PRINTER'S NO. 799
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY BLAKE, ALLOWAY, FONTANA, SOLOBAY, COSTA, FERLO AND WILEY, APRIL 1, 2013
REFERRED TO FINANCE, APRIL 1, 2013
1Authorizing counties to impose sales, use and occupancy taxes;
2and providing for the levying, assessment and collection of
3taxes and for the powers and duties of the Department of
4Community and Economic Development or a successor agency, the
5Department of Revenue and the State Treasurer.
6TABLE OF CONTENTS
7Chapter 1. General Provisions
8Section 101. Short title.
9Section 102. Definitions.
10Section 103. Scope.
11Section 104. Preemption.
12Section 105. Rates of taxation in home rule counties.
13Chapter 3. Subjects of Taxation
14Subchapter A. Tax Authorization
15Section 301. General tax authorization.
16Section 302. Continuity of tax.
17Section 303. Election to participate under act.
18Section 304. Local tax study commission.
19Section 305. Municipal sales, use and occupancy tax initiative.
1Subchapter B. County Sales, Use and Occupancy Tax
2Section 311. Construction.
3Section 312. Imposition of tax.
4Section 313. Situs.
5Section 314. Licenses.
6Section 315. Rules and regulations; collection costs.
7Section 316. Procedure and administration.
8Section 317. County sales, use and occupancy tax funds.
9Section 318. Disbursements.
10Section 319. Adoption of municipal ordinances.
11Section 320. Allocations.
12Chapter 5. Disposition of Tax Revenues
13Section 501. Sales, use and occupancy tax revenues.
14Section 502. Revenue limitation exceptions.
15Chapter 7. Miscellaneous Provisions
16Section 701. (Reserved).
17Section 702. Effective date.
22Section 101. Short title.
25Section 102. Definitions.
1has adopted a home rule charter under the provisions 53 Pa.C.S.
2Pt. III Subpt. E (relating to home rule and optional plan
3government), but does not include the city council of a city of
4the first class or the county council of a county of the second
6"County." A county-level municipality within this
7Commonwealth. The term includes a county which has adopted a
8home rule charter or optional plan of government under the
9provisions of 53 Pa.C.S. Pt. III Subpt. E (relating to home rule
10and optional plan government). The term does not include a
11county of the first class or a county of the second class.
14"Department." The Department of Revenue of the Commonwealth.
22"Municipality." A city of the second class A, city of the
23third class, borough, incorporated town, township of the first
24class, township of the second class, home rule municipality,
25optional plan municipality, optional form municipality or
26similar general purpose unit of government which may after the
27effective date of this section be established by statute, except
28a city of the first class or a city of the second class. Unless
29the context clearly indicates otherwise, for the purposes of
30this act, a municipality located in a county shall include
7"Ordinance." Includes a resolution.
20Section 103. Scope.
24Section 104. Preemption.
25No act of the General Assembly in effect prior to or after
26the effective date of this section shall vacate or preempt any
27ordinance passed or adopted under the authority of this act or
28another act providing authority for the imposition of a tax by a
29county, unless the act of the General Assembly expressly vacates
30or preempts the authority to pass or adopt the ordinance.
1Section 105. Rates of taxation in home rule counties.
2A county which has adopted a home rule charter or optional
3plan of government under the provisions of 53 Pa.C.S. Pt. III
4Subpt. E (relating to home rule and optional plan government)
5may not fix the rate of taxation for the subjects of taxation
6authorized under Chapter 3 in excess of the rates fixed in
9SUBJECTS OF TAXATION
12Section 301. General tax authorization.
13(a) General rule.--Subject to section 303 and except as
14provided in subsection (b), a county shall have the power and
15may by ordinance levy and assess or provide for the levying and
16assessment of taxes on the sale or use of tangible personal
17property and services and the occupancy of a hotel room at a
18rate of 1% for general revenue purposes as it shall determine on
19a subject of taxation set forth in this act within the
20geographical limits of the county.
26(2) A per capita, poll, residence or similar head tax.
30Section 302. Continuity of tax.
4Section 303. Election to participate under act.
5(a) General rule.--A board of county commissioners which
6elects to participate under the provisions of this act shall do
7so by using the procedures specified in subsection (b) and in
8accordance with the following provisions:
12(2) A board of county commissioners after making an
13election to participate under this act may, after a period of
14at least three full calendar years of participation, elect
15under the provisions of subsection (c) to cease participation
16under this act and levy, assess and collect the taxes
17prohibited by section 301(b) to the extent otherwise provided
19(b) Ordinance.--Subject to the notice and public hearing
20requirements of section 316(a), a board of county commissioners
21may elect to participate under this act by adopting an ordinance
22imposing the tax. The ordinance must be adopted no later than
23September 1 preceding the calendar year when the tax will be
25(c) Repeal.--Subject to the notice and public hearing
26requirements of section 316(c), a board of county commissioners
27may elect to cease participation under this act by adopting an
28ordinance repealing the tax. The ordinance must be adopted no
29later than September 1 preceding the calendar year when the tax
30will be repealed.
1Section 304. Local tax study commission.
2(a) First-year implementation.--In considering whether to
3levy, assess, collect or provide for the levy, assessment or
4collection of a tax under this act, a board of county
5commissioners may, by February 1 of the year preceding the
6calendar year for which the tax shall be levied, appoint a local
7tax study commission in accordance with the following
9(1) The local tax study commission shall consist of
10five, seven or nine members appointed by the board of county
11commissioners. One member of the local tax study commission
12may be a member of the board of county commissioners. A
13member of the local tax study commission may not be a
14relative, by blood or marriage, of an official or employee of
15the county. The members must be residents of the county.
16Representatives on a local tax study commission should
17reasonably reflect the socioeconomic, age and occupational
18diversity of the county.
25(4) The local tax study commission shall study the
26existing taxes levied, assessed and collected by the county
27and determine if and how the tax policies of the county may
28be strengthened or made more equitable by adopting for levy,
29assessment and collection of a sales, use and occupancy tax
30as provided for in this act. This study shall include, but
1not be limited to, consideration of the following:
13(5) Within 120 days of its appointment, the local tax
14study commission shall make a nonbinding recommendation to
15the board of county commissioners of the appropriate tax or
16combination of taxes, identified in paragraph (4), to be
17levied, assessed and collected commencing the next fiscal
19(6) Upon appointment of the commission and except as
20provided for in paragraph (8), a tax may not be levied,
21assessed or collected for the next fiscal year until receipt
22of the recommendation of the local tax study commission.
23(7) No later than September 1 prior to the commencement
24of the next fiscal year, the board of county commissioners
25shall accept or reject the recommendation of the local tax
26study commission or adopt another appropriate tax or
27combination of taxes for the county commencing the next
28fiscal year as provided by this act and other applicable law.
1the board of county commissioners shall discharge the
2appointed local tax study commission and appoint itself as
3the local tax study commission. No later than September 1
4prior to the commencement of the next fiscal year, the board
5of county commissioners shall adopt the appropriate tax or
6combination of taxes for the county commencing the next
7fiscal year as provided by this act and other applicable law.
8(9) The local tax study commission shall publish or
9cause to be published, within 30 days of making its
10recommendation, a final report of its activities and
11recommendations and shall deliver the final report to the
12chief clerk of the county who shall supply copies to
13interested persons at their request.
14(10) Receipts are required for reimbursable expenses.
15(11) The records, receipts, minutes of meetings and
16written discussions of the local tax study commission shall,
17upon its discharge, be turned over to the chief clerk of the
18county for permanent safekeeping. The chief clerk shall make
19the materials available for public inspection at any time
20during regular business hours.
23(b) Effect.--A county that levies, assesses and collects or
24provides for the levy, assessment or collection of any tax,
25after having received the recommendations of a local tax study
26commission and acted, shall continue to levy, assess and collect
27the same tax or combination of taxes for a minimum of the next
28three fiscal years.
1recommendation of a tax study commission under this section, and
2no more frequently than every three fiscal years thereafter, the
3board of commissioners may appoint a local tax study commission
4in the manner provided in subsection (a). The local tax study
5commission appointed under this subsection shall be charged with
6the same powers and duties provided for a local tax study
7commission under subsection (a).
8(d) Construction.--Nothing in this section shall be
9construed to preclude the board of county commissioners from
10changing or altering the rates of the tax or combination of
11taxes if it deems necessary to the extent otherwise permitted by
13Section 305. Municipal sales, use and occupancy tax initiative.
14(a) General rule.—-After the first January 1 occurring at
15least six months following the effective date of this section,
16if the board of county commissioners of a county has not elected
17to participate under this act, municipalities located in that
18county may require, as provided in this section, the board of
19county commissioners of the county to impose the sales, use and
20occupancy tax as provided in section 312.
22(1) If the board of county commissioners of a county has
23not elected to participate under this act by the first
24January 1 occurring at least six months following the
25effective date of this section, the governing body of a
26municipality located in that county may place before the
27governing bodies of the municipalities located in that county
28the following question:
1312 of the County and Municipal Property Tax Relief Act?
2(2) Circulation of the question may begin no earlier
3than January 1 of the year prior to the proposed year of
4implementation, and the vote by the governing bodies of the
5municipalities must conclude no later than June 1 of the year
6prior to the proposed year of implementation.
7(3) Each governing body of a municipality voting in the
8affirmative on the question shall certify its vote on the
9question to the board of county commissioners. The governing
10body of a municipality that is located in more than one
11county shall certify its vote on the question to the board of
12county commissioners for each county where the municipality
14(4) The affirmative votes of the governing bodies of
15municipalities whose combined population represents more than
1660% of the population within the county shall be necessary
17for the board of county commissioners to elect participation
18under this act. The population of a municipality that is
19located in more than one county shall be determined
20separately for each county where the municipality is located
21on the basis of the municipality's population within each
23(5) Upon receipt of certifications from municipalities
24indicating approval of the question by municipalities whose
25combined population represents more than 60% of the
26population of the county, the board of county commissioners
27of the county shall, for the next calendar year, elect to
28participate under this act, under the procedures of section
30(6) A municipality is qualified to receive a
1disbursement under section 318 if the municipality:
7COUNTY SALES, USE AND OCCUPANCY TAX
8Section 311. Construction.
9The tax imposed by the board of county commissioners under
10this subchapter shall be in addition to a tax imposed by the
11Commonwealth under Article II of the Tax Reform Code. Except for
12the differing situs provisions under section 313, the provisions
13of Article II of the Tax Reform Code shall apply to the tax.
14Section 312. Imposition of tax.
16(1) The board of county commissioners may levy and
17assess upon each separate sale at retail of tangible personal
18property or services, as defined in Article II of the Tax
19Reform Code, within the boundaries of the county, a tax on
20the purchase price.
25(1) In a county within which the tax authorized in
26subsection (a) is imposed, there shall be levied, assessed
27and collected upon the use, within the county, of tangible
28personal property purchased at retail and on services
29purchased at retail, as defined in Article II of the Tax
30Reform Code, a tax on the purchase price.
3(3) The use tax imposed under this subchapter shall not
4be paid over to the Commonwealth by a person who has paid the
5tax imposed by subsection (a) or has paid the tax imposed by
6this subsection to the vendor regarding the use.
8(1) In a county within which a tax authorized by
9subsection (a) is imposed, there shall be levied, assessed
10and collected an excise tax on the rent upon every occupancy
11of a room or rooms in a hotel in the county.
17(e) Computation.--The tax imposed under this section shall
18be computed in the manner set forth in section 503(e)(2) of the
19act of June 5, 1991 (P.L.9, No.6), known as the Pennsylvania
20Intergovernmental Cooperation Authority Act for Cities of the
22Section 313. Situs.
23The situs of sales at retail or uses of motor vehicles,
24aircraft, motorcraft and utility services shall be determined in
25the manner specified by section 504 of the act of June 5, 1991
26(P.L.9, No.6), known as the Pennsylvania Intergovernmental
27Cooperation Authority Act for Cities of the First Class and by
28Article II-A of the Tax Reform Code.
29Section 314. Licenses.
30A license for the collection of the tax imposed by this
1subchapter shall be issued in the same manner as is provided for
2in section 505 of the act of June 5, 1991 (P.L.9, No.6), known
3as the Pennsylvania Intergovernmental Cooperation Authority Act
4for Cities of the First Class. Licensees shall be entitled to
5the same discount as provided in section 227 of the Tax Reform
7Section 315. Rules and regulations; collection costs.
8(a) Regulations.--Rules and regulations shall be applicable
9to the taxes imposed under section 312 in the same manner as is
10provided for in section 506(1) and (2) of the act of June 5,
111991 (P.L.9, No.6), known as the Pennsylvania Intergovernmental
12Cooperation Authority Act for Cities of the First Class.
13(b) Administrative costs.--
17(2) When the annual operating budget for the department
18is submitted to the General Assembly, the department shall
19also submit to the chairman and minority chairman of the
20Appropriations Committee of the Senate and to the chairman
21and minority chairman of the Appropriations Committee of the
22House of Representatives the actual sums retained for costs
23of collection in the preceding fiscal year, together with the
25Section 316. Procedure and administration.
27(1) A county desiring to impose the tax authorized by
28section 312 shall give at least 60 days' written notice to
29each municipality in the county of its intent to impose the
30tax and shall adopt an ordinance after the expiration of 60
1days after the date of the notice. The notice and ordinance
2shall state the tax rate and refer to this subchapter. The
3ordinance shall authorize the imposition of the tax on the
4subjects provided for in section 312.
5(2) Prior to adopting an ordinance imposing the tax
6under section 312, the board of county commissioners shall
7give public notice of its intent to adopt the ordinance in
8the manner provided by section 306 of the Local Tax Enabling
9Act and shall conduct at least one public hearing regarding
10the proposed adoption of the ordinance.
14(b) Notification to department.--A certified copy of the
15county ordinance shall be delivered to the department by
16September 1 of the year prior to the effective date of the
17ordinance. The county ordinance shall become effective on the
18January 1 following delivery of the certified copy to the
21(1) A county, having enacted the tax authorized by
22section 312 and desiring to repeal the tax, shall give at
23least 60 days' written notice to every municipality located
24in the county of its intent to repeal the tax and shall adopt
25an ordinance after the expiration of 60 days after the date
26of the notice. The ordinance shall authorize the repeal of
27the tax on the subjects under section 312.
4(d) Delivery of repeal ordinance.--The board of county
5commissioners shall deliver a certified copy of a repeal
6ordinance to the department by September 1 of the year prior to
7the effective date of the repeal.
8Section 317. County sales, use and occupancy tax funds.
9(a) Funds established in State Treasury.--There is hereby
10established in the State Treasury for each county imposing the
11tax under section 312 a county sales, use and occupancy tax fund
12in the name of each county. The State Treasurer shall be
13custodian of the funds which shall be subject to the provisions
14of law applicable to funds listed in section 302 of the act of
15April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
16(b) Deposits into funds.--
17(1) The tax imposed under section 312 shall be received
18by the department and paid to the State Treasurer and, along
19with interest and penalties, less any collection costs
20allowed under this subchapter and any refunds and credits
21paid, shall be credited to the respective fund no less than
22every two weeks.
23(2) During a period prior to the credit of money to each
24such fund, interest earned on money received by the
25department and paid to the State Treasurer under this
26subchapter shall be deposited into the respective fund.
27(c) Lapsing and interfund transfers prohibited.--The money
28in each respective fund, including, but not limited to, money
29credited to the fund under this section, prior year encumbrances
30and the interest earned thereon, shall not lapse or be
3(d) Investment.--Pending their disbursement, moneys received
4on behalf of or deposited into each respective fund shall be
5invested or reinvested as are other money in the custody of the
6State Treasurer in the manner provided by law. The earnings
7received from the investment or reinvestment of the money shall
8be credited to the respective fund.
9Section 318. Disbursements.
13(b) Disbursement to counties.--
14(1) The State Treasurer shall disburse to a county
15imposing the tax under section 312 an amount of money equal
16to 55% of the tax deposited in the respective county sales,
17use and occupancy tax fund for deposit into the county
18general fund for disposition as provided under section
20(2) The State Treasurer shall disburse to a county, in
21addition to its share under paragraph (1), an amount of money
22equal to the amount allocated to the nonqualified
23municipalities as provided in this section.
24(c) Allocation to municipalities.--The State Treasurer shall
25allocate an amount of money equal to 45% of the tax deposited in
26the respective county sales, use and occupancy tax fund to the
27municipalities located in the county. The money shall be
28apportioned to the municipalities located in the county as
29computed under section 320(a).
30(d) Disbursement to municipalities.--
5(2) The amount apportioned to each nonqualified
6municipality shall be disbursed to the county as provided in
7subsection (b)(2) for deposit into the county general fund
8for disposition as provided under section 501(a).
9(e) Penalty.--If disbursements are not made on or before the
10tenth day of each month, a 5% penalty shall be added plus a 1%
11late charge per month delayed, along with interest and penalties
12accruing under section 317. Payment of penalties and late
13charges under this subsection shall be made from the General
14Fund of the Commonwealth into the county sales, use and
15occupancy tax fund established under section 317.
16Section 319. Adoption of municipal ordinances.
25(2) Delivers a certified copy of the municipal ordinance
26to the board of county commissioners on or before the
27enactment of the county ordinance. A municipality that is
28located in more than one county shall deliver a certified
29copy to the board of county commissioners for each county
30where the municipality is located.
1(b) Subsequent year qualification.--A municipality is
2qualified to receive a disbursement under section 318 if, prior
3to October 1 of any year after the year of initial imposition of
4the tax by a county, the municipality meets the following
8We support the enactment by the county of the county
9sales, use and occupancy tax and strongly urge its
10continuation and intend to accept disbursements of the
11sales, use and occupancy tax collected.
12(2) Delivers a certified copy of the municipal ordinance
13to the board of county commissioners on or before the
14enactment of the county ordinance by October 15 of the year
15in which the ordinance is enacted. A municipality that is
16located in more than one county shall deliver a certified
17copy to the board of county commissioners for each county
18where the municipality is located.
19(c) Nonqualification.--Notwithstanding the provisions of
20subsection (b), a municipality shall not qualify to receive a
21disbursement under section 318 earlier than 36 months after the
22initial date of imposition of the tax unless the municipality:
27Section 320. Allocations.
1(1) Fifty percent of the money allocated to
2municipalities in the county shall be distributed pro rata
3based on the weighted tax revenues for each municipality
4located in the county as a percentage of the total weighted
5tax revenues of the municipalities located in the county. For
6municipalities located in more than one county, the weighted
7tax revenues for the county shall be prorated based upon the
8population of the municipality in each county divided by the
9total population of the municipality.
10(2) Fifty percent of the money allocated to
11municipalities in the county shall be distributed pro rata
12based on the population of each municipality located in the
13county as a percentage of the sum of the population of the
14municipalities located in the county. For municipalities
15located in more than one county, the population of the county
16shall be determined separately for each county where the
17municipality is located on the basis of the municipality's
18population within each county.
19(b) Calculation of weighted tax revenues.--Calculations of
20weighted tax revenues shall be made by the Department of
21Community and Economic Development or a successor agency and
22certified to the State Treasurer based upon information reported
23to the Department of Community and Economic Development or a
24successor agency, subject to review, verification and approval
25by the Department of Community and Economic Development or a
30"Per capita market value." The total market value of the
3"Total tax revenues." Real property tax revenues, revenues
4received by levy of a tax under the Local Tax Enabling Act,
5revenues received by levy of a tax under this act and revenues
6received by levy of a tax under the act of June 23, 1931
7(P.L.932, No.317), known as The Third Class City Code, the act
8of June 24, 1931 (P.L.1206, No.331), known as The First Class
9Township Code, and the act of May 1, 1933 (P.L.103, No.69),
10known as The Second Class Township Code, the act of August 9,
111955 (P.L.323, No.130), known as The County Code, and the act of
12February 1, 1966 (1965 P.L.1656, No.581), known as The Borough
13Code, as applicable to the municipality.
18DISPOSITION OF TAX REVENUES
19Section 501. Sales, use and occupancy tax revenues.
21(1) In the first year of implementation of the tax under
22section 312, no less than 60% of any additional revenues
23received by a county from the tax shall be used to offset the
24revenues lost as a result of the prohibition against
25imposition of the taxes enumerated in section 301(b) and then
26to reduce the county real property tax, first by means of a
27homestead exclusion and then, if the maximum homestead
28exclusion has been attained, by means of reduction in the
29property tax millage rate.
30(2) Revenues received and retained by a county from the
4(1) In the first year of implementation of the taxes
5under section 312, no less than 60% of any additional
6revenues received by a qualified municipality from the tax
7shall be used for the following, separately or in
9(i) To offset the municipal real property tax, first
10by means of a homestead exclusion and then, if the
11maximum homestead exclusion has been attained, by means
12of reduction in the property tax millage rate.
16(2) If, in the first year of implementation, 60% of the
17amount of revenues received by a qualified municipality
18exceeds the sum of the amount of offsets available under
19paragraph (1) for that year, then the excess revenue shall be
20used to offset another municipal tax or fee.
21(3) Revenues received and retained by a qualified
22municipality from the taxes under section 312 shall be
23expended for public purposes of health, safety and welfare as
24provided in the municipality's governing statutes.
25Section 502. Revenue limitation exceptions.
26(a) Waiver.--A board of county commissioners or the
27governing body of a municipality may waive the limitations
28relating to the reduction or elimination of taxes in sections
29501, but only to the degree necessary, in the following cases:
30(1) If an increase in local expenditures is necessary to
17(7) If the increase does not exceed the limitations on
18millage rates for real property under the act of June 23,
191931 (P.L.932, No.317), known as The Third Class City Code,
20the act of June 24, 1931 (P.L.1206, No.331), known as The
21First Class Township Code, and the act of May 1, 1933
22(P.L.103, No.69), known as The Second Class Township Code,
23the act of August 9, 1955 (P.L.323, No.130), known as The
24County Code, and the act of February 1, 1966 (1965 P.L.1656,
25No.581), known as The Borough Code.
26(8) (i) To respond to a Federal or State statute,
27regulation or order adding to or significantly altering
28responsibilities and duties or requiring expenditure of
29funds to the extent not funded by the Federal Government
30or State government.
21(iii) A person shall have standing as a party to a
22proceeding under this subsection as long as the person
23resides within or pays real property taxes to the taxing
24jurisdiction of the county or municipality that is
25subject of the appeal.
28Section 701. (Reserved).
29Section 702. Effective date.
30This act shall take effect immediately.