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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 23, 39                    PRINTER'S NO. 981

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 218 Session of 2007


        INTRODUCED BY BROWNE, KASUNIC, BOSCOLA, FONTANA, ROBBINS, STOUT,
           COSTA, FOLMER, ARMSTRONG, PUNT, REGOLA, GORDNER, PILEGGI,
           ERICKSON, O'PAKE, VANCE, C. WILLIAMS, LOGAN, WAUGH, BRUBAKER,
           PIPPY, WONDERLING, SCARNATI, BAKER AND FUMO, JANUARY 29, 2007

        AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
           AS AMENDED, MAY 7, 2007

                                     AN ACT

     1  Amending the act of December 31, 1965 (P.L.1257, No.511),
     2     entitled "An act empowering cities of the second class,
     3     cities of the second class A, cities of the third class,
     4     boroughs, towns, townships of the first class, townships of
     5     the second class, school districts of the second class,
     6     school districts of the third class and school districts of
     7     the fourth class including independent school districts, to
     8     levy, assess, collect or to provide for the levying,
     9     assessment and collection of certain taxes subject to maximum
    10     limitations for general revenue purposes; authorizing the
    11     establishment of bureaus and the appointment and compensation
    12     of officers, agencies and employes to assess and collect such
    13     taxes; providing for joint collection of certain taxes,
    14     prescribing certain definitions and other provisions for
    15     taxes levied and assessed upon earned income, providing for
    16     annual audits and for collection of delinquent taxes, and
    17     permitting and requiring penalties to be imposed and
    18     enforced, including penalties for disclosure of confidential
    19     information, providing an appeal from the ordinance or
    20     resolution levying such taxes to the court of quarter
    21     sessions and to the Supreme Court and Superior Court,"
    22     providing for local services taxes; repealing provisions
    23     relating to emergency and municipal services taxes and to
    24     continuation of occupational privilege taxes; and making
    25     editorial changes.

    26     The General Assembly of the Commonwealth of Pennsylvania
    27  hereby enacts as follows:


     1     Section 1.  Section 2 of the act of December 31, 1965
     2  (P.L.1257, No.511), known as The Local Tax Enabling Act, amended
     3  December 1, 2004 (P.L.1729, No.222), is amended to read:
     4     Section 2.  Delegation of Taxing Powers and Restrictions
     5  Thereon.--(A)  The duly constituted authorities of the following  <--
     6  political subdivisions, cities of the second class, cities of
     7  the second class A, cities of the third class, boroughs, towns,
     8  townships of the first class, townships of the second class,
     9  school districts of the second class, school districts of the
    10  third class, and school districts of the fourth class, in all
    11  cases including independent school districts, may, in their
    12  discretion, by ordinance or resolution, for general revenue
    13  purposes, levy, assess and collect or provide for the levying,
    14  assessment and collection of such taxes as they shall determine
    15  on persons, transactions, occupations, privileges, subjects and
    16  personal property within the limits of such political
    17  subdivisions, and upon the transfer of real property, or of any
    18  interest in real property, situate within the political
    19  subdivision levying and assessing the tax, regardless of where
    20  the instruments making the transfers are made, executed or
    21  delivered or where the actual settlements on such transfer take
    22  place. The taxing authority may provide that the transferee
    23  shall remain liable for any unpaid realty transfer taxes imposed
    24  by virtue of this act. Each local taxing authority may, by
    25  ordinance or resolution, exempt any person whose total income
    26  from all sources is less than twelve thousand dollars ($12,000)
    27  per annum from the per capita or similar head tax, occupation
    28  tax [and emergency and municipal services tax,] or earned income
    29  tax, or any portion thereof, and may adopt regulations for the
    30  processing of claims for exemptions. Each political subdivision
    20070S0218B0981                  - 2 -     

     1  levying the local services tax at a rate exceeding ten dollars
     2  ($10) shall, and each political subdivision levying the local
     3  services tax at a rate of ten dollars ($10) or less may, by
     4  ordinance or resolution, exempt any person from the local
     5  services tax whose total income EARNED INCOME AND NET PROFITS     <--
     6  from all sources WITHIN THE POLITICAL SUBDIVISION is less than    <--
     7  twelve thousand dollars ($12,000) for the calendar year in which
     8  the local services tax is levied. Each political subdivision      <--
     9  providing for exemption shall adopt regulations for the
    10  processing of refund claims for the local services tax paid by
    11  any person who is eligible for the exemption. The regulations
    12  shall be consistent with 53 Pa.C.S. §§ 8425 (relating to refunds
    13  of overpayments) and 8426 (relating to interest on overpayment).
    14  Refunds made within seventy-five days of a refund request or
    15  seventy-five days after the last day the employer is required to
    16  remit the local services tax for the last quarter of the
    17  calendar year under section 9 of this act, whichever is later,
    18  shall not be subject to interest imposed under 53 Pa.C.S. §
    19  8426. It is the intent of this section that a political
    20  subdivision or its tax officer determine eligibility for the
    21  exemption and provide refunds to exempt persons from the local
    22  services tax and that employers shall not be responsible for
    23  processing an exemption or exempting any employe from the local
    24  services tax. For purposes of exemption from the local services
    25  tax, "income from all sources" shall be limited to "earned
    26  income" and "net profits" as defined in Division I of section
    27  13. The Department of Community and Economic Development shall
    28  develop uniform forms to be used by political subdivisions to
    29  facilitate the refund of the local services tax to any person
    30  eligible for the exemption. Such local authorities shall not
    20070S0218B0981                  - 3 -     

     1     (B)  (1)  A PERSON SEEKING TO CLAIM AN EXEMPTION FROM THE      <--
     2  LOCAL SERVICES TAX SHALL ANNUALLY FILE AN EXEMPTION CERTIFICATE
     3  WITH THE POLITICAL SUBDIVISION LEVYING THE TAX AND WITH THE
     4  PERSON'S EMPLOYER AFFIRMING THAT THE PERSON REASONABLY EXPECTS
     5  TO RECEIVE EARNED INCOME AND NET PROFITS FROM ALL SOURCES WITHIN
     6  THE POLITICAL SUBDIVISION OF LESS THAN TWELVE THOUSAND DOLLARS
     7  ($12,000) IN THE CALENDAR YEAR FOR WHICH THE EXEMPTION
     8  CERTIFICATE IS FILED. IN THE EVENT THE POLITICAL SUBDIVISION
     9  UTILIZES A TAX COLLECTION OFFICER PURSUANT TO SECTION 10 OF THIS
    10  ACT, THE POLITICAL SUBDIVISION SHALL PROVIDE A COPY OF THE
    11  EXEMPTION CERTIFICATE TO THAT OFFICER. THE EXEMPTION CERTIFICATE
    12  SHALL HAVE ATTACHED TO IT A COPY OF ALL OF THE EMPLOYE'S LAST
    13  PAY STUBS OR W-2 FORMS FROM EMPLOYMENT WITHIN THE POLITICAL
    14  SUBDIVISION FOR THE YEAR PRIOR TO THE FISCAL YEAR FOR WHICH THE
    15  EMPLOYE IS REQUESTING TO BE EXEMPTED FROM THE LOCAL SERVICES
    16  TAX. UPON RECEIPT OF THE EXEMPTION CERTIFICATE AND UNTIL
    17  OTHERWISE INSTRUCTED BY THE POLITICAL SUBDIVISION LEVYING THE
    18  TAX OR EXCEPT AS REQUIRED BY CLAUSE (2), THE EMPLOYER SHALL NOT
    19  WITHHOLD THE TAX FROM THE PERSON DURING THE CALENDAR YEAR OR THE
    20  REMAINDER OF THE CALENDAR YEAR FOR WHICH THE EXEMPTION
    21  CERTIFICATE APPLIES. EMPLOYERS SHALL ENSURE THAT THE EXEMPTION
    22  CERTIFICATE FORMS ARE READILY AVAILABLE TO EMPLOYES AT ALL TIMES
    23  AND SHALL FURNISH EACH NEW EMPLOYE WITH A FORM AT THE TIME OF
    24  HIRING. THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
    25  SHALL DEVELOP AND MAKE AVAILABLE TO POLITICAL SUBDIVISIONS AND
    26  EMPLOYERS UNIFORM EXEMPTION CERTIFICATES REQUIRED BY THIS
    27  CLAUSE.
    28     (2)  WITH RESPECT TO A PERSON WHO CLAIMED AN EXEMPTION FOR A
    29  GIVEN CALENDAR YEAR FROM THE TAX LEVIED BY A POLITICAL
    30  SUBDIVISION UNDER THIS SUBSECTION, UPON NOTIFICATION TO AN
    20070S0218B0981                  - 4 -     

     1  EMPLOYER BY THE PERSON OR BY THE POLITICAL SUBDIVISION THAT THE
     2  PERSON HAS RECEIVED INCOME EQUAL TO OR IN EXCESS OF TWELVE
     3  THOUSAND DOLLARS ($12,000) IN THAT CALENDAR YEAR OR THAT THE
     4  PERSON IS OTHERWISE INELIGIBLE FOR THE TAX EXEMPTION FOR THAT
     5  CALENDAR YEAR, OR UPON AN EMPLOYER'S PAYMENT TO THE PERSON OF
     6  INCOME IN AN AMOUNT EQUAL TO OR IN EXCESS OF TWELVE THOUSAND
     7  DOLLARS ($12,000) IN THAT CALENDAR YEAR, AN EMPLOYER SHALL
     8  WITHHOLD THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THIS
     9  SECTION FROM THE PERSON UNDER CLAUSE (3).
    10     (3)  IF A PERSON WHO CLAIMED AN EXEMPTION FOR A GIVEN
    11  CALENDAR YEAR FROM THE TAX LEVIED BY A POLITICAL SUBDIVISION
    12  UNDER THIS SUBSECTION BECOMES SUBJECT TO THE TAX FOR THE
    13  CALENDAR YEAR UNDER CLAUSE (2), THE EMPLOYER SHALL WITHHOLD THE
    14  TAX FOR THE REMAINDER OF THAT CALENDAR YEAR. THE EMPLOYER SHALL
    15  WITHHOLD FROM THE PERSON, FOR THE FIRST PAYROLL PERIOD AFTER
    16  RECEIPT OF THE NOTIFICATION UNDER CLAUSE (2), A LUMP SUM EQUAL
    17  TO THE AMOUNT OF TAX THAT WAS NOT WITHHELD FROM THE PERSON DUE
    18  TO THE EXEMPTION CLAIMED BY THE PERSON UNDER THIS SUBSECTION.
    19  THE AMOUNT OF TAX WITHHELD PER PAYROLL PERIOD FOR THE REMAINING
    20  PAYROLL PERIODS IN THAT CALENDAR YEAR SHALL BE THE SAME AMOUNT
    21  WITHHELD FOR OTHER EMPLOYES. IN THE EVENT THE EMPLOYMENT OF A
    22  PERSON SUBJECT TO WITHHOLDING OF THE TAX UNDER THIS CLAUSE IS
    23  SUBSEQUENTLY SEVERED IN THAT CALENDAR YEAR, THE PERSON SHALL BE
    24  LIABLE FOR ANY OUTSTANDING BALANCE OF TAX DUE AND THE POLITICAL
    25  SUBDIVISION LEVYING THE TAX MAY PURSUE COLLECTION UNDER THIS
    26  ACT.
    27     (4)  EXCEPT AS PROVIDED IN CLAUSE (2), IT IS THE INTENT OF
    28  THIS SUBSECTION THAT EMPLOYERS SHALL NOT BE RESPONSIBLE FOR
    29  INVESTIGATING EXEMPTION CERTIFICATES, MONITORING TAX EXEMPTION
    30  ELIGIBILITY OR EXEMPTING ANY EMPLOYE FROM A TAX IMPOSED UNDER
    20070S0218B0981                  - 5 -     

     1  THIS SECTION.
     2     (5)  FOR THE PURPOSES OF THIS SUBSECTION, THE TERMS "EARNED
     3  INCOME" AND "NET PROFITS" SHALL HAVE THE SAME MEANINGS AS THOSE
     4  TERMS ARE GIVEN IN DIVISION I OF SECTION 13.
     5     (C)  SUCH LOCAL AUTHORITIES SHALL NOT have authority by
     6  virtue of this act:
     7     (1)  To levy, assess and collect or provide for the levying,
     8  assessment and collection of any tax on the transfer of real
     9  property when the transfer is by will or mortgage or the
    10  intestate laws of this Commonwealth or on a transfer by the
    11  owner of previously occupied residential premises to a builder
    12  of new residential premises when such previously occupied
    13  residential premises is taken in trade by such builder as part
    14  of the consideration from the purchaser of a new previously
    15  unoccupied single family residential premises or on a transfer
    16  between corporations operating housing projects pursuant to the
    17  housing and redevelopment assistance law and the shareholders
    18  thereof, or on a transfer between nonprofit industrial
    19  development agencies and industrial corporations purchasing from
    20  them, or on transfer to or from nonprofit industrial development
    21  agencies, or on a transfer between husband and wife, or on a
    22  transfer between persons who were previously husband and wife
    23  but who have since been divorced; provided such transfer is made
    24  within three months of the date of the granting of the final
    25  decree in divorce, or the decree of equitable distribution of
    26  marital property, whichever is later, and the property or
    27  interest therein, subject to such transfer, was acquired by the
    28  husband and wife, or husband or wife, prior to the granting of
    29  the final decree in divorce, or on a transfer between parent and
    30  child or the spouse of such a child, or between parent and
    20070S0218B0981                  - 6 -     

     1  trustee for the benefit of a child or the spouse of such child,
     2  or on a transfer between a grandparent and grandchild or the
     3  spouse of such grandchild, or on a transfer between brother and
     4  sister or brother and brother or sister and sister or the spouse
     5  of such brother or sister, or on a transfer to a conservancy
     6  which possesses a tax-exempt status pursuant to section
     7  501(c)(3) of the Internal Revenue Code, and which has as its
     8  primary purpose the preservation of land for historic,
     9  recreational, scenic, agricultural or open space opportunities,
    10  by and between a principal and straw party for the purpose of
    11  placing a mortgage or ground rent upon the premises, or on a
    12  correctional deed without consideration, or on a transfer to the
    13  United States, the Commonwealth of Pennsylvania, or to any of
    14  their instrumentalities, agencies or political subdivisions, by
    15  gift, dedication or deed in lieu of condemnation, or deed of
    16  confirmation in connection with condemnation proceedings, or
    17  reconveyance by the condemning body of the property condemned to
    18  the owner of record at the time of condemnation which
    19  reconveyance may include property line adjustments provided said
    20  reconveyance is made within one year from the date of
    21  condemnation, leases, or on a conveyance to a trustee under a
    22  recorded trust agreement for the express purpose of holding
    23  title in trust as security for a debt contracted at the time of
    24  the conveyance under which the trustee is not the lender and
    25  requiring the trustee to make reconveyance to the grantor-
    26  borrower upon the repayment of the debt, or a transfer within a
    27  family from a sole proprietor family member to a family farm
    28  corporation, or in any sheriff sale instituted by a mortgagee in
    29  which the purchaser of said sheriff sale is the mortgagee who
    30  instituted said sale, or on a privilege, transaction, subject,
    20070S0218B0981                  - 7 -     

     1  occupation or personal property which is now or does hereafter
     2  become subject to a State tax or license fee;
     3     (2)  To levy, assess or collect a tax on the gross receipts
     4  from utility service of any person or company whose rates and
     5  services are fixed and regulated by the Pennsylvania Public
     6  Utility Commission or on any public utility services rendered by
     7  any such person or company or on any privilege or transaction
     8  involving the rendering of any such public utility service;
     9     (3)  Except on sales of admission to places of amusement,      <--
    10  OTHER THAN ON SALES OF ADMISSION TO PROFESSIONAL BASEBALL EVENTS
    11  IN A CITY OF THE THIRD CLASS WITH A POPULATION OF NOT LESS THAN
    12  ONE HUNDRED SIX THOUSAND AND NOT MORE THAN ONE HUNDRED SEVEN
    13  THOUSAND BASED ON THE 2000 FEDERAL DECENNIAL CENSUS, or on sales
    14  or other transfers of title or possession of property, to levy,
    15  assess or collect a tax on the privilege of employing such
    16  tangible property as is now or does hereafter become subject to
    17  a State tax; and for the purposes of this clause, real property
    18  rented for camping purposes shall not be considered a place of
    19  amusement.
    20     (4)  To levy, assess and collect a tax on goods and articles
    21  manufactured in such political subdivision or on the by-products
    22  of manufacture, or on minerals, timber, natural resources and
    23  farm products produced in such political subdivision or on the
    24  preparation or processing thereof for use or market, or on any
    25  privilege, act or transaction related to the business of
    26  manufacturing, the production, preparation or processing of
    27  minerals, timber and natural resources, or farm products, by
    28  manufacturers, by producers and by farmers with respect to the
    29  goods, articles and products of their own manufacture,
    30  production or growth, or on any privilege, act or transaction
    20070S0218B0981                  - 8 -     

     1  relating to the business of processing by-products of
     2  manufacture, or on the transportation, loading, unloading or
     3  dumping or storage of such goods, articles, products or by-
     4  products; except that local authorities may levy, assess and
     5  collect [an emergency and municipal] a local services tax and
     6  taxes on the occupation, per capita and earned income or net
     7  profits of natural persons engaged in the above activities
     8  whether doing business as individual proprietorship or as
     9  members of partnerships or other associations;
    10     (5)  To levy, assess or collect a tax on salaries, wages,
    11  commissions, compensation and earned income of nonresidents of
    12  the political subdivisions: Provided, That this limitation (5)
    13  shall apply only to school districts of the second, third and
    14  fourth classes;
    15     (6)  To levy, assess or collect a tax on personal property
    16  subject to taxation by counties or on personal property owned by
    17  persons, associations and corporations specifically exempted by
    18  law from taxation under the county personal property tax law:
    19  Provided, That this limitation (6) shall not apply to cities of
    20  the second class;
    21     (7)  To levy, assess or collect a tax on membership in or
    22  membership dues, fees or assessment of charitable, religious,
    23  beneficial or nonprofit organizations including but not limited
    24  to sportsmens, recreational, golf and tennis clubs, girl and boy
    25  scout troops and councils;
    26     (8)  To levy, assess or collect any tax on a mobilehome or
    27  house trailer subject to a real property tax unless the same tax
    28  is levied, assessed and collected on other real property in the
    29  political subdivision.
    30     (9)  To levy, assess or collect any tax on individuals for
    20070S0218B0981                  - 9 -     

     1  the privilege of engaging in an occupation [(emergency and
     2  municipal services tax)] except that such a tax, to be known as
     3  the local services tax, may be levied, assessed and collected
     4  only by the political subdivision of the taxpayer's place of
     5  employment.
     6     [Payment of any emergency and municipal services tax to any
     7  political subdivision by any person pursuant to an ordinance or
     8  resolution passed or adopted under the authority of this act
     9  shall be no less than ten dollars ($10) nor more than fifty-two
    10  dollars ($52) on each person for each calendar year.
    11     The situs of such tax shall be the place of employment, but,
    12  in the event a person is engaged in more than one occupation, or
    13  an occupation which requires his working in more than one
    14  political subdivision during the calendar year, the priority of
    15  claim to collect such emergency and municipal services tax shall
    16  be in the following order: first, the political subdivision in
    17  which a person maintains his principal office or is principally
    18  employed; second, the political subdivision in which the person
    19  resides and works, if such a tax is levied by that political
    20  subdivision; third, the political subdivision in which a person
    21  is employed and which imposes the tax nearest in miles to the
    22  person's home. The place of employment shall be determined as of
    23  the day the taxpayer first becomes subject to the tax during the
    24  calendar year.
    25     It is the intent of this provision that no person shall pay
    26  more than fifty-two dollars ($52) in any calendar year as an
    27  emergency and municipal services tax irrespective of the number
    28  of political subdivisions within which such person may be
    29  employed within any given calendar year.
    30     In case of dispute, a tax receipt of the taxing authority for
    20070S0218B0981                 - 10 -     

     1  that calendar year declaring that the taxpayer has made prior
     2  payment which constitutes prima facie certification of payment
     3  to all other political subdivisions.] The following apply:
     4     (i)  If a local services tax is levied at a combined rate
     5  exceeding ten dollars ($10) in a calendar year, a person subject
     6  to the local services tax shall be assessed a pro rata share of
     7  the tax for each payroll period in which the person is engaging
     8  in an occupation. The pro rata share of the tax assessed on the
     9  person for a payroll period shall be determined by dividing the
    10  combined rate of the local services tax levied for the calendar
    11  year by the number of payroll periods established by the
    12  employer for the calendar year. For purposes of determining the
    13  pro rata share, an employer shall round down the amount of the
    14  tax collected each payroll period to the nearest one-hundredth
    15  of a dollar. Collection of the local services tax levied under
    16  this subclause shall be made on a payroll period basis for each
    17  payroll period in which the person is engaging in an occupation,
    18  except as provided in subclause (v).
    19     (ii)  If a school district levied an emergency and municipal
    20  services tax on the effective date of this subclause, the school
    21  district may continue to levy the local services tax in the same
    22  amount the school district collected on the effective date of
    23  this subclause. However, if a municipality located in whole or
    24  in part within the school district subsequently levies the local
    25  services tax, the school district may only collect five dollars
    26  ($5) on persons employed within the municipality each calendar
    27  year. A school district that did not levy an emergency and
    28  municipal services tax on the effective date of this subclause
    29  shall be prohibited from levying the local services tax. If a
    30  school district and a municipality located in whole or in part
    20070S0218B0981                 - 11 -     

     1  within the school district both levy a local services tax at a
     2  combined rate exceeding ten dollars ($10), the school district's
     3  pro rata share of the aggregate local services taxes levied on
     4  persons employed within the municipality shall be collected by
     5  the municipality or its tax officer based on payroll periods as
     6  provided under subclause (i) and shall be paid to the school
     7  district on a quarterly basis within sixty days of receipt by
     8  the municipality or its tax officer.
     9     (iii)  Except as provided in subclause (ii), no person shall
    10  be subject to the payment of the local services tax by more than
    11  one political subdivision during each payroll period as
    12  established by subclause (iv).
    13     (iv)  With respect to a person subject to the local services
    14  tax at a combined rate exceeding ten dollars ($10), the situs of
    15  the tax shall be the place of employment on the first day the
    16  person becomes subject to the tax during each payroll period.
    17  With respect to a person subject to the local services tax at a
    18  combined rate of not more than ten dollars ($10), the situs of
    19  the tax shall be the place of employment determined as of the
    20  day the person first becomes subject to the tax during the
    21  calendar year. In the event a person is engaged in more than one
    22  occupation, that is, concurrent employment, or an occupation
    23  which requires the person working in more than one political
    24  subdivision during a payroll period, the priority of claim to
    25  collect the local services tax shall be in the following order:
    26  first, the political subdivision in which a person maintains the
    27  person's principal office or is principally employed; second,
    28  the political subdivision in which the person resides and works,
    29  if the tax is levied by that political subdivision; and third,
    30  the political subdivision in which a person is employed and
    20070S0218B0981                 - 12 -     

     1  which imposes the tax nearest in miles to the person's home.
     2     (v)  In the case of concurrent employment, an employer shall
     3  refrain from withholding the local services tax, if the employe
     4  provides a recent pay statement from a principal employer that
     5  includes the name of the employer, the length of the payroll
     6  period and the amount of the local services tax withheld and a
     7  statement from the employe that the pay statement is from the
     8  employe's principal employer and the employe will notify other
     9  employers of a change in principal place of employment within
    10  two weeks of its occurrence. The Department of Community and
    11  Economic Development shall develop a uniform employe statement
    12  form.
    13     (vi)  The local services tax shall be no more than fifty-two
    14  dollars ($52) on each person for each calendar year,
    15  irrespective of the number of political subdivisions within
    16  which a person may be employed.
    17     (vii)  Political subdivisions shall adopt regulations for the
    18  processing of refund claims for overpaid local services taxes
    19  for any calendar year. The regulations shall be consistent with
    20  53 Pa.C.S. §§ 8425 and 8426. Refunds made within seventy-five
    21  days of a refund request or seventy-five days after the last day
    22  the employer is required to remit the local services tax for the
    23  last quarter of the calendar year under section 9 of this act,
    24  whichever is later, shall not be subject to interest imposed
    25  under 53 Pa.C.S. § 8426. Political subdivisions shall only
    26  provide refunds for amounts overpaid in a calendar year that
    27  exceed one dollar ($1).
    28     (viii)  The Department of Community and Economic Development
    29  may SHALL provide suggested forms and technical assistance to     <--
    30  facilitate the administration of the local services tax for
    20070S0218B0981                 - 13 -     

     1  political subdivisions and reduce the burden of implementation,
     2  accounting and compliance for employers and taxpayers.
     3     (ix)  For purposes of this clause, "combined rate" shall mean
     4  the aggregate annual rate of the local services tax levied by a
     5  school district and a municipality located in whole or in part
     6  within the school district.
     7     (10)  To levy, assess or collect a tax on admissions to
     8  motion picture theatres: Provided, That this limitation (10)
     9  shall not apply to cities of the second class.
    10     (11)  To levy, assess or collect a tax on the construction of
    11  or improvement to residential dwellings or upon the application
    12  for or issuance of permits for the construction of or
    13  improvements to residential dwellings.
    14     (12)  To levy, assess and collect a mercantile or business
    15  privilege tax on gross receipts or part thereof which are: (i)
    16  discounts allowed to purchasers as cash discounts for prompt
    17  payment of their bills; (ii) charges advanced by a seller for
    18  freight, delivery or other transportation for the purchaser in
    19  accordance with the terms of a contract of sale; (iii) received
    20  upon the sale of an article of personal property which was
    21  acquired by the seller as a trade-in to the extent that the
    22  gross receipts in the sale of the article taken in trade does
    23  not exceed the amount of trade-in allowance made in acquiring
    24  such article; (iv) refunds, credits or allowances given to a
    25  purchaser on account of defects in goods sold or merchandise
    26  returned; (v) Pennsylvania sales tax; (vi) based on the value of
    27  exchanges or transfers between one seller and another seller who
    28  transfers property with the understanding that property of an
    29  identical description will be returned at a subsequent date;
    30  however, when sellers engaged in similar lines of business
    20070S0218B0981                 - 14 -     

     1  exchange property and one of them makes payment to the other in
     2  addition to the property exchanged, the additional payment
     3  received may be included in the gross receipts of the seller
     4  receiving such additional cash payments; (vii) of sellers from
     5  sales to other sellers in the same line where the seller
     6  transfers the title or possession at the same price for which
     7  the seller acquired the merchandise; or (viii) transfers between
     8  one department, branch or division of a corporation or other
     9  business entity of goods, wares and merchandise to another
    10  department, branch or division of the same corporation or
    11  business entity and which are recorded on the books to reflect
    12  such interdepartmental transactions.
    13     (13)  To levy, assess or collect an amusement or admissions
    14  tax on membership, membership dues, fees or assessments,
    15  donations, contributions or monetary charges of any character
    16  whatsoever paid by the general public, or a limited or selected
    17  number thereof, for such persons to enter into any place,
    18  indoors or outdoors, to engage in any activities, the
    19  predominant purpose or nature of which is exercise, fitness,
    20  health maintenance, improvement or rehabilitation, health or
    21  nutrition education, or weight control.
    22     (14)  Except by cities of the second class, to levy, assess
    23  or collect a tax on payroll amounts generated as a result of
    24  business activity.
    25     (15)  Except by cities of the second class in which a sports
    26  stadium or arena that has received public funds in connection
    27  with its construction or maintenance is located, to levy, assess
    28  and collect a publicly funded facility usage fee upon those
    29  nonresident individuals who use such facility to engage in an
    30  athletic event or otherwise render a performance for which they
    20070S0218B0981                 - 15 -     

     1  receive remuneration.
     2     (16)  To levy, assess or collect an amusement or admissions
     3  tax on the charge imposed upon a patron for the sale of
     4  admission to or for the privilege of admission to a bowling
     5  alley or bowling lane to engage in one or more games of bowling.
     6     Section 2.  Section 7 of the act, amended August 11, 1967
     7  (P.L.228, No.83) and October 9, 1967 (P.L.361, No.160), is
     8  amended to read:
     9     Section 7.  Filing of Certified Copies of Ordinances and
    10  Resolutions.--When an ordinance or a resolution is first passed
    11  or adopted by a political subdivision imposing a tax or license
    12  fee under the authority of this act, an exact printed or
    13  typewritten copy thereof, certified to by the secretary of the
    14  taxing body, shall be filed with the [Department of Community
    15  Affairs] Department of Community and Economic Development within
    16  fifteen days after the same becomes effective.
    17     Any secretary or person acting as the clerk or secretary of
    18  the taxing body of any political subdivision during the meeting
    19  at which an ordinance or resolution imposing a tax or license
    20  fee is passed or adopted as herein provided who shall fail to
    21  file the certified copy or statement relative thereto with the
    22  [Department of Community Affairs] Department of Community and
    23  Economic Development as herein required, shall, upon summary
    24  conviction thereof in the county in which the political
    25  subdivision is located, be sentenced to pay a fine of not less
    26  than five dollars ($5) nor more than twenty-five dollars ($25),
    27  and the costs of prosecution.
    28     Section 3.  Section 8 of the act, amended December 1, 2004
    29  (P.L.1729, No.222), is amended to read:
    30     Section 8.  Limitations on Rates of Specific Taxes.--No taxes
    20070S0218B0981                 - 16 -     

     1  levied under the provisions of this act shall be levied by any
     2  political subdivision on the following subjects exceeding the
     3  rates specified in this section:
     4     (1)  Per capita, poll or other similar head taxes, ten
     5  dollars ($10).
     6     (2)  On each dollar of the whole volume of business
     7  transacted by wholesale dealers in goods, wares and merchandise,
     8  one mill, by retail dealers in goods, wares and merchandise and
     9  by proprietors of restaurants or other places where food, drink
    10  and refreshments are served, one and one-half mills; except in
    11  cities of the second class, where rates shall not exceed one
    12  mill on wholesale dealers and two mills on retail dealers and
    13  proprietors. No such tax shall be levied on the dollar volume of
    14  business transacted by wholesale and retail dealers derived from
    15  the resale of goods, wares and merchandise, taken by any dealer
    16  as a trade-in or as part payment for other goods, wares and
    17  merchandise, except to the extent that the resale price exceeds
    18  the trade-in allowance.
    19     (3)  On wages, salaries, commissions and other earned income
    20  of individuals, one percent.
    21     (4)  On retail sales involving the transfer of title or
    22  possession of tangible personal property, two percent.
    23     (5)  On the transfer of real property, one percent.
    24     (6)  On admissions to places of amusement, athletic events
    25  and the like, and on motion picture theatres in cities of the
    26  second class, ten percent.
    27     (7)  Flat rate occupation taxes not using a millage or
    28  percentage as a basis, ten dollars ($10).
    29     (8)  [Emergency and municipal] Local services taxes, fifty-
    30  two dollars ($52).
    20070S0218B0981                 - 17 -     

     1     (9)  On admissions to ski facilities, ten percent. The tax
     2  base upon which the tax shall be levied shall not exceed forty
     3  percent of the cost of the lift ticket. The lift ticket shall
     4  include all costs of admissions to the ski facility.
     5     (10)  On admissions to golf courses, ten percent. The tax
     6  base upon which the tax shall be levied shall not exceed forty
     7  percent of the greens fee. The greens fee shall include all
     8  costs of admissions to the golf course.
     9     (12)  On payrolls, fifty-five hundredths percent.
    10     Except as otherwise provided in this act, at any time two
    11  political subdivisions shall impose any one of the above taxes
    12  on the same person, subject, business, transaction or privilege,
    13  located within both such political subdivisions, during the same
    14  year or part of the same year, under the authority of this act
    15  then the tax levied by a political subdivision under the
    16  authority of this act shall, during the time such duplication of
    17  the tax exists, except as hereinafter otherwise provided, be
    18  one-half of the rate, as above limited, and such one-half rate
    19  shall become effective by virtue of the requirements of this act
    20  from the day such duplication becomes effective without any
    21  action on the part of the political subdivision imposing the tax
    22  under the authority of this act. When any one of the above taxes
    23  has been levied under the provisions of this act by one
    24  political subdivision and a subsequent levy is made either for
    25  the first time or is revived after a lapse of time by another
    26  political subdivision on the same person, subject, business,
    27  transaction or privilege at a rate that would make the combined
    28  levies exceed the limit allowed by this subdivision, the tax of
    29  the second political subdivision shall not become effective
    30  until the end of the fiscal year for which the prior tax was
    20070S0218B0981                 - 18 -     

     1  levied, unless:
     2     (1)  Notice indicating its intention to make such levy is
     3  given to the first taxing body by the second taxing body as
     4  follows: (i) when the notice is given to a school district it
     5  shall be given at least forty-five days prior to the last day
     6  fixed by law for the levy of its school taxes; (ii) when given
     7  to any other political subdivision it shall be prior to the
     8  first day of January immediately preceding, or if a last day for
     9  the adoption of the budget is fixed by law, at least forty-five
    10  days prior to such last day; or
    11     (2)  Unless the first taxing body shall indicate by
    12  appropriate resolution its desire to waive notice requirements
    13  in which case the levy of the second taxing body shall become
    14  effective on such date as may be agreed upon by the two taxing
    15  bodies.
    16     It is the intent and purpose of this provision to limit rates
    17  of taxes referred to in this section so that the entire burden
    18  of one tax on a person, subject, business, transaction or
    19  privilege shall not exceed the limitations prescribed in this
    20  section: Provided, however, That any two political subdivisions
    21  which impose any one of the above taxes, on the same person,
    22  subject, business, transaction or privilege during the same year
    23  or part of the same year may agree among themselves that,
    24  instead of limiting their respective rates to one-half of the
    25  maximum rate herein provided, they will impose respectively
    26  different rates, the total of which shall not exceed the maximum
    27  rate as above permitted.
    28     Notwithstanding the provisions of this section, any city of
    29  the second class A may enact a tax upon wages, salaries,
    30  commissions and other earned income of individuals resident
    20070S0218B0981                 - 19 -     

     1  therein, not exceeding one percent, even though a school
     2  district levies a similar tax on the same person provided that
     3  the aggregate of both taxes does not exceed two percent. [In the
     4  case of duplication of emergency and municipal services taxes by
     5  both a school district, other than a school district of the
     6  first class A, and another taxing body, the school district's
     7  share of the tax shall not exceed the amount of a tax on the
     8  privilege of engaging in an occupation collected by the school
     9  district as of the effective date of this paragraph. In the case
    10  where a school district did not levy a tax on the privilege of
    11  engaging in an occupation on the effective date of this
    12  paragraph, the school district may impose a future levy not to
    13  exceed five dollars ($5). A school district of the first class A
    14  shall not levy, assess or collect an emergency and municipal
    15  services tax.]
    16     Section 4.  Section 9 of the act, amended December 12, 1968
    17  (P.L.1203, No.377), is amended to read:
    18     Section 9.  Register for Earned Income and [Occupational
    19  Privilege] Local Services Taxes.--It shall be the duty of the
    20  [Department of Community Affairs] Department of Community and
    21  Economic Development to have available an official continuing
    22  register supplemented annually of all earned income and
    23  [occupational privilege] local services taxes levied under
    24  authority of this act. The register and its supplements,
    25  hereinafter referred to as the register, shall list such
    26  jurisdictions levying earned income [and/or occupational
    27  privilege] and local services taxes, the rate of the tax as
    28  stated in the tax levying ordinance or resolution, and the
    29  effective rate on resident and nonresident taxpayers, if
    30  different from the stated rate because of a coterminous levy,
    20070S0218B0981                 - 20 -     

     1  the name and address of the officer responsible for
     2  administering the collection of the tax and from whom
     3  information, forms for reporting and copies of rules and
     4  regulations are available. With each jurisdiction listed, all
     5  jurisdictions making coterminous levies shall also be noted and
     6  their tax rates shown.
     7     Information for the register shall be furnished by the
     8  secretary of each taxing body to the [Department of Community
     9  Affairs] Department of Community and Economic Development in
    10  such manner and on such forms as the [Department of Community
    11  Affairs] Department of Community and Economic Development may
    12  prescribe. The information must be received by the [Department
    13  of Community Affairs] Department of Community and Economic
    14  Development by certified mail not later than May 31 of each year
    15  to show new tax enactments, repeals and changes. Failure to
    16  comply with this date for filing may result in the omission of
    17  the levy from the register for that year. Failure of the
    18  [Department of Community Affairs] Department of Community and
    19  Economic Development to receive information of taxes continued
    20  without change may be construed by the department to mean that
    21  the information contained in the previous register remains in
    22  force.
    23     The [Department of Community Affairs] Department of Community
    24  and Economic Development shall have the register with such
    25  annual supplements as may be required by new tax enactments,
    26  repeals or changes available upon request not later than July 1
    27  of each year. The effective period for each register shall be
    28  from July 1 of the year in which it is issued to June 30 of the
    29  following year.
    30     Employers shall not be required by any local ordinance to
    20070S0218B0981                 - 21 -     

     1  withhold from the wages, salaries, commissions or other
     2  compensation of their employes any tax imposed under the
     3  provisions of this act, which is not listed in the register, or
     4  make reports of wages, salaries, commissions or other
     5  compensation in connection with taxes not so listed: Provided,
     6  That if the register is not available by July 1, the register of
     7  the previous year shall continue temporarily in effect for an
     8  additional period not to exceed one year. The provisions of this
     9  section shall not affect the liability of any taxpayer for taxes
    10  lawfully imposed under this act.
    11     Ordinances or resolutions imposing earned income or
    12  [occupational privilege] local services taxes under authority of
    13  this act may contain provisions requiring employers doing
    14  business within the jurisdiction of the political subdivision
    15  imposing the tax to withhold the tax from the compensation of
    16  those of their employes who are subject to the tax: Provided,
    17  That no employer shall be held liable for failure to withhold
    18  earned income taxes or for the payment of such withheld tax
    19  money to a political subdivision other than the political
    20  subdivision entitled to receive such money if such failure to
    21  withhold or such incorrect transmittal of withheld taxes arises
    22  from incorrect information as to the employe's place of
    23  residence submitted by the employe: And provided further, That
    24  [employers shall not be required by any local ordinance to
    25  withhold from compensation for any one of their employes for the
    26  occupational privilege tax more than one time in any fiscal
    27  period:] no employer shall be held liable for failure to
    28  withhold the local services tax or for the payment of the
    29  withheld tax money to a political subdivision if the failure to
    30  withhold taxes arises from incorrect information submitted by
    20070S0218B0981                 - 22 -     

     1  the employe as to the employe's place or places of employment,
     2  the employe's principal office or where the employe is
     3  principally employed: And provided further, That an employer
     4  shall not be liable for payment of the local services tax in an
     5  amount exceeding the amount withheld by the employer if the
     6  employer complies with the provisions of section 2(9) of this
     7  act and remits the amount so withheld in accordance with this
     8  section: And provided further, That the [occupational privilege]
     9  local services tax shall be applicable to employment in the
    10  period beginning January 1, of the current year and ending
    11  December 31 of the current year, except that taxes imposed for
    12  the first time shall become effective from [the date] January 1
    13  of the year specified in the ordinance or resolution, and the
    14  tax shall continue in force on a calendar year basis[.]: And
    15  provided further, That employers shall be required to remit the
    16  local services taxes within thirty days after the end of each     <--
    17  quarter of a calendar year.
    18     Section 5.  Section 19 of the act, amended October 4, 1978
    19  (P.L.930, No.177), is amended to read:
    20     Section 19.  Collection of Delinquent Per Capita, Occupation,
    21  Occupational Privilege, Emergency and Municipal Services, Local
    22  Services and Earned Income Taxes from Employers, etc.--The tax
    23  collector shall demand, receive and collect from all
    24  corporations, political subdivisions, associations, companies,
    25  firms or individuals, employing persons owing delinquent per
    26  capita, or occupation, occupational privilege, emergency and
    27  municipal services, local services and earned income taxes, or
    28  whose spouse owes delinquent per capita, occupation,
    29  occupational privilege, emergency and municipal services, local
    30  services and earned income taxes, or having in possession unpaid
    20070S0218B0981                 - 23 -     

     1  commissions or earnings belonging to any person or persons owing
     2  delinquent per capita, occupation, occupational privilege,
     3  emergency and municipal services, local services and earned
     4  income taxes, or whose spouse owes delinquent per capita,
     5  occupation, occupational privilege, emergency and municipal
     6  services, local services and earned income taxes, upon the
     7  presentation of a written notice and demand certifying that the
     8  information contained therein is true and correct and containing
     9  the name of the taxable or the spouse thereof and the amount of
    10  tax due. Upon the presentation of such written notice and
    11  demand, it shall be the duty of any such corporation, political
    12  subdivision, association, company, firm or individual to deduct
    13  from the wages, commissions or earnings of such individual
    14  employes, then owing or that shall within sixty days thereafter
    15  become due, or from any unpaid commissions or earnings of any
    16  such taxable in its or his possession, or that shall within
    17  sixty days thereafter come into its or his possession, a sum
    18  sufficient to pay the respective amount of the delinquent per
    19  capita, occupation, occupational privilege, emergency and
    20  municipal services, local services and earned income taxes and
    21  costs, shown upon the written notice or demand, and to pay the
    22  same to the tax collector of the taxing district in which such
    23  delinquent tax was levied within sixty days after such notice
    24  shall have been given. No more than ten percent of the wages,
    25  commissions or earnings of the delinquent taxpayer or spouse
    26  thereof may be deducted at any one time for delinquent per
    27  capita, occupation, occupational privilege, emergency and
    28  municipal services, local services and earned income taxes and
    29  costs. Such corporation, political subdivision, association,
    30  firm or individual shall be entitled to deduct from the moneys
    20070S0218B0981                 - 24 -     

     1  collected from each employe the costs incurred from the extra
     2  bookkeeping necessary to record such transactions, not exceeding
     3  two percent of the amount of money so collected and paid over to
     4  the tax collector. Upon the failure of any such corporation,
     5  political subdivision, association, company, firm or individual
     6  to deduct the amount of such taxes or to pay the same over to
     7  the tax collector, less the cost of bookkeeping involved in such
     8  transaction, as herein provided, within the time hereby
     9  required, such corporation, political subdivision, association,
    10  company, firm or individual shall forfeit and pay the amount of
    11  such tax for each such taxable whose taxes are not withheld and
    12  paid over, or that are withheld and not paid over together with
    13  a penalty of ten percent added thereto, to be recovered by an
    14  action of assumpsit in a suit to be instituted by the tax
    15  collector, or by the proper authorities of the taxing district,
    16  as debts of like amount are now by law recoverable, except that
    17  such person shall not have the benefit of any stay of execution
    18  or exemption law. The tax collector shall not proceed against a
    19  spouse or his employer until he has pursued collection remedies
    20  against the delinquent taxpayer and his employer under this
    21  section.
    22     Section 6.  Section 20 of the act is amended to read:
    23     Section 20.  Collection of Delinquent Per Capita, Occupation,
    24  Occupational Privilege, Emergency and Municipal Services, Local
    25  Services and Earned Income Taxes from the Commonwealth.--Upon
    26  presentation of a written notice and demand under oath or
    27  affirmation, to the State Treasurer or any other fiscal officer
    28  of the State, or its boards, authorities, agencies or
    29  commissions, it shall be the duty of the treasurer or officer to
    30  deduct from the wages then owing, or that shall within sixty
    20070S0218B0981                 - 25 -     

     1  days thereafter become due to any employe, a sum sufficient to
     2  pay the respective amount of the delinquent per capita,
     3  occupation, occupational privilege, emergency and municipal
     4  services, local services and earned income taxes and costs shown
     5  on the written notice. The same shall be paid to the tax
     6  collector of the taxing district in which said delinquent tax
     7  was levied within sixty days after such notice shall have been
     8  given.
     9     Section 7.  Section 22.1 of the act, added November 30, 2004
    10  (P.L.1520, No.192), is amended to read:
    11     Section 22.1.  Costs of Collection of Delinquent Per Capita,
    12  Occupation, Occupational Privilege, Emergency and Municipal
    13  Services, Local Services and Earned Income Taxes.--(a) A person,
    14  public employe or private agency designated by a governing body
    15  of a political subdivision to collect and administer a per
    16  capita, occupation, occupational privilege, emergency and
    17  municipal services, local services or earned income tax may
    18  impose and collect the reasonable costs incurred to provide
    19  notices of delinquency or to implement similar procedures
    20  utilized to collect delinquent taxes from a taxpayer as approved
    21  by the governing body of the political subdivision. Reasonable
    22  costs collected may be retained by the person, public employe or
    23  private agency designated to collect the tax as agreed to by the
    24  governing body of the political subdivision. An itemized
    25  accounting of all costs collected shall be remitted to the
    26  political subdivision on an annual basis.
    27     (b)  Costs related to the collection of unpaid per capita,
    28  occupation [or], occupational privilege, emergency and municipal
    29  services or local services taxes may only be assessed, levied
    30  and collected for five years from the last day of the calendar
    20070S0218B0981                 - 26 -     

     1  year in which the tax was due.
     2     (c)  A delinquent taxpayer may not bring an action for
     3  reimbursement, refund or elimination of reasonable costs of
     4  collection assessed or imposed prior to the effective date of
     5  this section. Additional costs may not be assessed on delinquent
     6  taxes collected prior to the effective date of this section.
     7     Section 8.  Sections 22.4 and 22.5 of the act, added December
     8  1, 2004 (P.L.1729, No.222), are repealed:
     9     [Section 22.4.  Emergency and Municipal Services Taxes.--Any
    10  reference in any act or law to an occupational privilege tax
    11  shall mean the emergency and municipal services taxes as
    12  provided for in this act.
    13     Section 22.5.  Restricted Use.--(a)  Any municipality
    14  deriving funds from the emergency and municipal services tax may
    15  only use the funds for:
    16     (1)  police, fire and/or emergency services;
    17     (2)  road construction and/or maintenance; or
    18     (3)  reduction of property taxes.
    19     (b)  For the purpose of the emergency and municipal services
    20  tax, the term municipality does not include a school district.]
    21     Section 9.  The act is amended by adding a section to read:
    22     Section 22.6.  Restricted Use.--(a)  Any municipality
    23  deriving funds from the local services tax may only use the
    24  funds for:
    25     (1)  Emergency services, which shall include emergency
    26  medical services, police services and/or fire services.
    27     (2)  Road construction and/or maintenance.
    28     (3)  Reduction of property taxes.
    29     (4)  Property tax relief through implementation of a
    30  homestead and farmstead exclusion in accordance with 53 Pa.C.S.
    20070S0218B0981                 - 27 -     

     1  Ch. 85 Subch. F (relating to homestead property exclusion).
     2     (A.1)  A MUNICIPALITY SHALL USE NO LESS THAN TWENTY-FIVE       <--
     3  PERCENT OF THE FUNDS DERIVED FROM THE LOCAL SERVICES TAX FOR
     4  EMERGENCY SERVICES.
     5     (b)  In the event that a municipality decides to implement a
     6  homestead and farmstead exclusion for purposes of providing
     7  property tax relief in accordance with subsection (a)(4), the
     8  following shall apply:
     9     (1)  The decision to provide a homestead and farmstead
    10  exclusion shall be made, by ordinance, prior to December 1, with
    11  the homestead and farmstead exclusion to take effect for the
    12  fiscal year beginning the first day of January following
    13  adoption of the ordinance. Upon adopting an ordinance in
    14  accordance with this paragraph, a municipality shall, by first
    15  class mail, notify the assessor, as defined in 53 Pa.C.S. § 8582
    16  (relating to definitions), of its decision to provide a
    17  homestead and farmstead exclusion.
    18     (2)  The assessor shall provide a municipality that will be
    19  imposing a homestead and farmstead exclusion in accordance with
    20  subsection (a)(4) with a certified report, as provided in 53
    21  Pa.C.S. § 8584(i) (relating to administration and procedure),
    22  listing information regarding homestead and farmstead properties
    23  in the municipality as determined pursuant to applications filed
    24  with the assessor in connection with this or any other law under
    25  which a homestead or farmstead exclusion has been adopted. In
    26  the year in which an ordinance is adopted in accordance with
    27  paragraph (1), the assessor shall provide the certified report
    28  after being notified by the municipality of its decision to
    29  provide a homestead and farmstead exclusion. In each succeeding
    30  year, the assessor shall provide the certified report by
    20070S0218B0981                 - 28 -     

     1  December 1 or at the same time the tax duplicate is certified to
     2  the municipality, whichever occurs first. Any duty placed on an
     3  assessor in accordance with this paragraph shall be in addition
     4  to those established in 53 Pa.C.S. Ch. 85 Subch. F and the act
     5  of June 27, 2006 (Sp.Sess. P.L. , No.1), known as the "Taxpayer
     6  Relief Act."
     7     (3)  Only homestead or farmstead properties identified in the
     8  certified report of the assessor obtained in any year shall be
     9  eligible to receive the exclusion for the next fiscal year.
    10     (4)  In the year in which a municipality adopts the ordinance
    11  evidencing its decision to implement a homestead and farmstead
    12  exclusion, the municipality shall notify by first class mail the
    13  owner of each parcel of residential property within the
    14  municipality which is not approved as a homestead or farmstead
    15  property or for which the approval is due to expire of the
    16  following:
    17     (i)  That the homestead and farmstead exclusion program is to
    18  be implemented to provide property tax relief as authorized by
    19  subsection (a)(4), beginning in the next fiscal year.
    20     (ii)  That only properties currently identified in the
    21  certified report of the assessor as having been approved in
    22  whole or in part as homestead or farmstead properties shall be
    23  entitled to an exclusion in the next fiscal year.
    24     (iii)  That owners of properties that have not been approved
    25  by the assessor as homestead or farmstead properties may file an
    26  application in accordance with 53 Pa.C.S. § 8584(a) by the
    27  annual application deadline of March 1 in order to qualify for
    28  the program in the year following the next fiscal year.
    29     (5)  The one-time notice required by paragraph (4) may be
    30  combined and made together with the annual notice required by
    20070S0218B0981                 - 29 -     

     1  paragraph (7) or with an annual notice by a coterminous
     2  political subdivision that has implemented a homestead and
     3  farmstead exclusion.
     4     (6)  In the year in which the initial decision to provide a
     5  homestead and farmstead exclusion is made and in each succeeding
     6  year, a municipality shall, by resolution, fix the dollar amount
     7  that is to be excluded from the assessed value of each homestead
     8  and farmstead property for the next fiscal year, consistent with
     9  53 Pa.C.S. §§ 8583 (relating to exclusion for homestead
    10  property) and 8586 (relating to limitations). This determination
    11  of the amount of the homestead and farmstead exclusion shall be
    12  made, after receipt of the tax duplicate and the certified
    13  report from the assessor, at the time the governing body of a
    14  municipality determines the municipal budget and estimates
    15  revenues to be derived from the local services tax for the next
    16  fiscal year.
    17     (7)  Each year after the year in which the municipality
    18  implements a homestead and farmstead exclusion and no later than
    19  sixty days prior to the application deadline, the municipality
    20  shall give notice of the existence of the municipality's
    21  homestead and farmstead exclusion program, the need to file an
    22  application in accordance with 53 Pa.C.S. § 8584(a) in order to
    23  qualify for the program and the application deadline, which, in
    24  accordance with 53 Pa.C.S. § 8584(b), shall be March 1. This
    25  annual notice, which shall be given by first class mail, need
    26  only be sent to the owner of each parcel of residential property
    27  in the municipality which is not approved as homestead or
    28  farmstead property or for which the approval is due to expire.
    29     (c)  For purposes of this section, the term "municipality"
    30  does not include a school district.
    20070S0218B0981                 - 30 -     

     1     Section 10.  Any ordinance or resolution providing for the
     2  levying, assessment or collection of a tax on individuals for
     3  the privilege of engaging in an occupation which has been
     4  enacted by a political subdivision prior to December 1, 2004,
     5  shall continue in full force and effect, without reenactment, as
     6  if such tax had been levied, assessed or collected as a local
     7  services tax under section 2(9) of the act. All references in
     8  any ordinance or resolution to a tax on the privilege of
     9  engaging in an occupation shall be deemed to be a reference to a
    10  local services tax for the purposes of the act.
    11     Section 11.  All emergency and municipal services taxes
    12  levied for the calendar year beginning on January 1, 2007, shall
    13  remain in effect for the calendar year beginning on January 1,
    14  2007, and ending December 31, 2007, and are not otherwise
    15  altered.
    16     Section 12.  The following shall apply:
    17         (1)  Except as provided in paragraph (2), the amendment
    18     or addition of the following provisions shall apply to taxes
    19     levied for calendar year 2008 and each year thereafter:
    20             (i)  The amendment of section 2 of the act.
    21             (ii)  The amendment of section 8 of the act.
    22             (iii)  The amendment of section 9 of the act, except
    23         for any editorial amendment changing the reference from
    24         the Department of Community Affairs to the Department of
    25         Community and Economic Development.
    26             (iv)  The amendment of section 19 of the act.
    27             (v)  The amendment of section 20 of the act.
    28             (vi)  The amendment of section 22.1 of the act.
    29             (vii)  The amendment of section 22.4 of the act.
    30             (viii)  The amendment of section 22.5 of the act.
    20070S0218B0981                 - 31 -     

     1             (ix)  The addition of section 22.6 of the act.
     2         (2)  The amendment of the introductory paragraph of
     3     section 2 of the act shall not apply, until January 1, 2009,
     4     to a municipality which reduced its real estate property tax
     5     by at least 25% upon adoption of an ordinance pursuant to the
     6     act of December 1, 2004 (P.L.1729, No.222), entitled "An act
     7     amending the act of December 31, 1965 (P.L.1257, No.511),
     8     entitled 'An act empowering cities of the second class,
     9     cities of the second class A, cities of the third class,
    10     boroughs, towns, townships of the first class, townships of
    11     the second class, school districts of the second class,
    12     school districts of the third class and school districts of
    13     the fourth class including independent school districts, to
    14     levy, assess, collect or to provide for the levying,
    15     assessment and collection of certain taxes subject to maximum
    16     limitations for general revenue purposes; authorizing the
    17     establishment of bureaus and the appointment and compensation
    18     of officers, agencies and employes to assess and collect such
    19     taxes; providing for joint collection of certain taxes,
    20     prescribing certain definitions and other provisions for
    21     taxes levied and assessed upon earned income, providing for
    22     annual audits and for collection of delinquent taxes, and
    23     permitting and requiring penalties to be imposed and
    24     enforced, including penalties for disclosure of confidential
    25     information, providing an appeal from the ordinance or
    26     resolution levying such taxes to the court of quarter
    27     sessions and to the Supreme Court and Superior Court,'
    28     further providing for delegation of taxing powers and
    29     restrictions thereon; providing for nonresident sports
    30     facility usage fee, for parking tax rates and for payroll
    20070S0218B0981                 - 32 -     

     1     taxes; further providing for limitations on rates of specific
     2     taxes and for the appointment of a single collector of taxes;
     3     further providing for the applicability of petitions under
     4     the act of July 10, 1987 (P.L.246, No.47), known as the
     5     Municipalities Financial Recovery Act; and making a repeal."
     6     Section 13.  Repeals are as follows:
     7         (1)  The General Assembly declares that the repeal under
     8     paragraph (2) is necessary to effectuate the amendment of
     9     section 2(9) of the act.
    10         (2)  Section 6 of the act of December 1, 2004 (P.L.1729,
    11     No.222), entitled "An act amending the act of December 31,
    12     1965 (P.L.1257, No.511), entitled 'An act empowering cities
    13     of the second class, cities of the second class A, cities of
    14     the third class, boroughs, towns, townships of the first
    15     class, townships of the second class, school districts of the
    16     second class, school districts of the third class and school
    17     districts of the fourth class including independent school
    18     districts, to levy, assess, collect or to provide for the
    19     levying, assessment and collection of certain taxes subject
    20     to maximum limitations for general revenue purposes;
    21     authorizing the establishment of bureaus and the appointment
    22     and compensation of officers, agencies and employes to assess
    23     and collect such taxes; providing for joint collection of
    24     certain taxes, prescribing certain definitions and other
    25     provisions for taxes levied and assessed upon earned income,
    26     providing for annual audits and for collection of delinquent
    27     taxes, and permitting and requiring penalties to be imposed
    28     and enforced, including penalties for disclosure of
    29     confidential information, providing an appeal from the
    30     ordinance or resolution levying such taxes to the court of
    20070S0218B0981                 - 33 -     

     1     quarter sessions and to the Supreme Court and Superior
     2     Court,' further providing for delegation of taxing powers and
     3     restrictions thereon; providing for nonresident sports
     4     facility usage fee, for parking tax rates and for payroll
     5     taxes; further providing for limitations on rates of specific
     6     taxes and for the appointment of a single collector of taxes;
     7     further providing for the applicability of petitions under
     8     the act of July 10, 1987 (P.L.246, No.47), known as the
     9     Municipalities Financial Recovery Act; and making a repeal,"
    10     is repealed.
    11     Section 14.  This act shall take effect immediately.













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