SENATE AMENDED PRIOR PRINTER'S NOS. 226, 4780 PRINTER'S NO. 4802
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. A23L53BIL/20030H0197B4802 - 24 -