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

23The General Assembly of the Commonwealth of Pennsylvania
24hereby enacts as follows:

25Section 1. Section 311(2) of the act of December 31, 1965
26(P.L.1257, No.511), known as The Local Tax Enabling Act, amended
27October 15, 2008 (P.L.1615, No.130), is amended to read:

28Section 311. Limitations on Rates of Specific Taxes.--No

1taxes levied under the provisions of this chapter shall be
2levied by any political subdivision on the following subjects
3exceeding the rates specified in this section:

4* * *

5(2) On each dollar of the whole volume of business
6transacted by wholesale dealers in goods, wares and merchandise,
7one mill, by retail dealers in goods, wares and merchandise and
8by proprietors of restaurants or other places where food, drink
9and refreshments are served, one and one-half mills; except in
10cities of the second class, where rates shall not exceed one
11mill on wholesale dealers and two mills on retail dealers and
12proprietors. No such tax shall be levied on the dollar volume of
13business transacted by wholesale and retail dealers derived from
14the resale of goods, wares and merchandise, taken by any dealer
15as a trade-in or as part payment for other goods, wares and
16merchandise, except to the extent that the resale price exceeds
17the trade-in allowance. When a political subdivision which
18currently levies, assesses or collects a mercantile or business
19privilege tax on gross receipts under section 533 of the act of
20December 13, 1988 (P.L.1121, No.145), known as the "Local Tax
21Reform Act," merges with one or more political subdivisions to
22form a new political subdivision on or after August 1, 2008, the
23new political subdivision may levy that mercantile or business
24privilege tax[, but not at a rate greater than the] in the first 
25year following the merger at a rate necessary to generate the
26same revenues generated in the last fiscal year that the merging
27political subdivision generated before the merger. Such rate 
28shall remain in effect for the new political subdivision in 
29subsequent years but the revenue neutral limitation shall only 
30apply to the first year following the merger. If the merging

1political subdivision had previously shared the rate of taxation
2with another political subdivision, the nonmerging political
3subdivision which had shared the rate is capped at the rate it
4was previously levying.

5* * *

6Section 2. This act shall take effect immediately.