PRINTER'S NO. 1210
No. 1062 Session of 1989
INTRODUCED BY CHADWICK, MORRIS, BRANDT, HAYES, BIRMELIN,
HALUSKA, LEH, CARLSON, JADLOWIEC, MERRY, MOEHLMANN, HERSHEY,
ROBBINS, NOYE, GEIST, HECKLER, SCHEETZ, MARSICO, SCHULER,
FOX, B. SMITH, JACKSON, TRELLO, D. W. SNYDER, ARGALL,
STABACK, HASAY, COLAIZZO, DEMPSEY, BARLEY, HERMAN, MILLER,
HESS, SEMMEL, G. SNYDER, PHILLIPS, E. Z. TAYLOR, MELIO, BUSH,
RUDY, WASS, BILLOW, MAINE, BURD, PETRARCA, ALLEN, LASHINGER,
FAIRCHILD, LEE, ADOLPH, DORR, BELARDI AND VEON,
APRIL 10, 1989
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
APRIL 10, 1989
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 providing that farmers shall not be required to make
23 quarterly payments of tax on earned income under certain
24 conditions.
25 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. Subdivision B of Division III of section 13 of
3 the act of December 31, 1965 (P.L.1257, No.511), known as The
4 Local Tax Enabling Act, is amended to read:
5 Section 13. Earned Income Taxes.--On and after the effective
6 date of this act the remaining provisions of this section shall
7 be included in or construed to be a part of each tax levied and
8 assessed upon earned income by any political subdivision levying
9 and assessing such tax pursuant to this act. The definitions
10 contained in this section shall be exclusive for any tax upon
11 earned income and net profits levied and assessed pursuant to
12 this act, and shall not be altered or changed by any political
13 subdivision levying and assessing such tax.
14 * * *
15 III. Declaration and Payment of Tax
16 * * *
17 B. Earned Income.
18 Annual Earned Income Tax Return.
19 At the election of the governing body every taxpayer shall,
20 on or before April 15, of the succeeding year, make and file
21 with the officer on a form prescribed or approved by the officer
22 a final return showing the amount of earned income received
23 during the period beginning January 1, of the current year, and
24 ending December 31, of the current year, the total amount of tax
25 due thereon, the amount of tax paid thereon, the amount of tax
26 thereon that has been withheld pursuant to the provisions
27 relating to the collection at source and the balance of tax due.
28 At the time of filing the final return, the taxpayer shall pay
29 the balance of the tax due or shall make demand for refund or
30 credit in the case of overpayment.
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1 Earned Income Not Subject to Withholding.
2 Every taxpayer who is employed for a salary, wage,
3 commission, or other compensation and who received any earned
4 income not subject to the provisions relating to collection at
5 source, shall as the governing body elects:
6 (1) Make and file with the officer on a form prescribed or
7 approved by the officer, an annual return setting forth the
8 aggregate amount of earned income not subject to withholding
9 from him during the period beginning January 1, and ending
10 December 31, of the current year, and such other information as
11 the officer may require, and pay to the officer the amount of
12 tax shown as due thereon on or before April 15, of the
13 succeeding year, or
14 (2) Make and file with the officer on a form prescribed or
15 approved by the officer, a quarterly return on or before April
16 30, of the current year, July 31, of the current year, October
17 31, of the current year, and January 31, of the succeeding year,
18 setting forth the aggregate amount of earned income not subject
19 to withholding by him during the three-month periods ending
20 March 31, of the current year, June 30, of the current year,
21 September 30, of the current year, and December 31, of the
22 current year, respectively, and subject to the tax, together
23 with such other information as the officer may require. Every
24 taxpayer making such return shall, at the time of filing
25 thereof, pay to the officer the amount of tax shown as due
26 thereon. Notwithstanding the foregoing, a taxpayer having earned
27 income from farming for the taxable year which is at least two-
28 thirds of his total earned income for the taxable year shall not
29 be required to make quarterly returns and payments of tax if the
30 farmer files a final return and pays the entire amount of tax on
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1 or before March 1 of the succeeding year.
2 * * *
3 Section 2. This act shall be retroactive to January 1, 1989.
4 Section 3. This act shall take effect immediately.
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