PRINTER'S NO. 267
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
277
Session of
2017
INTRODUCED BY GORDNER, FOLMER, BREWSTER, SCHWANK, COSTA AND
RAFFERTY, JANUARY 31, 2017
REFERRED TO FINANCE, JANUARY 31, 2017
AN ACT
Amending the act of December 31, 1965 (P.L.1257, No.511),
entitled "An act empowering cities of the second class,
cities of the second class A, cities of the third class,
boroughs, towns, townships of the first class, townships of
the second class, school districts of the second class,
school districts of the third class and school districts of
the fourth class including independent school districts, to
levy, assess, collect or to provide for the levying,
assessment and collection of certain taxes subject to maximum
limitations for general revenue purposes; authorizing the
establishment of bureaus and the appointment and compensation
of officers, agencies and employes to assess and collect such
taxes; providing for joint collection of certain taxes,
prescribing certain definitions and other provisions for
taxes levied and assessed upon earned income, providing for
annual audits and for collection of delinquent taxes, and
permitting and requiring penalties to be imposed and
enforced, including penalties for disclosure of confidential
information, providing an appeal from the ordinance or
resolution levying such taxes to the court of quarter
sessions and to the Supreme Court and Superior Court," in
local taxes, further providing for limitation on assessment;
and, in consolidated collection of local income taxes,
further providing for powers and duties of tax officer.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 319 and 509(h) of the act of December
31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
Act, are amended to read:
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Section 319. Limitation on Assessment.--[No] (a) Except as
otherwise provided in subsection (b), no assessment may be made
of any tax imposed under this chapter more than five years after
the date on which such tax should have been paid [except where a
fraudulent return or no return has been filed].
(b) Where a fraudulent return or no return has been filed,
no assessment may be made of any tax imposed under this chapter
more than ten years after the date on which such tax should have
been paid.
Section 509. Powers and duties of tax officer.
* * *
(h) Actions for collection of income taxes.--The tax officer
may file an action in the name of a political subdivision within
the tax collection district for the recovery of income taxes due
to the political subdivision and unpaid. Nothing in this
subsection shall affect the authority of a political subdivision
to file an action in its own name for collection of income taxes
under this chapter. This subsection shall not be construed to
limit a tax officer, a tax collection district or political
subdivision from recovering delinquent income taxes by any other
means provided by this act. Actions for collection of income
taxes shall be subject to the following:
(1) Except as set forth in paragraph (2) or (4), an
action brought to recover income taxes must be commenced
within three years of the later of the date:
(i) the income taxes are due;
(ii) the declaration or return has been filed; or
(iii) of a redetermination of compensation or net
profits by the Department of Revenue.
(2) If there is substantial understatement of income tax
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liability of 25% or more and there is no fraud, an action
must be commenced within six years.
(3) Except as set forth in paragraph (4)(ii), (iii) or
(iv), an action by a tax officer for recovery of an erroneous
refund must be commenced as follows:
(i) Except as set forth in subparagraph (ii), within
two years after making the refund.
(ii) If it appears that any part of the refund was
induced by fraud or misrepresentation of material fact,
within five years after making the refund.
(4) [There is no limitation of action] An action by a
tax officer must be commenced within ten years of the date on
which the tax should have been paid if any of the following
apply:
(i) A taxpayer fails to file a declaration or return
required under this act.
(ii) An examination of a declaration or return or of
other evidence in the possession of the tax officer
relating to the declaration or return reveals a
fraudulent evasion of income taxes.
(iii) An employer has deducted income taxes under
section 512 and has failed to pay the amount deducted to
the tax officer.
(iv) An employer has intentionally failed to make
deductions required by this act.
* * *
Section 2. This act shall take effect in 60 days.
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