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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted:	April 21, 2015 10:09 AM
From:	Representative Kurt A. Masser
To:	All House members
Subject:	Amending Local Tax Enabling Act

In the near future I will be introducing legislation that will amend the Local Tax Enabling Act to allow a school district or municipality that currently imposes an occupation tax to eliminate the occupation tax and instead enact an earned income tax that is revenue neutral. Under current law, if a school district or municipality converts their occupation tax to an earned income tax, they are only permitted to generate the amount of revenue collected by the occupation tax in calendar year 2008 for municipalities and fiscal year ending in 2009 for school districts. This restriction is a disincentive for a school district or municipality to eliminate their occupation tax. My legislation eliminates the need for the General Assembly to constantly update the Local Tax Enabling Act with respect to eliminating an occupation tax. Simply put, my legislation will allow a school district or municipality to eliminate their occupation tax and enact an earned income tax that generates the same amount of revenue during the prior year.

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