PRIOR PRINTER'S NOS. 1850, 2136 PRINTER'S NO. 2159
No. 1372 Session of 2002
INTRODUCED BY FUMO, GERLACH, ARMSTRONG, TARTAGLIONE, SCHWARTZ,
STACK, A. WILLIAMS, ERICKSON, GREENLEAF, C. WILLIAMS, HOLL,
BELL, TOMLINSON, MUSTO, CONTI, MELLOW AND CORMAN,
APRIL 1, 2002
AS AMENDED ON THIRD CONSIDERATION, JUNE 26, 2002
AN ACT
1 Amending Title 53 (Municipalities Generally) of the Pennsylvania
2 Consolidated Statutes, providing for wage tax reduction; and
3 making repeals.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Part VII of Title 53 of the Pennsylvania
7 Consolidated Statutes is amended by adding a subpart to read:
8 SUBPART A
9 WAGE TAX
10 Chapter
11 70. Wage Tax Reduction
12 CHAPTER 70
13 WAGE TAX REDUCTION
14 Sec.
15 7001. Definitions.
16 7002. Wage tax reduction.
17 7003. Oversight by court of common pleas.
1 § 7001. Definitions.
2 The following words and phrases when used in this chapter
3 shall have the meanings given to them in this section unless the
4 context clearly indicates otherwise:
5 "Fiscal year." The period between July 1 of a year and June
6 30 of the succeeding year as used by a city to determine a
7 fiscal year.
8 "Growth of Wage Income." The percentage growth of wages, <--
9 salaries and commissions over each calendar year beginning with
10 the year 2002. Each year, by March 15, the growth rate shall be
11 calculated as the change in percent of wages, salaries and
12 commissions as calculated from all wage tax receipts in the
13 immediately preceding calendar year divided by the effective tax
14 rate for that calendar year. The wages, salaries and commissions
15 for the year preceding the immediately preceding year shall also
16 be similarly calculated and the percentage growth between those
17 two numbers shall be the Growth of Wage Income for the year. It
18 shall be the obligation of the Auditor General to certify a
19 number for the Growth of Wage Income.
20 § 7002. Wage tax reduction.
21 (a) General rule.--The tax on wages, salaries, compensation,
22 commissions and other income received and imposed by a city of
23 the first class under the act of August 5, 1932 (Sp.Sess.,
24 P.L.45, No.45), referred to as the Sterling Act, shall be levied
25 at the rates set forth in this section.
26 (b) Tax utilized by Pennsylvania Intergovernmental
27 Cooperation Authority.--The portion of the wage tax and the net
28 profits tax levied by a city that is utilized for the
29 Pennsylvania Intergovernmental Cooperation Authority shall not
30 be altered by this chapter.
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1 (c) Collection and due dates of taxes.--Any wage or net
2 profits tax due before June 30, 2002, shall not be effected by
3 this chapter. The collection methods or due dates of any taxes
4 shall not be effected by this chapter. All enforcement and
5 collection provisions authorized by the Sterling Act shall
6 remain valid.
7 (d) Residents.--The tax authorized or imposed under the <--
8 Sterling Act and imposed under Chapter 19 of the Philadelphia <--
9 Code BY AN ORDINANCE OF A CITY OF THE FIRST CLASS for residents <--
10 of a city of the first class in calendar year 2002 is 4.5385%
11 including the amount specified for Pennsylvania
12 Intergovernmental Cooperation Authority. For each succeeding
13 fiscal year the rate of taxation shall be no higher than the
14 rates listed below:
15 Fiscal Years Rates
16 2002 4.54%
17 2003 4.3285%
18 2004 4.1185%
19 2005 3.9085%
20 2006 3.6985%
21 2007 and thereafter 3.4885%
22 (e) Nonresidents.--The tax authorized or imposed under the <--
23 Sterling Act and imposed under Chapter 19 of the Philadelphia <--
24 Code BY AN ORDINANCE OF A CITY OF THE FIRST CLASS for <--
25 nonresidents of a city of the first class in calendar year 2002
26 is 3.9462%. For each succeeding fiscal year the rate of taxation
27 shall be no higher than the rates listed below:
28 Fiscal Years Rates
29 2002 3.95%
30 2003 3.7636%
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1 2004 3.5810%
2 2005 3.3984%
3 2006 3.2158%
4 2007 and thereafter 3.0332%
5 (f) Business profits of residents.--The tax authorized or <--
6 imposed under the Sterling Act and imposed under Chapter 19 of <--
7 the Philadelphia Code BY AN ORDINANCE OF A CITY OF THE FIRST <--
8 CLASS for residents of a city of the first class on net profits
9 earned in businesses, professions or other activities in
10 calendar year 2002 is 4.5385% including the amount specified for
11 Pennsylvania Intergovernmental Cooperation Authority. For each
12 succeeding calendar year the rate of taxation shall be no higher
13 than the rates listed below:
14 Fiscal Years Rates
15 2002 4.54%
16 2003 4.3285%
17 2004 4.1185%
18 2005 3.9085%
19 2006 3.6985%
20 2007 and thereafter 3.4885%
21 (g) Business profits of nonresidents.--The tax authorized or <--
22 imposed under the Sterling Act and imposed under Chapter 19 of <--
23 the Philadelphia Code BY AN ORDINANCE OF A CITY OF THE FIRST <--
24 CLASS on net profits earned in businesses, professions or other
25 activities conducted in a city of the first class by
26 nonresidents of a city of the first class in calendar year 2002
27 is 3.9462%. For each succeeding calendar year the rate of
28 taxation shall be no higher than the rates listed below:
29 Fiscal Years Rates
30 2002 3.95%
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1 2003 3.7636%
2 2004 3.5810%
3 2005 3.3984%
4 2006 3.2158%
5 2007 and thereafter 3.0332%
6 § 7003. Oversight by court of common pleas.
7 In the event that a duly elected member of the city council
8 of a city of the first class determines that the determined tax
9 rate is not being reduced by the correct specified amount then
10 that council person may bring suit to the court of common pleas
11 to insure that the specified tax reductions are being utilized.
12 Section 2. The following acts or parts of acts are repealed
13 to the extent specified:
14 Section 359(b)(1) and (2) of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, is repealed insofar
16 as it applies to cities of the first class.
17 The act of August 5, 1932 (Sp.Sess., P.L.45, No.45), referred
18 to as the Sterling Act, is repealed to the extent it is
19 inconsistent with the provisions of 53 Pa.C.S. Ch. 70.
20 Section 3. The addition of 53 Pa.C.S. Ch. 70 shall apply to
21 fiscal years beginning after December 31, 2002.
22 Section 4. This act shall take effect in 60 days.
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