PRINTER'S NO. 1685
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1355
Session of
2017
INTRODUCED BY GROVE, MILLARD, BOBACK, HELM, KAUFFMAN, PICKETT,
STAATS, BERNSTINE, SANKEY, PHILLIPS-HILL, ROTHMAN, B. MILLER
AND MOUL, MAY 9, 2017
REFERRED TO COMMITTEE ON FINANCE, MAY 9, 2017
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in personal income tax, providing for tax
reduction.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
Section 302.3. Tax Reduction.--(a) The following apply:
(1) Except as provided in paragraph (2), commencing with
fiscal year 2020-2021, in a fiscal year in which the amount of
selected actual General Fund receipts less increases in payments
to the Public School Employees' Retirement System and increases
in the costs of the Medicaid program from that fiscal year
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exceeds the selected actual General Fund receipts for the
immediately preceding fiscal year by more than three per cent,
the Department of Revenue shall certify the excess amount, in
dollars. Upon certifying the amount, the Secretary of Revenue
shall compute the income tax rate reductions to go into effect
for the next tax year that would reduce by the certified amount,
in dollars, the tax rates during the next tax year according to
the provisions of this section. The Secretary of Revenue shall
compute income tax reductions so that any excess amount is
applied such that an equal number of dollars are used to lower
all personal income tax rates under section 302. In a
computation by the Secretary of Revenue under this subsection
the resulting income tax rate shall be rounded down to the
nearest one hundredth per cent. Based on those determinations,
the Secretary of Revenue shall reduce personal income tax rates
under section 302 as required by this subsection.
(2) In a fiscal year in which the amount of selected actual
General Fund receipts less increases in payments to the State
Employees' Retirement System and increases in the costs of the
Medicaid program for that fiscal year are one hundred three per
cent or less than the selected actual General Fund receipts from
the immediately preceding fiscal year, the Secretary of the
Budget shall certify that amount and fact to the Secretary of
Revenue. Upon receipt of that amount and fact, the Secretary of
Revenue shall not make any adjustment to the income tax rates
for that tax year.
(b) The Secretary of Revenue shall report a reduction in
income tax rates prescribed under this section to the Governor,
the General Assembly and the Independent Fiscal Office and shall
cause notice of the reduction to be published in the
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Pennsylvania Bulletin prior to September 15 of the calendar year
immediately preceding the tax year in which the reduction takes
effect.
(c) As used in this section, "selected actual General Fund
receipts" means receipts from all of the following taxes and
fees:
(1) Personal income tax under section 302.
(2) Sales and use tax under Article II.
(3) Corporate net income tax under Article IV.
(4) Capital stock franchise tax under Article VI.
(5) Bank and trust company shares tax under Article VII.
(6) Cigarette tax under Article XII.
(7) Tobacco products tax under Article XII-A.
(8) Malt beverage tax under Article XX.
(9) The liquor tax under the act of June 9, 1936 (1st
Sp.Sess., P.L.13, No.4), entitled "An act imposing an emergency
State tax on liquor, as herein defined, sold by the Pennsylvania
Liquor Control Board; providing for the collection and payment
of such tax; and imposing duties upon the Department of Revenue
and the Pennsylvania Liquor Control Board."
Section 2. This act shall take effect in 60 days.
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