PRINTER'S NO. 2444
No. 1999 Session of 1981
INTRODUCED BY POTT, ITKIN AND DAWIDA, OCTOBER 21, 1981
REFERRED TO COMMITTEE ON URBAN AFFAIRS, OCTOBER 21, 1981
AN ACT 1 Amending the act of August 24, 1961 (P.L.1135, No.508), entitled 2 "An act imposing a tax for general public school purposes in 3 school districts of the first class A on salaries, wages, 4 commissions and other compensation earned by residents 5 thereof, and on the net profits earned from businesses, 6 professions or other activities conducted by residents 7 thereof; providing for its levy and collection; requiring the 8 filing of declarations and returns and the giving of 9 information by employers and by those subject to the tax; 10 imposing on employers the duty of collecting the tax at 11 source; conferring and imposing powers and duties on boards 12 of public education and school treasurers in such districts; 13 providing for the administration and enforcement of the act 14 and imposing penalties for violation thereof," further 15 providing for the withholding procedure by employers of taxes 16 and increasing the interest and penalties assessed for late 17 payments. 18 The General Assembly of the Commonwealth of Pennsylvania 19 hereby enacts as follows: 20 Section 1. Subsection (b) of section 4, act of August 24, 21 1961 (P.L.1135, No.508), entitled "An act imposing a tax for 22 general public school purposes in school districts of the first 23 class A on salaries, wages, commissions and other compensation 24 earned by residents thereof, and on the net profits earned from 25 businesses, professions or other activities conducted by
1 residents thereof; providing for its levy and collection; 2 requiring the filing of declarations and returns and the giving 3 of information by employers and by those subject to the tax; 4 imposing on employers the duty of collecting the tax at source; 5 conferring and imposing powers and duties on boards of public 6 education and school treasurers in such districts; providing for 7 the administration and enforcement of the act and imposing 8 penalties for violation thereof," is amended and subsections are 9 added to read: 10 Section 4. Collection at Source.--* * * 11 (b) Every person and/or resident employer within a school 12 district imposing [a tax under this act] taxes on a person's 13 earnings, who employs one or more persons on a salary, wage, 14 commission or other compensation basis, other than domestic 15 servants, and who withholds, expects to withhold or should 16 withhold from employes an aggregate amount less than two hundred 17 dollars ($200) per month in said taxes, shall deduct those taxes 18 on the salaries, wages, commissions and other compensation due 19 to his employe or employes, monthly or more often than monthly, 20 at the time of payment thereof[, the tax imposed by this act on 21 the salaries, wages, commissions and other compensation due to 22 his employe or employes,] and shall, on or before April 30, July 23 31 and October 31 of the tax year and January 31 of the year 24 next succeeding the tax year, file a return of taxes deducted, 25 on [a form] forms prescribed by the treasurer, and pay to the 26 treasurer the amount of taxes deducted during the preceding 27 three-month periods ending March 31, June 30, September 30 and 28 December 31 of the tax year, respectively. 29 (b.1) Every person and/or resident employer within a school 30 district imposing taxes on a person's earnings, who employs one 19810H1999B2444 - 2 -
1 or more persons on a salary, wage, commission or other 2 compensation basis, other than domestic servants, and who 3 withholds, expects to withhold or should withhold from employes 4 an aggregate amount greater than or equal to two hundred dollars 5 ($200) per month in said taxes, shall deduct those taxes on the 6 salaries, wages, commissions and other compensation due to his 7 employe or employes monthly or more often than monthly, at the 8 time of payment thereof, and shall, on February 15, March 15, 9 May 15, June 15, August 15, September 15, November 15 and 10 December 15 and January 30, April 30, July 30 and October 30 11 file a return of taxes deducted on forms prescribed by the 12 treasurer and pay to the treasurer the amount of taxes deducted 13 during the previous month of the tax year respectively. 14 * * * 15 (g) Every employer who wilfully or negligently fails or 16 omits to make the deductions required by this section shall be 17 liable for payment of the taxes which he was required to 18 withhold to the extent that such taxes have not been recovered 19 from the employe. 20 Section 2. Section 7 of the act is amended to read: 21 Section 7. Interest and Penalties.--If for any reason the 22 tax imposed by this act or any other tax imposed on a person's 23 earnings by school districts of the first class A is not paid 24 when due, interest at the rate of six per centum per annum on 25 the amount of said [tax] taxes or interest at a per annum rate 26 which does not exceed the Federal Reserve Discount Rate in 27 effect for Federal Reserve District Four on December 1 of the 28 preceding tax year, whichever is greater, and an additional 29 penalty of [one-half of one per centum] five per centum of the 30 amount of the unpaid [tax] taxes for each month or fraction 19810H1999B2444 - 3 -
1 thereof during which the [tax remains] taxes remain unpaid, 2 shall be added and collected: Provided, That the additional 3 penalty imposed herein shall not exceed fifty per centum of the 4 unpaid taxes. A school district shall, on or before December 31, 5 establish by resolution the specific per annum interest rate to 6 be imposed on unpaid taxes during the following tax year. Where 7 suit is brought for the recovery of any such tax, the person 8 liable therefor shall, in addition, be liable for the costs of 9 collection and the interest and penalties herein imposed. 10 Section 3. (a) Section 1 of this act shall take effect 11 immediately. 12 (b) Section 2 of this act shall take effect November 30, 13 1981. J14L72RLC/19810H1999B2444 - 4 -