PRINTER'S NO. 884
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
902
Session of
2023
INTRODUCED BY WAXMAN, McANDREW, SIEGEL, KHAN, KINSEY,
HOHENSTEIN, HILL-EVANS, CIRESI, SANCHEZ, SOLOMON, RABB AND
FIEDLER, APRIL 12, 2023
REFERRED TO COMMITTEE ON TRANSPORTATION, APRIL 12, 2023
AN ACT
Amending Titles 53 (Municipalities Generally) and 75 (Vehicles)
of the Pennsylvania Consolidated Statutes, in transportation
network companies, further providing for impoundment of
vehicles, repealing provisions relating to assessment and
providing for payment of assessment; in taxation for public
transportation, further providing for local financial
support; in fees, further providing for fee for local use;
and imposing duties on the Department of Revenue and the
Department of Transportation.
The General Assembly finds and declares as follows:
(1) The economy and future competitiveness of
Pennsylvania rely upon a comprehensive transportation network
to meet the demands of the 21st century. The mechanisms
currently available to invest in the infrastructure of this
Commonwealth have not kept pace with needs and new
opportunities.
(2) Legislative action is needed to enable new county-
level investment options to advance transportation projects
that drive local priorities. The ability to generate new
local funding through modest fees or surcharges will be a
valuable tool in leveraging Federal and State resources to
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accelerate local transit, highway, bridge and other
transportation projects that promote economic growth.
(3) At current levels, Pennsylvania's capital
investments are far below competitor states and regions.
Pennsylvania must position itself to be competitive in the
Federal grant process to tap into billions in new Federal
investment available in the Infrastructure Investment and
Jobs Act (Public Law 117-58, 135 Stat. 429).
(4) Recognition and furtherance of all these elements
are essential to promoting the health, safety and welfare of
the residents of this Commonwealth.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 57A20(c)(3)(v) of Title 53 of the
Pennsylvania Consolidated Statutes is amended to read:
§ 57A20. Impoundment of vehicles.
* * *
(c) Public auction.--The following shall apply:
* * *
(3) The authority shall apply the proceeds from the sale
of all confiscated property in the following order:
* * *
[(v) When not claimed by any registered lienholder
or registered owner within one year of the auction date,
to the restricted account provided for under section
57A22 (relating to assessment).]
* * *
Section 2. Section 57A22 of Title 53 is repealed:
[§ 57A22. Assessment.
The following shall apply:
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(1) A transportation network company operating in a city
of the first class shall pay to the authority an assessment
amount equal to 1.4% of the gross receipts from all fares
charged to all passengers for prearranged rides that
originate in the city. The amount assessed shall be remitted
on a quarterly basis and deposited into a restricted receipts
account in the State Treasury. The State Treasurer shall
distribute 66.67% to a school district of the first class and
33.33% to the parking authority on a quarterly basis. This
section shall expire December 31, 2019.
(2) If an assessment is imposed after December 31, 2019,
the percentage amount may not be less than the percentage
amount imposed under paragraph (1).]
Section 3. Title 53 is amended by adding a section to read:
§ 57A23. Payment of assessment.
(a) Requirements.--A transportation network company
operating in a county shall pay an assessment amount equal to
2.5% of the gross receipts from all fares charged to all
passengers for prearranged rides that originate in the county.
The following apply:
(1) The amount assessed shall be remitted on a quarterly
basis and deposited into a restricted receipts account in the
State Treasury.
(2) For money collected in a county of the first class,
the State Treasurer shall distribute 66.67% to a school
district of the first class and 33.33% to the parking
authority on a quarterly basis.
(3) For money collected in a county that is not a county
of the first class, the State Treasurer shall distribute the
money directly to the county on a quarterly basis.
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(b) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"County." As defined in section 8602(j) (relating to local
financial support).
Section 4. Section 8602 of Title 53 is amended to read:
§ 8602. Local financial support.
(a) Imposition.--
(1) Notwithstanding any other provision of law, a county
[of the second class] may, by ordinance or resolution, obtain
financial support for transit systems and transportation
infrastructure by imposing one or more of the taxes under
subsection (b). Money obtained from the imposition shall be
deposited into a restricted account of the county.
(2) Only a county of the second class may impose any of
the taxes specified under subsection (b)(1)(i) and (ii).
(b) Taxes.--
(1) A county [of the second class may, by ordinance,]
may impose any of the following taxes:
(i) A tax on the sale at retail of liquor and malt
and brewed beverages within the county. The ordinance
shall be modeled on the act of June 10, 1971 (P.L.153,
No.7), known as the First Class School District Liquor
Sales Tax Act of 1971, and the rate of tax authorized
under this subparagraph may not exceed the rate
established under that act.
(ii) An excise tax on each renting of a rental
vehicle in the county. The rate of tax authorized under
this subparagraph may not exceed the rate established
under section 2301(e) of the act of March 4, 1971 (P.L.6,
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No.2), known as the Tax Reform Code of 1971. As used in
this subparagraph, the term "rental vehicle" has the
meaning given to it in section 1601-A of the Tax Reform
Code of 1971.
(iii) A tax upon a transfer of real property or an
interest in real property within the limits of the
county, regardless of where the instruments making the
transfers are made, executed or delivered or where the
actual settlements on the transfer take place, to the
extent that the transactions are subject to the tax
imposed by Article XI-C of the Tax Reform Code of 1971. A
taxed imposed under this subparagraph shall not exceed
0.5% of rate limitations provided by sections 307, 311
and 320 of the act of December 31, 1965 (P.L.1257,
No.511), known as The Local Tax Enabling Act.
(iv) In addition to the tax imposed under Article
III of the Tax Reform Code of 1971, a surtax not to
exceed 0.2% of the tax imposed on the taxable income of
resident and nonresident individuals as provided for
under Article III of the Tax Reform Code of 1971. The
surtax shall be in addition to any tax imposed under
Article III of the Tax Reform Code of 1971.
(v) In addition to the tax imposed under Article II
of the Tax Reform Code of 1971, a surtax equal to 0.25%
imposed on the purchase price of tangible personal
property and services subject to taxation under Article
II of the Tax Reform Code of 1971. The surtax shall be in
addition to any tax imposed under Article II of the Tax
Reform Code of 1971.
(vi) An annual personal property tax on motor
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vehicles equal to 0.25% on the fair market value of the
following, which are registered in the county:
(A) Passenger vehicles.
(B) Trucks with a registered weight of 11,000
pounds or less.
(C) Motorcycles.
(D) Recreational vehicles, including motor
homes.
(vii) A local services tax in accordance with
Chapter 3 of The Local Tax Enabling Act, at a rate not to
exceed $3 per week, or $156 per year. A county levying
the local services tax shall, by ordinance, exempt any
person from the local services tax whose total earned
income and net profits from all sources within the county
are less than 200% of the Federal poverty guidelines, as
published in the Federal Register for the calendar year
in which the local services tax is levied.
(2) (Reserved).
[(c) Definition.--For purposes of this section, the term
"county of the second class" shall not include a county of the
second class A.]
(d) Computation of sales and use tax.--Within 30 days of the
notification of a county of the adoption of a tax under
subsection (b)(1)(v), the Department of Revenue shall establish
a combined schedule for the computation of the State sales and
use tax and the State sales and use surtax as established under
subsection (b)(1)(v). The Department of Revenue shall:
(1) Collect the surtax and remit the surtax proceeds
quarterly to the appropriate taxing authority.
(2) Transmit notice of the schedule providing for the
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combined computation of the State sales and use tax and the
State sales and use surtax to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin.
(e) Computation of personal property tax on motor
vehicles.--The fair market value of the vehicles specified under
subsection (b)(1)(vi) shall be calculated in a manner prescribed
by the Department of Transportation, which shall transmit notice
of the manner of calculation to the Legislative Reference Bureau
for publication in the next available issue of the Pennsylvania
Bulletin.
(f) Administration.--
(1) The taxes authorized under subsection (b)(1)(iii)
and (iv) shall be administered, collected and enforced under
The Local Tax Enabling Act.
(2) The tax authorized under subsection (b)(1)(v) shall
be administered, collected and enforced under the Tax Reform
Code of 1971.
(3) In administering this subsection, the Department of
Revenue may promulgate and enforce regulations not
inconsistent with the provisions of this section.
(4) To cover the costs of administration of this
section, the Department of Revenue may retain a sum equal to
the costs of administration.
(g) Construction.--The provisions of Articles II, III and
XI-C of the Tax Reform Code of 1971 shall apply to the taxes
imposed under subsection (b), except as inconsistent with this
section.
(h) Grants by counties.--
(1) A county may make annual grants from current
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revenues or from revenue derived from taxes levied by the
county under this section to local transportation
organizations to:
(i) Assist in defraying the costs of operations,
maintenance and debt service of a local transportation
organization or of a particular mass transportation
project of a local transportation organization.
(ii) Enter into long-term agreements providing for
the payments under subparagraph (i).
(2) The obligation of a county under any agreement
under this section shall not be considered to be part of the
county's indebtedness.
(3) An obligation under any agreement under this section
shall not be deemed to impair the status of any indebtedness
of the county which would otherwise be considered as self-
sustaining.
(4) Nothing in this subsection shall be construed to
preclude two or more counties from entering into an agreement
to jointly make grants or jointly enter into long-term
agreements in accordance with paragraph (1).
(5) A county may make use of money from current revenues
or from revenue derived from taxes levied by the county under
this section for Commonwealth, county or municipal
transportation infrastructure purposes described under 75
Pa.C.S. § 9010(b)(2)(i) (relating to disposition and use of
tax). The money may supplement or match money provided by the
Motor License Fund, the Multimodal Transportation Fund or the
Liquid Fuels Tax Fund.
(i) Rules and regulations.--
(1) The Department of Revenue and the Department of
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Transportation may each promulgate or adopt rules and
regulations as may be necessary and appropriate to carry out
the provisions of this section.
(2) Notwithstanding any other provision of law, in order
to facilitate the prompt implementation of the amendment of
this section, the Department of Revenue and the Department of
Transportation may each issue temporary regulations. The
following apply:
(i) The Department of Revenue and the Department of
Transportation must issue the temporary regulations
within two years of the effective date of this
subsection. Regulations adopted after this two-year
period shall be promulgated as provided by statute.
(ii) Notice of the temporary regulations shall be
transmitted to the Legislative Reference Bureau for
publication in the next available issue of the
Pennsylvania Bulletin.
(iii) The Department of Revenue and the Department
of Transportation shall each post their temporary
regulations on their publicly accessible Internet
websites.
(iv) The temporary regulations shall expire no later
than three years following publication of the temporary
regulations in the Pennsylvania Bulletin.
(v) The temporary regulations under this paragraph
shall be exempt from the following:
(A) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code
of 1929.
(B) Sections 201, 202, 203, 204 and 205 of the
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act of July 31, 1968 (P.L.769, No.240), referred to
as the Commonwealth Documents Law.
(C) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(D) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(3) Prior to the expiration of the temporary
regulations, the Department of Revenue and the Department of
Transportation shall each propose for approval permanent
regulations as provided by statute. The proposed permanent
regulations shall be consistent with this section and may be
the same as the temporary regulations.
(j) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"County." A county of the first class, second class, second
class A or third class with a population of more than 525,000
but less than 540,000 based on the 2020 Federal decennial
census.
Section 5. Section 1935 of Title 75 is amended by adding a
subsection to read:
§ 1935. Fee for local use.
* * *
(b.1) Urban and suburban counties.--Beginning after December
31, 2023, a county of the first class, second class, second
class A and third class with a population of more than 525,000
but less than 540,000 based on the 2020 Federal decennial census
may, by ordinance, impose a fee of $5 in addition to the fee in
subsection (b) for each nonexempt vehicle registered to an
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address located in the county. A county shall notify the
department of the passage of the ordinance 90 days prior to the
effective date of the ordinance.
* * *
Section 6. This act shall take effect in 120 days.
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