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PRIOR PRINTER'S NOS. 892, 942
PRINTER'S NO. 1374
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
653
Session of
2017
INTRODUCED BY BROWNE, BOSCOLA, FOLMER, McGARRIGLE, BARTOLOTTA,
SCAVELLO, REGAN, EICHELBERGER, YUDICHAK, WILLIAMS, LAUGHLIN,
MARTIN, WAGNER AND SCHWANK, MAY 24, 2017
SENATOR BROWNE, APPROPRIATIONS, RE-REPORTED AS AMENDED, DECEMBER
11, 2017
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
local taxes, further providing for collection; in
consolidated collection of local income taxes, further
providing for tax collection committees and for powers and
duties of tax officer; in collection of delinquent taxes,
further providing for costs of collection; and making a
related editorial change.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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Section 1. Section 313(a), Chapter 5 heading, section
505(a), (a.1), (b), (c), (j) and (l) and section 509(k) of the
act of December 31, 1965 (P.L.1257, No.511), known as The Local
Tax Enabling Act, are amended to read:
Section 313. Collection of Taxes.--(a) Administrative
Personnel; Joint Agreements.--
(1) Except as provided in section 506 and subject to the
provisions of section 509, any political subdivision is hereby
authorized to provide by ordinance or resolution for the
creation or designation of tax bureaus or the appointment and
compensation of a political subdivision, public employe, tax
bureau or public or private agency for the assessment and
collection of taxes imposed under authority of this chapter.
Each ordinance or resolution under this section authorizing a
political subdivision, public employe, tax bureau or public or
private agency to act in the capacity and with the authority of
a tax collector shall continue in force without annual
reauthorization unless otherwise repealed or revoked by the
political subdivision or unless otherwise provided by this act.
(2) Except as provided in section 506 and subject to the
provisions of section 509, political subdivisions imposing taxes
under authority of this chapter are authorized to make joint
agreements for the collection of such taxes or any of them. The
same political subdivision, tax bureau or public or private
agency may be employed by two or more political subdivisions to
collect any taxes imposed by them under authority of this
chapter.
* * *
CHAPTER 5
CONSOLIDATED COLLECTION OF LOCAL [INCOME] TAXES
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Section 505. Tax collection committees.
(a) General rule.--Subject to the provisions of subsection
(m) and section 509(k), each tax collection district shall be
governed by a tax collection committee constituted and operated
as set forth in this section. Meetings of the tax collection
committee shall be conducted under 65 Pa.C.S. Ch. 7 (relating to
open meetings) and the act of June 21, 1957 (P.L.390, No.212),
referred to as the Right-to-Know Law.
(a.1) Duties.--A tax collection committee has the following
duties:
(1) To keep records of all votes and other actions taken
by the tax collection committee.
(2) To appoint and oversee a tax officer for the tax
collection district as provided in section 507(a).
(3) To set the compensation of the tax officer under
section 507(c).
(4) To require, hold, set and review the tax officer's
bond required by section 509(d).
(5) To establish the manner and extent of financing of
the tax collection committee.
(6) To adopt, amend and repeal bylaws for the management
of its affairs consistent with subsection (f) and regulations
under section 508.
(7) To adopt, amend and repeal policies and procedures
consistent with the regulations under section 508 for the
administration of [income] taxes under section 509 within the
tax collection district. The procedures shall supersede any
contrary resolutions or ordinances adopted by a political
subdivision. This authority shall not be construed to permit
a tax collection committee to change the rate or subject of
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any tax.
* * *
(b) Delegates.--
(1) The governing body of each political subdivision
within a tax collection district that imposed an income tax
prior to July 1, 2009, shall appoint one voting delegate and
one or more alternates to represent the political subdivision
on the tax collection committee by September 15, 2009. The
governing body of each political subdivision that after June
30, 2009, imposes [an income] a tax [for the first time]
under section 509 shall appoint one voting delegate and one
or more alternates to represent the political subdivision on
the tax collection committee. A voting delegate or alternate
shall serve at the pleasure of the governing body of the
political subdivision.
(2) The governing body of each political subdivision
within a tax collection district that prior to July 1, 2009,
does not impose an income tax may appoint one nonvoting
delegate and one or more alternates to represent the
political subdivision on the tax collection committee. If,
after June 30, 2009, the political subdivision imposes [an
income] a tax under section 509, the nonvoting delegate shall
become a voting delegate to represent the political
subdivision on the tax collection committee.
* * *
(c) Voting rights.--
(1) Only a delegate appointed by the governing body of a
political subdivision may represent a political subdivision
at a tax collection committee meeting. If a delegate cannot
be present for a tax collection committee meeting, the
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alternate appointed under this section may represent the
political subdivision. Each delegate or alternate shall be
entitled to vote upon any action authorized or required of
the tax collection committee under this chapter.
(2) For the first meeting of the tax collection
committee, actions of the tax collection committee shall be
determined by a majority vote of those delegates present.
Votes shall be weighted among the governing bodies of the
member political subdivisions according to the following
formula: 50% shall be allocated according to the proportional
population of each political subdivision in proportion to the
population of each tax collection district as determined by
the most recent Federal decennial census data and 50% shall
be weighted in direct proportion to [income] tax revenues
collected in each political subdivision, based on each
political subdivision's most recent annual financial report
submitted to the department or the Department of Education.
For subsequent meetings, votes shall be taken in accordance
with this paragraph unless the bylaws provide otherwise.
(3) No later than September 1, 2009, the department
shall calculate the weighted vote for each political
subdivision within each tax collection district based on the
formula specified in paragraph (2). By July 1 of the year
following the first meeting, and of each year thereafter,
each tax collection committee shall recalculate the weighted
vote unless the bylaws provide for a more frequent
recalculation.
(4) If a political subdivision within the tax collection
district imposes [an income] a tax under section 509 for the
first time, the tax collection committee shall recalculate
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the weighted vote or other method of voting under the bylaws.
* * *
(j) Appeals board.--
(1) By June 1, 2010, each tax collection committee shall
establish an appeals board comprised of a minimum of three
delegates or, in the case of a tax collection committee
established pursuant to subsection (m), a minimum of three
residents of the county.
(2) A determination of the tax officer relating to the
assessment, collection, refund, withholding, remittance or
distribution of [income] taxes may be appealed to the appeals
board by a taxpayer, employer, political subdivision or
another tax collection district.
(3) All appeals, other than those brought under
subsection (k), shall be conducted in a manner consistent
with 53 Pa.C.S. §§ 8431 (relating to petitions), 8432
(relating to practice and procedure), 8433 (relating to
decisions), 8434 (relating to appeals) and 8435 (relating to
equitable and legal principles to apply).
(4) A tax collection committee may enter into an
agreement with another tax collection committee to establish
a joint appeals board.
(5) No member of an appeals board or joint appeals board
may be a tax officer or an employee, agent or attorney for a
tax officer.
(6) An appeals board appointed pursuant to this section
shall constitute a joint local tax appeals board as provided
for in 53 Pa.C.S. § 8430 (relating to administrative appeals)
for purposes of taxes collected under the supervision of the
appointing tax collection committee.
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* * *
(l) Annual budget required.--
(1) Each tax collection committee shall adopt an annual
budget providing for compensation of the tax officer and
other expenses of operating the tax collection district.
(2) The expenses of operating the tax collection
district shall be shared among and paid by all political
subdivisions within the tax collection district that are
represented by voting delegates on the tax collection
committee and shall be weighted in direct proportion to
[income] tax revenues collected in each participating
political subdivision based on the political subdivision's
most recent annual audit report required under this section.
* * *
Section 509. Powers and duties of tax officer.
* * *
(k) Collection.--In addition to the powers and duties
enumerated in this section, a tax officer:
(1) shall collect each tax which is authorized under
sections 301.1 and 303 except tax upon the transfer of real
property or of an interest in real property; and
(2) when designated by the tax collection committee, [a
tax officer] may collect other taxes levied pursuant to [this
act,] the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), known as the Taxpayer Relief Act, or other statutory
law.
Section 2. Section 707 heading of the act is amended and the
section is amended by adding a subsection to read:
Section 707. Costs of Collection of Delinquent Per Capita,
Occupation, Occupational Privilege, Emergency and Municipal
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Services, Local Services [and], Income and Payroll Taxes.--* * *
(d) A contingent fee audit may not be conducted in the
collection of delinquent taxes.
Section 3. Nothing in this act shall be construed to
terminate or modify the terms of a contract in effect on the
effective date of this act SECTION for the term of that contract
unless otherwise agreed to in writing by the parties to the
contract.
Section 4. This act shall take effect January 1, 2018 2019,
OR IMMEDIATELY, WHICHEVER IS LATER.
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