PRINTER'S NO. 4215
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2756
Session of
2020
INTRODUCED BY OBERLANDER, CONKLIN, CAUSER, CIRESI AND STRUZZI,
AUGUST 7, 2020
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, AUGUST 7, 2020
AN ACT
Amending the act of August 9, 1955 (P.L.323, No.130), entitled
"An act relating to counties of the first, second class A,
third, fourth, fifth, sixth, seventh and eighth classes;
amending, revising, consolidating and changing the laws
relating thereto; relating to imposition of excise taxes by
counties, including authorizing imposition of an excise tax
on the rental of motor vehicles by counties of the first
class; and providing for regional renaissance initiatives,"
in fiscal affairs, providing for county local services and
occupational tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of August 9, 1955 (P.L.323, No.130),
known as The County Code, is amended by adding a section to
read:
Section 1770.13. County Local Services and Occupational
Tax.-- (a) A county may, by ordinance, levy, assess and collect
a county local services tax as authorized under this section. A
county levying the county local services tax at a rate exceeding
ten dollars ($10) or less may, by ordinance or resolution,
exempt any individual from the county local services tax whose
total earned income and net profits from all sources within the
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county is less than twelve thousands dollars ($12,000) in the
calendar year in which the tax is levied.
(b) (1) A person seeking to claim an exemption from the
county local services tax may annually file an exemption
certificate with the county levying the tax and with the
individual's employer affirming that the individual reasonably
expects to have a total earned income and net profits from all
sources within the county of less than the income threshold
under subsection (a) in the calendar year for which the
exemption certificate is filed. The individual seeking to claim
an exemption from the county local services tax shall attach the
individual's most recent pay stub or W-2 form from the
individual's most recent employer for the calendar year prior to
the calendar year for which the individual is seeking the
exemption. The county shall provide a copy of the exemption
certificate to the office of the tax collector, county treasurer
or any other person authorized to collect taxes for the county.
(2) Upon receipt of the exemption certificate under clause
(1) and until otherwise instructed by the county levying the
county local services tax, the employer may not withhold the
county local services tax from the individual during the
calendar year for which the exemption applies. Each employer
within a county levying the local services tax shall ensure that
exemption certificate forms are readily available to employees
at all times and shall furnish each new employee with an
exemption certificate form at the time of hiring. The Department
of Community and Economic Development shall develop and make
available to counties and employers uniform exemption
certificate forms.
(3) An employer shall withhold the county local services tax
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from an individual if all of the following apply:
(i) The employer receives a notification from the individual
seeking an exemption under clause (1) from the county local
services tax that the individual has a total earned income and
net profits from all sources within the county that is equal or
more than the income threshold specified under subsection (a) in
the calendar year for which the individual is seeking the
exemption.
(ii) The employer's payment to the individual causes the
individual to have a total earned income and net profits from
all sources within the county that is equal or more than the
income threshold specified under subsection (a) in the calendar
year for which the individual is seeking the exemption.
(4) If an individual who claimed an exemption from the
county local services tax for a calendar year becomes subject to
the tax during the calendar year, the individual's employer
shall withhold the tax for the first payroll period after
receipt of the notification under clause (3)(i) in a lump sum
equal to the amount of tax that was not withheld due to the
exemption claimed by the individual plus the per-payroll amount
due for the first payroll period. The employer shall withhold
the county local services tax from the individual for the
remaining payroll period in the calendar year equal to the
amount withheld for other employees.
(5) If an employer severs employment with an individual
subject to the county local services tax, the individual shall
be liable for any outstanding balance of tax due and the county
may take any action necessary to collect the remaining tax due
in accordance with this act.
(6) Except as provided for the purposes specified under
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clause (3), nothing in this subsection shall be construed to
require an employer to investigate exemption certificates,
monitor county local services tax exemption eligibility or
exempt any employee from the county local services tax.
(c) A county may, by ordinance, levy, assess and collect a
county local occupational tax on an individual for the privilege
of engaging in an occupation within the county. The county may
only collect the county local occupation tax at an individual's
place of employment. The following apply:
(1) If a county local occupational tax is levied at a
combined rate exceeding ten dollars ($10) in a calendar year, an
individual subject to the county local occupational tax shall be
assessed at a pro rata share of the county local occupational
tax for each payroll period when the individual is engaging in
an occupation within the county. The pro rata share of the
county local occupational tax assessed on the individual shall
be determined by dividing the combined rate of the county local
occupation tax levied for the calendar year by the number of
payroll periods established by the employer for the calendar
year. For the purposes of determining the pro rata share, an
employer shall round down the amount of the county local
occupational tax collected under each payroll period to the
nearest one-hundredth dollar. Except as provided under clause
(3), the collection of the county local occupational tax shall
be made on a payroll period basis for each payroll period when
the individual is engaging in an occupation within the county.
(2) If an individual is subject to the county local
occupational tax at a combined rate of more than ten dollars
($10), the situs of the county local occupational tax shall be
the place of employment on the first day the individual becomes
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subject to the tax during each payroll period. If an individual
is subject to the county local occupational tax at a combined
rate of not more than ten dollars ($10), the situs of the tax
shall be the individual's place of employment as determined by
the date when the individual becomes subject to the tax during
the calendar year. If an individual is engaged in more than one
occupation and maintaining concurrent employment within the
county, or an occupation that requires the individual to work in
more than one county during a payroll period, the priority of
claim to collect the county local occupational tax shall be in
the following order:
(i) The county where the individual maintains the
individual's principal office or employment.
(ii) The county where the individual resides and works if
the county local occupational tax is levied in the county.
(iii) The county where the individual is employed and which
imposes the county local occupational tax nearest in the miles
to the individual's place of residence.
(3) If an individual has more than one occupation and
maintains concurrent employment within a county that levies the
county local occupational tax, the individual's employer may not
withhold the county local occupational tax if the individual
provides a recent pay statement from a principal employer that
includes all of the following:
(i) The name of the employer.
(ii) The length of the payroll period.
(iii) The amount of county local occupational tax withheld.
(iv) A statement from the individual that the pay statement
is from the individual's principal employer and the individual
will notify the individual's other employers of a change in the
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individual's principal place of employment no later than
fourteen days from the date of the change. The Department of
Community and Economic Development shall develop a uniform
employee statement form.
(4) The county local occupational tax shall be no more than
fifty-two dollars ($52) on each individual for each calendar
year, regardless of the number of counties where an individual
may be employed. Upon request by an individual, a county that
levies the county local occupational tax shall provide the
individual a receipt of payment of the county local occupational
tax.
(d) A county that levies the county local services tax or
county local occupational tax shall adopt regulations for the
processing of refund claim for overpaid taxes during a calendar
year. The regulations under this subsection shall be consistent
with 53 Pa.C.S. §§ 8425 (relating to refunds of overpayments)
and 8426 (relating to interest on overpayment). Refunds under
this subsection made within seventy-five days of a refund
request or seventy-five days after the last day an employer is
required to remit the tax for the last quarter of the calendar
year, whichever is later, shall not be subject to the interest
imposed under 53 Pa.C.S. § 8426. A county shall only provide a
refund under this subsection for amounts overpaid in a calendar
year that exceed one dollar ($1).
(e) A county that collects revenue from the county local
services tax or county local occupational tax may distribute the
revenue to emergency medical services agencies to provide
services within the county.
(f) The Department of Community and Economic Development
shall provide suggested forms and technical assistance to
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facilitate the administration of the county local services tax
and county local occupational tax for counties and reduce the
burden of implementation, accounting and compliance for
employers and employees.
(g) A county levying a county local services tax or county
local occupational tax shall exempt all of the following
individuals from the county local services tax:
(1) A veteran.
(2) An individual who serves in the United States Armed
Forces, including a reserve component or National Guard, and who
is placed on active duty at any time during the calendar year in
which the county local services tax is levied.
(h) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection:
"County." A county of the second, second A, third, fourth,
fifth, sixth, seventh or eighth class. The term does not include
a county of the first class.
"Emergency medical services agency." As defined in 35
Pa.C.S. § 8103 (relating to definitions).
"Veteran." An individual who served in the United States
Armed Forces, including a reserve component or National Guard,
and who was discharged or released from service under conditions
other than dishonorable.
Section 2. This act shall take effect in 60 days.
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