PRINTER'S NO. 1400
No. 1015 Session of 2004
INTRODUCED BY FERLO, FEBRUARY 11, 2004
REFERRED TO FINANCE, FEBRUARY 11, 2004
AN ACT
1 Authorizing assessment and collection of an employee municipal
2 services tax in second class cities.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Second Class
7 City Employee Municipal Services Tax Act.
8 Section 2. Tax authorization.
9 (a) General rule.--Notwithstanding any other provision of
10 law to the contrary, the governing body of a city of the second
11 class shall have the authority to levy, assess and collect a tax
12 of up to $52 on residents and nonresidents employed within the
13 city for the privilege of receiving municipal services.
14 (b) Situs.--The situs of such tax shall be the place of
15 employment, but, in the event a person is engaged in more than
16 one occupation or an occupation which requires his working in
17 more than one municipality during the calendar year, the
1 priority of claim to collect such municipal services tax shall
2 be in the following order: first, the municipality in which a
3 person maintains his principal office or is principally
4 employed; second, the municipality in which the person resides
5 and works if such a tax is levied by that municipality; third,
6 the municipality in which a person is employed and which imposes
7 the tax nearest in miles to the person's home. The place of
8 employment shall be determined as of the day the taxpayer first
9 becomes subject to the tax during the calendar year.
10 (c) Intent.--It is the intent of this provision that no
11 individual subject to the municipal services tax imposed and
12 collected by a city of the second class under this act and also
13 subject to an occupational privilege tax imposed by another
14 political subdivision pursuant to the act of December 31, 1965
15 (P.L.1257, No.511), known as The Local Tax Enabling Act, shall
16 pay more than $52 in any calendar year to all political
17 subdivisions imposing such taxes.
18 (d) Disputes.--In case of a dispute, a tax receipt of the
19 taxing authority for that calendar year declaring that the
20 taxpayer has made prior payment constitutes prima facie
21 certification of payment to all other political subdivisions.
22 Section 3. Collection of tax.
23 (a) General rule.--Any city of the second class imposing the
24 tax authorized under section 2 shall designate the tax officer
25 who is appointed under section 10 of the act of December 31,
26 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, or
27 otherwise by law, as the collector of the tax. In the
28 performance of the tax collection duties under this act, the
29 designated tax officer shall have all the same powers, rights,
30 responsibilities and duties for the collection of the taxes
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1 which may be imposed under The Local Tax Enabling Act, under 53
2 Pa.C.S. Ch. 84 Subch. C (relating to local taxpayer's bill of
3 rights), or as otherwise provided by law.
4 (b) Ordinance.--The ordinance or resolution imposing the tax
5 under the authority of this act may contain provisions requiring
6 employers doing business within the city imposing the tax to
7 withhold the tax from the compensation of those of their
8 employees who are subject to the tax on a weekly basis and may
9 prescribe the time and method through which the employer shall
10 remit the taxes deducted to the tax officer.
11 Section 4. Tax exemption.
12 A city of the second class that imposes the tax authorized
13 under section 2 may exempt from the payment of that tax any
14 person whose total income from all sources is less than $10,000.
15 Section 5. Claims for exemptions.
16 A city of the second class may regulate by ordinance the
17 processing of claims for exemptions under section 4.
18 Section 6. Procedure and administration.
19 In order to levy the tax under section 2, the governing body
20 shall adopt a resolution or ordinance referring to this act.
21 Prior to adopting a resolution or ordinance imposing the tax
22 authorized by section 2, the governing body shall give public
23 notice of its intent to adopt the resolution or ordinance in the
24 manner provided by section 4 of the act of December 31, 1965
25 (P.L.1257, No.511), known as The Local Tax Enabling Act, and
26 shall conduct at least one public hearing regarding the proposed
27 adoption of the resolution or ordinance.
28 Section 7. Prohibition.
29 Any city of the second class levying the tax authorized under
30 section 2 shall be prohibited from levying an occupational
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1 privilege tax under the act of December 31, 1965 (P.L.1257,
2 No.511), known as The Local Tax Enabling Act.
3 Section 8. Effective date.
4 This act shall take effect immediately.
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