PRIOR PRINTER'S NOS. 388, 2293 PRINTER'S NO. 2305
No. 374 Session of 2001
INTRODUCED BY WENGER, TOMLINSON, LAVALLE, COSTA, PICCOLA,
ROBBINS, HOLL, BOSCOLA, WAUGH, M. WHITE, LEMMOND, EARLL,
GREENLEAF, MOWERY, BELL, STOUT, DENT, O'PAKE, MADIGAN,
THOMPSON AND KASUNIC, FEBRUARY 8, 2001
SENATOR BRIGHTBILL, RULES AND EXECUTIVE NOMINATIONS, RE-REPORTED
AS AMENDED, OCTOBER 9, 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," further providing for per capita
6 taxes; providing for wage tax reduction; and making repeals. <--
7 AND PROVIDING FOR THE IMPOSITION AND COLLECTION OF AN EARNED <--
8 INCOME AND NET PROFITS TAX BY SCHOOL DISTRICTS AFTER APPROVAL
9 BY THE ELECTORS.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. Section 679 of the act of March 10, 1949 (P.L.30,
13 No.14), known as the Public School Code of 1949, amended
14 November 26, 1982 (P.L.760, No.215), is amended to read:
15 Section 679. Per Capita Taxes.--Each resident or inhabitant,
16 over eighteen years of age, in every school district of the
17 second, third, and fourth class, which shall levy such tax,
18 shall annually pay, for the use of the school district in which
19 he or she is a resident or inhabitant, a per capita tax of not
20 less than one dollar nor more than five dollars, as may be
1 assessed by the local school district. The tax collector shall
2 not proceed against a spouse or his employer until he has
3 pursued remedies against the delinquent taxpayer and the
4 taxpayer's employer under this section.
5 Each school district may exempt any person whose total income
6 from all sources is less than [five] fifteen thousand dollars
7 per annum from its per capita tax or any portion thereof. The
8 school district may adopt and employ regulations for the
9 processing of claims for the exemption.
10 Section 2. The act is amended by adding an article to read:
11 ARTICLE XX-C <--
12 WAGE TAX REDUCTION
13 Section 2001-C. Definitions.
14 The following words and phrases when used in this article
15 shall have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Fiscal year." The period between July 1 of a year and June
18 30 of the succeeding year as used by a city to determine a
19 fiscal year.
20 Section 2002-C. Wage tax reduction.
21 (a) General rule.--The tax on wages, salaries, compensation,
22 commissions and other income received and imposed by a city of
23 the first class under the act of August 5, 1932 (Sp.Sess.,
24 P.L.45, No.45), referred to as the Sterling Act shall be levied
25 at the rates set forth in this section.
26 (b) Tax utilized by Pennsylvania Intergovernmental
27 Cooperation Authority.--The portion of the wage tax and the net
28 profits tax levied by a city that is utilized for the
29 Pennsylvania Intergovernmental Cooperation Authority shall not
30 be altered by this article.
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1 (c) Collection and due dates of taxes.--Any wage or net
2 profits tax due before June 30, 2002, shall not be effected by
3 this article. The collection methods or due dates of any taxes
4 shall not be effected by this article. All enforcement and
5 collection provisions authorized by the Sterling Act shall
6 remain valid.
7 (d) Residents.--The tax authorized under the Sterling Act
8 and imposed by an ordinance of a city of the first class for
9 residents of a city of the first class in calendar year 2002 is
10 4.5385% including the amount specified for Pennsylvania
11 Intergovernmental Cooperation Authority. For each succeeding
12 fiscal year the rate of taxation shall be no higher than as set
13 forth below:
14 Fiscal Years Rates
15 2003 4.54%
16 2004 4.3285%
17 2005 4.1185%
18 2006 3.9085%
19 2007 3.6985%
20 2008 and thereafter 3.4885%
21 (e) Nonresidents.--The tax authorized under the Sterling Act
22 and imposed by an ordinance of a city of the first class for
23 nonresidents of a city of the first class in calendar year 2002
24 is 3.9462%. For each succeeding fiscal year the rate of taxation
25 shall be no higher than as set forth below:
26 Fiscal Years Rates
27 2003 3.95%
28 2004 3.7636%
29 2005 3.5810%
30 2006 3.3984%
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1 2007 3.2158%
2 2008 and thereafter 3.0332%
3 (f) Business profits of residents.--The tax authorized under
4 the Sterling Act and imposed by an ordinance of a city of the
5 first class for residents of a city of the first class on net
6 profits earned in businesses, professions or other activities in
7 calendar year 2002 is 4.5385% including the amount specified for
8 Pennsylvania Intergovernmental Cooperation Authority. For each
9 succeeding calendar year the rate of taxation shall be no higher
10 than as set forth below:
11 Fiscal Years Rates
12 2003 4.54%
13 2004 4.3285%
14 2005 4.1185%
15 2006 3.9085%
16 2007 3.6985%
17 2008 and thereafter 3.4885%
18 (g) Business profits of nonresidents.--The tax authorized
19 under the Sterling Act and imposed by an ordinance of a city of
20 the first class on net profits earned in businesses, professions
21 or other activities conducted in a city of the first class by
22 nonresidents of a city of the first class in calendar year 2002
23 is 3.9462%. For each succeeding calendar year the rate of
24 taxation shall be no higher than as set forth below:
25 Fiscal Years Rates
26 2003 3.95%
27 2004 3.7636%
28 2005 3.5810%
29 2006 3.3984%
30 2007 3.2158%
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1 2008 and thereafter 3.0332%
2 Section 2003-C. Oversight by the court of common pleas.
3 In the event that a duly elected member of the city council
4 of a city of the first class determines that the determined tax
5 rate is not being reduced by the correct specified amount then
6 that council person may bring suit to the court of common pleas
7 to insure that the specified tax reductions are being utilized.
8 Section 3. The following acts and parts of acts are repealed
9 to the extent specified:
10 Act of August 5, 1932 (Sp.Sess., P.L.45, No.45), referred to
11 as the Sterling Act, is repealed to the extent it is
12 inconsistent with the provisions of 53 Pa.C.S. Ch. 70.
13 Section 359(b)(1) and (2) of the act of March 4, 1971 (P.L.6,
14 No.2), known as the Tax Reform Code of 1971, is repealed insofar
15 as it applies to cities of the first class.
16 Section 4. The addition of Article XX-C of the act shall
17 apply to fiscal years beginning after December 31, 2002.
18 Section 5. This act shall take effect in 60 days.
19 ARTICLE VI-A <--
20 TAXATION BY SCHOOL DISTRICTS
21 (A) GENERAL PROVISIONS.
22 SECTION 601-A. SHORT TITLE OF ARTICLE.
23 THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER
24 CHOICE ACT.
25 SECTION 602-A. DEFINITIONS.
26 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
27 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
28 CONTEXT CLEARLY INDICATES OTHERWISE:
29 "BOARD OF SCHOOL DIRECTORS." A BOARD OF SCHOOL DIRECTORS OF
30 A SCHOOL DISTRICT OF THE SECOND, THIRD OR FOURTH CLASS.
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1 "BUDGETED REVENUE." LOCAL TAX REVENUE, EXCEPT THE TERM DOES
2 NOT INCLUDE REVENUE FROM ANY OF THE FOLLOWING:
3 (1) DELINQUENT TAXES.
4 (2) PAYMENTS IN LIEU OF TAXES.
5 (3) THE REAL ESTATE TRANSFER TAX.
6 (4) THE DISTRIBUTION OF THE PUBLIC UTILITY REALTY TAX,
7 COMMONLY KNOWN AS PURTA.
8 (5) A MERCANTILE OR BUSINESS PRIVILEGE TAX ON GROSS
9 RECEIPTS.
10 (6) AN AMUSEMENT OR ADMISSIONS TAX.
11 "BUSINESS." AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
12 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
13 "CURRENT YEAR." THE FISCAL YEAR FOR WHICH THE TAX IS LEVIED.
14 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
15 DEVELOPMENT OF THE COMMONWEALTH.
16 "DOMICILE." AS DEFINED IN SECTION 13 OF THE ACT OF DECEMBER
17 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
18 ACT.
19 "DWELLING." A STRUCTURE USED AS A PLACE OF HABITATION BY A
20 NATURAL PERSON.
21 "EARNED INCOME." THE CLASSES OF INCOME DEFINED AS EARNED
22 INCOME IN SECTION 13 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257,
23 NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
24 "ELECTION OFFICIALS." THE COUNTY BOARD OF ELECTIONS OF EACH
25 COUNTY.
26 "EMPLOYER." AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
27 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
28 "FARMSTEAD." ALL BUILDINGS AND STRUCTURES ON A FARM NOT LESS
29 THAN TEN CONTIGUOUS ACRES IN AREA, NOT OTHERWISE EXEMPT FROM
30 REAL PROPERTY TAXATION OR QUALIFIED FOR ANY OTHER ABATEMENT OR
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1 EXCLUSION PURSUANT TO ANY OTHER LAW, THAT ARE USED PRIMARILY TO
2 PRODUCE OR STORE ANY FARM PRODUCT PRODUCED ON THE FARM FOR
3 PURPOSES OF COMMERCIAL AGRICULTURAL PRODUCTION, TO HOUSE OR
4 CONFINE ANY ANIMAL RAISED OR MAINTAINED ON THE FARM FOR THE
5 PURPOSE OF COMMERCIAL AGRICULTURAL PRODUCTION, TO STORE ANY
6 AGRICULTURAL SUPPLY TO BE USED ON THE FARM IN COMMERCIAL
7 AGRICULTURAL PRODUCTION OR TO STORE ANY MACHINERY OR EQUIPMENT
8 USED ON THE FARM IN COMMERCIAL AGRICULTURAL PRODUCTION. THIS
9 TERM SHALL ONLY APPLY TO FARMS USED AS THE DOMICILE OF AN OWNER.
10 "FARMSTEAD PROPERTY." A PROPERTY DESIGNATED AS A FARMSTEAD
11 BY THE COUNTY IN WHICH IT IS LOCATED.
12 "HOMESTEAD." A DWELLING, INCLUDING THE PARCEL OF LAND ON
13 WHICH THE DWELLING IS LOCATED AND THE OTHER IMPROVEMENTS LOCATED
14 ON THE PARCEL FOR WHICH ANY OF THE FOLLOWING APPLY:
15 (1) THE DWELLING IS PRIMARILY USED AS THE DOMICILE OF AN
16 OWNER WHO IS A NATURAL PERSON. THE HOMESTEAD FOR REAL
17 PROPERTY QUALIFYING UNDER THIS PARAGRAPH SHALL NOT INCLUDE
18 THE LAND ON WHICH THE DWELLING IS LOCATED IF THE LAND IS NOT
19 OWNED BY A PERSON WHO OWNS THE DWELLING.
20 (2) THE DWELLING IS A UNIT IN A CONDOMINIUM AS THE TERM
21 IS DEFINED IN 68 PA.C.S. § 3103 (RELATING TO DEFINITIONS) AND
22 THE UNIT IS PRIMARILY USED AS THE DOMICILE OF A NATURAL
23 PERSON WHO IS AN OWNER OF THE UNIT; OR THE DWELLING IS A UNIT
24 IN A COOPERATIVE AS THE TERM IS DEFINED IN 68 PA.C.S. § 4103
25 (RELATING TO DEFINITIONS) AND THE UNIT IS PRIMARILY USED AS
26 THE DOMICILE OF A NATURAL PERSON WHO IS AN OWNER OF THE UNIT.
27 THE HOMESTEAD FOR A UNIT IN A CONDOMINIUM OR A COOPERATIVE
28 SHALL BE LIMITED TO THE ASSESSED VALUE OF THE UNIT, WHICH
29 SHALL BE DETERMINED IN A MANNER CONSISTENT WITH THE
30 ASSESSMENT OF REAL PROPERTY TAXES ON THOSE UNITS UNDER 68
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1 PA.C.S. (RELATING TO REAL AND PERSONAL PROPERTY) OR AS
2 OTHERWISE PROVIDED BY LAW. IF THE UNIT IS NOT SEPARATELY
3 ASSESSED FOR REAL PROPERTY TAXES, THE HOMESTEAD SHALL BE A
4 PRO RATA SHARE OF THE REAL PROPERTY.
5 (3) THE DWELLING DOES NOT QUALIFY UNDER PARAGRAPHS (1)
6 AND (2) AND A PORTION OF THE DWELLING IS USED AS THE DOMICILE
7 OF AN OWNER WHO IS A NATURAL PERSON. THE HOMESTEAD FOR REAL
8 PROPERTY QUALIFYING UNDER THIS PARAGRAPH SHALL BE THE PORTION
9 OF THE REAL PROPERTY THAT IS EQUAL TO THE PORTION OF THE
10 DWELLING THAT IS USED AS THE DOMICILE OF AN OWNER.
11 "HOMESTEAD PROPERTY." A PROPERTY DESIGNATED AS A HOMESTEAD
12 BY THE COUNTY IN WHICH IT IS LOCATED.
13 "LOCAL TAX ENABLING ACT." THE ACT OF DECEMBER 31, 1965
14 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
15 "LOCAL TAX REVENUE." THE REVENUE FROM TAXES ACTUALLY LEVIED
16 AND ASSESSED BY A SCHOOL DISTRICT. THE TERM DOES NOT INCLUDE
17 INTEREST OR DIVIDEND EARNINGS, FEDERAL OR STATE GRANTS,
18 CONTRACTS OR APPROPRIATIONS, INCOME GENERATED FROM OPERATIONS OR
19 ANY OTHER SOURCE THAT IS REVENUE NOT DERIVED FROM TAXES LEVIED
20 AND ASSESSED BY A SCHOOL DISTRICT.
21 "MUNICIPALITY." AS DEFINED IN 1 PA.C.S. § 1991 (RELATING TO
22 DEFINITIONS).
23 "NET PROFITS." THE CLASSES OF INCOME DEFINED AS NET PROFITS
24 IN SECTION 13 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257,
25 NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
26 "OWNER." INCLUDES ANY OF THE FOLLOWING:
27 (1) A JOINT TENANT OR TENANT IN COMMON.
28 (2) A PERSON WHO IS PURCHASING REAL PROPERTY UNDER A
29 CONTRACT.
30 (3) A PARTIAL OWNER.
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1 (4) A PERSON WHO OWNS REAL PROPERTY AS A RESULT OF BEING
2 A BENEFICIARY OF A WILL OR TRUST OR AS A RESULT OF INTESTATE
3 SUCCESSION.
4 (5) A PERSON WHO OWNS OR IS PURCHASING A DWELLING ON
5 LEASED LAND.
6 (6) A PERSON HOLDING A LIFE LEASE IN REAL PROPERTY
7 PREVIOUSLY SOLD OR TRANSFERRED TO ANOTHER.
8 (7) A PERSON IN POSSESSION UNDER A LIFE ESTATE.
9 (8) A GRANTOR WHO HAS PLACED THE REAL PROPERTY IN A
10 REVOCABLE TRUST.
11 (9) A MEMBER OF A COOPERATIVE AS DEFINED IN 68 PA.C.S. §
12 4103 (RELATING TO DEFINITIONS).
13 (10) A UNIT OWNER OF A CONDOMINIUM AS DEFINED IN 68
14 PA.C.S. § 3103 (RELATING TO DEFINITIONS).
15 (11) A PARTNER OF A FAMILY FARM PARTNERSHIP OR A
16 SHAREHOLDER OF A FAMILY FARM CORPORATION AS THE TERMS ARE
17 DEFINED IN SECTION 1101-C OF THE ACT OF MARCH 4, 1971 (P.L.6,
18 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
19 "POLITICAL SUBDIVISION." AS DEFINED IN 1 PA.C.S. § 1991
20 (RELATING TO DEFINITIONS).
21 "PRECEDING YEAR." THE FISCAL YEAR BEFORE THE CURRENT YEAR.
22 "PRIMARILY USED." USAGE OF AT LEAST 51% OF THE SQUARE
23 FOOTAGE OF A DWELLING.
24 "RESIDENT INDIVIDUAL." AN INDIVIDUAL WHO IS DOMICILED IN A
25 SCHOOL DISTRICT.
26 "SCHOOL DISTRICT." A SCHOOL DISTRICT OF THE SECOND CLASS,
27 THIRD CLASS OR FOURTH CLASS.
28 "STATEWIDE AVERAGE WEEKLY WAGE." THAT AMOUNT DETERMINED
29 ANNUALLY FOR EACH CALENDAR YEAR BY THE DEPARTMENT OF LABOR AND
30 INDUSTRY UNDER SECTION 105.1 OF THE ACT OF JUNE 2, 1915
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1 (P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT.
2 "SUCCEEDING YEAR." THE FISCAL YEAR FOLLOWING THE CURRENT
3 YEAR.
4 "TAX REFORM CODE." THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
5 KNOWN AS THE TAX REFORM CODE OF 1971.
6 "TAXPAYER." AN INDIVIDUAL REQUIRED UNDER THIS ARTICLE TO
7 FILE A TAX RETURN OR TO PAY A TAX.
8 SECTION 603-A. SCOPE AND LIMITATIONS.
9 (A) GENERAL RULE.--EXCEPT AS PROVIDED IN SUBSECTION (B) AND
10 SECTION 605-A, IT IS THE INTENT OF THIS ARTICLE TO CONFER UPON
11 EACH SCHOOL DISTRICT THE POWER TO LEVY, ASSESS AND COLLECT AN
12 EARNED INCOME AND NET PROFITS TAX AS SET FORTH IN SUBDIVISION
13 (C).
14 (B) REAL ESTATE TRANSFER TAXES.--THIS ARTICLE DOES NOT
15 AFFECT THE POWERS OF A SCHOOL DISTRICT TO LEVY, ASSESS AND
16 COLLECT A REAL ESTATE TRANSFER TAX.
17 (C) OCCUPATION TAX.--THIS ARTICLE SHALL NOT AFFECT THE POWER
18 OF A SCHOOL DISTRICT TO DO ANY OF THE FOLLOWING:
19 (1) TO ELECT TO PLACE A REFERENDUM QUESTION ON THE
20 BALLOT PURSUANT TO THE ACT OF JUNE 22, 2001 (P.L.374, NO.24),
21 KNOWN AS THE OPTIONAL OCCUPATION TAX ELIMINATION ACT. A
22 SCHOOL DISTRICT MAY PLACE SUCH A REFERENDUM QUESTION ON THE
23 BALLOT AT THE SAME MUNICIPAL ELECTION AS A REFERENDUM
24 QUESTION PLACED ON THE BALLOT PURSUANT TO SUBDIVISION (B).
25 (2) TO ELIMINATE ITS OCCUPATION TAX PURSUANT TO THE
26 OPTIONAL OCCUPATION TAX ELIMINATION ACT.
27 SECTION 604-A. PREEMPTION.
28 NO ACT OF THE GENERAL ASSEMBLY WILL VACATE OR PREEMPT ANY
29 RESOLUTION ADOPTED UNDER THIS ARTICLE PROVIDING FOR THE
30 IMPOSITION OF A TAX BY A SCHOOL DISTRICT UNLESS THE ACT OF THE
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1 GENERAL ASSEMBLY EXPRESSLY VACATES OR PREEMPTS THE AUTHORITY TO
2 ADOPT THE RESOLUTION.
3 SECTION 605-A. CERTAIN RATES OF TAXATION LIMITED.
4 IF A MUNICIPALITY AND SCHOOL DISTRICT BOTH IMPOSE AN EARNED
5 INCOME AND NET PROFITS TAX ON THE SAME INDIVIDUAL UNDER THE
6 LOCAL TAX ENABLING ACT AND THE MUNICIPALITY AND SCHOOL DISTRICT
7 ARE LIMITED TO OR HAVE AGREED UPON A DIVISION OF THE TAX RATE IN
8 ACCORDANCE WITH SECTION 8 OF THE LOCAL TAX ENABLING ACT, THEN
9 THE MUNICIPALITY THAT CONTINUES TO LEVY THE EARNED INCOME AND
10 NET PROFITS TAX UNDER THE LOCAL TAX ENABLING ACT SHALL REMAIN
11 SUBJECT TO THAT LIMITATION OR AGREEMENT IN THE EVENT THAT THE
12 SCHOOL DISTRICT OPTS TO IMPOSE AN EARNED INCOME AND NET PROFITS
13 TAX UNDER SECTION 621-A.
14 (B) TAX AUTHORIZATION.
15 SECTION 611-A. GENERAL TAX AUTHORIZATION.
16 SUBJECT TO SECTIONS 613-A AND 614-A, EACH SCHOOL DISTRICT
17 SHALL HAVE THE POWER AND MAY BY RESOLUTION LEVY, ASSESS AND
18 COLLECT OR PROVIDE FOR THE LEVYING, ASSESSMENT AND COLLECTION OF
19 THE EARNED INCOME AND NET PROFITS TAX UNDER SUBDIVISION (C).
20 SECTION 612-A. CONTINUITY OF TAX.
21 THE EARNED INCOME AND NET PROFITS TAX LEVIED UNDER THE
22 PROVISIONS OF SUBDIVISION (C) SHALL CONTINUE IN FORCE ON A
23 FISCAL YEAR BASIS WITHOUT ANNUAL REENACTMENT UNLESS THE RATE OF
24 TAX IS INCREASED OR THE TAX IS SUBSEQUENTLY REPEALED.
25 SECTION 613-A. ADOPTION OF REFERENDUM.
26 (A) GENERAL RULE.--
27 (1) IN ORDER TO LEVY AN EARNED INCOME AND NET PROFITS
28 TAX UNDER SUBDIVISION (C), A BOARD OF SCHOOL DIRECTORS SHALL
29 USE THE PROCEDURES SET FORTH IN SUBSECTION (B).
30 (2) ANY BOARD OF SCHOOL DIRECTORS AFTER MAKING AN
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1 ELECTION TO LEVY AN EARNED INCOME AND NET PROFITS TAX UNDER
2 SUBDIVISION (C) MAY, AFTER A PERIOD OF AT LEAST FIVE FULL
3 FISCAL YEARS, ELECT UNDER THE PROVISIONS OF SUBSECTION (C) TO
4 END PARTICIPATION UNDER THIS SUBDIVISION. IF THE ELECTORATE
5 APPROVES SUCH REFERENDUM, THE BOARD OF SCHOOL DIRECTORS SHALL
6 LOSE THE AUTHORITY TO CONTINUE TO LEVY AN EARNED INCOME AND
7 NET PROFITS TAX AUTHORIZED UNDER SUBDIVISION (C).
8 (B) PUBLIC REFERENDUM REQUIREMENTS.--EXCEPT AS SET FORTH IN
9 SUBSECTION (D) THE FOLLOWING APPLY:
10 (1) SUBJECT TO THE NOTICE AND HEARING REQUIREMENTS OF
11 SECTION 626-A, A BOARD OF SCHOOL DIRECTORS MAY LEVY THE
12 EARNED INCOME AND NET PROFITS TAX UNDER SUBDIVISION (C) ONLY
13 BY OBTAINING THE APPROVAL OF THE ELECTORATE OF THE AFFECTED
14 SCHOOL DISTRICT IN A PUBLIC REFERENDUM AT ONLY THE MUNICIPAL
15 ELECTION PRECEDING THE FISCAL YEAR WHEN THE EARNED INCOME AND
16 NET PROFITS TAX WILL BE INITIALLY IMPOSED. AT THE MUNICIPAL
17 ELECTION NEXT OCCURRING AFTER THE EFFECTIVE DATE OF THIS
18 SECTION, EACH BOARD OF SCHOOL DIRECTORS SHALL CAUSE THE
19 REFERENDUM QUESTION REQUIRED BY THIS SECTION TO BE SUBMITTED
20 TO THE ELECTORS OF THE SCHOOL DISTRICT.
21 (2) IF THE BOARD OF SCHOOL DIRECTORS FAILS TO ADOPT THE
22 RESOLUTION REQUIRED UNDER SECTION 626-A WITHIN 90 DAYS
23 PRECEDING THE MUNICIPAL ELECTION NEXT OCCURRING AFTER THE
24 EFFECTIVE DATE OF THIS SECTION, THE COUNTY BOARD OF ELECTIONS
25 SHALL PREPARE A REFERENDUM QUESTION FOR THE SCHOOL DISTRICT
26 THAT WOULD REQUIRE THE EARNED INCOME AND NET PROFITS TAX TO
27 BE IMPOSED AS AUTHORIZED UNDER SUBDIVISION (C) AT THE MAXIMUM
28 RATE PERMITTED. AT THE MUNICIPAL ELECTION NEXT OCCURRING
29 AFTER THE EFFECTIVE DATE OF THIS SECTION, THE COUNTY BOARD OF
30 ELECTIONS SHALL CAUSE THE REFERENDUM QUESTION REQUIRED BY
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1 THIS SECTION TO BE SUBMITTED TO THE ELECTORS OF THE SCHOOL
2 DISTRICT.
3 (3) THE REFERENDUM QUESTION MUST STATE THE INITIAL RATE
4 OF THE PROPOSED EARNED INCOME AND NET PROFITS TAX TO BE
5 LEVIED UNDER SUBDIVISION (C), THE REASON FOR THE TAX AND THE
6 AMOUNT OF PROPOSED BUDGETED REVENUE GROWTH, IF ANY, IN THE
7 FIRST FISCAL YEAR FOLLOWING ADOPTION OF THE REFERENDUM,
8 EXPRESSED AS A PERCENT INCREASE OVER THE PRIOR YEAR'S
9 BUDGETED REVENUE. ANY INCREASE IN BUDGETED REVENUE BETWEEN
10 THE FIRST FISCAL YEAR FOLLOWING ADOPTION OF THE REFERENDUM
11 AND THE PRIOR YEAR'S BUDGETED REVENUE SHALL NOT EXCEED 2%.
12 THE QUESTION SHALL BE IN CLEAR LANGUAGE THAT IS READILY
13 UNDERSTANDABLE BY A LAYPERSON. FOR THE PURPOSE OF
14 ILLUSTRATION, A REFERENDUM QUESTION MAY BE FRAMED AS FOLLOWS:
15 DO YOU FAVOR THE IMPOSITION OF AN EARNED INCOME AND NET
16 PROFITS TAX OF X% TO BE USED TO REDUCE REAL PROPERTY
17 TAXES BY X% BY MEANS OF A HOMESTEAD EXCLUSION AND PROVIDE
18 FOR A ONE-TIME REVENUE INCREASE OF X% OVER THE PRECEDING
19 FISCAL YEAR?
20 A NONLEGAL INTERPRETATIVE STATEMENT MUST ACCOMPANY THE
21 REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF THE ACT
22 OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE PENNSYLVANIA
23 ELECTION CODE. A BOARD OF SCHOOL DIRECTORS OF A SCHOOL DISTRICT
24 IN WHICH A REFERENDUM UNDER THIS SECTION HAS BEEN APPROVED SHALL
25 NOT BE SUBJECT TO THE PROVISIONS OF SECTION 614-A FOR ANY FUTURE
26 INCREASES IN THE EARNED INCOME AND NET PROFITS TAX RATES
27 AUTHORIZED UNDER SUBDIVISION (C). IF THE REFERENDUM QUESTION
28 FAILS TO RECEIVE A MAJORITY VOTE PURSUANT TO THIS SECTION,
29 APPROVAL OF THE ELECTORATE UNDER SECTION 614-A SHALL NOT BE
30 REQUIRED TO LEVY ANY TAX OR INCREASE THE RATE OF ANY TAX WHICH
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1 THE BOARD OF SCHOOL DIRECTORS OF THE AFFECTED SCHOOL DISTRICT IS
2 AUTHORIZED TO LEVY AND INCREASE PURSUANT TO ANY OTHER ACT.
3 (C) PUBLIC REFERENDUM REQUIREMENTS TO END PARTICIPATION
4 UNDER THIS SUBDIVISION.--SUBJECT TO THE NOTICE AND PUBLIC
5 HEARING REQUIREMENTS IN SECTION 4 OF THE LOCAL TAX ENABLING ACT,
6 A BOARD OF SCHOOL DIRECTORS MAY ELECT TO END PARTICIPATION UNDER
7 THIS SUBDIVISION IN ACCORDANCE WITH SUBSECTION (A)(2) BY
8 OBTAINING THE APPROVAL OF THE ELECTORATE OF THE AFFECTED SCHOOL
9 DISTRICT IN A PUBLIC REFERENDUM AT A MUNICIPAL ELECTION.
10 (D) NONAPPLICABILITY.--SUBSECTION (A) SHALL NOT APPLY TO ANY
11 OF THE FOLLOWING:
12 (1) A SCHOOL DISTRICT IN WHICH A REFERENDUM QUESTION
13 UNDER 53 PA.C.S. § 8703 (RELATING TO ADOPTION OF REFERENDUM)
14 HAS BEEN APPROVED AND IMPLEMENTED.
15 (2) A SCHOOL DISTRICT OF THE FIRST CLASS AND FIRST CLASS
16 A.
17 (3) A SCHOOL DISTRICT CERTIFIED AS DISTRESSED PURSUANT
18 TO SECTION 691 OR CERTIFIED AS AN EDUCATION EMPOWERMENT
19 DISTRICT PURSUANT TO SECTION 1705-B OR 1707-B.
20 SECTION 614-A. PUBLIC REFERENDUM REQUIREMENTS FOR INCREASING
21 CERTAIN TAXES.
22 (A) APPLICABILITY.--THIS SECTION APPLIES TO A BOARD OF
23 SCHOOL DIRECTORS OF A SCHOOL DISTRICT IN WHICH A REFERENDUM
24 UNDER SECTION 613-A HAS BEEN APPROVED.
25 (B) PROHIBITIONS.--EXCEPT AS SET FORTH IN SUBSECTION (F),
26 UNLESS THERE IS COMPLIANCE WITH SUBSECTION (C), A BOARD OF
27 SCHOOL DIRECTORS MAY NOT DO ANY OF THE FOLLOWING:
28 (1) INCREASE THE RATE OF A TAX LEVIED FOR THE SUPPORT OF
29 THE PUBLIC SCHOOLS BY MORE THAN THE PERCENTAGE INCREASE IN
30 THE STATEWIDE AVERAGE WEEKLY WAGE IN THE PRECEDING YEAR.
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1 (2) LEVY A TAX FOR THE SUPPORT OF THE PUBLIC SCHOOLS
2 WHICH WAS NOT LEVIED IN THE FISCAL YEAR IN WHICH A REFERENDUM
3 UNDER SECTION 613-A WAS APPROVED.
4 (C) REFERENDUM.--
5 (1) IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(1),
6 AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE FISCAL YEAR
7 IN WHICH THE PROPOSED TAX INCREASE WOULD TAKE EFFECT:
8 (I) A REFERENDUM STATING THE SPECIFIC RATE OR RATES
9 OF THE TAX INCREASE MUST BE SUBMITTED TO THE ELECTORS
10 RESIDING IN THE SCHOOL DISTRICT; AND
11 (II) A MAJORITY OF THE ELECTORS VOTING ON THE
12 REFERENDUM MUST APPROVE THE INCREASE.
13 (2) IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(2),
14 AT THE PRIMARY ELECTION IMMEDIATELY PRECEDING THE FISCAL YEAR
15 IN WHICH THE PROPOSED TAX WOULD TAKE EFFECT:
16 (I) A REFERENDUM STATING THE SPECIFIC TAX AND RATE
17 TO BE LEVIED MUST BE SUBMITTED TO THE ELECTORS RESIDING
18 IN THE SCHOOL DISTRICT; AND
19 (II) A MAJORITY OF THE ELECTORS VOTING ON THE
20 REFERENDUM MUST APPROVE THE TAX.
21 (D) FAILURE TO APPROVE REFERENDUM.--
22 (1) IF THERE IS NO APPROVAL UNDER SUBSECTION (C)(1)(II),
23 THE BOARD OF SCHOOL DIRECTORS MAY APPROVE AN INCREASE IN THE
24 TAX RATE OF NOT MORE THAN THE PERCENTAGE INCREASE IN THE
25 STATEWIDE AVERAGE WEEKLY WAGE IN THE PRECEDING YEAR.
26 (2) IF THERE IS NO APPROVAL UNDER SUBSECTION (C)(2)(II),
27 THE BOARD OF SCHOOL DIRECTORS IS PROHIBITED FROM LEVYING THE
28 TAX.
29 (E) EXCEPTION TO GENERAL RULE.--THE PROVISIONS OF SUBSECTION
30 (B)(1) SHALL NOT APPLY TO AN INCREASE IN THE RATE OF ANY TAX
20010S0374B2305 - 15 -
1 LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS WHICH IS LESS THAN
2 OR EQUAL TO THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE
3 WEEKLY WAGE IN THE PRECEDING YEAR. PRIOR TO ANY INCREASE UNDER
4 THIS SUBSECTION, THE BOARD OF SCHOOL DIRECTORS MUST CERTIFY TO
5 THE DEPARTMENT OF EDUCATION THE ESTIMATES OF LOCAL TAX RATES
6 UNDER THIS SUBSECTION. THE DEPARTMENT OF EDUCATION MAY, ON ITS
7 OWN MOTION OR ON PETITION OF A PERSON HAVING STANDING UNDER
8 SUBSECTION (H), REVISE THE ESTIMATES CERTIFIED BY THE BOARD OF
9 SCHOOL DIRECTORS AND REDUCE THE ALLOWABLE INCREASE IN THE RATE
10 OF ANY TAX UNDER THIS SUBSECTION.
11 (F) REFERENDUM EXCEPTIONS.--THE PROVISIONS OF SUBSECTION
12 (B)(1) SHALL NOT APPLY TO INCREASES IN THE RATE OF ANY TAX
13 LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS IF SUCH INCREASES
14 ARE NECESSARY TO RESPOND TO ONE OR MORE OF THE FOLLOWING
15 CONDITIONS:
16 (1) TO RESPOND TO OR RECOVER FROM AN EMERGENCY OR
17 DISASTER DECLARED PURSUANT TO 35 PA.C.S. § 7301 (RELATING TO
18 GENERAL AUTHORITY OF GOVERNOR) OR 75 PA.C.S. § 6108 (RELATING
19 TO POWER OF GOVERNOR DURING EMERGENCY), ONLY FOR THE DURATION
20 OF THE EMERGENCY OR DISASTER AND FOR THE COSTS OF THE
21 RECOVERY FROM THE EMERGENCY OR DISASTER.
22 (2) TO IMPLEMENT A COURT ORDER OR AN ADMINISTRATIVE
23 ORDER FROM A FEDERAL OR STATE AGENCY THAT REQUIRES THE
24 EXPENDITURE OF FUNDS THAT EXCEED CURRENT AVAILABLE REVENUES,
25 PROVIDED THAT THE RATE INCREASE IS RESCINDED FOLLOWING
26 FULFILLMENT OF THE COURT ORDER OR ADMINISTRATIVE ORDER.
27 (3) TO PAY INTEREST AND PRINCIPAL ON ANY INDEBTEDNESS
28 INCURRED UNDER 53 PA.C.S. PT. VII SUBPT. B (RELATING TO
29 INDEBTEDNESS AND BORROWING) PRIOR TO THE EFFECTIVE DATE OF
30 THIS SECTION, PROVIDED THAT IN NO CASE MAY THE SCHOOL
20010S0374B2305 - 16 -
1 DISTRICT INCUR ADDITIONAL DEBT UNDER THIS PARAGRAPH, EXCEPT
2 FOR THE REFINANCING OF EXISTING DEBT, INCLUDING THE PAYMENT
3 OF COSTS AND EXPENSES RELATED TO SUCH REFINANCING AND THE
4 ESTABLISHMENT OR FUNDING OF APPROPRIATE DEBT SERVICE RESERVES
5 AND PROVIDED FURTHER THAT THE INCREASE IS RESCINDED FOLLOWING
6 THE FINAL PAYMENT OF INTEREST AND PRINCIPAL. THE EXCEPTION
7 PROVIDED UNDER THIS PARAGRAPH MAY NOT BE USED TO AVOID
8 REFERENDUM REQUIREMENTS TO PAY FOR COSTS WHICH COULD NOT BE
9 FINANCED BY THE ISSUANCE OF DEBT UNDER 53 PA.C.S. (RELATING
10 TO MUNICIPALITIES GENERALLY).
11 (4) TO RESPOND TO CONDITIONS THAT POSE AN IMMEDIATE
12 THREAT OF SERIOUS PHYSICAL HARM OR INJURY TO THE STUDENTS,
13 STAFF OR RESIDENTS OF THE SCHOOL DISTRICT UNTIL THE
14 CIRCUMSTANCES CAUSING THE THREAT HAVE BEEN FULLY RESOLVED.
15 (5) SPECIAL PURPOSE TAX LEVIES APPROVED BY THE
16 ELECTORATE.
17 (6) TO MAINTAIN PER-STUDENT LOCAL TAX REVENUE IN THE
18 SCHOOL DISTRICT AT AN AMOUNT NOT EXCEEDING THE AMOUNT OF PER-
19 STUDENT LOCAL TAX REVENUE AT THE LEVEL OF THE PRECEDING YEAR,
20 ADJUSTED FOR THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE
21 WEEKLY WAGE. THIS PARAGRAPH SHALL APPLY ONLY IF THE
22 PERCENTAGE GROWTH IN AVERAGE DAILY MEMBERSHIP IN THE SCHOOL
23 DISTRICT BETWEEN THE CURRENT FISCAL YEAR AND THE THIRD FISCAL
24 YEAR IMMEDIATELY PRECEDING THE CURRENT FISCAL YEAR EXCEEDS
25 10%. FOR THE PURPOSES OF THIS PARAGRAPH, PER-STUDENT LOCAL
26 TAX REVENUE SHALL BE DETERMINED BY DIVIDING LOCAL TAX REVENUE
27 BY AVERAGE DAILY MEMBERSHIP.
28 (G) COURT ACTION.--PRIOR TO THE IMPOSITION OF THE TAX
29 INCREASE UNDER SUBSECTION (F)(1), (2), (4) OR (6), APPROVAL IS
30 REQUIRED BY THE COURT OF COMMON PLEAS IN THE JUDICIAL DISTRICT
20010S0374B2305 - 17 -
1 IN WHICH THE ADMINISTRATIVE OFFICE OF THE SCHOOL DISTRICT IS
2 LOCATED. THE BOARD OF SCHOOL DIRECTORS SHALL PUBLISH IN A
3 NEWSPAPER OF GENERAL CIRCULATION A NOTICE OF ITS INTENT TO FILE
4 AN ACTION UNDER THIS SUBSECTION AT LEAST ONE WEEK PRIOR TO THE
5 FILING OF THE PETITION. THE BOARD OF SCHOOL DIRECTORS SHALL ALSO
6 PUBLISH IN A NEWSPAPER OF GENERAL CIRCULATION NOTICE, AS SOON AS
7 POSSIBLE FOLLOWING NOTIFICATION FROM THE COURT THAT A HEARING
8 HAS BEEN SCHEDULED, STATING THE DATE, TIME AND PLACE OF THE
9 HEARING ON THE PETITION. THE FOLLOWING SHALL APPLY TO ANY
10 PROCEEDINGS INSTITUTED UNDER THIS SUBSECTION:
11 (1) THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
12 AND CONVINCING EVIDENCE THE NECESSITY FOR THE TAX INCREASE.
13 (2) THE BOARD OF SCHOOL DIRECTORS MUST PROVE BY CLEAR
14 AND CONVINCING EVIDENCE THAT THERE ARE NO ASSETS OR OTHER
15 FEASIBLE ALTERNATIVES AVAILABLE TO THE SCHOOL DISTRICT.
16 (3) THE COURT SHALL DETERMINE THE APPROPRIATE DURATION
17 OF THE INCREASE AND MAY RETAIN CONTINUING JURISDICTION. THE
18 COURT MAY, ON ITS OWN MOTION OR ON PETITION OF AN INTERESTED
19 PARTY, REVOKE APPROVAL FOR OR ORDER RESCISSION OF A TAX
20 INCREASE.
21 (H) STANDING.--A PERSON SHALL HAVE STANDING AS A PARTY TO A
22 PROCEEDING UNDER THIS SECTION AS LONG AS THE PERSON RESIDES
23 WITHIN OR PAYS REAL PROPERTY TAXES TO THE TAXING JURISDICTION OF
24 THE BOARD OF SCHOOL DIRECTORS INSTITUTING THE ACTION.
25 SECTION 615-A. PROPERTY TAX LIMITS ON REASSESSMENT.
26 AFTER ANY COUNTY MAKES A COUNTYWIDE REVISION OF ASSESSMENT OF
27 REAL PROPERTY AT VALUES BASED UPON AN ESTABLISHED PREDETERMINED
28 RATIO AS REQUIRED BY LAW OR AFTER ANY COUNTY CHANGES ITS
29 ESTABLISHED PREDETERMINED RATIO, A BOARD OF SCHOOL DIRECTORS IN
30 A SCHOOL DISTRICT IN WHICH A REFERENDUM UNDER SECTION 613-A HAS
20010S0374B2305 - 18 -
1 BEEN APPROVED, WHICH HEREAFTER FOR THE FIRST TIME LEVIES ITS
2 REAL ESTATE TAXES ON THAT REVISED ASSESSMENT OR VALUATION SHALL
3 FOR THE FIRST YEAR REDUCE ITS TAX RATE, IF NECESSARY, FOR THE
4 PURPOSE OF HAVING THE PERCENTAGE INCREASE IN TAXES LEVIED FOR
5 THAT YEAR AGAINST THE REAL PROPERTIES CONTAINED IN THE DUPLICATE
6 FOR THE PRECEDING YEAR BE LESS THAN OR EQUAL TO THE PERCENTAGE
7 INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE FOR THE PRECEDING
8 YEAR NOTWITHSTANDING THE INCREASED VALUATIONS OF SUCH PROPERTIES
9 UNDER THE REVISED ASSESSMENT. FOR THE PURPOSE OF DETERMINING THE
10 TOTAL AMOUNT OF TAXES TO BE LEVIED FOR THE FIRST YEAR, THE
11 AMOUNT TO BE LEVIED ON NEWLY CONSTRUCTED BUILDINGS OR STRUCTURES
12 OR ON INCREASED VALUATIONS BASED ON NEW IMPROVEMENTS MADE TO
13 EXISTING HOUSES NEED NOT BE CONSIDERED. THE TAX RATE SHALL BE
14 FIXED FOR THAT YEAR AT A FIGURE WHICH WILL ACCOMPLISH THIS
15 PURPOSE. THE PROVISIONS OF SECTION 614-A SHALL APPLY TO
16 INCREASES IN THE TAX RATE ABOVE THE LIMITS PROVIDED IN THIS
17 SECTION.
18 (C) EARNED INCOME TAX.
19 SECTION 621-A. EARNED INCOME AND NET PROFITS TAX.
20 A BOARD OF SCHOOL DIRECTORS SHALL HAVE THE POWER TO LEVY,
21 ASSESS AND COLLECT A TAX ON THE EARNED INCOME AND NET PROFITS OF
22 RESIDENT INDIVIDUALS OF THE SCHOOL DISTRICT AT A RATE NOT TO
23 EXCEED THE RATE REQUIRED TO PROVIDE AN EXCLUSION FOR FARMSTEAD
24 PROPERTY AND AN EXCLUSION FOR HOMESTEAD PROPERTY EQUAL TO THE
25 MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586 (RELATING TO
26 LIMITATIONS), ROUNDED TO THE NEAREST TENTH OF A PERCENT. THE
27 EXCLUSION FOR FARMSTEAD PROPERTY GRANTED UNDER THIS SECTION
28 SHALL NOT EXCEED THE AMOUNT GRANTED FOR THE EXCLUSION FOR
29 HOMESTEAD PROPERTY.
30 SECTION 622-A. COLLECTIONS.
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1 A BOARD OF SCHOOL DIRECTORS IMPOSING A TAX UNDER SECTION 621-
2 A SHALL DESIGNATE THE TAX OFFICER WHO IS APPOINTED UNDER SECTION
3 10 OF THE LOCAL TAX ENABLING ACT, OR OTHERWISE BY LAW, AS THE
4 COLLECTOR OF THE EARNED INCOME AND NET PROFITS TAX. IN THE
5 PERFORMANCE OF THE TAX COLLECTION DUTIES UNDER THIS SUBDIVISION,
6 THE DESIGNATED TAX OFFICER SHALL HAVE ALL THE SAME POWERS,
7 RIGHTS, RESPONSIBILITIES AND DUTIES FOR THE COLLECTION OF THE
8 TAXES WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING ACT, 53
9 PA.C.S. CH. 84, SUBCH. C (RELATING TO LOCAL TAXPAYERS BILL OF
10 RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
11 SECTION 623-A. CREDITS.
12 (A) GENERAL RULE.--THE PROVISIONS OF SECTION 14 OF THE LOCAL
13 TAX ENABLING ACT SHALL BE USED TO DETERMINE ANY CREDITS UNDER
14 THE PROVISIONS OF THIS SUBDIVISION FOR ANY TAXES IMPOSED UNDER
15 SECTION 621-A.
16 (B) TAX CREDIT.--NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
17 TO THE CONTRARY, PAYMENT OF A TAX ON SALARIES, WAGES,
18 COMMISSIONS OR OTHER COMPENSATION TO A SCHOOL DISTRICT BY
19 RESIDENTS OF THE SCHOOL DISTRICT SHALL BE CREDITED AND PAID TO
20 THE SCHOOL DISTRICT OF RESIDENCE AND ALLOWED AS A DEDUCTION FROM
21 THE LIABILITY OF THE TAXPAYER FOR ANY OTHER TAX ON SALARIES,
22 WAGES, COMMISSIONS OR OTHER COMPENSATION IMPOSED BY A CITY OF
23 THE FIRST CLASS UNDER THE AUTHORITY OF THE ACT OF AUGUST 5, 1932
24 (SP.SESS., P.L.45, NO.45), REFERRED TO AS THE STERLING ACT.
25 SECTION 624-A. EARNED INCOME AND NET PROFITS TAX EXEMPTION.
26 A SCHOOL DISTRICT THAT IMPOSES AN EARNED INCOME AND NET
27 PROFITS TAX UNDER THIS SUBDIVISION MAY EXEMPT FROM THE PAYMENT
28 OF THAT TAX ANY PERSON WHOSE TOTAL INCOME FROM ALL SOURCES IS
29 LESS THAN $7,500.
30 SECTION 625-A. RULES AND REGULATIONS.
20010S0374B2305 - 20 -
1 TAXES IMPOSED UNDER SECTION 621-A WILL BE SUBJECT TO ALL
2 REGULATIONS ADOPTED UNDER SECTION 13 OF THE LOCAL TAX ENABLING
3 ACT. A SCHOOL DISTRICT MAY ADOPT REGULATIONS FOR THE PROCESSING
4 OF CLAIMS FOR CREDITS OR EXEMPTIONS UNDER SECTIONS 623-A AND
5 624-A.
6 SECTION 626-A. PROCEDURE AND ADMINISTRATION.
7 IN ORDER TO LEVY THE TAX UNDER SECTION 621-A, THE BOARD OF
8 SCHOOL DIRECTORS SHALL ADOPT A RESOLUTION WHICH SHALL REFER TO
9 THIS SUBDIVISION PRIOR TO PLACING A REFERENDUM QUESTION ON THE
10 BALLOT UNDER SECTION 613-A. PRIOR TO ADOPTING A RESOLUTION
11 IMPOSING THE TAX AUTHORIZED BY SECTION 621-A, THE BOARD OF
12 SCHOOL DIRECTORS SHALL GIVE PUBLIC NOTICE OF ITS INTENT TO ADOPT
13 THE RESOLUTION IN THE MANNER PROVIDED BY SECTION 4 OF THE LOCAL
14 TAX ENABLING ACT AND SHALL CONDUCT AT LEAST ONE PUBLIC HEARING
15 REGARDING THE PROPOSED ADOPTION OF THE RESOLUTION.
16 SECTION 627-A. DISPOSITION OF EARNED INCOME AND NET PROFITS TAX
17 REVENUE.
18 THE DISPOSITION OF REVENUE FROM AN EARNED INCOME AND NET
19 PROFITS TAX OR AN INCREASE IN THE RATE OF AN EARNED INCOME AND
20 NET PROFITS TAX IMPOSED BY SCHOOL DISTRICTS UNDER THE AUTHORITY
21 OF THIS SUBDIVISION SHALL OCCUR IN THE FOLLOWING MANNER:
22 (1) FOR THE FISCAL YEAR OF IMPLEMENTATION OF A NEWLY
23 IMPOSED INCOME TAX, ALL EARNED INCOME AND NET PROFITS TAX
24 REVENUE RECEIVED BY A SCHOOL DISTRICT SHALL BE USED TO
25 PROVIDE FOR AN INCREASE IN BUDGETED REVENUES OVER THE
26 PRECEDING FISCAL YEAR IN ACCORDANCE WITH THE AMOUNT SPECIFIED
27 IN THE REFERENDUM QUESTION APPROVED BY THE VOTERS UNDER
28 SECTION 613-A AND TO REDUCE THE SCHOOL DISTRICT REAL PROPERTY
29 TAX BY MEANS OF AN EXCLUSION FOR FARMSTEAD PROPERTY AND
30 HOMESTEAD PROPERTY PURSUANT TO SECTION 621-A.
20010S0374B2305 - 21 -
1 (2) FOR THE FISCAL YEAR OF IMPLEMENTATION OF AN INCREASE
2 IN THE RATE OF THE EXISTING EARNED INCOME AND NET PROFITS TAX
3 IMPOSED UNDER THIS SUBDIVISION, ALL REVENUE RECEIVED BY A
4 SCHOOL DISTRICT DIRECTLY ATTRIBUTABLE TO THE INCREASED RATE
5 SHALL BE USED TO REDUCE THE SCHOOL DISTRICT REAL PROPERTY TAX
6 BY MEANS OF AN EXCLUSION FOR FARMSTEAD PROPERTY AND HOMESTEAD
7 PROPERTY PURSUANT TO SECTION 621-A.
8 (D) REGISTER.
9 SECTION 691-A. REGISTER FOR TAXES.
10 (A) GENERAL RULE.--THE DEPARTMENT SHALL MAINTAIN AN OFFICIAL
11 CONTINUING REGISTER SUPPLEMENTED ANNUALLY OF ALL LOCAL EARNED
12 INCOME AND NET PROFITS TAXES LEVIED UNDER SUBDIVISION (C).
13 (B) CONTENTS OF REGISTER.--THE REGISTER SHALL LIST:
14 (1) THE SCHOOL DISTRICTS LEVYING LOCAL EARNED INCOME AND
15 NET PROFITS TAX.
16 (2) THE RATE OF TAX AS STATED IN THE RESOLUTION LEVYING
17 THE TAX.
18 (3) THE RATE ON TAXPAYERS.
19 (4) THE NAME AND ADDRESS OF THE OFFICIAL RESPONSIBLE FOR
20 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM
21 INFORMATION, FORMS AND COPIES OF REGULATIONS ARE AVAILABLE.
22 SECTION 692-A. INFORMATION FOR REGISTER.
23 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE SCHOOL
24 DISTRICT TO THE DEPARTMENT AS PRESCRIBED BY THE DEPARTMENT. THE
25 INFORMATION MUST BE RECEIVED BY THE DEPARTMENT NO LATER THAN
26 JULY 15 OF EACH YEAR TO SHOW NEW TAX ENACTMENTS, REPEALS AND
27 CHANGES. FAILURE TO COMPLY WITH THE FILING DATE MAY RESULT IN
28 THE OMISSION OF THE TAX LEVY FROM THE REGISTER FOR THAT YEAR.
29 FAILURE OF THE DEPARTMENT TO RECEIVE INFORMATION OF TAXES
30 CONTINUED WITHOUT CHANGE MAY BE CONSTRUED BY THE DEPARTMENT TO
20010S0374B2305 - 22 -
1 MEAN THAT THE INFORMATION CONTAINED IN THE PREVIOUS REGISTER
2 REMAINS IN FORCE.
3 SECTION 693-A. AVAILABILITY AND EFFECTIVE PERIOD OF REGISTER.
4 THE REGISTER, WITH SUCH ANNUAL SUPPLEMENTS AS MAY BE REQUIRED
5 BY NEW TAX ENACTMENTS, REPEALS OR CHANGES, SHALL BE AVAILABLE
6 UPON REQUEST NO LATER THAN AUGUST 15 OF EACH YEAR. THE EFFECTIVE
7 PERIOD FOR EACH REGISTER SHALL BE FROM JULY 1 OF THE YEAR IN
8 WHICH IT IS ISSUED TO JUNE 30 OF THE FOLLOWING YEAR.
9 SECTION 694-A. EFFECT OF NONFILING.
10 EMPLOYERS SHALL NOT BE REQUIRED BY ANY ORDINANCE TO WITHHOLD
11 FROM THE COMPENSATION OF THEIR EMPLOYEES ANY LOCAL EARNED INCOME
12 AND NET PROFITS TAX IMPOSED UNDER SUBDIVISION (C) WHICH IS NOT
13 LISTED IN THE REGISTER OR TO MAKE REPORTS OF COMPENSATION IN
14 CONNECTION WITH TAXES NOT SO LISTED. IF THE REGISTER IS NOT
15 AVAILABLE BY AUGUST 15, THE REGISTER OF THE PREVIOUS YEAR SHALL
16 CONTINUE TO BE EFFECTIVE FOR AN ADDITIONAL PERIOD OF NOT MORE
17 THAN ONE YEAR.
18 SECTION 695-A. EFFECT OF SUBDIVISION ON LIABILITY OF TAXPAYER.
19 THE PROVISIONS OF THIS SUBDIVISION SHALL NOT AFFECT THE
20 LIABILITY OF ANY TAXPAYER FOR TAXES LAWFULLY IMPOSED UNDER
21 SUBDIVISIONS (B) AND (C).
22 SECTION 3. THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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