PRINTER'S NO. 1648
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1256
Session of
2015
INTRODUCED BY MASSER, GREINER, MURT, COHEN AND GROVE,
MAY 28, 2015
REFERRED TO COMMITTEE ON FINANCE, MAY 28, 2015
AN ACT
Amending the act of December 31, 1965 (P.L.1257, No.511),
entitled "An act empowering cities of the second class,
cities of the second class A, cities of the third class,
boroughs, towns, townships of the first class, townships of
the second class, school districts of the second class,
school districts of the third class and school districts of
the fourth class including independent school districts, to
levy, assess, collect or to provide for the levying,
assessment and collection of certain taxes subject to maximum
limitations for general revenue purposes; authorizing the
establishment of bureaus and the appointment and compensation
of officers, agencies and employes to assess and collect such
taxes; providing for joint collection of certain taxes,
prescribing certain definitions and other provisions for
taxes levied and assessed upon earned income, providing for
annual audits and for collection of delinquent taxes, and
permitting and requiring penalties to be imposed and
enforced, including penalties for disclosure of confidential
information, providing an appeal from the ordinance or
resolution levying such taxes to the court of quarter
sessions and to the Supreme Court and Superior Court," in
optional occupational tax elimination, further providing for
income tax rate limits.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 404 of the act of December 31, 1965
(P.L.1257, No.511), known as The Local Tax Enabling Act, is
amended by adding a subsection to read:
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Section 404. Income tax rate limits.
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(b.2) Calculation of maximum tax rate.--The maximum income
tax rate for a school district that levied an occupation tax for
the fiscal year ending in 2015, or a municipality that levied an
occupation tax for the calendar year ending December 31, 2014,
shall be determined by taking the sum of the rates calculated
under paragraphs (1) and (2) and limited by paragraph (3):
(1) The rate of the income tax that would have resulted
in the collection by the political subdivision of an amount
equal to the amount collected from the occupation tax. The
calculation by a school district under this paragraph shall
be made using actual revenue collections for the fiscal year
ending immediately prior to the year in which the resolution
is adopted under section 406. The calculation by a
municipality under this paragraph shall be made using actual
revenue collections for the calendar year ending immediately
prior to the year in which the resolution is adopted under
section 406.
(2) The rate at which the income tax was collected by a
school district for the fiscal year ending immediately prior
to the year in which the resolution is adopted under section
406 or the rate at which an earned income tax was collected
by a municipality for the calendar year ending immediately
prior to the year in which the resolution is adopted under
section 406.
(3) The tax rate determined under paragraphs (1) and (2)
shall be rounded off to the nearest increment of 0.1%.
The maximum rate of the income tax calculated under this
subsection shall not be subject to the limits on the earned
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income tax specified under section 311(3).
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Section 2. This act shall take effect in 60 days.
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