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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 226, 4780                PRINTER'S NO. 4802

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 197 Session of 2003


        INTRODUCED BY DeLUCA, WHEATLEY, FRANKEL, PISTELLA, COSTA,
           GERGELY AND KOTIK, FEBRUARY 11, 2003

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 20, 2004

                                     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 providing for DELEGATION OF TAXING POWERS AND          <--
    23     RESTRICTIONS THEREON; PROVIDING FOR NONRESIDENT SPORTS         <--
    24     FACILITY USAGE FEE, FOR PARKING TAX RATES AND FOR PAYROLL
    25     TAXES; FURTHER PROVIDING FOR LIMITATIONS ON RATES OF SPECIFIC
    26     TAXES AND FOR the appointment of a single collector of taxes;
    27     FURTHER PROVIDING FOR THE APPLICABILITY OF PETITIONS UNDER     <--
    28     THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE
    29     MUNICIPALITIES FINANCIAL RECOVERY ACT; and making a repeal.

    30     The General Assembly of the Commonwealth of Pennsylvania
    31  hereby enacts as follows:

     1     Section 1.  Section 10 of the act of December 31, 1965         <--
     2  (P.L.1257, No.511), known as The Local Tax Enabling Act, is
     3  amended to read:
     4     SECTION 1.  SECTION 2 OF THE ACT OF DECEMBER 31, 1965          <--
     5  (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AMENDED
     6  DECEMBER 9, 2002 (P.L.1364, NO.166), IS AMENDED TO READ:
     7     SECTION 2.  DELEGATION OF TAXING POWERS AND RESTRICTIONS
     8  THEREON.--THE DULY CONSTITUTED AUTHORITIES OF THE FOLLOWING
     9  POLITICAL SUBDIVISIONS, CITIES OF THE SECOND CLASS, CITIES OF
    10  THE SECOND CLASS A, CITIES OF THE THIRD CLASS, BOROUGHS, TOWNS,
    11  TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS,
    12  SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE
    13  THIRD CLASS, AND SCHOOL DISTRICTS OF THE FOURTH CLASS, IN ALL
    14  CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS, MAY, IN THEIR
    15  DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL REVENUE
    16  PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
    17  ASSESSMENT AND COLLECTION OF SUCH TAXES AS THEY SHALL DETERMINE
    18  ON PERSONS, TRANSACTIONS, OCCUPATIONS, PRIVILEGES, SUBJECTS AND
    19  PERSONAL PROPERTY WITHIN THE LIMITS OF SUCH POLITICAL
    20  SUBDIVISIONS, AND UPON THE TRANSFER OF REAL PROPERTY, OR OF ANY
    21  INTEREST IN REAL PROPERTY, SITUATE WITHIN THE POLITICAL
    22  SUBDIVISION LEVYING AND ASSESSING THE TAX, REGARDLESS OF WHERE
    23  THE INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR
    24  DELIVERED OR WHERE THE ACTUAL SETTLEMENTS ON SUCH TRANSFER TAKE
    25  PLACE. THE TAXING AUTHORITY MAY PROVIDE THAT THE TRANSFEREE
    26  SHALL REMAIN LIABLE FOR ANY UNPAID REALTY TRANSFER TAXES IMPOSED
    27  BY VIRTUE OF THIS ACT. EACH LOCAL TAXING AUTHORITY MAY, BY
    28  ORDINANCE OR RESOLUTION, EXEMPT ANY PERSON WHOSE TOTAL INCOME
    29  FROM ALL SOURCES IS LESS THAN [TEN THOUSAND DOLLARS ($10,000)]
    30  TWELVE THOUSAND DOLLARS ($12,000) PER ANNUM FROM THE PER CAPITA
    20030H0197B4802                  - 2 -     

     1  OR SIMILAR HEAD TAX, OCCUPATION TAX AND [OCCUPATIONAL PRIVILEGE
     2  TAX] EMERGENCY AND MUNICIPAL SERVICES TAX, OR EARNED INCOME TAX,
     3  OR ANY PORTION THEREOF, AND MAY ADOPT REGULATIONS FOR THE
     4  PROCESSING OF CLAIMS FOR EXEMPTIONS. SUCH LOCAL AUTHORITIES
     5  SHALL NOT HAVE AUTHORITY BY VIRTUE OF THIS ACT:
     6     (1)  TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
     7  ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF REAL
     8  PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE
     9  INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE
    10  OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER
    11  OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED
    12  RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART
    13  OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY
    14  UNOCCUPIED SINGLE FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER
    15  BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE
    16  HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS
    17  THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL
    18  DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM
    19  THEM, OR ON TRANSFER TO OR FROM NONPROFIT INDUSTRIAL DEVELOPMENT
    20  AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A
    21  TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE
    22  BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE
    23  WITHIN THREE MONTHS OF THE DATE OF THE GRANTING OF THE FINAL
    24  DECREE IN DIVORCE, OR THE DECREE OF EQUITABLE DISTRIBUTION OF
    25  MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR
    26  INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE
    27  HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF
    28  THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND
    29  CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND
    30  TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD,
    20030H0197B4802                  - 3 -     

     1  OR ON A TRANSFER BETWEEN A GRANDPARENT AND GRANDCHILD OR THE
     2  SPOUSE OF SUCH GRANDCHILD, OR ON A TRANSFER BETWEEN BROTHER AND
     3  SISTER OR BROTHER AND BROTHER OR SISTER AND SISTER OR THE SPOUSE
     4  OF SUCH BROTHER OR SISTER, OR ON A TRANSFER TO A CONSERVANCY
     5  WHICH POSSESSES A TAX-EXEMPT STATUS PURSUANT TO SECTION
     6  501(C)(3) OF THE INTERNAL REVENUE CODE, AND WHICH HAS AS ITS
     7  PRIMARY PURPOSE THE PRESERVATION OF LAND FOR HISTORIC,
     8  RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN SPACE OPPORTUNITIES,
     9  BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF
    10  PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A
    11  CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE
    12  UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF
    13  THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY
    14  GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION, OR DEED OF
    15  CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS, OR
    16  RECONVEYANCE BY THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO
    17  THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH
    18  RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID
    19  RECONVEYANCE IS MADE WITHIN ONE YEAR FROM THE DATE OF
    20  CONDEMNATION, LEASES, OR ON A CONVEYANCE TO A TRUSTEE UNDER A
    21  RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING
    22  TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF
    23  THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND
    24  REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR-
    25  BORROWER UPON THE REPAYMENT OF THE DEBT, OR A TRANSFER WITHIN A
    26  FAMILY FROM A SOLE PROPRIETOR FAMILY MEMBER TO A FAMILY FARM
    27  CORPORATION, OR IN ANY SHERIFF SALE INSTITUTED BY A MORTGAGEE IN
    28  WHICH THE PURCHASER OF SAID SHERIFF SALE IS THE MORTGAGEE WHO
    29  INSTITUTED SAID SALE, OR ON A PRIVILEGE, TRANSACTION, SUBJECT,
    30  OCCUPATION OR PERSONAL PROPERTY WHICH IS NOW OR DOES HEREAFTER
    20030H0197B4802                  - 4 -     

     1  BECOME SUBJECT TO A STATE TAX OR LICENSE FEE;
     2     (2)  TO LEVY, ASSESS OR COLLECT A TAX ON THE GROSS RECEIPTS
     3  FROM UTILITY SERVICE OF ANY PERSON OR COMPANY WHOSE RATES AND
     4  SERVICES ARE FIXED AND REGULATED BY THE PENNSYLVANIA PUBLIC
     5  UTILITY COMMISSION OR ON ANY PUBLIC UTILITY SERVICES RENDERED BY
     6  ANY SUCH PERSON OR COMPANY OR ON ANY PRIVILEGE OR TRANSACTION
     7  INVOLVING THE RENDERING OF ANY SUCH PUBLIC UTILITY SERVICE;
     8     (3)  EXCEPT ON SALES OF ADMISSION TO PLACES OF AMUSEMENT OR
     9  ON SALES OR OTHER TRANSFERS OF TITLE OR POSSESSION OF PROPERTY,
    10  TO LEVY, ASSESS OR COLLECT A TAX ON THE PRIVILEGE OF EMPLOYING
    11  SUCH TANGIBLE PROPERTY AS IS NOW OR DOES HEREAFTER BECOME
    12  SUBJECT TO A STATE TAX; AND FOR THE PURPOSES OF THIS CLAUSE,
    13  REAL PROPERTY RENTED FOR CAMPING PURPOSES SHALL NOT BE
    14  CONSIDERED A PLACE OF AMUSEMENT.
    15     (4)  TO LEVY, ASSESS AND COLLECT A TAX ON GOODS AND ARTICLES
    16  MANUFACTURED IN SUCH POLITICAL SUBDIVISION OR ON THE BY-PRODUCTS
    17  OF MANUFACTURE, OR ON MINERALS, TIMBER, NATURAL RESOURCES AND
    18  FARM PRODUCTS PRODUCED IN SUCH POLITICAL SUBDIVISION OR ON THE
    19  PREPARATION OR PROCESSING THEREOF FOR USE OR MARKET, OR ON ANY
    20  PRIVILEGE, ACT OR TRANSACTION RELATED TO THE BUSINESS OF
    21  MANUFACTURING, THE PRODUCTION, PREPARATION OR PROCESSING OF
    22  MINERALS, TIMBER AND NATURAL RESOURCES, OR FARM PRODUCTS, BY
    23  MANUFACTURERS, BY PRODUCERS AND BY FARMERS WITH RESPECT TO THE
    24  GOODS, ARTICLES AND PRODUCTS OF THEIR OWN MANUFACTURE,
    25  PRODUCTION OR GROWTH, OR ON ANY PRIVILEGE, ACT OR TRANSACTION
    26  RELATING TO THE BUSINESS OF PROCESSING BY-PRODUCTS OF
    27  MANUFACTURE, OR ON THE TRANSPORTATION, LOADING, UNLOADING OR
    28  DUMPING OR STORAGE OF SUCH GOODS, ARTICLES, PRODUCTS OR BY-
    29  PRODUCTS; EXCEPT THAT LOCAL AUTHORITIES MAY LEVY, ASSESS AND
    30  COLLECT AN EMERGENCY AND MUNICIPAL SERVICES TAX AND TAXES ON THE  <--
    20030H0197B4802                  - 5 -     

     1  OCCUPATION, [OCCUPATIONAL PRIVILEGE,] EMERGENCY AND MUNICIPAL     <--
     2  TAX PER CAPITA AND EARNED INCOME OR NET PROFITS OF NATURAL
     3  PERSONS ENGAGED IN THE ABOVE ACTIVITIES WHETHER DOING BUSINESS
     4  AS INDIVIDUAL PROPRIETORSHIP OR AS MEMBERS OF PARTNERSHIPS OR
     5  OTHER ASSOCIATIONS;
     6     (5)  TO LEVY, ASSESS OR COLLECT A TAX ON SALARIES, WAGES,
     7  COMMISSIONS, COMPENSATION AND EARNED INCOME OF NONRESIDENTS OF
     8  THE POLITICAL SUBDIVISIONS: PROVIDED, THAT THIS LIMITATION (5)
     9  SHALL APPLY ONLY TO SCHOOL DISTRICTS OF THE SECOND, THIRD AND
    10  FOURTH CLASSES;
    11     (6)  TO LEVY, ASSESS OR COLLECT A TAX ON PERSONAL PROPERTY
    12  SUBJECT TO TAXATION BY COUNTIES OR ON PERSONAL PROPERTY OWNED BY
    13  PERSONS, ASSOCIATIONS AND CORPORATIONS SPECIFICALLY EXEMPTED BY
    14  LAW FROM TAXATION UNDER THE COUNTY PERSONAL PROPERTY TAX LAW:
    15  PROVIDED, THAT THIS LIMITATION (6) SHALL NOT APPLY TO CITIES OF
    16  THE SECOND CLASS;
    17     (7)  TO LEVY, ASSESS OR COLLECT A TAX ON MEMBERSHIP IN OR
    18  MEMBERSHIP DUES, FEES OR ASSESSMENT OF CHARITABLE, RELIGIOUS,
    19  BENEFICIAL OR NONPROFIT ORGANIZATIONS INCLUDING BUT NOT LIMITED
    20  TO SPORTSMENS, RECREATIONAL, GOLF AND TENNIS CLUBS, GIRL AND BOY
    21  SCOUT TROOPS AND COUNCILS;
    22     (8)  TO LEVY, ASSESS OR COLLECT ANY TAX ON A MOBILEHOME OR
    23  HOUSE TRAILER SUBJECT TO A REAL PROPERTY TAX UNLESS THE SAME TAX
    24  IS LEVIED, ASSESSED AND COLLECTED ON OTHER REAL PROPERTY IN THE
    25  POLITICAL SUBDIVISION.
    26     (9)  TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR
    27  THE PRIVILEGE OF ENGAGING IN AN OCCUPATION [(OCCUPATIONAL
    28  PRIVILEGE TAX)] EMERGENCY AND MUNICIPAL SERVICES TAX (EMERGENCY   <--
    29  AND MUNICIPAL SERVICES TAX) EXCEPT THAT SUCH A TAX MAY BE
    30  LEVIED, ASSESSED AND COLLECTED ONLY BY THE POLITICAL SUBDIVISION
    20030H0197B4802                  - 6 -     

     1  OF THE TAXPAYER'S PLACE OF EMPLOYMENT.
     2     PAYMENT OF ANY [OCCUPATIONAL PRIVILEGE TAX] EMERGENCY AND
     3  MUNICIPAL SERVICES TAX TO ANY POLITICAL SUBDIVISION BY ANY
     4  PERSON PURSUANT TO AN ORDINANCE OR RESOLUTION PASSED OR ADOPTED
     5  UNDER THE AUTHORITY OF THIS ACT SHALL BE [LIMITED TO TEN DOLLARS
     6  ($10)] NO LESS THAN TEN DOLLARS ($10) NOR MORE THAN FIFTY-TWO
     7  DOLLARS ($52) ON EACH PERSON FOR EACH CALENDAR YEAR.
     8     THE SITUS OF SUCH TAX SHALL BE THE PLACE OF EMPLOYMENT, BUT,
     9  IN THE EVENT A PERSON IS ENGAGED IN MORE THAN ONE OCCUPATION, OR
    10  AN OCCUPATION WHICH REQUIRES HIS WORKING IN MORE THAN ONE
    11  POLITICAL SUBDIVISION DURING THE CALENDAR YEAR, THE PRIORITY OF
    12  CLAIM TO COLLECT SUCH [OCCUPATIONAL PRIVILEGE TAX] EMERGENCY AND
    13  MUNICIPAL SERVICES TAX SHALL BE IN THE FOLLOWING ORDER: FIRST,
    14  THE POLITICAL SUBDIVISION IN WHICH A PERSON MAINTAINS HIS
    15  PRINCIPAL OFFICE OR IS PRINCIPALLY EMPLOYED; SECOND, THE
    16  POLITICAL SUBDIVISION IN WHICH THE PERSON RESIDES AND WORKS, IF
    17  SUCH A TAX IS LEVIED BY THAT POLITICAL SUBDIVISION; THIRD, THE
    18  POLITICAL SUBDIVISION IN WHICH A PERSON IS EMPLOYED AND WHICH
    19  IMPOSES THE TAX NEAREST IN MILES TO THE PERSON'S HOME. THE PLACE
    20  OF EMPLOYMENT SHALL BE DETERMINED AS OF THE DAY THE TAXPAYER
    21  FIRST BECOMES SUBJECT TO THE TAX DURING THE CALENDAR YEAR., AND   <--
    22  THE TAX SHALL BE PRORATED BASED UPON THE NUMBER OF DAYS
    23  REMAINING IN THE CALENDAR YEAR ON THAT DAY. THE TAXING AUTHORITY
    24  MAY AUTHORIZE PAYMENT OF THE TAX ON A QUARTERLY OR MORE FREQUENT
    25  BASIS.
    26     IT IS THE INTENT OF THIS PROVISION THAT NO PERSON SHALL PAY
    27  MORE THAN [TEN DOLLARS ($10)] FIFTY-TWO DOLLARS ($52) IN ANY
    28  CALENDAR YEAR AS AN [OCCUPATIONAL PRIVILEGE TAX] EMERGENCY AND
    29  MUNICIPAL SERVICES TAX IRRESPECTIVE OF THE NUMBER OF POLITICAL
    30  SUBDIVISIONS WITHIN WHICH SUCH PERSON MAY BE EMPLOYED WITHIN ANY
    20030H0197B4802                  - 7 -     

     1  GIVEN CALENDAR YEAR.
     2     IN CASE OF DISPUTE, A TAX RECEIPT OF THE TAXING AUTHORITY FOR
     3  THAT CALENDAR YEAR DECLARING THAT THE TAXPAYER HAS MADE PRIOR
     4  PAYMENT WHICH CONSTITUTES PRIMA FACIE CERTIFICATION OF PAYMENT
     5  TO ALL OTHER POLITICAL SUBDIVISIONS.
     6     (10)  TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO
     7  MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10)
     8  SHALL NOT APPLY TO CITIES OF THE SECOND CLASS.
     9     (11)  TO LEVY, ASSESS OR COLLECT A TAX ON THE CONSTRUCTION OF
    10  OR IMPROVEMENT TO RESIDENTIAL DWELLINGS OR UPON THE APPLICATION
    11  FOR OR ISSUANCE OF PERMITS FOR THE CONSTRUCTION OF OR
    12  IMPROVEMENTS TO RESIDENTIAL DWELLINGS.
    13     (12)  TO LEVY, ASSESS AND COLLECT A MERCANTILE OR BUSINESS
    14  PRIVILEGE TAX ON GROSS RECEIPTS OR PART THEREOF WHICH ARE: (I)
    15  DISCOUNTS ALLOWED TO PURCHASERS AS CASH DISCOUNTS FOR PROMPT
    16  PAYMENT OF THEIR BILLS; (II) CHARGES ADVANCED BY A SELLER FOR
    17  FREIGHT, DELIVERY OR OTHER TRANSPORTATION FOR THE PURCHASER IN
    18  ACCORDANCE WITH THE TERMS OF A CONTRACT OF SALE; (III) RECEIVED
    19  UPON THE SALE OF AN ARTICLE OF PERSONAL PROPERTY WHICH WAS
    20  ACQUIRED BY THE SELLER AS A TRADE-IN TO THE EXTENT THAT THE
    21  GROSS RECEIPTS IN THE SALE OF THE ARTICLE TAKEN IN TRADE DOES
    22  NOT EXCEED THE AMOUNT OF TRADE-IN ALLOWANCE MADE IN ACQUIRING
    23  SUCH ARTICLE; (IV) REFUNDS, CREDITS OR ALLOWANCES GIVEN TO A
    24  PURCHASER ON ACCOUNT OF DEFECTS IN GOODS SOLD OR MERCHANDISE
    25  RETURNED; (V) PENNSYLVANIA SALES TAX; (VI) BASED ON THE VALUE OF
    26  EXCHANGES OR TRANSFERS BETWEEN ONE SELLER AND ANOTHER SELLER WHO
    27  TRANSFERS PROPERTY WITH THE UNDERSTANDING THAT PROPERTY OF AN
    28  IDENTICAL DESCRIPTION WILL BE RETURNED AT A SUBSEQUENT DATE;
    29  HOWEVER, WHEN SELLERS ENGAGED IN SIMILAR LINES OF BUSINESS
    30  EXCHANGE PROPERTY AND ONE OF THEM MAKES PAYMENT TO THE OTHER IN
    20030H0197B4802                  - 8 -     

     1  ADDITION TO THE PROPERTY EXCHANGED, THE ADDITIONAL PAYMENT
     2  RECEIVED MAY BE INCLUDED IN THE GROSS RECEIPTS OF THE SELLER
     3  RECEIVING SUCH ADDITIONAL CASH PAYMENTS; (VII) OF SELLERS FROM
     4  SALES TO OTHER SELLERS IN THE SAME LINE WHERE THE SELLER
     5  TRANSFERS THE TITLE OR POSSESSION AT THE SAME PRICE FOR WHICH
     6  THE SELLER ACQUIRED THE MERCHANDISE; OR (VIII) TRANSFERS BETWEEN
     7  ONE DEPARTMENT, BRANCH OR DIVISION OF A CORPORATION OR OTHER
     8  BUSINESS ENTITY OF GOODS, WARES AND MERCHANDISE TO ANOTHER
     9  DEPARTMENT, BRANCH OR DIVISION OF THE SAME CORPORATION OR
    10  BUSINESS ENTITY AND WHICH ARE RECORDED ON THE BOOKS TO REFLECT
    11  SUCH INTERDEPARTMENTAL TRANSACTIONS.
    12     (13)  TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
    13  TAX ON MEMBERSHIP, MEMBERSHIP DUES, FEES OR ASSESSMENTS,
    14  DONATIONS, CONTRIBUTIONS OR MONETARY CHARGES OF ANY CHARACTER
    15  WHATSOEVER PAID BY THE GENERAL PUBLIC, OR A LIMITED OR SELECTED
    16  NUMBER THEREOF, FOR SUCH PERSONS TO ENTER INTO ANY PLACE,
    17  INDOORS OR OUTDOORS, TO ENGAGE IN ANY ACTIVITIES, THE
    18  PREDOMINANT PURPOSE OR NATURE OF WHICH IS EXERCISE, FITNESS,
    19  HEALTH MAINTENANCE, IMPROVEMENT OR REHABILITATION, HEALTH OR
    20  NUTRITION EDUCATION, OR WEIGHT CONTROL.
    21     (14)  EXCEPT BY CITIES OF THE SECOND CLASS, TO LEVY, ASSESS    <--
    22  OR COLLECT A TAX ON PAYROLL AMOUNTS GENERATED AS A RESULT OF
    23  BUSINESS ACTIVITY.
    24     (15)  EXCEPT BY CITIES OF THE SECOND CLASS IN WHICH A SPORTS
    25  STADIUM OR ARENA THAT HAS RECEIVED PUBLIC FUNDS IN CONNECTION
    26  WITH ITS CONSTRUCTION OR MAINTENANCE IS LOCATED, TO LEVY, ASSESS
    27  AND COLLECT A PUBLICLY FUNDED FACILITY USAGE FEE UPON THOSE
    28  NONRESIDENT INDIVIDUALS WHO USE SUCH FACILITY TO ENGAGE IN AN
    29  ATHLETIC EVENT OR OTHERWISE RENDER A PERFORMANCE FOR WHICH THEY
    30  RECEIVE REMUNERATION.
    20030H0197B4802                  - 9 -     

     1     (16)  TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
     2  TAX ON THE CHARGE IMPOSED UPON A PATRON FOR THE SALE OF
     3  ADMISSION TO OR FOR THE PRIVILEGE OF ADMISSION TO A BOWLING
     4  ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF BOWLING.
     5     SECTION 2.  SECTION 8 OF THE ACT, AMENDED OR ADDED OCTOBER     <--
     6  11, 1984 (P.L.885, NO.172 AND JULY 9, 1987 (P.L.203, NO.30), IS
     7  AMENDED TO READ:
     8     SECTION 2.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:     <--
     9     SECTION 2.2.  PAYROLL TAX.--(A)  A CITY OF THE SECOND CLASS
    10  MAY LEVY, ASSESS OR COLLECT A TAX THAT DOES NOT EXCEED FIFTY-
    11  FIVE HUNDREDTHS PERCENT ON PAYROLL AMOUNTS GENERATED AS A RESULT
    12  OF AN EMPLOYER CONDUCTING BUSINESS ACTIVITY WITHIN A CITY OF THE
    13  SECOND CLASS. FOR PURPOSES OF A PAYROLL TAX LEVIED, ASSESSED OR
    14  COLLECTED BY A CITY OF THE SECOND CLASS, THE BUSINESS ACTIVITY
    15  SHALL BE DIRECTLY ATTRIBUTABLE TO ACTIVITY WITHIN A CITY OF THE
    16  SECOND CLASS. FOR PURPOSES OF COMPUTATION OF THE PAYROLL TAX
    17  IMPOSED PURSUANT TO THIS SECTION, THE PAYROLL AMOUNT
    18  ATTRIBUTABLE TO THE CITY SHALL BE DETERMINED BY APPLYING AN
    19  APPORTIONMENT FACTOR TO TOTAL PAYROLL EXPENSE BASED ON THAT
    20  PORTION OF PAYROLL EXPENSE WHICH THE TOTAL NUMBER OF DAYS AN
    21  EMPLOYE, PARTNER, MEMBER, SHAREHOLDER OR OTHER INDIVIDUAL WORKS
    22  WITHIN THE CITY BEARS TO THE TOTAL NUMBER OF DAYS SUCH EMPLOYE
    23  OR PERSON WORKS WITHIN AND OUTSIDE OF THE CITY.
    24     (A.1)  A CHARITABLE ORGANIZATION THAT QUALIFIES FOR TAX
    25  EXEMPTION PURSUANT TO THE ACT OF NOVEMBER 26, 1997 (P.L.508,
    26  NO.55), KNOWN AS THE "INSTITUTIONS OF PURELY PUBLIC CHARITY
    27  ACT," SHALL CALCULATE THE TAX THAT WOULD OTHERWISE BE
    28  ATTRIBUTABLE TO THE CITY, BUT SHALL ONLY PAY THE TAX ON THAT
    29  PORTION OF ITS PAYROLL EXPENSE ATTRIBUTABLE TO BUSINESS ACTIVITY
    30  FOR WHICH A TAX MAY BE IMPOSED PURSUANT TO SECTION 511 OF THE
    20030H0197B4802                 - 10 -     

     1  INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 95-223, 26 U.S.C. § 1
     2  ET SEQ.). IF THE CHARITY HAS PURCHASED OR IS OPERATING BRANCHES,
     3  AFFILIATES, SUBSIDIARIES OR OTHER BUSINESS ENTITIES THAT DO NOT
     4  INDEPENDENTLY MEET THE STANDARDS OF THE "INSTITUTIONS OF PURELY
     5  PUBLIC CHARITY ACT," THE TAX SHALL BE PAID ON THE PAYROLL
     6  ATTRIBUTABLE TO SUCH FOR-PROFIT BRANCHES, AFFILIATES OR
     7  SUBSIDIARIES, WHETHER OR NOT THE EMPLOYES ARE LEASED OR PLACED
     8  UNDER THE AUSPICES OF THE CHARITY'S UMBRELLA OR PARENT
     9  ORGANIZATION. NOTHING IN THIS PARAGRAPH SHALL RESTRICT THE
    10  ABILITY OF A CHARITABLE ORGANIZATION TO CONTRACT WITH THE CITY
    11  TO PROVIDE SERVICES TO THE CITY IN LIEU OF SOME OR ALL TAXES DUE
    12  UNDER THIS SECTION.
    13     (B)  FOR PURPOSES OF THE PAYROLL TAX ASSESSED PURSUANT TO
    14  THIS SECTION, AN EMPLOYER IS CONDUCTING BUSINESS WITHIN A CITY
    15  OF THE SECOND CLASS IF THE EMPLOYER ENGAGES, HIRES, EMPLOYS OR
    16  CONTRACTS WITH ONE OR MORE INDIVIDUALS AS EMPLOYES, AND IN
    17  ADDITION, THE EMPLOYER DOES AT LEAST ONE OF THE FOLLOWING:
    18     (1)  MAINTAINS A FIXED PLACE OF BUSINESS WITHIN THE CITY;
    19     (2)  OWNS OR LEASES REAL PROPERTY WITHIN THE CITY FOR
    20  PURPOSES OF SUCH BUSINESS;
    21     (3)  MAINTAINS A STOCK OF TANGIBLE PERSONAL PROPERTY IN THE
    22  CITY FOR SALE IN THE ORDINARY COURSE OF SUCH BUSINESS;
    23     (4)  CONDUCTS CONTINUOUS SOLICITATION WITHIN THE CITY RELATED
    24  TO SUCH BUSINESS; OR
    25     (5)  UTILIZES THE STREETS OF THE CITY IN CONNECTION WITH THE
    26  OPERATION OF SUCH BUSINESS OTHER THAN TRANSPORTATION THROUGH THE
    27  CITY.
    28     (C)  ALL EMPLOYERS IN A CITY OF THE SECOND CLASS SHALL FILE
    29  QUARTERLY RETURNS AND MAKE QUARTERLY PAYMENTS AS PROVIDED FOR BY
    30  ORDINANCE ENACTED BY A CITY OF THE SECOND CLASS. EVERY EMPLOYER
    20030H0197B4802                 - 11 -     

     1  MAKING A RETURN SHALL CERTIFY THE CORRECTNESS THEREOF. A CITY OF
     2  THE SECOND CLASS MAY AUDIT, EXAMINE OR INSPECT THE BOOKS,
     3  RECORDS OR ACCOUNTS OF ALL EMPLOYERS SUBJECT TO THE TAX IMPOSED
     4  PURSUANT TO THIS SECTION.
     5     (D)  A CITY OF THE SECOND CLASS MAY ENACT ORDINANCES AND
     6  REGULATIONS NECESSARY TO IMPLEMENT THIS SECTION. THE ORDINANCE
     7  LEVYING THE TAX AUTHORIZED BY THIS SECTION SHALL PERMANENTLY
     8  REPLACE THE CITY'S EXISTING MERCANTILE TAX AND SHALL REDUCE THE
     9  BUSINESS PRIVILEGE TAX RATE AS FOLLOWS:
    10     (1)  IN TAX YEARS 2005 AND 2006 THE BUSINESS PRIVILEGE TAX
    11  SHALL BE TWO MILLS.
    12     (2)  IN TAX YEARS 2007, 2008 AND 2009 THE BUSINESS PRIVILEGE
    13  TAX SHALL BE ONE MILL UNLESS THE REVENUES COLLECTED FROM THE
    14  PAYROLL EXPENSE TAX EXCEED FIFTY MILLION FIVE HUNDRED THOUSAND
    15  DOLLARS ($50,500,000) IN ANY FISCAL YEAR, AT WHICH TIME THE
    16  BUSINESS PRIVILEGE TAX SHALL BE REPLACED FOR THE SUBSEQUENT
    17  FISCAL YEAR. AFTER THE PHASE OUT OF THE BUSINESS PRIVILEGE TAX,
    18  ALL AMOUNTS OF MONEYS IN EXCESS OF FIFTY MILLION FIVE HUNDRED
    19  THOUSAND DOLLARS ($50,500,000) SHALL BE USED BY THE CITY OF THE
    20  SECOND CLASS TO FURTHER ACCELERATE THE REDUCTION OF THE TAX
    21  IMPOSED BY THE CITY OF THE SECOND CLASS ON PARKING AS PROVIDED
    22  IN SECTION 5.1.
    23     (3)  IN TAX YEAR 2010 AND THEREAFTER, THE BUSINESS PRIVILEGE
    24  TAX MAY NOT BE IMPOSED.
    25     (E)  ALL TAXES, ADDITIONS AND PENALTIES COLLECTED PURSUANT TO
    26  THIS SECTION SHALL BE USED BY A CITY OF THE SECOND CLASS
    27  EXCLUSIVELY FOR THE GENERAL REVENUE PURPOSES OF THE CITY.
    28     (F)  AN EMPLOYER SHALL NOT OFFSET THE AMOUNT OF TAX PAID
    29  PURSUANT TO THIS SECTION BY REDUCING COMPENSATION OR BENEFITS
    30  PAID TO EMPLOYES.
    20030H0197B4802                 - 12 -     

     1     (G)  A CITY OF THE SECOND CLASS MAY BRING SUIT FOR THE
     2  RECOVERY OF TAXES DUE AND UNPAID UNDER THIS SECTION. ANY SUIT
     3  BROUGHT TO RECOVER THE TAX IMPOSED BY THIS SECTION SHALL BE
     4  COMMENCED WITHIN THREE YEARS AFTER SUCH TAX IS DUE, OR WITHIN
     5  THREE YEARS AFTER THE DECLARATION OR RETURN HAS BEEN FILED,
     6  WHICHEVER IS LATER: PROVIDED, HOWEVER, THAT THIS LIMITATION
     7  SHALL NOT PREVENT THE INSTITUTION OF A SUIT FOR THE COLLECTION
     8  OF ANY TAX DUE OR DETERMINED TO BE DUE IN THE FOLLOWING CASES:
     9     (1)  WHERE NO DECLARATION OR RETURN WAS FILED BY ANY PERSON
    10  ALTHOUGH A DECLARATION OR RETURN WAS REQUIRED TO BE FILED BY HIM
    11  UNDER PROVISIONS OF THIS SECTION, THERE SHALL BE NO LIMITATION.
    12     (2)  WHERE AN EXAMINATION OF THE DECLARATION OR RETURN FILED
    13  BY ANY PERSON, OR OF OTHER EVIDENCE RELATING TO SUCH DECLARATION
    14  OR RETURN IN THE POSSESSION OF THE CITY OF THE SECOND CLASS,
    15  REVEALS A FRAUDULENT EVASION OF TAXES, THERE SHALL BE NO
    16  LIMITATION.
    17     (3)  IN THE CASE OF SUBSTANTIAL UNDERSTATEMENT OF TAX
    18  LIABILITY OF TWENTY-FIVE PERCENT OR MORE AND NO FRAUD, SUIT
    19  SHALL BE BEGUN WITHIN SIX YEARS.
    20     (4)  THIS SECTION SHALL NOT BE CONSTRUED TO LIMIT THE
    21  GOVERNING BODY FROM RECOVERING DELINQUENT TAXES BY ANY OTHER
    22  MEANS PROVIDED BY LAW.
    23     (H)  IF FOR ANY REASON THE PAYROLL TAX IS NOT PAID WHEN DUE,
    24  INTEREST AT THE RATE OF SIX PERCENT PER ANNUM ON THE AMOUNT OF
    25  SAID TAX, AND AN ADDITIONAL PENALTY OF ONE PERCENT OF THE AMOUNT
    26  OF THE UNPAID TAX FOR EACH MONTH OR FRACTION THEREOF DURING
    27  WHICH THE TAX REMAINS UNPAID SHALL BE ADDED AND COLLECTED. WHERE
    28  SUIT IS BROUGHT FOR THE RECOVERY OF ANY SUCH TAX, THE EMPLOYER
    29  SHALL, IN ADDITION, BE LIABLE FOR THE COSTS OF COLLECTION AND
    30  THE INTEREST AND PENALTIES HEREIN IMPOSED. A CITY OF THE SECOND
    20030H0197B4802                 - 13 -     

     1  CLASS MAY, BY ORDINANCE OR RESOLUTION, ESTABLISH A ONE-TIME
     2  PERIOD DURING WHICH INTEREST OR INTEREST AND PENALTIES THAT
     3  WOULD OTHERWISE BE IMPOSED FOR THE NONREPORTING OR
     4  UNDERREPORTING OF PAYROLL TAX LIABILITIES OR FOR THE NONPAYMENT
     5  OF PAYROLL TAXES PREVIOUSLY IMPOSED AND DUE SHALL BE WAIVED IN
     6  TOTAL OR IN PART IF THE TAXPAYER VOLUNTARILY FILES DELINQUENT
     7  RETURNS AND PAYS THE TAXES IN FULL DURING THE PERIOD SO
     8  ESTABLISHED.
     9     (I)  IN ADDITION TO ANY OTHER ADDITIONS, PENALTIES OR
    10  ENFORCEMENT PROCEEDINGS PROVIDED FOR BY ORDINANCE OF A CITY OF
    11  THE SECOND CLASS OR A LAW OF THIS COMMONWEALTH FOR THE
    12  COLLECTION AND ENFORCEMENT OF TAXES OR THE SUBMISSION OF
    13  INFORMATION TO A GOVERNMENT ENTITY:
    14     (1)  ANY EMPLOYER WHO WILFULLY MAKES ANY FALSE OR UNTRUE
    15  STATEMENT ON THE EMPLOYER'S RETURN COMMITS A MISDEMEANOR OF THE
    16  SECOND DEGREE AND SHALL, UPON CONVICTION, BE SENTENCED TO PAY A
    17  FINE OF NOT MORE THAN TWO THOUSAND DOLLARS ($2,000) OR TO
    18  IMPRISONMENT FOR NOT MORE THAN TWO YEARS, OR BOTH.
    19     (2)  ANY EMPLOYER WHO WILFULLY FAILS OR REFUSES TO FILE A
    20  RETURN REQUIRED BY THIS SECTION COMMITS A MISDEMEANOR OF THE
    21  THIRD DEGREE AND SHALL, UPON CONVICTION, BE SENTENCED TO PAY A
    22  FINE OF NOT MORE THAN ONE THOUSAND DOLLARS ($1,000) OR TO
    23  IMPRISONMENT FOR NOT MORE THAN ONE YEAR, OR BOTH.
    24     (3)  ANY PERSON WHO WILFULLY FAILS OR REFUSES TO APPEAR
    25  BEFORE THE COLLECTOR IN PERSON WITH THE EMPLOYER'S BOOKS,
    26  RECORDS OR ACCOUNTS FOR EXAMINATION WHEN REQUIRED UNDER THE
    27  PROVISIONS OF THIS SECTION OR OF AN ORDINANCE TO DO SO, OR WHO
    28  WILFULLY REFUSES TO PERMIT INSPECTION OF THE BOOKS, RECORDS OR
    29  ACCOUNTS OF ANY EMPLOYER IN THE PERSON'S CUSTODY OR CONTROL WHEN
    30  THE RIGHT TO MAKE SUCH INSPECTION BY THE COLLECTOR IS REQUESTED,
    20030H0197B4802                 - 14 -     

     1  COMMITS A MISDEMEANOR AND SHALL, UPON CONVICTION, BE SENTENCED
     2  TO PAY A FINE OF NOT MORE THAN FIVE HUNDRED DOLLARS ($500) OR TO
     3  IMPRISONMENT FOR NOT MORE THAN SIX MONTHS, OR BOTH.
     4     (J)  AS USED IN THIS SECTION:
     5     "EMPLOYER" MEANS ALL PERSONS CONDUCTING BUSINESS ACTIVITY
     6  WITHIN A CITY OF THE SECOND CLASS, EXCEPT FOR A GOVERNMENTAL
     7  ENTITY.
     8     "PAYROLL AMOUNTS" MEANS ALL AMOUNTS PAID BY AN EMPLOYER AS
     9  SALARIES, WAGES, COMMISSIONS, BONUSES, NET EARNINGS AND
    10  INCENTIVE PAYMENTS, WHETHER BASED ON PROFITS OR OTHERWISE, FEES
    11  AND SIMILAR REMUNERATION FOR SERVICES RENDERED, WHETHER DIRECTLY
    12  OR THROUGH AN AGENT AND WHETHER IN CASH, IN PROPERTY OR THE
    13  RIGHT TO RECEIVE PROPERTY.
    14     SECTION 2.3.  NONRESIDENT SPORTS FACILITY USAGE FEE.--A CITY
    15  OF THE SECOND CLASS, IN WHICH IS LOCATED A SPORTS STADIUM OR
    16  ARENA THAT HAS RECEIVED PUBLIC FUNDS IN CONNECTION WITH ITS
    17  CONSTRUCTION OR MAINTENANCE, MAY ENACT A PUBLICLY FUNDED
    18  FACILITY USAGE FEE UPON THOSE NONRESIDENT INDIVIDUALS WHO USE
    19  SUCH FACILITY TO ENGAGE IN AN ATHLETIC EVENT OR OTHERWISE RENDER
    20  A PERFORMANCE FOR WHICH THEY RECEIVE REMUNERATION. THE FEE MAY
    21  BE A FLAT DOLLAR AMOUNT OR A PERCENTAGE OF THE INDIVIDUAL'S
    22  INCOME ATTRIBUTABLE TO SUCH INDIVIDUAL'S USAGE OF THE FACILITY.
    23  IF THE FEE IS A PERCENTAGE, IT MAY NOT EXCEED THREE PERCENT OF
    24  THE EARNED INCOME OF THE INDIVIDUAL ATTRIBUTABLE TO THE USAGE OF
    25  THE FACILITY. IF ANY FEE IS IMPOSED, THOSE INDIVIDUALS LIABLE
    26  FOR THE FEE SHALL BE EXEMPT FROM ANY EARNED INCOME TAX IMPOSED
    27  BY THE CITY OF THE SECOND CLASS PURSUANT TO THIS ACT AND ANY
    28  SUCH TAX IMPOSED UNDER SECTION 652.1 OF THE ACT OF MARCH 10,
    29  1949 (P.L.30, NO.14), KNOWN AS THE "PUBLIC SCHOOL CODE OF 1949."
    30  SHOULD A COURT OF COMPETENT JURISDICTION DETERMINE THIS
    20030H0197B4802                 - 15 -     

     1  PROVISION TO BE INVALID FOR ANY REASON, PERSONS SUBJECT TO THE
     2  PUBLICLY FUNDED FACILITY USAGE FEE SHALL NOT BE EXEMPT FROM ANY
     3  PREVIOUSLY APPLICABLE EARNED INCOME TAX.
     4     SECTION 5.1. SECOND CLASS CITY PARKING TAX RATES.--THE RATE
     5  OF THE TAX IMPOSED ON PARKING TRANSACTIONS SHALL NOT DIFFER FROM
     6  THE RATE CONTAINED IN CITY OF PITTSBURGH ORDINANCE NUMBER 43-
     7  2003 AS OF JANUARY 1, 2004, EXCEPT AS FOLLOWS:
     8     (1)  IN TAX YEAR 2007, THE RATE OF TAX SHALL NOT EXCEED 45%.
     9     (2)  IN TAX YEAR 2008, THE RATE OF TAX SHALL NOT EXCEED 40%.
    10     (3)  IN TAX YEAR 2009, THE RATE OF TAX SHALL NOT EXCEED
    11  37.5%.
    12     (4)  IN TAX YEAR 2010, THE RATE OF TAX SHALL NOT EXCEED 35%
    13  AS EXISTED PRIOR TO THE ADOPTION OF THE ORDINANCE.
    14     SECTION 3.  SECTION 8 OF THE ACT, AMENDED OR ADDED OCTOBER
    15  11, 1984 (P.L.885, NO.172) AND JULY 1987 (P.L.203, NO.30), IS
    16  AMENDED TO READ:
    17     SECTION 8.  LIMITATIONS ON RATES OF SPECIFIC TAXES.--NO TAXES
    18  LEVIED UNDER THE PROVISIONS OF THIS ACT SHALL BE LEVIED BY ANY
    19  POLITICAL SUBDIVISION ON THE FOLLOWING SUBJECTS EXCEEDING THE
    20  RATES SPECIFIED IN THIS SECTION:
    21     (1)  PER CAPITA, POLL OR OTHER SIMILAR HEAD TAXES, TEN
    22  DOLLARS ($10).
    23     (2)  ON EACH DOLLAR OF THE WHOLE VOLUME OF BUSINESS
    24  TRANSACTED BY WHOLESALE DEALERS IN GOODS, WARES AND MERCHANDISE,
    25  ONE MILL, BY RETAIL DEALERS IN GOODS, WARES AND MERCHANDISE AND
    26  BY PROPRIETORS OF RESTAURANTS OR OTHER PLACES WHERE FOOD, DRINK
    27  AND REFRESHMENTS ARE SERVED, ONE AND ONE-HALF MILLS; EXCEPT IN
    28  CITIES OF THE SECOND CLASS, WHERE RATES SHALL NOT EXCEED ONE
    29  MILL ON WHOLESALE DEALERS AND TWO MILLS ON RETAIL DEALERS AND
    30  PROPRIETORS. NO SUCH TAX SHALL BE LEVIED ON THE DOLLAR VOLUME OF
    20030H0197B4802                 - 16 -     

     1  BUSINESS TRANSACTED BY WHOLESALE AND RETAIL DEALERS DERIVED FROM
     2  THE RESALE OF GOODS, WARES AND MERCHANDISE, TAKEN BY ANY DEALER
     3  AS A TRADE-IN OR AS PART PAYMENT FOR OTHER GOODS, WARES AND
     4  MERCHANDISE, EXCEPT TO THE EXTENT THAT THE RESALE PRICE EXCEEDS
     5  THE TRADE-IN ALLOWANCE.
     6     (3)  ON WAGES, SALARIES, COMMISSIONS AND OTHER EARNED INCOME
     7  OF INDIVIDUALS, ONE PERCENT.
     8     (4)  ON RETAIL SALES INVOLVING THE TRANSFER OF TITLE OR
     9  POSSESSION OF TANGIBLE PERSONAL PROPERTY, TWO PERCENT.
    10     (5)  ON THE TRANSFER OF REAL PROPERTY, ONE PERCENT.
    11     (6)  ON ADMISSIONS TO PLACES OF AMUSEMENT, ATHLETIC EVENTS
    12  AND THE LIKE, AND ON MOTION PICTURE THEATRES IN CITIES OF THE
    13  SECOND CLASS, TEN PERCENT.
    14     (7)  FLAT RATE OCCUPATION TAXES NOT USING A MILLAGE OR
    15  PERCENTAGE AS A BASIS, TEN DOLLARS ($10).
    16     (8)  [OCCUPATIONAL PRIVILEGE TAXES, TEN DOLLARS ($10).]
    17  EMERGENCY AND MUNICIPAL SERVICES TAXES, FIFTY-TWO DOLLARS ($52).
    18     (9)  ON ADMISSIONS TO SKI FACILITIES, TEN PERCENT. THE TAX
    19  BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
    20  PERCENT OF THE COST OF THE LIFT TICKET. THE LIFT TICKET SHALL
    21  INCLUDE ALL COSTS OF ADMISSIONS TO THE SKI FACILITY.
    22     (10)  ON ADMISSIONS TO GOLF COURSES, TEN PERCENT. THE TAX
    23  BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
    24  PERCENT OF THE GREENS FEE. THE GREENS FEE SHALL INCLUDE ALL
    25  COSTS OF ADMISSIONS TO THE GOLF COURSE.
    26     [(11)  ON ADMISSIONS TO BOWLING ALLEYS OR BOWLING LANES, TEN   <--
    27  PERCENT. THE TAX BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL
    28  NOT EXCEED FORTY PERCENT OF THE CHARGE IMPOSED UPON A PATRON FOR
    29  THE SALE OF ADMISSION TO OR THE PRIVILEGE OF ADMISSION TO A
    30  BOWLING ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF
    20030H0197B4802                 - 17 -     

     1  BOWLING.]                                                         <--
     2     (12)  ON PAYROLLS, FIFTY-FIVE HUNDREDTHS PERCENT.              <--
     3     EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AT ANY TIME TWO
     4  POLITICAL SUBDIVISIONS SHALL IMPOSE ANY ONE OF THE ABOVE TAXES
     5  ON THE SAME PERSON, SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE,
     6  LOCATED WITHIN BOTH SUCH POLITICAL SUBDIVISIONS, DURING THE SAME
     7  YEAR OR PART OF THE SAME YEAR, UNDER THE AUTHORITY OF THIS ACT
     8  THEN THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THE
     9  AUTHORITY OF THIS ACT SHALL, DURING THE TIME SUCH DUPLICATION OF
    10  THE TAX EXISTS, EXCEPT AS HEREINAFTER OTHERWISE PROVIDED, BE
    11  ONE-HALF OF THE RATE, AS ABOVE LIMITED, AND SUCH ONE-HALF RATE
    12  SHALL BECOME EFFECTIVE BY VIRTUE OF THE REQUIREMENTS OF THIS ACT
    13  FROM THE DAY SUCH DUPLICATION BECOMES EFFECTIVE WITHOUT ANY
    14  ACTION ON THE PART OF THE POLITICAL SUBDIVISION IMPOSING THE TAX
    15  UNDER THE AUTHORITY OF THIS ACT. WHEN ANY ONE OF THE ABOVE TAXES
    16  HAS BEEN LEVIED UNDER THE PROVISIONS OF THIS ACT BY ONE
    17  POLITICAL SUBDIVISION AND A SUBSEQUENT LEVY IS MADE EITHER FOR
    18  THE FIRST TIME OR IS REVIVED AFTER A LAPSE OF TIME BY ANOTHER
    19  POLITICAL SUBDIVISION ON THE SAME PERSON, SUBJECT, BUSINESS,
    20  TRANSACTION OR PRIVILEGE AT A RATE THAT WOULD MAKE THE COMBINED
    21  LEVIES EXCEED THE LIMIT ALLOWED BY THIS SUBDIVISION, THE TAX OF
    22  THE SECOND POLITICAL SUBDIVISION SHALL NOT BECOME EFFECTIVE
    23  UNTIL THE END OF THE FISCAL YEAR FOR WHICH THE PRIOR TAX WAS
    24  LEVIED, UNLESS:
    25     (1)  NOTICE INDICATING ITS INTENTION TO MAKE SUCH LEVY IS
    26  GIVEN TO THE FIRST TAXING BODY BY THE SECOND TAXING BODY AS
    27  FOLLOWS: (I) WHEN THE NOTICE IS GIVEN TO A SCHOOL DISTRICT IT
    28  SHALL BE GIVEN AT LEAST FORTY-FIVE DAYS PRIOR TO THE LAST DAY
    29  FIXED BY LAW FOR THE LEVY OF ITS SCHOOL TAXES; (II) WHEN GIVEN
    30  TO ANY OTHER POLITICAL SUBDIVISION IT SHALL BE PRIOR TO THE
    20030H0197B4802                 - 18 -     

     1  FIRST DAY OF JANUARY IMMEDIATELY PRECEDING, OR IF A LAST DAY FOR
     2  THE ADOPTION OF THE BUDGET IS FIXED BY LAW, AT LEAST FORTY-FIVE
     3  DAYS PRIOR TO SUCH LAST DAY; OR
     4     (2)  UNLESS THE FIRST TAXING BODY SHALL INDICATE BY
     5  APPROPRIATE RESOLUTION ITS DESIRE TO WAIVE NOTICE REQUIREMENTS
     6  IN WHICH CASE THE LEVY OF THE SECOND TAXING BODY SHALL BECOME
     7  EFFECTIVE ON SUCH DATE AS MAY BE AGREED UPON BY THE TWO TAXING
     8  BODIES.
     9     IT IS THE INTENT AND PURPOSE OF THIS PROVISION TO LIMIT RATES
    10  OF TAXES REFERRED TO IN THIS SECTION SO THAT THE ENTIRE BURDEN
    11  OF ONE TAX ON A PERSON, SUBJECT, BUSINESS, TRANSACTION OR
    12  PRIVILEGE SHALL NOT EXCEED THE LIMITATIONS PRESCRIBED IN THIS
    13  SECTION: PROVIDED, HOWEVER, THAT ANY TWO POLITICAL SUBDIVISIONS
    14  WHICH IMPOSE ANY ONE OF THE ABOVE TAXES, ON THE SAME PERSON,
    15  SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE DURING THE SAME YEAR
    16  OR PART OF THE SAME YEAR MAY AGREE AMONG THEMSELVES THAT,
    17  INSTEAD OF LIMITING THEIR RESPECTIVE RATES TO ONE-HALF OF THE
    18  MAXIMUM RATE HEREIN PROVIDED, THEY WILL IMPOSE RESPECTIVELY
    19  DIFFERENT RATES, THE TOTAL OF WHICH SHALL NOT EXCEED THE MAXIMUM
    20  RATE AS ABOVE PERMITTED.
    21     NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, ANY CITY OF
    22  THE SECOND CLASS A MAY ENACT A TAX UPON WAGES, SALARIES,
    23  COMMISSIONS AND OTHER EARNED INCOME OF INDIVIDUALS RESIDENT
    24  THEREIN, NOT EXCEEDING ONE PERCENT, EVEN THOUGH A SCHOOL
    25  DISTRICT LEVIES A SIMILAR TAX ON THE SAME PERSON PROVIDED THAT
    26  THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT.          <--
    27     (12)  IN THE CASE OF DUPLICATION OF EMERGENCY AND MUNICIPAL
    28  SERVICES TAXES BY A SCHOOL DISTRICT AND ANOTHER TAXING BODY, THE
    29  THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT. IN THE   <--
    30  CASE OF DUPLICATION OF EMERGENCY AND MUNICIPAL SERVICES TAXES BY
    20030H0197B4802                 - 19 -     

     1  BOTH A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT OF THE
     2  FIRST CLASS A, AND ANOTHER TAXING BODY, THE SCHOOL DISTRICT'S
     3  SHARE OF THE TAX SHALL NOT EXCEED THE AMOUNT OF EMERGENCY AND     <--
     4  MUNICIPAL SERVICES TAX LEVIED BY THE SCHOOL OF A TAX ON THE       <--
     5  PRIVILEGE OF ENGAGING IN AN OCCUPATION COLLECTED BY THE SCHOOL
     6  DISTRICT AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH. IN THE CASE
     7  WHERE A SCHOOL DISTRICT DID NOT LEVY AN EMERGENCY AND MUNICIPAL   <--
     8  SERVICES TAX A TAX ON THE PRIVILEGE OF ENGAGING IN AN OCCUPATION  <--
     9  ON THE EFFECTIVE DATE OF THIS PARAGRAPH, THE SCHOOL DISTRICT MAY
    10  IMPOSE A FUTURE LEVY NOT TO EXCEED FIVE DOLLARS ($5). A SCHOOL    <--
    11  DISTRICT OF THE FIRST CLASS A SHALL NOT LEVY, ASSESS OR COLLECT
    12  AN EMERGENCY AND MUNICIPAL SERVICES TAX.
    13     SECTION 3 4.  SECTION 10 OF THE ACT IS AMENDED TO READ:        <--
    14     Section 10.  Collection of Taxes.--(a)  Administrative
    15  Personnel; Joint Agreements.--[Any] Except as provided in
    16  subsections (b) and (c), any such political subdivision is
    17  hereby authorized to provide by ordinance or resolution for the
    18  creation of such bureaus or the appointment and compensation of
    19  such officers, clerks, collectors, and other assistants and
    20  employes, either under existing departments, or otherwise as may
    21  be deemed necessary, for the assessment and collection of taxes
    22  imposed under authority of this act.
    23     [Any] Except as provided in subsections (b) and (c), any
    24  political subdivisions imposing taxes under authority of this
    25  act are authorized to make joint agreements for the collection
    26  of such taxes or any of them. The same person or agency may be
    27  employed by two or more political subdivisions to collect any
    28  taxes imposed by them under authority of this act.
    29     (b)  Single Collector for Earned Income Taxes When Certain
    30  School Districts Impose Such Taxes.--[Whenever] Except as
    20030H0197B4802                 - 20 -     

     1  provided in subsection (c), whenever a school district of the
     2  second, third or fourth class shall be established pursuant to
     3  section 296, act of March 10, 1949 (P.L.30), known as the
     4  "Public School Code of 1949," added August 8, 1963 (P.L. 564),
     5  and such school district shall levy, assess and collect or
     6  provide for the levying, assessment and collection of a tax upon
     7  earned income, such school district and all cities, boroughs,
     8  towns and townships within its geographical limits which levy,
     9  assess and collect or provide for the levying, assessment and
    10  collection of a tax upon earned income, may on January 1, 1967,
    11  or as soon thereafter as the school district shall provide for
    12  the levying, assessment and collection of taxes upon earned
    13  income, select one person or agency to collect the taxes upon
    14  earned income imposed by all such political subdivisions. In
    15  selecting such person or agency, each political subdivision
    16  shall share in the selection upon a basis agreed upon by each
    17  political subdivision, or in the absence of any agreement on the
    18  basis of voting according to the proportion that the population
    19  of each bears to the entire population of the combined
    20  collection district, according to the latest official Federal
    21  census, and the majority of such votes cast shall determine the
    22  person or agency selected to collect the taxes. The provisions
    23  of this paragraph shall not prohibit school districts and other
    24  political subdivisions which levy, assess and collect or provide
    25  for the levying, assessment and collection of taxes upon earned
    26  income, under authority of this act, from selecting the same
    27  person or agency to collect such tax upon earned income in an
    28  area larger than the geographical limits of a school district
    29  established pursuant to section 296 of the "Public School Code
    30  of 1949."
    20030H0197B4802                 - 21 -     

     1     (c)  Single Tax Collector in Certain Home Rule
     2  Municipality.--In a municipality having a population under the
     3  2000 Federal decennial census of at least forty thousand and
     4  less than ninety thousand located in a second class county which
     5  municipality has adopted a home rule charter under 53 Pa.C.S.
     6  Pt. III Subpt. E (relating to home rule and optional plan
     7  government), the person or persons appointed by the board of
     8  school directors for the school district in which the
     9  municipality is located as collector or collectors of taxes
    10  levied by the school district under this act shall also serve as
    11  the collector or collectors of taxes levied by the municipality
    12  under this act.
    13     SECTION 4 5.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:   <--
    14     SECTION 22.1.  EMERGENCY AND MUNICIPAL SERVICES TAXES.--ANY
    15  REFERENCE IN ANY ACT OR LAW TO AN OCCUPATIONAL PRIVILEGE TAX
    16  SHALL MEAN THE EMERGENCY AND MUNICIPAL SERVICES TAXES AS
    17  PROVIDED FOR IN THIS ACT.
    18     SECTION 22.2.  RESTRICTED USE.--(A)  ANY MUNICIPALITY
    19  DERIVING FUNDS FROM THE EMERGENCY AND MUNICIPAL SERVICES TAX MAY
    20  ONLY USE THE FUNDS FOR:
    21     (1)  POLICE, FIRE AND/OR EMERGENCY SERVICES;
    22     (2)  ROAD CONSTRUCTION AND/OR MAINTENANCE; OR
    23     (3)  REDUCTION OF PROPERTY TAXES.
    24     (B)  FOR THE PURPOSE OF THE EMERGENCY AND MUNICIPAL SERVICES
    25  TAX, THE TERM MUNICIPALITY DOES NOT INCLUDE A SCHOOL DISTRICT.
    26     Section 2 5.  Section 1970.3 of the act of July 28, 1953       <--
    27  (P.L.723, No.230), known as the Second Class County Code, is
    28  repealed.
    29     Section 3 6.  This act shall take effect January 1, 2004.
    30     SECTION 6.  ANY ORDINANCE OR RESOLUTION PROVIDING FOR THE      <--
    20030H0197B4802                 - 22 -     

     1  LEVYING, ASSESSMENT OR COLLECTION OF A TAX ON INDIVIDUALS FOR
     2  THE PRIVILEGE OF ENGAGING IN AN OCCUPATION WHICH HAS BEEN
     3  ENACTED BY A POLITICAL SUBDIVISION PRIOR TO THE EFFECTIVE DATE
     4  OF THIS SECTION SHALL CONTINUE IN FULL FORCE AND EFFECT, WITHOUT
     5  REENACTMENT, AS IF SUCH TAX HAD BEEN LEVIED, ASSESSED OR
     6  COLLECTED AS AN EMERGENCY AND MUNICIPAL SERVICES TAX UNDER
     7  SECTION 2(9) OF THE ACT. ALL REFERENCES IN ANY ORDINANCE OR
     8  RESOLUTION TO A TAX ON THE PRIVILEGE OF ENGAGING IN AN
     9  OCCUPATION SHALL BE DEEMED TO BE A REFERENCE TO AN EMERGENCY AND
    10  MUNICIPAL SERVICES TAX FOR THE PURPOSES OF THE ACT.
    11     SECTION 6.1.  SECTION 141 OF THE ACT OF JULY 10, 1987
    12  (P.L.246, NO.47), KNOWN AS THE MUNICIPALITIES FINANCIAL RECOVERY
    13  ACT, SHALL NOT APPLY TO A CITY OF THE SECOND CLASS INSOFAR AS
    14  THE SECTION CONFERS AUTHORITY UPON THE CITY TO PETITION FOR THE
    15  IMPOSITION OF AN EARNED INCOME TAX ON NONRESIDENTS. THIS SECTION
    16  SHALL NOT BE CONSTRUED TO LIMIT ANY OTHER PROVISION IN THE
    17  MUNICIPALITIES FINANCIAL RECOVERY ACT. THIS SECTION SHALL EXPIRE
    18  UPON TERMINATION OF THE AUTHORITY ESTABLISHED UNDER THE ACT OF
    19  FEBRUARY 12, 2004 (P.L.73, NO.11), KNOWN AS THE
    20  INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
    21  SECOND CLASS.
    22     SECTION 7.  (A)  THE FOLLOWING ACTS AND PARTS OF ACTS ARE
    23  REPEALED:
    24     SECTION 1970.3 OF THE ACT OF JULY 28, 1953 (P.L.723, NO.230),
    25  KNOWN AS THE SECOND CLASS COUNTY CODE.
    26     (B)  ALL OTHER ACTS OR PARTS OF ACTS AND ALL ORDINANCES AND
    27  RESOLUTIONS OR PARTS THEREOF INCONSISTENT WITH THE PROVISIONS OF
    28  THIS ACT ARE SUSPENDED TO THE EXTENT NECESSARY TO CARRY OUT THE
    29  PROVISIONS OF THIS ACT.
    30     SECTION 8.  THIS ACT SHALL APPLY TO TAXES LEVIED FOR TAX
    20030H0197B4802                 - 23 -     

     1  YEARS COMMENCING ON OR AFTER JANUARY 1, 2005.
     2     SECTION 9.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.



















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