Regular Session 2023-2024 House Bill 1307 P.N. 1514

PRINTER'S NO. 1514

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1307

Session of

2023

INTRODUCED BY HOHENSTEIN, KHAN, SANCHEZ, WAXMAN AND SOLOMON,

JUNE 12, 2023

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 12, 2023

AN ACT

Amending Titles 53 (Municipalities Generally) and 75 (Vehicles)

of the Pennsylvania Consolidated Statutes, in taxation for

public transportation, further providing for local financial

support; and, in fees, further providing for fee for local

use.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 8602 of Title 53 of the Pennsylvania

Consolidated Statutes is amended to read:

§ 8602. Local financial support.

(a) Imposition.--Notwithstanding any other provision of law,

a county [of the second class] may, at the county's discretion,

by ordinance or resolution, obtain financial support for transit

and transportation 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.

(b) Taxes.--

(1) A county [of the second class] may, by ordinance,

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,

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

tax 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

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resident and nonresident individuals as provided for

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.

(vi) An annual personal property tax on motor

vehicles, to be paid upon initial registration and

renewal, not to exceed 0.5% on the fair market value of

passenger vehicles, trucks with a registered weight of

11,000 pounds and under, motorcycles and recreational

motor home vehicles registered within the county.

(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).

(b.1) 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 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 following apply:

(1) The department shall collect the surtax and remit

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the surtax proceeds quarterly to the appropriate taxing

authority.

(2) The department shall transmit the schedule providing

for the 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.

(b.2) Computation of personal property tax on motor

vehicles.--For purposes of subsection (b)(1)(vi), the fair

market value of a vehicle shall be calculated in a manner

prescribed by the Department of Transportation. A notice of the

calculation shall be transmitted to the Legislative Reference

Bureau for publication in the next available issue of the

Pennsylvania Bulletin.

(b.3) 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 may

promulgate and enforce regulations not inconsistent with the

provisions of this section.

(4) To cover the costs of administration, the department

may retain a sum equal to the costs of administration.

(b.4) Construction.--Except as otherwise inconsistent with

this section, 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).

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(b.5) Grants by counties.--

(1) A county may make annual grants from current

revenues or from revenue derived from taxes levied by the

county under this section to local transportation

organizations to 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 and to enter into

long-term agreements providing for the payment of the costs.

(2) The obligation of a county under an agreement under

paragraph (1) shall not be considered to be a part of the

county's indebtedness, nor shall the obligation be deemed to

impair the status of any indebtedness of the county which

would otherwise be considered as self-sustaining.

(3) Nothing in this subsection shall be construed to

preclude two or more counties from entering into an agreement

to jointly make grants from current revenues or from revenue

derived from taxes levied by a county under this section to a

local transportation organization or to a particular mass

transportation project of a local transportation organization

or to jointly enter into long-term agreements for providing

these types of payments.

(4) A county may make use of the 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). These funds may supplement or match funds

provided by the Motor License Fund, the Multimodal

Transportation Fund or the Liquid Fuels Tax Fund.

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(b.6) Regulations.--The department may promulgate

regulations, including temporary regulations, as may be

necessary and appropriate to administer the provisions of this

section. The following apply:

(1) The department shall transmit any temporary

regulations to the Legislative Reference Bureau for

publication in the next available issue of the Pennsylvania

Bulletin.

(2) Notwithstanding any other provision of law,

regulations promulgated by the department during the two

years following the effective date of this paragraph shall be

deemed temporary regulations that expire no later than three

years following the effective date of this paragraph or upon

promulgation of final regulations, whichever occurs first.

(3) Temporary regulations under this subsection shall be

exempt from the following:

(i) Sections 201, 202, 203, 204 and 205 of the act

of July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(ii) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

"county of the second class" shall not include a county of the

second class A.] 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." Any of the following:

(1) A county of the first class.

(2) A county of the second class.

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(3) A county of the second class A.

(4) A county of the third class with a population of at

least 525,000 but less than 540,000, based on the 2020

Federal decennial census.

"Department." The Department of Revenue of the Commonwealth.

Section 2. 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, a county of the second

class, a county of the second class A or a county of the third

class with a population above 525,000 and less than 540,000

based on the 2020 Federal decennial census may, in its

discretion, by ordinance, impose a fee of $5 in addition to the

fee in subsection (b) for each nonexempt vehicle registered to

an address located in the county. A county of the first class, a

county of the second class, a county of the second class A or a

county of the third class with a population above 525,000 and

less than 540,000 based on the 2020 Federal decennial census

shall notify the department of the passage of the ordinance 90

days prior to the effective date of the ordinance.

* * *

Section 3. Nothing in this act shall be applied, interpreted

or constructed as modifying State operating or capital funding

formula allocations, or corresponding local match requirements,

for local transportation organizations currently provided for

under 74 Pa.C.S. Pt. II.

Section 4. This act shall take effect in 120 days.

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