PRIOR PRINTER'S NOS. 3183, 3900 PRINTER'S NO. 3994
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 GAMBLE, CLARK, COCHRAN, GRUPPO, KOWALYSHYN, PRATT, SALVATORE, SIEMINSKI AND WILSON, MARCH 26, 1980
AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 30, 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), (9)
3 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
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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 19800H2439B3994 - 3 -
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 19800H2439B3994 - 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 [(10) To levy, assess or collect a tax on admissions to 11 motion picture theatres: Provided, That this limitation (10) 12 shall not apply to cities of the second class.] 13 (11) To levy, assess or collect any tax on occupations using 14 a millage or percentage of any value, a flat rate or any 15 arbitrary value placed on various occupations as a basis for 16 such tax. 17 (12) To levy, assess or collect any per capita or similar 18 head tax. 19 (13) To levy, assess or collect a tax on residential 20 construction. 21 Section 2. Section 8 of the act, amended December 27, 1967 22 (P.L.894, No.404), is amended to read: 23 Section 8. Limitations on Rates of Specific Taxes.--No taxes 24 levied under the provisions of this act shall be levied by any 25 political subdivision on the following subjects exceeding the 26 rates specified in this section: 27 [(1) Per capita, poll or other similar head taxes, ten 28 dollars ($10).] 29 (2) On each dollar of the whole volume of business 30 transacted by wholesale dealers in goods, wares and merchandise, 19800H2439B3994 - 5 -
1 one mill, by retail dealers in goods, wares and merchandise and 2 by proprietors of restaurants or other places where food, drink 3 and refreshments are served, one and one-half mills; except in 4 cities of the second class, where rates shall not exceed one 5 mill on wholesale dealers and two mills on retail dealers and 6 proprietors. No such tax shall be levied on the dollar volume of 7 business transacted by wholesale and retail dealers derived from 8 the resale of goods, wares and merchandise, taken by any dealer 9 as a trade-in or as part payment for other goods, wares and 10 merchandise, except to the extent that the resale price exceeds 11 the trade-in allowance. 12 (3) On wages, salaries, commissions and other earned income 13 of individuals, one percent for cities, boroughs, towns and 14 townships, and two percent for school districts of the second 15 class, school districts of the third class and school districts 16 of the fourth class including independent school districts, 17 notwithstanding the general provisions of this section relative 18 to rate sharing between political subdivisions. 19 (4) On retail sales involving the transfer of title or 20 possession of tangible personal property, two percent. 21 (5) On the transfer of real property, one percent. 22 (6) On admissions to places of amusement, athletic events 23 and the like, and on motion picture theatres [in cities of the 24 second class], ten percent. 25 [(7) Flat rate occupation taxes not using a millage or 26 percentage as a basis, ten dollars ($10).] 27 (8) [Occupational privilege taxes, ten dollars ($10).] 28 Municipal services tax, twenty-five dollars ($25). or forty <-- 29 dollars ($40) in cities of the second class. 30 Except as otherwise provided in this act, at any time two 19800H2439B3994 - 6 -
1 political subdivisions shall impose any one of the above taxes 2 on the same person, subject, business, transaction or privilege, 3 located within both such political subdivisions, during the same 4 year or part of the same year, under the authority of this act 5 then the tax levied by a political subdivision under the 6 authority of this act shall, during the time such duplication of 7 the tax exists, except as hereinafter otherwise provided, be 8 one-half of the rate, as above limited, and such one-half rate 9 shall become effective by virtue of the requirements of this act 10 from the day such duplication becomes effective without any 11 action on the part of the political subdivision imposing the tax 12 under the authority of this act. When any one of the above taxes 13 has been levied under the provisions of this act by one 14 political subdivision and a subsequent levy is made either for 15 the first time or is revived after a lapse of time by another 16 political subdivision on the same person, subject, business, 17 transaction or privilege at a rate that would make the combined 18 levies exceed the limit allowed by this subdivision, the tax of 19 the second political subdivision shall not become effective 20 until the end of the fiscal year for which the prior tax was 21 levied, unless: 22 (1) Notice indicating its intention to make such levy is 23 given to the first taxing body by the second taxing body as 24 follows: (i) when the notice is given to a school district it 25 shall be given at least forty-five days prior to the last day 26 fixed by law for the levy of its school taxes; (ii) when given 27 to any other political subdivision it shall be prior to the 28 first day of January immediately preceding, or if a last day for 29 the adoption of the budget is fixed by law, at least forty-five 30 days prior to such last day; or 19800H2439B3994 - 7 -
1 (2) Unless the first taxing body shall indicate by 2 appropriate resolution its desire to waive notice requirements 3 in which case the levy of the second taxing body shall become 4 effective on such date as may be agreed upon by the two taxing 5 bodies. 6 It is the intent and purpose of this provision to limit rates 7 of taxes referred to in this section so that the entire burden 8 of one tax on a person, subject, business, transaction or 9 privilege shall not exceed the limitations prescribed in this 10 section: Provided, however, That any two political subdivisions 11 which impose any one of the above taxes, on the same person, 12 subject, business, transaction or privilege during the same year 13 or part of the same year may agree among themselves that, 14 instead of limiting their respective rates to one-half of the 15 maximum rate herein provided, they will impose respectively 16 different rates, the total of which shall not exceed the maximum 17 rate as above permitted. 18 [Notwithstanding the provisions of this section, any city of 19 the second class A may enact a tax upon wages, salaries, 20 commissions and other earned income of individuals resident 21 therein, not exceeding one percent, even though a school 22 district levies a similar tax on the same person provided that 23 the aggregate of both taxes does not exceed two percent.] 24 Section 3. Section 9 of the act, amended December 12, 1968 25 (P.L.1203, No.377), is amended to read: 26 Section 9. Register for Earned Income and [Occupational 27 Privilege] Municipal Services Taxes.--It shall be the duty of 28 the Department of Community Affairs to have available an 29 official continuing register supplemented annually of all earned 30 income and [occupational privilege] municipal services taxes 19800H2439B3994 - 8 -
1 levied under authority of this act. The register and its
2 supplements, hereinafter referred to as the register, shall list
3 such jurisdictions levying earned income and/or [occupational
4 privilege] municipal services taxes, the rate of the tax as
5 stated in the tax levying ordinance or resolution, and the
6 effective rate on resident and nonresident taxpayers, if
7 different from the stated rate because of a coterminous levy,
8 the name and address of the officer responsible for
9 administering the collection of the tax and from whom
10 information, forms for reporting and copies of rules and
11 regulations are available. With each jurisdiction listed, all
12 jurisdictions making coterminous levies shall also be noted and
13 their tax rates shown.
14 Information for the register shall be furnished by the
15 secretary of each taxing body to the Department of Community
16 Affairs in such manner and on such forms as the Department of
17 Community Affairs may prescribe. The information must be
18 received by the Department of Community Affairs by certified
19 mail not later than May 31 of each year to show new tax
20 enactments, repeals and changes. Failure to comply with this
21 date for filing may result in the omission of the levy from the
22 register for that year. Failure of the Department of Community
23 Affairs to receive information of taxes continued without change
24 may be construed by the department to mean that the information
25 contained in the previous register remains in force.
26 The Department of Community Affairs shall have the register
27 with such annual supplements as may be required by new tax
28 enactments, repeals or changes available upon request not later
29 than July 1 of each year. The effective period for each register
30 shall be from July 1 of the year in which it is issued to June
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1 30 of the following year. 2 Employers shall not be required by any local ordinance to 3 withhold from the wages, salaries, commissions or other 4 compensation of their employes any tax imposed under the 5 provisions of this act, which is not listed in the register, or 6 make reports of wages, salaries, commissions or other 7 compensation in connection with taxes not so listed: Provided, 8 That if the register is not available by July 1, the register of 9 the previous year shall continue temporarily in effect for an 10 additional period not to exceed one year. The provisions of this 11 section shall not affect the liability of any taxpayer for taxes 12 lawfully imposed under this act. 13 Ordinances or resolutions imposing earned income or 14 [occupational privilege] municipal services taxes under 15 authority of this act may contain provisions requiring employers 16 doing business within the jurisdiction of the political 17 subdivision imposing the tax to withhold the tax from the 18 compensation of those of their employes who are subject to the 19 tax: Provided, That no employer shall be held liable for failure 20 to withhold earned income taxes or for the payment of such 21 withheld tax money to a political subdivision other than the 22 political subdivision entitled to receive such money if such 23 failure to withhold or such incorrect transmittal of withheld 24 taxes arises from incorrect information as to the employe's 25 place of residence submitted by the employe: And provided 26 further, That employers shall not be required by any local 27 ordinance to withhold from compensation for any one of their 28 employes for the [occupational privilege] municipal services tax 29 more than one time in any fiscal period: And provided further, 30 That the [occupational privilege] municipal services tax shall 19800H2439B3994 - 10 -
1 be applicable to employment in the period beginning January 1, 2 of the current year and ending December 31 of the current year, 3 except that taxes imposed for the first time shall become 4 effective from the date specified in the ordinance or 5 resolution, and the tax shall continue in force on a calendar 6 year basis. 7 Section 4. Section 14 of the act, amended October 26, 1972 8 (P.L.1043, No.261), is amended to read: 9 Section 14. Payment of Tax to Other Political Subdivisions 10 or States as Credit or Deduction; Withholding Tax.--[Payment of 11 any tax to any political subdivision pursuant to an ordinance or 12 resolution passed or adopted prior to the effective date of this 13 act shall be credited to and allowed as a deduction from the 14 liability of taxpayers for any like tax respectively on 15 salaries, wages, commissions, other compensation or on net 16 profits of businesses, professions or other activities and for 17 any income tax imposed by any other political subdivision of 18 this Commonwealth under the authority of this act.] 19 Payment of any tax on salaries, wages, commissions, other 20 compensation or on net profits of business, professions or other 21 activities to a political subdivision by residents thereof 22 pursuant to an ordinance or resolution passed or adopted under 23 the authority of this act shall be credited to and allowed as a 24 deduction from the liability of such persons for any other like 25 tax respectively on salaries, wages, commissions, other 26 compensation or on net profits of businesses, professions or 27 other activities imposed by any other political subdivision of 28 this Commonwealth under the authority of this act. 29 [Payment] Fifty percent of any tax paid on income to any 30 political subdivision by residents thereof pursuant to an 19800H2439B3994 - 11 -
1 ordinance or resolution passed or adopted under the authority of 2 this act shall, to the extent that such income includes 3 salaries, wages, commissions, other compensation or net profits 4 of businesses, professions or other activities, but in such 5 proportion as hereinafter set forth, be credited to and allowed 6 as a deduction from the liability of such persons for any other 7 tax on salaries, wages, commissions, other compensation or on 8 net profits of businesses, professions, or other activities 9 imposed by any other political subdivision of this Commonwealth 10 under the authority of [this act.] the act of August 5, 1932 11 (Sp.Sess., P.L.45, No.45), entitled, as amended, "An act 12 empowering cities of the first class to levy, assess and 13 collect, or to provide for the levying, assessment and 14 collection of, certain additional taxes for general revenue 15 purposes; authorizing the establishment of bureaus, and the 16 appointment and compensation of officers and employes to assess 17 and collect such taxes; and permitting penalties to be imposed 18 and enforced." 19 Payment of any tax on income to any state or to any political 20 subdivision thereof by residents thereof, pursuant to any State 21 or local law, may, at the discretion of the Pennsylvania 22 political subdivision imposing such tax, to the extent that such 23 income includes salaries, wages, commissions, or other 24 compensation or net profits of businesses, professions or other 25 activities but in such proportions as hereinafter set forth, be 26 credited to and allowed as a deduction from the liability of 27 such person for any other tax on salaries, wages, commissions, 28 other compensation or net profits of businesses, professions or 29 other activities imposed by any political subdivision of this 30 Commonwealth under the authority of this act, if residents of 19800H2439B3994 - 12 -
1 the political subdivision in Pennsylvania received credits and
2 deductions of a similar kind to a like degree from the tax on
3 income imposed by the other state or political subdivision
4 thereof.
5 Payment of any tax on income to any State other than
6 Pennsylvania or to any political subdivision located outside the
7 boundaries of this Commonwealth, by residents of a political
8 subdivision located in Pennsylvania shall, to the extent that
9 such income includes salaries, wages, commissions, or other
10 compensation or net profits of businesses, professions or other
11 activities but in such proportions as hereinafter set forth, be
12 credited to and allowed as a deduction from the liability of
13 such person for any other tax on salaries, wages, commissions,
14 other compensation or net profits of businesses, professions or
15 other activities imposed by any political subdivision of this
16 Commonwealth under the authority of this act.
17 Where a credit or a deduction is allowable in any of the
18 several cases hereinabove provided, it shall be allowed in
19 proportion to the concurrent periods for which taxes are imposed
20 by the other state or respective political subdivisions, but not
21 in excess of the amount previously paid for a concurrent period.
22 No credit or deduction shall be allowed against any tax on
23 earned income imposed under authority of this act to the extent
24 of the amount of credit or deduction taken for the same period
25 by the taxpayer against any income tax imposed by the
26 Commonwealth of Pennsylvania under section 314 of the act of
27 March 4, 1971 (P.L.6, No.2) known as the "Tax Reform Code of
28 1971," on account of taxes imposed on income by other states or
29 by their political subdivisions.
30 In the case of tax paid on income to any state other than
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1 Pennsylvania or to any political subdivision located outside the 2 boundaries of the Commonwealth by residents of a political 3 subdivision located in Pennsylvania, the credit provided in this 4 section shall not exceed the proportion of the income tax 5 otherwise due that the amount of the taxpayer's income subject 6 to tax by the other jurisdiction bears to his entire taxable 7 income. 8 Section 5. Section 17 of the act is amended to read: 9 Section 17. Tax Limitations.--(a) Over-all Limit of Tax 10 Revenues.--The aggregate amount of all taxes imposed by any 11 political subdivision under this section and in effect during 12 any fiscal year shall not exceed an amount equal to the product 13 obtained by multiplying the latest total market valuation of 14 real estate in such political subdivision, as determined by the 15 board for the assessment and revision of taxes or any similar 16 board established by the assessment laws which determines market 17 values of real estate within the political subdivision, by 18 [twelve] eighteen mills. In school districts of the second 19 class, third class and fourth class and in any political 20 subdivision within a county where no market values of real 21 estate have been determined by the board for the assessment and 22 revision of taxes, or any similar board, the aggregate amount of 23 all taxes imposed under this section and in effect during any 24 fiscal year shall not exceed an amount equal to the product 25 obtained by multiplying the latest total market valuation of 26 real estate in such school district, or other political 27 subdivision, as certified by the State Tax Equalization Board, 28 by [twelve] eighteen mills. In school districts of the third and 29 fourth class, taxes imposed on sales involving the transfer of 30 real property shall not be included in computing the aggregate 19800H2439B3994 - 14 -
1 amount of taxes for any fiscal year in which one hundred or more 2 new homes or other major improvements on real estate were 3 constructed in the school district. 4 The aggregate amount of all taxes imposed by any independent 5 school district under this section during any fiscal year shall 6 not exceed an amount equal to the product obtained by 7 multiplying the latest total valuation of real estate in such 8 district by [fifteen] eighteen mills. 9 (b) Reduction of Rates Where Taxes Exceed Limitations; Use 10 of Excess Moneys.--If, during any fiscal year, it shall appear 11 that the aggregate revenues from taxes levied and collected 12 under the authority of this act will materially exceed the 13 limitations imposed by this act, the political subdivision shall 14 forthwith reduce the rate or rates of such tax or taxes to stay 15 within such limitations as nearly as may be. Any one or more 16 persons liable for the payment of taxes levied and collected 17 under the authority of this act shall have the right to complain 18 to the court of common pleas of the county in an action of 19 mandamus to compel compliance with the preceding provision of 20 this subsection. Tax moneys levied and collected in any fiscal 21 year in excess of the limitations imposed by this act shall not 22 be expended during such year, but shall be deposited in a 23 separate account in the treasury of the political subdivision 24 for expenditure in the following fiscal year. The rates of taxes 25 imposed under this act for the following fiscal year shall be so 26 fixed that the revenues thereby produced, together with the 27 excess tax moneys on deposit as aforesaid, shall not exceed the 28 limitations imposed by this act. 29 For the first calendar year or fiscal year for which any 30 political subdivision levies the income tax provided for in 19800H2439B3994 - 15 -
1 section 13, it shall set its tax rates so that the total 2 budgeted revenues from all local taxes do not exceed one hundred 3 ten percent of revenues from all local taxes in the calendar 4 year or fiscal year immediately preceding the initial levying of 5 the income tax. It is the intent of the General Assembly that 6 revenues from the earned income tax be used first to replace 7 revenues previously received from subjects of taxation which 8 have been eliminated or repealed from or by the provisions of 9 this act. It is also the intent of the General Assembly that 10 revenues from the increased earned income tax which exceed 11 revenues previously received from subjects of taxation which 12 have been eliminated or repealed from or by the provisions of 13 this act be used to replace revenues from the tax on real 14 property by reducing the rate of tax on real property: Provided, 15 That such adjustments in the rates of taxation be made by the 16 local taxing body, and that total revenues in the first year a 17 taxing body uses the increased tax be limited only as provided 18 in this section. 19 Section 6. Section 19 of the act, amended October 4, 1978 20 (P.L.930, No.177), is amended to read: 21 Section 19. Collection of Delinquent [Per Capita, 22 Occupation, Occupational Privilege and] Earned Income and 23 Municipal Services Taxes from Employers, etc.--The tax collector 24 shall demand, receive and collect from all corporations, 25 political subdivisions, associations, companies, firms or 26 individuals, employing persons owing delinquent [per capita, or 27 occupation, occupational privilege and] earned income and 28 municipal services taxes, or whose spouse owes delinquent [per 29 capita, occupation, occupational privilege and] earned income 30 and municipal services taxes, or having in possession unpaid 19800H2439B3994 - 16 -
1 commissions or earnings belonging to any person or persons owing 2 delinquent [per capita, occupation, occupational privilege and] 3 earned income and municipal services taxes, or whose spouse owes 4 delinquent [per capita, occupation, occupational privilege and] 5 earned income and municipal services taxes, upon the 6 presentation of a written notice and demand certifying that the 7 information contained therein is true and correct and containing 8 the name of the taxable or the spouse thereof and the amount of 9 tax due. Upon the presentation of such written notice and 10 demand, it shall be the duty of any such corporation, political 11 subdivision, association, company, firm or individual to deduct 12 from the wages, commissions or earnings of such individual 13 employes, then owing or that shall within sixty days thereafter 14 become due, or from any unpaid commissions or earnings of any 15 such taxable in its or his possession, or that shall within 16 sixty days thereafter come into its or his possession, a sum 17 sufficient to pay the respective amount of the delinquent [per 18 capita, occupation, occupational privilege and] earned income 19 and municipal services taxes and costs, shown upon the written 20 notice or demand, and to pay the same to the tax collector of 21 the taxing district in which such delinquent tax was levied 22 within sixty days after such notice shall have been given. No 23 more than ten percent of the wages, commissions or earnings of 24 the delinquent taxpayer or spouse thereof may be deducted at any 25 one time for delinquent [per capita, occupation, occupational 26 privilege and] earned income and municipal services taxes and 27 costs. Such corporation, political subdivision, association, 28 firm or individual shall be entitled to deduct from the moneys 29 collected from each employe the costs incurred from the extra 30 bookkeeping necessary to record such transactions, not exceeding 19800H2439B3994 - 17 -
1 two percent of the amount of money so collected and paid over to 2 the tax collector. Upon the failure of any such corporation, 3 political subdivision, association, company, firm or individual 4 to deduct the amount of such taxes or to pay the same over to 5 the tax collector, less the cost of bookkeeping involved in such 6 transaction, as herein provided, within the time hereby 7 required, such corporation, political subdivision, association, 8 company, firm or individual shall forfeit and pay the amount of 9 such tax for each such taxable whose taxes are not withheld and 10 paid over, or that are withheld and not paid over together with 11 a penalty of ten percent added thereto, to be recovered by an 12 action of assumpsit in a suit to be instituted by the tax 13 collector, or by the proper authorities of the taxing district, 14 as debts of like amount are now by law recoverable, except that 15 such person shall not have the benefit of any stay of execution 16 or exemption law. The tax collector shall not proceed against a 17 spouse or his employer until he has pursued collection remedies 18 against the delinquent taxpayer and his employer under this 19 section. 20 Section 7. Section 20 of the act is amended to read: 21 Section 20. Collection of Delinquent [Per Capita, 22 Occupation, Occupational Privilege and] Earned Income and 23 Municipal Services Taxes from the Commonwealth.--Upon 24 presentation of a written notice and demand under oath or 25 affirmation, to the State Treasurer or any other fiscal officer 26 of the State, or its boards, authorities, agencies or 27 commissions, it shall be the duty of the treasurer or officer to 28 deduct from the wages then owing, or that shall within sixty 29 days thereafter become due to any employe, a sum sufficient to 30 pay the respective amount of the delinquent [per capita, 19800H2439B3994 - 18 -
1 occupation, occupational privilege and] earned income and 2 municipal services taxes and costs shown on the written notice. 3 The same shall be paid to the tax collector of the taxing 4 district in which said delinquent tax was levied within sixty 5 days after such notice shall have been given. 6 Section 8. During the first year after enactment of this 7 act, the credit added by section 14 of the act shall be 8 applicable only to residents of political subdivisions which 9 previously levied the earned income tax. 10 Section 9. (a) The following acts or parts of acts, their 11 amendments and supplements, are repealed insofar as they relate 12 to the levy, assessment and collection of per capita, residence 13 or occupation taxes: 14 Section 2531, act of June 23, 1931 (P.L.932, No.317), 15 reenacted June 28, 1951 (P.L.662, No.164), known as "The Third 16 Class City Code." 17 Section 1709, act of June 24, 1931 (P.L.1206, No.331), 18 reenacted May 27, 1949 (P.L.1955, No.569), known as "The First 19 Class Township Code." 20 Act of June 26, 1931 (P.L.1379, No.348), entitled, as 21 amended, "An act creating in counties of the second A and third 22 class a board for the assessment and revision of taxes; 23 providing for the appointment of the members of such board by 24 the county commissioners; providing for their salaries, payable 25 by the county; abolishing existing boards; defining the powers 26 and duties of such board; regulating the assessment of persons, 27 property, and occupations for county, borough, town, township, 28 school, and poor purposes; authorizing the appointment of 29 subordinate assessors, a solicitor, engineers, and clerks; 30 providing for their compensation, payable by such counties; 19800H2439B3994 - 19 -
1 abolishing the office of ward, borough, and township assessors, 2 so far as the making of assessments and valuations for taxation 3 is concerned; and providing for the acceptance of this act by 4 cities." 5 Section 905, act of May 1, 1933 (P.L.103, No.69), reenacted 6 July 10, 1947 (P.L.1481, No.567), known as "The Second Class 7 Township Code." 8 Subsection (b) of section 201, section 202 and Articles IV 9 and V, act of May 22, 1933 (P.L.853, No.155), known as "The 10 General County Assessment Law." 11 Act of June 21, 1939 (P.L.626, No.294), entitled "An act 12 providing for and regulating the assessment and valuation of all 13 subjects of taxation in counties of the second class; creating 14 and prescribing the powers and duties of a Board of Property 15 Assessment, Appeals and Review; imposing duties on certain 16 county and city officers; abolishing the board for the 17 assessment and revision of taxes in such counties; and 18 prescribing penalties." 19 Subsection (b) of section 201, subsection (d) of section 202 20 and Articles VI and VII, act of May 21, 1943 (P.L.571, No.254), 21 known as "The Fourth to Eighth Class County Assessment Law." 22 Sections 20, 20.1 and 21, act of May 25, 1945 (P.L.1050, 23 No.394), known as the "Local Tax Collection Law." 24 Sections 675, 676, 677, 679 and 680, act of March 9, 1949 25 (P.L.30, No.14), known as the "Public School Code of 1949." 26 Act of July 19, 1951 (P.L.1026, No.216), entitled, as 27 amended, "An act authorizing political subdivisions, other than 28 cities of the first and second classes and school districts of 29 the first class and first class A, to appoint and pay the 30 compensation of employes to make an assessment list of all 19800H2439B3994 - 20 -
1 inhabitants or residents thereof over eighteen years of age, for 2 taxation purposes." 3 Section 1970, act of July 28, 1953 (P.L.723, No.230), known 4 as the "Second Class County Code." 5 Section 1770, act of August 9, 1955 (P.L.323, No.130), known 6 as "The County Code." 7 Section 1302, act of February 1, 1966 (1965 P.L.1656, 8 No.581), known as "The Borough Code." 9 (b) All acts and parts of acts are repealed insofar as they 10 are inconsistent herewith. 11 Section 10. This act shall take effect January 1, 1981 for 12 political subdivisions operating on a calendar year basis, and 13 on the first day of the fiscal year beginning in the calendar 14 year 1981 for political subdivisions operating on a fiscal year 15 basis. C18L45RLC/19800H2439B3994 - 21 -