PRINTER'S NO. 4039
No. 2802 Session of 1986
INTRODUCED BY LLOYD, TRELLO, RYBAK, PETRONE, COY, TIGUE,
DISTLER, STABACK, NOYE, PISTELLA, FARGO, TELEK, MORRIS,
PETRARCA, BOOK, McVERRY, OLASZ, BATTISTO, E. Z. TAYLOR AND
VEON, OCTOBER 1, 1986
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 1, 1986
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 regulating interest and penalties.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Division VIII of section 13 and section 22 of the
26 act of December 31, 1965 (P.L.1257, No.511), known as The Local
27 Tax Enabling Act, are amended to read:
1 Section 13. Earned Income Taxes.--* * *
2 VIII. Interest and Penalties
3 If for any reason the tax is not paid when due, interest at
4 the rate of up to six percent per annum on the amount of said
5 tax, and an additional penalty of up to one-half of one percent
6 of the amount of the unpaid tax for each month or fraction
7 thereof during which the tax remains unpaid, [shall] may be
8 added and collected, provided that no such interest or penalty
9 shall be enforced against any person unless the political
10 subdivision has provided written notice to that person advising
11 that a tax is owed and that such interest or penalty will be
12 enforced if such tax is not paid within 60 days. Where suit is
13 brought for the recovery of any such tax, the person liable
14 therefor shall, in addition, be liable for the costs of
15 collection and the interest and penalties herein imposed. No
16 political subdivision shall levy, assess, prescribe, or enforce
17 any interest, penalty or other fee upon or against any person
18 who paid such tax when it was due. No political subdivision
19 which questions if a tax has been paid shall levy, assess,
20 prescribe or enforce any interest, penalty or other fee upon or
21 against any person for the cost to the political subdivision of
22 determining that such tax was paid prior to the time at which
23 payment was questioned by the political subdivision.
24 * * *
25 Section 22. Penalties.--Except as otherwise provided in the
26 case of any tax levied and assessed upon earned income, any such
27 political subdivision shall have power to prescribe and enforce
28 reasonable penalties for the nonpayment, within the time fixed
29 for their payment, of taxes imposed under authority of this act
30 and for the violations of the provisions of ordinances or
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1 resolutions passed under authority of this act, provided that no
2 such interest or penalty shall be enforced against any person
3 unless the political subdivision has provided written notice to
4 that person advising that a tax is owed and that such interest
5 or penalty will be enforced if such tax is not paid within 60
6 days.
7 If for any reason any tax levied and assessed upon earned
8 income by any such political subdivision is not paid when due,
9 interest at the rate of up to six percent per annum on the
10 amount of said tax, and an additional penalty of up to one-half
11 of one percent of the amount of the unpaid tax for each month or
12 fraction thereof during which the tax remains unpaid, [shall]
13 may be added and collected, provided that no such interest or
14 penalty shall be enforced against any person unless the
15 political subdivision has provided written notice to that person
16 advising that a tax is owed and that such interest or penalty
17 will be enforced if such tax is not paid within 60 days. When
18 suit is brought for the recovery of any such tax, the person
19 liable therefor shall, in addition, be liable for the costs of
20 collection and the interest and penalties herein imposed.
21 No political subdivision shall levy, assess, prescribe or
22 enforce any interest, penalty or other fee upon or against any
23 person who paid a tax when it was due. No political subdivision
24 which questions if a tax has been paid shall levy, assess,
25 prescribe or enforce any interest, penalty or other fee upon or
26 against any person for the cost to the political subdivision of
27 determining that such tax was paid prior to the time at which
28 payment was questioned by the political subdivision.
29 Section 2. This act shall be retroactive to January 1, 1984.
30 Section 3. This act shall take effect immediately.
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