PRINTER'S NO. 1055
No. 946 Session of 1995
INTRODUCED BY BARLEY, PITTS, SEMMEL, E. Z. TAYLOR, DEMPSEY,
SAYLOR, RAYMOND, BUNT, STISH, ZIMMERMAN, MELIO, TRELLO,
SCHULER, GODSHALL, ZUG, PETTIT, WAUGH, FARMER, BROWN, TRUE,
STERN, HUTCHINSON, HERSHEY, GEIST, MERRY, MICOZZIE, CIVERA,
TRICH, ADOLPH, MILLER, HESS, LAUGHLIN, BATTISTO, BAKER,
MASLAND, DRUCE, CLYMER, FARGO, FLICK, ARMSTRONG, KREBS,
HERMAN, FAIRCHILD, HANNA, LEH, TIGUE, REBER, ARGALL AND
GORDNER, MARCH 1, 1995
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MARCH 1, 1995
AN ACT
1 Authorizing certain taxing districts to adopt optional tax
2 plans; and providing for the establishment, approval,
3 implementation and operation of approved optional tax plans.
4 TABLE OF CONTENTS
5 Chapter 1. General Provisions
6 Section 101. Short title.
7 Section 102. Legislative findings.
8 Section 103. Definitions.
9 Section 104. Applicability.
10 Chapter 3. Optional Tax Plan
11 Section 301. Legislative authorization.
12 Section 302. Legislative intent and purpose.
13 Section 303. Alternate tax levies.
14 Section 304. Limitations.
15 Chapter 5. Tax Study Commission
1 Section 501. Establishment of commission.
2 Section 502. Election of commission.
3 Section 503. Nomination qualifications.
4 Section 504. Election results.
5 Section 505. Commission oath.
6 Section 506. Organization.
7 Section 507. Vacancies.
8 Section 508. Powers and duties.
9 Section 509. Expenses.
10 Section 510. Meetings.
11 Section 511. Report and findings.
12 Section 512. Discharge.
13 Section 513. Recommendations.
14 Section 514. Format of question.
15 Section 515. Transmission of report.
16 Section 516. Limitations.
17 Chapter 7. Referendum and Amendment
18 Section 701. Referendum question.
19 Section 702. Adoption of plan.
20 Section 703. Duration of plan.
21 Section 704. Amendments.
22 Section 705. Initiation of amendment.
23 Section 706. Amendment procedure.
24 Section 707. Referendum on amendment.
25 Section 708. Conduct of elections.
26 Section 709. Notices of elections.
27 Section 710. Repeal of plan.
28 Chapter 9. Operation Under Plan
29 Section 901. Recording of approved plan.
30 Section 902. Effective date of plan.
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1 Section 903. Establishment of tax levies.
2 Section 904. Revenue increase limitation.
3 Section 905. Revenue sharing.
4 Chapter 11. Miscellaneous Provisions
5 Section 1101. Effect of nonadoption of plan.
6 Section 1102. Affect on home rule municipality.
7 Section 1103. Severability.
8 Section 1104. Repeals.
9 Section 1105. Effective date.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 CHAPTER 1
13 GENERAL PROVISIONS
14 Section 101. Short title.
15 This act shall be known and may be cited as the Optional Tax
16 Act for Local Taxing Districts.
17 Section 102. Legislative findings.
18 (a) Results of study.--The General Assembly declares that
19 its exhaustive study of local taxation results in a finding that
20 concludes there is not one simplistic schedule of impositions
21 that will best serve all the school districts and local
22 governments of this Commonwealth.
23 (b) Property tax reliance.--The General Assembly does find
24 that there is generally too great a reliance on some impositions
25 such as the property tax. The General Assembly also finds that
26 school districts and local governments possess firsthand
27 knowledge of the ability of their taxpayers to sustain
28 governmental responsibilities and services. The General Assembly
29 recognizes that these entities and their citizenry need
30 flexibility to develop tax reform which will best serve their
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1 individual circumstances.
2 (c) Equitable system of taxation.--The General Assembly
3 declares that tax reform should not be a process limited to the
4 increase of impositions; but, rather, tax reform at the school
5 district and local government level should be a process that
6 results in a more equitable system of taxation.
7 (d) Intent.--It is the intent of the General Assembly to
8 grant to school districts and municipalities and their
9 respective residents the power to alter existing tax structures
10 in the manner provided by, and consistent with the provisions
11 of, this act. It is also the intent of the General Assembly to
12 provide an opportunity for optional tax plans to be studied and
13 voted upon by the registered electors of a local taxing district
14 in conformance with the Constitution of Pennsylvania as herein
15 stated.
16 Section 103. Definitions.
17 The following words and phrases when used in this act shall
18 have the meanings given to them in this section unless the
19 context clearly indicates otherwise:
20 "Commission" or "tax study commission." The body composed of
21 electors of the taxing district elected under the provisions of
22 this act.
23 "Election officials." The county boards of elections.
24 "Electors." The registered voters of any taxing district
25 involved in proceedings relating to the adoption and repeal of
26 an optional tax plan.
27 "Governing body." The county commissioners, city councils,
28 borough or incorporated town councils, commissioners of
29 townships of the first class, supervisors of townships of the
30 second class, and the board of school directors of any school
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1 district or their successor forms of government.
2 "Initiative." The filing with the applicable election
3 officials at least 90 days prior to the next primary or general
4 election of a petition containing a proposal for referendum
5 signed by electors comprising 5% of the number of electors
6 voting for the office of Governor in the last gubernatorial
7 general election in each taxing district affected. Initiative on
8 a similar question shall not be submitted more often than once
9 in two years.
10 "Municipality." A county, city, borough, incorporated town,
11 township or home rule municipality. The term shall not include
12 any county of the first class, any city of the first class or
13 any school district of the first class.
14 "Nonresident." Any person or entity not a resident within
15 the meaning of this act.
16 "Optional tax plan." A written document defining the powers,
17 rights, duties and limitations of the taxing district,
18 specifying the permissible subjects of taxation and the
19 suggested minimum and/or maximum rates of taxation for the
20 imposition of various tax levies on any or all permissible
21 subjects of taxation. The term shall not include any county of
22 the first class, any city of the first class or any school
23 district of the first class.
24 "Referendum." A question placed on the ballot, by initiative
25 or otherwise, for approval or disapproval by the electors.
26 "Resident." Any person, or any corporation, partnership,
27 association, joint-stock association or other entity:
28 (1) living in or maintaining a permanent or fixed place
29 of abode in a taxing district; or
30 (2) conducting or engaging in a business for profit
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1 within a taxing district.
2 "Subject of taxation." Any person, business, corporation,
3 partnership, entity, real property, tangible or intangible
4 personal property, property interest, transaction, occurrence,
5 privilege, transfer, occupation or any other levy which is
6 determined to be taxable by the General Assembly. The term shall
7 not be construed to mean the tax levy which may be imposed on a
8 permissible subject of taxation.
9 "Tax levy." The amount of tax fixed by a taxing district on
10 a permissible subject of taxation.
11 "Taxing district." A municipality or school district.
12 Section 104. Applicability.
13 The provisions of this act shall apply to all municipalities
14 and school districts other than counties of the first class,
15 cities of the first class and school districts of the first
16 class.
17 CHAPTER 3
18 OPTIONAL TAX PLAN
19 Section 301. Legislative authorization.
20 The General Assembly authorizes any taxing district to
21 provide for the establishment, approval, implementation and
22 operation of an optional tax plan. Any taxing district which
23 adopts the optional tax plan may impose tax levies consistent
24 with the types of local taxes which are permitted by enactments
25 of the General Assembly at such levels and in such combination
26 on permissible subjects of taxation as do not exceed the
27 limitations in the approved optional tax plan.
28 Section 302. Legislative intent and purpose.
29 (a) Conferral of limited powers.--The grant of power
30 contained in this act is intended to confer the limited power of
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1 self-government in the areas of tax levies on permissible
2 subjects of taxation consistent with the Constitution of
3 Pennsylvania, the provisions and limitations prescribed by this
4 act and any adopted optional tax plan. Any specific enumeration
5 of powers contained in this act or in any other laws shall not
6 be construed in any way to limit the description of power
7 contained in this act. Any specifically enumerated powers shall
8 be construed as in addition and supplementary to the powers
9 conferred in this act.
10 (b) Liberal construction.--All grants of power to taxing
11 districts governed by an optional tax plan under this act,
12 whether in the form of specific enumeration or general terms,
13 shall be liberally construed in favor of the taxing district
14 insofar as the grants of power are consistent with the types of
15 local taxes permitted by enactments of the General Assembly.
16 Section 303. Alternate tax levies.
17 A taxing district which has adopted an optional tax plan may
18 exercise any power relating to the establishment of tax levies
19 on permissible subjects of taxation and perform any function not
20 denied by the Constitution of Pennsylvania, by the General
21 Assembly or by the adopted optional tax plan at any time insofar
22 as the actions are consistent with the types of local taxes
23 permitted by enactments of the General Assembly. It is the
24 intent of the General Assembly that this section apply only to
25 taxing powers and matters related to taxation.
26 Section 304. Limitations.
27 (a) General restrictions.--With respect to the following
28 subjects, the optional tax plan adopted in accordance with the
29 provisions of this act shall not give any power or authority to
30 the taxing district contrary to, or in limitation or enlargement
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1 of, powers granted by statutes which are applicable to a class
2 or classes of municipalities or school districts:
3 (1) The filing and collection of tax claims or liens and
4 the sale of real or personal property in satisfaction
5 thereof.
6 (2) The fixing of subjects of taxation.
7 (3) The fixing of the amounts of nonproperty or personal
8 taxes levied upon nonresidents.
9 (4) The assessment of real or personal property and
10 persons for taxation purposes.
11 (b) Taxation power.--Consistent with the Constitution of
12 Pennsylvania, the provisions of any other statute, the
13 provisions of this act or the approved optional tax plan, a
14 taxing district which has adopted an optional tax plan shall
15 have the power and authority to enact and enforce local tax
16 ordinances or resolutions upon any subject of taxation granted
17 by the General Assembly to the class of taxing district of which
18 it would be a member but for the adoption of an optional tax
19 plan. The tax levies shall be determined by the governing body
20 of the taxing district as long as those tax levies do not exceed
21 the limitations of the adopted optional tax plan and as long as
22 the types of local taxes are consistent with and permitted by
23 enactments of the General Assembly.
24 (c) Nonresidents.--No taxing district shall establish or
25 levy a tax upon nonresidents which is greater than the amount of
26 tax which the taxing district would have been authorized to levy
27 on nonresidents but for the adoption of an optional tax plan.
28 (d) Contrary duties.--No taxing district which adopts an
29 optional tax plan shall, at any time, determine duties,
30 responsibilities or requirements placed upon businesses,
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1 occupations and employers, including the duty to withhold, remit
2 or report taxes or penalties levied or imposed upon them or upon
3 persons in their employment, except as expressly provided by
4 statutes which are applicable in every part of this Commonwealth
5 or which are applicable to all municipalities or to a class or
6 classes of municipalities. This subsection shall not be
7 construed as a limitation on the fixing of tax levies on
8 permissible subjects of taxation by a taxing district.
9 (e) Power unaffected.--Nothing contained in this act shall
10 limit or take away any right of a taxing district which adopts
11 an optional tax plan from levying any tax which it had the power
12 to levy consistent with the approved optional tax plan.
13 (f) Levies not restricted.--No provision of this or any
14 other statute shall limit a taxing district which adopts an
15 optional tax plan from establishing its own tax levies, subject
16 to the limitations of the plan, upon all authorized subjects of
17 taxation except those specified in subsection (a)(3), provided
18 that the levies are consistent with the types of local taxes
19 which are permitted by enactments of the General Assembly.
20 CHAPTER 5
21 TAX STUDY COMMISSION
22 Section 501. Establishment of commission.
23 (a) Submission of question.--Whenever authorized by
24 ordinance or resolution of the governing body of a taxing
25 district, or upon petition of the registered voters of any
26 taxing district to the county board of elections of the county
27 wherein the taxing district is located, an election shall be
28 held in the taxing district upon the following question:
29 Shall a tax study commission of (7, 9 or 11) members be
30 elected to study the existing policies of taxation of the
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1 taxing district; to consider the advisability of the
2 adoption of an optional tax plan; to recommend the
3 adoption of an optional tax plan; or to draft and
4 recommend an optional tax plan?
5 (b) Filing of ordinance or resolution.--Within five days
6 after the final enactment of an ordinance or resolution
7 authorizing an election, the municipal clerk or secretary of the
8 taxing district shall file a certified copy of the ordinance or
9 resolution with the county board of elections, together with a
10 copy of the question to be submitted to the electors. At the
11 next municipal or general or primary election occurring not less
12 than the 13th Tuesday after the filing of the ordinance or
13 resolution or the petition with the county board of elections,
14 it shall cause the appropriate question to be submitted to the
15 electors of the taxing district as other questions are submitted
16 under the provisions of the act of June 3, 1937 (P.L.1333,
17 No.320), known as the Pennsylvania Election Code.
18 (c) Form of petition.--The petition calling for such
19 election shall be in the form required by subsection (d) and
20 shall be signed by electors of the taxing district comprising 5%
21 of the number of electors voting for the office of Governor in
22 the last gubernatorial general election within the taxing
23 district.
24 (d) Filing of petition.--A referendum petition under this
25 section shall be filed not later than the 13th Tuesday prior to
26 the election, and the petition and the proceedings on the
27 petition shall be in the manner and subject to the provisions of
28 the Pennsylvania Election Code which relate to the signing,
29 filing and adjudication of nomination petitions insofar as the
30 provisions are applicable. No referendum petition shall be
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1 signed or circulated prior to the 20th Tuesday before the
2 election nor later than the 13th Tuesday before the election. No
3 candidate's nomination petition shall be signed or circulated
4 prior to the 13th Tuesday before the election nor later than the
5 10th Tuesday before the election and shall be filed on or before
6 the 10th Tuesday before the election.
7 Section 502. Election of commission.
8 A tax study commission of 7, 9 or 11 members, as designated
9 in the question, shall be elected by the qualified voters at the
10 same election the question is submitted to the electors. Each
11 candidate for the office of tax study commissioner shall be
12 nominated and placed upon the ballot containing the question in
13 the manner provided by and subject to the provisions of the act
14 of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
15 Election Code, which relate to the nomination of a candidate
16 nominated by nomination papers filed for other offices elected
17 by the voters of a taxing district. Each candidate shall be
18 nominated and listed without any political designation or
19 slogan. No nomination paper shall be signed or circulated prior
20 to the 13th Tuesday before the election nor later than the 10th
21 Tuesday before the election. No signature shall be counted
22 unless it bears a date within this period. Each voter shall be
23 instructed to vote on the question and, regardless of the manner
24 of his or her vote on the question, to vote for the designated
25 number of members of a tax study commission who shall serve if
26 the question is or has been determined in the affirmative. If an
27 insufficient number of nominating papers is filed to fill all of
28 the designated positions on the tax study commission, the
29 question of establishing a commission shall be placed on the
30 ballot; however, unless a sufficient number of tax study
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1 commission members are elected by receiving at least as many
2 votes as signatures are required to file a nominating petition,
3 the question of creating a tax study commission shall be deemed
4 to have been rejected.
5 Section 503. Nomination qualifications.
6 (a) Registered voters.--Candidates for the tax study
7 commission shall be registered voters of the taxing district.
8 Each candidate shall be nominated by nomination papers signed by
9 a number of qualified electors of the taxing district equal to
10 at least 2% of the number of electors voting for the office of
11 Governor in the last gubernatorial general election within the
12 taxing district or 200 registered voters, whichever is less, and
13 filed with the county board of elections not later than the 10th
14 Tuesday prior to the date of the election.
15 (b) Nomination papers.--Each nominating paper shall set
16 forth the name, place of residence and post office address of
17 the candidate nominated, that the nomination is for the office
18 of tax study commissioner, and that the signers are legally
19 qualified to vote for the candidate. Each elector may sign
20 nomination papers for only as many candidates for tax study
21 commissioner as the elector could vote for at the election.
22 Every voter signing a nominating paper shall add to the voter's
23 signature the voter's place of residence, post office address
24 and street number, if any.
25 (c) Notice of acceptance.--Each nominating paper shall,
26 before it may be filed with the county board of elections,
27 contain, under oath or affirmation of the candidate, an
28 acceptance of the nomination, in writing, signed by the
29 candidate nominated, upon or annexed to the paper, or if the
30 same person be named in more than one paper, upon or annexed to
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1 one of the papers. Acceptance shall certify that the candidate
2 is a registered voter of the taxing district, that the nominee
3 consents to stand as a candidate at the election, and that, if
4 elected, the candidate agrees to take office and serve.
5 (d) Verification.--Each nominating paper shall be verified
6 by an oath or affirmation of one or more of the signers of the
7 petition, taken and subscribed before a person qualified under
8 the laws of this Commonwealth to administer an oath, to the
9 effect that the paper was signed by each of the signers in the
10 signer's proper handwriting, that the signers are, to the best
11 knowledge and belief of the affiant, registered voters of the
12 taxing district, and that the nomination paper is prepared and
13 filed in good faith for the sole purpose of endorsing the person
14 named in the paper for election, as stated in the paper.
15 Section 504. Election results.
16 (a) Returns.--The result of the votes cast for and against
17 the question as to the election of a tax study commission shall
18 be returned by the election officers, and a canvass of the
19 election had, as is provided by law in the case of other public
20 questions put to the voters of a municipality.
21 (b) Tabulation.--The votes cast for members of the
22 commission shall be counted, and the result returned by the
23 election officers, and a canvass of the election had, as is
24 provided by law in the case of election of members of municipal
25 council or board. The designated number of candidates receiving
26 the greatest number of votes shall be elected and shall
27 constitute the commission.
28 (c) Defeat of question.--If a majority of those voting on
29 the question vote against the election of a commission, none of
30 the candidates shall be elected.
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1 (d) Tie votes for members.--If two or more candidates for
2 the last seat are equal in number of votes, they shall draw lots
3 to determine which one shall be elected.
4 Section 505. Commission oath.
5 As soon as possible, and no later than ten days after its
6 certification of election, the elected members of a tax study
7 commission shall, before a judge of a court of common pleas,
8 make oath or affirmation to support the Constitution of the
9 United States and the Constitution of Pennsylvania, and to
10 perform the duties of the office with fidelity.
11 Section 506. Organization.
12 As soon as possible and no later than 15 days after its
13 certification of election, the tax study commission shall
14 organize and hold its first meeting, elect one of its members as
15 chairman and another member as vice chairman, fix its hours and
16 place of meeting, and adopt such rules for the conduct of its
17 business as it may deem necessary and advisable. A majority of
18 the members of the commission shall constitute a quorum for the
19 transaction of business, but no recommendation of the commission
20 shall have any legal effect unless adopted by a majority of the
21 whole number of the members of the commission.
22 Section 507. Vacancies.
23 In case of any vacancy in the tax study commission, the
24 remaining members of the commission shall fill the vacancy by
25 appointing some other properly qualified elector.
26 Section 508. Powers and duties.
27 It shall be the function and duty of the tax study commission
28 to study the policies of taxation of the taxing district,
29 compare the policies with other policies of taxation under the
30 laws of this Commonwealth and determine whether or not, in its
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1 judgment, the tax policies of the taxing district could be
2 strengthened or made more equitable, or whether operation of the
3 policies could become more economical or efficient under a
4 changed form of taxation. The commission's review shall include,
5 but not be limited to, consideration of all of the following:
6 (1) Historic rate and revenue trends by type tax and
7 subject of taxation.
8 (2) Percentage of total revenues provided by type tax
9 and subject of taxation.
10 (3) Age, income and employment characteristics of
11 existing tax base.
12 (4) Projected revenues by type tax and subject of
13 taxation.
14 (5) The combined effect of the proposed optional tax
15 plan as it relates to taxes levied by other taxing districts
16 to which the taxpayers would be subject.
17 The tax study commission shall be limited in its consideration
18 to the types of taxes to be allowed within its taxing district
19 consistent with the Constitution of Pennsylvania and permitted
20 by enactments of the General Assembly and to the maximum and
21 minimum limits of each type of tax. Rates of taxation shall be
22 set by the governing body of the taxing district within the
23 confines of the approved optional tax plan so as to provide
24 fiscal flexibility and the opportunity for equitable taxation
25 each fiscal year.
26 Section 509. Expenses.
27 (a) Compensation.--Members of the tax study commission shall
28 serve without compensation, but may be reimbursed by the taxing
29 district for the necessary expenses incurred in the performance
30 of their duties. The governing body of the taxing district may
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1 appropriate moneys necessary for this purpose.
2 (b) Other expenses.--Within the limits of any appropriations
3 and other public and privately contributed funds and services as
4 shall be made available to it, the commission may appoint one or
5 more consultants and clerical and other assistants to serve at
6 the pleasure of the commission and may fix a reasonable
7 compensation to be paid the consultants and clerical and other
8 assistants.
9 Section 510. Meetings.
10 The tax study commission shall hold one or more public
11 hearings, may sponsor public forums and generally shall provide
12 for the widest possible public information and discussion
13 respecting the purposes and progress of its work.
14 Section 511. Report and findings.
15 (a) Deadline.--The tax study commission shall report its
16 findings and recommendations to the citizens of the taxing
17 district within nine calendar months from the date of its
18 election. It shall publish or cause to be published sufficient
19 copies of its final report for public study and information, and
20 shall deliver to the municipal clerk or secretary of the taxing
21 district sufficient copies of the report to supply it to any
22 interested citizen upon request. If the commission recommends
23 the adoption of an optional tax plan as authorized in this act,
24 the report shall contain the complete plan as recommended.
25 (b) Itemization of expenses.--There shall be attached to
26 each copy of the report of the commission a statement sworn to
27 by the members of the commission listing in detail the funds,
28 goods, materials and services, both public and private, used by
29 the commission in the performance of its work and the
30 preparation and filing of the report. In addition, the list
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1 shall identify specifically the supplier of each item on the
2 list.
3 (c) Filing with Commonwealth.--A copy of the final report of
4 the commission, with its findings and recommendations, shall be
5 filed with the Department of Community Affairs.
6 (d) Materials.--All the records, reports, tapes, minutes of
7 meetings and written discussions of the tax study commission
8 shall, upon its discharge, be turned over to the municipal clerk
9 or secretary of the taxing district for permanent safekeeping
10 and be made available for public inspection at any time during
11 regular business hours.
12 Section 512. Discharge.
13 (a) General rule.--The tax study commission shall be
14 discharged upon the filing of its report. If the commission's
15 recommendations require further action in the form of a
16 referendum on the part of the people of the taxing district, the
17 commission shall not be discharged until the action has been
18 finally concluded. At any time prior to 60 days before the date
19 of the referendum, the commission may modify or change any
20 recommendation set forth in the final report by publishing an
21 amended report.
22 (b) Effect of amendment.--Whenever a commission issues an
23 amended report under subsection (a), the amended report shall
24 supersede the final report and the final report shall cease to
25 have any legal effect under this act.
26 (c) Procedures.--The procedure to be taken under the amended
27 report shall be governed by all provisions of this chapter
28 applicable to the final report of a commission submitted
29 pursuant to section 511.
30 Section 513. Recommendations.
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1 The tax study commission shall be limited in its
2 consideration to the types of taxes to be allowed within its
3 taxing district consistent with the Constitution of Pennsylvania
4 and permitted by enactments of the General Assembly and to the
5 maximum and minimum limits of each type of tax. Rates of
6 taxation shall be set by the governing body of the taxing
7 district within the confines of the approved optional tax plan
8 so as to provide fiscal flexibility and the opportunity for
9 equitable taxation each fiscal year. The tax study commission
10 shall report and recommend, in accordance with the question
11 presented to the electorate as provided in section 501:
12 (1) that a referendum shall be held to submit to the
13 qualified voters of the taxing district the question of
14 adopting an optional tax plan as prepared by the commission
15 and as authorized by this act;
16 (2) that the form of taxation of the taxing district
17 shall remain unchanged; or
18 (3) such other action as it may deem advisable
19 consistent with its functions as set forth in this act.
20 Section 514. Format of question.
21 The question to be submitted to the voters for the adoption
22 of an optional tax plan authorized by this act shall be
23 submitted in the following form or such part thereof as shall be
24 applicable:
25 Shall the Optional Tax Plan in the
26 report, dated...............................
27 of the Tax Study Commission, prepared in
28 accordance with this act, be adopted by the
29 ............................................?
30 (insert type and name of taxing district)
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1 or
2 Shall the (Optional Tax Plan) of the
3 ............................................
4 (insert type and name of taxing district)
5 be repealed, and the form of taxation
6 recommended in the report of the Tax
7 Study Commission, dated.....................,
8 be adopted as authorized by this act?
9 or
10 Shall an Optional Tax Plan for the
11 ............................................
12 (insert type and name of taxing district)
13 be amended as specified in the report of
14 the Tax Study Commission filed with the
15 election officials of the County of
16 ......................., on ................
17 (insert name of county) (insert date)
18 as authorized by this act?
19 Section 515. Transmission of report.
20 If the tax study commission recommends that the question of
21 adopting an optional tax plan authorized by this act be
22 submitted to the voters of the taxing district, it shall be the
23 duty of the municipal clerk or secretary of the taxing district,
24 within five days after the recommendation, to certify a copy of
25 the commission's report to the county board of elections, which
26 shall cause the question of adoption or rejection to be placed
27 upon the ballot or voting machines at the time the commission
28 shall, in its report, specify.
29 Section 516. Limitations.
30 (a) General rule.--An ordinance or resolution may not be
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1 passed and a petition may not be filed for the election of a tax
2 study commission under section 501 while proceedings are pending
3 under any other petition or ordinance or resolution filed or
4 passed under the authority of this act, nor on the same question
5 if it has been defeated within two years after an election has
6 been held pursuant to an ordinance or resolution or petition
7 passed or filed.
8 (b) Limited definition.--For the purpose of this section,
9 proceedings shall be considered as having started:
10 (1) in the case of an ordinance or resolution, upon the
11 final vote of the governing body in favor of the ordinance or
12 resolution, notwithstanding the fact that the ordinance or
13 resolution cannot take effect until a certain number of days
14 after the passage; or
15 (2) in the case of a petition, as soon as it is properly
16 signed by one-third of the number of registered voters
17 required for the petition and written notice of the signing
18 filed in the office of the county board of elections and in
19 the office of the municipal clerk or secretary of the taxing
20 district, who shall cause the petition to be immediately
21 posted and open to public inspection in a conspicuous place
22 in the office.
23 CHAPTER 7
24 REFERENDUM AND AMENDMENT
25 Section 701. Referendum question.
26 The commission may cause the question to be submitted to the
27 electors at the next primary, municipal or general election
28 occurring not less than 60 days following the filing of a copy
29 of the commission's report with the county board of elections,
30 at the time the commission's report shall direct. At the
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1 election, the question of adopting that form of taxation
2 recommended by the commission shall be submitted to the voters
3 of the taxing district by the county board of elections in the
4 same manner as other questions are submitted to the voters of a
5 taxing district under the provisions of the act of June 3, 1937
6 (P.L.1333, No.320), known as the Pennsylvania Election Code. The
7 commission shall frame the question to be placed upon the ballot
8 in clear laymen's language and in a nonlegal descriptive form
9 and, if it deems appropriate, an interpretative statement shall
10 accompany the question.
11 Section 702. Adoption of plan.
12 Whenever the legally qualified voters of any taxing district,
13 by a majority of those voting on the question, vote in favor of
14 adopting a change in their form of taxation pursuant to this
15 act, the proposed form shall take effect according to its terms
16 and the provisions of this act.
17 Section 703. Duration of plan.
18 The voters of any taxing district which has adopted an
19 optional tax plan pursuant to this act may not vote on the
20 question of repealing the optional tax plan until five years
21 have expired.
22 Section 704. Amendments.
23 The procedure for amending an optional tax plan shall be
24 through the initiative procedure or ordinance or resolution of
25 the governing body of the taxing district and subject to
26 approval in a referendum as provided in this act. Amendments to
27 the optional tax plan shall be limited to the types of tax
28 levies and the maximum and minimum limits of the permitted tax
29 levies. Rates of taxation for the type of allowable taxes shall
30 be set by the governing body of the taxing district within the
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1 limits established by the approved optional tax plan.
2 Section 705. Initiation of amendment.
3 A referendum on the question of amendment of an optional tax
4 plan may be initiated by electors of the taxing district or by
5 an ordinance or resolution of the governing body of the taxing
6 district.
7 Section 706. Amendment procedure.
8 (a) Filing.--A petition containing a proposal for referendum
9 on the question of amending an optional tax plan, signed by
10 electors comprising 10% of the number of electors voting for the
11 office of Governor in the last gubernatorial general election in
12 the taxing district, or an ordinance or resolution of the
13 governing body of the taxing district proposing amendment of an
14 optional tax plan, shall be filed with the election officials
15 not later than the 13th Tuesday prior to the next primary,
16 municipal or general election. The petition and the proceedings
17 on the petition shall be in the manner and subject to the
18 provisions of the election laws which relate to the signing,
19 filing and adjudication of nomination petitions insofar as the
20 provisions are applicable, except that no referendum petition
21 shall be signed or circulated prior to the 20th Tuesday before
22 the election nor later than the 13th Tuesday before the
23 election. The name and address of the person filing the petition
24 shall be clearly stated on the petition.
25 (b) Review.--The election officials shall review the
26 initiative petition as to the number and qualifications of
27 signers. If the petition appears to be defective, the election
28 officials shall immediately notify the persons filing the
29 petition of the defect. When the election officials find that
30 the petition as submitted is in proper order, they shall send
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1 copies of the initiative petition without signatures to the
2 governing body of the taxing district and to the Secretary of
3 Community Affairs. The initiative petition as submitted to the
4 election officials, along with a list of signatories, shall be
5 open to inspection in the office of the election officials.
6 Section 707. Referendum on amendment.
7 (a) Date.--A referendum on the question of the amendment of
8 an optional tax plan shall be held when the election officials
9 find that the initiative petition or ordinance or resolution of
10 the governing body of the taxing district is in proper order,
11 and the referendum shall be governed by the provisions of the
12 act of June 3, 1937 (P.L.1333, No.320), known as the
13 Pennsylvania Election Code.
14 (b) Submission.--The election officials shall cause the
15 question to be submitted to the electors of the taxing district
16 at the next primary, general or municipal election occurring not
17 less than the 13th Tuesday following the filing of the
18 initiative petition or ordinance or resolution with the county
19 board of elections. At the election, the question shall be
20 submitted to the voters in the same manner as other questions
21 are submitted under the provisions of the Pennsylvania Election
22 Code. The county board of elections shall frame the question to
23 be placed upon the ballot.
24 Section 708. Conduct of elections.
25 All elections provided for in this act shall be conducted by
26 the election officials for the taxing district in accordance
27 with the act of June 3, 1937 (P.L.1333, No.320), known as the
28 Pennsylvania Election Code. The election officials shall count
29 the votes cast and make returns to the county board of
30 elections. The result of any election shall be computed by the
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1 county board of elections in the same manner as provided by law
2 for the computation of similar returns. Certificates of the
3 results of the election shall be filed by the county board of
4 elections with the governing body of the taxing district, with
5 the Secretary of the Commonwealth and with the Secretary of
6 Community Affairs.
7 Section 709. Notices of elections.
8 At least 30 days' notice of each election provided for in
9 this chapter shall be given by the municipal clerk or secretary
10 of the taxing district. A copy of this notice shall be posted at
11 each polling place of the taxing district on the day of the
12 election and shall be published in at least one newspaper of
13 general circulation in the taxing district once a week for three
14 consecutive weeks during the period of 30 days prior to the
15 election.
16 Section 710. Repeal of plan.
17 The procedure for repeal of an optional tax plan shall be the
18 same as for adoption of an optional tax plan. Whenever the
19 electors of any taxing district, by a majority vote of those
20 voting on the question, vote in favor of repeal of an optional
21 tax plan and the establishment of a particular form of taxation,
22 the taxing district shall be governed under the form of taxation
23 selected by the electors, from the first day of the fiscal year
24 of the taxing district following the election which occurred at
25 least 90 days before the beginning of the fiscal year at which
26 election the form of taxation was selected. The tax study
27 commission shall provide in its report for the new form of
28 taxation to be established.
29 CHAPTER 9
30 OPERATION UNDER PLAN
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1 Section 901. Recording of approved plan.
2 The municipal clerk or secretary of the taxing district shall
3 forthwith cause the optional tax plan, as approved by the
4 qualified electors, to be recorded in the ordinance or
5 resolution books of the taxing district. The municipal clerk or
6 secretary shall also file a certified copy with the Secretary of
7 the Commonwealth, with the Secretary of Community Affairs and
8 with the county board of elections.
9 Section 902. Effective date of plan.
10 Whenever the electors of a taxing district adopt the optional
11 tax plan provided by this act at any election for that purpose,
12 the taxing district shall be governed under the provisions of
13 the plan, the provisions of general law applicable to that class
14 of taxing district and this act from the first day of the fiscal
15 year of the taxing district following approval at an election
16 which occurred at least 90 days prior to the beginning of the
17 fiscal year of such taxing district.
18 Section 903. Establishment of tax levies.
19 Except as prohibited by this act and subject to the overall
20 limitations imposed by the approved optional tax plan and
21 consistent with the types of local taxes permitted by enactments
22 of the General Assembly, the governing body of a taxing district
23 may set any tax levy on any permissible subject of taxation. No
24 governing body shall have the power to impose any tax levy in
25 excess of the limits of the approved optional tax plan until
26 either an amended optional tax plan or a new optional tax plan
27 is adopted. No governing body shall be required to impose any
28 tax levy at the maximum limit allowed by the approved optional
29 tax plan. The governing body of a taxing district can reduce or
30 increase any imposition allowed by the approved optional tax
19950H0946B1055 - 25 -
1 plan without seeking amendment to the plan insofar as maximum
2 and minimum limits contained in the approved optional tax plan
3 are not exceeded.
4 Section 904. Revenue increase limitation.
5 Whenever a taxing district begins implementing an approved
6 optional tax plan, the total tax revenues in the year of
7 implementation shall not exceed by 2% the amount of the total
8 tax revenues received in the immediately preceding year. The
9 General Assembly declares that tax reform should not be a
10 process limited to the increase of impositions; but, rather, tax
11 reform at the school district and local government level should
12 be a process that results in a more equitable system of
13 taxation.
14 Section 905. Revenue sharing.
15 No taxing district which adopts an optional tax plan shall be
16 required to share any tax revenues with any other taxing
17 district. If any two political subdivisions impose a tax on the
18 same person, subject, business, transaction or privilege during
19 the same year, and one political subdivision has adopted an
20 optional tax plan, the other political subdivision shall have
21 its tax rates limited to one-half of the maximum rate allowable
22 in any act that permits the levy of taxes and also requires a
23 sharing of such taxes.
24 CHAPTER 11
25 MISCELLANEOUS PROVISIONS
26 Section 1101. Effect of nonadoption of plan.
27 Each taxing district which does not adopt an optional tax
28 plan under the provisions of this act shall retain its existing
29 schedule and limits of taxation as provided in the code under
30 which it operates, or under general law, or under the
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1 Constitution of Pennsylvania.
2 Section 1102. Affect on home rule municipality.
3 Nothing in this act shall affect the taxing powers of any
4 municipality which has adopted a home rule charter under the act
5 of April 13, 1972 (P.L.184, No.62), known as the Home Rule
6 Charter and Optional Plans Law.
7 Section 1103. Severability.
8 The provisions of this act are severable. If any provision of
9 this act or its application to any person or circumstance is
10 held invalid, the invalidity shall not affect other provisions
11 or applications of this act which can be given effect without
12 the invalid provision or application.
13 Section 1104. Repeals.
14 All acts and parts of acts are repealed insofar as they are
15 inconsistent with this act.
16 Section 1105. Effective date.
17 This act shall take effect immediately.
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