PRINTER'S NO. 1685
No. 1335 Session of 1989
INTRODUCED BY DAWIDA, SCANLON AND BODACK, NOVEMBER 6, 1989
REFERRED TO EDUCATION, NOVEMBER 6, 1989
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 powers and duties of treasurer and for interest
16 and penalties.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. Section 5(e) of the act of August 24, 1961
20 (P.L.1135, No.508), referred to as the First Class A School
21 District Earned Income Tax Act, is amended to read:
22 Section 5. Powers and Duties of Treasurer.--* * *
23 (e) Any person aggrieved by any action of the treasurer
24 concerning an issue related to taxes levied under this act must
25 initially request a treasurer's hearing under regulations
1 promulgated by the treasurer. A person aggrieved by the decision
2 at the treasurer's hearing shall have the right of appeal [as
3 provided by law.] under 2 Pa.C.S. Ch. 7 Subch. B (relating to
4 judicial review of local agency action).
5 * * *
6 Section 2. Section 7 of the act, amended June 10, 1982
7 (P.L.456, No.134), is amended to read:
8 Section 7. Interest and Penalties.--If for any reason the
9 tax imposed by this act or any other tax imposed on a person's
10 earnings by school districts of the first class A is not paid
11 when due, interest at the rate of six per centum per annum on
12 the amount of said taxes or interest at a per annum rate which
13 does not exceed the Federal Reserve Discount Rate in effect for
14 Federal Reserve District Four on December 1 of the preceding tax
15 year, whichever is greater, and [an additional] a penalty of
16 [five per centum] one-half of one per centum of the amount of
17 the unpaid taxes for each month or fraction thereof during which
18 the taxes remain unpaid, shall be added and collected[:]. If,
19 however, a person or an employer does not make required
20 deductions and remittance of tax money under section 4 of this
21 act, that person shall be subject to, in lieu of the penalty
22 amount under this section and in addition to the interest amount
23 under this section, an additional penalty of five per centum of
24 the amount of the unpaid taxes for each month or fraction
25 thereof during which the taxes remain unpaid, and this amount
26 shall be added and collected: Provided, That the additional
27 penalty imposed herein shall not exceed fifty per centum of the
28 unpaid taxes. A school district shall, on or before December 31,
29 establish by resolution the specific per annum interest rate to
30 be imposed on unpaid taxes during the following tax year. Where
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1 suit is brought for the recovery of any such tax, the person
2 liable therefor shall, in addition, be liable for the costs of
3 collection and the interest and penalties herein imposed.
4 Section 3. This act shall take effect January 1, 1990, or
5 immediately, whichever is later.
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