PRINTER'S NO. 3166
No. 2400 Session of 1998
INTRODUCED BY DRUCE, CORRIGAN, EACHUS, ORIE, SHANER, ALLEN,
JAROLIN, McNAUGHTON, WAUGH, GODSHALL, HERSHEY, MAITLAND,
GEIST, TIGUE, ARMSTRONG, SAYLOR, PLATTS, SCHULER, ZUG,
BROWNE, MUNDY, DeLUCA, BOSCOLA, HASAY, VANCE, BAKER, DALEY,
CIVERA, RUBLEY, SANTONI, BARRAR, CAWLEY, McCALL, FEESE,
HERMAN, DEMPSEY, CLYMER, HENNESSEY, SCHRODER, ARGALL, STERN,
RAYMOND, BUNT, STEVENSON, WILT, GEORGE, HESS, VAN HORNE,
S. H. SMITH, NAILOR, FAIRCHILD, TRAVAGLIO, BENNINGHOFF,
BARLEY, ITKIN, READSHAW, MARKOSEK, JADLOWIEC, SATHER, OLASZ,
BARD, LEH, HABAY, PESCI, BOYES, SEYFERT, COLAFELLA,
McILHATTAN, DALLY, MICOZZIE, HUTCHINSON, GRUPPO, STABACK,
GANNON, TRELLO, LEVDANSKY, COY, MARSICO, LAUGHLIN,
E. Z. TAYLOR, MAHER, FLICK AND STEIL, MARCH 12, 1998
REFERRED TO COMMITTEE ON FINANCE, MARCH 12, 1998
AN ACT
1 Providing for the rights and privileges of taxpayers with
2 respect to certain taxes levied by political subdivisions.
3 TABLE OF CONTENTS
4 Chapter 1. General Provisions
5 Section 101. Short title.
6 Section 102. Definitions.
7 Chapter 3. Taxpayer Rights
8 Section 301. Disclosure statement on rights of taxpayers.
9 Section 302. Requirements for local taxing authority requests.
10 Section 303. Refunds of overpayments.
11 Section 304. Interest on overpayments.
12 Section 305. Advisory opinions.
1 Section 306. Notice of the basis of an underpayment.
2 Section 307. Abatement of certain interest and penalty.
3 Chapter 5. Local Tax Appeals Board
4 Section 501. General provisions.
5 Section 502. Duties.
6 Section 503. Membership.
7 Section 504. Compensation.
8 Section 505. Petitions.
9 Section 506. Practice and procedure.
10 Section 507. Decision and order.
11 Section 508. Time limits.
12 Section 509. Appeals from decisions of local tax appeals
13 board.
14 Chapter 7. Administration
15 Section 701. Installment agreements.
16 Section 702. Confidentiality of tax information.
17 Section 703. Transfer of earned income tax collection
18 responsibilities.
19 Chapter 9. Miscellaneous Provisions
20 Section 901. Applicability.
21 Section 902. Taxes on real property.
22 Section 903. Effective date.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 CHAPTER 1
26 GENERAL PROVISIONS
27 Section 101. Short title.
28 This act shall be known and may be cited as the Local
29 Taxpayers Bill of Rights.
30 Section 102. Definitions.
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1 The following words and phrases when used in this act shall
2 have the meanings given to them in this section unless the
3 context clearly indicates otherwise:
4 "Board." The board of local tax appeals established under
5 Chapter 5.
6 "Governing body." A city council, borough council,
7 incorporated town council, board of township commissioners,
8 board of township supervisors, a governing council of a home
9 rule municipality or optional plan municipality, a governing
10 council of any similar general purpose unit of government which
11 may hereafter be created by statute or a board of school
12 directors of a school district.
13 "Local Tax Enabling Act." The act of December 31, 1965
14 (P.L.1257, No.511), known as The Local Tax Enabling Act.
15 "Local taxing authority." A political subdivision levying a
16 tax authorized under the act of December 31, 1965 (P.L.1257,
17 No.511), known as The Local Tax Enabling Act. The term shall
18 include any of the following to whom the governing body has
19 assigned responsibility for the collection or administration of
20 taxes imposed under The Local Tax Enabling Act:
21 (1) An income tax officer as defined in section 13 of
22 The Local Tax Enabling Act.
23 (2) Any officer, agent, agency, clerk, collector,
24 employee or other person designated under section 10 of The
25 Local Tax Enabling Act.
26 "Overpayment." Any payment of tax which is determined in the
27 manner provided by law not to be legally due.
28 "Taxpayer." An individual, partnership, association,
29 company, corporation, estate, trust, trustee, fiduciary or any
30 other entity subject to or claiming exemption from any tax
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1 levied, assessed or collected under the act of December 31, 1965
2 (P.L.1257, No.511), known as The Local Tax Enabling Act, or
3 under a duty to perform an act for itself or for another under
4 or pursuant to the authority of such act.
5 "Underpayment." The amount or portion of any tax determined
6 to be legally due in the manner provided by law for which
7 payment or remittance has not been made.
8 CHAPTER 3
9 TAXPAYER RIGHTS
10 Section 301. Disclosure statement on rights of taxpayers.
11 (a) Contents.--The local taxing authority shall prepare a
12 statement which sets forth the following in simple and
13 nontechnical terms:
14 (1) The rights of a taxpayer and the obligation of the
15 local taxing authority during an audit or an administrative
16 review of the taxpayer's books or records.
17 (2) The procedures by which a taxpayer may appeal or
18 seek review of any adverse decision of the local taxing
19 authority, including administrative and judicial appeals.
20 (3) The procedure for filing and processing refund
21 claims and taxpayer complaints.
22 (4) The procedures which the local taxing authority may
23 use in enforcing taxes.
24 (b) Distribution.--The statements prepared in accordance
25 with this section shall be distributed by the local taxing
26 authority to all taxpayers the local taxing authority contacts,
27 other than by providing tax return forms, with respect to the
28 audit, determination or collection of any tax authorized under
29 the Local Tax Enabling Act.
30 Section 302. Requirements for local taxing authority requests.
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1 (a) Minimum time periods for taxpayer response.--
2 (1) The taxpayer shall have at least 20 calendar days
3 from the mailing date to respond to requests for information
4 by a local taxing authority. The taxpayer shall be entitled
5 to an automatic 10-day extension if the taxpayer contacts the
6 local taxing authority initiating the information request
7 within the initial 20-day period to request the extension.
8 The local taxing authority shall grant additional reasonable
9 extensions upon application of the taxpayer when good cause
10 is shown.
11 (2) The local taxing authority shall notify the taxpayer
12 of the procedures to obtain an extension in its initial
13 request.
14 (3) A local taxing authority shall take no action
15 against a taxpayer otherwise provided by law for the tax year
16 in question until the expiration of the applicable response
17 period, including extensions.
18 (b) Requests for prior year returns.--
19 (1) Except as provided in (2), an inquiry by a local
20 taxing authority regarding a taxpayer's compliance with any
21 tax authorized under the Local Tax Enabling Act may include
22 taxes required to be paid or tax returns required to be filed
23 no more than three years prior to the mailing date of the
24 notice.
25 (2) A local taxing authority may make a subsequent
26 request for a tax return or supporting information if, after
27 the initial request, the local taxing authority determines
28 that the taxpayer has not filed a tax return, has
29 underreported income or has not paid a tax for one or more of
30 the tax periods covered by the initial request.
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1 This subsection shall not apply when the local taxing authority
2 has sufficient information to indicate that the taxpayer has not
3 filed a required return or has not paid a tax which was due more
4 than three years prior to the date of the notice.
5 (c) Use of Federal tax information.--A local taxing
6 authority may require a taxpayer to provide copies of the
7 taxpayer's Federal individual income tax return if the local
8 taxing authority can demonstrate that the Federal tax
9 information is reasonably necessary for the enforcement or
10 collection of a tax imposed under the Local Tax Enabling Act and
11 the information is not available from other sources available to
12 the local taxing authority, including State income tax return
13 information available from the Department of Revenue.
14 Section 303. Refunds of overpayments.
15 (a) General rule.--A taxpayer who has actually paid tax,
16 interest or penalty to a local taxing authority may file a
17 written request with the local taxing authority for refund or
18 credit of the tax, interest or penalty. A request for refund
19 shall be made to the local taxing authority within six years of
20 the actual payment of the tax, interest or penalty.
21 (1) For the purposes of this section, a tax return filed
22 by the taxpayer with the local taxing authority showing an
23 overpayment of tax shall be deemed to be a written request
24 for a cash refund unless otherwise indicated by the taxpayer
25 on the tax return.
26 (2) A request submitted to a local taxing authority
27 under this section shall not be considered a petition under
28 section 505 and shall not preclude a taxpayer from submitting
29 a petition under Chapter 5.
30 (b) Notice of underpayment.--In the case of amounts paid as
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1 a result of a notice asserting or informing a taxpayer of an
2 underpayment, a written request for refund shall be filed with
3 the local taxing authority within one year of the date of the
4 notice.
5 (c) Payment of refund.--A local taxing authority shall
6 respond to the request for refund within 60 days of its receipt.
7 Section 304. Interest on overpayments.
8 (a) General rule.--Subject to the provisions of this
9 section, a local taxing authority shall pay simple interest upon
10 any overpayment to the local taxing authority. An overpayment of
11 interest or penalty shall not bear any interest.
12 (b) Rate.--The rate of interest calculated under this
13 section shall be the rate specified for nonpayment or
14 underpayment in section 22 of the Local Tax Enabling Act.
15 (c) Computation of period for which interest shall be
16 paid.--Subject to paragraphs (1) through (4), interest shall be
17 allowed and paid for the period during which the local taxing
18 authority retained the overpayment, beginning with the date of
19 the overpayment:
20 (1) In the case of a cash refund, from the date of the
21 overpayment to a date preceding the date of the refund check
22 by not more than 30 days.
23 (2) In the case of a credit for an overpayment, from the
24 date of the overpayment to:
25 (i) the date of the notice to the taxpayer of the
26 final determination of the credit; or
27 (ii) the date as of which the credit is applied,
28 whichever first occurs, provided, however, that in the
29 case of a cash refund of a previously determined credit,
30 interest shall be allowed and paid on the amount of the
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1 credit from a date 90 days after the filing of a petition
2 for a cash refund to a date preceding the date of the
3 refund check by not more than 30 days whether or not the
4 refund check is accepted by the taxpayer after tender to
5 the taxpayer.
6 (3) The taxpayer's acceptance of the check shall be
7 without prejudice to any right of the taxpayer to claim any
8 additional overpayment and interest thereon. Tender of a
9 refund check shall be deemed acceptance thereof for the
10 purposes of this section.
11 (4) If any overpayment of tax is refunded or credited
12 within 75 days after the last date prescribed for filing the
13 final return or report of the tax to be determined without
14 regard to any extension of time for filing or, in case the
15 final return or report is filed after the last day and is
16 refunded or credited within 75 days after the date the final
17 return or report is filed, no interest shall be allowed on
18 the overpayment. For the purpose of this paragraph, a final
19 return or report shall be deemed to have been filed only if,
20 when it is received by the local taxing authority, it has
21 been submitted on a permitted form containing:
22 (i) the taxpayer's name, address and identifying
23 number and the required signature; and
24 (ii) sufficient required information, either on the
25 permitted form or attachments thereto, to permit the
26 verification of tax liability shown on the return.
27 (d) Date of overpayment.--The date of overpayment shall be
28 determined as follows:
29 (1) Any tax actually deducted and withheld at the source
30 shall be deemed to have been overpaid on the last day
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1 prescribed for filing the return or report for the taxable
2 year to be determined without regard to any extension of time
3 for filing.
4 (2) Any amount overpaid as estimated tax or installment
5 payment for a taxable year shall be deemed to have been
6 overpaid on the last day prescribed for filing the final
7 return or report for the taxable year to be determined
8 without regard to any extension of time for filing.
9 (3) Any overpayment made before the last day prescribed
10 for payment shall be considered made on the last day.
11 (4) Any amount claimed to be overpaid with respect to
12 which an administrative review or appellate procedure is
13 initiated in the manner provided by law by the taxpayer shall
14 be deemed to have been overpaid 60 days following the date of
15 initiation of the review or procedure.
16 (5) Any tax paid to an officer, licensee or collector
17 shall be deemed to have been overpaid no earlier than the
18 first date that the tax is required by law to be reported and
19 transmitted to the local taxing authority by the officer,
20 licensee or collector.
21 Section 305. Advisory opinions.
22 With respect to taxes administered by the local taxing
23 authority, the local taxing authority shall be required to
24 render advisory opinions within 90 days of the receipt of a
25 petition for such an opinion. This period may be extended by the
26 local taxing authority, for good cause shown, for no more than
27 30 additional days. An advisory opinion shall be rendered to any
28 person subject to a tax or liability under this chapter or
29 claiming exemption from a tax or liability. Advisory opinions
30 shall not be binding upon the local taxing authority except with
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1 respect to the person to whom such opinion is rendered. A
2 subsequent modification by the local taxing authority of an
3 advisory opinion shall apply prospectively only. A petition for
4 an advisory opinion shall contain a specific set of facts, be
5 submitted in the form prescribed by the local taxing authority
6 and be subject to the rules and regulations as the local taxing
7 authority may promulgate for procedures for submitting such a
8 petition. A local taxing authority may make advisory opinions
9 available to the public if all information identifying the
10 taxpayer and any other confidential information is deleted
11 before the information is made public.
12 Section 306. Notice of the basis of an underpayment.
13 A local taxing authority shall notify the taxpayer in writing
14 of the basis for any underpayment that the local taxing
15 authority has determined to exist. The notification shall
16 include:
17 (1) The tax period or periods for which the underpayment
18 is asserted.
19 (2) The amount of the underpayment detailed by tax
20 period.
21 (3) The basis, in law or regulation, upon which the
22 local taxing authority has relied in determining that an
23 underpayment exists.
24 (4) An itemization of the revisions made by the local
25 taxing authority to a return or report filed by the taxpayer
26 that results in the determination by the local taxing
27 authority that an underpayment exists.
28 Section 307. Abatement of certain interest and penalty.
29 (a) Interest attributable to errors and delays by local
30 taxing authority.--In the case of any underpayment, the local
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1 taxing authority may abate all or any part of interest for any
2 period for the following:
3 (1) Any underpayment or any tax finally determined to be
4 due attributable in whole or in part to any error or delay by
5 an officer, employee or agent of the local taxing authority
6 acting in his or her official capacity in performing a
7 ministerial act.
8 (2) Any payment of any tax to the extent that any error
9 or delay in such payment is attributable to such officer,
10 employee or agent being erroneous or dilatory in performing a
11 ministerial act.
12 (b) Error or delay.--For purposes of subsection (a)(1), an
13 error or delay shall be taken into account only if no
14 significant aspect of the error or delay can be attributed to
15 the taxpayer involved and after the local taxing authority has
16 contacted the taxpayer in writing with respect to the
17 underpayment or tax finally determined to be due or payable. The
18 local taxing authority shall determine what constitutes timely
19 performance of various ministerial acts performed under or
20 pursuant to this act.
21 (c) Abatement of any penalty or addition to tax or excess
22 interest attributable to erroneous written advice by the local
23 taxing authority.--
24 (1) The local taxing authority shall abate any portion
25 of any penalty or excess interest attributable to erroneous
26 advice furnished to the taxpayer in writing by an officer,
27 employee or agent of the local taxing authority acting in the
28 officer's, employee's or agent's official capacity, if:
29 (i) the written advice was reasonably relied upon by
30 the taxpayer and was in response to specific written
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1 request of the taxpayer; and
2 (ii) the portion of the penalty or addition to tax
3 or excess interest did not result from a failure by the
4 taxpayer to provide adequate or accurate information.
5 (2) This subsection shall not be construed to require
6 the local taxing authority to provide written advice to
7 taxpayers.
8 CHAPTER 5
9 LOCAL TAX APPEALS BOARD
10 Section 501. General provisions.
11 (a) Establishment.--A political subdivision levying a tax
12 under the Local Tax Enabling Act shall establish a board of
13 local tax appeals as provided in this chapter.
14 (b) Joint agreements.--Political subdivisions participating
15 in a joint agreement for the collection of tax under section 10
16 of the Local Tax Enabling Act shall jointly establish a board of
17 local tax appeals.
18 (c) Jurisdiction.--The board shall be empowered to exercise
19 the powers and duties of the political subdivision with respect
20 to the review of any underpayment, overpayment, refund or credit
21 arising with respect to taxes imposed under the Local Tax
22 Enabling Act.
23 Section 502. Duties.
24 The board shall receive petitions from taxpayers relating to
25 the assessment, determination or refund of any tax levied under
26 the Local Tax Enabling Act. The board shall have no authority to
27 receive petitions relating to taxes on real property.
28 Section 503. Membership.
29 The board shall consist of at least three, but not more than
30 seven, members. The board shall be appointed by the governing
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1 body of the political subdivision. In the case of joint
2 agreements for the collection of tax pursuant to section 10 of
3 the Local Tax Enabling Act, the board of local tax appeals shall
4 be appointed by the governing bodies of the political
5 subdivisions participating in the joint agreement.
6 Section 504. Compensation.
7 The board of local tax appeals shall serve without salary.
8 Section 505. Petitions.
9 (a) General.--All petitions filed with the board shall
10 comply with the requirements of this section.
11 (b) Filing.--
12 (1) Petitions shall be filed with the board within the
13 time period specified in this paragraph.
14 (i) In the case of a petition for refund, within six
15 years of the actual payment of the tax, interest or
16 penalty, except that a petition for refund of an amount
17 paid as a result of a notice asserting or informing the
18 taxpayer of an underpayment, within one year of the date
19 of the notice.
20 (ii) In the case of a notice of asserting or
21 informing the taxpayer of an underpayment where the
22 taxpayer has not paid the underpayment, within 90 days of
23 the date of the notice.
24 (2) A petition is timely filed if the letter
25 transmitting the petition is received by the board or is
26 postmarked by the United States Postal Service on or before
27 the final day on which the petition is required to be filed.
28 The burden is on the taxpayer to present evidence sufficient
29 to prove the petition was timely filed.
30 (c) Contents.--Petitions shall be in writing and signed by
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1 the petitioner or an authorized representative. If the
2 petitioner is an entity other than a natural person, an officer
3 or authorized representative shall sign the petition. The
4 petition shall contain:
5 (1) Petitioner's name, address and telephone number.
6 (2) Name, address and telephone number of authorized
7 representative, if any.
8 (3) Designation of the tax, including the year or other
9 period and the amount involved. A copy of any document
10 relating thereto shall be attached.
11 (4) Petitioner's account number, claim number, file
12 number or other appropriate identifying account designation.
13 (5) A detailed statement in separate numbered paragraphs
14 of the facts and grounds relied upon. If based upon a written
15 document, a copy of the document, or material part thereof,
16 shall be attached.
17 (6) A statement specifying the relief requested by the
18 taxpayer.
19 (7) A statement indicating whether the petitioner would
20 consent to a hearing if requested by the board.
21 (8) A signed statement certifying that the facts
22 contained in the petition are true and correct to the
23 petitioner's knowledge and belief, and that the petition is
24 not made for purposes of delay.
25 (9) Upon written request the board may require a
26 petitioner to furnish additional information that may be
27 necessary to define the issues or to determine the case. The
28 board may deny the petition for failure to furnish the
29 additional information within a stated reasonable amount of
30 time after the request.
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1 (d) Perfection of petition.--A claim for relief which fails
2 to satisfy the requirements of subsection (c) shall be
3 registered upon receipt. Thereafter, the board may request the
4 taxpayer to submit additional information needed for the claim
5 to conform to subsection (c). Failure to submit the requested
6 additional information by the date requested by the board or
7 within 30 days of the date of the board's request, whichever is
8 longer, shall result in the denial of the claim.
9 Section 506. Practice and procedure.
10 (a) General.--Practice and procedure before the board is not
11 governed by 2 Pa.C.S. Chs. 5 Subch. B (relating to practice and
12 procedure of local agencies) and 7 Subch. B (relating to
13 judicial review of local agency action).
14 (b) Hearings.--A petitioner may request a hearing in
15 writing.
16 (1) The petitioner may decline a hearing and rest the
17 case upon the petition and record, with or without a written
18 brief.
19 (2) The petitioner shall have the burden of proof on all
20 issues except fraud.
21 (3) When the petitioner requests a hearing, reasonable
22 notice will be given to the petitioner in writing specifying
23 the date, time and place.
24 (4) The board may grant a reasonable request for
25 continuance of a scheduled hearing. The request shall be made
26 or confirmed in writing, shall state the reasons for the
27 continuance and shall be received within at least five days
28 prior to the scheduled hearing. The board may grant a request
29 not in conformity with this paragraph in extraordinary
30 circumstances.
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1 (5) Information gained from hearings shall be considered
2 confidential tax information under section 702.
3 (6) Hearings will be conducted by a member of the board
4 or by a hearing officer designated by the board.
5 (7) No written transcripts of hearings will be prepared
6 by the board; however, a recording of the hearing may be made
7 at the discretion of either the board or the petitioner.
8 (c) Representation at hearings.--
9 (1) An individual may appear on his own behalf or be
10 represented by a person possessing the requisite technical
11 education, training or experience. There is no requirement
12 that a petitioner be represented before the board by an
13 attorney or certified public accountant. A petitioner's
14 representative shall be authorized in writing to represent
15 the petitioner. A letter signed by the petitioner or a
16 listing as a representative on the face of the petition
17 signed by the petitioner will be accepted as authorization
18 for representation. An authorization continues until the
19 board is notified in writing by the petitioner that the
20 authorization is rescinded.
21 (2) Only an attorney-at-law representing a petitioner,
22 or the petitioner acting without representation before the
23 board, may appear at a hearing before the board.
24 (3) A notice or other written communication to the
25 petitioner shall be given to the petitioner's authorized
26 representative and shall have the same force and effect as if
27 given to the petitioner directly. Action before the board
28 taken by petitioner's authorized representative shall have
29 the same force and effect as if taken by the petitioner.
30 (d) Authority of presiding officers.--Presiding officers
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1 have authority to:
2 (1) Regulate the conduct of hearings, including the
3 scheduling thereof and the recessing, reconvening and
4 adjournment thereof, and to do acts and take measures
5 necessary or proper for the efficient conduct of hearings.
6 (2) Administer oaths and affirmations.
7 (3) Receive evidence.
8 (4) Take or cause depositions to be taken.
9 (5) Hold appropriate conferences before or during
10 hearings.
11 (6) Take other action necessary or appropriate to the
12 discharge of the duties vested in them, consistent with
13 statutory authority and regulations.
14 (e) Evidence.--Hearings before the board need not adhere to
15 the technical rules of evidence or procedure. In cases involving
16 issues of fact, oral testimony shall be under oath or
17 affirmation. At the discretion of the board's presiding officer,
18 depositions or affidavits may be received in lieu of oral
19 testimony if the actual presence of a witness is not feasible.
20 (f) Subpoenas.--The board, on its own motion or at the
21 request of a petitioner, may compel the production of books,
22 records, documents and other data pertinent to the issues and
23 may require persons having information to appear and submit to
24 oral examination under oath or affirmation. Costs associated
25 with the issuance of a subpoena requested by the petitioner
26 shall be paid by the petitioner as a condition precedent to the
27 issuance of the subpoena.
28 Section 507. Decision and order.
29 The board's final decision on a petition shall be based upon
30 the facts and law determined by the board. The board's final
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1 order shall comply with all of the following:
2 (1) The board's final decision and order will include
3 findings of facts and discussion of law that the board may
4 deem necessary.
5 (2) The board shall issue a decision and order in
6 writing and the order shall be signed by one or more members
7 of the board.
8 (3) One copy of the decision and order shall be mailed
9 to the petitioner or to the petitioner's authorized
10 representative at the mailing address shown on the petition.
11 Section 508. Time limits.
12 The board of local tax appeals shall issue a decision and
13 order in writing within 60 days of the date a perfected petition
14 is received by the board. Failure by the board to act within the
15 prescribed time period shall result in the appeal being deemed
16 to be denied, and the taxpayer may exercise such other rights to
17 appeal or contest the tax as otherwise provided by law.
18 Section 509. Appeals from decisions of local tax appeals board.
19 Any person aggrieved by a decision of a local tax appeals
20 board who has a direct interest in the decision shall have the
21 right to appeal therefrom to the court vested with the
22 jurisdiction of local tax appeals by or pursuant to Title 42
23 (relating to judiciary and judicial procedure).
24 CHAPTER 7
25 ADMINISTRATION
26 Section 701. Installment agreements.
27 (a) Authorization.--A local taxing authority may enter into
28 written agreements with any taxpayer under which the taxpayer is
29 allowed to satisfy liability for payment of any tax and any
30 interest, penalty or addition to tax in installment payments if
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1 the local taxing authority determines that the agreement will
2 facilitate collection of the liability.
3 (b) Extent to which agreements remain in effect.--
4 (1) Except as otherwise provided in this subsection, any
5 agreement entered into by the local taxing authority under
6 subsection (a) shall remain in effect for the term of the
7 agreement.
8 (2) The local taxing authority may terminate any prior
9 agreement entered into under subsection (a) if:
10 (i) information which the taxpayer provided to the
11 local taxing authority prior to the date of the agreement
12 was inaccurate or incomplete; or
13 (ii) the local taxing authority believes that
14 collection of any liability to which an agreement under
15 this section relates is in jeopardy.
16 (3) If the local taxing authority finds that the
17 financial condition of the taxpayer has significantly
18 changed, the local taxing authority may alter, modify or
19 terminate the agreement, but only if:
20 (i) notice of the local taxing authority's finding
21 is provided to the taxpayer no later than 30 days prior
22 to the date of such action; and
23 (ii) the notice contains the reasons why the local
24 taxing authority believes a significant change has
25 occurred.
26 (4) The local taxing authority may alter, modify or
27 terminate an agreement entered into by the local taxing
28 authority under subsection (a) if the taxpayer fails to do
29 any of the following:
30 (i) Pay any installment at the time the installment
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1 is due under such agreement.
2 (ii) Pay any other tax liability at the time the
3 liability is due.
4 (iii) Provide a financial condition update as
5 requested by the local taxing authority.
6 (c) Prepayment permitted.--Nothing in this section should be
7 construed to prevent a taxpayer from prepaying in whole or in
8 part any outstanding liability under any agreement the taxpayer
9 enters into with the local taxing authority.
10 Section 702. Confidentiality of tax information.
11 Any information gained by a local taxing authority, as a
12 result of any audits, returns, reports, investigations, hearings
13 or verifications shall be confidential tax information. It shall
14 be unlawful, except for official purposes or as provided by law,
15 for any local taxing authority to:
16 (1) Divulge or to make known in any manner whatsoever to
17 any person, any confidential information gained in any
18 return, investigation, hearing or verification.
19 (2) Permit confidential tax information or a copy
20 thereof or any book containing any abstract or particulars
21 thereof, to be seen or examined by any person.
22 (3) Print, publish or make known in any manner
23 whatsoever any confidential tax information or any part
24 thereof or source of income, profits, losses or expenditures
25 gained by the local taxing authority.
26 An offense under this section is a misdemeanor and upon
27 conviction thereof a fine of not more than $3,000, or a term of
28 imprisonment for not more than one year, or both, together with
29 the costs of prosecution, may be imposed. If the offender is an
30 officer or employee of the local taxing authority, the officer
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1 or employee shall be dismissed from office or discharged from
2 employment.
3 Section 703. Transfer of earned income tax collection
4 responsibilities.
5 (a) Intentional failure to transmit documents.--An income
6 tax officer, as defined in section 13 of the Local Tax Enabling
7 Act, whose contract or other arrangement with the political
8 subdivision has been terminated or has expired shall turn over
9 all records, documents, materials or other information for any
10 period whatsoever pertaining to the earned income tax for that
11 political subdivision to the governing body within 30 days after
12 the contract or other arrangement under which the income tax
13 officer administered the earned income tax is terminated or
14 expires.
15 (b) Criminal penalty.--A violation of subsection (a) is a
16 misdemeanor. Upon conviction, an offender shall be sentenced to
17 pay a fine of not more than $25,000 and undergo a term of
18 imprisonment of not more than one year, or both, at the
19 discretion of the court.
20 CHAPTER 9
21 MISCELLANEOUS PROVISIONS
22 Section 901. Applicability.
23 This act shall apply to any tax levied by a political
24 subdivision under the act of December 31, 1965 (P.L.1257,
25 No.511), known as The Local Tax Enabling Act.
26 Section 902. Taxes on real property.
27 This act shall not apply to any tax on real property.
28 Section 903. Effective date.
29 This act shall take effect as follows:
30 (1) Chapters 3 and 7 shall take effect in 120 days.
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1 (2) Chapter 5 shall take effect in 180 days.
2 (3) Chapter 1 and this chapter shall take effect
3 immediately.
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