THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY REICHLEY, BEYER, CREIGHTON, EVERETT, GINGRICH, HUTCHINSON, MELIO, MURT, PYLE, RAPP, VEREB AND YOUNGBLOOD, MARCH 11, 2009

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 11, 2009  

AN ACT

Amending the act of December 31, 1965 (P.L.1257, No.511),

entitled "An act empowering cities of the second class,

cities of the second class A, cities of the third class,

boroughs, towns, townships of the first class, townships of

the second class, school districts of the second class,

school districts of the third class and school districts of

the fourth class including independent school districts, to

levy, assess, collect or to provide for the levying,

assessment and collection of certain taxes subject to maximum

limitations for general revenue purposes; authorizing the

establishment of bureaus and the appointment and compensation

of officers, agencies and employes to assess and collect such

taxes; providing for joint collection of certain taxes,

prescribing certain definitions and other provisions for

taxes levied and assessed upon earned income, providing for

annual audits and for collection of delinquent taxes, and

permitting and requiring penalties to be imposed and

enforced, including penalties for disclosure of confidential

information, providing an appeal from the ordinance or

resolution levying such taxes to the court of quarter

sessions and to the Supreme Court and Superior Court,"

further providing for delegation of taxing powers and

restrictions thereon and for limitations on rates of specific

taxes; and making a related repeal.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 301.1(f)(3) of the act of December 31,

1965 (P.L.1257, No.511), known as The Local Tax Enabling Act,

amended October 15, 2008 (P.L.1615, No.130), is amended and

subsection (f) is amended by adding a clause to read:

Section 301.1.  Delegation of Taxing Powers and Restrictions

Thereon.--* * *

(f)  Such local authorities shall not have authority by

virtue of this act:

* * *

(3)  Except [on sales of admission to places of amusement,

other than on sales of admission to professional baseball events

in a city of the third class with a population of not less than

one hundred six thousand and not more than one hundred seven

thousand based on the 2000 Federal decennial census, or] on

sales or other transfers of title or possession of property, to

levy, assess or collect a tax on the privilege of employing such

tangible property as is now or does hereafter become subject to

a State tax; and for the purposes of this clause, real property

rented for camping purposes shall not be considered a place of

amusement;

(3.1)  To levy, assess or collect a tax on sales of admission

to places of amusement;

* * *

Section 2.  Section 311 of the act, amended July 2, 2008

(P.L.197, No.32) and October 15, 2008 (P.L.1615, No.130), is

amended to read:

Section 311.  Limitations on Rates of Specific Taxes.--No

taxes levied under the provisions of this chapter shall be

levied by any political subdivision on the following subjects

exceeding the rates specified in this section:

(1)  Per capita, poll or other similar head taxes, ten

dollars ($10).

(2)  On each dollar of the whole volume of business

transacted by wholesale dealers in goods, wares and merchandise,

one mill, by retail dealers in goods, wares and merchandise and

by proprietors of restaurants or other places where food, drink

and refreshments are served, one and one-half mills; except in

cities of the second class, where rates shall not exceed one

mill on wholesale dealers and two mills on retail dealers and

proprietors. No such tax shall be levied on the dollar volume of

business transacted by wholesale and retail dealers derived from

the resale of goods, wares and merchandise, taken by any dealer

as a trade-in or as part payment for other goods, wares and

merchandise, except to the extent that the resale price exceeds

the trade-in allowance. When a political subdivision which

currently levies, assesses or collects a mercantile or business

privilege tax on gross receipts under section 533 of the act of

December 13, 1988 (P.L.1121, No.145), known as the "Local Tax

Reform Act," merges with one or more political subdivisions to

form a new political subdivision on or after August 1, 2008, the

new political subdivision may levy that mercantile or business

privilege tax, but not at a rate greater than the rate necessary

to generate the same revenues generated in the last fiscal year

that the merging political subdivision generated before the

merger. If the merging political subdivision had previously

shared the rate of taxation with another political subdivision,

the nonmerging political subdivision which had shared the rate

is capped at the rate it was previously levying.

(3)  On wages, salaries, commissions and other earned income

of individuals, one percent.

(4)  On retail sales involving the transfer of title or

possession of tangible personal property, two percent.

(5)  On the transfer of real property, one percent.

[(6)  On admissions to places of amusement, athletic events

and the like, and on motion picture theatres in cities of the

second class, ten percent.]

(7)  Flat rate occupation taxes not using a millage or

percentage as a basis, ten dollars ($10).

(8)  Local services taxes, fifty-two dollars ($52).

[(9)  On admissions to ski facilities, ten percent. The tax

base upon which the tax shall be levied shall not exceed forty

percent of the cost of the lift ticket. The lift ticket shall

include all costs of admissions to the ski facility.

(10)  On admissions to golf courses, ten percent. The tax

base upon which the tax shall be levied shall not exceed forty

percent of the greens fee. The greens fee shall include all

costs of admissions to the golf course.]

(12)  On payrolls, fifty-five hundredths percent.

Except as otherwise provided in this chapter, at any time two

political subdivisions shall impose any one of the above taxes

on the same person, subject, business, transaction or privilege,

located within both such political subdivisions, during the same

year or part of the same year, under the authority of this

chapter then the tax levied by a political subdivision under the

authority of this chapter shall, during the time such

duplication of the tax exists, except as hereinafter otherwise

provided, be one-half of the rate, as above limited, and such

one-half rate shall become effective by virtue of the

requirements of this chapter from the day such duplication

becomes effective without any action on the part of the

political subdivision imposing the tax under the authority of

this chapter. When any one of the above taxes has been levied

under the provisions of this chapter by one political

subdivision and a subsequent levy is made either for the first

time or is revived after a lapse of time by another political

subdivision on the same person, subject, business, transaction

or privilege at a rate that would make the combined levies

exceed the limit allowed by this subdivision, the tax of the

second political subdivision shall not become effective until

the end of the fiscal year for which the prior tax was levied,

unless:

(1)  Notice indicating its intention to make such levy is

given to the first taxing body by the second taxing body as

follows: (i) when the notice is given to a school district it

shall be given at least forty-five days prior to the last day

fixed by law for the levy of its school taxes; (ii) when given

to any other political subdivision it shall be prior to the

first day of January immediately preceding, or if a last day for

the adoption of the budget is fixed by law, at least forty-five

days prior to such last day; or

(2)  Unless the first taxing body shall indicate by

appropriate resolution its desire to waive notice requirements

in which case the levy of the second taxing body shall become

effective on such date as may be agreed upon by the two taxing

bodies.

It is the intent and purpose of this provision to limit rates

of taxes referred to in this section so that the entire burden

of one tax on a person, subject, business, transaction or

privilege shall not exceed the limitations prescribed in this

section: Provided, however, That any two political subdivisions

which impose any one of the above taxes, on the same person,

subject, business, transaction or privilege during the same year

or part of the same year may agree among themselves that,

instead of limiting their respective rates to one-half of the

maximum rate herein provided, they will impose respectively

different rates, the total of which shall not exceed the maximum

rate as above permitted.

Notwithstanding the provisions of this section, any city of

the second class A may enact a tax upon wages, salaries,

commissions and other earned income of individuals resident

therein, not exceeding one percent, even though a school

district levies a similar tax on the same person provided that

the aggregate of both taxes does not exceed two percent.

Section 3.  Repeals are as follows:

(1)  The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the amendment of

sections 301.1(f) and 311 of the act.

(2)  53 Pa.C.S. § 8402(c) is repealed.

Section 4.  This act shall take effect in 60 days.