PRIOR PRINTER'S NOS. 1444, 2379, 3182, PRINTER'S NO. 3537
3306
No. 1206 Session of 2003
INTRODUCED BY MAHER, APRIL 21, 2003
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
MARCH 23, 2004
AN ACT
1 Providing for applicability of the act of December 9, 2002 <--
2 (P.L.1364, No.166), entitled "An act amending AMENDING the <--
3 act of December 31, 1965 (P.L.1257, No.511), entitled 'An "AN <--
4 act empowering cities of the second class, cities of the
5 second class A, cities of the third class, boroughs, towns,
6 townships of the first class, townships of the second class,
7 school districts of the second class, school districts of the
8 third class and school districts of the fourth class
9 including independent school districts, to levy, assess,
10 collect or to provide for the levying, assessment and
11 collection of certain taxes subject to maximum limitations
12 for general revenue purposes; authorizing the establishment
13 of bureaus and the appointment and compensation of officers,
14 agencies and employes to assess and collect such taxes;
15 providing for joint collection of certain taxes, prescribing
16 certain definitions and other provisions for taxes levied and
17 assessed upon earned income, providing for annual audits and
18 for collection of delinquent taxes, and permitting and
19 requiring penalties to be imposed and enforced, including
20 penalties for disclosure of confidential information,
21 providing an appeal from the ordinance or resolution levying
22 such taxes to the court of quarter sessions and to the
23 Supreme Court and Superior Court,' further providing for <--
24 delegation of taxing powers and restrictions and for
25 definitions." COURT," FURTHER PROVIDING FOR DEFINITIONS; AND <--
26 PROVIDING FOR THE APPLICABILITY OF 2002 AMENDMENTS RELATING
27 TO DEFINITIONS REGARDING EARNED INCOME TAX.
28 The General Assembly of the Commonwealth of Pennsylvania
29 hereby enacts as follows:
1 Section 1. The amendment of DEFINITION OF "EARNED INCOME" IN <--
2 section 2 13 I of the act of December 31, 1965 (P.L.1257, <--
3 No.511), known as The Local Tax Enabling Act, and the IS AMENDED <--
4 TO READ:
5 SECTION 13. EARNED INCOME TAXES.--ON AND AFTER THE EFFECTIVE
6 DATE OF THIS ACT THE REMAINING PROVISIONS OF THIS SECTION SHALL
7 BE INCLUDED IN OR CONSTRUED TO BE A PART OF EACH TAX LEVIED AND
8 ASSESSED UPON EARNED INCOME BY ANY POLITICAL SUBDIVISION LEVYING
9 AND ASSESSING SUCH TAX PURSUANT TO THIS ACT. THE DEFINITIONS
10 CONTAINED IN THIS SECTION SHALL BE EXCLUSIVE FOR ANY TAX UPON
11 EARNED INCOME AND NET PROFITS LEVIED AND ASSESSED PURSUANT TO
12 THIS ACT, AND SHALL NOT BE ALTERED OR CHANGED BY ANY POLITICAL
13 SUBDIVISION LEVYING AND ASSESSING SUCH TAX.
14 I. DEFINITIONS
15 * * *
16 "EARNED INCOME." COMPENSATION AS DETERMINED UNDER SECTION 303
17 OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE "TAX
18 REFORM CODE OF 1971," AND REGULATIONS IN 61 PA. CODE PT. I
19 SUBPT. B ART. V (RELATING TO PERSONAL INCOME TAX), NOT
20 INCLUDING, HOWEVER, WAGES OR COMPENSATION PAID TO INDIVIDUALS ON
21 ACTIVE MILITARY SERVICE. EMPLOYE BUSINESS EXPENSES ARE ALLOWABLE
22 DEDUCTIONS AS DETERMINED UNDER ARTICLE III OF THE "TAX REFORM
23 CODE OF 1971." THE AMOUNT OF ANY HOUSING ALLOWANCE PROVIDED TO A
24 MEMBER OF THE CLERGY SHALL NOT BE TAXABLE AS EARNED INCOME.
25 * * *
26 SECTION 2. THE FOLLOWING PROVISIONS SHALL APPLY TO TAXABLE
27 YEARS BEGINNING AFTER DECEMBER 31, 2002:
28 (1) THE amendment of the definitions of "earned income"
29 and "net profits" in section 13 I of The Local Tax Enabling <--
30 Act in THE ACT IN SECTION 2 OF the act of December 9, 2002 <--
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1 (P.L.1364, No.166), entitled "An act amending the act of
2 December 31, 1965 (P.L.1257, No.511), entitled 'An act
3 empowering cities of the second class, cities of the second
4 class A, cities of the third class, boroughs, towns,
5 townships of the first class, townships of the second class,
6 school districts of the second class, school districts of the
7 third class and school districts of the fourth class
8 including independent school districts, to levy, assess,
9 collect or to provide for the levying, assessment and
10 collection of certain taxes subject to maximum limitations
11 for general revenue purposes; authorizing the establishment
12 of bureaus and the appointment and compensation of officers,
13 agencies and employes to assess and collect such taxes;
14 providing for joint collection of certain taxes, prescribing
15 certain definitions and other provisions for taxes levied and
16 assessed upon earned income, providing for annual audits and
17 for collection of delinquent taxes, and permitting and
18 requiring penalties to be imposed and enforced, including
19 penalties for disclosure of confidential information,
20 providing an appeal from the ordinance or resolution levying
21 such taxes to the court of quarter sessions and to the
22 Supreme Court and Superior Court,' further providing for
23 delegation of taxing powers and restrictions and for <--
24 definitions," shall apply to taxable years beginning after
25 December 31, 2002. RESTRICTIONS AND FOR DEFINITIONS." <--
26 (2) THE AMENDMENT OF THE DEFINITION OF "EARNED INCOME"
27 IN SECTION 13 I OF THE ACT IN SECTION 1 OF THIS ACT.
28 Section 2 3. This act shall take effect immediately. <--
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