PRINTER'S NO. 2187
No. 1817 Session of 1981
INTRODUCED BY STAIRS, SEPTEMBER 22, 1981
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, SEPTEMBER 22, 1981
AN ACT
1 Amending the act of December 31, 1965 (P.L.1257, No.511),
2 entitled "An act empowering cities of the second class,
3 cities of the second class A, cities of the third class,
4 boroughs, towns, townships of the first class, townships of
5 the second class, school districts of the second class,
6 school districts of the third class and school districts of
7 the fourth class including independent school districts, to
8 levy, assess, collect or to provide for the levying,
9 assessment and collection of certain taxes subject to maximum
10 limitations for general revenue purposes; authorizing the
11 establishment of bureaus and the appointment and compensation
12 of officers, agencies and employes to assess and collect such
13 taxes; providing for joint collection of certain taxes,
14 prescribing certain definitions and other provisions for
15 taxes levied and assessed upon earned income, providing for
16 annual audits and for collection of delinquent taxes, and
17 permitting and requiring penalties to be imposed and
18 enforced, including penalties for disclosure of confidential
19 information, providing an appeal from the ordinance or
20 resolution levying such taxes to the court of quarter
21 sessions and to the Supreme Court and Superior Court,"
22 requiring employers to withhold the earned income tax in all
23 cases.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Section 9, act of December 31, 1965 (P.L.1257,
27 No.511), known as "The Local Tax Enabling Act," amended December
28 12, 1968 (P.L.1203, No.377), is amended to read:
1 Section 9. Register for Earned Income and Occupational
2 Privilege Taxes.--(a) It shall be the duty of the Department of
3 Community Affairs to have available an official continuing
4 register supplemented annually of all earned income and
5 occupational privilege taxes levied under authority of this act.
6 The register and its supplements, hereinafter referred to as the
7 register, shall list such jurisdictions levying earned income
8 and/or occupational privilege taxes, the rate of the tax as
9 stated in the tax levying ordinance or resolution, and the
10 effective rate on resident and nonresident taxpayers, if
11 different from the stated rate because of a coterminous levy,
12 the name and address of the officer responsible for
13 administering the collection of the tax and from whom
14 information, forms for reporting and copies of rules and
15 regulations are available. With each jurisdiction listed, all
16 jurisdictions making coterminous levies shall also be noted and
17 their tax rates shown.
18 (b) Information for the register shall be furnished by the
19 secretary of each taxing body to the Department of Community
20 Affairs in such manner and on such forms as the Department of
21 Community Affairs may prescribe. The information must be
22 received by the Department of Community Affairs by certified
23 mail not later than May 31 of each year to show new tax
24 enactments, repeals and changes. [Failure to comply with this
25 date for filing may result in the omission of the levy from the
26 register for that year.] Failure of the Department of Community
27 Affairs to receive information of taxes continued without change
28 may be construed by the department to mean that the information
29 contained in the previous register remains in force.
30 (c) The Department of Community Affairs shall have the
19810H1817B2187 - 2 -
1 register with such annual supplements as may be required by new
2 tax enactments, repeals or changes available upon request not
3 later than July 1 of each year. The effective period for each
4 register shall be from July 1 of the year in which it is issued
5 to June 30 of the following year.
6 (d) Employers shall [not] be required by any local ordinance
7 to withhold from the wages, salaries, commissions or other
8 compensation of their employes any tax imposed under the
9 provisions of this act, [which is] whether or not listed in the
10 register, [or] and to make reports of wages, salaries,
11 commissions or other compensation in connection with said taxes
12 [not so listed]: Provided, That if the register is not available
13 by July 1, the register of the previous year shall continue
14 temporarily in effect for an additional period not to exceed one
15 year. The provisions of this section shall not affect the
16 liability of any taxpayer for taxes lawfully imposed under this
17 act.
18 (e) Ordinances or resolutions imposing earned income or
19 occupational privilege taxes under authority of this act [may]
20 shall contain provisions requiring employers doing business
21 within the jurisdiction of the political subdivision imposing
22 the tax to withhold the tax from the compensation of those of
23 their employes who are subject to the tax: Provided, That no
24 employer shall be held liable for failure to withhold earned
25 income taxes or for the payment of such withheld tax money to a
26 political subdivision other than the political subdivision
27 entitled to receive such money if such failure to withhold or
28 such incorrect transmittal of withheld taxes arises from
29 incorrect information as to the employe's place of residence
30 submitted by the employe: And provided further, That employers
19810H1817B2187 - 3 -
1 shall not be required by any local ordinance to withhold from
2 compensation for any one of their employes for the occupational
3 privilege tax more than one time in any fiscal period: And
4 provided further, That the occupational privilege tax shall be
5 applicable to employment in the period beginning January 1, of
6 the current year and ending December 31 of the current year,
7 except that taxes imposed for the first time shall become
8 effective from the date specified in the ordinance or
9 resolution, and the tax shall continue in force on a calendar
10 year basis.
11 Section 2. This act shall take effect January 1 of the year
12 next following the date of final enactment.
G20L72DS/19810H1817B2187 - 4 -