PRIOR PRINTER'S NO. 1485
PRINTER'S NO. 2355
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY GROVE, STEPHENS, SAYLOR, GREINER, AUMENT, HELM, GINGRICH, CUTLER, MARSICO, TALLMAN, ROCK, MICOZZIE, METCALFE, REGAN, HICKERNELL, EVANKOVICH, DUNBAR, VEREB, HAHN, WATSON, TOOHIL, GABLER, MENTZER, TURZAI, R. MILLER, SNYDER, CARROLL, HARHART, GERGELY AND SONNEY, APRIL 15, 2013
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 23, 2013
1Amending the act of December 31, 1965 (P.L.1257, No.511),
2entitled "An act empowering cities of the second class,
3cities of the second class A, cities of the third class,
4boroughs, towns, townships of the first class, townships of
5the second class, school districts of the second class,
6school districts of the third class and school districts of
7the fourth class including independent school districts, to
8levy, assess, collect or to provide for the levying,
9assessment and collection of certain taxes subject to maximum
10limitations for general revenue purposes; authorizing the
11establishment of bureaus and the appointment and compensation
12of officers, agencies and employes to assess and collect such
13taxes; providing for joint collection of certain taxes,
14prescribing certain definitions and other provisions for
15taxes levied and assessed upon earned income, providing for
16annual audits and for collection of delinquent taxes, and
17permitting and requiring penalties to be imposed and
18enforced, including penalties for disclosure of confidential
19information, providing an appeal from the ordinance or
20resolution levying such taxes to the court of quarter
21sessions and to the Supreme Court and Superior Court,"
22providing for optional property tax elimination.
1chapter to read:
3OPTIONAL PROPERTY TAX ELIMINATION
4Section 601. Scope of chapter.
8Section 602. Definitions.
15"Domicile." The term as defined in section 501.
16"Earned income." The term as defined in section 501.
17"Elimination tax." Any of the following:
20(2) A mercantile tax imposed under section 613.
21(3) A business privilege tax imposed under section 613.
24"Net profits." The term as defined in section 501.
25"Resident." The term as defined in section 501.
30"Taxpayer Relief Act." The act of June 27, 2006 (1st
1Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.
2Section 603. Preemption.
3No act of the General Assembly may vacate or preempt any
4resolution passed or adopted under the authority of this
5chapter, or any other act, providing authority for the
6imposition of an elimination tax by a school district, unless
7the act of the General Assembly expressly vacates or preempts
8the authority to pass or adopt resolutions.
9Section 604. Real property tax replacement.
14Section 605. Resolution required.
24Section 606. Use of funds.
28Section 607. Elimination tax rate limits.
<-7(c) Limit.--The rate of the mercantile or business privilege
8tax imposed under section 613 shall not generate revenues in
9excess of 50% of the total elimination tax revenues generated
10under this chapter.
11Section 608. Exemption.
15Section 609. Collections.
22Section 610. Credits.
27(b) Limitation.--Payment of a tax on earned income and net
28profits to any state other than Pennsylvania or to any political
29subdivision located outside the boundaries of this Commonwealth
30by a resident of a school district located in this Commonwealth
4Section 611. Real property tax prohibited.
5(a) Prohibition.--For the first fiscal year beginning after
6the adoption of a resolution that eliminates real property tax
7millage rates and each fiscal year thereafter, a school district
8shall be prohibited from levying, assessing or collecting a real
12Section 612. Applicability of personal income tax.
16Section 613. Mercantile or business privilege tax.
17(a) Wholesale dealers.--Each school district shall have the
18power and may levy, assess and collect a tax on each dollar of
19the whole volume of business transacted by wholesale dealers in
20goods, wares and merchandise.
27(2) Providers of services.
4Section 614. Exclusions from tax.
7(1) The gross receipts from utility service of any
8person or company whose rates and services are fixed and
9regulated by the Pennsylvania Public Utility Commission, on
10any public utility services rendered by the person or
11company, on any privilege or transaction involving the
12rendering of the public utility service or on any Federal
13Energy Regulation Commission-approved qualifying facility.
14(2) Any of the following:
17(ii) The by-products of manufacture.
22(v) Any privilege, act or transaction related to the
23business of manufacturing, the production, preparation or
24processing of minerals, timber and natural resources or
25farm products, by manufacturers, by producers and by
26farmers with respect to the goods, articles and products
27of their own manufacture, production or growth.
30(vii) The transportation, loading, unloading or
1dumping or storage of goods, articles, products or by-
2products under this paragraph, except that school
3districts may levy, assess and collect taxes on a person
4using municipal services and the personal income of
5natural persons engaged in these activities whether doing
6business as an individual proprietorship or as members of
7partnerships or other associations.
8(3) Gross receipts or part of gross receipts which are:
14(iii) Received upon the sale of an article of
15personal property which was acquired by the seller as a
16trade-in to the extent that the gross receipts in the
17sale of the article taken in trade does not exceed the
18amount of trade-in allowance made in acquiring the
25(vi) Based on the value of exchanges or transfers
26between one seller and another seller who transfers
27property with the understanding that property of an
28identical description will be returned at a subsequent
29date, except that if sellers engaged in similar lines of
30business exchange property and one of them makes payment
9(viii) Transfers between one department, branch or
10division of a corporation or other business entity of
11goods, wares and merchandise to another department,
12branch or division of the same corporation or business
13entity and which are recorded on the books to reflect
14such interdepartmental transactions.
19(4) The gross receipts of:
24(ii) Any other institution or entity subject to the
25supervision of the Department of Banking under section
26201 of the act of May 15, 1933 (P.L.565, No.111), known
27as the Department of Banking Code.
28(iii) Any national bank.
5Section 2. This act shall take effect in 60 days.