H1177B3870A09004 MSP:CDM 06/30/14 #90 A09004







Printer's No. 3870


1Amend Bill, page 1, line 5, by inserting after "counties"

2 and for a local option cigarette tax in school districts of the
3first class and local sales tax revenues in cities of the
4first class

5Amend Bill, page 6, line 12, by striking out "a section" and

7 sections

8Amend Bill, page 10, by inserting between lines 8 and 9

9Section 8723. Local option cigarette tax in school districts of
10the first class.

11(a) Authorization.--The following shall apply:

12(1) A school district may, if authorized by ordinance of
13the governing body of a city of the first class adopted prior
14to or after the effective date of this section, impose and
15assess an excise tax upon the sale or possession of
16cigarettes within the school district at a rate of 10ยข per
17cigarette. Only one sale shall be taxable and used in
18computing the amount of tax due, whether the sale is of
19individual cigarettes, packages, cartons or cases.

20(2) The governing body of the city of the first class
21and school district may amend, respectively, the ordinance
22authorizing the imposition of the tax and the resolution
23imposing the tax authorized by this section to reflect the
24provisions of this section in the fiscal year in which this
25section takes effect.

26(b) Exception.--The tax authorized under subsection (a) may
27not be levied upon the possession or sale of any cigarette that
28is exempt from, or which is otherwise not subject to, levy under
29Article XII of the Tax Reform Code and the regulations
30promulgated under that article.

31(c) Collection.--

32(1) The tax authorized under subsection (a) shall be
33collected and remitted to the department in the same manner
34as the tax imposed under Article XII of the Tax Reform Code.
35The regulations promulgated under section 1291 of the Tax

1Reform Code shall be applicable to the tax authorized under
2subsection (a) insofar as the regulations are consistent with
3this section.

4(2) Unless the department promulgates regulations to the
5contrary under subsection (d), any stamp affixed under
6section 1215 of the Tax Reform Code shall also reflect
7payment of any tax authorized under this section.

8(3) The provisions of section 1216 of the Tax Reform
9Code shall not apply to any tax authorized under this

11(d) Administration.--The department shall administer and
12enforce the provisions of this section and may promulgate and
13enforce any rules and regulations not inconsistent with the
14provisions of this section.

15(e) Reimbursement of costs.--From the tax collected under
16this section, the department may retain a sum of the costs of
17collection and shall, on a monthly basis, notify in writing the
18school district imposing the tax of the sum retained and the
19costs of collection under this section. Annually, the department
20shall estimate its cost of collection under this section for the
21next succeeding fiscal year and shall provide the estimate to
22the school district.

23(f) Certified copy of ordinance to department.--A school
24district that adopts a resolution:

25(1) To impose the tax authorized under this section or
26to change the rate of the tax shall provide a certified copy
27of the resolution to the department not later than 20 days
28prior to the effective date of the tax or change to the tax.

29(2) To repeal the tax authorized under this section
30shall provide a certified copy of the resolution to the
31department not later than 30 days prior to the effective date
32of the repeal.

33(g) Effective date.--The effective date of any tax
34authorized under this section or change to the tax shall be no
35earlier than 30 days after the adoption of the resolution or

37(h) Local Cigarette Tax Fund.--

38(1) The Local Cigarette Tax Fund is established in the
39State Treasury and the State Treasurer shall be custodian of
40the fund. The fund shall be subject to the provisions of law
41applicable to funds listed in section 302 of the act of April
429, 1929 (P.L.343, No.176), known as The Fiscal Code.

43(2) The tax imposed under subsection (a) shall be
44received by the department and paid to the State Treasurer
45and, along with interest and penalties, less any collection
46costs allowed under this section and any refunds and credits
47paid, shall be credited to the fund not less frequently than
48every two weeks. During any period prior to the credit of
49moneys to the fund, interest earned on moneys received by the
50department and paid to the State Treasurer under this section
51shall be deposited into the fund.

1(3) Moneys credited to the fund shall be property of the
2school district and shall be distributed as provided in this
3section. The money in the fund, including, but not limited
4to, money credited to the fund under this section, prior year
5encumbrances and the interest earned thereon, shall not lapse
6or be transferred to any other fund, but shall remain in the
7fund and must be used exclusively as provided in this

9(4) Pending their disbursement to the school district,
10moneys received on behalf of or deposited into the fund shall
11be invested or reinvested as are other funds in the custody
12of the State Treasurer in the manner provided by law. The
13earnings received from the investment or deposit of the funds
14shall be credited to the fund.

15(i) Disbursement to school district.--On or before the 10th
16day of every month, the State Treasurer shall disburse to the
17school district imposing the tax under this section the total
18amount of moneys which are, as of the last day of the previous
19month, contained in the fund.

20(j) Definitions.--As used in this section, the following
21words and phrases shall have the meanings given to them in this
22subsection unless the context clearly indicates otherwise:

23"Cigarette." As defined in section 1201 of the Tax Reform

25"Department." The Department of Revenue of the Commonwealth.

26"Fund." The Local Cigarette Tax Fund established under this

28"Sale." As defined in section 1201 of the Tax Reform Code.

29"School district." A school district of the first class
30coterminous with a city of the first class.

31"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
32known as the Tax Reform Code of 1971.

33Section 8724. Local sales tax revenues in cities of the first

35Notwithstanding the provisions of section 696 of the act of
36March 10, 1949 (P.L.30, No.14), known as the Public School Code
37of 1949, an increase in grants to a school district of the first
38class by a city of the first class based on debt service to be
39paid as authorized under section 201-B(f)(1) of the act of March
404, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
41shall not require a comparable increase in grants by the city in
42subsequent years.

43Amend Bill, page 10, line 9, by striking out "in 60 days."
44and inserting

45 as follows:

46(1) The following provisions shall take effect

48(i) The addition of sections 8723 and 8724 of the

1(ii) This section.

2(2) The remainder of this act shall take effect in 60


See A09004 in
the context
of HB1177