HOUSE AMENDED
PRIOR PRINTER'S NOS. 143, 708, 784, PRINTER'S NO. 1401
809, 1048
No. 157 Session of 2005
INTRODUCED BY ARMSTRONG, VANCE, GORDNER, THOMPSON, PILEGGI,
EARLL, COSTA, KASUNIC, ORIE, LOGAN, ROBBINS, WONDERLING,
BOSCOLA, M. WHITE, WAUGH, WENGER, FUMO, PIPPY AND D. WHITE,
FEBRUARY 2, 2005
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
DECEMBER 5, 2005
AN ACT
1 Amending the act of December 31, 1965 (P.L.1257, No.511), <--
2 entitled "An act empowering cities of the second class,
3 cities of the second class A, cities of the third class,
4 boroughs, towns, townships of the first class, townships of
5 the second class, school districts of the second class,
6 school districts of the third class and school districts of
7 the fourth class including independent school districts, to
8 levy, assess, collect or to provide for the levying,
9 assessment and collection of certain taxes subject to maximum
10 limitations for general revenue purposes; authorizing the
11 establishment of bureaus and the appointment and compensation
12 of officers, agencies and employes to assess and collect such
13 taxes; providing for joint collection of certain taxes,
14 prescribing certain definitions and other provisions for
15 taxes levied and assessed upon earned income, providing for
16 annual audits and for collection of delinquent taxes, and
17 permitting and requiring penalties to be imposed and
18 enforced, including penalties for disclosure of confidential
19 information, providing an appeal from the ordinance or
20 resolution levying such taxes to the court of quarter
21 sessions and to the Supreme Court and Superior Court,"
22 further providing for delegation of taxing powers and <--
23 restrictions thereon; and making editorial changes. THE <--
24 DELEGATION OF TAXING POWERS AND RESTRICTIONS THEREON;
25 REPEALING PROVISIONS RELATING TO CONTINUATION OF OCCUPATIONAL
26 PRIVILEGE TAXES; AND MAKING EDITORIAL CHANGES.
27 AMENDING THE ACT OF DECEMBER 31, 1965 (P.L.1257, NO.511), <--
28 ENTITLED "AN ACT EMPOWERING CITIES OF THE SECOND CLASS,
29 CITIES OF THE SECOND CLASS A, CITIES OF THE THIRD CLASS,
1 BOROUGHS, TOWNS, TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF
2 THE SECOND CLASS, SCHOOL DISTRICTS OF THE SECOND CLASS,
3 SCHOOL DISTRICTS OF THE THIRD CLASS AND SCHOOL DISTRICTS OF
4 THE FOURTH CLASS INCLUDING INDEPENDENT SCHOOL DISTRICTS, TO
5 LEVY, ASSESS, COLLECT OR TO PROVIDE FOR THE LEVYING,
6 ASSESSMENT AND COLLECTION OF CERTAIN TAXES SUBJECT TO MAXIMUM
7 LIMITATIONS FOR GENERAL REVENUE PURPOSES; AUTHORIZING THE
8 ESTABLISHMENT OF BUREAUS AND THE APPOINTMENT AND COMPENSATION
9 OF OFFICERS, AGENCIES AND EMPLOYES TO ASSESS AND COLLECT SUCH
10 TAXES; PROVIDING FOR JOINT COLLECTION OF CERTAIN TAXES,
11 PRESCRIBING CERTAIN DEFINITIONS AND OTHER PROVISIONS FOR
12 TAXES LEVIED AND ASSESSED UPON EARNED INCOME, PROVIDING FOR
13 ANNUAL AUDITS AND FOR COLLECTION OF DELINQUENT TAXES, AND
14 PERMITTING AND REQUIRING PENALTIES TO BE IMPOSED AND
15 ENFORCED, INCLUDING PENALTIES FOR DISCLOSURE OF CONFIDENTIAL
16 INFORMATION, PROVIDING AN APPEAL FROM THE ORDINANCE OR
17 RESOLUTION LEVYING SUCH TAXES TO THE COURT OF QUARTER
18 SESSIONS AND TO THE SUPREME COURT AND SUPERIOR COURT,"
19 FURTHER PROVIDING FOR DELEGATION OF TAXING POWERS AND
20 RESTRICTIONS THEREON; PROVIDING FOR LOCAL SERVICES TAXES;
21 REPEALING PROVISIONS RELATING TO EMERGENCY AND MUNICIPAL
22 SERVICES TAXES AND TO CONTINUATION OF OCCUPATIONAL PRIVILEGE
23 TAXES; AND MAKING EDITORIAL CHANGES.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 2 of the act of December 31, 1965 <--
27 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
28 December 1, 2004 (P.L.1729, No.222), is amended to read:
29 Section 2. Delegation of Taxing Powers and Restrictions
30 Thereon.--The duly constituted authorities of the following
31 political subdivisions, cities of the second class, cities of
32 the second class A, cities of the third class, boroughs, towns,
33 townships of the first class, townships of the second class,
34 school districts of the second class, school districts of the
35 third class, and school districts of the fourth class, in all
36 cases including independent school districts, may, in their
37 discretion, by ordinance or resolution, for general revenue
38 purposes, levy, assess and collect or provide for the levying,
39 assessment and collection of such taxes as they shall determine
40 on persons, transactions, occupations, privileges, subjects and
41 personal property within the limits of such political
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1 subdivisions, and upon the transfer of real property, or of any
2 interest in real property, situate within the political
3 subdivision levying and assessing the tax, regardless of where
4 the instruments making the transfers are made, executed or
5 delivered or where the actual settlements on such transfer take
6 place. The taxing authority may provide that the transferee
7 shall remain liable for any unpaid realty transfer taxes imposed
8 by virtue of this act. Each local taxing authority may, by
9 ordinance or resolution, exempt any person whose total income
10 from all sources is less than twelve thousand dollars ($12,000)
11 per annum from the per capita or similar head tax, occupation
12 tax [and emergency and municipal services tax,] or earned income
13 tax, or any portion thereof, and may adopt regulations for the
14 processing of claims for exemptions. Each local taxing authority
15 shall by ordinance or resolution exempt any person whose total
16 income from all sources is less than twelve thousand dollars
17 ($12,000) per annum from the emergency and municipal services
18 tax. Such local authorities shall not have authority by virtue
19 of this act:
20 (1) To levy, assess and collect or provide for the levying,
21 assessment and collection of any tax on the transfer of real
22 property when the transfer is by will or mortgage or the
23 intestate laws of this Commonwealth or on a transfer by the
24 owner of previously occupied residential premises to a builder
25 of new residential premises when such previously occupied
26 residential premises is taken in trade by such builder as part
27 of the consideration from the purchaser of a new previously
28 unoccupied single family residential premises or on a transfer
29 between corporations operating housing projects pursuant to the
30 housing and redevelopment assistance law and the shareholders
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1 thereof, or on a transfer between nonprofit industrial
2 development agencies and industrial corporations purchasing from
3 them, or on transfer to or from nonprofit industrial development
4 agencies, or on a transfer between husband and wife, or on a
5 transfer between persons who were previously husband and wife
6 but who have since been divorced; provided such transfer is made
7 within three months of the date of the granting of the final
8 decree in divorce, or the decree of equitable distribution of
9 marital property, whichever is later, and the property or
10 interest therein, subject to such transfer, was acquired by the
11 husband and wife, or husband or wife, prior to the granting of
12 the final decree in divorce, or on a transfer between parent and
13 child or the spouse of such a child, or between parent and
14 trustee for the benefit of a child or the spouse of such child,
15 or on a transfer between a grandparent and grandchild or the
16 spouse of such grandchild, or on a transfer between brother and
17 sister or brother and brother or sister and sister or the spouse
18 of such brother or sister, or on a transfer to a conservancy
19 which possesses a tax-exempt status pursuant to section
20 501(c)(3) of the Internal Revenue Code, and which has as its
21 primary purpose the preservation of land for historic,
22 recreational, scenic, agricultural or open space opportunities,
23 by and between a principal and straw party for the purpose of
24 placing a mortgage or ground rent upon the premises, or on a
25 correctional deed without consideration, or on a transfer to the
26 United States, the Commonwealth of Pennsylvania, or to any of
27 their instrumentalities, agencies or political subdivisions, by
28 gift, dedication or deed in lieu of condemnation, or deed of
29 confirmation in connection with condemnation proceedings, or
30 reconveyance by the condemning body of the property condemned to
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1 the owner of record at the time of condemnation which
2 reconveyance may include property line adjustments provided said
3 reconveyance is made within one year from the date of
4 condemnation, leases, or on a conveyance to a trustee under a
5 recorded trust agreement for the express purpose of holding
6 title in trust as security for a debt contracted at the time of
7 the conveyance under which the trustee is not the lender and
8 requiring the trustee to make reconveyance to the grantor-
9 borrower upon the repayment of the debt, or a transfer within a
10 family from a sole proprietor family member to a family farm
11 corporation, or in any sheriff sale instituted by a mortgagee in
12 which the purchaser of said sheriff sale is the mortgagee who
13 instituted said sale, or on a privilege, transaction, subject,
14 occupation or personal property which is now or does hereafter
15 become subject to a State tax or license fee;
16 (2) To levy, assess or collect a tax on the gross receipts
17 from utility service of any person or company whose rates and
18 services are fixed and regulated by the Pennsylvania Public
19 Utility Commission or on any public utility services rendered by
20 any such person or company or on any privilege or transaction
21 involving the rendering of any such public utility service;
22 (3) Except on sales of admission to places of amusement or
23 on sales or other transfers of title or possession of property,
24 to levy, assess or collect a tax on the privilege of employing
25 such tangible property as is now or does hereafter become
26 subject to a State tax; and for the purposes of this clause,
27 real property rented for camping purposes shall not be
28 considered a place of amusement.
29 (4) To levy, assess and collect a tax on goods and articles
30 manufactured in such political subdivision or on the by-products
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1 of manufacture, or on minerals, timber, natural resources and
2 farm products produced in such political subdivision or on the
3 preparation or processing thereof for use or market, or on any
4 privilege, act or transaction related to the business of
5 manufacturing, the production, preparation or processing of
6 minerals, timber and natural resources, or farm products, by
7 manufacturers, by producers and by farmers with respect to the
8 goods, articles and products of their own manufacture,
9 production or growth, or on any privilege, act or transaction
10 relating to the business of processing by-products of
11 manufacture, or on the transportation, loading, unloading or
12 dumping or storage of such goods, articles, products or by-
13 products; except that local authorities may levy, assess and
14 collect an emergency and municipal services tax and taxes on the
15 occupation, per capita and earned income or net profits of
16 natural persons engaged in the above activities whether doing
17 business as individual proprietorship or as members of
18 partnerships or other associations;
19 (5) To levy, assess or collect a tax on salaries, wages,
20 commissions, compensation and earned income of nonresidents of
21 the political subdivisions: Provided, That this limitation (5)
22 shall apply only to school districts of the second, third and
23 fourth classes;
24 (6) To levy, assess or collect a tax on personal property
25 subject to taxation by counties or on personal property owned by
26 persons, associations and corporations specifically exempted by
27 law from taxation under the county personal property tax law:
28 Provided, That this limitation (6) shall not apply to cities of
29 the second class;
30 (7) To levy, assess or collect a tax on membership in or
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1 membership dues, fees or assessment of charitable, religious,
2 beneficial or nonprofit organizations including but not limited
3 to sportsmens, recreational, golf and tennis clubs, girl and boy
4 scout troops and councils;
5 (8) To levy, assess or collect any tax on a mobilehome or
6 house trailer subject to a real property tax unless the same tax
7 is levied, assessed and collected on other real property in the
8 political subdivision.
9 (9) To levy, assess or collect any tax on individuals for
10 the privilege of engaging in an occupation (emergency and
11 municipal services tax) except that such a tax may be levied,
12 assessed and collected only by the political subdivision of the
13 taxpayer's place of employment.
14 Payment of any emergency and municipal services tax to any
15 political subdivision by any person pursuant to an ordinance or
16 resolution passed or adopted under the authority of this act
17 shall be no [less than ten dollars ($10)] more than twenty-five
18 percent of the tax levied on each person for any quarter in a
19 calendar year nor more than fifty-two dollars ($52) on each
20 person for each calendar year[.], irrespective of the number of
21 political subdivisions within which such person may be employed.
22 Notwithstanding any other provision of law, a taxpayer shall not
23 be liable for an amount of tax in excess of the tax authorized
24 to be collected under this clause. If a municipality does not
25 levy the emergency and municipal services tax, the school
26 district which includes such municipality boundaries, in whole
27 or in part, may levy the emergency and municipal services tax
28 and collect no more than ten dollars ($10) on each person for
29 each calendar year. If a municipality levies the emergency and
30 municipal services tax and the school district levies such tax,
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1 the school district may only collect five dollars ($5) on each
2 person for each calendar year; and, subject to the quarterly
3 twenty-five percent limitation of this paragraph, this five
4 dollars ($5) per person shall be paid to the school district
5 from the funds levied and collected by the municipality.
6 The situs of such tax shall be the place of employment, but,
7 in the event a person is engaged in more than one occupation, or
8 an occupation which requires his working in more than one
9 political subdivision during the calendar year, the priority of
10 claim to collect such emergency and municipal services tax shall
11 be in the following order: first, the political subdivision in
12 which a person maintains his principal office or is principally
13 employed; second, the political subdivision in which the person
14 resides and works, if such a tax is levied by that political
15 subdivision; third, the political subdivision in which a person
16 is employed and which imposes the tax nearest in miles to the
17 person's home. The place of employment shall be determined as of
18 the day the taxpayer first becomes subject to the tax [during
19 the calendar year.
20 It is the intent of this provision that no person shall pay
21 more than fifty-two dollars ($52) in any calendar year as an
22 emergency and municipal services tax irrespective of the number
23 of political subdivisions within which such person may be
24 employed within any given calendar year.] within a political
25 subdivision.
26 In case of dispute, a tax receipt of the [taxing authority]
27 political subdivision for that calendar year declaring that the
28 taxpayer has made prior payment which constitutes prima facie
29 certification of payment to all other political subdivisions.
30 (10) To levy, assess or collect a tax on admissions to
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1 motion picture theatres: Provided, That this limitation (10)
2 shall not apply to cities of the second class.
3 (11) To levy, assess or collect a tax on the construction of
4 or improvement to residential dwellings or upon the application
5 for or issuance of permits for the construction of or
6 improvements to residential dwellings.
7 (12) To levy, assess and collect a mercantile or business
8 privilege tax on gross receipts or part thereof which are: (i)
9 discounts allowed to purchasers as cash discounts for prompt
10 payment of their bills; (ii) charges advanced by a seller for
11 freight, delivery or other transportation for the purchaser in
12 accordance with the terms of a contract of sale; (iii) received
13 upon the sale of an article of personal property which was
14 acquired by the seller as a trade-in to the extent that the
15 gross receipts in the sale of the article taken in trade does
16 not exceed the amount of trade-in allowance made in acquiring
17 such article; (iv) refunds, credits or allowances given to a
18 purchaser on account of defects in goods sold or merchandise
19 returned; (v) Pennsylvania sales tax; (vi) based on the value of
20 exchanges or transfers between one seller and another seller who
21 transfers property with the understanding that property of an
22 identical description will be returned at a subsequent date;
23 however, when sellers engaged in similar lines of business
24 exchange property and one of them makes payment to the other in
25 addition to the property exchanged, the additional payment
26 received may be included in the gross receipts of the seller
27 receiving such additional cash payments; (vii) of sellers from
28 sales to other sellers in the same line where the seller
29 transfers the title or possession at the same price for which
30 the seller acquired the merchandise; or (viii) transfers between
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1 one department, branch or division of a corporation or other
2 business entity of goods, wares and merchandise to another
3 department, branch or division of the same corporation or
4 business entity and which are recorded on the books to reflect
5 such interdepartmental transactions.
6 (13) To levy, assess or collect an amusement or admissions
7 tax on membership, membership dues, fees or assessments,
8 donations, contributions or monetary charges of any character
9 whatsoever paid by the general public, or a limited or selected
10 number thereof, for such persons to enter into any place,
11 indoors or outdoors, to engage in any activities, the
12 predominant purpose or nature of which is exercise, fitness,
13 health maintenance, improvement or rehabilitation, health or
14 nutrition education, or weight control.
15 (14) Except by cities of the second class, to levy, assess
16 or collect a tax on payroll amounts generated as a result of
17 business activity.
18 (15) Except by cities of the second class in which a sports
19 stadium or arena that has received public funds in connection
20 with its construction or maintenance is located, to levy, assess
21 and collect a publicly funded facility usage fee upon those
22 nonresident individuals who use such facility to engage in an
23 athletic event or otherwise render a performance for which they
24 receive remuneration.
25 (16) To levy, assess or collect an amusement or admissions
26 tax on the charge imposed upon a patron for the sale of
27 admission to or for the privilege of admission to a bowling
28 alley or bowling lane to engage in one or more games of bowling.
29 Section 2. Section 9 of the act, amended December 12, 1968
30 (P.L.1203, No.377), is amended to read:
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1 Section 9. Register for Earned Income and [Occupational
2 Privilege] Emergency and Municipal Services Taxes.--It shall be
3 the duty of the [Department of Community Affairs] Department of
4 Community and Economic Development to have available an official
5 continuing register supplemented annually of all earned income
6 and [occupational privilege] emergency and municipal services
7 taxes levied under authority of this act. The register and its
8 supplements, hereinafter referred to as the register, shall list
9 such jurisdictions levying earned income and/or [occupational
10 privilege] emergency and municipal services taxes, the rate of
11 the tax as stated in the tax levying ordinance or resolution,
12 and the effective rate on resident and nonresident taxpayers, if
13 different from the stated rate because of a coterminous levy,
14 the name and address of the officer responsible for
15 administering the collection of the tax and from whom
16 information, forms for reporting and copies of rules and
17 regulations are available. With each jurisdiction listed, all
18 jurisdictions making coterminous levies shall also be noted and
19 their tax rates shown.
20 Information for the register shall be furnished by the
21 secretary of each taxing body to the [Department of Community
22 Affairs] Department of Community and Economic Development in
23 such manner and on such forms as the [Department of Community
24 Affairs] Department of Community and Economic Development may
25 prescribe. The information must be received by the [Department
26 of Community Affairs] Department of Community and Economic
27 Development by certified mail not later than May 31 of each year
28 to show new tax enactments, repeals and changes. Failure to
29 comply with this date for filing may result in the omission of
30 the levy from the register for that year. Failure of the
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1 [Department of Community Affairs] Department of Community and
2 Economic Development to receive information of taxes continued
3 without change may be construed by the department to mean that
4 the information contained in the previous register remains in
5 force.
6 The [Department of Community Affairs] Department of Community
7 and Economic Development shall have the register with such
8 annual supplements as may be required by new tax enactments,
9 repeals or changes available upon request not later than July 1
10 of each year. The effective period for each register shall be
11 from July 1 of the year in which it is issued to June 30 of the
12 following year.
13 Employers shall not be required by any local ordinance to
14 withhold from the wages, salaries, commissions or other
15 compensation of their employes any tax imposed under the
16 provisions of this act, which is not listed in the register, or
17 make reports of wages, salaries, commissions or other
18 compensation in connection with taxes not so listed: Provided,
19 That if the register is not available by July 1, the register of
20 the previous year shall continue temporarily in effect for an
21 additional period not to exceed one year. The provisions of this
22 section shall not affect the liability of any taxpayer for taxes
23 lawfully imposed under this act.
24 Ordinances or resolutions imposing earned income or
25 [occupational privilege] emergency and municipal services taxes
26 under authority of this act may contain provisions requiring
27 employers doing business within the jurisdiction of the
28 political subdivision imposing the tax to withhold the tax from
29 the compensation of those of their employes who are subject to
30 the tax: Provided, That no employer shall be held liable for
20050S0157B1401 - 12 -
1 failure to withhold earned income taxes or for the payment of
2 such withheld tax money to a political subdivision other than
3 the political subdivision entitled to receive such money if such
4 failure to withhold or such incorrect transmittal of withheld
5 taxes arises from incorrect information as to the employe's
6 place of residence submitted by the employe: And provided
7 further, That employers shall not be required by any local
8 ordinance to withhold from compensation for any one of their
9 employes for the [occupational privilege] emergency and
10 municipal services tax more than one time in any [fiscal period]
11 quarter of the calendar year, and shall not be required to remit
12 such tax until thirty (30) days after the end of such quarter of
13 a calendar year: And provided further, That the [occupational
14 privilege] emergency and municipal services tax shall be
15 applicable to employment in the period beginning January 1, of
16 the current year and ending December 31 of the current year,
17 except that taxes imposed for the first time shall become
18 effective from the date specified in the ordinance or
19 resolution, and the tax shall continue in force on a calendar
20 year basis.
21 Section 3. Section 22.5 of the act, added December 1, 2004
22 (P.L.1729, No.222), is amended to read:
23 Section 22.5. Restricted Use.--(a) Any municipality
24 deriving funds from the emergency and municipal services tax may
25 only use the funds for:
26 (1) police, fire and/or emergency services;
27 (2) road construction and/or maintenance; [or]
28 (3) reduction of property taxes[.]; or
29 (4) property tax relief through implementation of a
30 homestead and farmstead exclusion in accordance with 53 Pa.C.S.
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1 Ch. 85 Subch. F (relating to homestead property exclusion).
2 (a.1) In the event that a municipality determines to
3 implement a homestead and farmstead exclusion for purposes of
4 providing property tax relief in accordance with subsection
5 (a)(4), the following shall apply:
6 (1) The decision to provide a homestead and farmstead
7 exclusion shall be made, by ordinance, prior to December 1, with
8 the homestead and farmstead exclusion to take effect for the
9 fiscal year beginning the first day of January following
10 adoption of the ordinance. Upon adopting an ordinance in
11 accordance with this paragraph, a municipality shall, by first
12 class mail, notify the assessor, as defined in 53 Pa.C.S. § 8582
13 (relating to definitions), of its decision to provide a
14 homestead and farmstead exclusion.
15 (2) The assessor shall provide a municipality that will be
16 imposing a homestead and farmstead exclusion in accordance with
17 subsection (a)(4) with a certified report, as provided in 53
18 Pa.C.S. § 8584(i) (relating to administration and procedure),
19 listing information regarding homestead and farmstead properties
20 in the municipality as determined pursuant to applications filed
21 with the assessor in connection with this or any other law under
22 which a homestead or farmstead exclusion has been adopted. In
23 the year in which an ordinance is adopted in accordance with
24 paragraph (1), the assessor shall provide the certified report
25 after being notified by the municipality of its decision to
26 provide a homestead and farmstead exclusion. In each succeeding
27 year, the assessor shall provide the certified report by
28 December 1 or at the same time the tax duplicate is certified to
29 the municipality, whichever occurs first. Any duty placed on an
30 assessor in accordance with this paragraph shall be in addition
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1 to those established in 53 Pa.C.S. Ch. 85 Subch. F and the act
2 of July 5, 2004 (P.L.654, No.72), known as the "Homeowner Tax
3 Relief Act."
4 (3) Only homestead or farmstead properties identified in the
5 certified report of the assessor obtained in any year shall be
6 eligible to receive the exclusion for the next fiscal year.
7 (4) In the year in which a municipality adopts the ordinance
8 evidencing its decision to implement a homestead and farmstead
9 exclusion, the municipality shall notify by first class mail the
10 owner of each parcel of residential property within the
11 municipality of each of the following:
12 (i) That the homestead and farmstead exclusion program is to
13 be implemented to provide property tax relief as authorized by
14 subsection (a)(4), beginning in the next fiscal year.
15 (ii) That only properties currently identified in the
16 certified report of the assessor as having been approved in
17 whole or in part, as homestead or farmstead properties, shall be
18 entitled to an exclusion in the next fiscal year.
19 (iii) That owners of properties that have not been approved
20 by the assessor as homestead or farmstead properties may file an
21 application in accordance with 53 Pa.C.S. § 8584(a), by the
22 annual application deadline of March 1, in order to qualify for
23 the program in the year following the next fiscal year.
24 The one-time notice required by this paragraph may be combined
25 and made together with the annual notice required by paragraph
26 (6).
27 (5) Both in the year in which the initial decision to
28 provide a homestead and farmstead exclusion is to be made and in
29 each succeeding year, a municipality shall, by resolution, fix
30 the dollar amount that is to be excluded from the assessed value
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1 of each homestead and farmstead property for the next fiscal
2 year, consistent with 53 Pa.C.S. §§ 8583 (relating to exclusion
3 of homestead property) and 8586 (relating to limitations). This
4 determination of the amount of the homestead and farmstead
5 exclusion shall be made, after receipt of the tax duplicate and
6 the certified report from the assessor, at the time the
7 governing body of a municipality determines the municipal budget
8 and estimates its emergency and municipal services tax revenues
9 for the next fiscal year.
10 (6) Each year after the year in which the municipality
11 implements a homestead and farmstead exclusion and no later than
12 sixty days prior to the application deadline, the municipality
13 shall give notice of the existence of the municipality's
14 homestead and farmstead exclusion program, the need to file an
15 application in accordance with 53 Pa.C.S. § 8584(a) in order to
16 qualify for the program, and the application deadline, which, in
17 accordance with 53 Pa.C.S. § 8584(b), shall be March 1. This
18 annual notice, which shall be given by first class mail, need
19 only be sent to the owner of each parcel of residential property
20 in the municipality which is not approved as homestead or
21 farmstead property or for which the approval is due to expire.
22 (b) For the purpose of the emergency and municipal services
23 tax, the term municipality does not include a school district.
24 Section 4. This act shall apply to taxes levied for tax
25 years commencing on or after January 1, 2006.
26 Section 5. This act shall take effect January 1, 2006.
27 SECTION 1. SECTION 2 OF THE ACT OF DECEMBER 31, 1965 <--
28 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AMENDED
29 DECEMBER 1, 2004 (P.L.1729, NO.222), IS AMENDED TO READ:
30 SECTION 2. DELEGATION OF TAXING POWERS AND RESTRICTIONS
20050S0157B1401 - 16 -
1 THEREON.--THE DULY CONSTITUTED AUTHORITIES OF THE FOLLOWING
2 POLITICAL SUBDIVISIONS, CITIES OF THE SECOND CLASS, CITIES OF
3 THE SECOND CLASS A, CITIES OF THE THIRD CLASS, BOROUGHS, TOWNS,
4 TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS,
5 SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE
6 THIRD CLASS, AND SCHOOL DISTRICTS OF THE FOURTH CLASS, IN ALL
7 CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS, MAY, IN THEIR
8 DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL REVENUE
9 PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
10 ASSESSMENT AND COLLECTION OF SUCH TAXES AS THEY SHALL DETERMINE
11 ON PERSONS, TRANSACTIONS, OCCUPATIONS, PRIVILEGES, SUBJECTS AND
12 PERSONAL PROPERTY WITHIN THE LIMITS OF SUCH POLITICAL
13 SUBDIVISIONS, AND UPON THE TRANSFER OF REAL PROPERTY, OR OF ANY
14 INTEREST IN REAL PROPERTY, SITUATE WITHIN THE POLITICAL
15 SUBDIVISION LEVYING AND ASSESSING THE TAX, REGARDLESS OF WHERE
16 THE INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR
17 DELIVERED OR WHERE THE ACTUAL SETTLEMENTS ON SUCH TRANSFER TAKE
18 PLACE. THE TAXING AUTHORITY MAY PROVIDE THAT THE TRANSFEREE
19 SHALL REMAIN LIABLE FOR ANY UNPAID REALTY TRANSFER TAXES IMPOSED
20 BY VIRTUE OF THIS ACT. EACH LOCAL TAXING AUTHORITY MAY, BY
21 ORDINANCE OR RESOLUTION, EXEMPT ANY PERSON WHOSE TOTAL INCOME
22 FROM ALL SOURCES IS LESS THAN TWELVE THOUSAND DOLLARS ($12,000)
23 PER ANNUM FROM THE PER CAPITA OR SIMILAR HEAD TAX, OCCUPATION
24 TAX AND [EMERGENCY AND MUNICIPAL SERVICES TAX] OCCUPATIONAL
25 PRIVILEGE TAX, OR EARNED INCOME TAX, OR ANY PORTION THEREOF, AND
26 MAY ADOPT REGULATIONS FOR THE PROCESSING OF CLAIMS FOR
27 EXEMPTIONS. EACH MUNICIPALITY SHALL BY ORDINANCE OR RESOLUTION
28 EXEMPT ANY PERSON WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS
29 THAN TWELVE THOUSAND DOLLARS ($12,000) FOR THE IMMEDIATELY PRIOR
30 CALENDAR YEAR FROM THE MUNICIPAL SERVICES TAX. SUCH LOCAL
20050S0157B1401 - 17 -
1 AUTHORITIES SHALL NOT HAVE AUTHORITY BY VIRTUE OF THIS ACT:
2 (1) TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
3 ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF REAL
4 PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE
5 INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE
6 OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER
7 OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED
8 RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART
9 OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY
10 UNOCCUPIED SINGLE FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER
11 BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE
12 HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS
13 THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL
14 DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM
15 THEM, OR ON TRANSFER TO OR FROM NONPROFIT INDUSTRIAL DEVELOPMENT
16 AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A
17 TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE
18 BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE
19 WITHIN THREE MONTHS OF THE DATE OF THE GRANTING OF THE FINAL
20 DECREE IN DIVORCE, OR THE DECREE OF EQUITABLE DISTRIBUTION OF
21 MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR
22 INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE
23 HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF
24 THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND
25 CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND
26 TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD,
27 OR ON A TRANSFER BETWEEN A GRANDPARENT AND GRANDCHILD OR THE
28 SPOUSE OF SUCH GRANDCHILD, OR ON A TRANSFER BETWEEN BROTHER AND
29 SISTER OR BROTHER AND BROTHER OR SISTER AND SISTER OR THE SPOUSE
30 OF SUCH BROTHER OR SISTER, OR ON A TRANSFER TO A CONSERVANCY
20050S0157B1401 - 18 -
1 WHICH POSSESSES A TAX-EXEMPT STATUS PURSUANT TO SECTION
2 501(C)(3) OF THE INTERNAL REVENUE CODE, AND WHICH HAS AS ITS
3 PRIMARY PURPOSE THE PRESERVATION OF LAND FOR HISTORIC,
4 RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN SPACE OPPORTUNITIES,
5 BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF
6 PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A
7 CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE
8 UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF
9 THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY
10 GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION, OR DEED OF
11 CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS, OR
12 RECONVEYANCE BY THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO
13 THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH
14 RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID
15 RECONVEYANCE IS MADE WITHIN ONE YEAR FROM THE DATE OF
16 CONDEMNATION, LEASES, OR ON A CONVEYANCE TO A TRUSTEE UNDER A
17 RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING
18 TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF
19 THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND
20 REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR-
21 BORROWER UPON THE REPAYMENT OF THE DEBT, OR A TRANSFER WITHIN A
22 FAMILY FROM A SOLE PROPRIETOR FAMILY MEMBER TO A FAMILY FARM
23 CORPORATION, OR IN ANY SHERIFF SALE INSTITUTED BY A MORTGAGEE IN
24 WHICH THE PURCHASER OF SAID SHERIFF SALE IS THE MORTGAGEE WHO
25 INSTITUTED SAID SALE, OR ON A PRIVILEGE, TRANSACTION, SUBJECT,
26 OCCUPATION OR PERSONAL PROPERTY WHICH IS NOW OR DOES HEREAFTER
27 BECOME SUBJECT TO A STATE TAX OR LICENSE FEE;
28 (2) TO LEVY, ASSESS OR COLLECT A TAX ON THE GROSS RECEIPTS
29 FROM UTILITY SERVICE OF ANY PERSON OR COMPANY WHOSE RATES AND
30 SERVICES ARE FIXED AND REGULATED BY THE PENNSYLVANIA PUBLIC
20050S0157B1401 - 19 -
1 UTILITY COMMISSION OR ON ANY PUBLIC UTILITY SERVICES RENDERED BY
2 ANY SUCH PERSON OR COMPANY OR ON ANY PRIVILEGE OR TRANSACTION
3 INVOLVING THE RENDERING OF ANY SUCH PUBLIC UTILITY SERVICE;
4 (3) EXCEPT ON SALES OF ADMISSION TO PLACES OF AMUSEMENT OR
5 ON SALES OR OTHER TRANSFERS OF TITLE OR POSSESSION OF PROPERTY,
6 TO LEVY, ASSESS OR COLLECT A TAX ON THE PRIVILEGE OF EMPLOYING
7 SUCH TANGIBLE PROPERTY AS IS NOW OR DOES HEREAFTER BECOME
8 SUBJECT TO A STATE TAX; AND FOR THE PURPOSES OF THIS CLAUSE,
9 REAL PROPERTY RENTED FOR CAMPING PURPOSES SHALL NOT BE
10 CONSIDERED A PLACE OF AMUSEMENT.
11 (4) TO LEVY, ASSESS AND COLLECT A TAX ON GOODS AND ARTICLES
12 MANUFACTURED IN SUCH POLITICAL SUBDIVISION OR ON THE BY-PRODUCTS
13 OF MANUFACTURE, OR ON MINERALS, TIMBER, NATURAL RESOURCES AND
14 FARM PRODUCTS PRODUCED IN SUCH POLITICAL SUBDIVISION OR ON THE
15 PREPARATION OR PROCESSING THEREOF FOR USE OR MARKET, OR ON ANY
16 PRIVILEGE, ACT OR TRANSACTION RELATED TO THE BUSINESS OF
17 MANUFACTURING, THE PRODUCTION, PREPARATION OR PROCESSING OF
18 MINERALS, TIMBER AND NATURAL RESOURCES, OR FARM PRODUCTS, BY
19 MANUFACTURERS, BY PRODUCERS AND BY FARMERS WITH RESPECT TO THE
20 GOODS, ARTICLES AND PRODUCTS OF THEIR OWN MANUFACTURE,
21 PRODUCTION OR GROWTH, OR ON ANY PRIVILEGE, ACT OR TRANSACTION
22 RELATING TO THE BUSINESS OF PROCESSING BY-PRODUCTS OF
23 MANUFACTURE, OR ON THE TRANSPORTATION, LOADING, UNLOADING OR
24 DUMPING OR STORAGE OF SUCH GOODS, ARTICLES, PRODUCTS OR BY-
25 PRODUCTS; EXCEPT THAT LOCAL AUTHORITIES MAY LEVY, ASSESS AND
26 COLLECT [AN EMERGENCY AND] A MUNICIPAL SERVICES TAX AND TAXES ON
27 THE OCCUPATION, PER CAPITA AND EARNED INCOME OR NET PROFITS OF
28 NATURAL PERSONS ENGAGED IN THE ABOVE ACTIVITIES WHETHER DOING
29 BUSINESS AS INDIVIDUAL PROPRIETORSHIP OR AS MEMBERS OF
30 PARTNERSHIPS OR OTHER ASSOCIATIONS;
20050S0157B1401 - 20 -
1 (5) TO LEVY, ASSESS OR COLLECT A TAX ON SALARIES, WAGES,
2 COMMISSIONS, COMPENSATION AND EARNED INCOME OF NONRESIDENTS OF
3 THE POLITICAL SUBDIVISIONS: PROVIDED, THAT THIS LIMITATION (5)
4 SHALL APPLY ONLY TO SCHOOL DISTRICTS OF THE SECOND, THIRD AND
5 FOURTH CLASSES;
6 (6) TO LEVY, ASSESS OR COLLECT A TAX ON PERSONAL PROPERTY
7 SUBJECT TO TAXATION BY COUNTIES OR ON PERSONAL PROPERTY OWNED BY
8 PERSONS, ASSOCIATIONS AND CORPORATIONS SPECIFICALLY EXEMPTED BY
9 LAW FROM TAXATION UNDER THE COUNTY PERSONAL PROPERTY TAX LAW:
10 PROVIDED, THAT THIS LIMITATION (6) SHALL NOT APPLY TO CITIES OF
11 THE SECOND CLASS;
12 (7) TO LEVY, ASSESS OR COLLECT A TAX ON MEMBERSHIP IN OR
13 MEMBERSHIP DUES, FEES OR ASSESSMENT OF CHARITABLE, RELIGIOUS,
14 BENEFICIAL OR NONPROFIT ORGANIZATIONS INCLUDING BUT NOT LIMITED
15 TO SPORTSMENS, RECREATIONAL, GOLF AND TENNIS CLUBS, GIRL AND BOY
16 SCOUT TROOPS AND COUNCILS;
17 (8) TO LEVY, ASSESS OR COLLECT ANY TAX ON A MOBILEHOME OR
18 HOUSE TRAILER SUBJECT TO A REAL PROPERTY TAX UNLESS THE SAME TAX
19 IS LEVIED, ASSESSED AND COLLECTED ON OTHER REAL PROPERTY IN THE
20 POLITICAL SUBDIVISION.
21 (9) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR
22 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION ([EMERGENCY AND]
23 MUNICIPAL SERVICES TAX) EXCEPT THAT SUCH A TAX MAY BE LEVIED,
24 ASSESSED AND COLLECTED ONLY BY THE [POLITICAL SUBDIVISION]
25 MUNICIPALITY OF THE TAXPAYER'S PLACE OF PRIMARY EMPLOYMENT.
26 PAYMENT OF ANY [EMERGENCY AND] MUNICIPAL SERVICES TAX TO ANY
27 [POLITICAL SUBDIVISION] MUNICIPALITY BY ANY PERSON PURSUANT TO
28 AN ORDINANCE OR RESOLUTION PASSED OR ADOPTED UNDER THE AUTHORITY
29 OF THIS ACT SHALL BE NO [LESS THAN TEN DOLLARS ($10) NOR] MORE
30 THAN FIFTY-TWO DOLLARS ($52) ON EACH PERSON [FOR EACH] DURING A
20050S0157B1401 - 21 -
1 CALENDAR YEAR[.] WITHOUT REGARD TO THE NUMBER OF MUNICIPALITIES
2 WITHIN WHICH A PERSON MAY BE EMPLOYED DURING A CALENDAR YEAR.
3 NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A TAXPAYER SHALL NOT
4 BE LIABLE FOR AN AMOUNT OF TAX IN EXCESS OF THE TAX AUTHORIZED
5 TO BE COLLECTED UNDER THIS CLAUSE.
6 A SCHOOL DISTRICT MAY NOT LEVY A MUNICIPAL SERVICES TAX UNDER
7 THIS ACT.
8 IF A MUNICIPALITY LEVIES THE MUNICIPAL SERVICES TAX AT AN
9 AMOUNT GREATER THAN TEN DOLLARS ($10) PER ANNUM, IT SHALL
10 REQUIRE THE EMPLOYER TO WITHHOLD THE MUNICIPAL SERVICES TAX ON A
11 PRO RATA BASIS DETERMINED BY THE NUMBER OF PAYROLL PERIODS
12 ESTABLISHED BY THE EMPLOYER FOR A CALENDAR YEAR. NOTHING UNDER
13 THIS CLAUSE SHALL BE CONSTRUED TO PROHIBIT EMPLOYES FROM
14 ENTERING INTO AN AGREEMENT WITH THEIR EMPLOYER TO MAKE PAYMENT
15 OF THE MUNICIPAL SERVICES TAX IN FULL AT THE TIME OF THE FIRST
16 WITHHOLDING OF THE MUNICIPAL SERVICES TAX.
17 THE SITUS OF SUCH TAX SHALL BE THE PLACE OF PRIMARY
18 EMPLOYMENT, BUT, IN THE EVENT A PERSON IS ENGAGED IN MORE THAN
19 ONE OCCUPATION, [OR AN OCCUPATION WHICH REQUIRES HIS WORKING IN
20 MORE THAN ONE POLITICAL SUBDIVISION DURING THE CALENDAR YEAR,]
21 THE PRIORITY OF CLAIM TO COLLECT SUCH [EMERGENCY AND] MUNICIPAL
22 SERVICES TAX SHALL BE [IN THE FOLLOWING ORDER: FIRST,] THE
23 POLITICAL SUBDIVISION IN WHICH A PERSON MAINTAINS HIS PRINCIPAL
24 OFFICE OR IS PRINCIPALLY EMPLOYED.[; SECOND, THE POLITICAL
25 SUBDIVISION IN WHICH THE PERSON RESIDES AND WORKS, IF SUCH A TAX
26 IS LEVIED BY THAT POLITICAL SUBDIVISION; THIRD, THE POLITICAL
27 SUBDIVISION IN WHICH A PERSON IS EMPLOYED AND WHICH IMPOSES THE
28 TAX NEAREST IN MILES TO THE PERSON'S HOME. THE PLACE OF
29 EMPLOYMENT SHALL BE DETERMINED AS OF THE DAY THE TAXPAYER FIRST
30 BECOMES SUBJECT TO THE TAX DURING THE CALENDAR YEAR.
20050S0157B1401 - 22 -
1 IT IS THE INTENT OF THIS PROVISION THAT NO PERSON SHALL PAY
2 MORE THAN FIFTY-TWO DOLLARS ($52) IN ANY CALENDAR YEAR AS AN
3 EMERGENCY AND MUNICIPAL SERVICES TAX IRRESPECTIVE OF THE NUMBER
4 OF POLITICAL SUBDIVISIONS WITHIN WHICH SUCH PERSON MAY BE
5 EMPLOYED WITHIN ANY GIVEN CALENDAR YEAR.] NO TAXPAYER SHALL BE
6 SUBJECT TO THE COLLECTION OF THE MUNICIPAL SERVICES TAX BY MORE
7 THAN ONE MUNICIPALITY DURING A PAYROLL PERIOD AS ESTABLISHED BY
8 THE TAXPAYER'S PRIMARY EMPLOYER LOCATED IN THE MUNICIPALITY IN
9 WHICH THE TAXPAYER MAINTAINS THE TAXPAYER'S PRIMARY EMPLOYMENT.
10 IT IS THE INTENT OF THIS PROVISION THAT NO TAXPAYER BE SUBJECT
11 TO THE COLLECTION OF THE MUNICIPAL SERVICES TAX BY MORE THAN ONE
12 MUNICIPALITY DURING A PAYROLL PERIOD.
13 IN CASE OF DISPUTE, A TAX RECEIPT OF THE TAXING AUTHORITY
14 [FOR THAT CALENDAR YEAR] OR PROOF OF EMPLOYER WITHHOLDING FOR
15 THE PAYROLL PERIOD DECLARING THAT THE TAXPAYER HAS MADE PRIOR
16 PAYMENT WHICH CONSTITUTES PRIMA FACIE CERTIFICATION OF PAYMENT
17 TO ALL OTHER POLITICAL SUBDIVISIONS.
18 (9.1) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR
19 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION (OCCUPATION PRIVILEGE
20 TAX) EXCEPT THAT SUCH A TAX MAY ONLY BE LEVIED, ASSESSED OR
21 COLLECTED BY THE SCHOOL DISTRICT OF THE TAXPAYER'S PRINCIPAL
22 EMPLOYMENT. THE LEVYING OF THE OCCUPATION PRIVILEGE TAX SHALL
23 NOT EXCEED THE RATE OF MUNICIPAL SERVICES TAX LEVIED BY THE
24 SCHOOL DISTRICT IN CALENDAR YEAR 2005. ANY SCHOOL DISTRICT THAT
25 DID NOT SHARE IN LEVYING OF THE MUNICIPAL SERVICES TAX IN
26 CALENDAR YEAR 2005 SHALL BE PROHIBITED FROM LEVYING THE
27 OCCUPATION PRIVILEGE TAX. THE TAXPAYER SHALL RECEIVE A CREDIT
28 AGAINST THE MUNICIPAL SERVICES TAX LEVIED BY A MUNICIPALITY
29 EQUAL TO THE AMOUNT BY WHICH THE SUM OF THE MUNICIPAL SERVICE
30 TAX LEVIED BY THE MUNICIPALITY PLUS THE OCCUPATION PRIVILEGE TAX
20050S0157B1401 - 23 -
1 LEVIED BY A SCHOOL DISTRICT EXCEEDS FIFTY-TWO DOLLARS ($52).
2 (10) TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO
3 MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10)
4 SHALL NOT APPLY TO CITIES OF THE SECOND CLASS.
5 (11) TO LEVY, ASSESS OR COLLECT A TAX ON THE CONSTRUCTION OF
6 OR IMPROVEMENT TO RESIDENTIAL DWELLINGS OR UPON THE APPLICATION
7 FOR OR ISSUANCE OF PERMITS FOR THE CONSTRUCTION OF OR
8 IMPROVEMENTS TO RESIDENTIAL DWELLINGS.
9 (12) TO LEVY, ASSESS AND COLLECT A MERCANTILE OR BUSINESS
10 PRIVILEGE TAX ON GROSS RECEIPTS OR PART THEREOF WHICH ARE: (I)
11 DISCOUNTS ALLOWED TO PURCHASERS AS CASH DISCOUNTS FOR PROMPT
12 PAYMENT OF THEIR BILLS; (II) CHARGES ADVANCED BY A SELLER FOR
13 FREIGHT, DELIVERY OR OTHER TRANSPORTATION FOR THE PURCHASER IN
14 ACCORDANCE WITH THE TERMS OF A CONTRACT OF SALE; (III) RECEIVED
15 UPON THE SALE OF AN ARTICLE OF PERSONAL PROPERTY WHICH WAS
16 ACQUIRED BY THE SELLER AS A TRADE-IN TO THE EXTENT THAT THE
17 GROSS RECEIPTS IN THE SALE OF THE ARTICLE TAKEN IN TRADE DOES
18 NOT EXCEED THE AMOUNT OF TRADE-IN ALLOWANCE MADE IN ACQUIRING
19 SUCH ARTICLE; (IV) REFUNDS, CREDITS OR ALLOWANCES GIVEN TO A
20 PURCHASER ON ACCOUNT OF DEFECTS IN GOODS SOLD OR MERCHANDISE
21 RETURNED; (V) PENNSYLVANIA SALES TAX; (VI) BASED ON THE VALUE OF
22 EXCHANGES OR TRANSFERS BETWEEN ONE SELLER AND ANOTHER SELLER WHO
23 TRANSFERS PROPERTY WITH THE UNDERSTANDING THAT PROPERTY OF AN
24 IDENTICAL DESCRIPTION WILL BE RETURNED AT A SUBSEQUENT DATE;
25 HOWEVER, WHEN SELLERS ENGAGED IN SIMILAR LINES OF BUSINESS
26 EXCHANGE PROPERTY AND ONE OF THEM MAKES PAYMENT TO THE OTHER IN
27 ADDITION TO THE PROPERTY EXCHANGED, THE ADDITIONAL PAYMENT
28 RECEIVED MAY BE INCLUDED IN THE GROSS RECEIPTS OF THE SELLER
29 RECEIVING SUCH ADDITIONAL CASH PAYMENTS; (VII) OF SELLERS FROM
30 SALES TO OTHER SELLERS IN THE SAME LINE WHERE THE SELLER
20050S0157B1401 - 24 -
1 TRANSFERS THE TITLE OR POSSESSION AT THE SAME PRICE FOR WHICH
2 THE SELLER ACQUIRED THE MERCHANDISE; OR (VIII) TRANSFERS BETWEEN
3 ONE DEPARTMENT, BRANCH OR DIVISION OF A CORPORATION OR OTHER
4 BUSINESS ENTITY OF GOODS, WARES AND MERCHANDISE TO ANOTHER
5 DEPARTMENT, BRANCH OR DIVISION OF THE SAME CORPORATION OR
6 BUSINESS ENTITY AND WHICH ARE RECORDED ON THE BOOKS TO REFLECT
7 SUCH INTERDEPARTMENTAL TRANSACTIONS.
8 (13) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
9 TAX ON MEMBERSHIP, MEMBERSHIP DUES, FEES OR ASSESSMENTS,
10 DONATIONS, CONTRIBUTIONS OR MONETARY CHARGES OF ANY CHARACTER
11 WHATSOEVER PAID BY THE GENERAL PUBLIC, OR A LIMITED OR SELECTED
12 NUMBER THEREOF, FOR SUCH PERSONS TO ENTER INTO ANY PLACE,
13 INDOORS OR OUTDOORS, TO ENGAGE IN ANY ACTIVITIES, THE
14 PREDOMINANT PURPOSE OR NATURE OF WHICH IS EXERCISE, FITNESS,
15 HEALTH MAINTENANCE, IMPROVEMENT OR REHABILITATION, HEALTH OR
16 NUTRITION EDUCATION, OR WEIGHT CONTROL.
17 (14) EXCEPT BY CITIES OF THE SECOND CLASS, TO LEVY, ASSESS
18 OR COLLECT A TAX ON PAYROLL AMOUNTS GENERATED AS A RESULT OF
19 BUSINESS ACTIVITY.
20 (15) EXCEPT BY CITIES OF THE SECOND CLASS IN WHICH A SPORTS
21 STADIUM OR ARENA THAT HAS RECEIVED PUBLIC FUNDS IN CONNECTION
22 WITH ITS CONSTRUCTION OR MAINTENANCE IS LOCATED, TO LEVY, ASSESS
23 AND COLLECT A PUBLICLY FUNDED FACILITY USAGE FEE UPON THOSE
24 NONRESIDENT INDIVIDUALS WHO USE SUCH FACILITY TO ENGAGE IN AN
25 ATHLETIC EVENT OR OTHERWISE RENDER A PERFORMANCE FOR WHICH THEY
26 RECEIVE REMUNERATION.
27 (16) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
28 TAX ON THE CHARGE IMPOSED UPON A PATRON FOR THE SALE OF
29 ADMISSION TO OR FOR THE PRIVILEGE OF ADMISSION TO A BOWLING
30 ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF BOWLING.
20050S0157B1401 - 25 -
1 SECTION 2. SECTION 7 OF THE ACT, AMENDED AUGUST 11, 1967
2 (P.L.228, NO.83) AND OCTOBER 9, 1967 (P.L.361, NO.160), IS
3 AMENDED TO READ:
4 SECTION 7. FILING OF CERTIFIED COPIES OF ORDINANCES AND
5 RESOLUTIONS.--WHEN AN ORDINANCE OR A RESOLUTION IS FIRST PASSED
6 OR ADOPTED BY A POLITICAL SUBDIVISION IMPOSING A TAX OR LICENSE
7 FEE UNDER THE AUTHORITY OF THIS ACT, AN EXACT PRINTED OR
8 TYPEWRITTEN COPY THEREOF, CERTIFIED TO BY THE SECRETARY OF THE
9 TAXING BODY, SHALL BE FILED WITH THE [DEPARTMENT OF COMMUNITY
10 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT WITHIN
11 FIFTEEN DAYS AFTER THE SAME BECOMES EFFECTIVE.
12 ANY SECRETARY OR PERSON ACTING AS THE CLERK OR SECRETARY OF
13 THE TAXING BODY OF ANY POLITICAL SUBDIVISION DURING THE MEETING
14 AT WHICH AN ORDINANCE OR RESOLUTION IMPOSING A TAX OR LICENSE
15 FEE IS PASSED OR ADOPTED AS HEREIN PROVIDED WHO SHALL FAIL TO
16 FILE THE CERTIFIED COPY OR STATEMENT RELATIVE THERETO WITH THE
17 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND
18 ECONOMIC DEVELOPMENT AS HEREIN REQUIRED, SHALL, UPON SUMMARY
19 CONVICTION THEREOF IN THE COUNTY IN WHICH THE POLITICAL
20 SUBDIVISION IS LOCATED, BE SENTENCED TO PAY A FINE OF NOT LESS
21 THAN FIVE DOLLARS ($5) NOR MORE THAN TWENTY-FIVE DOLLARS ($25),
22 AND THE COSTS OF PROSECUTION.
23 SECTION 3. SECTION 8 OF THE ACT, AMENDED DECEMBER 1, 2004
24 (P.L.1729, NO.222), IS AMENDED TO READ:
25 SECTION 8. LIMITATIONS ON RATES OF SPECIFIC TAXES.--NO TAXES
26 LEVIED UNDER THE PROVISIONS OF THIS ACT SHALL BE LEVIED BY ANY
27 POLITICAL SUBDIVISION ON THE FOLLOWING SUBJECTS EXCEEDING THE
28 RATES SPECIFIED IN THIS SECTION:
29 (1) PER CAPITA, POLL OR OTHER SIMILAR HEAD TAXES, TEN
30 DOLLARS ($10).
20050S0157B1401 - 26 -
1 (2) ON EACH DOLLAR OF THE WHOLE VOLUME OF BUSINESS
2 TRANSACTED BY WHOLESALE DEALERS IN GOODS, WARES AND MERCHANDISE,
3 ONE MILL, BY RETAIL DEALERS IN GOODS, WARES AND MERCHANDISE AND
4 BY PROPRIETORS OF RESTAURANTS OR OTHER PLACES WHERE FOOD, DRINK
5 AND REFRESHMENTS ARE SERVED, ONE AND ONE-HALF MILLS; EXCEPT IN
6 CITIES OF THE SECOND CLASS, WHERE RATES SHALL NOT EXCEED ONE
7 MILL ON WHOLESALE DEALERS AND TWO MILLS ON RETAIL DEALERS AND
8 PROPRIETORS. NO SUCH TAX SHALL BE LEVIED ON THE DOLLAR VOLUME OF
9 BUSINESS TRANSACTED BY WHOLESALE AND RETAIL DEALERS DERIVED FROM
10 THE RESALE OF GOODS, WARES AND MERCHANDISE, TAKEN BY ANY DEALER
11 AS A TRADE-IN OR AS PART PAYMENT FOR OTHER GOODS, WARES AND
12 MERCHANDISE, EXCEPT TO THE EXTENT THAT THE RESALE PRICE EXCEEDS
13 THE TRADE-IN ALLOWANCE.
14 (3) ON WAGES, SALARIES, COMMISSIONS AND OTHER EARNED INCOME
15 OF INDIVIDUALS, ONE PERCENT.
16 (4) ON RETAIL SALES INVOLVING THE TRANSFER OF TITLE OR
17 POSSESSION OF TANGIBLE PERSONAL PROPERTY, TWO PERCENT.
18 (5) ON THE TRANSFER OF REAL PROPERTY, ONE PERCENT.
19 (6) ON ADMISSIONS TO PLACES OF AMUSEMENT, ATHLETIC EVENTS
20 AND THE LIKE, AND ON MOTION PICTURE THEATRES IN CITIES OF THE
21 SECOND CLASS, TEN PERCENT.
22 (7) FLAT RATE OCCUPATION TAXES NOT USING A MILLAGE OR
23 PERCENTAGE AS A BASIS, TEN DOLLARS ($10).
24 (8) [EMERGENCY AND MUNICIPAL] MUNICIPAL SERVICES TAXES,
25 FIFTY-TWO DOLLARS ($52).
26 (9) ON ADMISSIONS TO SKI FACILITIES, TEN PERCENT. THE TAX
27 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
28 PERCENT OF THE COST OF THE LIFT TICKET. THE LIFT TICKET SHALL
29 INCLUDE ALL COSTS OF ADMISSIONS TO THE SKI FACILITY.
30 (10) ON ADMISSIONS TO GOLF COURSES, TEN PERCENT. THE TAX
20050S0157B1401 - 27 -
1 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
2 PERCENT OF THE GREENS FEE. THE GREENS FEE SHALL INCLUDE ALL
3 COSTS OF ADMISSIONS TO THE GOLF COURSE.
4 (12) ON PAYROLLS, FIFTY-FIVE HUNDREDTHS PERCENT.
5 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AT ANY TIME TWO
6 POLITICAL SUBDIVISIONS SHALL IMPOSE ANY ONE OF THE ABOVE TAXES
7 ON THE SAME PERSON, SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE,
8 LOCATED WITHIN BOTH SUCH POLITICAL SUBDIVISIONS, DURING THE SAME
9 YEAR OR PART OF THE SAME YEAR, UNDER THE AUTHORITY OF THIS ACT
10 THEN THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THE
11 AUTHORITY OF THIS ACT SHALL, DURING THE TIME SUCH DUPLICATION OF
12 THE TAX EXISTS, EXCEPT AS HEREINAFTER OTHERWISE PROVIDED, BE
13 ONE-HALF OF THE RATE, AS ABOVE LIMITED, AND SUCH ONE-HALF RATE
14 SHALL BECOME EFFECTIVE BY VIRTUE OF THE REQUIREMENTS OF THIS ACT
15 FROM THE DAY SUCH DUPLICATION BECOMES EFFECTIVE WITHOUT ANY
16 ACTION ON THE PART OF THE POLITICAL SUBDIVISION IMPOSING THE TAX
17 UNDER THE AUTHORITY OF THIS ACT. WHEN ANY ONE OF THE ABOVE TAXES
18 HAS BEEN LEVIED UNDER THE PROVISIONS OF THIS ACT BY ONE
19 POLITICAL SUBDIVISION AND A SUBSEQUENT LEVY IS MADE EITHER FOR
20 THE FIRST TIME OR IS REVIVED AFTER A LAPSE OF TIME BY ANOTHER
21 POLITICAL SUBDIVISION ON THE SAME PERSON, SUBJECT, BUSINESS,
22 TRANSACTION OR PRIVILEGE AT A RATE THAT WOULD MAKE THE COMBINED
23 LEVIES EXCEED THE LIMIT ALLOWED BY THIS SUBDIVISION, THE TAX OF
24 THE SECOND POLITICAL SUBDIVISION SHALL NOT BECOME EFFECTIVE
25 UNTIL THE END OF THE FISCAL YEAR FOR WHICH THE PRIOR TAX WAS
26 LEVIED, UNLESS:
27 (1) NOTICE INDICATING ITS INTENTION TO MAKE SUCH LEVY IS
28 GIVEN TO THE FIRST TAXING BODY BY THE SECOND TAXING BODY AS
29 FOLLOWS: (I) WHEN THE NOTICE IS GIVEN TO A SCHOOL DISTRICT IT
30 SHALL BE GIVEN AT LEAST FORTY-FIVE DAYS PRIOR TO THE LAST DAY
20050S0157B1401 - 28 -
1 FIXED BY LAW FOR THE LEVY OF ITS SCHOOL TAXES; (II) WHEN GIVEN
2 TO ANY OTHER POLITICAL SUBDIVISION IT SHALL BE PRIOR TO THE
3 FIRST DAY OF JANUARY IMMEDIATELY PRECEDING, OR IF A LAST DAY FOR
4 THE ADOPTION OF THE BUDGET IS FIXED BY LAW, AT LEAST FORTY-FIVE
5 DAYS PRIOR TO SUCH LAST DAY; OR
6 (2) UNLESS THE FIRST TAXING BODY SHALL INDICATE BY
7 APPROPRIATE RESOLUTION ITS DESIRE TO WAIVE NOTICE REQUIREMENTS
8 IN WHICH CASE THE LEVY OF THE SECOND TAXING BODY SHALL BECOME
9 EFFECTIVE ON SUCH DATE AS MAY BE AGREED UPON BY THE TWO TAXING
10 BODIES.
11 IT IS THE INTENT AND PURPOSE OF THIS PROVISION TO LIMIT RATES
12 OF TAXES REFERRED TO IN THIS SECTION SO THAT THE ENTIRE BURDEN
13 OF ONE TAX ON A PERSON, SUBJECT, BUSINESS, TRANSACTION OR
14 PRIVILEGE SHALL NOT EXCEED THE LIMITATIONS PRESCRIBED IN THIS
15 SECTION: PROVIDED, HOWEVER, THAT ANY TWO POLITICAL SUBDIVISIONS
16 WHICH IMPOSE ANY ONE OF THE ABOVE TAXES, ON THE SAME PERSON,
17 SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE DURING THE SAME YEAR
18 OR PART OF THE SAME YEAR MAY AGREE AMONG THEMSELVES THAT,
19 INSTEAD OF LIMITING THEIR RESPECTIVE RATES TO ONE-HALF OF THE
20 MAXIMUM RATE HEREIN PROVIDED, THEY WILL IMPOSE RESPECTIVELY
21 DIFFERENT RATES, THE TOTAL OF WHICH SHALL NOT EXCEED THE MAXIMUM
22 RATE AS ABOVE PERMITTED.
23 NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, ANY CITY OF
24 THE SECOND CLASS A MAY ENACT A TAX UPON WAGES, SALARIES,
25 COMMISSIONS AND OTHER EARNED INCOME OF INDIVIDUALS RESIDENT
26 THEREIN, NOT EXCEEDING ONE PERCENT, EVEN THOUGH A SCHOOL
27 DISTRICT LEVIES A SIMILAR TAX ON THE SAME PERSON PROVIDED THAT
28 THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT. IN THE
29 CASE OF DUPLICATION OF [EMERGENCY AND] MUNICIPAL SERVICES TAXES
30 BY BOTH A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT OF THE
20050S0157B1401 - 29 -
1 FIRST CLASS A, AND ANOTHER TAXING BODY, THE SCHOOL DISTRICT'S
2 SHARE OF THE TAX SHALL NOT EXCEED THE AMOUNT OF A TAX ON THE
3 PRIVILEGE OF ENGAGING IN AN OCCUPATION COLLECTED BY THE SCHOOL
4 DISTRICT AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH. IN THE CASE
5 WHERE A SCHOOL DISTRICT DID NOT LEVY A TAX ON THE PRIVILEGE OF
6 ENGAGING IN AN OCCUPATION ON THE EFFECTIVE DATE OF THIS
7 PARAGRAPH, THE SCHOOL DISTRICT MAY IMPOSE A FUTURE LEVY NOT TO
8 EXCEED FIVE DOLLARS ($5). A SCHOOL DISTRICT OF THE FIRST CLASS A
9 SHALL NOT LEVY, ASSESS OR COLLECT [AN EMERGENCY AND] A MUNICIPAL
10 SERVICES TAX.
11 SECTION 4. SECTION 9 OF THE ACT, AMENDED DECEMBER 12, 1968
12 (P.L.1203, NO.377), IS AMENDED TO READ:
13 SECTION 9. REGISTER FOR EARNED INCOME AND OCCUPATIONAL
14 PRIVILEGE TAXES.--IT SHALL BE THE DUTY OF THE [DEPARTMENT OF
15 COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC
16 DEVELOPMENT TO HAVE AVAILABLE AN OFFICIAL CONTINUING REGISTER
17 SUPPLEMENTED ANNUALLY OF ALL EARNED INCOME AND OCCUPATIONAL
18 PRIVILEGE TAXES LEVIED UNDER AUTHORITY OF THIS ACT. THE REGISTER
19 AND ITS SUPPLEMENTS, HEREINAFTER REFERRED TO AS THE REGISTER,
20 SHALL LIST SUCH JURISDICTIONS LEVYING EARNED INCOME AND/OR
21 OCCUPATIONAL PRIVILEGE MUNICIPAL SERVICES TAXES, THE RATE OF THE
22 TAX AS STATED IN THE TAX LEVYING ORDINANCE OR RESOLUTION, AND
23 THE EFFECTIVE RATE ON RESIDENT AND NONRESIDENT TAXPAYERS, IF
24 DIFFERENT FROM THE STATED RATE BECAUSE OF A COTERMINOUS LEVY,
25 THE NAME AND ADDRESS OF THE OFFICER RESPONSIBLE FOR
26 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM
27 INFORMATION, FORMS FOR REPORTING AND COPIES OF RULES AND
28 REGULATIONS ARE AVAILABLE. WITH EACH JURISDICTION LISTED, ALL
29 JURISDICTIONS MAKING COTERMINOUS LEVIES SHALL ALSO BE NOTED AND
30 THEIR TAX RATES SHOWN.
20050S0157B1401 - 30 -
1 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE
2 SECRETARY OF EACH TAXING BODY TO THE [DEPARTMENT OF COMMUNITY
3 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT IN
4 SUCH MANNER AND ON SUCH FORMS AS THE [DEPARTMENT OF COMMUNITY
5 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT MAY
6 PRESCRIBE. THE INFORMATION MUST BE RECEIVED BY THE [DEPARTMENT
7 OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC
8 DEVELOPMENT BY CERTIFIED MAIL NOT LATER THAN MAY 31 OF EACH YEAR
9 TO SHOW NEW TAX ENACTMENTS, REPEALS AND CHANGES. FAILURE TO
10 COMPLY WITH THIS DATE FOR FILING MAY RESULT IN THE OMISSION OF
11 THE LEVY FROM THE REGISTER FOR THAT YEAR. FAILURE OF THE
12 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND
13 ECONOMIC DEVELOPMENT TO RECEIVE INFORMATION OF TAXES CONTINUED
14 WITHOUT CHANGE MAY BE CONSTRUED BY THE DEPARTMENT TO MEAN THAT
15 THE INFORMATION CONTAINED IN THE PREVIOUS REGISTER REMAINS IN
16 FORCE.
17 THE [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY
18 AND ECONOMIC DEVELOPMENT SHALL HAVE THE REGISTER WITH SUCH
19 ANNUAL SUPPLEMENTS AS MAY BE REQUIRED BY NEW TAX ENACTMENTS,
20 REPEALS OR CHANGES AVAILABLE UPON REQUEST NOT LATER THAN JULY 1
21 OF EACH YEAR. THE EFFECTIVE PERIOD FOR EACH REGISTER SHALL BE
22 FROM JULY 1 OF THE YEAR IN WHICH IT IS ISSUED TO JUNE 30 OF THE
23 FOLLOWING YEAR.
24 EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL ORDINANCE TO
25 WITHHOLD FROM THE WAGES, SALARIES, COMMISSIONS OR OTHER
26 COMPENSATION OF THEIR EMPLOYES ANY TAX IMPOSED UNDER THE
27 PROVISIONS OF THIS ACT, WHICH IS NOT LISTED IN THE REGISTER, OR
28 MAKE REPORTS OF WAGES, SALARIES, COMMISSIONS OR OTHER
29 COMPENSATION IN CONNECTION WITH TAXES NOT SO LISTED: PROVIDED,
30 THAT IF THE REGISTER IS NOT AVAILABLE BY JULY 1, THE REGISTER OF
20050S0157B1401 - 31 -
1 THE PREVIOUS YEAR SHALL CONTINUE TEMPORARILY IN EFFECT FOR AN
2 ADDITIONAL PERIOD NOT TO EXCEED ONE YEAR. THE PROVISIONS OF THIS
3 SECTION SHALL NOT AFFECT THE LIABILITY OF ANY TAXPAYER FOR TAXES
4 LAWFULLY IMPOSED UNDER THIS ACT.
5 ORDINANCES OR RESOLUTIONS IMPOSING EARNED INCOME [OR],
6 OCCUPATIONAL PRIVILEGE OR MUNICIPAL SERVICES TAXES UNDER
7 AUTHORITY OF THIS ACT MAY CONTAIN PROVISIONS REQUIRING EMPLOYERS
8 DOING BUSINESS WITHIN THE JURISDICTION OF THE POLITICAL
9 SUBDIVISION IMPOSING THE TAX TO WITHHOLD THE TAX FROM THE
10 COMPENSATION OF THOSE OF THEIR EMPLOYES WHO ARE SUBJECT TO THE
11 TAX: PROVIDED, THAT NO EMPLOYER SHALL BE HELD LIABLE FOR FAILURE
12 TO WITHHOLD EARNED INCOME TAXES OR FOR THE PAYMENT OF SUCH
13 WITHHELD TAX MONEY TO A POLITICAL SUBDIVISION OTHER THAN THE
14 POLITICAL SUBDIVISION ENTITLED TO RECEIVE SUCH MONEY IF SUCH
15 FAILURE TO WITHHOLD OR SUCH INCORRECT TRANSMITTAL OF WITHHELD
16 TAXES ARISES FROM INCORRECT INFORMATION AS TO THE EMPLOYE'S
17 PLACE OF RESIDENCE SUBMITTED BY THE EMPLOYE: AND PROVIDED
18 FURTHER, THAT EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL
19 ORDINANCE TO WITHHOLD FROM COMPENSATION FOR ANY ONE OF THEIR
20 EMPLOYES FOR THE OCCUPATIONAL PRIVILEGE TAX MORE THAN ONE TIME
21 IN ANY FISCAL PERIOD: AND PROVIDED FURTHER, THAT THE
22 OCCUPATIONAL PRIVILEGE AND MUNICIPAL SERVICES TAX SHALL BE
23 APPLICABLE TO EMPLOYMENT IN THE PERIOD BEGINNING JANUARY 1, OF
24 THE CURRENT YEAR AND ENDING DECEMBER 31 OF THE CURRENT YEAR,
25 EXCEPT THAT TAXES IMPOSED FOR THE FIRST TIME SHALL BECOME
26 EFFECTIVE FROM THE DATE SPECIFIED IN THE ORDINANCE OR
27 RESOLUTION, AND THE TAX SHALL CONTINUE IN FORCE ON A CALENDAR
28 YEAR BASIS.
29 SECTION 5. SECTION 19 OF THE ACT, AMENDED OCTOBER 4, 1978
30 (P.L.930, NO.177), IS AMENDED TO READ:
20050S0157B1401 - 32 -
1 SECTION 19. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION,
2 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME
3 TAXES FROM EMPLOYERS, ETC.--THE TAX COLLECTOR SHALL DEMAND,
4 RECEIVE AND COLLECT FROM ALL CORPORATIONS, POLITICAL
5 SUBDIVISIONS, ASSOCIATIONS, COMPANIES, FIRMS OR INDIVIDUALS,
6 EMPLOYING PERSONS OWING DELINQUENT PER CAPITA, OR OCCUPATION,
7 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME
8 TAXES, OR WHOSE SPOUSE OWES DELINQUENT PER CAPITA, OCCUPATION,
9 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME
10 TAXES, OR HAVING IN POSSESSION UNPAID COMMISSIONS OR EARNINGS
11 BELONGING TO ANY PERSON OR PERSONS OWING DELINQUENT PER CAPITA,
12 OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND
13 EARNED INCOME TAXES, OR WHOSE SPOUSE OWES DELINQUENT PER CAPITA,
14 OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND
15 EARNED INCOME TAXES, UPON THE PRESENTATION OF A WRITTEN NOTICE
16 AND DEMAND CERTIFYING THAT THE INFORMATION CONTAINED THEREIN IS
17 TRUE AND CORRECT AND CONTAINING THE NAME OF THE TAXABLE OR THE
18 SPOUSE THEREOF AND THE AMOUNT OF TAX DUE. UPON THE PRESENTATION
19 OF SUCH WRITTEN NOTICE AND DEMAND, IT SHALL BE THE DUTY OF ANY
20 SUCH CORPORATION, POLITICAL SUBDIVISION, ASSOCIATION, COMPANY,
21 FIRM OR INDIVIDUAL TO DEDUCT FROM THE WAGES, COMMISSIONS OR
22 EARNINGS OF SUCH INDIVIDUAL EMPLOYES, THEN OWING OR THAT SHALL
23 WITHIN SIXTY DAYS THEREAFTER BECOME DUE, OR FROM ANY UNPAID
24 COMMISSIONS OR EARNINGS OF ANY SUCH TAXABLE IN ITS OR HIS
25 POSSESSION, OR THAT SHALL WITHIN SIXTY DAYS THEREAFTER COME INTO
26 ITS OR HIS POSSESSION, A SUM SUFFICIENT TO PAY THE RESPECTIVE
27 AMOUNT OF THE DELINQUENT PER CAPITA, OCCUPATION, OCCUPATIONAL
28 PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME TAXES AND COSTS,
29 SHOWN UPON THE WRITTEN NOTICE OR DEMAND, AND TO PAY THE SAME TO
30 THE TAX COLLECTOR OF THE TAXING DISTRICT IN WHICH SUCH
20050S0157B1401 - 33 -
1 DELINQUENT TAX WAS LEVIED WITHIN SIXTY DAYS AFTER SUCH NOTICE
2 SHALL HAVE BEEN GIVEN. NO MORE THAN TEN PERCENT OF THE WAGES,
3 COMMISSIONS OR EARNINGS OF THE DELINQUENT TAXPAYER OR SPOUSE
4 THEREOF MAY BE DEDUCTED AT ANY ONE TIME FOR DELINQUENT PER
5 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES
6 AND EARNED INCOME TAXES AND COSTS. SUCH CORPORATION, POLITICAL
7 SUBDIVISION, ASSOCIATION, FIRM OR INDIVIDUAL SHALL BE ENTITLED
8 TO DEDUCT FROM THE MONEYS COLLECTED FROM EACH EMPLOYE THE COSTS
9 INCURRED FROM THE EXTRA BOOKKEEPING NECESSARY TO RECORD SUCH
10 TRANSACTIONS, NOT EXCEEDING TWO PERCENT OF THE AMOUNT OF MONEY
11 SO COLLECTED AND PAID OVER TO THE TAX COLLECTOR. UPON THE
12 FAILURE OF ANY SUCH CORPORATION, POLITICAL SUBDIVISION,
13 ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL TO DEDUCT THE AMOUNT OF
14 SUCH TAXES OR TO PAY THE SAME OVER TO THE TAX COLLECTOR, LESS
15 THE COST OF BOOKKEEPING INVOLVED IN SUCH TRANSACTION, AS HEREIN
16 PROVIDED, WITHIN THE TIME HEREBY REQUIRED, SUCH CORPORATION,
17 POLITICAL SUBDIVISION, ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL
18 SHALL FORFEIT AND PAY THE AMOUNT OF SUCH TAX FOR EACH SUCH
19 TAXABLE WHOSE TAXES ARE NOT WITHHELD AND PAID OVER, OR THAT ARE
20 WITHHELD AND NOT PAID OVER TOGETHER WITH A PENALTY OF TEN
21 PERCENT ADDED THERETO, TO BE RECOVERED BY AN ACTION OF ASSUMPSIT
22 IN A SUIT TO BE INSTITUTED BY THE TAX COLLECTOR, OR BY THE
23 PROPER AUTHORITIES OF THE TAXING DISTRICT, AS DEBTS OF LIKE
24 AMOUNT ARE NOW BY LAW RECOVERABLE, EXCEPT THAT SUCH PERSON SHALL
25 NOT HAVE THE BENEFIT OF ANY STAY OF EXECUTION OR EXEMPTION LAW.
26 THE TAX COLLECTOR SHALL NOT PROCEED AGAINST A SPOUSE OR HIS
27 EMPLOYER UNTIL HE HAS PURSUED COLLECTION REMEDIES AGAINST THE
28 DELINQUENT TAXPAYER AND HIS EMPLOYER UNDER THIS SECTION.
29 SECTION 6. SECTION 20 OF THE ACT IS AMENDED TO READ:
30 SECTION 20. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION,
20050S0157B1401 - 34 -
1 OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND EARNED INCOME
2 TAXES FROM THE COMMONWEALTH.--UPON PRESENTATION OF A WRITTEN
3 NOTICE AND DEMAND UNDER OATH OR AFFIRMATION, TO THE STATE
4 TREASURER OR ANY OTHER FISCAL OFFICER OF THE STATE, OR ITS
5 BOARDS, AUTHORITIES, AGENCIES OR COMMISSIONS, IT SHALL BE THE
6 DUTY OF THE TREASURER OR OFFICER TO DEDUCT FROM THE WAGES THEN
7 OWING, OR THAT SHALL WITHIN SIXTY DAYS THEREAFTER BECOME DUE TO
8 ANY EMPLOYE, A SUM SUFFICIENT TO PAY THE RESPECTIVE AMOUNT OF
9 THE DELINQUENT PER CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE,
10 MUNICIPAL SERVICES AND EARNED INCOME TAXES AND COSTS SHOWN ON
11 THE WRITTEN NOTICE. THE SAME SHALL BE PAID TO THE TAX COLLECTOR
12 OF THE TAXING DISTRICT IN WHICH SAID DELINQUENT TAX WAS LEVIED
13 WITHIN SIXTY DAYS AFTER SUCH NOTICE SHALL HAVE BEEN GIVEN.
14 SECTION 7. SECTION 22.1 OF THE ACT, ADDED NOVEMBER 30, 2004
15 (P.L.1520, NO.192), IS AMENDED TO READ:
16 SECTION 22.1. COSTS OF COLLECTION OF DELINQUENT PER CAPITA,
17 OCCUPATION, OCCUPATIONAL PRIVILEGE, MUNICIPAL SERVICES AND
18 EARNED INCOME TAXES.--(A) A PERSON, PUBLIC EMPLOYE OR PRIVATE
19 AGENCY DESIGNATED BY A GOVERNING BODY OF A POLITICAL SUBDIVISION
20 TO COLLECT AND ADMINISTER A PER CAPITA, OCCUPATION, OCCUPATIONAL
21 PRIVILEGE, MUNICIPAL SERVICES OR EARNED INCOME TAX MAY IMPOSE
22 AND COLLECT THE REASONABLE COSTS INCURRED TO PROVIDE NOTICES OF
23 DELINQUENCY OR TO IMPLEMENT SIMILAR PROCEDURES UTILIZED TO
24 COLLECT DELINQUENT TAXES FROM A TAXPAYER AS APPROVED BY THE
25 GOVERNING BODY OF THE POLITICAL SUBDIVISION. REASONABLE COSTS
26 COLLECTED MAY BE RETAINED BY THE PERSON, PUBLIC EMPLOYE OR
27 PRIVATE AGENCY DESIGNATED TO COLLECT THE TAX AS AGREED TO BY THE
28 GOVERNING BODY OF THE POLITICAL SUBDIVISION. AN ITEMIZED
29 ACCOUNTING OF ALL COSTS COLLECTED SHALL BE REMITTED TO THE
30 POLITICAL SUBDIVISION ON AN ANNUAL BASIS.
20050S0157B1401 - 35 -
1 (B) COSTS RELATED TO THE COLLECTION OF UNPAID PER CAPITA,
2 OCCUPATION [OR], OCCUPATIONAL PRIVILEGE OR MUNICIPAL SERVICES
3 TAXES MAY ONLY BE ASSESSED, LEVIED AND COLLECTED FOR FIVE YEARS
4 FROM THE LAST DAY OF THE CALENDAR YEAR IN WHICH THE TAX WAS DUE.
5 (C) A DELINQUENT TAXPAYER MAY NOT BRING AN ACTION FOR
6 REIMBURSEMENT, REFUND OR ELIMINATION OF REASONABLE COSTS OF
7 COLLECTION ASSESSED OR IMPOSED PRIOR TO THE EFFECTIVE DATE OF
8 THIS SECTION. ADDITIONAL COSTS MAY NOT BE ASSESSED ON DELINQUENT
9 TAXES COLLECTED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
10 SECTION 8. SECTION 22.5 OF THE ACT, ADDED DECEMBER 1, 2004
11 (P.L.1729, NO.222), IS AMENDED TO READ:
12 [SECTION 22.5. RESTRICTED USE.--(A) ANY MUNICIPALITY
13 DERIVING FUNDS FROM THE EMERGENCY AND MUNICIPAL SERVICES TAX MAY
14 ONLY USE THE FUNDS FOR:
15 (1) POLICE, FIRE AND/OR EMERGENCY SERVICES;
16 (2) ROAD CONSTRUCTION AND/OR MAINTENANCE; OR
17 (3) REDUCTION OF PROPERTY TAXES.
18 (B) FOR THE PURPOSE OF THE EMERGENCY AND MUNICIPAL SERVICES
19 TAX, THE TERM MUNICIPALITY DOES NOT INCLUDE A SCHOOL DISTRICT.]
20 SECTION 9. ANY ORDINANCE OR RESOLUTION PROVIDING FOR THE
21 LEVYING, ASSESSMENT OR COLLECTION OF A TAX ON INDIVIDUALS FOR
22 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION WHICH HAS BEEN
23 ENACTED BY A POLITICAL SUBDIVISION PRIOR TO DECEMBER 1, 2004,
24 SHALL CONTINUE IN FULL FORCE AND EFFECT, WITHOUT REENACTMENT, AS
25 IF SUCH TAX HAD BEEN LEVIED, ASSESSED OR COLLECTED AS A
26 MUNICIPAL SERVICES TAX UNDER SECTION 2(9) OF THE ACT. ALL
27 REFERENCES IN ANY ORDINANCE OR RESOLUTION TO A TAX ON THE
28 PRIVILEGE OF ENGAGING IN AN OCCUPATION SHALL BE DEEMED TO BE A
29 REFERENCE TO A MUNICIPAL SERVICES TAX FOR THE PURPOSES OF THE
30 ACT.
20050S0157B1401 - 36 -
1 SECTION 10. THE AMENDMENT OR ADDITION OF THE FOLLOWING
2 PROVISIONS SHALL APPLY TO TAXES LEVIED FOR CALENDAR YEAR 2006:
3 (1) THE AMENDMENT OF SECTION 2 OF THE ACT.
4 (2) THE AMENDMENT OF SECTION 8 OF THE ACT.
5 (3) THE AMENDMENT OF SECTION 9 OF THE ACT, EXCEPT FOR
6 ANY EDITORIAL AMENDMENT CHANGING THE REFERENCE FROM THE
7 DEPARTMENT OF COMMUNITY AFFAIRS TO THE DEPARTMENT OF
8 COMMUNITY AND ECONOMIC DEVELOPMENT.
9 (4) THE AMENDMENT OF SECTION 19 OF THE ACT.
10 (5) THE AMENDMENT OF SECTION 20 OF THE ACT.
11 (6) THE AMENDMENT OF SECTION 22.1 OF THE ACT.
12 (7) THE AMENDMENT OF SECTION 22.5 OF THE ACT.
13 SECTION 11. REPEALS ARE AS FOLLOWS:
14 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
15 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE AMENDMENT OF
16 SECTION 2(9) OF THE ACT.
17 (2) SECTION 6 OF THE ACT OF DECEMBER 1, 2004 (P.L.1729,
18 NO.222), ENTITLED "AN ACT AMENDING THE ACT OF DECEMBER 31,
19 1965 (P.L.1257, NO.511), ENTITLED 'AN ACT EMPOWERING CITIES
20 OF THE SECOND CLASS, CITIES OF THE SECOND CLASS A, CITIES OF
21 THE THIRD CLASS, BOROUGHS, TOWNS, TOWNSHIPS OF THE FIRST
22 CLASS, TOWNSHIPS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE
23 SECOND CLASS, SCHOOL DISTRICTS OF THE THIRD CLASS AND SCHOOL
24 DISTRICTS OF THE FOURTH CLASS INCLUDING INDEPENDENT SCHOOL
25 DISTRICTS, TO LEVY, ASSESS, COLLECT OR TO PROVIDE FOR THE
26 LEVYING, ASSESSMENT AND COLLECTION OF CERTAIN TAXES SUBJECT
27 TO MAXIMUM LIMITATIONS FOR GENERAL REVENUE PURPOSES;
28 AUTHORIZING THE ESTABLISHMENT OF BUREAUS AND THE APPOINTMENT
29 AND COMPENSATION OF OFFICERS, AGENCIES AND EMPLOYES TO ASSESS
30 AND COLLECT SUCH TAXES; PROVIDING FOR JOINT COLLECTION OF
20050S0157B1401 - 37 -
1 CERTAIN TAXES, PRESCRIBING CERTAIN DEFINITIONS AND OTHER
2 PROVISIONS FOR TAXES LEVIED AND ASSESSED UPON EARNED INCOME,
3 PROVIDING FOR ANNUAL AUDITS AND FOR COLLECTION OF DELINQUENT
4 TAXES, AND PERMITTING AND REQUIRING PENALTIES TO BE IMPOSED
5 AND ENFORCED, INCLUDING PENALTIES FOR DISCLOSURE OF
6 CONFIDENTIAL INFORMATION, PROVIDING AN APPEAL FROM THE
7 ORDINANCE OR RESOLUTION LEVYING SUCH TAXES TO THE COURT OF
8 QUARTER SESSIONS AND TO THE SUPREME COURT AND SUPERIOR
9 COURT,' FURTHER PROVIDING FOR DELEGATION OF TAXING POWERS AND
10 RESTRICTIONS THEREON; PROVIDING FOR NONRESIDENT SPORTS
11 FACILITY USAGE FEE, FOR PARKING TAX RATES AND FOR PAYROLL
12 TAXES; FURTHER PROVIDING FOR LIMITATIONS ON RATES OF SPECIFIC
13 TAXES AND FOR THE APPOINTMENT OF A SINGLE COLLECTOR OF TAXES;
14 FURTHER PROVIDING FOR THE APPLICABILITY OF PETITIONS UNDER
15 THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE
16 MUNICIPALITIES FINANCIAL RECOVERY ACT; AND MAKING A REPEAL,"
17 IS REPEALED.
18 SECTION 12. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
19 SECTION 1. SECTION 2 OF THE ACT OF DECEMBER 31, 1965 <--
20 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AMENDED
21 DECEMBER 1, 2004 (P.L.1729, NO.222), IS AMENDED TO READ:
22 SECTION 2. DELEGATION OF TAXING POWERS AND RESTRICTIONS
23 THEREON.--THE DULY CONSTITUTED AUTHORITIES OF THE FOLLOWING
24 POLITICAL SUBDIVISIONS, CITIES OF THE SECOND CLASS, CITIES OF
25 THE SECOND CLASS A, CITIES OF THE THIRD CLASS, BOROUGHS, TOWNS,
26 TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS,
27 SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE
28 THIRD CLASS, AND SCHOOL DISTRICTS OF THE FOURTH CLASS, IN ALL
29 CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS, MAY, IN THEIR
30 DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL REVENUE
20050S0157B1401 - 38 -
1 PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
2 ASSESSMENT AND COLLECTION OF SUCH TAXES AS THEY SHALL DETERMINE
3 ON PERSONS, TRANSACTIONS, OCCUPATIONS, PRIVILEGES, SUBJECTS AND
4 PERSONAL PROPERTY WITHIN THE LIMITS OF SUCH POLITICAL
5 SUBDIVISIONS, AND UPON THE TRANSFER OF REAL PROPERTY, OR OF ANY
6 INTEREST IN REAL PROPERTY, SITUATE WITHIN THE POLITICAL
7 SUBDIVISION LEVYING AND ASSESSING THE TAX, REGARDLESS OF WHERE
8 THE INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR
9 DELIVERED OR WHERE THE ACTUAL SETTLEMENTS ON SUCH TRANSFER TAKE
10 PLACE. THE TAXING AUTHORITY MAY PROVIDE THAT THE TRANSFEREE
11 SHALL REMAIN LIABLE FOR ANY UNPAID REALTY TRANSFER TAXES IMPOSED
12 BY VIRTUE OF THIS ACT. EACH LOCAL TAXING AUTHORITY MAY, BY
13 ORDINANCE OR RESOLUTION, EXEMPT ANY PERSON WHOSE TOTAL INCOME
14 FROM ALL SOURCES IS LESS THAN TWELVE THOUSAND DOLLARS ($12,000)
15 PER ANNUM FROM THE PER CAPITA OR SIMILAR HEAD TAX, OCCUPATION
16 TAX [AND EMERGENCY AND MUNICIPAL SERVICES TAX], OR EARNED INCOME
17 TAX, OR ANY PORTION THEREOF, AND MAY ADOPT REGULATIONS FOR THE
18 PROCESSING OF CLAIMS FOR EXEMPTIONS. EACH POLITICAL SUBDIVISION
19 SHALL BY ORDINANCE OR RESOLUTION EXEMPT ANY PERSON FROM THE
20 LOCAL SERVICES TAX WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS
21 THAN TWELVE THOUSAND DOLLARS ($12,000) FOR THE CALENDAR YEAR IN
22 WHICH THE LOCAL SERVICES TAX IS LEVIED, AND SHALL ADOPT
23 REGULATIONS FOR THE PROCESSING OF REFUND CLAIMS FOR A LOCAL
24 SERVICES TAX PAID BY ANY PERSON WHO IS ELIGIBLE FOR THE
25 EXEMPTION. THE REGULATIONS SHALL BE CONSISTENT WITH 53 PA.C.S.
26 §§ 8425 (RELATING TO REFUNDS OF OVERPAYMENTS) AND 8426 (RELATING
27 TO INTEREST ON OVERPAYMENT). THE DATE OF OVERPAYMENT FOR A LOCAL
28 SERVICES TAX SHALL BE THE DATE THE TAX WAS DEDUCTED AND WITHHELD
29 AT SOURCE. REFUNDS MADE WITHIN SEVENTY-FIVE DAYS OF A REFUND
30 REQUEST OR SEVENTY-FIVE DAYS AFTER THE LAST DAY THE EMPLOYER IS
20050S0157B1401 - 39 -
1 REQUIRED TO REMIT THE LOCAL SERVICES TAX FOR THE LAST QUARTER OF
2 THE CALENDAR YEAR UNDER SECTION 9 OF THIS ACT, WHICHEVER IS
3 LATER, SHALL NOT BE SUBJECT TO INTEREST IMPOSED UNDER 53 PA.C.S.
4 § 8426. IT IS THE INTENT OF THIS SECTION THAT A POLITICAL
5 SUBDIVISION OR ITS TAX OFFICER DETERMINE ELIGIBILITY FOR THE
6 EXEMPTION AND PROVIDE REFUNDS TO EXEMPT PERSONS FROM THE LOCAL
7 SERVICES TAX AND THAT EMPLOYERS SHALL NOT BE RESPONSIBLE FOR
8 PROCESSING THE EXEMPTION OR EXEMPTING ANY EMPLOYE FROM THE LOCAL
9 SERVICES TAX. FOR PURPOSES OF THIS SECTION, "INCOME FROM ALL
10 SOURCES" SHALL MEAN "INCOME" AS DEFINED IN SECTION 3 OF THE ACT
11 OF MARCH 11, 1971 (P.L.104, NO.3), KNOWN AS THE SENIOR CITIZENS
12 REBATE AND ASSISTANCE ACT. THE DEPARTMENT OF COMMUNITY AND
13 ECONOMIC DEVELOPMENT SHALL DEVELOP UNIFORM FORMS TO BE USED BY
14 POLITICAL SUBDIVISIONS TO FACILITATE THE REFUND OF THE TAX TO
15 ANY PERSON ELIGIBLE FOR THE EXEMPTION. SUCH LOCAL AUTHORITIES
16 SHALL NOT HAVE AUTHORITY BY VIRTUE OF THIS ACT:
17 (1) TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
18 ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF REAL
19 PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE
20 INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE
21 OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER
22 OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED
23 RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART
24 OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY
25 UNOCCUPIED SINGLE FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER
26 BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE
27 HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS
28 THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL
29 DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM
30 THEM, OR ON TRANSFER TO OR FROM NONPROFIT INDUSTRIAL DEVELOPMENT
20050S0157B1401 - 40 -
1 AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A
2 TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE
3 BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE
4 WITHIN THREE MONTHS OF THE DATE OF THE GRANTING OF THE FINAL
5 DECREE IN DIVORCE, OR THE DECREE OF EQUITABLE DISTRIBUTION OF
6 MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR
7 INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE
8 HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF
9 THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND
10 CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND
11 TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD,
12 OR ON A TRANSFER BETWEEN A GRANDPARENT AND GRANDCHILD OR THE
13 SPOUSE OF SUCH GRANDCHILD, OR ON A TRANSFER BETWEEN BROTHER AND
14 SISTER OR BROTHER AND BROTHER OR SISTER AND SISTER OR THE SPOUSE
15 OF SUCH BROTHER OR SISTER, OR ON A TRANSFER TO A CONSERVANCY
16 WHICH POSSESSES A TAX-EXEMPT STATUS PURSUANT TO SECTION
17 501(C)(3) OF THE INTERNAL REVENUE CODE, AND WHICH HAS AS ITS
18 PRIMARY PURPOSE THE PRESERVATION OF LAND FOR HISTORIC,
19 RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN SPACE OPPORTUNITIES,
20 BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF
21 PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A
22 CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE
23 UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF
24 THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY
25 GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION, OR DEED OF
26 CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS, OR
27 RECONVEYANCE BY THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO
28 THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH
29 RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID
30 RECONVEYANCE IS MADE WITHIN ONE YEAR FROM THE DATE OF
20050S0157B1401 - 41 -
1 CONDEMNATION, LEASES, OR ON A CONVEYANCE TO A TRUSTEE UNDER A
2 RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING
3 TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF
4 THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND
5 REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR-
6 BORROWER UPON THE REPAYMENT OF THE DEBT, OR A TRANSFER WITHIN A
7 FAMILY FROM A SOLE PROPRIETOR FAMILY MEMBER TO A FAMILY FARM
8 CORPORATION, OR IN ANY SHERIFF SALE INSTITUTED BY A MORTGAGEE IN
9 WHICH THE PURCHASER OF SAID SHERIFF SALE IS THE MORTGAGEE WHO
10 INSTITUTED SAID SALE, OR ON A PRIVILEGE, TRANSACTION, SUBJECT,
11 OCCUPATION OR PERSONAL PROPERTY WHICH IS NOW OR DOES HEREAFTER
12 BECOME SUBJECT TO A STATE TAX OR LICENSE FEE;
13 (2) TO LEVY, ASSESS OR COLLECT A TAX ON THE GROSS RECEIPTS
14 FROM UTILITY SERVICE OF ANY PERSON OR COMPANY WHOSE RATES AND
15 SERVICES ARE FIXED AND REGULATED BY THE PENNSYLVANIA PUBLIC
16 UTILITY COMMISSION OR ON ANY PUBLIC UTILITY SERVICES RENDERED BY
17 ANY SUCH PERSON OR COMPANY OR ON ANY PRIVILEGE OR TRANSACTION
18 INVOLVING THE RENDERING OF ANY SUCH PUBLIC UTILITY SERVICE;
19 (3) EXCEPT ON SALES OF ADMISSION TO PLACES OF AMUSEMENT OR
20 ON SALES OR OTHER TRANSFERS OF TITLE OR POSSESSION OF PROPERTY,
21 TO LEVY, ASSESS OR COLLECT A TAX ON THE PRIVILEGE OF EMPLOYING
22 SUCH TANGIBLE PROPERTY AS IS NOW OR DOES HEREAFTER BECOME
23 SUBJECT TO A STATE TAX; AND FOR THE PURPOSES OF THIS CLAUSE,
24 REAL PROPERTY RENTED FOR CAMPING PURPOSES SHALL NOT BE
25 CONSIDERED A PLACE OF AMUSEMENT.
26 (4) TO LEVY, ASSESS AND COLLECT A TAX ON GOODS AND ARTICLES
27 MANUFACTURED IN SUCH POLITICAL SUBDIVISION OR ON THE BY-PRODUCTS
28 OF MANUFACTURE, OR ON MINERALS, TIMBER, NATURAL RESOURCES AND
29 FARM PRODUCTS PRODUCED IN SUCH POLITICAL SUBDIVISION OR ON THE
30 PREPARATION OR PROCESSING THEREOF FOR USE OR MARKET, OR ON ANY
20050S0157B1401 - 42 -
1 PRIVILEGE, ACT OR TRANSACTION RELATED TO THE BUSINESS OF
2 MANUFACTURING, THE PRODUCTION, PREPARATION OR PROCESSING OF
3 MINERALS, TIMBER AND NATURAL RESOURCES, OR FARM PRODUCTS, BY
4 MANUFACTURERS, BY PRODUCERS AND BY FARMERS WITH RESPECT TO THE
5 GOODS, ARTICLES AND PRODUCTS OF THEIR OWN MANUFACTURE,
6 PRODUCTION OR GROWTH, OR ON ANY PRIVILEGE, ACT OR TRANSACTION
7 RELATING TO THE BUSINESS OF PROCESSING BY-PRODUCTS OF
8 MANUFACTURE, OR ON THE TRANSPORTATION, LOADING, UNLOADING OR
9 DUMPING OR STORAGE OF SUCH GOODS, ARTICLES, PRODUCTS OR BY-
10 PRODUCTS; EXCEPT THAT LOCAL AUTHORITIES MAY LEVY, ASSESS AND
11 COLLECT [AN EMERGENCY AND MUNICIPAL] A LOCAL SERVICES TAX AND
12 TAXES ON THE OCCUPATION, PER CAPITA AND EARNED INCOME OR NET
13 PROFITS OF NATURAL PERSONS ENGAGED IN THE ABOVE ACTIVITIES
14 WHETHER DOING BUSINESS AS INDIVIDUAL PROPRIETORSHIP OR AS
15 MEMBERS OF PARTNERSHIPS OR OTHER ASSOCIATIONS;
16 (5) TO LEVY, ASSESS OR COLLECT A TAX ON SALARIES, WAGES,
17 COMMISSIONS, COMPENSATION AND EARNED INCOME OF NONRESIDENTS OF
18 THE POLITICAL SUBDIVISIONS: PROVIDED, THAT THIS LIMITATION (5)
19 SHALL APPLY ONLY TO SCHOOL DISTRICTS OF THE SECOND, THIRD AND
20 FOURTH CLASSES;
21 (6) TO LEVY, ASSESS OR COLLECT A TAX ON PERSONAL PROPERTY
22 SUBJECT TO TAXATION BY COUNTIES OR ON PERSONAL PROPERTY OWNED BY
23 PERSONS, ASSOCIATIONS AND CORPORATIONS SPECIFICALLY EXEMPTED BY
24 LAW FROM TAXATION UNDER THE COUNTY PERSONAL PROPERTY TAX LAW:
25 PROVIDED, THAT THIS LIMITATION (6) SHALL NOT APPLY TO CITIES OF
26 THE SECOND CLASS;
27 (7) TO LEVY, ASSESS OR COLLECT A TAX ON MEMBERSHIP IN OR
28 MEMBERSHIP DUES, FEES OR ASSESSMENT OF CHARITABLE, RELIGIOUS,
29 BENEFICIAL OR NONPROFIT ORGANIZATIONS INCLUDING BUT NOT LIMITED
30 TO SPORTSMENS, RECREATIONAL, GOLF AND TENNIS CLUBS, GIRL AND BOY
20050S0157B1401 - 43 -
1 SCOUT TROOPS AND COUNCILS;
2 (8) TO LEVY, ASSESS OR COLLECT ANY TAX ON A MOBILEHOME OR
3 HOUSE TRAILER SUBJECT TO A REAL PROPERTY TAX UNLESS THE SAME TAX
4 IS LEVIED, ASSESSED AND COLLECTED ON OTHER REAL PROPERTY IN THE
5 POLITICAL SUBDIVISION.
6 (9) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR
7 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION ([EMERGENCY AND
8 MUNICIPAL] LOCAL SERVICES TAX) EXCEPT THAT SUCH A TAX MAY BE
9 LEVIED, ASSESSED AND COLLECTED ONLY BY THE POLITICAL SUBDIVISION
10 OF THE TAXPAYER'S PLACE OF EMPLOYMENT.
11 [PAYMENT OF ANY EMERGENCY AND MUNICIPAL SERVICES TAX TO ANY
12 POLITICAL SUBDIVISION BY ANY PERSON PURSUANT TO AN ORDINANCE OR
13 RESOLUTION PASSED OR ADOPTED UNDER THE AUTHORITY OF THIS ACT
14 SHALL BE NO LESS THAN TEN DOLLARS ($10) NOR MORE THAN FIFTY-TWO
15 DOLLARS ($52) ON EACH PERSON FOR EACH CALENDAR YEAR.
16 THE SITUS OF SUCH TAX SHALL BE THE PLACE OF EMPLOYMENT, BUT,
17 IN THE EVENT A PERSON IS ENGAGED IN MORE THAN ONE OCCUPATION, OR
18 AN OCCUPATION WHICH REQUIRES HIS WORKING IN MORE THAN ONE
19 POLITICAL SUBDIVISION DURING THE CALENDAR YEAR, THE PRIORITY OF
20 CLAIM TO COLLECT SUCH EMERGENCY AND MUNICIPAL SERVICES TAX SHALL
21 BE IN THE FOLLOWING ORDER: FIRST, THE POLITICAL SUBDIVISION IN
22 WHICH A PERSON MAINTAINS HIS PRINCIPAL OFFICE OR IS PRINCIPALLY
23 EMPLOYED; SECOND, THE POLITICAL SUBDIVISION IN WHICH THE PERSON
24 RESIDES AND WORKS, IF SUCH A TAX IS LEVIED BY THAT POLITICAL
25 SUBDIVISION; THIRD, THE POLITICAL SUBDIVISION IN WHICH A PERSON
26 IS EMPLOYED AND WHICH IMPOSES THE TAX NEAREST IN MILES TO THE
27 PERSON'S HOME. THE PLACE OF EMPLOYMENT SHALL BE DETERMINED AS OF
28 THE DAY THE TAXPAYER FIRST BECOMES SUBJECT TO THE TAX DURING THE
29 CALENDAR YEAR.
30 IT IS THE INTENT OF THIS PROVISION THAT NO PERSON SHALL PAY
20050S0157B1401 - 44 -
1 MORE THAN FIFTY-TWO DOLLARS ($52) IN ANY CALENDAR YEAR AS AN
2 EMERGENCY AND MUNICIPAL SERVICES TAX IRRESPECTIVE OF THE NUMBER
3 OF POLITICAL SUBDIVISIONS WITHIN WHICH SUCH PERSON MAY BE
4 EMPLOYED WITHIN ANY GIVEN CALENDAR YEAR.
5 IN CASE OF DISPUTE, A TAX RECEIPT OF THE TAXING AUTHORITY FOR
6 THAT CALENDAR YEAR DECLARING THAT THE TAXPAYER HAS MADE PRIOR
7 PAYMENT WHICH CONSTITUTES PRIMA FACIE CERTIFICATION OF PAYMENT
8 TO ALL OTHER POLITICAL SUBDIVISIONS.] THE FOLLOWING APPLY:
9 (I) FOR ANY PAYROLL PERIOD IN A CALENDAR YEAR, A POLITICAL
10 SUBDIVISION LEVYING A LOCAL SERVICES TAX PURSUANT TO AN
11 ORDINANCE OR A RESOLUTION UNDER THE AUTHORITY OF THIS ACT SHALL
12 COLLECT NO MORE THAN THE PRO RATA SHARE OF THE TAX LEVIED ON A
13 PERSON FOR A CALENDAR YEAR DETERMINED BY DIVIDING THE TAX LEVIED
14 ON A PERSON FOR THE CALENDAR YEAR BY THE NUMBER OF PAYROLL
15 PERIODS ESTABLISHED BY THE EMPLOYER FOR THE CALENDAR YEAR. FOR
16 PURPOSES OF DETERMINING THE PRO RATA SHARE, EMPLOYERS SHALL
17 ROUND DOWN THE AMOUNT OF THE TAX COLLECTED EACH PAYROLL PERIOD
18 TO THE NEAREST ONE-HUNDREDTH OF A DOLLAR. THE LOCAL SERVICES TAX
19 SHALL BE NO MORE THAN FIFTY-TWO DOLLARS ($52) ON EACH PERSON FOR
20 EACH CALENDAR YEAR, IRRESPECTIVE OF THE NUMBER OF POLITICAL
21 SUBDIVISIONS WITHIN WHICH A PERSON MAY BE EMPLOYED.
22 (II) IF A SCHOOL DISTRICT LEVIED AND COLLECTED AN EMERGENCY
23 AND MUNICIPAL SERVICES TAX ON THE EFFECTIVE DATE OF THIS
24 SUBCLAUSE, THE SCHOOL DISTRICT MAY CONTINUE TO LEVY A LOCAL
25 SERVICES TAX IN THE SAME AMOUNT THE SCHOOL DISTRICT COLLECTED ON
26 THE EFFECTIVE DATE OF THIS SUBCLAUSE, SUBJECT TO THE PRO RATA
27 LIMITATION BASED ON PAYROLL PERIODS OF SUBCLAUSE (I). HOWEVER,
28 IF A MUNICIPALITY LOCATED IN WHOLE OR IN PART WITHIN THE SCHOOL
29 DISTRICT SUBSEQUENTLY LEVIES THE LOCAL SERVICES TAX, THE SCHOOL
30 DISTRICT MAY ONLY COLLECT FIVE DOLLARS ($5) ON TAXPAYERS
20050S0157B1401 - 45 -
1 EMPLOYED WITHIN THE MUNICIPALITY EACH CALENDAR YEAR, SUBJECT TO
2 THE LIMITATIONS OF THIS CLAUSE. A SCHOOL DISTRICT THAT DID NOT
3 LEVY OR COLLECT A LOCAL SERVICES TAX ON THE EFFECTIVE DATE OF
4 THIS SUBCLAUSE SHALL BE PROHIBITED FROM LEVYING A LOCAL SERVICES
5 TAX. IF A SCHOOL DISTRICT AND A MUNICIPALITY LOCATED IN WHOLE OR
6 IN PART WITHIN THE SCHOOL DISTRICT BOTH LEVY A LOCAL SERVICES
7 TAX, THE SCHOOL DISTRICT'S PRO RATA SHARE OF THE AGGREGATE LOCAL
8 SERVICES TAXES LEVIED ON TAXPAYERS EMPLOYED WITHIN THE
9 MUNICIPALITY SHALL BE COLLECTED BY THE MUNICIPALITY OR ITS TAX
10 OFFICER BASED ON PAY PERIODS, AND PAID TO THE SCHOOL DISTRICT ON
11 A QUARTERLY BASIS WITHIN SIXTY DAYS OF RECEIPT BY THE
12 MUNICIPALITY OR ITS TAX OFFICER. IF A MUNICIPALITY LOCATED IN
13 WHOLE OR IN PART WITHIN A SCHOOL DISTRICT DOES NOT LEVY AND
14 COLLECT THE LOCAL SERVICES TAX, THE SCHOOL DISTRICT MAY PROVIDE
15 FOR COLLECTION OF THE LOCAL SERVICES TAX AS PROVIDED IN SECTION
16 10 OF THIS ACT.
17 (III) NO TAXPAYER SHALL BE SUBJECT TO THE PAYMENT OF THE
18 LOCAL SERVICES TAX BY MORE THAN ONE POLITICAL SUBDIVISION DURING
19 EACH PAYROLL PERIOD AS ESTABLISHED BY SUBCLAUSE (IV).
20 (IV) THE SITUS OF THE TAX SHALL BE THE PLACE OF EMPLOYMENT
21 ON THE FIRST DAY THE TAXPAYER BECOMES SUBJECT TO THE TAX DURING
22 EACH PAYROLL PERIOD IN A CALENDAR YEAR, BUT, IN THE EVENT A
23 PERSON IS ENGAGED IN MORE THAN ONE OCCUPATION, THAT IS,
24 CONCURRENT EMPLOYMENT, OR AN OCCUPATION WHICH REQUIRES THE
25 TAXPAYER WORKING IN MORE THAN ONE POLITICAL SUBDIVISION DURING A
26 PAYROLL PERIOD, THE PRIORITY OF CLAIM TO COLLECT THE LOCAL
27 SERVICES TAX SHALL BE IN THE FOLLOWING ORDER: FIRST, THE
28 POLITICAL SUBDIVISION IN WHICH A PERSON MAINTAINS THE PERSON'S
29 PRINCIPAL OFFICE OR IS PRINCIPALLY EMPLOYED; SECOND, THE
30 POLITICAL SUBDIVISION IN WHICH THE PERSON RESIDES AND WORKS, IF
20050S0157B1401 - 46 -
1 THE TAX IS LEVIED BY THAT POLITICAL SUBDIVISION; AND THIRD, THE
2 POLITICAL SUBDIVISION IN WHICH A PERSON IS EMPLOYED AND WHICH
3 IMPOSES THE TAX NEAREST IN MILES TO THE PERSON'S HOME.
4 (V) IN THE CASE OF CONCURRENT EMPLOYMENT, AN EMPLOYER SHALL
5 REFRAIN FROM WITHHOLDING THE LOCAL SERVICES TAX IF THE EMPLOYE
6 PROVIDES A RECENT PAY STATEMENT FROM A PRINCIPAL EMPLOYER THAT
7 INCLUDES THE NAME OF THE EMPLOYER, THE LENGTH OF THE PAY PERIOD
8 AND THE AMOUNT OF THE LOCAL SERVICES TAX WITHHELD, WHICH IS
9 ACCOMPANIED BY A STATEMENT FROM THE EMPLOYE THAT THE PAY
10 STATEMENT IS FROM THE EMPLOYE'S PRINCIPAL EMPLOYER AND THE
11 EMPLOYE WILL NOTIFY OTHER EMPLOYERS OF A CHANGE IN PRINCIPAL
12 PLACE OF EMPLOYMENT WITHIN TWO WEEKS OF ITS OCCURRENCE. THE
13 DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL DEVELOP A
14 UNIFORM EMPLOYE STATEMENT FORM.
15 (VI) POLITICAL SUBDIVISIONS SHALL ADOPT REGULATIONS FOR THE
16 PROCESSING OF REFUND CLAIMS FOR OVERPAID LOCAL SERVICES TAXES
17 FOR ANY CALENDAR YEAR. THE REGULATIONS SHALL BE CONSISTENT WITH
18 53 PA.C.S. §§ 8425 AND 8426. THE DATE OF OVERPAYMENT FOR A LOCAL
19 SERVICES TAX SHALL BE THE DATE THE TAX WAS DEDUCTED AND WITHHELD
20 AT SOURCE. REFUNDS MADE WITHIN SEVENTY-FIVE DAYS OF A REFUND
21 REQUEST OR SEVENTY-FIVE DAYS AFTER THE LAST DAY THE EMPLOYER IS
22 REQUIRED TO REMIT THE LOCAL SERVICES TAX FOR THE LAST QUARTER OF
23 THE CALENDAR YEAR UNDER SECTION 9 OF THIS ACT, WHICHEVER IS
24 LATER, SHALL NOT BE SUBJECT TO INTEREST IMPOSED UNDER 53 PA.C.S.
25 § 8426. POLITICAL SUBDIVISIONS SHALL ONLY PROVIDE REFUNDS FOR
26 AMOUNTS OVERPAID IN A CALENDAR YEAR THAT EXCEED ONE DOLLAR ($1).
27 (VII) THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
28 MAY PROVIDE SUGGESTED FORMS AND TECHNICAL ASSISTANCE TO
29 FACILITATE THE ADMINISTRATION OF THE LOCAL SERVICES TAX FOR
30 POLITICAL SUBDIVISIONS AND REDUCE THE BURDEN OF IMPLEMENTATION,
20050S0157B1401 - 47 -
1 ACCOUNTING AND COMPLIANCE FOR EMPLOYERS AND TAXPAYERS.
2 (10) TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO
3 MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10)
4 SHALL NOT APPLY TO CITIES OF THE SECOND CLASS.
5 (11) TO LEVY, ASSESS OR COLLECT A TAX ON THE CONSTRUCTION OF
6 OR IMPROVEMENT TO RESIDENTIAL DWELLINGS OR UPON THE APPLICATION
7 FOR OR ISSUANCE OF PERMITS FOR THE CONSTRUCTION OF OR
8 IMPROVEMENTS TO RESIDENTIAL DWELLINGS.
9 (12) TO LEVY, ASSESS AND COLLECT A MERCANTILE OR BUSINESS
10 PRIVILEGE TAX ON GROSS RECEIPTS OR PART THEREOF WHICH ARE: (I)
11 DISCOUNTS ALLOWED TO PURCHASERS AS CASH DISCOUNTS FOR PROMPT
12 PAYMENT OF THEIR BILLS; (II) CHARGES ADVANCED BY A SELLER FOR
13 FREIGHT, DELIVERY OR OTHER TRANSPORTATION FOR THE PURCHASER IN
14 ACCORDANCE WITH THE TERMS OF A CONTRACT OF SALE; (III) RECEIVED
15 UPON THE SALE OF AN ARTICLE OF PERSONAL PROPERTY WHICH WAS
16 ACQUIRED BY THE SELLER AS A TRADE-IN TO THE EXTENT THAT THE
17 GROSS RECEIPTS IN THE SALE OF THE ARTICLE TAKEN IN TRADE DOES
18 NOT EXCEED THE AMOUNT OF TRADE-IN ALLOWANCE MADE IN ACQUIRING
19 SUCH ARTICLE; (IV) REFUNDS, CREDITS OR ALLOWANCES GIVEN TO A
20 PURCHASER ON ACCOUNT OF DEFECTS IN GOODS SOLD OR MERCHANDISE
21 RETURNED; (V) PENNSYLVANIA SALES TAX; (VI) BASED ON THE VALUE OF
22 EXCHANGES OR TRANSFERS BETWEEN ONE SELLER AND ANOTHER SELLER WHO
23 TRANSFERS PROPERTY WITH THE UNDERSTANDING THAT PROPERTY OF AN
24 IDENTICAL DESCRIPTION WILL BE RETURNED AT A SUBSEQUENT DATE;
25 HOWEVER, WHEN SELLERS ENGAGED IN SIMILAR LINES OF BUSINESS
26 EXCHANGE PROPERTY AND ONE OF THEM MAKES PAYMENT TO THE OTHER IN
27 ADDITION TO THE PROPERTY EXCHANGED, THE ADDITIONAL PAYMENT
28 RECEIVED MAY BE INCLUDED IN THE GROSS RECEIPTS OF THE SELLER
29 RECEIVING SUCH ADDITIONAL CASH PAYMENTS; (VII) OF SELLERS FROM
30 SALES TO OTHER SELLERS IN THE SAME LINE WHERE THE SELLER
20050S0157B1401 - 48 -
1 TRANSFERS THE TITLE OR POSSESSION AT THE SAME PRICE FOR WHICH
2 THE SELLER ACQUIRED THE MERCHANDISE; OR (VIII) TRANSFERS BETWEEN
3 ONE DEPARTMENT, BRANCH OR DIVISION OF A CORPORATION OR OTHER
4 BUSINESS ENTITY OF GOODS, WARES AND MERCHANDISE TO ANOTHER
5 DEPARTMENT, BRANCH OR DIVISION OF THE SAME CORPORATION OR
6 BUSINESS ENTITY AND WHICH ARE RECORDED ON THE BOOKS TO REFLECT
7 SUCH INTERDEPARTMENTAL TRANSACTIONS.
8 (13) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
9 TAX ON MEMBERSHIP, MEMBERSHIP DUES, FEES OR ASSESSMENTS,
10 DONATIONS, CONTRIBUTIONS OR MONETARY CHARGES OF ANY CHARACTER
11 WHATSOEVER PAID BY THE GENERAL PUBLIC, OR A LIMITED OR SELECTED
12 NUMBER THEREOF, FOR SUCH PERSONS TO ENTER INTO ANY PLACE,
13 INDOORS OR OUTDOORS, TO ENGAGE IN ANY ACTIVITIES, THE
14 PREDOMINANT PURPOSE OR NATURE OF WHICH IS EXERCISE, FITNESS,
15 HEALTH MAINTENANCE, IMPROVEMENT OR REHABILITATION, HEALTH OR
16 NUTRITION EDUCATION, OR WEIGHT CONTROL.
17 (14) EXCEPT BY CITIES OF THE SECOND CLASS, TO LEVY, ASSESS
18 OR COLLECT A TAX ON PAYROLL AMOUNTS GENERATED AS A RESULT OF
19 BUSINESS ACTIVITY.
20 (15) EXCEPT BY CITIES OF THE SECOND CLASS IN WHICH A SPORTS
21 STADIUM OR ARENA THAT HAS RECEIVED PUBLIC FUNDS IN CONNECTION
22 WITH ITS CONSTRUCTION OR MAINTENANCE IS LOCATED, TO LEVY, ASSESS
23 AND COLLECT A PUBLICLY FUNDED FACILITY USAGE FEE UPON THOSE
24 NONRESIDENT INDIVIDUALS WHO USE SUCH FACILITY TO ENGAGE IN AN
25 ATHLETIC EVENT OR OTHERWISE RENDER A PERFORMANCE FOR WHICH THEY
26 RECEIVE REMUNERATION.
27 (16) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
28 TAX ON THE CHARGE IMPOSED UPON A PATRON FOR THE SALE OF
29 ADMISSION TO OR FOR THE PRIVILEGE OF ADMISSION TO A BOWLING
30 ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF BOWLING.
20050S0157B1401 - 49 -
1 SECTION 2. SECTION 7 OF THE ACT, AMENDED AUGUST 11, 1967
2 (P.L.228, NO.83) AND OCTOBER 9, 1967 (P.L.361, NO.160), IS
3 AMENDED TO READ:
4 SECTION 7. FILING OF CERTIFIED COPIES OF ORDINANCES AND
5 RESOLUTIONS.--WHEN AN ORDINANCE OR A RESOLUTION IS FIRST PASSED
6 OR ADOPTED BY A POLITICAL SUBDIVISION IMPOSING A TAX OR LICENSE
7 FEE UNDER THE AUTHORITY OF THIS ACT, AN EXACT PRINTED OR
8 TYPEWRITTEN COPY THEREOF, CERTIFIED TO BY THE SECRETARY OF THE
9 TAXING BODY, SHALL BE FILED WITH THE [DEPARTMENT OF COMMUNITY
10 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT WITHIN
11 FIFTEEN DAYS AFTER THE SAME BECOMES EFFECTIVE.
12 ANY SECRETARY OR PERSON ACTING AS THE CLERK OR SECRETARY OF
13 THE TAXING BODY OF ANY POLITICAL SUBDIVISION DURING THE MEETING
14 AT WHICH AN ORDINANCE OR RESOLUTION IMPOSING A TAX OR LICENSE
15 FEE IS PASSED OR ADOPTED AS HEREIN PROVIDED WHO SHALL FAIL TO
16 FILE THE CERTIFIED COPY OR STATEMENT RELATIVE THERETO WITH THE
17 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND
18 ECONOMIC DEVELOPMENT AS HEREIN REQUIRED, SHALL, UPON SUMMARY
19 CONVICTION THEREOF IN THE COUNTY IN WHICH THE POLITICAL
20 SUBDIVISION IS LOCATED, BE SENTENCED TO PAY A FINE OF NOT LESS
21 THAN FIVE DOLLARS ($5) NOR MORE THAN TWENTY-FIVE DOLLARS ($25),
22 AND THE COSTS OF PROSECUTION.
23 SECTION 3. SECTION 8 OF THE ACT, AMENDED DECEMBER 1, 2004
24 (P.L.1729, NO.222), IS AMENDED TO READ:
25 SECTION 8. LIMITATIONS ON RATES OF SPECIFIC TAXES.--NO TAXES
26 LEVIED UNDER THE PROVISIONS OF THIS ACT SHALL BE LEVIED BY ANY
27 POLITICAL SUBDIVISION ON THE FOLLOWING SUBJECTS EXCEEDING THE
28 RATES SPECIFIED IN THIS SECTION:
29 (1) PER CAPITA, POLL OR OTHER SIMILAR HEAD TAXES, TEN
30 DOLLARS ($10).
20050S0157B1401 - 50 -
1 (2) ON EACH DOLLAR OF THE WHOLE VOLUME OF BUSINESS
2 TRANSACTED BY WHOLESALE DEALERS IN GOODS, WARES AND MERCHANDISE,
3 ONE MILL, BY RETAIL DEALERS IN GOODS, WARES AND MERCHANDISE AND
4 BY PROPRIETORS OF RESTAURANTS OR OTHER PLACES WHERE FOOD, DRINK
5 AND REFRESHMENTS ARE SERVED, ONE AND ONE-HALF MILLS; EXCEPT IN
6 CITIES OF THE SECOND CLASS, WHERE RATES SHALL NOT EXCEED ONE
7 MILL ON WHOLESALE DEALERS AND TWO MILLS ON RETAIL DEALERS AND
8 PROPRIETORS. NO SUCH TAX SHALL BE LEVIED ON THE DOLLAR VOLUME OF
9 BUSINESS TRANSACTED BY WHOLESALE AND RETAIL DEALERS DERIVED FROM
10 THE RESALE OF GOODS, WARES AND MERCHANDISE, TAKEN BY ANY DEALER
11 AS A TRADE-IN OR AS PART PAYMENT FOR OTHER GOODS, WARES AND
12 MERCHANDISE, EXCEPT TO THE EXTENT THAT THE RESALE PRICE EXCEEDS
13 THE TRADE-IN ALLOWANCE.
14 (3) ON WAGES, SALARIES, COMMISSIONS AND OTHER EARNED INCOME
15 OF INDIVIDUALS, ONE PERCENT.
16 (4) ON RETAIL SALES INVOLVING THE TRANSFER OF TITLE OR
17 POSSESSION OF TANGIBLE PERSONAL PROPERTY, TWO PERCENT.
18 (5) ON THE TRANSFER OF REAL PROPERTY, ONE PERCENT.
19 (6) ON ADMISSIONS TO PLACES OF AMUSEMENT, ATHLETIC EVENTS
20 AND THE LIKE, AND ON MOTION PICTURE THEATRES IN CITIES OF THE
21 SECOND CLASS, TEN PERCENT.
22 (7) FLAT RATE OCCUPATION TAXES NOT USING A MILLAGE OR
23 PERCENTAGE AS A BASIS, TEN DOLLARS ($10).
24 (8) [EMERGENCY AND MUNICIPAL] LOCAL SERVICES TAXES, FIFTY-
25 TWO DOLLARS ($52).
26 (9) ON ADMISSIONS TO SKI FACILITIES, TEN PERCENT. THE TAX
27 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
28 PERCENT OF THE COST OF THE LIFT TICKET. THE LIFT TICKET SHALL
29 INCLUDE ALL COSTS OF ADMISSIONS TO THE SKI FACILITY.
30 (10) ON ADMISSIONS TO GOLF COURSES, TEN PERCENT. THE TAX
20050S0157B1401 - 51 -
1 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
2 PERCENT OF THE GREENS FEE. THE GREENS FEE SHALL INCLUDE ALL
3 COSTS OF ADMISSIONS TO THE GOLF COURSE.
4 (12) ON PAYROLLS, FIFTY-FIVE HUNDREDTHS PERCENT.
5 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AT ANY TIME TWO
6 POLITICAL SUBDIVISIONS SHALL IMPOSE ANY ONE OF THE ABOVE TAXES
7 ON THE SAME PERSON, SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE,
8 LOCATED WITHIN BOTH SUCH POLITICAL SUBDIVISIONS, DURING THE SAME
9 YEAR OR PART OF THE SAME YEAR, UNDER THE AUTHORITY OF THIS ACT
10 THEN THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THE
11 AUTHORITY OF THIS ACT SHALL, DURING THE TIME SUCH DUPLICATION OF
12 THE TAX EXISTS, EXCEPT AS HEREINAFTER OTHERWISE PROVIDED, BE
13 ONE-HALF OF THE RATE, AS ABOVE LIMITED, AND SUCH ONE-HALF RATE
14 SHALL BECOME EFFECTIVE BY VIRTUE OF THE REQUIREMENTS OF THIS ACT
15 FROM THE DAY SUCH DUPLICATION BECOMES EFFECTIVE WITHOUT ANY
16 ACTION ON THE PART OF THE POLITICAL SUBDIVISION IMPOSING THE TAX
17 UNDER THE AUTHORITY OF THIS ACT. WHEN ANY ONE OF THE ABOVE TAXES
18 HAS BEEN LEVIED UNDER THE PROVISIONS OF THIS ACT BY ONE
19 POLITICAL SUBDIVISION AND A SUBSEQUENT LEVY IS MADE EITHER FOR
20 THE FIRST TIME OR IS REVIVED AFTER A LAPSE OF TIME BY ANOTHER
21 POLITICAL SUBDIVISION ON THE SAME PERSON, SUBJECT, BUSINESS,
22 TRANSACTION OR PRIVILEGE AT A RATE THAT WOULD MAKE THE COMBINED
23 LEVIES EXCEED THE LIMIT ALLOWED BY THIS SUBDIVISION, THE TAX OF
24 THE SECOND POLITICAL SUBDIVISION SHALL NOT BECOME EFFECTIVE
25 UNTIL THE END OF THE FISCAL YEAR FOR WHICH THE PRIOR TAX WAS
26 LEVIED, UNLESS:
27 (1) NOTICE INDICATING ITS INTENTION TO MAKE SUCH LEVY IS
28 GIVEN TO THE FIRST TAXING BODY BY THE SECOND TAXING BODY AS
29 FOLLOWS: (I) WHEN THE NOTICE IS GIVEN TO A SCHOOL DISTRICT IT
30 SHALL BE GIVEN AT LEAST FORTY-FIVE DAYS PRIOR TO THE LAST DAY
20050S0157B1401 - 52 -
1 FIXED BY LAW FOR THE LEVY OF ITS SCHOOL TAXES; (II) WHEN GIVEN
2 TO ANY OTHER POLITICAL SUBDIVISION IT SHALL BE PRIOR TO THE
3 FIRST DAY OF JANUARY IMMEDIATELY PRECEDING, OR IF A LAST DAY FOR
4 THE ADOPTION OF THE BUDGET IS FIXED BY LAW, AT LEAST FORTY-FIVE
5 DAYS PRIOR TO SUCH LAST DAY; OR
6 (2) UNLESS THE FIRST TAXING BODY SHALL INDICATE BY
7 APPROPRIATE RESOLUTION ITS DESIRE TO WAIVE NOTICE REQUIREMENTS
8 IN WHICH CASE THE LEVY OF THE SECOND TAXING BODY SHALL BECOME
9 EFFECTIVE ON SUCH DATE AS MAY BE AGREED UPON BY THE TWO TAXING
10 BODIES.
11 IT IS THE INTENT AND PURPOSE OF THIS PROVISION TO LIMIT RATES
12 OF TAXES REFERRED TO IN THIS SECTION SO THAT THE ENTIRE BURDEN
13 OF ONE TAX ON A PERSON, SUBJECT, BUSINESS, TRANSACTION OR
14 PRIVILEGE SHALL NOT EXCEED THE LIMITATIONS PRESCRIBED IN THIS
15 SECTION: PROVIDED, HOWEVER, THAT ANY TWO POLITICAL SUBDIVISIONS
16 WHICH IMPOSE ANY ONE OF THE ABOVE TAXES, ON THE SAME PERSON,
17 SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE DURING THE SAME YEAR
18 OR PART OF THE SAME YEAR MAY AGREE AMONG THEMSELVES THAT,
19 INSTEAD OF LIMITING THEIR RESPECTIVE RATES TO ONE-HALF OF THE
20 MAXIMUM RATE HEREIN PROVIDED, THEY WILL IMPOSE RESPECTIVELY
21 DIFFERENT RATES, THE TOTAL OF WHICH SHALL NOT EXCEED THE MAXIMUM
22 RATE AS ABOVE PERMITTED.
23 NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, ANY CITY OF
24 THE SECOND CLASS A MAY ENACT A TAX UPON WAGES, SALARIES,
25 COMMISSIONS AND OTHER EARNED INCOME OF INDIVIDUALS RESIDENT
26 THEREIN, NOT EXCEEDING ONE PERCENT, EVEN THOUGH A SCHOOL
27 DISTRICT LEVIES A SIMILAR TAX ON THE SAME PERSON PROVIDED THAT
28 THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT. [IN THE
29 CASE OF DUPLICATION OF EMERGENCY AND MUNICIPAL SERVICES TAXES BY
30 BOTH A SCHOOL DISTRICT, OTHER THAN A SCHOOL DISTRICT OF THE
20050S0157B1401 - 53 -
1 FIRST CLASS A, AND ANOTHER TAXING BODY, THE SCHOOL DISTRICT'S
2 SHARE OF THE TAX SHALL NOT EXCEED THE AMOUNT OF A TAX ON THE
3 PRIVILEGE OF ENGAGING IN AN OCCUPATION COLLECTED BY THE SCHOOL
4 DISTRICT AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH. IN THE CASE
5 WHERE A SCHOOL DISTRICT DID NOT LEVY A TAX ON THE PRIVILEGE OF
6 ENGAGING IN AN OCCUPATION ON THE EFFECTIVE DATE OF THIS
7 PARAGRAPH, THE SCHOOL DISTRICT MAY IMPOSE A FUTURE LEVY NOT TO
8 EXCEED FIVE DOLLARS ($5). A SCHOOL DISTRICT OF THE FIRST CLASS A
9 SHALL NOT LEVY, ASSESS OR COLLECT AN EMERGENCY AND MUNICIPAL
10 SERVICES TAX.]
11 SECTION 4. SECTION 9 OF THE ACT, AMENDED DECEMBER 12, 1968
12 (P.L.1203, NO.377), IS AMENDED TO READ:
13 SECTION 9. REGISTER FOR EARNED INCOME AND [OCCUPATIONAL
14 PRIVILEGE] LOCAL SERVICES TAXES.--IT SHALL BE THE DUTY OF THE
15 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND
16 ECONOMIC DEVELOPMENT TO HAVE AVAILABLE AN OFFICIAL CONTINUING
17 REGISTER SUPPLEMENTED ANNUALLY OF ALL EARNED INCOME AND
18 [OCCUPATIONAL PRIVILEGE] LOCAL SERVICES TAXES LEVIED UNDER
19 AUTHORITY OF THIS ACT. THE REGISTER AND ITS SUPPLEMENTS,
20 HEREINAFTER REFERRED TO AS THE REGISTER, SHALL LIST SUCH
21 JURISDICTIONS LEVYING EARNED INCOME [AND/OR OCCUPATIONAL
22 PRIVILEGE] AND LOCAL SERVICES TAXES, THE RATE OF THE TAX AS
23 STATED IN THE TAX LEVYING ORDINANCE OR RESOLUTION, AND THE
24 EFFECTIVE RATE ON RESIDENT AND NONRESIDENT TAXPAYERS, IF
25 DIFFERENT FROM THE STATED RATE BECAUSE OF A COTERMINOUS LEVY,
26 THE NAME AND ADDRESS OF THE OFFICER RESPONSIBLE FOR
27 ADMINISTERING THE COLLECTION OF THE TAX AND FROM WHOM
28 INFORMATION, FORMS FOR REPORTING AND COPIES OF RULES AND
29 REGULATIONS ARE AVAILABLE. WITH EACH JURISDICTION LISTED, ALL
30 JURISDICTIONS MAKING COTERMINOUS LEVIES SHALL ALSO BE NOTED AND
20050S0157B1401 - 54 -
1 THEIR TAX RATES SHOWN.
2 INFORMATION FOR THE REGISTER SHALL BE FURNISHED BY THE
3 SECRETARY OF EACH TAXING BODY TO THE [DEPARTMENT OF COMMUNITY
4 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT IN
5 SUCH MANNER AND ON SUCH FORMS AS THE [DEPARTMENT OF COMMUNITY
6 AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT MAY
7 PRESCRIBE. THE INFORMATION MUST BE RECEIVED BY THE [DEPARTMENT
8 OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND ECONOMIC
9 DEVELOPMENT BY CERTIFIED MAIL NOT LATER THAN MAY 31 OF EACH YEAR
10 TO SHOW NEW TAX ENACTMENTS, REPEALS AND CHANGES. FAILURE TO
11 COMPLY WITH THIS DATE FOR FILING MAY RESULT IN THE OMISSION OF
12 THE LEVY FROM THE REGISTER FOR THAT YEAR. FAILURE OF THE
13 [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY AND
14 ECONOMIC DEVELOPMENT TO RECEIVE INFORMATION OF TAXES CONTINUED
15 WITHOUT CHANGE MAY BE CONSTRUED BY THE DEPARTMENT TO MEAN THAT
16 THE INFORMATION CONTAINED IN THE PREVIOUS REGISTER REMAINS IN
17 FORCE.
18 THE [DEPARTMENT OF COMMUNITY AFFAIRS] DEPARTMENT OF COMMUNITY
19 AND ECONOMIC DEVELOPMENT SHALL HAVE THE REGISTER WITH SUCH
20 ANNUAL SUPPLEMENTS AS MAY BE REQUIRED BY NEW TAX ENACTMENTS,
21 REPEALS OR CHANGES AVAILABLE UPON REQUEST NOT LATER THAN JULY 1
22 OF EACH YEAR. THE EFFECTIVE PERIOD FOR EACH REGISTER SHALL BE
23 FROM JULY 1 OF THE YEAR IN WHICH IT IS ISSUED TO JUNE 30 OF THE
24 FOLLOWING YEAR.
25 EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL ORDINANCE TO
26 WITHHOLD FROM THE WAGES, SALARIES, COMMISSIONS OR OTHER
27 COMPENSATION OF THEIR EMPLOYES ANY TAX IMPOSED UNDER THE
28 PROVISIONS OF THIS ACT, WHICH IS NOT LISTED IN THE REGISTER, OR
29 MAKE REPORTS OF WAGES, SALARIES, COMMISSIONS OR OTHER
30 COMPENSATION IN CONNECTION WITH TAXES NOT SO LISTED: PROVIDED,
20050S0157B1401 - 55 -
1 THAT IF THE REGISTER IS NOT AVAILABLE BY JULY 1, THE REGISTER OF
2 THE PREVIOUS YEAR SHALL CONTINUE TEMPORARILY IN EFFECT FOR AN
3 ADDITIONAL PERIOD NOT TO EXCEED ONE YEAR. THE PROVISIONS OF THIS
4 SECTION SHALL NOT AFFECT THE LIABILITY OF ANY TAXPAYER FOR TAXES
5 LAWFULLY IMPOSED UNDER THIS ACT.
6 ORDINANCES OR RESOLUTIONS IMPOSING EARNED INCOME OR
7 [OCCUPATIONAL PRIVILEGE] LOCAL SERVICES TAXES UNDER AUTHORITY OF
8 THIS ACT MAY CONTAIN PROVISIONS REQUIRING EMPLOYERS DOING
9 BUSINESS WITHIN THE JURISDICTION OF THE POLITICAL SUBDIVISION
10 IMPOSING THE TAX TO WITHHOLD THE TAX FROM THE COMPENSATION OF
11 THOSE OF THEIR EMPLOYES WHO ARE SUBJECT TO THE TAX: PROVIDED,
12 THAT NO EMPLOYER SHALL BE HELD LIABLE FOR FAILURE TO WITHHOLD
13 EARNED INCOME TAXES OR FOR THE PAYMENT OF SUCH WITHHELD TAX
14 MONEY TO A POLITICAL SUBDIVISION OTHER THAN THE POLITICAL
15 SUBDIVISION ENTITLED TO RECEIVE SUCH MONEY IF SUCH FAILURE TO
16 WITHHOLD OR SUCH INCORRECT TRANSMITTAL OF WITHHELD TAXES ARISES
17 FROM INCORRECT INFORMATION AS TO THE EMPLOYE'S PLACE OF
18 RESIDENCE SUBMITTED BY THE EMPLOYE: AND PROVIDED FURTHER, THAT
19 [EMPLOYERS SHALL NOT BE REQUIRED BY ANY LOCAL ORDINANCE TO
20 WITHHOLD FROM COMPENSATION FOR ANY ONE OF THEIR EMPLOYES FOR THE
21 OCCUPATIONAL PRIVILEGE TAX MORE THAN ONE TIME IN ANY FISCAL
22 PERIOD:] NO EMPLOYER SHALL BE HELD LIABLE FOR FAILURE TO
23 WITHHOLD THE LOCAL SERVICES TAX OR FOR THE PAYMENT OF THE
24 WITHHELD TAX MONEY TO A POLITICAL SUBDIVISION IF THE FAILURE TO
25 WITHHOLD TAXES ARISES FROM INCORRECT INFORMATION SUBMITTED BY
26 THE EMPLOYE AS TO THE EMPLOYE'S PLACE OR PLACES OF EMPLOYMENT,
27 THE EMPLOYE'S PRINCIPAL OFFICE OR WHERE THE EMPLOYE IS
28 PRINCIPALLY EMPLOYED: AND PROVIDED FURTHER, THAT AN EMPLOYER
29 SHALL NOT BE LIABLE FOR PAYMENT OF THE LOCAL SERVICES TAX IN AN
30 AMOUNT EXCEEDING THE AMOUNT WITHHELD BY THE EMPLOYER IF THE
20050S0157B1401 - 56 -
1 EMPLOYER COMPLIES WITH THE PROVISIONS OF SECTION 2(9) OF THIS
2 ACT AND REMITS THE AMOUNT SO WITHHELD IN ACCORDANCE WITH THIS
3 SECTION: AND PROVIDED FURTHER, THAT THE DEPARTMENT OF COMMUNITY
4 AND ECONOMIC DEVELOPMENT MAY PROVIDE SUGGESTED FORMS AND
5 TECHNICAL ASSISTANCE TO FACILITATE THE ADMINISTRATION OF THE
6 LOCAL SERVICES TAX FOR POLITICAL SUBDIVISIONS AND REDUCE THE
7 BURDEN OF IMPLEMENTATION, ACCOUNTING AND COMPLIANCE FOR
8 EMPLOYERS AND TAXPAYERS: AND PROVIDED FURTHER, THAT THE
9 [OCCUPATIONAL PRIVILEGE] LOCAL SERVICES TAX SHALL BE APPLICABLE
10 TO EMPLOYMENT IN THE PERIOD BEGINNING JANUARY 1, OF THE CURRENT
11 YEAR AND ENDING DECEMBER 31 OF THE CURRENT YEAR, EXCEPT THAT
12 TAXES IMPOSED FOR THE FIRST TIME SHALL BECOME EFFECTIVE FROM THE
13 DATE SPECIFIED IN THE ORDINANCE OR RESOLUTION, AND THE TAX SHALL
14 CONTINUE IN FORCE ON A CALENDAR YEAR BASIS[.]: AND PROVIDED
15 FURTHER, THAT EMPLOYERS SHALL BE REQUIRED TO REMIT THE LOCAL
16 SERVICES TAXES THIRTY DAYS AFTER THE END OF EACH QUARTER OF A
17 CALENDAR YEAR.
18 SECTION 5. SECTION 19 OF THE ACT, AMENDED OCTOBER 4, 1978
19 (P.L.930, NO.177), IS AMENDED TO READ:
20 SECTION 19. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION,
21 OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL SERVICES, LOCAL
22 SERVICES AND EARNED INCOME TAXES FROM EMPLOYERS, ETC.--THE TAX
23 COLLECTOR SHALL DEMAND, RECEIVE AND COLLECT FROM ALL
24 CORPORATIONS, POLITICAL SUBDIVISIONS, ASSOCIATIONS, COMPANIES,
25 FIRMS OR INDIVIDUALS, EMPLOYING PERSONS OWING DELINQUENT PER
26 CAPITA, OR OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND
27 MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES, OR
28 WHOSE SPOUSE OWES DELINQUENT PER CAPITA, OCCUPATION,
29 OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL SERVICES, LOCAL
30 SERVICES AND EARNED INCOME TAXES, OR HAVING IN POSSESSION UNPAID
20050S0157B1401 - 57 -
1 COMMISSIONS OR EARNINGS BELONGING TO ANY PERSON OR PERSONS OWING
2 DELINQUENT PER CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE,
3 EMERGENCY AND MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED
4 INCOME TAXES, OR WHOSE SPOUSE OWES DELINQUENT PER CAPITA,
5 OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL
6 SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES, UPON THE
7 PRESENTATION OF A WRITTEN NOTICE AND DEMAND CERTIFYING THAT THE
8 INFORMATION CONTAINED THEREIN IS TRUE AND CORRECT AND CONTAINING
9 THE NAME OF THE TAXABLE OR THE SPOUSE THEREOF AND THE AMOUNT OF
10 TAX DUE. UPON THE PRESENTATION OF SUCH WRITTEN NOTICE AND
11 DEMAND, IT SHALL BE THE DUTY OF ANY SUCH CORPORATION, POLITICAL
12 SUBDIVISION, ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL TO DEDUCT
13 FROM THE WAGES, COMMISSIONS OR EARNINGS OF SUCH INDIVIDUAL
14 EMPLOYES, THEN OWING OR THAT SHALL WITHIN SIXTY DAYS THEREAFTER
15 BECOME DUE, OR FROM ANY UNPAID COMMISSIONS OR EARNINGS OF ANY
16 SUCH TAXABLE IN ITS OR HIS POSSESSION, OR THAT SHALL WITHIN
17 SIXTY DAYS THEREAFTER COME INTO ITS OR HIS POSSESSION, A SUM
18 SUFFICIENT TO PAY THE RESPECTIVE AMOUNT OF THE DELINQUENT PER
19 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND
20 MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES AND
21 COSTS, SHOWN UPON THE WRITTEN NOTICE OR DEMAND, AND TO PAY THE
22 SAME TO THE TAX COLLECTOR OF THE TAXING DISTRICT IN WHICH SUCH
23 DELINQUENT TAX WAS LEVIED WITHIN SIXTY DAYS AFTER SUCH NOTICE
24 SHALL HAVE BEEN GIVEN. NO MORE THAN TEN PERCENT OF THE WAGES,
25 COMMISSIONS OR EARNINGS OF THE DELINQUENT TAXPAYER OR SPOUSE
26 THEREOF MAY BE DEDUCTED AT ANY ONE TIME FOR DELINQUENT PER
27 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND
28 MUNICIPAL SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES AND
29 COSTS. SUCH CORPORATION, POLITICAL SUBDIVISION, ASSOCIATION,
30 FIRM OR INDIVIDUAL SHALL BE ENTITLED TO DEDUCT FROM THE MONEYS
20050S0157B1401 - 58 -
1 COLLECTED FROM EACH EMPLOYE THE COSTS INCURRED FROM THE EXTRA
2 BOOKKEEPING NECESSARY TO RECORD SUCH TRANSACTIONS, NOT EXCEEDING
3 TWO PERCENT OF THE AMOUNT OF MONEY SO COLLECTED AND PAID OVER TO
4 THE TAX COLLECTOR. UPON THE FAILURE OF ANY SUCH CORPORATION,
5 POLITICAL SUBDIVISION, ASSOCIATION, COMPANY, FIRM OR INDIVIDUAL
6 TO DEDUCT THE AMOUNT OF SUCH TAXES OR TO PAY THE SAME OVER TO
7 THE TAX COLLECTOR, LESS THE COST OF BOOKKEEPING INVOLVED IN SUCH
8 TRANSACTION, AS HEREIN PROVIDED, WITHIN THE TIME HEREBY
9 REQUIRED, SUCH CORPORATION, POLITICAL SUBDIVISION, ASSOCIATION,
10 COMPANY, FIRM OR INDIVIDUAL SHALL FORFEIT AND PAY THE AMOUNT OF
11 SUCH TAX FOR EACH SUCH TAXABLE WHOSE TAXES ARE NOT WITHHELD AND
12 PAID OVER, OR THAT ARE WITHHELD AND NOT PAID OVER TOGETHER WITH
13 A PENALTY OF TEN PERCENT ADDED THERETO, TO BE RECOVERED BY AN
14 ACTION OF ASSUMPSIT IN A SUIT TO BE INSTITUTED BY THE TAX
15 COLLECTOR, OR BY THE PROPER AUTHORITIES OF THE TAXING DISTRICT,
16 AS DEBTS OF LIKE AMOUNT ARE NOW BY LAW RECOVERABLE, EXCEPT THAT
17 SUCH PERSON SHALL NOT HAVE THE BENEFIT OF ANY STAY OF EXECUTION
18 OR EXEMPTION LAW. THE TAX COLLECTOR SHALL NOT PROCEED AGAINST A
19 SPOUSE OR HIS EMPLOYER UNTIL HE HAS PURSUED COLLECTION REMEDIES
20 AGAINST THE DELINQUENT TAXPAYER AND HIS EMPLOYER UNDER THIS
21 SECTION.
22 SECTION 6. SECTION 20 OF THE ACT IS AMENDED TO READ:
23 SECTION 20. COLLECTION OF DELINQUENT PER CAPITA, OCCUPATION,
24 OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL SERVICES, LOCAL
25 SERVICES AND EARNED INCOME TAXES FROM THE COMMONWEALTH.--UPON
26 PRESENTATION OF A WRITTEN NOTICE AND DEMAND UNDER OATH OR
27 AFFIRMATION, TO THE STATE TREASURER OR ANY OTHER FISCAL OFFICER
28 OF THE STATE, OR ITS BOARDS, AUTHORITIES, AGENCIES OR
29 COMMISSIONS, IT SHALL BE THE DUTY OF THE TREASURER OR OFFICER TO
30 DEDUCT FROM THE WAGES THEN OWING, OR THAT SHALL WITHIN SIXTY
20050S0157B1401 - 59 -
1 DAYS THEREAFTER BECOME DUE TO ANY EMPLOYE, A SUM SUFFICIENT TO
2 PAY THE RESPECTIVE AMOUNT OF THE DELINQUENT PER CAPITA,
3 OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL
4 SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES AND COSTS SHOWN
5 ON THE WRITTEN NOTICE. THE SAME SHALL BE PAID TO THE TAX
6 COLLECTOR OF THE TAXING DISTRICT IN WHICH SAID DELINQUENT TAX
7 WAS LEVIED WITHIN SIXTY DAYS AFTER SUCH NOTICE SHALL HAVE BEEN
8 GIVEN.
9 SECTION 7. SECTION 22.1 OF THE ACT, ADDED NOVEMBER 30, 2004
10 (P.L.1520, NO.192), IS AMENDED TO READ:
11 SECTION 22.1. COSTS OF COLLECTION OF DELINQUENT PER CAPITA,
12 OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL
13 SERVICES, LOCAL SERVICES AND EARNED INCOME TAXES.--(A) A PERSON,
14 PUBLIC EMPLOYE OR PRIVATE AGENCY DESIGNATED BY A GOVERNING BODY
15 OF A POLITICAL SUBDIVISION TO COLLECT AND ADMINISTER A PER
16 CAPITA, OCCUPATION, OCCUPATIONAL PRIVILEGE, EMERGENCY AND
17 MUNICIPAL SERVICES, LOCAL SERVICES OR EARNED INCOME TAX MAY
18 IMPOSE AND COLLECT THE REASONABLE COSTS INCURRED TO PROVIDE
19 NOTICES OF DELINQUENCY OR TO IMPLEMENT SIMILAR PROCEDURES
20 UTILIZED TO COLLECT DELINQUENT TAXES FROM A TAXPAYER AS APPROVED
21 BY THE GOVERNING BODY OF THE POLITICAL SUBDIVISION. REASONABLE
22 COSTS COLLECTED MAY BE RETAINED BY THE PERSON, PUBLIC EMPLOYE OR
23 PRIVATE AGENCY DESIGNATED TO COLLECT THE TAX AS AGREED TO BY THE
24 GOVERNING BODY OF THE POLITICAL SUBDIVISION. AN ITEMIZED
25 ACCOUNTING OF ALL COSTS COLLECTED SHALL BE REMITTED TO THE
26 POLITICAL SUBDIVISION ON AN ANNUAL BASIS.
27 (B) COSTS RELATED TO THE COLLECTION OF UNPAID PER CAPITA,
28 OCCUPATION [OR], OCCUPATIONAL PRIVILEGE, EMERGENCY AND MUNICIPAL
29 SERVICES OR LOCAL SERVICES TAXES MAY ONLY BE ASSESSED, LEVIED
30 AND COLLECTED FOR FIVE YEARS FROM THE LAST DAY OF THE CALENDAR
20050S0157B1401 - 60 -
1 YEAR IN WHICH THE TAX WAS DUE.
2 (C) A DELINQUENT TAXPAYER MAY NOT BRING AN ACTION FOR
3 REIMBURSEMENT, REFUND OR ELIMINATION OF REASONABLE COSTS OF
4 COLLECTION ASSESSED OR IMPOSED PRIOR TO THE EFFECTIVE DATE OF
5 THIS SECTION. ADDITIONAL COSTS MAY NOT BE ASSESSED ON DELINQUENT
6 TAXES COLLECTED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
7 SECTION 8. SECTIONS 22.4 AND 22.5 OF THE ACT, ADDED DECEMBER
8 1, 2004 (P.L.1729, NO.222), ARE AMENDED TO READ:
9 [SECTION 22.4. EMERGENCY AND MUNICIPAL SERVICES TAXES.--ANY
10 REFERENCE IN ANY ACT OR LAW TO AN OCCUPATIONAL PRIVILEGE TAX
11 SHALL MEAN THE EMERGENCY AND MUNICIPAL SERVICES TAXES AS
12 PROVIDED FOR IN THIS ACT.
13 SECTION 22.5. RESTRICTED USE.--(A) ANY MUNICIPALITY
14 DERIVING FUNDS FROM THE EMERGENCY AND MUNICIPAL SERVICES TAX MAY
15 ONLY USE THE FUNDS FOR:
16 (1) POLICE, FIRE AND/OR EMERGENCY SERVICES;
17 (2) ROAD CONSTRUCTION AND/OR MAINTENANCE; OR
18 (3) REDUCTION OF PROPERTY TAXES.
19 (B) FOR THE PURPOSE OF THE EMERGENCY AND MUNICIPAL SERVICES
20 TAX, THE TERM MUNICIPALITY DOES NOT INCLUDE A SCHOOL DISTRICT.]
21 SECTION 9. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
22 SECTION 22.6. RESTRICTED USE.--(A) ANY MUNICIPALITY
23 DERIVING FUNDS FROM THE LOCAL SERVICES TAX SHALL USE NO LESS
24 THAN TWENTY-FIVE PERCENT OF THE FUNDS FOR POLICE, FIRE AND
25 EMERGENCY SERVICES.
26 (B) FOR THE PURPOSE OF THE LOCAL SERVICES TAX, THE TERM
27 "MUNICIPALITY" DOES NOT INCLUDE A SCHOOL DISTRICT.
28 SECTION 10. ANY ORDINANCE OR RESOLUTION PROVIDING FOR THE
29 LEVYING, ASSESSMENT OR COLLECTION OF A TAX ON INDIVIDUALS FOR
30 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION WHICH HAS BEEN
20050S0157B1401 - 61 -
1 ENACTED BY A POLITICAL SUBDIVISION PRIOR TO DECEMBER 1, 2004,
2 SHALL CONTINUE IN FULL FORCE AND EFFECT, WITHOUT REENACTMENT, AS
3 IF SUCH TAX HAD BEEN LEVIED, ASSESSED OR COLLECTED AS A LOCAL
4 SERVICES TAX UNDER SECTION 2(9) OF THE ACT. ALL REFERENCES IN
5 ANY ORDINANCE OR RESOLUTION TO A TAX ON THE PRIVILEGE OF
6 ENGAGING IN AN OCCUPATION SHALL BE DEEMED TO BE A REFERENCE TO A
7 LOCAL SERVICES TAX FOR THE PURPOSES OF THE ACT.
8 SECTION 11. ALL EMERGENCY AND LOCAL SERVICES TAXES LEVIED
9 FOR THE CALENDAR YEAR BEGINNING ON JANUARY 1, 2005, SHALL REMAIN
10 IN EFFECT FOR THE CALENDAR YEAR BEGINNING ON JANUARY 1, 2005,
11 AND ENDING DECEMBER 31, 2005, AND ARE NOT OTHERWISE ALTERED.
12 SECTION 12. THE AMENDMENT OR ADDITION OF THE FOLLOWING
13 PROVISIONS SHALL APPLY TO TAXES LEVIED FOR CALENDAR YEAR 2006
14 AND EACH YEAR THEREAFTER:
15 (1) THE AMENDMENT OF SECTION 2 OF THE ACT.
16 (2) THE AMENDMENT OF SECTION 8 OF THE ACT.
17 (3) THE AMENDMENT OF SECTION 9 OF THE ACT, EXCEPT FOR
18 ANY EDITORIAL AMENDMENT CHANGING THE REFERENCE FROM THE
19 DEPARTMENT OF COMMUNITY AFFAIRS TO THE DEPARTMENT OF
20 COMMUNITY AND ECONOMIC DEVELOPMENT.
21 (4) THE AMENDMENT OF SECTION 19 OF THE ACT.
22 (5) THE AMENDMENT OF SECTION 20 OF THE ACT.
23 (6) THE AMENDMENT OF SECTION 22.1 OF THE ACT.
24 (7) THE AMENDMENT OF SECTION 22.4 OF THE ACT.
25 (8) THE AMENDMENT OF SECTION 22.5 OF THE ACT.
26 (9) THE ADDITION OF SECTION 22.6 OF THE ACT.
27 SECTION 13. REPEALS ARE AS FOLLOWS:
28 (1) THE GENERAL ASSEMBLY DECLARES THAT THE REPEAL UNDER
29 PARAGRAPH (2) IS NECESSARY TO EFFECTUATE THE AMENDMENT OF
30 SECTION 2(9) OF THE ACT.
20050S0157B1401 - 62 -
1 (2) SECTION 6 OF THE ACT OF DECEMBER 1, 2004 (P.L.1729,
2 NO.222), ENTITLED "AN ACT AMENDING THE ACT OF DECEMBER 31,
3 1965 (P.L.1257, NO.511), ENTITLED 'AN ACT EMPOWERING CITIES
4 OF THE SECOND CLASS, CITIES OF THE SECOND CLASS A, CITIES OF
5 THE THIRD CLASS, BOROUGHS, TOWNS, TOWNSHIPS OF THE FIRST
6 CLASS, TOWNSHIPS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE
7 SECOND CLASS, SCHOOL DISTRICTS OF THE THIRD CLASS AND SCHOOL
8 DISTRICTS OF THE FOURTH CLASS INCLUDING INDEPENDENT SCHOOL
9 DISTRICTS, TO LEVY, ASSESS, COLLECT OR TO PROVIDE FOR THE
10 LEVYING, ASSESSMENT AND COLLECTION OF CERTAIN TAXES SUBJECT
11 TO MAXIMUM LIMITATIONS FOR GENERAL REVENUE PURPOSES;
12 AUTHORIZING THE ESTABLISHMENT OF BUREAUS AND THE APPOINTMENT
13 AND COMPENSATION OF OFFICERS, AGENCIES AND EMPLOYES TO ASSESS
14 AND COLLECT SUCH TAXES; PROVIDING FOR JOINT COLLECTION OF
15 CERTAIN TAXES, PRESCRIBING CERTAIN DEFINITIONS AND OTHER
16 PROVISIONS FOR TAXES LEVIED AND ASSESSED UPON EARNED INCOME,
17 PROVIDING FOR ANNUAL AUDITS AND FOR COLLECTION OF DELINQUENT
18 TAXES, AND PERMITTING AND REQUIRING PENALTIES TO BE IMPOSED
19 AND ENFORCED, INCLUDING PENALTIES FOR DISCLOSURE OF
20 CONFIDENTIAL INFORMATION, PROVIDING AN APPEAL FROM THE
21 ORDINANCE OR RESOLUTION LEVYING SUCH TAXES TO THE COURT OF
22 QUARTER SESSIONS AND TO THE SUPREME COURT AND SUPERIOR
23 COURT,' FURTHER PROVIDING FOR DELEGATION OF TAXING POWERS AND
24 RESTRICTIONS THEREON; PROVIDING FOR NONRESIDENT SPORTS
25 FACILITY USAGE FEE, FOR PARKING TAX RATES AND FOR PAYROLL
26 TAXES; FURTHER PROVIDING FOR LIMITATIONS ON RATES OF SPECIFIC
27 TAXES AND FOR THE APPOINTMENT OF A SINGLE COLLECTOR OF TAXES;
28 FURTHER PROVIDING FOR THE APPLICABILITY OF PETITIONS UNDER
29 THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE
30 MUNICIPALITIES FINANCIAL RECOVERY ACT; AND MAKING A REPEAL,"
20050S0157B1401 - 63 -
1 IS REPEALED.
2 SECTION 14. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
A24L53SFL/20050S0157B1401 - 64 -