THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY COSTA, ORIE, STOUT, FONTANA, LOGAN, KITCHEN, BROWNE, PIPPY, WASHINGTON AND FERLO, FEBRUARY 19, 2009

REFERRED TO FINANCE, FEBRUARY 19, 2009  

AN ACT

Amending the act of July 28, 1953 (P.L.723, No.230), entitled,

as amended, "An act relating to counties of the second class

and second class A; amending, revising, consolidating and

changing the laws relating thereto," further providing for

tax relief and use of disbursements.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3171-B of the act of July 28, 1953 (P.L.

723, No.230), known as the Second Class County Code, amended

November 30, 2004 (P.L.1439, No.186), is amended to read:

Section 3171-B.  Tax Relief and Use of Disbursements.--(a)

(1)  The county and the city shall utilize the disbursements

received from the State Treasurer under section 3157-B(b) in the

first full calendar year in which the disbursements are received

for the reduction of local taxes.

(2)  Effective January 1 of the first full calendar year in

which disbursements are received pursuant to section 3157-B(b),

the county and the city shall repeal any tax imposed upon

personal property.

(3)  Effective January 1 of the first full calendar year in

which disbursements are received pursuant to section 3157-B(b),

the city shall reduce to an amount not to exceed five per centum

(5%) the tax on admissions to places of amusement, athletic

events and the like and on motion picture theaters.

(3.1)  Notwithstanding the provisions of any other act, the

city shall use two-thirds of the nonresident sports facility

usage fee collected pursuant to the act of December 31, 1965

(P.L.1257, No.511), known as "The Local Tax Enabling Act," to

reduce the amount of tax on admissions to places of amusement

that are involved with performing arts for which the net

proceeds therefrom inure to the benefit of an institution of

purely public charity. In reducing the rate of the tax pursuant

to this provision, the city shall not establish a rate that

exceeds two and one-half per centum (2.5%). If the city cannot

impose and collect a nonresident sports facility usage fee

pursuant to "The Local Tax Enabling Act," the city shall not

establish a rate that exceeds five per centum (5%).

(4)  The county and the city shall utilize all or a portion

of revenues remaining from disbursements received pursuant to

section 3157-B(b) after reducing taxes as provided by clauses

(1) and (2) for the implementation of one of the following:

(i)  programs under the act of December 13, 1988 (P.L.1190,

No.146), known as the "First and Second Class County Property

Tax Relief Act";

(ii)  a program for property tax rebate or rent rebate in

lieu of property taxes modeled by the county or city after [the

act of March 11, 1971 (P.L.104, No.3), known as the "Senior

Citizens Rebate and Assistance Act,"] Chapter 13 of the act of

June 27, 2006 (1st Sp.Sess., P.L.1873, No.1) known as the

"Taxpayer Relief Act," for longtime owner-occupants of personal

residences. Property eligible for tax relief under this clause

shall be limited to a primary personal residence owned by a

single person age 62 or older or by married persons if either

spouse is 62 years of age or older. Tax relief provided pursuant

to this clause shall be limited to persons whose income as

defined under [the act of March 11, 1971 (P.L.104, No.3), known

as the "Senior Citizens Rebate and Assistance Act,"] Chapter 13

of the "Taxpayer Relief Act" does not exceed twenty-five

thousand dollars ($25,000); or

(iii)  a program for property tax rebate or rent rebate in

lieu of property taxes modeled by the county or city after the

["Senior Citizens Rebate and Assistance Act"] "Taxpayer Relief

Act" for longtime owner-occupants of personal residences.

Property eligible for tax relief under this clause shall be

limited to a primary personal residence owned by a single person

age 60 or older or by married persons if either spouse is 60

years of age or older. Tax relief provided pursuant to this

clause shall be limited to persons whose income as defined under

the ["Senior Citizens Rebate and Assistance Act"] "Taxpayer

Relief Act" does not exceed thirty thousand dollars ($30,000).

For purposes of this clause, "longtime owner-occupant" shall

mean:

(A)  any person who for at least ten continuous years has

owned and has occupied a dwelling place within the county as a

principal residence and domicile, or any person who for at least

five years has owned and occupied a dwelling within the county

as a principal residence and domicile if that person received

assistance in the acquisition of the property as part of a

government or nonprofit housing program[.]; or

(B)  any person who has owned and occupied a dwelling place

within the county as a principal residence and domicile for a

period of 20 continuous years but after that time moved and was

not an owner of the dwelling place that was a principal domicile

but who currently owns and occupies a dwelling place within the

county as a principal domicile for a period of not less than two

years.

(5)  The county may establish installment payment programs

for payment of the property taxes by taxpayers who participate

in county programs for real property tax relief pursuant to

clause (4).

(b)  (1)  Municipalities other than the county and the city

shall utilize at least two-thirds of the disbursements received

under section 3157-B(b) for the reduction of local taxes.

(2)  Municipalities other than the county and the city shall

utilize all or a portion of disbursements received for the

purpose of reducing local taxes for the implementation of

programs for real property tax relief. Such programs may consist

of a program as provided by subsection (a)(4), a program for

property tax rebate or rent rebate in lieu of property taxes

modeled after [the "Senior Citizens Rebate and Assistance Act,"]

Chapter 13 of the "Taxpayer Relief Act," a reduction in the

millage rate across all properties or a combination of the

foregoing.

(3)  Municipalities in counties of the second class, other

than the county and the city, which do not impose a tax upon

personal property on the effective date of this amendatory act

are prohibited from imposing such a tax thereafter.

(c)  No municipality or city may use disbursements received

for the purpose of securing the bonds of a municipal authority

or may allow disbursements received to be controlled or

distributed by an entity other than the governing body of the

municipality.

Section 2.  This act shall take effect immediately.