SENATE AMENDED
PRIOR PRINTER'S NOS. 1940, 3089, 3112, PRINTER'S NO. 4776
3872, 4459, 4746
No. 1535 Session of 2003
INTRODUCED BY LEWIS, ARMSTRONG, CAPPELLI, CREIGHTON, DALLY,
DENLINGER, ROHRER, SCAVELLO, T. STEVENSON, YOUNGBLOOD AND
YUDICHAK, JUNE 4, 2003
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 18, 2004
AN ACT
1 Amending the act of December 31, 1965 (P.L.1257, No.511),
2 entitled "An act empowering cities of the second class,
3 cities of the second class A, cities of the third class,
4 boroughs, towns, townships of the first class, townships of
5 the second class, school districts of the second class,
6 school districts of the third class and school districts of
7 the fourth class including independent school districts, to
8 levy, assess, collect or to provide for the levying,
9 assessment and collection of certain taxes subject to maximum
10 limitations for general revenue purposes; authorizing the
11 establishment of bureaus and the appointment and compensation
12 of officers, agencies and employes to assess and collect such
13 taxes; providing for joint collection of certain taxes,
14 prescribing certain definitions and other provisions for
15 taxes levied and assessed upon earned income, providing for
16 annual audits and for collection of delinquent taxes, and
17 permitting and requiring penalties to be imposed and
18 enforced, including penalties for disclosure of confidential
19 information, providing an appeal from the ordinance or
20 resolution levying such taxes to the court of quarter
21 sessions and to the Supreme Court and Superior Court,"
22 further providing for administrative personnel for the
23 collection of taxes, for earned income taxes and for
24 collection of taxes by suit; and providing for costs of
25 collection of delinquent per capita, occupation, occupational
26 privilege and earned income taxes AND FOR LEGAL <--
27 REPRESENTATION.
28 The General Assembly of the Commonwealth of Pennsylvania
29 hereby enacts as follows:
1 Section 1. Section 10(a) of the act of December 31, 1965
2 (P.L.1257, No.511), known as The Local Tax Enabling Act, is
3 amended to read:
4 Section 10. Collection of Taxes.--(a) Administrative
5 Personnel; Joint Agreements.--Any such political subdivision is
6 hereby authorized to provide by ordinance or resolution for the
7 creation or designation of such bureaus or the appointment and
8 compensation of such officers, clerks, collectors, private
9 agencies or other person and other assistants and employes,
10 either under existing departments, or otherwise as may be deemed
11 necessary, for the assessment and collection of taxes imposed
12 under authority of this act. Each ordinance OR resolution or <--
13 designation under this section AUTHORIZING A PERSON, PUBLIC <--
14 EMPLOYE OR PRIVATE AGENCY to act in the capacity and with the
15 authority of a tax collector shall continue in force without
16 annual reauthorization unless otherwise repealed or revoked by
17 the political subdivision.
18 Any political subdivisions imposing taxes under authority of
19 this act are authorized to make joint agreements for the
20 collection of such taxes or any of them. The same person or
21 agency may be employed by two or more political subdivisions to
22 collect any taxes imposed by them under authority of this act.
23 * * *
24 Section 2. Section 13V(h) of the act, added July 15, 1976
25 (P.L.1047, No.210), is amended to read:
26 Section 13. Earned Income Taxes.--On and after the effective
27 date of this act the remaining provisions of this section shall
28 be included in or construed to be a part of each tax levied and
29 assessed upon earned income by any political subdivision levying
30 and assessing such tax pursuant to this act. The definitions
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1 contained in this section shall be exclusive for any tax upon
2 earned income and net profits levied and assessed pursuant to
3 this act, and shall not be altered or changed by any political
4 subdivision levying and assessing such tax.
5 * * *
6 V. Powers and Duties of Officer
7 * * *
8 (h) The officer shall[, at least quarterly,] distribute
9 earned income taxes to the appropriate political subdivisions
10 within thirty days of the end of each quarter SIXTY DAYS OF THE <--
11 DEADLINE FOR PAYMENT BY AN EMPLOYE EMPLOYER AS SET FORTH IN <--
12 DIVISION IV(B). The political subdivisions shall not be required
13 to request the officer to distribute the funds collected but
14 shall at least annually reconcile their receipts with the
15 records of the officer and return to or credit the officer with
16 any overpayment. A political subdivision shall not be required
17 to pay a fee or commission to the other political subdivision or
18 its tax officer for tax revenue distributed under this
19 subsection. If the officer, within one year after receiving a
20 tax payment, cannot identify the taxing jurisdiction entitled to
21 a tax payment, he shall make payment to the municipality in
22 which the tax was collected. [Within one hundred twenty days of
23 the passage of this act, any present accumulated funds that are
24 unclaimed shall be distributed on the same basis.] If earned
25 income taxes are not distributed to the appropriate political
26 subdivision within one year of receipt, counsel for the <--
27 political subdivision may make a written demand on a tax officer
28 or political subdivision for tax revenues collected and
29 attributable to residents of the political subdivision making
30 the demand. If the taxes attributable to residents of the
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1 political subdivision making the demand are not paid within
2 thirty days from the date of the demand, counsel for the <--
3 political subdivision, person, public employe or private agency
4 designated by the political subdivision may ENTER INTO AN <--
5 ARBITRATION AGREEMENT WITH THE OFFICER UNDER 42 PA.C.S. CH. 73
6 SUBCH. A (RELATING TO STATUTORY ARBITRATION) OR bring an action
7 in an appropriate court of common pleas in the name of the
8 taxing district for the recovery of taxes not distributed in
9 accordance with this subsection. The action must be brought
10 within seven years of the collection of the taxes.
11 * * *
12 Section 3. Section 21 of the act is amended to read:
13 Section 21. Collection of Taxes by Suit.--Each taxing
14 district or person, public employe or private agency designated
15 by the taxing district shall have power to collect unpaid taxes
16 from the persons owing such taxes by suit in assumpsit or other
17 appropriate remedy. Upon each such judgment, execution may be
18 issued without any stay or benefit of any exemption law. The
19 right of each such taxing district to collect unpaid taxes under
20 the provisions of this section shall not be affected by the fact
21 that such taxes have been entered as liens in the office of the
22 prothonotary, or the fact that the property against which they
23 were levied has been returned to the county commissioners for
24 taxes for prior years.
25 Section 4. The act is amended by adding a section SECTIONS <--
26 to read:
27 Section 22.1. Costs of Collection of Delinquent Per Capita,
28 Occupation, Occupational Privilege and Earned Income Taxes.--(a)
29 A person, public employe or private agency designated by a
30 governing body OF A POLITICAL SUBDIVISION to collect and <--
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1 administer a per capita, occupation, occupational privilege or
2 earned income tax may assess, levy IMPOSE and collect the <--
3 reasonable costs incurred to provide notices of delinquency or
4 to implement similar procedures utilized to collect delinquent
5 taxes from a taxpayer, AS APPROVED BY THE GOVERNING BODY OF THE <--
6 POLITICAL SUBDIVISION. REASONABLE COSTS COLLECTED SHALL MAY BE <--
7 RETAINED BY THE PERSON, PUBLIC EMPLOYE OR PRIVATE AGENCY
8 DESIGNATED TO COLLECT THE TAX, AS AGREED TO BY THE GOVERNING <--
9 BODY OF THE POLITICAL SUBDIVISION. AN ITEMIZED ACCOUNTING OF ALL
10 COSTS COLLECTED SHALL BE REMITTED TO THE POLITICAL SUBDIVISION
11 ON AN ANNUAL BASIS.
12 (b) Costs related to the collection of unpaid per capita,
13 occupation or occupational privilege taxes may only be assessed,
14 levied and collected for five years from the last day of the
15 calendar year in which the tax was due.
16 (C) A DELINQUENT TAXPAYER MAY NOT BRING AN ACTION FOR <--
17 REIMBURSEMENT, REFUND OR ELIMINATION OF REASONABLE COSTS OF
18 COLLECTION ASSESSED OR IMPOSED PRIOR TO THE EFFECTIVE DATE OF
19 THIS SECTION. ADDITIONAL COSTS MAY NOT BE ASSESSED ON DELINQUENT
20 TAXES COLLECTED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
21 (D) THIS SECTION IS INTENDED TO BE A CLARIFICATION OF <--
22 EXISTING LAW AND SHALL NOT EXPAND THE RIGHT OR OBLIGATIONS OF A
23 POLITICAL SUBDIVISION OR TAXPAYER.
24 SECTION 22.2. CLARIFICATION OF EXISTING LAW.--THE ADDITION <--
25 OF SECTION 22.1 OF THIS ACT IS INTENDED AS A CLARIFICATION OF
26 EXISTING LAW AND IS NOT INTENDED TO:
27 (1) ESTABLISH NEW RIGHTS OR ENLARGE EXISTING RIGHTS OF
28 POLITICAL SUBDIVISIONS OR EMPLOYES OR AGENTS OF POLITICAL
29 SUBDIVISIONS; OR
30 (2) ESTABLISH NEW OBLIGATIONS OR ENLARGE EXISTING
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1 OBLIGATIONS OF TAXPAYERS.
2 SECTION 22.2 22.3. LEGAL REPRESENTATION.--WHEN BRINGING A <--
3 SUIT UNDER ANY PROVISION OF THIS ACT, THE TAXING DISTRICT,
4 OFFICER, PERSON, PUBLIC EMPLOYE OR PRIVATE AGENCY DESIGNATED BY
5 THE TAXING DISTRICT SHALL BE REPRESENTED BY AN ATTORNEY.
6 Section 5. This act shall take effect in 60 days.
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