PRINTER'S NO. 843
No. 759 Session of 2001
INTRODUCED BY BARD, MICOZZIE, GEIST, YOUNGBLOOD, WILT, BELFANTI,
BUNT, CAWLEY, COY, GODSHALL, HARHAI, LAUGHLIN, McCALL,
McILHINNEY, MELIO, SHANER, E. Z. TAYLOR AND THOMAS,
FEBRUARY 14, 2001
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 14, 2001
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 further providing for earned income taxes.
23 The General Assembly of the Commonwealth of Pennsylvania
24 hereby enacts as follows:
25 Section 1. Division V of section 13 of act of December 31,
26 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, is
27 amended by adding a paragraph to read:
1 Section 13. Earned Income Taxes.--On and after the effective
2 date of this act the remaining provisions of this section shall
3 be included in or construed to be a part of each tax levied and
4 assessed upon earned income by any political subdivision levying
5 and assessing such tax pursuant to this act. The definitions
6 contained in this section shall be exclusive for any tax upon
7 earned income and net profits levied and assessed pursuant to
8 this act, and shall not be altered or changed by any political
9 subdivision levying and assessing such tax.
10 * * *
11 V. Powers and Duties of Officer
12 * * *
13 (i) Notwithstanding any other provision of this act to the
14 contrary, earned income taxes collected from a nonresident
15 taxpayer who is a resident of a municipality or school district
16 that does not levy an earned income tax under this or any other
17 act shall be distributed by the officer as follows:
18 (1) If neither the municipality nor the school district of
19 which the taxpayer is a resident levies an earned income tax
20 under this or any other act, the officer shall distribute the
21 earned income tax collected from the nonresident taxpayer in
22 equal amounts to such municipality and school district.
23 (2) If the municipality of which the taxpayer is a resident
24 levies an earned income tax under this or any other act and the
25 school district of which the taxpayer is a resident does not
26 levy an earned income tax under this or any other act, the
27 officer shall distribute the appropriate distribution to such
28 municipality as required under paragraph (h) and based on the
29 rate of tax imposed by the municipality and then shall
30 distribute the balance of the earned income tax, if any, to such
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1 school district.
2 (3) If the school district of which the taxpayer is a
3 resident levies an earned income tax under this or any other act
4 and the municipality of which the taxpayer is a resident does
5 not levy an earned income tax under this or any other act, the
6 officer shall distribute the appropriate distribution to such
7 school district as required under paragraph (h) and based on the
8 rate of tax imposed by the school district and then shall
9 distribute the balance of the earned income tax, if any, to such
10 municipality.
11 * * *
12 Section 2. This act shall apply to taxes levied for fiscal
13 years beginning on or after January 1, 2001.
14 Section 3. This act shall take effect immediately.
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