Amendment 1263 to House Bill 504 P.N. 561, Regular Session 2015-2016

H0504B0561A01263 BIL:EJH 05/12/15 #90 A01263

AMENDMENTS TO HOUSE BILL NO. 504 (As amended by A01564)

Sponsor: REPRESENTATIVE F. KELLER

Printer's No. 561

Amend Bill, page 1, lines 3 through 7 (A01564), by striking

out all of said lines and inserting

; imposing tax on personal income, sales and use of personal

property and hotel use; establishing a fund for county property

tax elimination; and prohibiting county property tax.

Amend Bill, page 1, line 25 (A01564), by striking out

"articles" and inserting

an article

Amend Bill, page 1, lines 26 through 35; pages 2 through 21,

lines 1 through 51; page 22, lines 1 through 33 (A01564), by

striking out all of said lines on said pages and inserting

ARTICLE XVI

COUNTY PROPERTY TAX ELIMINATION

PART I

PRELIMINARY PROVISIONS

Section 1601. Short title of article.

This article shall be known and may be cited as the County

Property Tax Elimination Act.

Section 1602. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

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

"Equalization factor." A fraction determined as follows:

(1) Add:

(i) the rate of tax imposed under section 1621; and

(ii) the rate of tax imposed under section 1622.

(2) Divide:

(i) the rate of tax imposed under section 1623; by

(ii) the sum under paragraph (1).

(3) Express the quotient under paragraph (2) as a

fraction.

"Fund." The County Property Tax Elimination Fund established

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in section 1603.

"Real property tax." The total dollar value of real property

tax paid by property owners in a county determined by adding the

real property taxes collected by, or on behalf of, the county.

"Secretary." The Secretary of the Budget.

Section 1603. Fund.

(a) Establishment.--The County Property Tax Elimination Fund

is established as a special fund in the State Treasury.

(b) Purposes.--

(1) Money in the fund shall be used for the purpose

enumerated in section 1633.

(2) Beginning in 2017, in order to ensure that the

General Fund is not negatively impacted by the imposition of

the tax under section 1621, by June 30 of a taxable year when

the tax under section 1621 is applicable, the State Treasurer

shall transfer from the fund to the General Fund an amount

equal to the product of:

(i) the equalization factor; and

(ii) the amount of refunds issued under Article III.

(1) Transfer under subsection (b)(2).

(2) Distribution under section 1634.

(d) Sources.--The following are the sources of the fund:

(1) Money generated by the taxes under sections 1621 and

1622.

(2) Appropriations.

(3) Return on money in the fund.

(e) Nonlapse.--Money in the fund is continuously

appropriated into the fund. This appropriation shall not lapse

at the end of any fiscal year.

PART II

COUNTY PROPERTY TAX ELIMINATION

FROM STATEWIDE SOURCES

Section 1621. Additional personal income tax.

(a) Imposition.--There is imposed a tax upon each class of

income as defined in Article III.

(b) Rate.--The tax imposed by subsection (a) shall be at the

rate of 0.33%.

into the fund an amount determined as follows:

(1) Add:

(i) tax collected under this section; and

(ii) tax collected under Article III.

(2) Multiply:

(i) the sum under paragraph (1); by

(ii) the equalization factor.

(d) Administration.--The tax shall be calculated, collected

and paid over to the Commonwealth in the same manner as provided

in Article III and 61 Pa. Code Pt. I Art. V (relating to

personal income tax).

(e) Construction.--The tax imposed by this section shall be

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in addition to the tax imposed under the following:

(1) Article III.

(2) Section 321(c) of the act of June 27, 2006 (1st

Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act .

Section 1622. Additional sales, use and hotel tax.

(a) Sales and use tax.--There is imposed a tax upon each

separate sale at retail of tangible personal property or

services. The tax under this subsection shall be imposed upon

the purchase price.

(b) U se tax.--There is imposed a tax upon the use of

tangible personal property purchased at retail and on services

purchased at retail. The tax under this subsection shall be

imposed upon the purchase price.

upon occupancy of a hotel.

(d) Rate and computation.--The tax imposed by subsections

(a), (b) and (c) shall be at a rate of 1%.

(e) Administration.--The tax shall be calculated, collected

and paid over to the Commonwealth in the same manner as provided

in Article II and 61 Pa. Code Pt. I Art. II (relating to sales

and use tax), subject to all of the following:

(1) The tax under subsection (a) shall be collected by

the vendor from the purchaser.

(2) Except as set forth in paragraph (3), the tax under

subsection (b) shall be paid over to the Commonwealth by the

person who makes the use.

(3) Paragraph (2) shall not apply if the person:

(i) has paid the tax imposed under subsection (a);

(ii) has paid the tax imposed under this subsection

to the vendor with respect to the use.

(4) The tax under subsection (c) shall be collected by

the operator or owner from the occupant and paid over to the

Commonwealth.

(f) Deposit of tax proceeds.--From taxes collected under

this section, the department shall deposit into the fund one-

seventh of the sum of:

(1) the amount collected under this section; and

(2) the amount collected under Article II.

(g) Construction.--The tax imposed by this section shall be

in addition to the tax imposed under the following:

(1) Section 3152-B of the act of July 28, 1953 (P.L.723,

No.230), known as the Second Class County Code.

(2) A rticles II and II-B.

(3) Section 503 of the act of June 5, 1991 (P.L.9,

No.6), known as the Pennsylvania Intergovernmental

Cooperation Authority Act for Cities of the First Class.

(h) D efinitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Hotel." As defined in section 209(a)(1).

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"Purchase price." As defined in section 201(g).

"Sale at retail." As defined in section 201(k).

"Tangible personal property." As defined in section 201(m).

PART V

DISTRIBUTION

Section 1631. Scope of part.

This chapter relates to the allocation of State money for the

dollar-for-dollar elimination of county property taxes.

Section 1632. Certifications.

(a) Duty.--By April 30, the secretary shall certify the

total amount of money in the fund.

(b) Notification.--By May 15, the secretary shall notify the

Department of Community and Economic Development of the amount

certified under subsection (a).

Section 1633. Mandatory use of funds.

A county which imposes a tax on real property shall utilize

money received from the fund for the elimination of real

property taxes.

Section 1634. County property tax distribution.

(a) Requirement.--By June 30, the Department of Community

and Economic Development shall distribute from the fund to each

county the amount under subsection (b).

(b) Amount.--The distribution amount shall consist of the

following:

(1) The total amount of property tax collected by the

county in 2016.

(2) A prorated amount of money remaining in the fund

after distribution under paragraph (1). The amount under this

paragraph shall be calculated as follows:

(i) Divide:

(A) the amount of real property tax collected by

the county in 2016; by

(B) the amount of real property tax collected by

all counties in 2016.

(ii) Multiply:

(A) the quotient under subparagraph (i); by

(B) the amount of money remaining in the fund

after distribution under paragraph (1).

Section 1635. Real property tax.

(a) Prohibition.--Except as set forth in subsection (b), a

county may not impose a tax on real property.

(b) Delinquency.--Subsection (a) shall not apply to the

collection of delinquent real property taxes owed to the county.

PART X

MISCELLANEOUS PROVISIONS

Section 1691. Applicability.

(a) Personal income tax.--The tax under section 1621 shall

apply to taxable years beginning after December 31, 2015.

(b) Sales, use and hotel tax.--The tax under section 1622

shall apply to taxable transactions which occur after January 1,

2016.

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Amend Bill, page 22, line 36 (A01564), by striking out "6"

and inserting

Amend Bill, page 22, lines 39 through 43 (A01564), by

striking out all of said lines and inserting

Section 4. Effective date

This act shall take effect as follows:

(1) The following provisions shall take effect January

1, 2017:

(i) Section 1632.

(ii) Section 1634(a).

(iii) Section 1635.

(2) The remainder of this act shall take effect

immediately.

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