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        PRIOR PRINTER'S NO. 3078                      PRINTER'S NO. 3534

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE RESOLUTION

No. 509 Session of 2005


        INTRODUCED BY SCAVELLO, NOVEMBER 14, 2005

        AS AMENDED, HOUSE OF REPRESENTATIVES, FEBRUARY 8, 2006

                                  A RESOLUTION

     1  Directing the Local Government Commission to study the
     2     feasibility of a regionalized collection system for the
     3     locally imposed earned income tax levied by the
     4     Commonwealth's school districts and municipalities.

     5     WHEREAS, The Department of Community and Economic Development
     6  in August 2004 released a report that illustrated the
     7  inefficiencies of the locally imposed earned income tax
     8  collection system; and
     9     WHEREAS, The Department of Community and Economic Development
    10  estimated that the fragmented and dysfunctional earned income
    11  tax collection system causes the loss of more than $100 million
    12  annually and increases the cost of doing business in this
    13  Commonwealth; and
    14     WHEREAS, The majority of the current local income tax
    15  collection systems utilized in this Commonwealth suffer from a
    16  lack of cooperation among the estimated 560 different tax
    17  collectors; and
    18     WHEREAS, It is estimated that 80% of the 560 income tax


     1  collectors in this Commonwealth collect a local income tax from
     2  only one or two taxing jurisdictions, which duplicates work
     3  among collectors and inflates costs; and
     4     WHEREAS, Enactment of Act 72 of 2004, Act 24 of 2001 and
     5  other acts authorizing local taxing authorities to increase
     6  their locally imposed income tax beyond the determined rate in
     7  Act 511 of 1965 has created a large disparity in the income tax
     8  rates which local authorities may levy; therefore be it
     9     RESOLVED, That the House of Representatives direct the Local
    10  Government Commission to study the possibility of a regional      <--
    11  collection system REVIEW THE DEPARTMENT OF COMMUNITY AND          <--
    12  ECONOMIC DEVELOPMENT REPORT AND COMMENTS THERETO, ALONG WITH
    13  SUCH OTHER EXISTING COMMENTARY AS IT DEEMS NECESSARY TO
    14  DETERMINE THE FEASIBILITY OF REGIONAL COLLECTION SYSTEMS; and be
    15  it further
    16     RESOLVED, That, if a regional collection system is determined
    17  to be feasible, the Local Government Commission work in
    18  conjunction with the Department of Community and Economic
    19  Development on suggested draft legislation implementing a
    20  regional collection system; and be it further
    21     RESOLVED, That the Local Government Commission report its
    22  findings and recommendation, including any suggested
    23  legislation, to the House of Representatives within six months
    24  of the adoption of this resolution.




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