PRIOR PRINTER'S NO. 2838 PRINTER'S NO. 3019
No. 2126 Session of 2001
INTRODUCED BY BENNINGHOFF, HERMAN, ARMSTRONG, M. BAKER,
BELFANTI, CAPPELLI, COLEMAN, CREIGHTON, DALEY, FEESE,
GRUCELA, HANNA, HARHART, HORSEY, McILHATTAN, METCALFE,
PICKETT, RUBLEY, B. SMITH, SOLOBAY, STEELMAN, TIGUE, TRICH,
WASHINGTON, WILT AND WOJNAROSKI, NOVEMBER 13, 2001
AS REPORTED FROM COMMITTEE ON LOCAL GOVERNMENT, HOUSE OF
REPRESENTATIVES, AS AMENDED, DECEMBER 5, 2001
AN ACT
1 Amending the act of June 22, 2001 (P.L.374, No.24), entitled "An
2 act providing for optional occupation tax replacement; and
3 making a repeal," further providing for the definitions of
4 "governing body" and "political subdivision" and <--
5 SUBDIVISION," for earned income tax limits AND FOR CERTAIN <--
6 PROHIBITION OF OCCUPATION TAX; and making an editorial
7 correction.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The title of the act of June 22, 2001 (P.L.374,
11 No.24), known as the Optional Occupation Tax Elimination Act, is
12 amended to read:
13 AN ACT
14 Providing for optional occupation tax replacement[; and making a
15 repeal].
16 Section 2. The definitions of "governing body" and
17 "political subdivision" in section 2 of the act are amended to
18 read:
1 Section 2. Definitions.
2 The following words and phrases when used in this act shall
3 have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
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 * * *
14 "Political subdivision." Any city, borough, incorporated
15 town, township or school district.
16 * * *
17 Section 3. Section 4(c) of the act is amended to read: <--
18 SECTION 3. SECTIONS 4(C) AND 5 OF THE ACT ARE AMENDED TO <--
19 READ:
20 Section 4. Earned income tax rate limits.
21 * * *
22 (c) Other rates of taxation.--If a municipality or school
23 district, both of which impose an earned income tax on the same
24 individual under The Local Tax Enabling Act and both of which
25 are limited to or have agreed upon a division of the tax rate in
26 accordance with section 8(3) of The Local Tax Enabling Act, and
27 the school district receives voter approval under section 7 and
28 opts to increase the rate of earned income tax in excess of that
29 limit or agreement, then the municipality or school district
30 which does not receive voter approval shall remain subject to
20010H2126B3019 - 2 -
1 that limit or agreement.
2 SECTION 5. OCCUPATION TAX PROHIBITED. <--
3 (A) GENERAL RULE.--FOR THE FIRST FISCAL YEAR BEGINNING AFTER
4 APPROVAL OF THE REFERENDUM REQUIRED UNDER SECTION 7 AND EACH
5 FISCAL YEAR THEREAFTER, A POLITICAL SUBDIVISION IS PROHIBITED
6 FROM LEVYING, ASSESSING OR COLLECTING AN OCCUPATION TAX.
7 (B) OCCUPATION ASSESSMENT TAX ROLL.--IN A COUNTY WHERE NO
8 POLITICAL SUBDIVISION LEVIES THE TAX, THE COUNTY SHALL NOT BE
9 REQUIRED UNDER THE PROVISIONS OF THIS OR ANOTHER STATUTE TO
10 MAINTAIN THE OCCUPATION ASSESSMENT TAX ROLL.
11 (C) APPLICABILITY.--THIS SECTION SHALL NOT APPLY TO THE
12 COLLECTION OF DELINQUENT OCCUPATION TAXES.
13 Section 4. This act shall apply to political subdivisions
14 which levy an occupation tax on the effective date of this act.
15 Section 5. This act shall take effect immediately.
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