PRINTER'S NO. 3235
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2254
Session of
2020
INTRODUCED BY DIAMOND, JANUARY 30, 2020
REFERRED TO COMMITTEE ON FINANCE, JANUARY 30, 2020
AN ACT
Amending the act of June 5, 1991 (P.L.9, No.6), entitled "An act
providing for the financial stability of cities of the first
class; establishing an authority empowered to assist cities
of the first class in their financial affairs and to issue
findings and recommendations to cities of the first class and
to the General Assembly; creating the authority and providing
for its powers and duties; authorizing each city of the first
class and the authority to enter into intergovernmental
cooperation agreements and specifying certain terms of such
agreements and ordinances whereby cities of the first class
enter into such agreements; empowering the authority to incur
indebtedness, receive revenues, acquire the obligations of
assisted cities, make loans and offer other financial
assistance to such cities subject to conditions; establishing
procedures for the preparation and review of financial plans
of cities of the first class while bonds of the authority are
outstanding and providing remedies for failure to adhere to
such plans; requiring certain contracts to be consistent with
the financial plan; making certain provisions with respect to
short-term borrowing by cities of the first class;
establishing procedures for handling authority funds, and
providing for certain payments to the authority; providing
security for bonds and notes issued by the authority;
authorizing the creation of a debt service reserve fund and
providing for its maintenance; granting to the holders of the
authority's indebtedness and to the authority certain
remedies in the event of default by the authority or by an
assisted city on authorized obligations; authorizing cities
of the first class to receive financial assistance from the
authority under certain terms and conditions; establishing
the method for the appointment and composition of the
authority board; prohibiting the authority and assisted
cities from filing a petition under Federal bankruptcy
statutes; authorizing an appropriation for authority
operating expenses; authorizing cities of the first class to
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impose an optional sales and use tax; authorizing cities of
the first class to impose certain taxes for the authority;
authorizing emergency payment deferral; and providing
jurisdiction for challenges to this act," in optional sales
and use tax, further providing for imposition of additional
tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 503(d) and (e) of the act of June 5, 1991
(P.L.9, No.6), known as the Pennsylvania Intergovernmental
Cooperation Authority Act for Cities of the First Class, are
amended to read:
Section 503. Imposition of additional tax.
* * *
(d) Rate and uniformity.--
(1) The tax authorized by subsections [(a), (b) and (c)]
(a) and (b) may be imposed at a rate of [either 0.5% or 1%.]
0.32%. The tax authorized by subsection (c) may be imposed at
the rate of 1%.
(2) The tax imposed by subsections [(a), (b) and (c)]
(a) and (b) shall be uniform.
(e) Tax computation.--The tax imposed under subsections (a),
(b) and (c) shall be computed [as follows:
(1) In cities imposing the tax authorized by this
section at the rate of 0.5%, the tax shall be computed as
follows:
(i) If the purchase price is $1 or less, no tax
shall be collected.
(ii) If the purchase price is $1.01 or more but less
than $3.01, 1¢ shall be collected.
(iii) If the purchase price is $3.01 or more but
less than $5.01, 2¢ shall be collected.
(iv) If the purchase price is $5.01 or more but less
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than $7.01, 3¢ shall be collected.
(v) If the purchase price is $7.01 or more but less
than $9.01, 4¢ shall be collected.
(vi) If the purchase price is $9.01 or more but less
than $10.01, 5¢ shall be collected.
(vii) If the purchase price is more than $10, 0.5%
of each $10 of purchase price plus the above bracket
charges upon any fractional part of a $10 increment shall
be collected.
(2) In cities imposing the tax authorized by this
section at the rate of 1%, the tax shall be computed as
follows:
(i) If the purchase price is 50¢ or less, no tax
shall be collected.
(ii) If the purchase price is 51¢ or more but less
than $1.51, 1¢ shall be collected.
(iii) If the purchase price is $1.51 or more but
less than $2.51, 2¢ shall be collected.
(iv) If the purchase price is $2.51 or more but less
than $3.51, 3¢ shall be collected.
(v) If the purchase price is $3.51 or more but less
than $4.51, 4¢ shall be collected.
(vi) If the purchase price is $4.51 or more but less
than $5.51, 5¢ shall be collected.
(vii) If the purchase price is $5.51 or more but
less than $6.51, 6¢ shall be collected.
(viii) If the purchase price is $6.51 or more but
less than $7.51, 7¢ shall be collected.
(ix) If the purchase price is $7.51 or more but less
than $8.51, 8¢ shall be collected.
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(x) If the purchase price is $8.51 or more but less
than $9.51, 9¢ shall be collected.
(xi) If the purchase price is $9.51 or more but less
than $10.01, 10¢ shall be collected.
(xii) If the purchase price is more than $10, 1% of
each $10 purchase price plus the above bracket charges
upon any fractional part of a $10 increment shall be
collected.] by the department. The department shall
transmit the computation to the Legislative Reference
Bureau for publication in the Pennsylvania Bulletin.
Section 2. The Secretary of the Commonwealth shall submit to
the Legislative Reference Bureau a notice for publication in the
Pennsylvania Bulletin if the General Assembly has enacted all of
the following:
(1) An act that reduces the rate of tax imposed under
section 3152-B of the act of July 28, 1953 (P.L.723, No.230),
known as the Second Class County Code, in a manner that would
result in the revenue generated by the tax imposed under
section 3152-B of the Second Class County Code, being revenue
neutral, subject to the repeal of exclusions described under
paragraph (2), in comparison to the amount generated in the
prior fiscal year.
(2) An act that repeals the exclusions from the tax
imposed under Article II of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971.
(3) An act that reduces the amount deposited into the
Public Transportation Trust Fund under 74 Pa.C.S. § 1506(c)
(1).
Section 3. This act shall take effect as follows:
(1) Section 2 of this act and this section shall take
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effect immediately.
(2) The remainder of this act shall take effect upon
publication of the notice under section 2 of this act.
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