PRINTER'S NO.  3508

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2361

Session of

2012

  

  

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  

  

  

  

AN ACT

  

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Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,

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No.1), entitled "An act providing for taxation by school

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districts, for the State funds formula, for tax relief in

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first class cities, for school district choice and voter

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participation, for other school district options and for a

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task force on school cost reduction; making an appropriation;

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prohibiting prior authorized taxation; providing for

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installment payment of taxes; restricting the power of

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certain school districts to levy, assess and collect taxes;

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and making related repeals," further providing for tax relief

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in first class cities.

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The General Assembly of the Commonwealth of Pennsylvania

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hereby enacts as follows:

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Section 1.  Section 703(b) of the act of June 27, 2006 (1st

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Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is

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amended to read:

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Section 703.  Tax relief.

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* * *

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(b)  Calculation of reduction.--

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(1)  The city shall calculate the amount of the tax rate

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reductions so that they equal, based on estimates certified

 


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by the city's director of finance and approved by the

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Pennsylvania Intergovernmental Cooperation Authority prior to

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the implementation of the reductions, in combination with any

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reduction in the rate of unearned income tax imposed by a

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school district in the city of the first class required by

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the act of August 9, 1963 (P.L.640, No.338), entitled "An act

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empowering cities of the first class, coterminous with school

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districts of the first class, to authorize the boards of

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public education of such school districts to impose certain

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additional taxes for school district purposes, and providing

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for the levy, assessment and collection of such taxes," as a

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result of the reduction in the rate of wage and net profits

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tax, the amount paid to the city from the fund for tax

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reductions. The city shall do the following:

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(i)  Except as set forth in subparagraph (ii), each

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year transfer to the school district an amount equal to

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the cost of any reduction in the rate of unearned income

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tax[,]; and the transfer shall not be subject to the

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provisions of section 696(h) of the Public School Code.

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(ii)  Notwithstanding 4 Pa.C.S. § 1409(b) (relating

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to Property Tax Relief Fund), each year transfer to the

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school district the entire amount paid to the city from

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the fund for tax reductions; and the transfer shall not

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be subject to the provisions of section 696(h) of the

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Public School Code. This subparagraph shall expire on

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the earlier of:

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(A)  July 1, 2017; or

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(B)  the date of publication in the Pennsylvania

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Bulletin of a notice by the Department of Revenue

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certifying that the city has revised its property

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valuation and millage to stabilize the financial

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operation of the school district.

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(2)  The tax rate reductions implemented by a city of the

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first class pursuant to this section shall be in addition to

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the following schedule of percentages of wage and net profits

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tax rate reductions:

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(i)  On January 1, 2005, 2.9468% for residents and

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1.5567% for nonresidents.

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(ii)  On January 1, 2006, 0.6927% for residents and

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1.2593% for nonresidents.

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(iii)  On January 1, 2007, 0.9533% for residents and

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0.4216% for nonresidents.

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(iv)  On January 1, 2008, 0.9624% for residents and

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0.8387% for nonresidents.

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(v)  On January 1, 2009, 1.1851% for residents and

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1.0526% for nonresidents.

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* * * 

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Section 2.  This act shall take effect July 1, 2012, or

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immediately, whichever is later.

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