PRIOR PRINTER'S NO. 1320 PRINTER'S NO. 1696
No. 1188 Session of 1981
INTRODUCED BY WILSON, DeVERTER, BURNS, WASS, SIEMINSKI,
E. Z. TAYLOR, PUNT, KUKOVICH, BOWSER, COCHRAN, PHILLIPS,
GEIST, MILLER, CESSAR, ARTY, HOEFFEL, KOWALYSHYN, GRUPPO AND
MADIGAN, APRIL 8, 1981
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 1, 1981
AN ACT
1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
2 act relating to the public school system, including certain
3 provisions applicable as well to private and parochial
4 schools; amending, revising, consolidating and changing the
5 laws relating thereto," authorizing a personal income tax,
6 corporate net income tax, business use or occupancy tax,
7 amusement tax, real estate transfer tax and a residential
8 construction tax and providing for reduction of real property
9 taxes.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 Section 1. The act of March 10, 1949 (P.L.30, No.14), known <--
13 as the "Public School Code of 1949," is amended by adding
14 sections to read:
15 Section 602.1. Personal Income Tax Authorization; Reductions
16 on Real Property Taxes.--(a) For the school fiscal year 1982-
17 1983, or if appropriate, calendar year 1983 and thereafter, a
18 school district of the second, third or fourth class may levy a
19 tax on personal income of one-half of one per centum (1/2%)
20 consistent with the provisions of Article III, act of March 4,
1 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971."
2 (b) A school district may impose up to an additional one and
3 one-half per centum (1 1/2%) tax on individual income provided
4 that there is a reduction in real property tax rates or
5 assessment values sufficient to reduce property tax revenues by
6 an amount substantially equal to the revenue raised by the
7 additional income tax. If, at the option of the school district,
8 a tax is levied under either section 602.2 or 602.3, the amount
9 of the property tax reduction referred to above shall
10 substantially equal the total of the revenues raised by the
11 additional income tax together with the revenue raised under
12 section 602.2 or 602.3.
13 (c) A school district levying the personal income tax
14 authorized by subsection (a) or (b) shall provide relief from
15 the tax for persons who, because of poverty, are determined to
16 be in need of special tax provisions. Such tax relief shall be
17 in accordance with the special tax provision schedule in section
18 304 of the "Tax Reform Code of 1971."
19 (d) A school district levying the personal income tax
20 authorized by subsection (a) or (b) may provide relief from the
21 tax for persons who, because of age, are determined to be in
22 need of special tax provisions. Such tax relief shall be in
23 accordance with section 4, act of March 11, 1971 (P.L.104,
24 No.3), known as the "Senior Citizens Property Tax or Rent Rebate
25 and Older Persons Inflation Needs Act."
26 (e) Upon written notification by the school district of the
27 rate of personal income tax imposed by the school district, an
28 employer shall deduct and withhold from the compensation for
29 each payroll period of each employe who is a resident of that
30 school district, a tax computed in such manner as to result, so
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1 far as practicable, in withholding from the employe's
2 compensation during each calendar year an amount substantially
3 equivalent to the tax reasonably estimated to be due for such
4 year with respect to such compensation. Subject to the
5 foregoing, the ordinance levying the tax shall provide for
6 withholding, collecting and enforcing procedures which are not
7 inconsistent with the provisions of the act of December 31, 1965
8 (P.L.1257, No.511), known as "The Local Tax Enabling Act,"
9 relating to the withholding of income taxes.
10 (f) The department may elect to enter into agreements with
11 municipal corporations for the collection of taxes imposed under
12 this section.
13 Section 602.2. Corporate Net Income Tax.--(a) A school
14 district may levy, assess and collect a tax on that portion of
15 the taxable income of corporations, as those terms are defined
16 in Article IV, act of March 4, 1971 (P.L.6, No.2), known as the
17 "Tax Reform Code of 1971," which is attributable to those
18 business operations conducted within the boundaries of the
19 school district. A tax under this section may be levied only if
20 there has been a reduction of real property tax rates or
21 assessment values pursuant to section 602.1(b). No tax may be
22 levied under this section if a tax is levied under section
23 602.3.
24 (b) If a school district levys a corporate net income tax
25 under this section then the school district may also include
26 under the tax a business activities tax upon the activities of
27 carrying on or exercising for gain or profit within the
28 Commonwealth of Pennsylvania by any person of any trade,
29 profession, business vocation or making sales to persons within
30 this Commonwealth or of any manufacturing, commercial or
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1 financial service or business, including but not limited to,
2 manufacturers, brokers, wholesale dealers or wholesale vendors,
3 retail dealers or retail vendors.
4 (c) The tax base of the business activities tax shall
5 include the following:
6 (i) Compensation, meaning all wages, salaries, fees,
7 bonuses, commissions or other payments made in the taxable year
8 on behalf of or for the benefit of employes, officers or
9 directors of the business and subject to or specifically exempt
10 from withholding under section 3401 of the United States
11 Internal Revenue Code.
12 (ii) Depreciation claimed for Federal income tax purposes.
13 (iii) Interest deductions claimed for Federal income tax
14 purposes.
15 (iv) Federal taxable income, meaning taxable income as
16 defined in section 63 of the United States Internal Revenue
17 Code.
18 Section 602.3. Business Use or Occupancy Tax.--(a) The
19 following words, terms and phrases when used in this section
20 shall have the meanings ascribed to them herein except where the
21 context clearly indicates otherwise:
22 (1) "Area available for use or occupancy" shall include the
23 whole portion of any real property, any structure thereon and
24 space therein exclusive of service, utility and common areas
25 controlled by the landlord.
26 (2) "Landlord" shall include in addition to the owner of
27 real property, any person who grants the right to use or occupy
28 real property or any part thereof to any lessee, sublessee,
29 licensee or concessionaire.
30 (3) "Taxable year" shall mean July 1 of any calendar year
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1 through June 30 of the following calendar year.
2 (4) "Taxpayer" shall mean a taxable user or occupier of real
3 property within the school district.
4 (b) A school district, in addition to any other taxes
5 authorized by law, but not in addition to the tax provided for
6 in section 602.2, may provide by ordinance or resolution for the
7 levying of a business use or occupancy tax on the user or
8 occupier of real property within the school district for the
9 privilege of carrying on any business, trade, occupation,
10 profession, vocation or any other commercial, industrial or
11 agricultural activity on the real property.
12 (c) This tax shall not apply to:
13 (1) The use or occupancy of real property to the extent that
14 the real property is used or occupied as the dwelling or
15 principal place of residence of the user or occupier.
16 (2) The use or occupancy of real property for a purpose
17 which exempts it from local real property taxes.
18 (3) Farmland not actively grazed or planted with a current
19 annual crop.
20 (d) Computation of tax:
21 (1) The taxpayer shall on or before September 1 of each
22 taxable year compute the tax which is payable for the portion of
23 the property which he uses or occupies and pay over to the tax
24 collector for the school district the tax due within twenty-five
25 (25) days after the end of each quarter of the taxable year.
26 (2) In the case where the total area available for use and
27 occupancy of the property is occupied by tenants and no portion
28 is used or occupied by the landlord, the tax shall be allocated
29 by the landlord among the tenants on the basis of rents
30 contracted for between the landlord and the tenants; in the case
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1 where the total area available for use or occupancy is used or
2 occupied by the landlord and one or more tenants, the tax shall
3 be allocated among the users and occupiers on the basis of the
4 area used or occupied divided by the total area available for
5 use or occupancy. The tax due for each user and occupier for the
6 quarter of the taxable year shall be computed by multiplying the
7 proportion of the area used or occupied or the proportion of the
8 total rentals paid or to be paid by the user or occupier
9 multiplied by the total assessed value of the property
10 multiplied by the rate of tax multiplied by the months of actual
11 use or occupancy divided by twelve. The use or occupancy of a
12 portion of the property for any period of time during a month
13 shall be presumed to constitute the use or occupancy of the
14 portion for the entire month.
15 (3) The school district may provide for discounts not to
16 exceed ten per centum (10%) of the tax due for the annual
17 prepayment of the tax by the taxpayer. Upon the imposition of a
18 business use or occupancy tax the landlord shall provide a list
19 of his tenants to the taxing agent, together with the area in
20 square feet that each tenant occupies to the school district,
21 and shall promptly report any subsequent changes of tenants or
22 areas of occupancy.
23 Section 602.4. Rent Reductions.--Within thirty (30) days
24 after receipt of his school real property tax bill, a landlord
25 shall disclose in writing to each tenant who has occupied a
26 rental unit for more than forty-five (45) days the reduction in
27 real property taxes, if any, under section 602.1, 602.2 or 602.3
28 which is attributable to that tenant's unit. The amount of tax
29 reduction attributable to each unit shall be based upon
30 allocated square footage occupied or other reasonable criteria.
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1 The rental amount specified in any lease shall reflect any
2 reduction in real property taxes required by this section.
3 Section 602.5. Tax Rates.--If the school district levies and
4 collects a tax in its fiscal year 1981 that exceeds the rate
5 provided for in sections 602.1 to 602.10 the school district may
6 continue to levy and collect the tax at the rate imposed as of
7 its fiscal year 1981.
8 Section 602.6. Amusement Tax.--A school district of the
9 second, third, or fourth class, in addition to any other taxes
10 authorized by law, may provide by ordinance or resolution for
11 the levying of a tax on sales of admission to places of
12 amusement. The rate of tax on admissions to places of amusement
13 shall not exceed five per centum (5%) of the price of admission.
14 Section 602.7. Real Estate Transfer Tax.--A school district
15 of the second, third or fourth class, in addition to any other
16 taxes authorized by law, may provide by ordinance or resolution
17 for the levying of a tax on the transfer of real property. The
18 rate of tax on the transfer of real property shall not exceed
19 one-half per centum (1/2%). Said school districts shall not have
20 authority to levy, assess and collect or provide for the
21 levying, assessment and collection of any tax on the transfer of
22 real property when the transfer is by will or mortgage or the
23 interstate laws of this Commonwealth or on a transfer by the
24 owner of previously occupied residential premises to a builder
25 of new residential premises when such previously occupied
26 residential premises is taken in trade by such builder as part
27 of the consideration from the purchaser of a new previously
28 unoccupied single-family residential premises or on a transfer
29 between corporations operating housing projects pursuant to the
30 housing and redevelopment assistance law and the shareholders
19810H1188B1696 - 7 -
1 thereof, or on a transfer between nonprofit industrial
2 development agencies and industrial corporations purchasing from
3 them, or on transfer to nonprofit industrial development
4 agencies, or on a transfer between husband and wife, or on a
5 transfer between persons who were previously husband and wife
6 but who have since been divorced; provided such transfer is made
7 within three (3) months of the date of the granting of the final
8 decree in divorce and the property or interest therein, subject
9 to such transfer, was acquired by the husband and wife, or
10 husband or wife, prior to the granting of the final decree in
11 divorce, or on a transfer between parent and child or the spouse
12 of such a child, or between parent and trustee for the benefit
13 of a child or the spouse of such child, by and between a
14 principal and straw party for the purpose of placing a mortgage
15 or ground rent upon the premises, or on a correctional deed
16 without consideration, or on a transfer to the United States,
17 the Commonwealth of Pennsylvania, or to any of their
18 instrumentalities, agencies or political subdivisions, by gift,
19 dedication or deed in lieu of condemnation, or deed of
20 confirmation in connection with condemnation proceedings, or
21 reconveyance of the condemning body of the property condemned to
22 the owner of record at the time of condemnation which
23 reconveyance may include property line adjustments provided said
24 reconveyance is made within one (1) year from the date of
25 condemnation, leases or on a conveyance to a trustee under a
26 recorded trust agreement for the express purpose of holding
27 title in trust as security for a debt contracted at the time of
28 the conveyance under which the trustee is not the lender and
29 requiring the trustee to make reconveyance to the grantor-
30 borrower upon the repayment of the debt, or in any sheriff sale
19810H1188B1696 - 8 -
1 instituted by a mortgagee in which the purchaser of said sheriff
2 sale is the mortgagee who instituted said sale.
3 Section 602.8. Residential Construction Tax.--(a) The
4 following words, terms and phrases when used in this section
5 shall have the meanings ascribed to them in this subsection
6 except where the context clearly indicates otherwise:
7 (1) "Convert" shall mean any activity whereby an improvement
8 to real property not theretofore used as a residence is changed
9 to a residence, or whereby the number of residential units
10 within a residence are increased in number.
11 (2) "Residence" shall include any improvement to real
12 property constructed and intended as a place of residence for
13 one (1) or more persons, including single-family and multifamily
14 residences, but not including accommodations for transient
15 occupancy such as motels, hotels, tourist homes, campgrounds,
16 hospitals and convalescent homes.
17 (3) "Residential unit" shall include a group of rooms within
18 a residence for occupancy by one (1) or more persons separate
19 and independent from other groups of rooms within the same
20 residence, whether or not one (1) or more facilities, such as
21 heating, toilet, laundry and the like, are shared by the
22 occupants of two (2) or more room groups.
23 (b) A school district of the second, third or fourth class,
24 in addition to any other taxes authorized by law, may provide by
25 ordinance or resolution for the levying of a residential
26 construction tax. Every person who constructs a residence or
27 converts an improvement to real property into a residence within
28 the school district may be taxed at a rate not to exceed two
29 hundred fifty dollars ($250) per residential unit. Housing built
30 exclusively for occupancy by limited income senior citizens
19810H1188B1696 - 9 -
1 shall be exempt from the tax.
2 Section 602.9. Schedule for Implementation of Taxes.--A
3 school district may continue to levy any tax it levied for the
4 school fiscal year 1980-1981 or, if appropriate, calendar year
5 1981, under the authority of the act of December 31, 1965
6 (P.L.1257, No.511), known as "The Local Tax Enabling Act," but
7 in no case may the rate of tax imposed be greater than the rate
8 imposed for the school fiscal year 1980-1981 or, if appropriate,
9 calendar year 1981. For those school districts imposing an
10 amusement tax, real estate transfer tax or residential
11 construction tax for which the rate of tax for the school fiscal
12 year 1980-1981 or, if appropriate, calendar year 1981, was more
13 than the maximum rate authorized in sections 602.4, 602.5 and
14 602.6, the tax rate for any subsequent year shall not exceed the
15 rate of tax imposed for the previous year. No school district
16 may levy any tax under the authority of "The Local Tax Enabling
17 Act," after the school fiscal year 1982-1983. For the school
18 fiscal year 1982-1983 or, if appropriate calendar year 1983, and
19 thereafter, no school district shall impose the personal income
20 tax authorized by section 602.1(b) at a rate that would yield an
21 amount greater than the budgeted amount in dollars of
22 residential property tax reduction plus the budgeted dollar
23 reduction in taxes levied under the authority of "The Local Tax
24 Enabling Act." For the school fiscal year 1982-1983 or if
25 appropriate calendar year 1983 and thereafter, no school
26 district shall impose the corporate net income tax or the
27 business use or occupancy tax authorized by section 602.2 or
28 602.3 at a rate that would yield an amount greater than the
29 budgeted amount in dollars of nonresidential property tax
30 reduction.
19810H1188B1696 - 10 -
1 Section 602.10. Collection of Taxes.--The collection of
2 taxes under section 602.1 through 602.8 shall be collected,
3 where appropriate and not inconsistent, in accordance with the
4 act of December 31, 1965 (P.L.1257, No.511), known as "The Local
5 Tax Enabling Act," except for section 208 thereof.
6 Section 2. Section 670 of the act is repealed.
7 Section 3. Except for administrative provisions and sections
8 602.4, 602.5 and 606.6 which authorize existing taxes, the
9 provisions of this act are nonseverable and if any such
10 provision is held invalid, the remaining provisions of this act
11 shall be void. This act shall be read in pari materia with the
12 companion amendments to the act of December 31, 1965 (P.L.1257,
13 No.511), known as "The Local Tax Enabling Act," implementing
14 school real property tax relief.
15 Section 4. Sections 1 and 3 shall take effect immediately.
16 Section 2 shall take effect for the school fiscal year 1982-1983
17 or, if appropriate, the calendar year 1983.
18 SECTION 1. THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN <--
19 AS THE "PUBLIC SCHOOL CODE OF 1949," IS AMENDED BY ADDING
20 SECTIONS TO READ:
21 SECTION 602.1. PERSONAL INCOME TAX AUTHORIZATION; REDUCTION
22 OF REAL PROPERTY TAX.--(A) FOR THE SCHOOL FISCAL YEAR 1981-
23 1982, OR IF APPROPRIATE, CALENDAR YEAR 1981 AND THEREAFTER, A
24 SCHOOL DISTRICT OF THE SECOND, THIRD OR FOURTH CLASS MAY IMPOSE
25 A TAX ON THE PERSONAL INCOME OF RESIDENTS OF UP TO TWO PER
26 CENTUM (2%) CONSISTENT WITH THE PROVISIONS OF ARTICLE III, ACT
27 OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE "TAX REFORM CODE OF
28 1971." A SCHOOL DISTRICT MAY IMPOSE THE TAX PROVIDED FOR UNDER
29 THIS SUBSECTION, BUT ONLY AT A RATE THAT WILL PROVIDE REVENUES
30 SUBSTANTIALLY EQUAL TO THE TOTAL OF THE REVENUES LOST THROUGH
19810H1188B1696 - 11 -
1 ELIMINATION OF THE TAXES PREVIOUSLY AUTHORIZED UNDER THE ACT OF
2 DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS "THE LOCAL TAX
3 ENABLING ACT."
4 (B) A SCHOOL DISTRICT MAY IMPOSE AN ADDITIONAL PERCENTAGE OF
5 THE TAX ON THE PERSONAL INCOME OF RESIDENTS PROVIDED THAT THERE
6 IS A REDUCTION IN RESIDENTIAL REAL PROPERTY TAX RATES OR
7 ASSESSMENT VALUES SUFFICIENT TO REDUCE REAL PROPERTY TAX
8 REVENUES BY AN AMOUNT SUBSTANTIALLY EQUAL TO THE REVENUE RAISED
9 BY THE ADDITIONAL INCOME TAX. THE COMBINED RATE OF TAX
10 AUTHORIZED BY THIS SUBSECTION, AND THE TAX AUTHORIZED BY
11 SUBSECTION (A), SHALL NOT EXCEED TWO PER CENTUM (2%).
12 (C) A SCHOOL DISTRICT LEVYING THE PERSONAL INCOME TAX
13 AUTHORIZED BY SUBSECTION (A) OR (B) SHALL PROVIDE RELIEF FROM
14 THE TAX FOR PERSONS WHO, BECAUSE OF POVERTY, ARE DETERMINED TO
15 BE IN NEED OF SPECIAL TAX PROVISIONS. SUCH TAX RELIEF SHALL BE
16 IN ACCORDANCE WITH THE SPECIAL TAX PROVISION SCHEDULE IN SECTION
17 304 OF THE "TAX REFORM CODE OF 1971."
18 (D) A SCHOOL DISTRICT LEVYING THE PERSONAL INCOME TAX
19 AUTHORIZED BY SUBSECTION (A) OR (B) MAY PROVIDE RELIEF FROM THE
20 TAX FOR PERSONS WHO, BECAUSE OF AGE, ARE DETERMINED TO BE IN
21 NEED OF SPECIAL TAX PROVISIONS. SUCH TAX RELIEF SHALL BE IN
22 ACCORDANCE WITH SECTION 4, ACT OF MARCH 11, 1971 (P.L.104,
23 NO.3), KNOWN AS THE "SENIOR CITIZENS PROPERTY TAX OR RENT REBATE
24 AND OLDER PERSONS INFLATION NEEDS ACT."
25 (E) UPON WRITTEN NOTIFICATION BY THE SCHOOL DISTRICT OF THE
26 RATE OF PERSONAL INCOME TAX IMPOSED BY THE SCHOOL DISTRICT, AN
27 EMPLOYER SHALL DEDUCT AND WITHHOLD FROM THE COMPENSATION FOR
28 EACH PAYROLL PERIOD OF EACH EMPLOYE WHO IS A RESIDENT OF THAT
29 SCHOOL DISTRICT, A TAX COMPUTED IN SUCH MANNER AS TO RESULT, SO
30 FAR AS PRACTICABLE, IN WITHHOLDING FROM THE EMPLOYE'S
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1 COMPENSATION DURING EACH CALENDAR YEAR AN AMOUNT SUBSTANTIALLY
2 EQUIVALENT TO THE TAX REASONABLY ESTIMATED TO BE DUE FOR EACH
3 YEAR WITH RESPECT TO SUCH COMPENSATION. SUBJECT TO THE
4 FOREGOING, THE ORDINANCE LEVYING THE TAX SHALL PROVIDE FOR
5 WITHHOLDING, COLLECTING AND ENFORCING PROCEDURES WHICH ARE NOT
6 INCONSISTENT WITH THE PROVISIONS OF THE ACT OF DECEMBER 31, 1965
7 (P.L.1257, NO.511), KNOWN AS "THE LOCAL TAX ENABLING ACT,"
8 RELATING TO THE WITHHOLDING OF INCOME TAXES.
9 (F) THE DEPARTMENT OF REVENUE MAY ELECT TO ENTER INTO
10 AGREEMENTS WITH SCHOOL DISTRICTS FOR THE COLLECTION OF TAXES
11 IMPOSED UNDER THIS SECTION.
12 SECTION 602.2. BUSINESS USE OF OCCUPANCY TAX.--(A) A SCHOOL
13 DISTRICT IMPOSING THE ADDITIONAL PERCENTAGE OF INCOME TAX
14 PROVIDED FOR UNDER SECTION 602.1(B), SHALL, IN CONJUNCTION
15 THEREWITH, IMPOSE A TAX ON THE BUSINESS USE OR OCCUPANCY OF REAL
16 PROPERTY WITHIN THE SCHOOL DISTRICT. THE TAX SHALL BE IMPOSED
17 FOR THE PRIVILEGE OF CARRYING ON ANY BUSINESS, TRADE,
18 OCCUPATION, PROFESSION, VOCATION OR ANY OTHER COMMERCIAL
19 INDUSTRIAL OR AGRICULTURAL ACTIVITY ON THE REAL PROPERTY AND
20 SHALL BE LEVIED AT A RATE WHICH PRODUCES REVENUES SUBSTANTIALLY
21 EQUAL TO THE REDUCTION IN NONRESIDENTIAL REAL PROPERTY TAXES.
22 (B) THE FOLLOWING WORDS, TERMS AND PHRASES WHEN USED IN THIS
23 SECTION SHALL HAVE THE MEANINGS ASCRIBED TO THEM HEREIN EXCEPT
24 WHERE THE CONTEXT CLEARLY INDICATES OTHERWISE:
25 (1) "AREA AVAILABLE FOR USE OR OCCUPANCY" SHALL INCLUDE THE
26 WHOLE PORTION OF ANY REAL PROPERTY, ANY STRUCTURE THEREON AND
27 SPACE THEREIN EXCLUSIVE OF SERVICE, UTILITY AND COMMON AREAS
28 CONTROLLED BY THE LANDLORD.
29 (2) "LANDLORD" SHALL INCLUDE IN ADDITION TO THE OWNER OF
30 REAL PROPERTY, ANY PERSON WHO GRANTS THE RIGHT TO USE OR OCCUPY
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1 REAL PROPERTY OR ANY PART THEREOF TO ANY LESSEE, SUBLESSEE,
2 LICENSEE OR CONCESSIONAIRE.
3 (3) "TAXABLE YEAR" SHALL MEAN JULY 1 OF ANY CALENDAR YEAR
4 THROUGH JUNE 30 OF THE FOLLOWING CALENDAR YEAR.
5 (4) "TAXPAYER" SHALL MEAN A TAXABLE USER OR OCCUPIER OF REAL
6 PROPERTY WITHIN THE SCHOOL DISTRICT.
7 (C) THIS TAX SHALL NOT APPLY TO:
8 (1) THE USE OR OCCUPANCY OF REAL PROPERTY TO THE EXTENT THAT
9 THE REAL PROPERTY IS USED OR OCCUPIED AS THE DWELLING OR
10 PRINCIPAL PLACE OF RESIDENCE OF THE USER OR OCCUPIER.
11 (2) THE USE OR OCCUPANCY OF REAL PROPERTY FOR A PURPOSE
12 WHICH EXEMPTS IT FROM LOCAL REAL PROPERTY TAXES.
13 (3) FARMLAND NOT ACTIVELY GRAZED OR PLANTED WITH A CURRENT
14 ANNUAL CROP. NOTHING IN THIS ACT SHALL BE CONSTRUED TO CONFLICT
15 WITH THE PROVISIONS OF THE ACT OF DECEMBER 19, 1974 (P.L.973,
16 NO.319), KNOWN AS THE "PENNSYLVANIA FARMLAND AND FOREST LAND
17 ASSESSMENT ACT OF 1974," OR ANY OTHER SIMILAR LAWS AFFECTING THE
18 VALUATION OF FARMLAND.
19 (D) COMPUTATION OF TAX:
20 (1) THE TAXPAYER SHALL ON OR BEFORE SEPTEMBER 1 OF EACH
21 TAXABLE YEAR COMPUTE THE TAX WHICH IS PAYABLE FOR THE PORTION OF
22 THE PROPERTY WHICH HE USES OR OCCUPIES AND PAY OVER TO THE TAX
23 COLLECTOR FOR THE SCHOOL DISTRICT THE TAX DUE WITHIN TWENTY-FIVE
24 (25) DAYS AFTER THE END OF EACH QUARTER OF THE TAXABLE YEAR.
25 (2) IN THE CASE WHERE THE TOTAL AREA AVAILABLE FOR USE AND
26 OCCUPANCY OF THE PROPERTY IS OCCUPIED BY TENANTS AND NO PORTION
27 IS USED OR OCCUPIED BY THE LANDLORD, THE TAX SHALL BE ALLOCATED
28 BY THE LANDLORD AMONG THE TENANTS ON THE BASIS OF RENTS
29 CONTRACTED FOR BETWEEN THE LANDLORD AND THE TENANTS; IN THE CASE
30 WHERE THE TOTAL AREA AVAILABLE FOR USE OR OCCUPANCY IS USED OR
19810H1188B1696 - 14 -
1 OCCUPIED BY THE LANDLORD AND ONE (1) OR MORE TENANTS, THE TAX
2 SHALL BE ALLOCATED AMONG THE USERS AND OCCUPIERS ON THE BASIS OF
3 THE AREA USED OR OCCUPIED DIVIDED BY THE TOTAL AREA AVAILABLE
4 FOR USE OR OCCUPANCY. THE TAX DUE FOR EACH USER AND OCCUPIER FOR
5 THE QUARTER OF THE TAXABLE YEAR SHALL BE COMPUTED BY MULTIPLYING
6 THE PROPORTION OF THE AREA USED OR OCCUPIED OR THE PORTION OF
7 THE TOTAL RENTALS PAID OR TO BE PAID BY THE USER OR OCCUPIER
8 MULTIPLIED BY THE TOTAL ASSESSED VALUE OF THE PROPERTY
9 MULTIPLIED BY THE RATE OF TAX MULTIPLIED BY THE MONTHS OF ACTUAL
10 USE OF OCCUPANCY DIVIDED BY TWELVE (12). THE USE OR OCCUPANCY OF
11 A PORTION OF THE PROPERTY FOR ANY PERIOD OF TIME DURING A MONTH
12 SHALL BE PRESUMED TO CONSTITUTE THE USE OR OCCUPANCY OF THE
13 PORTION FOR THE ENTIRE MONTH.
14 (3) THE SCHOOL DISTRICT MAY PROVIDE FOR DISCOUNTS NOT TO
15 EXCEED TEN PER CENTUM (10%) OF THE TAX DUE FOR THE ANNUAL
16 PREPAYMENT OF THE TAX BY THE TAXPAYER. UPON THE IMPOSITION OF A
17 BUSINESS USE OR OCCUPANCY TAX THE LANDLORD SHALL PROVIDE A LIST
18 OF HIS TENANTS TO THE TAXING AGENT, TOGETHER WITH THE AREA IN
19 SQUARE FEET THAT EACH TENANT OCCUPIES AND SHALL PROMPTLY REPORT
20 ANY SUBSEQUENT CHANGES OF TENANTS OR AREAS OF OCCUPANCY.
21 (E) IT SHALL BE THE DUTY OF THE DEPARTMENT OF EDUCATION TO
22 DEVELOP A STANDARD FORM TO BE USED BY THE SCHOOL DISTRICTS IN
23 THE COLLECTION OF THE TAX PROVIDED UNDER THIS SECTION.
24 SECTION 602.3. RENT REDUCTIONS.--WITHIN THIRTY (30) DAYS
25 AFTER RECEIPT OF HIS SCHOOL REAL PROPERTY TAX BILL, A LANDLORD
26 SHALL DISCLOSE IN WRITING TO EACH TENANT WHO HAS OCCUPIED A
27 RENTAL UNIT FOR MORE THAN FORTY-FIVE (45) DAYS THE REDUCTION IN
28 REAL PROPERTY TAXES, IF ANY, UNDER SECTION 602.1 OR 602.2 WHICH
29 IS ATTRIBUTABLE TO THAT TENANT'S UNIT. THE AMOUNT OF TAX
30 REDUCTION ATTRIBUTABLE TO EACH UNIT SHALL BE BASED UPON
19810H1188B1696 - 15 -
1 ALLOCATED SQUARE FOOTAGE OCCUPIED OR OTHER REASONABLE CRITERIA.
2 THE RENTAL AMOUNT SPECIFIED IN ANY LEASE SHALL REFLECT ANY
3 REDUCTION IN REAL PROPERTY TAXES REQUIRED BY THIS SECTION.
4 SECTION 602.4. AMUSEMENT TAX.--A SCHOOL DISTRICT OF THE
5 SECOND, THIRD OR FOURTH CLASS, IN ADDITION TO ANY OTHER TAXES
6 AUTHORIZED BY LAW, MAY PROVIDE BY ORDINANCE OR RESOLUTION FOR
7 THE LEVYING OF A TAX ON SALES OF ADMISSION TO PLACES OF
8 AMUSEMENT CONSISTENT WITH THE PROVISIONS OF THE ACT OF DECEMBER
9 31, 1965 (P.L.1257, NO.511), KNOWN AS "THE LOCAL TAX ENABLING
10 ACT." THE RATE OF TAX ON ADMISSIONS TO PLACES OF AMUSEMENT SHALL
11 NOT EXCEED FIVE PER CENTUM (5%) OF THE PRICE OF ADMISSION.
12 SECTION 602.5. REAL ESTATE TRANSFER TAX.--A SCHOOL DISTRICT
13 OF THE SECOND, THIRD OR FOURTH CLASS, IN ADDITION TO ANY OTHER
14 TAXES AUTHORIZED BY LAW, MAY PROVIDE BY ORDINANCE OR RESOLUTION
15 FOR THE LEVYING OF A TAX ON THE TRANSFER OF REAL PROPERTY. THE
16 RATE OF TAX ON THE TRANSFER OF REAL PROPERTY SHALL NOT EXCEED
17 ONE-HALF PER CENTUM (1/2%). SAID SCHOOL DISTRICTS SHALL NOT HAVE
18 AUTHORITY TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE
19 LEVYING, ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF
20 REAL PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE
21 INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE
22 OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER
23 OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED
24 RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART
25 OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY
26 UNOCCUPIED SINGLE-FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER
27 BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE
28 HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS
29 THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL
30 DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM
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1 THEM, OR ON TRANSFER TO NONPROFIT INDUSTRIAL DEVELOPMENT
2 AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A
3 TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE
4 BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE
5 WITHIN THREE (3) MONTHS OF THE DATE OF THE GRANTING OF THE FINAL
6 DECREE IN DIVORCE, OR DECREE OF EQUITABLE DISTRIBUTION OF
7 MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR
8 INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE
9 HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF
10 THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND
11 CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND
12 TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD,
13 BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF
14 PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A
15 CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE
16 UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF
17 THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY
18 GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION OR DEED OF
19 CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS OR
20 RECONVEYANCE OF THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO
21 THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH
22 RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID
23 RECONVEYANCE IS MADE WITHIN ONE (1) YEAR FROM THE DATE OF
24 CONDEMNATION, LEASES OR ON A CONVEYANCE TO A TRUSTEE UNDER A
25 RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING
26 TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF
27 THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND
28 REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR-
29 BORROWER UPON REPAYMENT OF THE DEBT, OR IN ANY SHERIFF SALE IS
30 THE MORTGAGEE WHO INSTITUTED SAID SALE.
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1 SECTION 602.6. TAX RATES.--(A) IF A SCHOOL DISTRICT LEVIES
2 AND COLLECTS A TAX IN ITS FISCAL YEAR 1980-1981 OR, IF
3 APPROPRIATE, CALENDAR YEAR 1981, THAT EXCEEDS THE RATE PROVIDED
4 FOR IN SECTIONS 602.1 TO 602.6, THE SCHOOL DISTRICT MAY CONTINUE
5 TO LEVY AND COLLECT THE TAX AT THE RATE IMPOSED AS OF ITS FISCAL
6 YEAR 1980-1981 OR, IF APPROPRIATE, CALENDAR YEAR 1981.
7 (B) FOR THE SCHOOL FISCAL YEAR 1982-1983 OR, IF APPROPRIATE
8 CALENDAR YEAR 1983, NO SCHOOL DISTRICT SHALL IMPOSE THE PERSONAL
9 INCOME TAX AUTHORIZED BY SECTION 602.1(B) AT A RATE THAT WOULD
10 YIELD AN AMOUNT GREATER THAN THE BUDGETED AMOUNT IN DOLLARS OF
11 RESIDENTIAL PROPERTY TAX REDUCTION PLUS THE BUDGETED DOLLAR
12 REDUCTION IN TAXES LEVIED UNDER THE AUTHORITY OF "THE LOCAL TAX
13 ENABLING ACT." FOR THE SCHOOL FISCAL YEAR 1982-1983 OR IF
14 APPROPRIATE CALENDAR YEAR 1983, NO SCHOOL DISTRICT SHALL IMPOSE
15 THE BUSINESS USE OR OCCUPANCY TAX AUTHORIZED BY SECTION 602.2 AT
16 A RATE THAT WOULD YIELD AN AMOUNT GREATER THAN THE BUDGETED
17 AMOUNT IN DOLLARS OF NONRESIDENTIAL PROPERTY TAX REDUCTION.
18 THEREAFTER, THE PROPER PROPORTION BETWEEN THE SCHOOL INCOME TAX
19 AND THE BUSINESS USE AND OCCUPANCY TAX SHALL BE DETERMINED BY
20 TAKING THE PERCENTAGE OF THE COMBINED BUSINESS USE AND OCCUPANCY
21 TAX AND PERSONAL INCOME TAX COLLECTIONS REALIZED FROM THE
22 BUSINESS USE AND OCCUPANCY TAX FOR THE INITIAL YEAR AND
23 INCREASING OR DECREASING IT BY THE INCREASE OR DECREASE IN THE
24 PERCENTAGE THAT THE TOTAL ASSESSED VALUE OF ALL BUSINESS REAL
25 PROPERTY BEARS TO THE TOTAL ASSESSED VALUE OF ALL REAL PROPERTY
26 IN THE SCHOOL DISTRICT.
27 SECTION 602.7. COLLECTION OF TAXES.--THE COLLECTION OF TAXES
28 UNDER SECTIONS 602.1 TO 602.4 SHALL BE, WHERE APPROPRIATE AND
29 NOT INCONSISTENT, IN ACCORDANCE WITH THE ACT OF DECEMBER 31,
30 1965 (P.L.1257, NO.511), KNOWN AS "THE LOCAL TAX ENABLING ACT,"
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1 EXCEPT FOR SECTIONS 2 AND 8 THEREOF.
2 SECTION 602.8. SCHEDULE OF IMPLEMENTATION OF TAXES.--A
3 SCHOOL DISTRICT MAY CONTINUE TO LEVY ANY TAX IT LEVIED FOR THE
4 SCHOOL FISCAL YEAR 1980-1981, IF APPROPRIATE, CALENDAR YEAR
5 1981, UNDER THE AUTHORITY OF THE ACT OF DECEMBER 31, 1965
6 (P.L.1257, NO.511), KNOWN AS "THE LOCAL TAX ENABLING ACT." NO
7 SCHOOL DISTRICT MAY LEVY ANY TAX UNDER THE AUTHORITY OF "THE
8 LOCAL TAX ENABLING ACT," AFTER THE SCHOOL FISCAL YEAR 1980-1981
9 OR, IF APPROPRIATE, CALENDAR YEAR 1981.
10 SECTION 2. SECTION 679 OF THE ACT IS REPEALED.
11 SECTION 3. EXCEPT FOR THE ADMINISTRATIVE PROVISIONS AND
12 SECTIONS 602.4 AND 602.5 WHICH AUTHORIZE EXISTING TAXES, THE
13 PROVISIONS OF THIS ACT ARE NONSEVERABLE AND IF ANY SUCH
14 PROVISION IS HELD INVALID, THE REMAINING PROVISIONS OF THIS ACT
15 SHALL BE VOID. THIS ACT SHALL BE READ IN PARI MATERIA WITH THE
16 COMPANION AMENDMENTS TO THE ACT OF DECEMBER 31, 1965 (P.L.1257,
17 NO.511), KNOWN AS "THE LOCAL TAX ENABLING ACT," IMPLEMENTING
18 SCHOOL REAL PROPERTY TAX RELIEF.
19 SECTION 4. SECTIONS 1 AND 3 SHALL TAKE EFFECT IMMEDIATELY.
20 SECTION 2 SHALL TAKE EFFECT FOR THE SCHOOL FISCAL YEAR 1982-1983
21 OR, IF APPROPRIATE, THE CALENDAR YEAR 1983.
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