIVISION
11 (C), ALL REVENUE RECEIVED BY A SCHOOL DISTRICT DIRECTLY
12 ATTRIBUTABLE TO THE INCREASED RATE SHALL BE USED TO REDUCE
13 THE SCHOOL DISTRICT REAL PROPERTY TAX IN THE FOLLOWING ORDER:
14 (I) BY MEANS OF AN EXCLUSION FOR HOMESTEAD PROPERTY
15 PURSUANT TO 53 PA.C.S. § 8583.
16 (II) BY MEANS OF A REDUCTION IN THE MILLAGE RATE
17 AFTER THE LIMIT ON THE EXCLUSION FOR HOMESTEAD PROPERTY
18 HAS BEEN REACHED UNDER 53 PA.C.S. § 8586.
19 SECTION 632-A. CHANGES TO THE AMOUNT OF THE HOMESTEAD
20 EXCLUSION.
21 (A) INCREASES IN THE HOMESTEAD EXCLUSION.--A SCHOOL DISTRICT
22 MAY INCREASE THE AMOUNT OF THE EXCLUSION FOR HOMESTEAD PROPERTY
23 REQUIRED PURSUANT TO SECTION 631-A CONSISTENT WITH THE
24 PROHIBITIONS IN 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS).
25 (B) DECREASES IN THE HOMESTEAD EXCLUSION.--EXCEPT AS
26 PROVIDED IN SUBSECTION (C), A SCHOOL DISTRICT SHALL NOT HAVE THE
27 POWER OR AUTHORITY TO REDUCE THE EXCLUSION FOR HOMESTEAD
28 PROPERTY BELOW THE LEVEL AUTHORIZED PURSUANT TO THE REFERENDUM
29 REQUIRED UNDER SECTION 612-A.
30 (C) REASSESSMENT.--AFTER A REVISION OF ASSESSMENTS BY MEANS
20010H0592B4707 - 24 -
1 OF REVALUING ALL PROPERTIES, THE GOVERNING BODY PROVIDING AN
2 EXCLUSION FOR HOMESTEAD PROPERTY UNDER SECTION 612-A SHALL
3 ADJUST THE AMOUNT OF THE EXCLUSION PURSUANT TO 53 PA.C.S. §
4 8583(E) (RELATING TO EXCLUSION FOR HOMESTEAD PROPERTY).
5 SECTION 633-A. HOMESTEAD EXCLUSION PROCESS.
6 (A) LISTING REQUIRED.--NOT LATER THAN SEPTEMBER 1, 2003, AND
7 NOT LATER THAN SEPTEMBER 1 OF EACH YEAR THEREAFTER, THE BOARD OF
8 SCHOOL DIRECTORS OF EACH SCHOOL DISTRICT SHALL COMPILE A LISTING
9 OF ALL REAL PROPERTY WITHIN THE SCHOOL DISTRICT THAT IT BELIEVES
10 TO BE QUALIFIED AS A HOMESTEAD OR A FARMSTEAD AS THOSE TERMS ARE
11 DEFINED UNDER 53 PA.C.S. § 8401 (RELATING TO DEFINITIONS) OR
12 8582 (RELATING TO DEFINITIONS). THE SCHOOL DISTRICT SHALL USE
13 INFORMATION OR STATEMENTS FROM THE OWNERS OR RESIDENTS OF THE
14 PROPERTY IN COMPILING THE LIST. THIS LISTING MAY BE COMPILED AT
15 THE SAME TIME AS THE ENUMERATION OF SCHOOL CHILDREN IS PERFORMED
16 PURSUANT TO SECTION 1351.
17 (B) NOTIFICATION TO HOMESTEAD OWNERS.--IF THE ELECTORS OF A
18 SCHOOL DISTRICT APPROVE A REFERENDUM QUESTION PURSUANT TO
19 SECTION 612-A, THE BOARD OF SCHOOL DIRECTORS SHALL, BY FIRST
20 CLASS MAIL, NOTIFY THE OWNERS OF EACH HOMESTEAD AND EACH
21 FARMSTEAD ON THE LISTING REQUIRED BY THIS ACT THAT SUBMITTING AN
22 APPLICATION IS REQUIRED UNDER 53 PA.C.S. CH. 85 SUBCH. F
23 (RELATING TO HOMESTEAD PROPERTY EXCLUSION) PRIOR TO THE PROPERTY
24 BEING QUALIFIED FOR ANY HOMESTEAD OR FARMSTEAD EXCLUSION
25 AUTHORIZED BY LAW. THE NOTICE REQUIRED BY THIS SECTION SHALL
26 INCLUDE A COPY OF THE APPLICATION REQUIRED BY THE ASSESSOR OF
27 THE COUNTY WHERE THE PROPERTY IS LOCATED AND THE INSTRUCTIONS
28 FOR COMPLETING AND RETURNING THE APPLICATION.
29 (C) ESTIMATES OF THE HOMESTEAD AND FARMSTEAD EXCLUSION.--THE
30 LISTING OF HOMESTEADS AND FARMSTEADS REQUIRED TO BE COMPILED
20010H0592B4707 - 25 -
1 UNDER THIS SECTION SHALL BE USED BY THE SCHOOL DISTRICT IN
2 ESTIMATING THE AMOUNT OF THE HOMESTEAD EXCLUSION AND FARMSTEAD
3 EXCLUSION TO BE AUTHORIZED PURSUANT TO SECTION 631-A FOR
4 PURPOSES OF A REFERENDUM QUESTION UNDER SECTION 612-A.
5 (D) APPEALS.--REAL PROPERTY FOR WHICH AN APPLICATION UNDER
6 53 PA.C.S. § 8584 (RELATING TO ADMINISTRATION AND PROCEDURE) HAS
7 BEEN FILED BY MARCH 1, 2004, SHALL BE DEEMED TO BE HOMESTEAD
8 PROPERTY OR FARMSTEAD PROPERTY, AS THE CASE MAY BE, FOR THE
9 PURPOSES OF IMPLEMENTING A HOMESTEAD OR FARMSTEAD EXCLUSION
10 UNDER 53 PA.C.S. § 8717 (RELATING TO DISPOSITION OF EARNED
11 INCOME AND NET PROFITS TAX REVENUE) IN THE SCHOOL DISTRICT
12 FISCAL YEAR BEGINNING JULY 1, 2004, UNLESS THE ASSESSOR DENIES
13 THE APPLICATION WITHIN THE TIME PROVIDED BY LAW AND THE DENIAL
14 IS UNAPPEALED OR UNAPPEALABLE. THE SCHOOL DISTRICT IS AUTHORIZED
15 TO COLLECT TAXES, INTEREST AND PENALTY RELATING TO A HOMESTEAD
16 OR FARMSTEAD EXCLUSION THAT IS DENIED AFTER SUCH DENIAL IS
17 UNAPPEALED OR UNAPPEALABLE.
18 (E) REPORTS.--IN ADDITION TO A REPORT REQUIRED UNDER 53
19 PA.C.S. § 8584(I), THE ASSESSOR SHALL BE REQUIRED TO PROVIDE A
20 SUPPLEMENTAL REPORT CONTAINING THE INFORMATION REQUIRED UNDER 53
21 PA.C.S. § 8584(I) FOR APPLICATIONS FILED BY MARCH 1, 2004. THE
22 DATE OF THE SUPPLEMENTAL REPORT SHALL BE SET BY THE SCHOOL
23 DISTRICT, BUT SHALL NOT BE EARLIER THAN JUNE 1, 2004.
24 (F) APPLICABILITY.--SUBSECTIONS (B), (C), (D) AND (E) SHALL
25 APPLY ONLY TO SCHOOL DISTRICTS THAT APPROVE A REFERENDUM UNDER
26 SECTION 612-A AT THE 2003 MUNICIPAL ELECTION.
27 (J) REGISTER.
28 SECTION 691-A. REGISTER FOR TAXES.
29 (A) GENERAL RULE.--THE DEPARTMENT SHALL MAINTAIN AN OFFICIAL
30 CONTINUING REGISTER SUPPLEMENTED ANNUALLY OF ALL LOCAL TAXES
20010H0592B4707 - 26 -
1 LEVIED UNDER SUBDIVISION (C).
2 (B) CONTENTS OF REGISTER.--THE REGISTER SHALL LIST:
3 (1) THE SCHOOL DISTRICTS LEVYING LOCAL EARNED INCOME AND
4 NET PROFITS TAX.
5 (2) THE RATE OF TAX AS STATED IN THE RESOLUTION LEVYING
6 THE TAX.
7 (3) THE RATE ON TAXPAYERS.
8 (4) THE NAME AND ADDRESS OF THE OFFICIAL RESPONSIBLE FOR
9 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM
10 INFORMATION, FORMS AND COPIES OF REGULATIONS ARE AVAILABLE.
11 SECTION 692-A. INFORMATION FOR REGISTER.
12 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE SCHOOL
13 DISTRICT TO THE DEPARTMENT AS PRESCRIBED BY THE DEPARTMENT. THE
14 INFORMATION MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN
15 JULY 15 OF EACH YEAR TO SHOW NEW TAX ENACTMENTS, REPEALS AND
16 CHANGES. FAILURE TO COMPLY WITH THE FILING DATE MAY RESULT IN
17 THE OMISSION OF THE TAX LEVY FROM THE REGISTER FOR THAT YEAR.
18 FAILURE OF THE DEPARTMENT TO RECEIVE INFORMATION OF TAXES
19 CONTINUED WITHOUT CHANGE MAY BE CONSTRUED BY THE DEPARTMENT TO
20 MEAN THAT THE INFORMATION CONTAINED IN THE PREVIOUS REGISTER
21 REMAINS IN FORCE.
22 SECTION 693-A. AVAILABILITY AND EFFECTIVE PERIOD OF REGISTER.
23 THE REGISTER, WITH SUCH ANNUAL SUPPLEMENTS AS MAY BE REQUIRED
24 BY NEW TAX ENACTMENTS, REPEALS OR CHANGES, SHALL BE AVAILABLE
25 UPON REQUEST NO LATER THAN AUGUST 15 OF EACH YEAR. THE EFFECTIVE
26 PERIOD FOR EACH REGISTER SHALL BE FROM JULY 1 OF THE YEAR IN
27 WHICH IT IS ISSUED TO JUNE 30 OF THE FOLLOWING YEAR.
28 SECTION 694-A. EFFECT OF NONFILING.
29 EMPLOYERS SHALL NOT BE REQUIRED BY ANY ORDINANCE TO WITHHOLD
30 FROM THE COMPENSATION OF THEIR EMPLOYEES ANY LOCAL EARNED INCOME
20010H0592B4707 - 27 -
1 AND NET PROFITS TAX IMPOSED UNDER SUBDIVISION (C) WHICH IS NOT
2 LISTED IN THE REGISTER OR TO MAKE REPORTS OF COMPENSATION IN
3 CONNECTION WITH TAXES NOT SO LISTED. IF THE REGISTER IS NOT
4 AVAILABLE BY AUGUST 15, THE REGISTER OF THE PREVIOUS YEAR SHALL
5 CONTINUE TO BE EFFECTIVE FOR AN ADDITIONAL PERIOD OF NOT MORE
6 THAN ONE YEAR.
7 SECTION 695-A. EFFECT OF SUBDIVISION ON LIABILITY OF TAXPAYER.
8 THE PROVISIONS OF THIS SUBDIVISION SHALL NOT AFFECT THE
9 LIABILITY OF ANY TAXPAYER FOR TAXES LAWFULLY IMPOSED UNDER
10 SUBDIVISION (C).
11 SECTION 3. SECTION 771 OF THE ACT, AMENDED JANUARY 8, 1952
12 (1951 P.L.1856, NO.497), IS AMENDED TO READ:
13 Section 771. Display of United States Flag; Development of
14 Patriotism.--(a) The board of school directors in each district
15 shall, when they are not otherwise provided, purchase a United
16 States flag, flagstaff, and the necessary appliances therefor,
17 and shall display said flag upon or near each public school
18 building in clement weather, during school hours, and at such
19 other times as the board may determine.
20 (b) All boards of school directors, all proprietors or
21 principals of private schools, and all authorities in control of
22 parochial schools or other educational institutions, shall
23 display the United States national flag, not less than three
24 feet in length, within all school buildings under their control
25 during each day such schools are in session. In all public
26 schools, the board of school directors shall make all rules and
27 necessary regulations for the care and keeping of such flags.
28 The expense thereof shall be paid by the school district.
29 (c) (1) All supervising officers and teachers in charge of
30 public, private or parochial schools shall [establish and direct
20010H0592B4707 - 28 -
1 the conduct of appropriate daily instruction or ceremonies, or,
2 in lieu thereof,] cause the Flag of the United States of America
3 to be displayed in every classroom during the hours of each
4 school day, and shall provide for the recitation of the Pledge
5 of Allegiance or the national anthem at the beginning of each
6 school day. Students may decline to recite the Pledge of
7 Allegiance and may refrain from saluting the flag on the basis
8 of religious conviction or personal belief. The supervising
9 officer of a school subject to the requirements of this
10 subsection shall provide written notification to the parents or
11 guardian of any student who declines to recite the Pledge of
12 Allegiance or who refrains from saluting the flag.
13 (2) This subsection shall not apply to any private or
14 parochial school for which the display of the flag, the
15 recitation of the Pledge of Allegiance or the salute of the flag
16 violates the religious conviction on which the school is based.
17 (d) The supervising officers and teachers in charge of
18 public, private or parochial schools may offer at least one full
19 period per week, for the purpose of affirming and developing
20 allegiance to and respect for the Flag of the United States of
21 America, and for the promoting of a clear understanding of our
22 American way of life, with all of the unparalleled individual
23 opportunities, and our republican form of government, with its
24 responsiveness to majority decisions and demands. Such elements
25 shall be included in this program as instruction in the
26 fundamental principles of our form of government, an
27 understanding of the provisions of the Constitution of the
28 Commonwealth of Pennsylvania and the Constitution of the United
29 States of America, the values to be found in the freedom of
30 speech, of religion and of the press, the values to be found in
20010H0592B4707 - 29 -
1 obedience to the laws of the land and the Commonwealth, the
2 importance of exercising the right of franchise, the obligation
3 of every citizen to stand ready to defend our country at all
4 times from infiltration or aggression by those whose acts and
5 ideologies are contrary to our American philosophy of life.
6 Section 2. This act shall take effect in 60 days. <--
7 SECTION 4. (A) NO SCHOOL DISTRICT SHALL CONDUCT A <--
8 REFERENDUM PURSUANT TO 53 PA.C.S. § 8703 AFTER THE EFFECTIVE
9 DATE OF THIS SECTION.
10 (B) EXCEPT AS PROVIDED UNDER SUBSECTION (C), A SCHOOL
11 DISTRICT WHICH LEVIES THE TAX ON EARNED INCOME AND NET PROFITS
12 UNDER 53 PA.C.S. CH. 87 MAY CONTINUE TO LEVY SUCH TAX AND SHALL
13 CONTINUE TO BE SUBJECT TO THE PROVISIONS OF 53 PA.C.S. CH. 87.
14 (C) A SCHOOL DISTRICT WHICH LEVIES THE TAX ON EARNED INCOME
15 AND NET PROFITS UNDER 53 PA.C.S. CH. 87 MAY OPT INTO THE
16 PROVISIONS OF ARTICLE VI-A BY OBTAINING THE APPROVAL OF THE
17 ELECTORATE OF THE SCHOOL DISTRICT PURSUANT TO SECTION 612-A. IF
18 THE ELECTORATE OF THE AFFECTED SCHOOL DISTRICT APPROVES SUCH
19 REFERENDUM, THE SCHOOL DISTRICT SHALL BE SUBJECT TO THE
20 PROVISIONS OF ARTICLE VI-A AND SHALL NOT BE SUBJECT TO THE
21 PROVISIONS OF 53 PA.C.S. CH. 87.
22 SECTION 5. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
23 (1) THE AMENDMENT OF SECTION 771 OF THE ACT SHALL TAKE
24 EFFECT IN 60 DAYS.
25 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT
26 IMMEDIATELY.
L19L24DMS/20010H0592B4707 - 30 -