SENATE AMENDED
PRIOR PRINTER'S NOS. 1363, 2442, 3506, PRINTER'S NO. 3646
3583
No. 1175 Session of 1983
INTRODUCED BY FRYER, SWEET, STUBAN, A. C. FOSTER, JR. AND LEVI,
JUNE 7, 1983
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, OCTOBER 2, 1984
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 excluding from the authority to levy realty transfer taxes
23 transfers between brothers and sisters or their spouses.
24 AMENDING THE ACT OF APRIL 13, 1972 (P.L.184, NO.62), ENTITLED <--
25 "AN ACT GIVING MUNICIPALITIES THE RIGHT AND POWER TO ADOPT
26 HOME RULE CHARTERS OR ONE OF SEVERAL OPTIONAL PLANS OF
27 GOVERNMENT AND TO EXERCISE THE POWERS AND AUTHORITY OF LOCAL
28 SELF-GOVERNMENT SUBJECT TO CERTAIN RESTRICTIONS AND
29 LIMITATIONS; PROVIDING PROCEDURES FOR SUCH ADOPTION AND
30 DEFINING THE EFFECT THEREOF," FURTHER PROVIDING FOR <--
31 CLARIFYING THE TAXATION OF RESIDENTS AND NONRESIDENTS BY <--
1 TAXING AUTHORITY OF HOME RULE MUNICIPALITIES. <--
2 The General Assembly of the Commonwealth of Pennsylvania
3 hereby enacts as follows:
4 Section 1. Section 2(1) of the act of December 31, 1965 <--
5 (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
6 July 1, 1981 (P.L.184, No.53) and June 23, 1982 (P.L.593,
7 No.168), is amended to read:
8 Section 2. Delegation of Taxing Powers and Restrictions
9 Thereon.--The duly constituted authorities of the following
10 political subdivisions, cities of the second class, cities of
11 the second class A, cities of the third class, boroughs, towns,
12 townships of the first class, townships of the second class,
13 school districts of the second class, school districts of the
14 third class, and school districts of the fourth class, in all
15 cases including independent school districts, may, in their
16 discretion, by ordinance or resolution, for general revenue
17 purposes, levy, assess and collect or provide for the levying,
18 assessment and collection of such taxes as they shall determine
19 on persons, transactions, occupations, privileges, subjects and
20 personal property within the limits of such political
21 subdivisions, and upon the transfer of real property, or of any
22 interest in real property, situate within the political
23 subdivision levying and assessing the tax, regardless of where
24 the instruments making the transfers are made, executed or
25 delivered or where the actual settlements on such transfer take
26 place. The taxing authority may provide that the transferee
27 shall remain liable for any unpaid realty transfer taxes imposed
28 by virtue of this act. Each local taxing authority may, by
29 ordinance or resolution, exempt any person whose total income
30 from all sources is less than five thousand dollars ($5,000) per
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1 annum from the per capita or similar head tax, occupation tax
2 and occupational privilege tax, or earned income tax, or any
3 portion thereof, and may adopt regulations for the processing of
4 claims for exemptions. Such local authorities shall not have
5 authority by virtue of this act:
6 (1) To levy, assess and collect or provide for the levying,
7 assessment and collection of any tax on the transfer of real
8 property when the transfer is by will or mortgage or the
9 intestate laws of this Commonwealth or on a transfer by the
10 owner of previously occupied residential premises to a builder
11 of new residential premises when such previously occupied
12 residential premises is taken in trade by such builder as part
13 of the consideration from the purchaser of a new previously
14 unoccupied single family residential premises or on a transfer
15 between corporations operating housing projects pursuant to the
16 housing and redevelopment assistance law and the shareholders
17 thereof, or on a transfer between nonprofit industrial
18 development agencies and industrial corporations purchasing from
19 them, or on transfer to or from nonprofit industrial development
20 agencies, or on a transfer between husband and wife, or on a
21 transfer between persons who were previously husband and wife
22 but who have since been divorced; provided such transfer is made
23 within three months of the date of the granting of the final
24 decree in divorce, or the decree of equitable distribution of
25 marital property, whichever is later, and the property or
26 interest therein, subject to such transfer, was acquired by the
27 husband and wife, or husband or wife, prior to the granting of
28 the final decree in divorce, or on a transfer between parent and
29 child or the spouse of such a child, or between parent and
30 trustee for the benefit of a child or the spouse of such child,
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1 or on a transfer between a grandparent and grandchild or the
2 spouse of such grandchild, or on a transfer between brother and
3 sister or brother and brother or sister and sister or the spouse
4 of such brother or sister, or on a transfer to a conservancy
5 which possesses a tax-exempt status pursuant to section
6 501(c)(3) of the Internal Revenue Code, and which has as its
7 primary purpose the preservation of land for historic,
8 recreational, scenic, agricultural or open space opportunities,
9 by and between a principal and straw party for the purpose of
10 placing a mortgage or ground rent upon the premises, or on a
11 correctional deed without consideration, or on a transfer to the
12 United States, the Commonwealth of Pennsylvania, or to any of
13 their instrumentalities, agencies or political subdivisions, by
14 gift, dedication or deed in lieu of condemnation, or deed of
15 confirmation in connection with condemnation proceedings, or
16 reconveyance by the condemning body of the property condemned to
17 the owner of record at the time of condemnation which
18 reconveyance may include property line adjustments provided said
19 reconveyance is made within one year from the date of
20 condemnation, leases, or on a conveyance to a trustee under a
21 recorded trust agreement for the express purpose of holding
22 title in trust as security for a debt contracted at the time of
23 the conveyance under which the trustee is not the lender and
24 requiring the trustee to make reconveyance to the grantor-
25 borrower upon the repayment of the debt, or in any sheriff sale
26 instituted by a mortgagee in which the purchaser of said sheriff
27 sale is the mortgagee who instituted said sale, or on a
28 privilege, transaction, subject, occupation or personal property
29 which is now or does hereafter become subject to a State tax or
30 license fee;
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1 * * *
2 Section 2. This act shall take effect in 60 days.
3 SECTION 1. SECTION 102 OF THE ACT OF APRIL 13, 1972 <--
4 (P.L.184, NO.62), KNOWN AS THE HOME RULE CHARTER AND OPTIONAL
5 PLANS LAW, IS AMENDED BY ADDING DEFINITIONS TO READ:
6 SECTION 102. AS USED IN THIS ACT:
7 * * *
8 "NONRESIDENT" MEANS ANY PERSON OR ENTITY NOT A RESIDENT
9 WITHIN THE MEANING OF THIS ACT.
10 * * *
11 "RATE OF TAXATION" MEANS THE AMOUNT OF TAX LEVIED BY A
12 MUNICIPALITY ON A PERMISSIBLE SUBJECT OF TAXATION.
13 "RESIDENT" MEANS ANY PERSON, OR ANY CORPORATION, PARTNERSHIP,
14 ASSOCIATION, JOINT STOCK ASSOCIATION OR OTHER ENTITY: LIVING IN <--
15 OR MAINTAINING A PERMANENT OR FIXED PLACE OF ABODE IN A
16 MUNICIPALITY AND CONDUCTING OR ENGAGING IN A BUSINESS FOR PROFIT
17 WITHIN A MUNICIPALITY AND PERFORMING WITHIN A MUNICIPALITY AND
18 DISCHARGING ALL OR PART OF THE AFFAIRS OF A BUSINESS FOR PROFIT.
19 (1) LIVING IN OR MAINTAINING A PERMANENT OR FIXED PLACE OF <--
20 ABODE IN A MUNICIPALITY; OR
21 (2) CONDUCTING OR ENGAGING IN A BUSINESS FOR PROFIT WITHIN A
22 MUNICIPALITY.
23 "SUBJECT OF TAXATION" MEANS ANY PERSON, BUSINESS,
24 CORPORATION, PARTNERSHIP, ENTITY, REAL PROPERTY, TANGIBLE OR
25 INTANGIBLE PERSONAL PROPERTY, PROPERTY INTEREST, TRANSACTION, OR <--
26 OCCURRENCE, PRIVILEGE, TRANSFER, OCCUPATION OR ANY OTHER LEVY <--
27 WHICH IS DETERMINED TO BE TAXABLE BY THE GENERAL ASSEMBLY. THE <--
28 TERM SHALL NOT BE CONSTRUED TO MEAN THE RATE OF TAX WHICH MAY BE
29 IMPOSED ON A PERMISSIBLE SUBJECT OF TAXATION.
30 "UNIFORM ACT" MEANS AN ACT OF THE GENERAL ASSEMBLY APPLICABLE <--
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1 OR INTENDED TO BE APPLICABLE THROUGHOUT THE COMMONWEALTH AND
2 WHICH APPLIES OR IS INTENDED TO APPLY TO EACH AND EVERY
3 MUNICIPALITY OF THE COMMONWEALTH WITHOUT EXCEPTION IN THE SAME
4 MANNER AND TO THE SAME EXTENT. FOR THE PURPOSES OF THIS
5 DEFINITION, THE TERM "MUNICIPALITY" SHALL MEAN ALL COUNTIES,
6 CITIES, BOROUGHS, INCORPORATED TOWNS AND TOWNSHIPS WITHIN THE
7 COMMONWEALTH.
8 SECTION 2. SECTION 302 OF THE ACT, AMENDED JULY 3, 1974
9 (P.L.421, NO.148), IS AMENDED TO READ:
10 SECTION 302. (A) [THE] WITH RESPECT TO THE FOLLOWING <--
11 SUBJECTS, THE HOME RULE CHARTER ADOPTED IN ACCORDANCE WITH THE
12 PROVISIONS OF THIS ACT SHALL NOT GIVE ANY POWER OR AUTHORITY TO
13 THE MUNICIPALITY CONTRARY TO, OR IN LIMITATION OR ENLARGEMENT OF
14 POWERS GRANTED BY ACTS OF THE GENERAL ASSEMBLY WHICH ARE
15 APPLICABLE TO A CLASS OR CLASSES OF MUNICIPALITIES [ON THE <--
16 FOLLOWING SUBJECTS]: <--
17 (1) THE FILING AND COLLECTION OF MUNICIPAL TAX CLAIMS OR
18 LIENS AND THE SALE OF REAL OR PERSONAL PROPERTY IN SATISFACTION
19 THEREOF.
20 (2) THE PROCEDURES IN THE EXERCISE OF THE POWERS OF EMINENT
21 DOMAIN, AND THE ASSESSMENT OF DAMAGES AND BENEFITS FOR PROPERTY
22 TAKEN, INJURED OR DESTROYED.
23 (3) BOUNDARY CHANGES OF MUNICIPALITIES.
24 (4) REGULATION OF PUBLIC SCHOOLS.
25 (5) THE REGISTRATION OF ELECTORS AND THE CONDUCT OF
26 ELECTIONS.
27 [(6) THE FIXING OF SUBJECTS OF TAXATION. <--
28 (7) THE FIXING OF THE RATES OF NONPROPERTY OR PERSONAL TAXES
29 LEVIED UPON NONRESIDENTS.
30 (8) THE ASSESSMENT OF REAL OR PERSONAL PROPERTY AND PERSONS
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1 FOR TAXATION PURPOSES.] <--
2 (9) DEFINING OR PROVIDING FOR THE PUNISHMENT OF ANY FELONY
3 OR MISDEMEANOR.
4 (10) MUNICIPAL PLANNING UNDER THE PROVISIONS OF THE ACT OF
5 JULY 31, 1968 (P.L.805, NO.247), KNOWN AS THE "PENNSYLVANIA
6 MUNICIPALITIES PLANNING CODE."
7 (A.1) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ACT OR <--
8 THE PROVISIONS OF ANY ACT OF THE GENERAL ASSEMBLY TO THE
9 CONTRARY UNLESS PROHIBITED BY THE CONSTITUTION OF PENNSYLVANIA, <--
10 THE PROVISIONS OF ANY OTHER ACT OF THE GENERAL ASSEMBLY, THE
11 PROVISIONS OF THIS ACT OR ITS HOME RULE CHARTER, A MUNICIPALITY
12 WHICH HAS ADOPTED A HOME RULE CHARTER SHALL HAVE, WITHOUT <--
13 LIMITATION, THE POWER AND AUTHORITY TO ENACT AND ENFORCE LOCAL
14 TAX ORDINANCES UPON ANY SUBJECT OF TAXATION GRANTED BY THE <--
15 GENERAL ASSEMBLY TO THE CLASS OF MUNICIPALITY OF WHICH IT WOULD
16 BE A MEMBER BUT FOR THE ADOPTION OF A HOME RULE CHARTER, AT ANY
17 RATE OF TAXATION DETERMINED BY THE GOVERNING BODY. UNLESS <--
18 PROHIBITED BY THE CONSTITUTION OF PENNSYLVANIA, ITS HOME RULE
19 CHARTER, OR THE PROVISIONS OF THIS SUBSECTION. ACT. NO HOME RULE <--
20 MUNICIPALITY SHALL ESTABLISH OR LEVY A RATE OF TAXATION UPON
21 NONRESIDENTS WHICH IS GREATER THAN THE RATE WHICH SUCH
22 MUNICIPALITY WOULD HAVE BEEN AUTHORIZED TO LEVY ON NONRESIDENTS
23 BUT FOR THE ADOPTION OF A HOME RULE CHARTER. THE GOVERNING BODY
24 OF A HOME RULE MUNICIPALITY SHALL NOT BE SUBJECT TO ANY
25 LIMITATION ON THE RATES OF TAXATION IMPOSED UPON RESIDENTS.
26 (1) SUCH MUNICIPALITY IS DENIED ANY POWER AND AUTHORITY TO <--
27 FIX A SUBJECT OF TAXATION OR IMPOSE A TAX UNLESS SUCH POWER AND
28 AUTHORITY HAS BEEN GRANTED BY THE GENERAL ASSEMBLY TO THE CLASS
29 OF MUNICIPALITY OF WHICH IT WOULD BE A MEMBER BUT FOR THE
30 ADOPTION OF A HOME RULE CHARTER.
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1 (2) SUCH MUNICIPALITY SHALL NOT ESTABLISH OR LEVY A RATE OF
2 TAXATION UPON NONRESIDENTS WHICH IS GREATER THAN THE RATE WHICH
3 THE MUNICIPALITY WOULD HAVE BEEN AUTHORIZED TO LEVY ON
4 NONRESIDENTS BUT FOR THE ADOPTION OF A HOME RULE CHARTER. NO
5 LIMITATION ON RATE OF TAXATION SHALL APPLY TO RESIDENTS AS
6 DETERMINED BY THE GOVERNING BODY.
7 (3) NO MUNICIPALITY SHALL ASSESS THE VALUE OF REAL OR
8 PERSONAL PROPERTY OR ASSESS PERSONS FOR TAXATION PURPOSES UNLESS
9 AUTHORIZED BY AN ACT OF THE GENERAL ASSEMBLY WHICH APPLIES TO
10 THE CLASS OF MUNICIPALITY OF WHICH IT WOULD BE A MEMBER BUT FOR
11 THE ADOPTION OF A HOME RULE CHARTER.
12 (B) NO MUNICIPALITY SHALL (I) ENGAGE IN ANY PROPRIETARY OR
13 PRIVATE BUSINESS EXCEPT AS AUTHORIZED BY THE GENERAL ASSEMBLY,
14 (II) EXERCISE POWERS CONTRARY TO, OR IN LIMITATION OR
15 ENLARGEMENT OF POWERS GRANTED BY ACTS OF THE GENERAL ASSEMBLY
16 WHICH ARE [APPLICABLE IN EVERY PART OF THE COMMONWEALTH] UNIFORM <--
17 ACTS, (III) BE GIVEN THE POWER TO DIMINISH THE RIGHTS OR
18 PRIVILEGES OF ANY FORMER MUNICIPAL EMPLOYE ENTITLED TO BENEFITS
19 OR ANY PRESENT MUNICIPAL EMPLOYE IN HIS PENSION OR RETIREMENT
20 SYSTEM, (IV) ENACT OR PROMULGATE ANY ORDINANCE OR REGULATION
21 WITH RESPECT TO DEFINITIONS, SANITATION, SAFETY, HEALTH,
22 STANDARDS OF IDENTITY OR LABELING PERTAINING TO THE MANUFACTURE,
23 PROCESSING, STORAGE, DISTRIBUTION AND SALE OF ANY FOODS, GOODS
24 OR SERVICES SUBJECT TO ANY COMMONWEALTH LAWS OR REGULATIONS
25 UNLESS SUCH MUNICIPAL ORDINANCE OR REGULATION IS UNIFORM IN ALL
26 RESPECTS WITH SUCH COMMONWEALTH LAWS AND REGULATIONS. NOTHING
27 HEREIN CONTAINED SHALL BE CONSTRUED TO IN ANY WAY AFFECT THE
28 POWER OF ANY MUNICIPALITY TO ENACT AND ENFORCE ORDINANCES
29 RELATING TO BUILDING CODES OR ANY OTHER SAFETY, SANITATION OR
30 HEALTH REGULATION PERTAINING THERETO, NOR (V) ENACT ANY
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1 PROVISION INCONSISTENT WITH ANY STATUTE HERETOFORE ENACTED BY
2 THE GENERAL ASSEMBLY AFFECTING THE RIGHTS, BENEFITS OR WORKING
3 CONDITIONS OF ANY EMPLOYE OF A POLITICAL SUBDIVISION OF THE
4 COMMONWEALTH.
5 (C) ACTS OF THE GENERAL ASSEMBLY IN EFFECT ON THE EFFECTIVE
6 DATE OF THIS ACT THAT ARE UNIFORM [AND APPLICABLE [THROUGHOUT] <--
7 IN EVERY PART OF THE COMMONWEALTH] ACTS SHALL REMAIN IN EFFECT <--
8 AND SHALL NOT BE CHANGED OR MODIFIED BY THIS ACT. ACTS OF THE
9 GENERAL ASSEMBLY ENACTED AFTER THE EFFECTIVE DATE OF THIS ACT
10 THAT ARE UNIFORM [AND APPLICABLE [THROUGHOUT] IN EVERY PART OF <--
11 THE COMMONWEALTH] ACTS SHALL SUPERSEDE ANY MUNICIPAL ORDINANCE <--
12 OR RESOLUTION ON THE SAME SUBJECT.
13 (D) NO MUNICIPALITY WHICH ADOPTS A HOME RULE CHARTER SHALL
14 AT ANY TIME THEREUNDER DETERMINE DUTIES, RESPONSIBILITIES OR
15 REQUIREMENTS PLACED UPON BUSINESSES, OCCUPATIONS AND EMPLOYERS,
16 INCLUDING THE DUTY TO WITHHOLD, REMIT OR REPORT TAXES OR
17 PENALTIES LEVIED OR IMPOSED UPON THEM OR UPON PERSONS IN THEIR
18 EMPLOYMENT, EXCEPT AS EXPRESSLY PROVIDED BY ACTS OF THE GENERAL
19 ASSEMBLY, WHICH ARE [APPLICABLE IN EVERY PART OF THE <--
20 COMMONWEALTH OR WHICH ARE APPLICABLE TO ALL MUNICIPALITIES OR TO
21 A CLASS OR CLASSES OF MUNICIPALITIES] UNIFORM ACTS: PROVIDED, <--
22 HOWEVER, THAT THIS SUBSECTION SHALL NOT BE CONSTRUED AS A
23 LIMITATION IN FIXING PERMISSIBLE SUBJECTS AND RATES OF TAXATION <--
24 ON PERMISSIBLE SUBJECTS OF TAXATION. <--
25 (E) NO MUNICIPALITY SHALL ENACT ANY ORDINANCE OR TAKE ANY
26 OTHER ACTION DEALING WITH THE REGULATION OF THE TRANSFER,
27 OWNERSHIP, TRANSPORTATION OR POSSESSION OF FIREARMS.
28 (F) NOTHING CONTAINED HEREIN SHALL LIMIT OR TAKE AWAY ANY
29 RIGHT OF A MUNICIPALITY WHICH ADOPTS A HOME RULE CHARTER FROM
30 LEVYING ANY TAX WHICH IT HAD THE POWER TO LEVY HAD IT NOT
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1 ADOPTED A HOME RULE CHARTER.
2 (G) NO PROVISION OF THIS OR ANY OTHER ACT OF THE GENERAL <--
3 ASSEMBLY SHALL LIMIT A MUNICIPALITY WHICH ADOPTS A HOME RULE
4 CHARTER FROM ESTABLISHING ITS OWN RATES OF TAXATION UPON ALL
5 AUTHORIZED SUBJECTS OF TAXATION EXCEPT THOSE SPECIFIED IN
6 SUBSECTION (A)(7) HEREIN.
7 SECTION 3. SECTION 8 OF THE ACT OF DECEMBER 31, 1965
8 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, IS
9 REPEALED INSOFAR AS IT RELATES TO LIMITATIONS ON RATES OF TAXES
10 IMPOSED ON RESIDENTS OF HOME RULE MUNICIPALITIES.
11 SECTION 4. THIS ACT SHALL BE RETROACTIVE TO APRIL 13, 1972.
12 SECTION 5. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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