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PRINTER'S NO. 415
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
403
Session of
2017
INTRODUCED BY GROVE, KAUFFMAN, RAPP, O'NEILL, SANKEY, BARRAR AND
HELM, FEBRUARY 8, 2017
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 8, 2017
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in other subjects of taxation,
repealing provisions regarding local option cigarette tax in
school districts of the first class.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 8722 of Title 53 of the Pennsylvania
Consolidated Statutes is repealed:
[§ 8722. Local option cigarette tax in school districts of the
first class.
(a) Authorization.--The following shall apply:
(1) A school district may, if authorized by ordinance of
the governing body of a city of the first class adopted prior
to or after the effective date of this section, impose and
assess an excise tax upon the sale or possession of
cigarettes within the school district at a rate of 10¢ per
cigarette. Only one sale shall be taxable and used in
computing the amount of tax due, whether the sale is of
individual cigarettes, packages, cartons or cases.
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(2) The governing body of the city of the first class
and school district may amend, respectively, the ordinance
authorizing the imposition of the tax and the resolution
imposing the tax authorized by this section to reflect the
provisions of this section in the fiscal year in which this
section takes effect.
(b) Exception.--The tax authorized under subsection (a) may
not be levied upon the possession or sale of any cigarette that
is exempt from, or which is otherwise not subject to, levy under
Article XII of the Tax Reform Code and the regulations
promulgated under that article.
(c) Collection.--
(1) The tax authorized under subsection (a) shall be
collected and remitted to the department in the same manner
as the tax imposed under Article XII of the Tax Reform Code.
The regulations promulgated under section 1291 of the Tax
Reform Code shall be applicable to the tax authorized under
subsection (a) insofar as the regulations are consistent with
this section.
(2) Unless the department promulgates regulations to the
contrary under subsection (d), any stamp affixed under
section 1215 of the Tax Reform Code shall also reflect
payment of any tax authorized under this section.
(3) The provisions of section 1216 of the Tax Reform
Code shall not apply to any tax authorized under this
section.
(d) Administration.--The department shall administer and
enforce the provisions of this section and may promulgate and
enforce any rules and regulations not inconsistent with the
provisions of this section.
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(e) Reimbursement of costs.--From the tax collected under
this section, the department may retain a sum of the costs of
collection and shall, on a monthly basis, notify in writing the
school district imposing the tax of the sum retained and the
costs of collection under this section. Annually, the department
shall estimate its cost of collection under this section for the
next succeeding fiscal year and shall provide the estimate to
the school district.
(f) Certified copy of resolution to department.--A school
district that adopts a resolution:
(1) To impose the tax authorized under this section or
to change the rate of the tax shall provide a certified copy
of the resolution to the department not later than 20 days
prior to the effective date of the tax or change to the tax.
(2) To repeal the tax authorized under this section
shall provide a certified copy of the resolution to the
department not later than 30 days prior to the effective date
of the repeal.
(g) Effective date.--The effective date of any tax
authorized under this section or change to the tax shall be no
earlier than 30 days after the adoption of the resolution or
ordinance.
(h) Local Cigarette Tax Fund.--
(1) The Local Cigarette Tax Fund is established in the
State Treasury and the State Treasurer shall be custodian of
the fund. The fund shall be subject to the provisions of law
applicable to funds listed in section 302 of the act of April
9, 1929 (P.L.343, No.176), known as The Fiscal Code.
(2) The tax imposed under subsection (a) shall be
received by the department and paid to the State Treasurer
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and, along with interest and penalties, less any collection
costs allowed under this section and any refunds and credits
paid, shall be credited to the fund not less frequently than
every two weeks. During any period prior to the credit of
moneys to the fund, interest earned on moneys received by the
department and paid to the State Treasurer under this section
shall be deposited into the fund.
(3) Moneys credited to the fund shall be property of the
school district and shall be distributed as provided in this
section. The money in the fund, including, but not limited
to, money credited to the fund under this section, prior year
encumbrances and the interest earned thereon, shall not lapse
or be transferred to any other fund, but shall remain in the
fund and must be used exclusively as provided in this
section.
(4) Pending their disbursement to the school district,
moneys received on behalf of or deposited into the fund shall
be invested or reinvested as are other funds in the custody
of the State Treasurer in the manner provided by law. The
earnings received from the investment or deposit of the funds
shall be credited to the fund.
(i) Disbursement to school district.--On or before the 10th
day of every month, the State Treasurer shall disburse to the
school district imposing the tax under this section the total
amount of moneys which are, as of the last day of the previous
month, contained in the fund.
(j) Prohibition.--Money from a tax imposed under this
section may not be used for the issuance or repayment of bonds.
(l) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
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subsection unless the context clearly indicates otherwise:
"Cigarette." As defined in section 1201 of the Tax Reform
Code.
"Department." The Department of Revenue of the Commonwealth.
"Fund." The Local Cigarette Tax Fund established under this
section.
"Sale." As defined in section 1201 of the Tax Reform Code.
"School district." A school district of the first class
coterminous with a city of the first class.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.]
Section 2. This act shall take effect in 60 days.
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