PRINTER'S NO. 2574
No. 1990 Session of 1997
INTRODUCED BY LLOYD, BELARDI, PESCI, LAUGHLIN, SATHER, READSHAW,
LYNCH, WOJNAROSKI, SAYLOR, SCRIMENTI, DALEY, OLASZ, HERMAN,
BOSCOLA, TRELLO, TULLI, SEMMEL, DeLUCA AND RAMOS,
NOVEMBER 18, 1997
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, NOVEMBER 18, 1997
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 earned income tax.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Division V of section 13 of the act of December
26 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
27 Act, is amended by adding a paragraph and the section is amended
1 by adding a division to read:
2 Section 13. Earned Income Taxes.--On and after the effective
3 date of this act the remaining provisions of this section shall
4 be included in or construed to be a part of each tax levied and
5 assessed upon earned income by any political subdivision levying
6 and assessing such tax pursuant to this act. The definitions
7 contained in this section shall be exclusive for any tax upon
8 earned income and net profits levied and assessed pursuant to
9 this act, and shall not be altered or changed by any political
10 subdivision levying and assessing such tax.
11 V. Powers and Duties of Officer
12 * * *
13 (i) No political subdivision may impose or collect an earned
14 income tax upon the earned income of a nonresident unless the
15 political subdivision in which the taxpayer is domiciled imposes
16 an earned income tax and the tax officer of the collecting
17 political subdivision transmits the tax to the political
18 subdivision in which the taxpayer is domiciled.
19 * * *
20 X. Refund of Earned Income Tax by Political Subdivision
21 (a) Whenever any person has paid or caused to be paid into
22 the treasury of any political subdivision, directly or
23 indirectly, voluntarily or under protest, the earned income tax
24 levied and assessed by ordinance or resolution of such political
25 subdivision or any fees, penalties, fines or other moneys
26 associated with such payment to which the political subdivision
27 is not legally entitled, the tax officer of the political
28 subdivision, upon the filing of a written and verified claim for
29 refund of the payment, shall refund to the taxpayer or his
30 heirs, successors, assigns or other personal representative all
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1 such taxes, fees, penalties, fines or other such moneys to which
2 the political subdivision is not legally entitled. A written
3 claim shall be filed within three years of payment of the tax or
4 other moneys to which the political subdivision is not legally
5 entitled. No fee shall be assessed upon or collected from a
6 taxpayer by a political subdivision for the filing of a claim
7 for a refund under the authority of this section.
8 (b) A taxpayer who has paid the earned income tax to a
9 political subdivision which is not legally entitled to levy the
10 earned income tax on him shall receive interest on the sum of
11 money paid. The political subdivision shall pay interest on such
12 sums at the same rate and in the same manner as the Commonwealth
13 is required to pay pursuant to section 806.1 of the act of April
14 9, 1929 (P.L.343, No.176), known as "The Fiscal Code."
15 (c) If a political subdivision refuses or fails to refund
16 any taxes, interest, fees, penalties, fines or other moneys to
17 which the political subdivision is not legally entitled within
18 thirty days of the filing of a written claim for a refund, the
19 taxpayer may bring suit for and recover any such taxes,
20 interest, fees, penalties, fines or other moneys and any
21 attorney fees and court costs in the court of common pleas of
22 the county wherein such political subdivision is located.
23 Section 2. This act shall take effect in 60 days.
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