PRINTER'S NO. 3150
No. 2499 Session of 1994
INTRODUCED BY PETRARCA, MERRY, OLASZ, BIRMELIN, DALEY, STABACK
AND VAN HORNE, FEBRUARY 1, 1994
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 1, 1994
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for the increase of personal income tax
11 and resulting increased revenues for school districts; and
12 requiring school districts to make corresponding reductions
13 in real property tax rates.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. Section 302 of the act of March 4, 1971 (P.L.6,
17 No.2), known as the Tax Reform Code of 1971, added August 4,
18 1991 (P.L.97, No.22), is amended to read:
19 Section 302. Imposition of Tax.--(a) Every resident
20 individual, estate or trust shall be subject to, and shall pay
21 for the privilege of receiving each of the classes of income
22 hereinafter enumerated in section 303, a tax upon each dollar of
23 income received by that resident during that resident's taxable
1 year at the following rates:
2 (1) Two and one-tenth per cent for taxable years commencing
3 with or within calendar year 1987 through the first half of the
4 taxable year commencing with or within calendar year 1991.
5 (2) Two and eight-tenths per cent for the second half of the
6 taxable year commencing with or within calendar year 1991 and
7 each taxable year thereafter.
8 (3) A temporary assessment equal to an additional three-
9 tenths per cent for the second half of the taxable year
10 commencing with or within calendar year 1991 through the first
11 half of the taxable year commencing with or within calendar year
12 1992.
13 (4) Subject to the approval of the electorate of the
14 referendum set forth in section 302.3, a surcharge equal to an
15 additional one and one-half per cent for the taxable year
16 commencing with or within calendar year 1995 and each taxable
17 year thereafter.
18 (b) Every nonresident individual, estate or trust shall be
19 subject to, and shall pay for the privilege of receiving each of
20 the classes of income hereinafter enumerated in section 303 from
21 sources within this Commonwealth, a tax upon each dollar of
22 income received by that nonresident during that nonresident's
23 taxable year at the following rates:
24 (1) Two and one-tenth per cent for taxable years commencing
25 with or within calendar year 1987 through the first half of the
26 taxable year commencing with or within calendar year 1991.
27 (2) Two and eight-tenths per cent for the second half of the
28 taxable year commencing with or within calendar year 1991 and
29 each taxable year thereafter.
30 (3) A temporary assessment equal to an additional three-
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1 tenths per cent for the second half of the taxable year
2 commencing with or within calendar year 1991 through the first
3 half of the taxable year commencing with or within calendar year
4 1992.
5 (4) Subject to the approval of the electorate of the
6 referendum set forth in section 302.3(a) a surcharge equal to an
7 additional one and one-half per cent for the taxable year
8 commencing with or within calendar year 1995 and each taxable
9 year thereafter.
10 Section 2. The act is amended by adding a section to read:
11 Section 302.3. Referendum; Distribution of Surcharge
12 Revenues.--(a) The question of whether the personal income tax
13 rate should be increased in conjunction with a corresponding
14 reduction in the rate of taxes on real property levied by school
15 districts shall be submitted to the electors at the next
16 primary, municipal or general election following the effective
17 date of this section in accordance with the act of June 3, 1937
18 (P.L.1333, No.320), known as the "Pennsylvania Election Code."
19 The Secretary of the Commonwealth shall certify the form of the
20 question to the county boards of elections. The question on the
21 ballot shall be in substantially the following form:
22 Do you favor increasing the personal income tax an
23 additional one and one-half per cent and requiring school
24 districts to use the revenues received from the
25 additional tax to reduce taxes on real property levied by
26 school districts?
27 (b) The revenues derived from the surcharge imposed under
28 section 302(a)(4) and (b)(4) shall be paid to school districts,
29 each of which shall receive a pro rata share based on pupil
30 enrollment. Each school district shall use the payments it
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1 receives to effect a dollar-for-dollar reduction in revenues
2 derived from a tax on real property levied by the school
3 district. The reduction shall be accomplished by subtracting a
4 uniform and fixed amount from the millage rate of all taxable
5 properties.
6 Section 3. This act shall take effect in 60 days.
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