Regular Session 2017-2018 House Resolution 0291 P.N. 3173

PRIOR PRINTER'S NOS. 1576, 2995

PRINTER'S NO. 3173

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE RESOLUTION

No.

291

Session of

2017

INTRODUCED BY PEIFER, MAHER, MILLARD, DUNBAR, WARD, HEFFLEY,

STAATS, DOWLING, PICKETT, WATSON AND BARBIN, APRIL 26, 2017

AS AMENDED, HOUSE OF REPRESENTATIVES, MARCH 14, 2018

A RESOLUTION

Directing the Department of Revenue, in consultation with the

Department of Community and Economic Development and the

Independent Fiscal Office WITH INPUT FROM COUNTIES,

MUNICIPALITIES AND SCHOOL DISTRICTS IN THIS COMMONWEALTH, to

commence a study to investigate the feasibility and potential

cost savings associated with the replacement of local earned

income tax collection methods by local taxing committees with

a Statewide collection method domiciled in the Department of

Revenue.

WHEREAS, Act 32 of 2008 was signed into law on July 2, 2008,

to restructure the collection of local earned income taxes in

this Commonwealth by reducing the number of local earned income

tax collection districts from approximately 560 to 69; and

WHEREAS, The act, which took effect on a Statewide basis on

January 1, 2012, resulted in the establishment of a single tax

collection district in each county, with the exception of

Allegheny County, which established four tax collection

districts, and Philadelphia County, which was exempt from the

requirements of the act; and

WHEREAS, The Department of Community and Economic Development

was charged with developing uniform forms, notices, reports,

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returns, schedules and codes for school districts,

municipalities and tax collection districts and maintaining

regulatory oversight of the act, but was not provided the time

nor the resources to support the multitude of issues that came

with the enactment of tax collection under the act; and

WHEREAS, The Pennsylvania Legislative Budget and Finance

Committee's report to the General Assembly in December 2016

indicated that:

(1) the act increased earned income tax collections by

an estimated $173 million annually; and

(2) inefficiencies continue to plague the local tax

collection process to the detriment of school districts and

municipalities in this Commonwealth;

and

WHEREAS, INEFFICIENCIES CONTINUE TO PLAGUE THE LOCAL TAX

COLLECTION PROCESS TO THE DETRIMENT OF SCHOOL DISTRICTS AND

MUNICIPALITIES IN THIS COMMONWEALTH; AND

WHEREAS, Streamlining the current system with a State method

of collection of the local earned income tax could eliminate

problems with coordination and inconsistency among local tax

collectors; and

WHEREAS, State collection of local earned income taxes could

maximize the simplicity of collection and increase the

efficiency and fairness of the system while providing

significant relief to school districts, municipalities,

employers and tax preparers; and

WHEREAS, The cost of centralized tax administration could be

more than offset by the elimination of the cost of income tax

administration and collection at the local level; and

WHEREAS, The State collection of the earned income tax could

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create the fairest and most efficient system for the taxpayers

in this Commonwealth; and

WHEREAS, The central administration of State and local income

taxes could provide for a more uniform tax administration and

customer service that results in the taxpayers in this

Commonwealth filing one income tax return; therefore be it

RESOLVED, That the House of Representatives direct the

Department of Revenue, in consultation with the Department of

Community and Economic Development and the Independent Fiscal

Office WITH INPUT FROM COUNTIES, MUNICIPALITIES AND SCHOOL

DISTRICTS IN THIS COMMONWEALTH, to commence a study to

investigate the feasibility and potential cost savings

associated with the replacement of local earned income tax

collection methods by local taxing committees with a Statewide

collection method domiciled in the Department of Revenue; and be

it further

RESOLVED, That the Department of Revenue furnish a report of

its findings and recommendations resulting from the study to the

chairperson and minority chairperson of the Finance Committee of

the Senate and the chairperson and minority chairperson of the

Finance Committee of the House of Representatives no later than

December 31, 2018; and be it further

RESOLVED, That copies of this resolution be transmitted to

the Department of Revenue, the Independent Fiscal Office, the

President pro tempore of the Senate and the Speaker of the House

of Representatives.

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