THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY M. O'BRIEN, YOUNGBLOOD, ROEBUCK, CRUZ, BISHOP, B. BOYLE, K. BOYLE, V. BROWN, BROWNLEE, CALTAGIRONE, COHEN, CONKLIN, P. COSTA, CURRY, DeLUCA, DONATUCCI, FABRIZIO, FLECK, HARKINS, JOSEPHS, KIRKLAND, McGEEHAN, MYERS, PAYTON, SABATINA, SCAVELLO, THOMAS, VITALI AND WATERS, MAY 9, 2012
REFERRED TO COMMITTEE ON FINANCE, MAY 9, 2012
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," further providing for tax relief
in first class cities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 703(b) of the act of June 27, 2006 (1st
Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is
amended to read:
Section 703. Tax relief.
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(b) Calculation of reduction.--
(1) The city shall calculate the amount of the tax rate
reductions so that they equal, based on estimates certified
by the city's director of finance and approved by the
Pennsylvania Intergovernmental Cooperation Authority prior to
the implementation of the reductions, in combination with any
reduction in the rate of unearned income tax imposed by a
school district in the city of the first class required by
the act of August 9, 1963 (P.L.640, No.338), entitled "An act
empowering cities of the first class, coterminous with school
districts of the first class, to authorize the boards of
public education of such school districts to impose certain
additional taxes for school district purposes, and providing
for the levy, assessment and collection of such taxes," as a
result of the reduction in the rate of wage and net profits
tax, the amount paid to the city from the fund for tax
reductions. The city shall do the following:
(i) Except as set forth in subparagraph (ii), each
year transfer to the school district an amount equal to
the cost of any reduction in the rate of unearned income
tax[,]; and the transfer shall not be subject to the
provisions of section 696(h) of the Public School Code.
(ii) Notwithstanding 4 Pa.C.S. § 1409(b) (relating
to Property Tax Relief Fund), each year transfer to the
school district the entire amount paid to the city from
the fund for tax reductions; and the transfer shall not
be subject to the provisions of section 696(h) of the
Public School Code. This subparagraph shall expire on
the earlier of:
(A) July 1, 2017; or
(B) the date of publication in the Pennsylvania
Bulletin of a notice by the Department of Revenue
certifying that the city has revised its property
valuation and millage to stabilize the financial
operation of the school district.
(2) The tax rate reductions implemented by a city of the
first class pursuant to this section shall be in addition to
the following schedule of percentages of wage and net profits
tax rate reductions:
(i) On January 1, 2005, 2.9468% for residents and
1.5567% for nonresidents.
(ii) On January 1, 2006, 0.6927% for residents and
1.2593% for nonresidents.
(iii) On January 1, 2007, 0.9533% for residents and
0.4216% for nonresidents.
(iv) On January 1, 2008, 0.9624% for residents and
0.8387% for nonresidents.
(v) On January 1, 2009, 1.1851% for residents and
1.0526% for nonresidents.
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Section 2. This act shall take effect July 1, 2012, or
immediately, whichever is later.