PRIOR PRINTER'S NO. 3183 PRINTER'S NO. 3900
No. 2439 Session of 1980
INTRODUCED BY MESSRS. THOMAS, LASHINGER, DeVERTER,
A. K. HUTCHINSON, MRS. LEWIS, MESSRS. PITTS, YAHNER, McVERRY,
HELFRICK, CORNELL, NAHILL, ANDERSON, WEIDNER, CIMINI, CESSAR,
ZORD, D. M. FISHER, NOVAK, D. R. WRIGHT, STUBAN, MRS. TAYLOR,
MESSRS. W. D. HUTCHINSON, ZELLER, GLADECK, WASS, KLINGAMAN
AND GAMBLE, MARCH 26, 1980
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 22, 1980
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 repealing occupation taxes based on a percentage, millage or
23 flat rate basis, repealing per capita taxes, further
24 providing for credits to and deductions from taxes owed to
25 political subdivisions other than the political subdivision
26 of residence and making editorial changes and repeals.
27 The General Assembly of the Commonwealth of Pennsylvania
1 hereby enacts as follows:
2 Section 1. The introductory paragraph and clauses (4), and <--
3 (9) AND (10) of section 2, act of December 31, 1965 (P.L.1257, <--
4 No.511), known as "The Local Tax Enabling Act," the introductory
5 paragraph amended July 1, 1978 (P.L.592, No.113), are amended,
6 and the section is amended by adding clauses to read:
7 Section 2. Delegation of Taxing Powers and Restrictions
8 Thereon.--The duly constituted authorities of the following
9 political subdivisions, cities of the second class, cities of
10 the second class A, cities of the third class, boroughs, towns,
11 townships of the first class, townships of the second class,
12 school districts of the second class, school districts of the
13 third class, and school districts of the fourth class, in all
14 cases including independent school districts, may, in their
15 discretion, by ordinance or resolution, for general revenue
16 purposes, levy, assess and collect or provide for the levying,
17 assessment and collection of such taxes as they shall determine
18 on persons, transactions, [occupations,] privileges, subjects
19 and personal property within the limits of such political
20 subdivisions, and upon the transfer of real property, or of any
21 interest in real property, situate within the political
22 subdivision levying and assessing the tax, regardless of where
23 the instruments making the transfers are made, executed or
24 delivered or where the actual settlements on such transfer take
25 place. The taxing authority may provide that the transferee
26 shall remain liable for any unpaid realty transfer taxes imposed
27 by virtue of this act. Each local taxing authority may, by
28 ordinance or resolution, exempt any person whose total income
29 from all sources is less than [three thousand two hundred <--
30 dollars ($3,200)] FIVE THOUSAND DOLLARS ($5,000) per annum from <--
19800H2439B3900 - 2 -
1 the [per capita or similar head tax, occupation tax and
2 occupational privilege] municipal services tax, or earned income
3 tax, or any portion thereof, and may adopt regulations for the
4 processing of claims for exemptions. Such local authorities
5 shall not have authority by virtue of this act:
6 * * *
7 (4) To levy, assess and collect a tax on goods and articles
8 manufactured in such political subdivision or on the by-products
9 of manufacture, or on minerals, timber, natural resources and
10 farm products produced in such political subdivision or on the
11 preparation or processing thereof for use or market, or on any
12 privilege, act or transaction related to the business of
13 manufacturing, the production, preparation or processing of
14 minerals, timber and natural resources, or farm products, by
15 manufacturers, by producers and by farmers with respect to the
16 goods, articles and products of their own manufacture,
17 production or growth, or on any privilege, act or transaction
18 relating to the business of processing by-products of
19 manufacture, or on the transportation, loading, unloading or
20 dumping or storage of such goods, articles, products or by-
21 products; except that local authorities may levy, assess and
22 collect taxes on the [occupation, occupational privilege, per
23 capita and] earned income [or net profits] or for municipal <--
24 services of natural persons engaged in the above activities
25 whether doing business as individual proprietorship or as
26 members of partnerships or other associations;
27 * * *
28 (9) To levy, assess or collect any tax on individuals for
29 the privilege of engaging in an occupation [(occupational
30 privilege tax)] except that [such] a municipal services tax may
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1 be levied, assessed and collected but only by the [political
2 subdivision] city, borough, town or township of the taxpayer's
3 place of employment.
4 Payment of any [occupational privilege] municipal services
5 tax to any [political subdivision] city, borough, town or
6 township by any person pursuant to an ordinance or resolution
7 passed or adopted under the authority of this act shall be
8 limited to [ten dollars ($10)] twenty-five dollars ($25), OR <--
9 FORTY DOLLARS ($40) IN CITIES OF THE SECOND CLASS, on each
10 person for each calendar year.
11 The situs of [such] the municipal services tax shall be the
12 place of employment, but, in the event a person is engaged in
13 more than one occupation, or an occupation which requires his
14 working in more than one political subdivision during the
15 calendar year, the priority of claim to collect such
16 [occupational privilege] municipal services tax shall be in the
17 following order: first, the [political subdivision] city,
18 borough, town or township in which a person maintains his
19 principal office or is principally employed; second, the
20 [political subdivision] city, borough, town or township in which
21 the person resides and works, if such a tax is levied by that
22 [political subdivision] city, borough, town or township; third,
23 the [political subdivision] city, borough, town or township in
24 which a person is employed and which imposes the tax nearest in
25 miles to the person's home. The place of employment shall be
26 determined as of the day the taxpayer first becomes subject to
27 the tax during the calendar year.
28 It is the intent of this provision that no person shall pay
29 more than [ten dollars ($10)] twenty-five dollars ($25), OR <--
30 FORTY DOLLARS ($40) IN CITIES OF THE SECOND CLASS, in any
19800H2439B3900 - 4 -
1 calendar year as [an occupational privilege] a municipal
2 services tax irrespective of the number of [political
3 subdivisions] cities, boroughs, towns or townships within which
4 such person may be employed within any given calendar year.
5 In case of dispute, a tax receipt of the taxing authority for
6 that calendar year declaring that the taxpayer has made prior
7 payment which constitutes prima facie certification of payment
8 to all other [political subdivisions] cities, boroughs, towns or
9 townships.
10 * * * <--
11 [(10) TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO <--
12 MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10)
13 SHALL NOT APPLY TO CITIES OF THE SECOND CLASS.]
14 (11) To levy, assess or collect any tax on occupations using
15 a millage or percentage of any value, a flat rate or any
16 arbitrary value placed on various occupations as a basis for
17 such tax.
18 (12) To levy, assess or collect any per capita or similar
19 head tax.
20 (13) To levy, assess or collect a tax on residential
21 construction.
22 Section 2. Section 8 of the act, amended December 27, 1967
23 (P.L.894, No.404), is amended to read:
24 Section 8. Limitations on Rates of Specific Taxes.--No taxes
25 levied under the provisions of this act shall be levied by any
26 political subdivision on the following subjects exceeding the
27 rates specified in this section:
28 [(1) Per capita, poll or other similar head taxes, ten
29 dollars ($10).]
30 (2) On each dollar of the whole volume of business
19800H2439B3900 - 5 -
1 transacted by wholesale dealers in goods, wares and merchandise,
2 one mill, by retail dealers in goods, wares and merchandise and
3 by proprietors of restaurants or other places where food, drink
4 and refreshments are served, one and one-half mills; except in
5 cities of the second class, where rates shall not exceed one
6 mill on wholesale dealers and two mills on retail dealers and
7 proprietors. No such tax shall be levied on the dollar volume of
8 business transacted by wholesale and retail dealers derived from
9 the resale of goods, wares and merchandise, taken by any dealer
10 as a trade-in or as part payment for other goods, wares and
11 merchandise, except to the extent that the resale price exceeds
12 the trade-in allowance.
13 (3) On wages, salaries, commissions and other earned income
14 of individuals, one percent for cities, boroughs, towns and
15 townships, and two percent for school districts of the second
16 class, school districts of the third class and school districts
17 of the fourth class including independent school districts,
18 notwithstanding the general provisions of this section relative
19 to rate sharing between political subdivisions.
20 (4) On retail sales involving the transfer of title or
21 possession of tangible personal property, two percent.
22 (5) On the transfer of real property, one percent.
23 (6) On admissions to places of amusement, athletic events
24 and the like, and on motion picture theatres [in cities of the
25 second class], ten percent.
26 [(7) Flat rate occupation taxes not using a millage or
27 percentage as a basis, ten dollars ($10).]
28 (8) [Occupational privilege taxes, ten dollars ($10).]
29 Municipal services tax, twenty-five dollars ($25), OR FORTY <--
30 DOLLARS ($40) IN CITIES OF THE SECOND CLASS.
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1 Except as otherwise provided in this act, at any time two
2 political subdivisions shall impose any one of the above taxes
3 on the same person, subject, business, transaction or privilege,
4 located within both such political subdivisions, during the same
5 year or part of the same year, under the authority of this act
6 then the tax levied by a political subdivision under the
7 authority of this act shall, during the time such duplication of
8 the tax exists, except as hereinafter otherwise provided, be
9 one-half of the rate, as above limited, and such one-half rate
10 shall become effective by virtue of the requirements of this act
11 from the day such duplication becomes effective without any
12 action on the part of the political subdivision imposing the tax
13 under the authority of this act. When any one of the above taxes
14 has been levied under the provisions of this act by one
15 political subdivision and a subsequent levy is made either for
16 the first time or is revived after a lapse of time by another
17 political subdivision on the same person, subject, business,
18 transaction or privilege at a rate that would make the combined
19 levies exceed the limit allowed by this subdivision, the tax of
20 the second political subdivision shall not become effective
21 until the end of the fiscal year for which the prior tax was
22 levied, unless:
23 (1) Notice indicating its intention to make such levy is
24 given to the first taxing body by the second taxing body as
25 follows: (i) when the notice is given to a school district it
26 shall be given at least forty-five days prior to the last day
27 fixed by law for the levy of its school taxes; (ii) when given
28 to any other political subdivision it shall be prior to the
29 first day of January immediately preceding, or if a last day for
30 the adoption of the budget is fixed by law, at least forty-five
19800H2439B3900 - 7 -
1 days prior to such last day; or
2 (2) Unless the first taxing body shall indicate by
3 appropriate resolution its desire to waive notice requirements
4 in which case the levy of the second taxing body shall become
5 effective on such date as may be agreed upon by the two taxing
6 bodies.
7 It is the intent and purpose of this provision to limit rates
8 of taxes referred to in this section so that the entire burden
9 of one tax on a person, subject, business, transaction or
10 privilege shall not exceed the limitations prescribed in this
11 section: Provided, however, That any two political subdivisions
12 which impose any one of the above taxes, on the same person,
13 subject, business, transaction or privilege during the same year
14 or part of the same year may agree among themselves that,
15 instead of limiting their respective rates to one-half of the
16 maximum rate herein provided, they will impose respectively
17 different rates, the total of which shall not exceed the maximum
18 rate as above permitted.
19 [Notwithstanding the provisions of this section, any city of
20 the second class A may enact a tax upon wages, salaries,
21 commissions and other earned income of individuals resident
22 therein, not exceeding one percent, even though a school
23 district levies a similar tax on the same person provided that
24 the aggregate of both taxes does not exceed two percent.]
25 Section 3. Section 9 of the act, amended December 12, 1968
26 (P.L.1203, No.377), is amended to read:
27 Section 9. Register for Earned Income and [Occupational
28 Privilege] Municipal Services Taxes.--It shall be the duty of
29 the Department of Community Affairs to have available an
30 official continuing register supplemented annually of all earned
19800H2439B3900 - 8 -
1 income and [occupational privilege] municipal services taxes
2 levied under authority of this act. The register and its
3 supplements, hereinafter referred to as the register, shall list
4 such jurisdictions levying earned income and/or [occupational
5 privilege] municipal services taxes, the rate of the tax as
6 stated in the tax levying ordinance or resolution, and the
7 effective rate on resident and nonresident taxpayers, if
8 different from the stated rate because of a coterminous levy,
9 the name and address of the officer responsible for
10 administering the collection of the tax and from whom
11 information, forms for reporting and copies of rules and
12 regulations are available. With each jurisdiction listed, all
13 jurisdictions making coterminous levies shall also be noted and
14 their tax rates shown.
15 Information for the register shall be furnished by the
16 secretary of each taxing body to the Department of Community
17 Affairs in such manner and on such forms as the Department of
18 Community Affairs may prescribe. The information must be
19 received by the Department of Community Affairs by certified
20 mail not later than May 31 of each year to show new tax
21 enactments, repeals and changes. Failure to comply with this
22 date for filing may result in the omission of the levy from the
23 register for that year. Failure of the Department of Community
24 Affairs to receive information of taxes continued without change
25 may be construed by the department to mean that the information
26 contained in the previous register remains in force.
27 The Department of Community Affairs shall have the register
28 with such annual supplements as may be required by new tax
29 enactments, repeals or changes available upon request not later
30 than July 1 of each year. The effective period for each register
19800H2439B3900 - 9 -
1 shall be from July 1 of the year in which it is issued to June
2 30 of the following year.
3 Employers shall not be required by any local ordinance to
4 withhold from the wages, salaries, commissions or other
5 compensation of their employes any tax imposed under the
6 provisions of this act, which is not listed in the register, or
7 make reports of wages, salaries, commissions or other
8 compensation in connection with taxes not so listed: Provided,
9 That if the register is not available by July 1, the register of
10 the previous year shall continue temporarily in effect for an
11 additional period not to exceed one year. The provisions of this
12 section shall not affect the liability of any taxpayer for taxes
13 lawfully imposed under this act.
14 Ordinances or resolutions imposing earned income or
15 [occupational privilege] municipal services taxes under
16 authority of this act may contain provisions requiring employers
17 doing business within the jurisdiction of the political
18 subdivision imposing the tax to withhold the tax from the
19 compensation of those of their employes who are subject to the
20 tax: Provided, That no employer shall be held liable for failure
21 to withhold earned income taxes or for the payment of such
22 withheld tax money to a political subdivision other than the
23 political subdivision entitled to receive such money if such
24 failure to withhold or such incorrect transmittal of withheld
25 taxes arises from incorrect information as to the employe's
26 place of residence submitted by the employe: And provided
27 further, That employers shall not be required by any local
28 ordinance to withhold from compensation for any one of their
29 employes for the [occupational privilege] municipal services tax
30 more than one time in any fiscal period: And provided further,
19800H2439B3900 - 10 -
1 That the [occupational privilege] municipal services tax shall
2 be applicable to employment in the period beginning January 1,
3 of the current year and ending December 31 of the current year,
4 except that taxes imposed for the first time shall become
5 effective from the date specified in the ordinance or
6 resolution, and the tax shall continue in force on a calendar
7 year basis.
8 Section 4. Section 14 of the act, amended October 26, 1972
9 (P.L.1043, No.261), is amended to read:
10 Section 14. Payment of Tax to Other Political Subdivisions
11 or States as Credit or Deduction; Withholding Tax.--[Payment of
12 any tax to any political subdivision pursuant to an ordinance or
13 resolution passed or adopted prior to the effective date of this
14 act shall be credited to and allowed as a deduction from the
15 liability of taxpayers for any like tax respectively on
16 salaries, wages, commissions, other compensation or on net
17 profits of businesses, professions or other activities and for
18 any income tax imposed by any other political subdivision of
19 this Commonwealth under the authority of this act.]
20 Payment of any tax on salaries, wages, commissions, other
21 compensation or on net profits of business, professions or other
22 activities to a political subdivision by residents thereof
23 pursuant to an ordinance or resolution passed or adopted under
24 the authority of this act shall be credited to and allowed as a
25 deduction from the liability of such persons for any other like
26 tax respectively on salaries, wages, commissions, other
27 compensation or on net profits of businesses, professions or
28 other activities imposed by any other political subdivision of
29 this Commonwealth under the authority of this act.
30 [Payment] Fifty percent of any tax paid on income to any
19800H2439B3900 - 11 -
1 political subdivision by residents thereof pursuant to an
2 ordinance or resolution passed or adopted under the authority of
3 this act shall, to the extent that such income includes
4 salaries, wages, commissions, other compensation or net profits
5 of businesses, professions or other activities, but in such
6 proportion as hereinafter set forth, be credited to and allowed
7 as a deduction from the liability of such persons for any other
8 tax on salaries, wages, commissions, other compensation or on
9 net profits of businesses, professions, or other activities
10 imposed by any other political subdivision of this Commonwealth
11 under the authority of [this act.] the act of August 5, 1932
12 (Sp.Sess., P.L.45, No.45), entitled, as amended, "An act
13 empowering cities of the first class to levy, assess and
14 collect, or to provide for the levying, assessment and
15 collection of, certain additional taxes for general revenue
16 purposes; authorizing the establishment of bureaus, and the
17 appointment and compensation of officers and employes to assess
18 and collect such taxes; and permitting penalties to be imposed
19 and enforced."
20 Payment of any tax on income to any state or to any political
21 subdivision thereof by residents thereof, pursuant to any State
22 or local law, may, at the discretion of the Pennsylvania
23 political subdivision imposing such tax, to the extent that such
24 income includes salaries, wages, commissions, or other
25 compensation or net profits of businesses, professions or other
26 activities but in such proportions as hereinafter set forth, be
27 credited to and allowed as a deduction from the liability of
28 such person for any other tax on salaries, wages, commissions,
29 other compensation or net profits of businesses, professions or
30 other activities imposed by any political subdivision of this
19800H2439B3900 - 12 -
1 Commonwealth under the authority of this act, if residents of
2 the political subdivision in Pennsylvania received credits and
3 deductions of a similar kind to a like degree from the tax on
4 income imposed by the other state or political subdivision
5 thereof.
6 Payment of any tax on income to any State other than
7 Pennsylvania or to any political subdivision located outside the
8 boundaries of this Commonwealth, by residents of a political
9 subdivision located in Pennsylvania shall, to the extent that
10 such income includes salaries, wages, commissions, or other
11 compensation or net profits of businesses, professions or other
12 activities but in such proportions as hereinafter set forth, be
13 credited to and allowed as a deduction from the liability of
14 such person for any other tax on salaries, wages, commissions,
15 other compensation or net profits of businesses, professions or
16 other activities imposed by any political subdivision of this
17 Commonwealth under the authority of this act.
18 Where a credit or a deduction is allowable in any of the
19 several cases hereinabove provided, it shall be allowed in
20 proportion to the concurrent periods for which taxes are imposed
21 by the other state or respective political subdivisions, but not
22 in excess of the amount previously paid for a concurrent period.
23 No credit or deduction shall be allowed against any tax on
24 earned income imposed under authority of this act to the extent
25 of the amount of credit or deduction taken for the same period
26 by the taxpayer against any income tax imposed by the
27 Commonwealth of Pennsylvania under section 314 of the act of
28 March 4, 1971 (P.L.6, No.2) known as the "Tax Reform Code of
29 1971," on account of taxes imposed on income by other states or
30 by their political subdivisions.
19800H2439B3900 - 13 -
1 In the case of tax paid on income to any state other than
2 Pennsylvania or to any political subdivision located outside the
3 boundaries of the Commonwealth by residents of a political
4 subdivision located in Pennsylvania, the credit provided in this
5 section shall not exceed the proportion of the income tax
6 otherwise due that the amount of the taxpayer's income subject
7 to tax by the other jurisdiction bears to his entire taxable
8 income.
9 Section 5. Section 17 of the act is amended to read:
10 Section 17. Tax Limitations.--(a) Over-all Limit of Tax
11 Revenues.--The aggregate amount of all taxes imposed by any
12 political subdivision under this section and in effect during
13 any fiscal year shall not exceed an amount equal to the product
14 obtained by multiplying the latest total market valuation of
15 real estate in such political subdivision, as determined by the
16 board for the assessment and revision of taxes or any similar
17 board established by the assessment laws which determines market
18 values of real estate within the political subdivision, by
19 [twelve] eighteen mills. In school districts of the second
20 class, third class and fourth class and in any political
21 subdivision within a county where no market values of real
22 estate have been determined by the board for the assessment and
23 revision of taxes, or any similar board, the aggregate amount of
24 all taxes imposed under this section and in effect during any
25 fiscal year shall not exceed an amount equal to the product
26 obtained by multiplying the latest total market valuation of
27 real estate in such school district, or other political
28 subdivision, as certified by the State Tax Equalization Board,
29 by [twelve] eighteen mills. In school districts of the third and
30 fourth class, taxes imposed on sales involving the transfer of
19800H2439B3900 - 14 -
1 real property shall not be included in computing the aggregate
2 amount of taxes for any fiscal year in which one hundred or more
3 new homes or other major improvements on real estate were
4 constructed in the school district.
5 The aggregate amount of all taxes imposed by any independent
6 school district under this section during any fiscal year shall
7 not exceed an amount equal to the product obtained by
8 multiplying the latest total valuation of real estate in such
9 district by [fifteen] eighteen mills.
10 (b) Reduction of Rates Where Taxes Exceed Limitations; Use
11 of Excess Moneys.--If, during any fiscal year, it shall appear
12 that the aggregate revenues from taxes levied and collected
13 under the authority of this act will materially exceed the
14 limitations imposed by this act, the political subdivision shall
15 forthwith reduce the rate or rates of such tax or taxes to stay
16 within such limitations as nearly as may be. Any one or more
17 persons liable for the payment of taxes levied and collected
18 under the authority of this act shall have the right to complain
19 to the court of common pleas of the county in an action of
20 mandamus to compel compliance with the preceding provision of
21 this subsection. Tax moneys levied and collected in any fiscal
22 year in excess of the limitations imposed by this act shall not
23 be expended during such year, but shall be deposited in a
24 separate account in the treasury of the political subdivision
25 for expenditure in the following fiscal year. The rates of taxes
26 imposed under this act for the following fiscal year shall be so
27 fixed that the revenues thereby produced, together with the
28 excess tax moneys on deposit as aforesaid, shall not exceed the
29 limitations imposed by this act.
30 For the first calendar year or fiscal year for which any
19800H2439B3900 - 15 -
1 political subdivision levies the income tax provided for in
2 section 13, it shall set its tax rates so that the total
3 budgeted revenues from all local taxes do not exceed one hundred
4 ten percent of revenues from all local taxes in the calendar
5 year or fiscal year immediately preceding the initial levying of
6 the income tax. It is the intent of the General Assembly that
7 revenues from the earned income tax be used first to replace
8 revenues previously received from subjects of taxation which
9 have been eliminated or repealed from or by the provisions of
10 this act. It is also the intent of the General Assembly that
11 revenues from the increased earned income tax which exceed
12 revenues previously received from subjects of taxation which
13 have been eliminated or repealed from or by the provisions of
14 this act be used to replace revenues from the tax on real
15 property by reducing the rate of tax on real property: Provided,
16 That such adjustments in the rates of taxation be made by the
17 local taxing body, and that total revenues in the first year a
18 taxing body uses the increased tax be limited only as provided
19 in this section.
20 Section 6. Section 19 of the act, amended October 4, 1978
21 (P.L.930, No.177), is amended to read:
22 Section 19. Collection of Delinquent [Per Capita,
23 Occupation, Occupational Privilege and] Earned Income and
24 Municipal Services Taxes from Employers, etc.--The tax collector
25 shall demand, receive and collect from all corporations,
26 political subdivisions, associations, companies, firms or
27 individuals, employing persons owing delinquent [per capita, or
28 occupation, occupational privilege and] earned income and
29 municipal services taxes, or whose spouse owes delinquent [per
30 capita, occupation, occupational privilege and] earned income
19800H2439B3900 - 16 -
1 and municipal services taxes, or having in possession unpaid
2 commissions or earnings belonging to any person or persons owing
3 delinquent [per capita, occupation, occupational privilege and]
4 earned income and municipal services taxes, or whose spouse owes
5 delinquent [per capita, occupation, occupational privilege and]
6 earned income and municipal services taxes, upon the
7 presentation of a written notice and demand certifying that the
8 information contained therein is true and correct and containing
9 the name of the taxable or the spouse thereof and the amount of
10 tax due. Upon the presentation of such written notice and
11 demand, it shall be the duty of any such corporation, political
12 subdivision, association, company, firm or individual to deduct
13 from the wages, commissions or earnings of such individual
14 employes, then owing or that shall within sixty days thereafter
15 become due, or from any unpaid commissions or earnings of any
16 such taxable in its or his possession, or that shall within
17 sixty days thereafter come into its or his possession, a sum
18 sufficient to pay the respective amount of the delinquent [per
19 capita, occupation, occupational privilege and] earned income
20 and municipal services taxes and costs, shown upon the written
21 notice or demand, and to pay the same to the tax collector of
22 the taxing district in which such delinquent tax was levied
23 within sixty days after such notice shall have been given. No
24 more than ten percent of the wages, commissions or earnings of
25 the delinquent taxpayer or spouse thereof may be deducted at any
26 one time for delinquent [per capita, occupation, occupational
27 privilege and] earned income and municipal services taxes and
28 costs. Such corporation, political subdivision, association,
29 firm or individual shall be entitled to deduct from the moneys
30 collected from each employe the costs incurred from the extra
19800H2439B3900 - 17 -
1 bookkeeping necessary to record such transactions, not exceeding
2 two percent of the amount of money so collected and paid over to
3 the tax collector. Upon the failure of any such corporation,
4 political subdivision, association, company, firm or individual
5 to deduct the amount of such taxes or to pay the same over to
6 the tax collector, less the cost of bookkeeping involved in such
7 transaction, as herein provided, within the time hereby
8 required, such corporation, political subdivision, association,
9 company, firm or individual shall forfeit and pay the amount of
10 such tax for each such taxable whose taxes are not withheld and
11 paid over, or that are withheld and not paid over together with
12 a penalty of ten percent added thereto, to be recovered by an
13 action of assumpsit in a suit to be instituted by the tax
14 collector, or by the proper authorities of the taxing district,
15 as debts of like amount are now by law recoverable, except that
16 such person shall not have the benefit of any stay of execution
17 or exemption law. The tax collector shall not proceed against a
18 spouse or his employer until he has pursued collection remedies
19 against the delinquent taxpayer and his employer under this
20 section.
21 Section 7. Section 20 of the act is amended to read:
22 Section 20. Collection of Delinquent [Per Capita,
23 Occupation, Occupational Privilege and] Earned Income and
24 Municipal Services Taxes from the Commonwealth.--Upon
25 presentation of a written notice and demand under oath or
26 affirmation, to the State Treasurer or any other fiscal officer
27 of the State, or its boards, authorities, agencies or
28 commissions, it shall be the duty of the treasurer or officer to
29 deduct from the wages then owing, or that shall within sixty
30 days thereafter become due to any employe, a sum sufficient to
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1 pay the respective amount of the delinquent [per capita,
2 occupation, occupational privilege and] earned income and
3 municipal services taxes and costs shown on the written notice.
4 The same shall be paid to the tax collector of the taxing
5 district in which said delinquent tax was levied within sixty
6 days after such notice shall have been given.
7 Section 8. During the first year after enactment of this
8 act, the credit added by section 14 of the act shall be
9 applicable only to residents of political subdivisions which
10 previously levied the earned income tax.
11 Section 9. (a) The following acts or parts of acts, their
12 amendments and supplements, are repealed insofar as they relate
13 to the levy, assessment and collection of per capita, RESIDENCE <--
14 or occupation taxes:
15 Section 2531, act of June 23, 1931 (P.L.932, No.317),
16 reenacted June 28, 1951 (P.L.662, No.164), known as "The Third
17 Class City Code."
18 Section 1709, act of June 24, 1931 (P.L.1206, No.331),
19 reenacted May 27, 1949 (P.L.1955, No.569), known as "The First
20 Class Township Code."
21 Act of June 26, 1931 (P.L.1379, No.348), entitled, as
22 amended, "An act creating in counties of the second A and third
23 class a board for the assessment and revision of taxes;
24 providing for the appointment of the members of such board by
25 the county commissioners; providing for their salaries, payable
26 by the county; abolishing existing boards; defining the powers
27 and duties of such board; regulating the assessment of persons,
28 property, and occupations for county, borough, town, township,
29 school, and poor purposes; authorizing the appointment of
30 subordinate assessors, a solicitor, engineers, and clerks;
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1 providing for their compensation, payable by such counties;
2 abolishing the office of ward, borough, and township assessors,
3 so far as the making of assessments and valuations for taxation
4 is concerned; and providing for the acceptance of this act by
5 cities."
6 Section 905, act of May 1, 1933 (P.L.103, No.69), reenacted
7 July 10, 1947 (P.L.1481, No.567), known as "The Second Class
8 Township Code."
9 Subsection (b) of section 201, section 202 and Articles IV
10 and V, act of May 22, 1933 (P.L.853, No.155), known as "The
11 General County Assessment Law."
12 Act of June 21, 1939 (P.L.626, No.294), entitled "An act
13 providing for and regulating the assessment and valuation of all
14 subjects of taxation in counties of the second class; creating
15 and prescribing the powers and duties of a Board of Property
16 Assessment, Appeals and Review; imposing duties on certain
17 county and city officers; abolishing the board for the
18 assessment and revision of taxes in such counties; and
19 prescribing penalties."
20 Subsection (b) of section 201, subsection (d) of section 202
21 and Articles VI and VII, act of May 21, 1943 (P.L.571, No.254),
22 known as "The Fourth to Eighth Class County Assessment Law."
23 Sections 20, 20.1 and 21, act of May 25, 1945 (P.L.1050,
24 No.394), known as the "Local Tax Collection Law."
25 Sections 655, 656, 674, 675, 676, 677, 679 and 680, act of <--
26 March 9, 1949 (P.L.30, No.14), known as the "Public School Code
27 of 1949."
28 Act of July 19, 1951 (P.L.1026, No.216), entitled, as
29 amended, "An act authorizing political subdivisions, other than
30 cities of the first and second classes and school districts of
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1 the first class and first class A, to appoint and pay the
2 compensation of employes to make an assessment list of all
3 inhabitants or residents thereof over eighteen years of age, for
4 taxation purposes."
5 Section 1970, act of July 28, 1953 (P.L.723, No.230), known
6 as the "Second Class County Code."
7 Section 1770, act of August 9, 1955 (P.L.323, No.130), known
8 as "The County Code."
9 Section 1302, act of February 1, 1966 (1965 P.L.1656,
10 No.581), known as "The Borough Code."
11 (b) All acts and parts of acts are repealed insofar as they
12 are inconsistent herewith.
13 Section 10. This act shall take effect January 1, 1981 for
14 political subdivisions operating on a calendar year basis, and
15 on the first day of the fiscal year beginning in the calendar
16 year 1980 1981 for political subdivisions operating on a fiscal <--
17 year basis.
18
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