AN ACT

 

1Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, 
2No.1), entitled "An act providing for taxation by school 
3districts, for the State funds formula, for tax relief in 
4first class cities, for school district choice and voter 
5participation, for other school district options and for a 
6task force on school cost reduction; making an appropriation; 
7prohibiting prior authorized taxation; providing for 
8installment payment of taxes; restricting the power of 
9certain school districts to levy, assess and collect taxes; 
10and making related repeals," in taxation by school districts, 
11further providing for adoption of further referendum and for
12disposition of income tax revenue and property tax reduction
13allocation.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1. Section 332(a) of the act of June 27, 2006 (1st 
17Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, is
18amended to read:

19Section 332. Adoption of further referendum.

20(a) General rule.--In addition to the provisions of section
21331.2, a board of school directors may:

22(1) Levy, assess and collect an earned income and net
23profits tax authorized under section 321(b)(2) [only after

1obtaining]. A board of school directors may exercise the 
2power under this paragraph, at its option, by adopting an 
3ordinance without obtaining approval of the electorate or 
4after obtaining the approval of the electorate of the school
5district in a public referendum at a municipal election. The
6first such public referendum must be conducted no earlier
7than the municipal election of 2009.

8* * *

9Section 2. Section 334(c) of the act is amended by adding a
10paragraph to read:

11Section 334. Disposition of income tax revenue and property tax
12reduction allocations.

13* * *

14(c) Property tax reduction allocations.--

15* * *

16(1.1) Notwithstanding the provisions of paragraph (1), a
17school district may use the property tax reduction allocation
18received under section 505 for the general operations of the
19school district if the school district property tax millage
20rate is zero.

21* * *

22Section 3. This act shall take effect in 60 days.