THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY STURLA, CALTAGIRONE, COHEN, DALEY, HARKINS, JOSEPHS, MURPHY AND M. SMITH, JUNE 2, 2011

REFERRED TO COMMITTEE ON FINANCE, JUNE 2, 2011  

AN ACT

Providing for the dedicated funding of higher education; and

establishing the Higher Education Fund.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Higher

Education Funding Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department."  The Department of Revenue of the Commonwealth.

"Fund."  The Higher Education Fund established in section 5.

"State-related institution."  The Pennsylvania State

University, the University of Pittsburgh, Lincoln University or

Temple University.

"Tax Reform Code."  The act of March 2, 1971 (P.L.6, No.2),

known as the Tax Reform Code of 1971.

Section 3.  Sales and use surtax.

A surtax of 1% shall be imposed on the purchase price of

property and services subject to taxation under Article II of

the Tax Reform Code. The surtax shall be in addition to the tax

imposed under Article II of the Tax Reform Code.

Section 4.  Computation of sales and use tax and sales and use

surtax.

(a)  Schedule establishment.--Within 30 days of the effective

date of this section, the department shall establish a schedule

for the computation of the State sales and use tax under Article

II of the Tax Reform Code and the sales and use surtax as

established under this act.

(b)  Schedule publication.--The department shall publish the

schedule providing for the computation of the sales and use tax

and the State sales and use surtax in the Pennsylvania Bulletin

immediately succeeding the establishment of the schedule.

Section 5.  Higher Education Fund.

(a)  Fund established.--A special fund is established in the

State Treasury to be known as the Higher Education Fund.

Interest income derived from investment of the money in the fund

shall be credited by the Treasury Department to the fund.

(b)  Revenues.--Revenues deposited in the fund may only be

used to fund the member institutions of the State System of

Higher Education, community colleges, State-related institutions

and the Thaddeus Stevens College of Technology.

Section 6.  Transfer to fund.

Within 30 days of the close of any calendar month, the

revenue generated in the previous month from the sales and use

surtax imposed under this act shall be transferred to the fund.

Section 7.  Certification.

(a)  Annual.--By April 15 of each fiscal year, the Secretary

of the Budget shall certify the total amount of revenue that is

reasonably projected to be deposited into the fund for the

period through June 30 of the current fiscal year.

(b)  Excess.--If the actual revenue deposited into the fund

in any one fiscal year exceeds the amount certified in this

section, any revenue in excess of projections may be used in the

current fiscal year or in the certification for the subsequent

fiscal year.

Section 8.  Construction.

The provisions of Article II of the Tax Reform Code shall

apply to the imposition and implementation of the surtax.

Section 20.  Effective date.

This act shall take effect immediately.