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A05772
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
291
Session of
2017
INTRODUCED BY PEIFER, MAHER, MILLARD, DUNBAR, WARD, HEFFLEY,
STAATS, DOWLING, PICKETT AND WATSON, APRIL 26, 2017
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, FEBRUARY 6, 2018
A RESOLUTION
Directing the Department of Community and Economic Development,
in consultation with the Department of Revenue 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
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was charged with developing uniform forms, notices, reports,
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, 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
create the fairest and most efficient system for the taxpayers
in this Commonwealth; and
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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 Community and Economic Development REVENUE, in
consultation with the Department of Revenue 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 Community and Economic
Development 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, 2017 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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