H0245B3951A10828 AJB:EJH 10/24/16 #90 A10828
AMENDMENTS TO HOUSE BILL NO. 245
Sponsor: SENATOR GORDNER
Printer's No. 3951
Amend Bill, page 1, line 25, by inserting after
"limitations;"
in optional occupational tax elimination, further providing for
income tax rate limits;
Amend Bill, page 6, by inserting between lines 18 and 19
Section 3.1. Section 404(a) of the act, added October 15,
2008 (P.L.1615, No.130), is amended and the section is amended
by adding a subsection to read:
Section 404. Income tax rate limits.
(a) Income tax rate limits.--For the first fiscal year
beginning after approval of the referendum under section 407,
and each fiscal year thereafter, the governing body of a
political subdivision using the procedures authorized by this
chapter shall be authorized to impose an income tax at a rate
not exceeding the maximum income tax rate as calculated under
subsection (b) [or], (b.1) or (b.2).
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(b.2) Calculation of maximum tax rate.--The maximum income
tax rate for a school district that levied an occupation tax for
the fiscal year ending in 2016, or a municipality that levied an
occupation tax for the calendar year ending December 31, 2015,
shall be determined by taking the sum of the rates calculated
under paragraphs (1) and (2) and limited by paragraph (3):
(1) The rate of the income tax that would have resulted
in the collection by the political subdivision of an amount
equal to the amount collected from the occupation tax. The
calculation by a school district under this paragraph shall
be made using actual revenue collections for the fiscal year
ending immediately prior to the year in which the resolution
is adopted under section 406. The calculation by a
municipality under this paragraph shall be made using actual
revenue collections for the calendar year ending immediately
prior to the year in which the resolution is adopted under
section 406.
(2) The rate at which the income tax was collected by a
school district for the fiscal year ending immediately prior
to the year in which the resolution is adopted under section
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406 or the rate at which an earned income tax was collected
by a municipality for the calendar year ending immediately
prior to the year in which the resolution is adopted under
section 406.
(3) The tax rate determined under paragraphs (1) and (2)
shall be rounded off to the nearest increment of 0.1%.
The maximum rate of the income tax calculated under this
subsection shall not be subject to the limits on the earned
income tax specified under section 311(3).
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