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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY ERICKSON, EARLL, FERLO, ALLOWAY, TOMLINSON, WONDERLING AND LEACH, APRIL 3, 2009 |
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| REFERRED TO FINANCE, APRIL 3, 2009 |
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| AN ACT |
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1 | Providing options, subject to voter approval, for political |
2 | subdivisions to impose taxes on earned income and net profits |
3 | and personal income for the purpose of reducing real property |
4 | taxes; authorizing a county sales and use tax; and providing |
5 | for disbursement of sales tax revenues. |
6 | The General Assembly of the Commonwealth of Pennsylvania |
7 | hereby enacts as follows: |
8 | CHAPTER 1 |
9 | GENERAL PROVISIONS |
10 | Section 101. Short title. |
11 | This act shall be known and may be cited as the Local Tax |
12 | Choice Act. |
13 | Section 102. Definitions. |
14 | The following words and phrases when used in this act shall |
15 | have the meanings given to them in this section unless the |
16 | context clearly indicates otherwise: |
17 | "Department." The Department of Revenue of the Commonwealth. |
18 | "Earned income." As defined in section 501 of the act of |
19 | December 31, 1965 (P.L.1257, No.511), known as The Local Tax |
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1 | Enabling Act. |
2 | "Election officials." The county board of elections of a |
3 | county. |
4 | "Governing body." Any city council, borough council, |
5 | incorporated town council, board of county commissioners or a |
6 | home rule successor in function, board of township |
7 | commissioners, board of township supervisors, governing council |
8 | of a home rule municipality or optional plan municipality, or |
9 | governing council of a similar general purpose unit of |
10 | government which may be created by statute after the effective |
11 | date of this section. |
12 | "Homestead." As defined in 53 Pa.C.S. § 8401 (relating to |
13 | definitions). |
14 | "Homestead property." As defined in 53 Pa.C.S. § 8401 |
15 | (relating to definitions). |
16 | "Income tax." A tax on earned income and net profits or a |
17 | tax on personal income imposed pursuant to this act. |
18 | "Local Tax Enabling Act." The act of December 31, 1965 |
19 | (P.L.1257, No.511), known as The Local Tax Enabling Act. |
20 | "Net profits." As defined in section 501 of the act of |
21 | December 31, 1965 (P.L.1257, No.511), known as The Local Tax |
22 | Enabling Act. |
23 | "Per capita market value." The total market value of all |
24 | real property divided by population as determined by the most |
25 | recent decennial census. |
26 | "Personal income." Income enumerated in section 303 of the |
27 | act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code |
28 | of 1971, as returned to and ascertained by the Department of |
29 | Revenue, subject, however, to any correction for fraud, evasion |
30 | or error as finally determined by the department or a court of |
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1 | competent jurisdiction. |
2 | "Political subdivision." Any city, county, borough, |
3 | incorporated town or township. |
4 | "Resident individual." An individual who is domiciled in a |
5 | political subdivision. |
6 | "Statewide average weekly wage." That amount determined |
7 | annually for each calendar year by the Department of Labor and |
8 | Industry under section 105.1 of the act of June 2, 1915 |
9 | (P.L.736, No.338), known as the Workers' Compensation Act. |
10 | "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2), |
11 | known as the Tax Reform Code of 1971. |
12 | "Weighted tax revenues." Total tax revenues from all sources |
13 | of a municipality divided by the ratio of its per capita market |
14 | value to the per capita market value of its county. |
15 | CHAPTER 3 |
16 | TAX AUTHORIZATION |
17 | Section 301. General tax authorization. |
18 | (a) General rule.--Subject to section 303, a political |
19 | subdivision may by resolution levy, assess and collect or |
20 | provide for the levying, assessment and collection of the earned |
21 | income and net profits tax or the personal income tax. A |
22 | political subdivision may levy either an earned income and net |
23 | profits tax or a personal income tax, but under no circumstance |
24 | may a political subdivision levy both the earned income and net |
25 | profits tax and a personal income tax. |
26 | (b) Exclusions.--No political subdivision that levies an |
27 | earned income and net profits tax or a personal income tax may |
28 | levy, assess or collect any of the following: |
29 | (1) A tax based upon a flat rate or on a millage rate on |
30 | an assessed valuation of a particular trade, occupation or |
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1 | profession, commonly known as an occupation tax. |
2 | (2) A tax at a set or flat rate upon persons employed |
3 | within the taxing district, commonly known as an occupational |
4 | privilege tax. |
5 | (3) A per capita, poll, residence or similar head tax. |
6 | (4) Except for taxes permitted under 53 Pa.C.S. § |
7 | 8402(b), (c), (d), (e) and (f) (relating to scope and |
8 | limitations), any other tax authorized or permitted under the |
9 | Local Tax Enabling Act. |
10 | (c) Delinquent taxes.--The provisions of subsection (b) |
11 | shall not apply to collection of delinquent taxes. |
12 | Section 302. Continuity of tax. |
13 | The earned income and net profits tax or the personal income |
14 | tax levied under this act shall continue in force on a fiscal |
15 | year basis without annual reenactment unless the rate of tax is |
16 | increased or the tax is subsequently repealed. |
17 | Section 303. Adoption of referendum. |
18 | (a) Submission.--The governing body of all political |
19 | subdivisions shall submit the referendum question to the |
20 | electors of these political subdivisions at the primary election |
21 | of 2010. |
22 | (b) Referendum question.-- |
23 | (1) The referendum question must state the initial rate |
24 | of the proposed earned income and net profits tax or personal |
25 | income tax, the reason for the tax and the amount of proposed |
26 | budgeted revenue growth, if any, in the first fiscal year |
27 | following adoption of the referendum, expressed as a percent |
28 | increase over the prior year's budgeted revenue. Any increase |
29 | in budgeted revenue between the first fiscal year following |
30 | adoption of the referendum and the prior year's budgeted |
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1 | revenue shall not exceed the annual percent change in the |
2 | Statewide average weekly wage. The question shall be in clear |
3 | language that is readily understandable by a layperson. For |
4 | purpose of illustration, a referendum question may be framed |
5 | as follows: |
6 | Do you favor the imposition of an earned income and net |
7 | profits tax or a personal income tax of X% to be used to |
8 | replace (names of local taxes to be repealed), reduce |
9 | real property taxes by X% by and provide for a one-time |
10 | revenue increase of X% over the preceding fiscal year? |
11 | (2) A nonlegal interpretative statement must accompany |
12 | the question in accordance with section 201.1 of the act of |
13 | June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania |
14 | Election Code, that includes the following: the initial rate |
15 | of the earned income and net profits tax or personal income |
16 | tax and the maximum allowable rate of the earned income and |
17 | net profits tax or personal income tax imposed under this |
18 | act; the estimated revenues to be derived from the initial |
19 | rate of the earned income and net profits or personal income |
20 | tax imposed under this act; the amount of proposed revenue |
21 | growth, if any, in the first fiscal year following adoption |
22 | of the referendum; the estimated reduction in real property |
23 | taxes and the elimination of certain existing taxes under |
24 | this act; the identification of the existing taxes to be |
25 | eliminated under this act; the method to be used to reduce |
26 | real property taxes; the class or classes of real property |
27 | for which real property taxes would be reduced; and the |
28 | estimated amount of real property tax reduction by class, |
29 | expressed as an average percent reduction by class. |
30 | Section 304. Taxes authorized. |
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1 | (a) General rule.--A political subdivision may levy, assess |
2 | and collect a tax authorized under either subsection (b) or (c), |
3 | but may not levy, assess and collect both taxes. |
4 | (b) Earned income and net profits tax.--A political |
5 | subdivision shall have the power to levy, assess and collect a |
6 | tax on earned income and net profits up to a maximum rate of |
7 | 1.5%. The tax may be levied by a political subdivision at a rate |
8 | of 1%, 1.25% or 1.5%. |
9 | (c) Personal income tax.--A political subdivision may levy, |
10 | assess and collect a tax on personal income up to a maximum rate |
11 | of 1.5%. The tax may be levied by the political subdivision at a |
12 | rate of 1%, 1.25% or 1.5%. |
13 | Section 305. Collections. |
14 | (a) General rule.--A political subdivision imposing a tax |
15 | under section 304 shall designate the tax officer who is |
16 | appointed under section 506 of the Local Tax Enabling Act, or |
17 | otherwise by law, as the collector of the earned income and net |
18 | profits tax and may designate that tax officer as the collector |
19 | of the personal income tax. In the performance of the tax |
20 | collection duties, the designated tax officer shall have the |
21 | same powers, rights, responsibilities and duties for the |
22 | collection of the taxes that may be imposed under the Local Tax |
23 | Enabling Act or as otherwise provided by law. |
24 | (b) Collection of personal income tax by Commonwealth.-- |
25 | (1) A political subdivision imposing a tax upon personal |
26 | income may enter into an agreement with the department for |
27 | the collection of that personal income tax by the department |
28 | in conjunction with the collection of any tax on personal |
29 | income imposed by the Commonwealth under the Tax Reform Code. |
30 | (2) The agreement may not include any provisions |
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1 | regarding enforcement. The agreement and any renewal shall be |
2 | executed at least six months prior to the date for the |
3 | collection of the tax; shall have a duration of at least |
4 | three years; and, after expiration, shall not be reinstituted |
5 | for a period of three years. The agreement authorized by this |
6 | subsection shall contain a provision appointing the |
7 | department as the tax officer within the meaning of this act. |
8 | (3) The department, by regulation, shall establish the |
9 | procedures for collecting the tax and paying the full amount |
10 | collected to the political subdivision. |
11 | Section 306. Credits. |
12 | (a) General rule.--The provisions of section 317 of the |
13 | Local Tax Enabling Act shall be used to determine any credits |
14 | under the provisions of this chapter for any taxes imposed under |
15 | section 304. |
16 | (b) State tax credit.-- |
17 | (1) This section only applies to a taxpayer who is a |
18 | resident of this Commonwealth and not a resident of a city of |
19 | the first class but who is subject to the tax on salaries, |
20 | wages, commissions or other compensation imposed by a city of |
21 | the first class under the authority of the act of August 5, |
22 | 1932 (Sp.Sess., P.L.45, No.45), referred to as the Sterling |
23 | Act. |
24 | (2) For tax years beginning in the first year in which a |
25 | political subdivision adopts a tax authorized by section 304 |
26 | and each tax year thereafter, payment of a tax on salaries, |
27 | wages, commissions or other compensation as set forth in |
28 | paragraph (1) shall be credited to the political subdivision |
29 | of the taxpayer's residence at an amount no greater than the |
30 | tax on salaries, wages, commissions or other compensation as |
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1 | set forth in paragraph (1) imposed by the political |
2 | subdivision in which the taxpayer resides. |
3 | (3) An amount equal to the aggregate amount of the tax |
4 | credited under paragraph (2) shall be paid by the |
5 | Commonwealth to the political subdivision of residence of |
6 | each taxpayer under paragraph (1) for the purpose of funding |
7 | homestead exclusions. The department shall prescribe |
8 | procedures to calculate the amount due to each political |
9 | subdivision qualifying under this paragraph and shall publish |
10 | the procedures in the Pennsylvania Bulletin. |
11 | Section 307. Exemptions. |
12 | A political subdivision that imposes an authorized tax under |
13 | this act may exempt from the payment of that tax any person |
14 | whose total income from all sources is less than $7,500. |
15 | Section 308. Regulations. |
16 | (a) General rule.--Taxes imposed under section 304(b) shall |
17 | be subject to regulations adopted under Chapter 5 of the Local |
18 | Tax Enabling Act. A political subdivision may adopt regulations |
19 | for the processing of claims for credits or exemptions under |
20 | sections 306 and 307. |
21 | (b) Personal income tax.--Regulations promulgated by the |
22 | department for personal income tax shall apply to any personal |
23 | income tax imposed by a political subdivision pursuant to this |
24 | act. |
25 | Section 309. Disposition of earned income and net profits tax |
26 | revenue or personal income tax revenue. |
27 | The disposition of revenue from any tax imposed under this |
28 | act or an increase in the rate of any tax imposed by political |
29 | subdivisions under the authority of this act shall occur in the |
30 | following manner: |
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1 | (1) For the fiscal year of implementation of a newly |
2 | imposed income tax, all tax revenue received by a political |
3 | subdivision shall be used first to offset any lost revenue to |
4 | the political subdivision from the taxes prohibited under |
5 | section 301(b) in an amount equal to the revenue collected |
6 | from the prohibited taxes in section 301(b) in the preceding |
7 | fiscal year; second, to provide for an increase in budgeted |
8 | revenues over the preceding fiscal year in accordance with |
9 | the amount specified in the referendum question approved by |
10 | the voters under section 303; and third, to reduce the |
11 | political subdivision real property tax in the following |
12 | order: |
13 | (i) By means of an exclusion for homestead property |
14 | pursuant to 53 Pa.C.S. § 8583 (relating to exclusion for |
15 | homestead property). |
16 | (ii) By means of a reduction in the millage rate |
17 | after the limit on the exclusion for homestead property |
18 | has been reached under 53 Pa.C.S. § 8586 (relating to |
19 | limitations). |
20 | (2) For the fiscal year of implementation of an increase |
21 | in the rate of the existing tax imposed under this act, all |
22 | revenue received by a political subdivision directly |
23 | attributable to the increased rate shall be used to reduce |
24 | the political subdivision real property tax in the following |
25 | order: |
26 | (i) By means of an exclusion for homestead property |
27 | pursuant to 53 Pa.C.S. § 8583. |
28 | (ii) By means of a reduction in the millage rate |
29 | after the limit on the exclusion for homestead property |
30 | has been reached under 53 Pa.C.S. § 8586. |
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1 | CHAPTER 5 |
2 | COUNTY SALES AND USE TAX |
3 | Section 501. Construction. |
4 | The tax imposed by the governing body under this chapter |
5 | shall be in addition to any tax imposed by the Commonwealth |
6 | under Article II of the Tax Reform Code. Except for the |
7 | differing situs provisions under section 503, the provisions of |
8 | Article II of the Tax Reform Code shall apply to the tax. |
9 | Section 502. Imposition. |
10 | (a) Sales.--The governing body may levy and assess upon each |
11 | separate sale at retail of tangible personal property or |
12 | services, as defined in Article II of the Tax Reform Code, |
13 | within the boundaries of the county, a tax on the purchase |
14 | price. The tax shall be collected by the vendor from the |
15 | purchaser and shall be paid over to the Commonwealth as provided |
16 | in this chapter. |
17 | (b) Use.--In any county within which the tax authorized in |
18 | subsection (a) is imposed, there shall be levied, assessed and |
19 | collected upon the use, within the county, of tangible personal |
20 | property purchased at retail and on services purchased at |
21 | retail, as defined in Article II of the Tax Reform Code, a tax |
22 | on the purchase price. The tax shall be paid over to the |
23 | Commonwealth by the person who makes the use. The use tax |
24 | imposed under this chapter shall not be paid over to the |
25 | Commonwealth by any person who has paid the tax imposed under |
26 | subsection (a) or has paid the tax imposed by this subsection to |
27 | the vendor with respect to the use. |
28 | (c) Occupancy.--In any county within which a tax authorized |
29 | by subsection (a) is imposed, there shall be levied, assessed |
30 | and collected an excise tax on the rent upon every occupancy of |
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1 | a room or rooms in a hotel in the county. The tax shall be |
2 | collected by the operator or owner from the occupant and paid |
3 | over to the Commonwealth. |
4 | (d) Rate and uniformity.-- |
5 | (1) The tax authorized by subsections (a), (b) and (c) |
6 | shall be imposed at a rate of 1%. |
7 | (2) The tax imposed by subsections (a), (b) and (c) |
8 | shall be uniform. |
9 | (e) Computation.--The tax imposed under this section shall |
10 | be computed in the manner set forth in section 503(e)(2) of the |
11 | act of June 5, 1991 (P.L.9, No.6), known as the Pennsylvania |
12 | Intergovernmental Cooperation Authority Act for Cities of the |
13 | First Class. |
14 | Section 503. Situs. |
15 | The situs of sales at retail or uses, including leases, of |
16 | motor vehicles, aircraft, motorcraft and utility services shall |
17 | be determined in the manner specified by section 504 of the act |
18 | of June 5, 1991 (P.L.9, No.6), known as the Pennsylvania |
19 | Intergovernmental Cooperation Authority Act for Cities of the |
20 | First Class. |
21 | Section 504. Licenses. |
22 | A license for the collection of the tax imposed by this |
23 | chapter shall be issued in the same manner as is provided for in |
24 | section 505 of the act of June 5, 1991 (P.L.9, No.6), known as |
25 | the Pennsylvania Intergovernmental Cooperation Authority Act for |
26 | Cities of the First Class. Licensees shall be entitled to the |
27 | same discount as provided in section 227 of the Tax Reform Code. |
28 | Section 505. Rules and regulations; collection costs. |
29 | (a) Regulations.--Rules and regulations shall be applicable |
30 | to the taxes imposed under section 502 in the same manner as is |
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1 | provided for in section 506(1) and (2) of the act of June 5, |
2 | 1991 (P.L.9, No.6), known as the Pennsylvania Intergovernmental |
3 | Cooperation Authority Act for Cities of the First Class. |
4 | (b) Administrative costs.--The department, to cover its |
5 | costs of administration, shall be entitled to retain a sum equal |
6 | to 1% of the revenues collected under this chapter for |
7 | administrative costs. When the annual operating budget for the |
8 | department is submitted to the General Assembly, the department |
9 | shall also submit to the chairman and minority chairman of the |
10 | Appropriations Committee of the Senate and to the chairman and |
11 | minority chairman of the Appropriations Committee of the House |
12 | of Representatives the actual sums retained for costs of |
13 | collection in the preceding fiscal year, together with all |
14 | supporting details. |
15 | Section 506. Procedure and administration. |
16 | (a) Ordinance.--Any county desiring to impose the tax |
17 | authorized by section 502 shall give at least 60 days' written |
18 | notice to every municipality and school district located in the |
19 | county of its intent to impose the tax and shall adopt an |
20 | ordinance after the expiration of 60 days after the date of the |
21 | notice. The notice and an ordinance shall state the tax rate and |
22 | refer to this chapter. The ordinance shall authorize the |
23 | imposition of all taxes provided for in section 502. Prior to |
24 | adopting an ordinance imposing the tax authorized by section |
25 | 502, the governing body of the county shall give public notice |
26 | of its intent to adopt the ordinance in the manner provided by |
27 | section 306 of the Local Tax Enabling Act and shall conduct at |
28 | least one public hearing regarding the proposed adoption of the |
29 | ordinance. |
30 | (b) Notification to department.--A certified copy of the |
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1 | county ordinance shall be delivered to the department by |
2 | September 1 of the year prior to the effective date of the |
3 | ordinance. The county ordinance shall become effective on the |
4 | January 1 following at least four months after the date of |
5 | enactment of the county ordinance. |
6 | (c) Delivery of repeal ordinance.--A certified copy of a |
7 | repeal ordinance shall be delivered to the department at least |
8 | 120 days prior to the effective date of the repeal. |
9 | Section 507. County sales and use tax funds. |
10 | There is hereby created for each county levying the tax under |
11 | section 502 the (proper name) County Sales and Use Tax Fund. The |
12 | State Treasurer shall be custodian of the funds which shall be |
13 | subject to the provisions of law applicable to funds listed in |
14 | section 302 of the act of April 9, 1929 (P.L.343, No.176), known |
15 | as The Fiscal Code. Taxes imposed under section 502 shall be |
16 | received by the department and paid to the State Treasurer and, |
17 | along with interest and penalties, less any collection costs |
18 | allowed under this chapter and any refunds and credits paid, |
19 | shall be credited to the funds not less frequently than every |
20 | two weeks. During any period prior to the credit of money to the |
21 | funds, interest earned on money received by the department and |
22 | paid to the State Treasurer under this chapter shall be |
23 | deposited into the respective funds. All money in each fund, |
24 | including, but not limited to, money credited to the funds under |
25 | this section, prior year encumbrances and the interest earned |
26 | thereon, shall not lapse or be transferred to any other fund, |
27 | but shall remain in that fund. Pending their disbursement, money |
28 | received on behalf of or deposited into each fund shall be |
29 | invested or reinvested as is other money in the custody of the |
30 | State Treasurer in the manner provided by law. All earnings |
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1 | received from the investment or reinvestment of the money shall |
2 | be credited to the respective funds. |
3 | Section 508. Disbursements. |
4 | (a) General rule.--On or before the tenth day of every |
5 | month, the State Treasurer shall make the disbursements on |
6 | behalf of the county imposing the tax out of the money which is, |
7 | as of the last day of the previous month, contained in the |
8 | respective county sales and use tax fund. |
9 | (b) Disbursement to counties.-- |
10 | (1) The State Treasurer shall disburse to a county |
11 | imposing the tax authorized under section 502 an amount of |
12 | money equal to 50% of the tax collected in that county and |
13 | remitted to the department and deposited in the respective |
14 | county sales and use tax fund. |
15 | (2) An amount of money equal to the remaining 50% of the |
16 | tax collected in that county shall be allocated to all of the |
17 | municipalities and school districts within that county as |
18 | follows: |
19 | (i) Twenty-five percent shall be allocated to all |
20 | municipalities within the county. Each municipality shall |
21 | be allocated a portion as computed under section 510(a). |
22 | (ii) Twenty-five percent shall be allocated to all |
23 | school districts within the county. Each school district |
24 | shall be allocated a portion as computed under section |
25 | 510(b). |
26 | (3) The State Treasurer shall disburse to a county, in |
27 | addition to its share under paragraph (1), an amount of money |
28 | equal to the allocations to nonqualified municipalities and |
29 | school districts within the county. |
30 | (4) The county shall deposit the revenue from the |
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1 | respective county sales and use tax fund into the county |
2 | general fund for disposition as provided under section |
3 | 511(a). |
4 | (c) Disbursement to municipalities.--The State Treasurer |
5 | shall, at the same time, disburse to the qualified |
6 | municipalities an amount of money equal to their allocations |
7 | under subsection (b)(2)(i). Each municipality's portion shall be |
8 | deposited in the municipal general fund for disposition as |
9 | provided in section 511(b). |
10 | (d) Disbursement to school districts.--The State Treasurer |
11 | shall, at the same time, disburse to the qualified school |
12 | districts an amount of money equal to their allocations under |
13 | subsection (b)(2)(ii). Each school district's portion shall be |
14 | deposited in the school district's general fund for disposition |
15 | as provided in section 511(b). |
16 | (e) Penalty.--If disbursements are not made on or before the |
17 | tenth day of each month, a 5% penalty shall be added thereto |
18 | plus an additional 1% late charge per month delayed. |
19 | Section 509. Adoption of municipal resolutions and school |
20 | district petitions. |
21 | (a) General rule.--No municipality shall be entitled to a |
22 | disbursement under section 508(c) and no school district may |
23 | receive a disbursement under section 508(d) unless one of the |
24 | following applies: |
25 | (1) Prior to enactment of the county ordinance, it |
26 | adopts a municipal resolution or a school district petition |
27 | containing the statement: |
28 | We strongly urge the county to enact a county sales and |
29 | use tax and intend to accept disbursements of the sales |
30 | and use taxes collected. |
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1 | Any municipality which does not enact an ordinance and a |
2 | school district which does not enact a petition in compliance |
3 | with this paragraph may not receive any distribution from |
4 | funds collected during the first 24 months immediately |
5 | following the initial date of imposition of the tax. |
6 | (2) Prior to October 1 of any year after the enactment |
7 | of the county resolution, it adopts a municipal resolution or |
8 | a school district petition containing the statement: |
9 | We support the enactment by the county of the county |
10 | sales and use tax and strongly urge its continuation and |
11 | intend to accept disbursements of the sales and use taxes |
12 | collected. |
13 | (b) Delivery.--A certified copy of the municipal resolution |
14 | or the school district petition shall be delivered to the county |
15 | commissioners on or before the enactment of the county |
16 | resolution or October 15 of any year thereafter, as the case may |
17 | be. |
18 | Section 510. Allocations and qualifications. |
19 | (a) Allocations to municipalities.--The State Treasurer |
20 | shall compute allocations to municipalities in the following |
21 | manner: |
22 | (1) Fifty percent of the money allocated to |
23 | municipalities shall be pursuant to a format in which the |
24 | total allocation to municipalities multiplied by the ratio of |
25 | weighted tax revenues of the municipality divided by the sum |
26 | of the weighted tax revenues of all municipalities located in |
27 | the county. |
28 | (2) Fifty percent of the money allocated to |
29 | municipalities shall be returned to the municipality of |
30 | origin of the sales tax revenue. |
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1 | (b) Allocations to school districts.--Each school district |
2 | shall be allocated a portion of the total allocation to school |
3 | districts which is equal to the total allocation to school |
4 | districts multiplied by the ratio of average daily membership of |
5 | the school district divided by the sum of the average daily |
6 | membership of all school districts in the county. |
7 | (c) Qualifications.--Municipalities and school districts |
8 | qualified to receive disbursements under section 508(c) or (d) |
9 | are municipalities and school districts located within the |
10 | county, which: |
11 | (1) Adopt in a timely fashion the ordinance or petition |
12 | required under section 509. |
13 | (2) Adopt the necessary ordinances or, in the case of |
14 | school districts, take the legally necessary action and |
15 | impose the taxes authorized under this chapter. |
16 | (d) Calculation of weighted tax revenues.--Calculations of |
17 | weighted tax revenues shall be made by the Department of |
18 | Community and Economic Development or any successor agency and |
19 | certified to the State Treasurer based upon information reported |
20 | to the Department of Community and Economic Development or any |
21 | successor agency, subject to review, verification and approval |
22 | by the Department of Community and Economic Development or any |
23 | successor agency. |
24 | Section 511. Sales tax revenues. |
25 | (a) Counties.--One hundred percent of any additional |
26 | revenues received by a county from the sales and use tax shall |
27 | be used to offset the revenues lost as a result of the |
28 | prohibition against imposition of the taxes enumerated in |
29 | section 301(b) and then to reduce the county real property tax |
30 | by means of a homestead exclusion. |
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1 | (b) Municipalities and school districts.--One hundred |
2 | percent of any additional revenues shall be used to offset the |
3 | revenues lost as a result of the prohibition against imposition |
4 | of the taxes enumerated in section 301(b) and then to reduce |
5 | real property tax by means of a homestead exclusion. |
6 | CHAPTER 11 |
7 | MISCELLANEOUS PROVISIONS |
8 | Section 1101. Effective date. |
9 | This act shall take effect in 60 days. |
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