|Posted:||January 10, 2019 11:17 AM|
|From:||Senator Patrick M. Browne|
|To:||All Senate members|
|Subject:||Further Consolidation of Local Tax Collection|
|In the near future, I plan on reintroducing legislation that was introduced last session as Senate Bill 653, to further consolidate the collection of local, non-real estate taxes, at the county regional level. I plan to introduce the version of Senate Bill 653 that was passed by the Senate, Printer's Number 1660.
With the establishment of regional tax collection districts (TCDs) under Act 32, the number of taxing districts was reduced to 69, and the number of tax collectors was reduced to fewer than 20. Further, according to the Legislative Budget and Finance Committee (LBFC), an estimated $173 million in additional earned income tax collections annually can be attributed to Act 32, or an 8.6 percent increase in collections over the average annual collections for the three-year period prior to implementation of Act 32. The LBFC also noted in its impact report of Act 32 that of the wide range of associations and organizations representing employers, municipalities, providers of payroll and tax services contacted, all indicated that the EIT collection process is operating relatively smoothly and that Act 32 has been successful in simplifying and improving EIT collections and many mentioned they would like to see the consolidation of the collection of property, local services, and business privilege taxes.
My legislation would further extend the consolidation of the collection of all of the other local non-real estate taxes imposed under the Local Tax Enabling Act (LTEA) at the county regional level using the mechanics created under Act 32. This legislation would provide an increased level of stability and uniformity to our local tax collection process.
Cosponsors of Senate Bill 653 of last session included: Senators BOSCOLA, FOLMER, MCGARRIGLE, BARTOLOTTA, SCAVELLO, REGAN, EICHELBERGER, WILLIAMS, LAUGHLIN, MARTIN, WAGNER and SCHWANK. Senate Bill 653, PN 1660 passed the Senate on April 18, 2018, by a vote of 39-10.
Senate Amendments to Senate Bill 653 included:
Introduced as SB636