SENATE AMENDED
PRIOR PRINTER'S NO. 226 PRINTER'S NO. 4780
No. 197 Session of 2003
INTRODUCED BY DeLUCA, WHEATLEY, FRANKEL, PISTELLA, COSTA,
GERGELY AND KOTIK, FEBRUARY 11, 2003
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, NOVEMBER 18, 2004
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 DELEGATION OF TAXING POWERS AND <--
23 RESTRICTIONS THEREON, FOR LIMITATIONS ON RATES OF SPECIFIC
24 TAXES AND FOR the appointment of a single collector of taxes;
25 and making a repeal.
26 The General Assembly of the Commonwealth of Pennsylvania
27 hereby enacts as follows:
28 Section 1. Section 10 of the act of December 31, 1965 <--
29 (P.L.1257, No.511), known as The Local Tax Enabling Act, is
1 amended to read:
2 SECTION 1. SECTION 2 OF THE ACT OF DECEMBER 31, 1965 <--
3 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, AMENDED
4 DECEMBER 9, 2002 (P.L.1364, NO.166), IS AMENDED TO READ:
5 SECTION 2. DELEGATION OF TAXING POWERS AND RESTRICTIONS
6 THEREON.--THE DULY CONSTITUTED AUTHORITIES OF THE FOLLOWING
7 POLITICAL SUBDIVISIONS, CITIES OF THE SECOND CLASS, CITIES OF
8 THE SECOND CLASS A, CITIES OF THE THIRD CLASS, BOROUGHS, TOWNS,
9 TOWNSHIPS OF THE FIRST CLASS, TOWNSHIPS OF THE SECOND CLASS,
10 SCHOOL DISTRICTS OF THE SECOND CLASS, SCHOOL DISTRICTS OF THE
11 THIRD CLASS, AND SCHOOL DISTRICTS OF THE FOURTH CLASS, IN ALL
12 CASES INCLUDING INDEPENDENT SCHOOL DISTRICTS, MAY, IN THEIR
13 DISCRETION, BY ORDINANCE OR RESOLUTION, FOR GENERAL REVENUE
14 PURPOSES, LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
15 ASSESSMENT AND COLLECTION OF SUCH TAXES AS THEY SHALL DETERMINE
16 ON PERSONS, TRANSACTIONS, OCCUPATIONS, PRIVILEGES, SUBJECTS AND
17 PERSONAL PROPERTY WITHIN THE LIMITS OF SUCH POLITICAL
18 SUBDIVISIONS, AND UPON THE TRANSFER OF REAL PROPERTY, OR OF ANY
19 INTEREST IN REAL PROPERTY, SITUATE WITHIN THE POLITICAL
20 SUBDIVISION LEVYING AND ASSESSING THE TAX, REGARDLESS OF WHERE
21 THE INSTRUMENTS MAKING THE TRANSFERS ARE MADE, EXECUTED OR
22 DELIVERED OR WHERE THE ACTUAL SETTLEMENTS ON SUCH TRANSFER TAKE
23 PLACE. THE TAXING AUTHORITY MAY PROVIDE THAT THE TRANSFEREE
24 SHALL REMAIN LIABLE FOR ANY UNPAID REALTY TRANSFER TAXES IMPOSED
25 BY VIRTUE OF THIS ACT. EACH LOCAL TAXING AUTHORITY MAY, BY
26 ORDINANCE OR RESOLUTION, EXEMPT ANY PERSON WHOSE TOTAL INCOME
27 FROM ALL SOURCES IS LESS THAN [TEN THOUSAND DOLLARS ($10,000)]
28 TWELVE THOUSAND DOLLARS ($12,000) PER ANNUM FROM THE PER CAPITA
29 OR SIMILAR HEAD TAX, OCCUPATION TAX AND [OCCUPATIONAL PRIVILEGE
30 TAX] EMERGENCY AND MUNICIPAL SERVICES TAX, OR EARNED INCOME TAX,
20030H0197B4780 - 2 -
1 OR ANY PORTION THEREOF, AND MAY ADOPT REGULATIONS FOR THE
2 PROCESSING OF CLAIMS FOR EXEMPTIONS. SUCH LOCAL AUTHORITIES
3 SHALL NOT HAVE AUTHORITY BY VIRTUE OF THIS ACT:
4 (1) TO LEVY, ASSESS AND COLLECT OR PROVIDE FOR THE LEVYING,
5 ASSESSMENT AND COLLECTION OF ANY TAX ON THE TRANSFER OF REAL
6 PROPERTY WHEN THE TRANSFER IS BY WILL OR MORTGAGE OR THE
7 INTESTATE LAWS OF THIS COMMONWEALTH OR ON A TRANSFER BY THE
8 OWNER OF PREVIOUSLY OCCUPIED RESIDENTIAL PREMISES TO A BUILDER
9 OF NEW RESIDENTIAL PREMISES WHEN SUCH PREVIOUSLY OCCUPIED
10 RESIDENTIAL PREMISES IS TAKEN IN TRADE BY SUCH BUILDER AS PART
11 OF THE CONSIDERATION FROM THE PURCHASER OF A NEW PREVIOUSLY
12 UNOCCUPIED SINGLE FAMILY RESIDENTIAL PREMISES OR ON A TRANSFER
13 BETWEEN CORPORATIONS OPERATING HOUSING PROJECTS PURSUANT TO THE
14 HOUSING AND REDEVELOPMENT ASSISTANCE LAW AND THE SHAREHOLDERS
15 THEREOF, OR ON A TRANSFER BETWEEN NONPROFIT INDUSTRIAL
16 DEVELOPMENT AGENCIES AND INDUSTRIAL CORPORATIONS PURCHASING FROM
17 THEM, OR ON TRANSFER TO OR FROM NONPROFIT INDUSTRIAL DEVELOPMENT
18 AGENCIES, OR ON A TRANSFER BETWEEN HUSBAND AND WIFE, OR ON A
19 TRANSFER BETWEEN PERSONS WHO WERE PREVIOUSLY HUSBAND AND WIFE
20 BUT WHO HAVE SINCE BEEN DIVORCED; PROVIDED SUCH TRANSFER IS MADE
21 WITHIN THREE MONTHS OF THE DATE OF THE GRANTING OF THE FINAL
22 DECREE IN DIVORCE, OR THE DECREE OF EQUITABLE DISTRIBUTION OF
23 MARITAL PROPERTY, WHICHEVER IS LATER, AND THE PROPERTY OR
24 INTEREST THEREIN, SUBJECT TO SUCH TRANSFER, WAS ACQUIRED BY THE
25 HUSBAND AND WIFE, OR HUSBAND OR WIFE, PRIOR TO THE GRANTING OF
26 THE FINAL DECREE IN DIVORCE, OR ON A TRANSFER BETWEEN PARENT AND
27 CHILD OR THE SPOUSE OF SUCH A CHILD, OR BETWEEN PARENT AND
28 TRUSTEE FOR THE BENEFIT OF A CHILD OR THE SPOUSE OF SUCH CHILD,
29 OR ON A TRANSFER BETWEEN A GRANDPARENT AND GRANDCHILD OR THE
30 SPOUSE OF SUCH GRANDCHILD, OR ON A TRANSFER BETWEEN BROTHER AND
20030H0197B4780 - 3 -
1 SISTER OR BROTHER AND BROTHER OR SISTER AND SISTER OR THE SPOUSE
2 OF SUCH BROTHER OR SISTER, OR ON A TRANSFER TO A CONSERVANCY
3 WHICH POSSESSES A TAX-EXEMPT STATUS PURSUANT TO SECTION
4 501(C)(3) OF THE INTERNAL REVENUE CODE, AND WHICH HAS AS ITS
5 PRIMARY PURPOSE THE PRESERVATION OF LAND FOR HISTORIC,
6 RECREATIONAL, SCENIC, AGRICULTURAL OR OPEN SPACE OPPORTUNITIES,
7 BY AND BETWEEN A PRINCIPAL AND STRAW PARTY FOR THE PURPOSE OF
8 PLACING A MORTGAGE OR GROUND RENT UPON THE PREMISES, OR ON A
9 CORRECTIONAL DEED WITHOUT CONSIDERATION, OR ON A TRANSFER TO THE
10 UNITED STATES, THE COMMONWEALTH OF PENNSYLVANIA, OR TO ANY OF
11 THEIR INSTRUMENTALITIES, AGENCIES OR POLITICAL SUBDIVISIONS, BY
12 GIFT, DEDICATION OR DEED IN LIEU OF CONDEMNATION, OR DEED OF
13 CONFIRMATION IN CONNECTION WITH CONDEMNATION PROCEEDINGS, OR
14 RECONVEYANCE BY THE CONDEMNING BODY OF THE PROPERTY CONDEMNED TO
15 THE OWNER OF RECORD AT THE TIME OF CONDEMNATION WHICH
16 RECONVEYANCE MAY INCLUDE PROPERTY LINE ADJUSTMENTS PROVIDED SAID
17 RECONVEYANCE IS MADE WITHIN ONE YEAR FROM THE DATE OF
18 CONDEMNATION, LEASES, OR ON A CONVEYANCE TO A TRUSTEE UNDER A
19 RECORDED TRUST AGREEMENT FOR THE EXPRESS PURPOSE OF HOLDING
20 TITLE IN TRUST AS SECURITY FOR A DEBT CONTRACTED AT THE TIME OF
21 THE CONVEYANCE UNDER WHICH THE TRUSTEE IS NOT THE LENDER AND
22 REQUIRING THE TRUSTEE TO MAKE RECONVEYANCE TO THE GRANTOR-
23 BORROWER UPON THE REPAYMENT OF THE DEBT, OR A TRANSFER WITHIN A
24 FAMILY FROM A SOLE PROPRIETOR FAMILY MEMBER TO A FAMILY FARM
25 CORPORATION, OR IN ANY SHERIFF SALE INSTITUTED BY A MORTGAGEE IN
26 WHICH THE PURCHASER OF SAID SHERIFF SALE IS THE MORTGAGEE WHO
27 INSTITUTED SAID SALE, OR ON A PRIVILEGE, TRANSACTION, SUBJECT,
28 OCCUPATION OR PERSONAL PROPERTY WHICH IS NOW OR DOES HEREAFTER
29 BECOME SUBJECT TO A STATE TAX OR LICENSE FEE;
30 (2) TO LEVY, ASSESS OR COLLECT A TAX ON THE GROSS RECEIPTS
20030H0197B4780 - 4 -
1 FROM UTILITY SERVICE OF ANY PERSON OR COMPANY WHOSE RATES AND
2 SERVICES ARE FIXED AND REGULATED BY THE PENNSYLVANIA PUBLIC
3 UTILITY COMMISSION OR ON ANY PUBLIC UTILITY SERVICES RENDERED BY
4 ANY SUCH PERSON OR COMPANY OR ON ANY PRIVILEGE OR TRANSACTION
5 INVOLVING THE RENDERING OF ANY SUCH PUBLIC UTILITY SERVICE;
6 (3) EXCEPT ON SALES OF ADMISSION TO PLACES OF AMUSEMENT OR
7 ON SALES OR OTHER TRANSFERS OF TITLE OR POSSESSION OF PROPERTY,
8 TO LEVY, ASSESS OR COLLECT A TAX ON THE PRIVILEGE OF EMPLOYING
9 SUCH TANGIBLE PROPERTY AS IS NOW OR DOES HEREAFTER BECOME
10 SUBJECT TO A STATE TAX; AND FOR THE PURPOSES OF THIS CLAUSE,
11 REAL PROPERTY RENTED FOR CAMPING PURPOSES SHALL NOT BE
12 CONSIDERED A PLACE OF AMUSEMENT.
13 (4) TO LEVY, ASSESS AND COLLECT A TAX ON GOODS AND ARTICLES
14 MANUFACTURED IN SUCH POLITICAL SUBDIVISION OR ON THE BY-PRODUCTS
15 OF MANUFACTURE, OR ON MINERALS, TIMBER, NATURAL RESOURCES AND
16 FARM PRODUCTS PRODUCED IN SUCH POLITICAL SUBDIVISION OR ON THE
17 PREPARATION OR PROCESSING THEREOF FOR USE OR MARKET, OR ON ANY
18 PRIVILEGE, ACT OR TRANSACTION RELATED TO THE BUSINESS OF
19 MANUFACTURING, THE PRODUCTION, PREPARATION OR PROCESSING OF
20 MINERALS, TIMBER AND NATURAL RESOURCES, OR FARM PRODUCTS, BY
21 MANUFACTURERS, BY PRODUCERS AND BY FARMERS WITH RESPECT TO THE
22 GOODS, ARTICLES AND PRODUCTS OF THEIR OWN MANUFACTURE,
23 PRODUCTION OR GROWTH, OR ON ANY PRIVILEGE, ACT OR TRANSACTION
24 RELATING TO THE BUSINESS OF PROCESSING BY-PRODUCTS OF
25 MANUFACTURE, OR ON THE TRANSPORTATION, LOADING, UNLOADING OR
26 DUMPING OR STORAGE OF SUCH GOODS, ARTICLES, PRODUCTS OR BY-
27 PRODUCTS; EXCEPT THAT LOCAL AUTHORITIES MAY LEVY, ASSESS AND
28 COLLECT TAXES ON THE OCCUPATION, [OCCUPATIONAL PRIVILEGE]
29 EMERGENCY AND MUNICIPAL TAX, PER CAPITA AND EARNED INCOME OR NET
30 PROFITS OF NATURAL PERSONS ENGAGED IN THE ABOVE ACTIVITIES
20030H0197B4780 - 5 -
1 WHETHER DOING BUSINESS AS INDIVIDUAL PROPRIETORSHIP OR AS
2 MEMBERS OF PARTNERSHIPS OR OTHER ASSOCIATIONS;
3 (5) TO LEVY, ASSESS OR COLLECT A TAX ON SALARIES, WAGES,
4 COMMISSIONS, COMPENSATION AND EARNED INCOME OF NONRESIDENTS OF
5 THE POLITICAL SUBDIVISIONS: PROVIDED, THAT THIS LIMITATION (5)
6 SHALL APPLY ONLY TO SCHOOL DISTRICTS OF THE SECOND, THIRD AND
7 FOURTH CLASSES;
8 (6) TO LEVY, ASSESS OR COLLECT A TAX ON PERSONAL PROPERTY
9 SUBJECT TO TAXATION BY COUNTIES OR ON PERSONAL PROPERTY OWNED BY
10 PERSONS, ASSOCIATIONS AND CORPORATIONS SPECIFICALLY EXEMPTED BY
11 LAW FROM TAXATION UNDER THE COUNTY PERSONAL PROPERTY TAX LAW:
12 PROVIDED, THAT THIS LIMITATION (6) SHALL NOT APPLY TO CITIES OF
13 THE SECOND CLASS;
14 (7) TO LEVY, ASSESS OR COLLECT A TAX ON MEMBERSHIP IN OR
15 MEMBERSHIP DUES, FEES OR ASSESSMENT OF CHARITABLE, RELIGIOUS,
16 BENEFICIAL OR NONPROFIT ORGANIZATIONS INCLUDING BUT NOT LIMITED
17 TO SPORTSMENS, RECREATIONAL, GOLF AND TENNIS CLUBS, GIRL AND BOY
18 SCOUT TROOPS AND COUNCILS;
19 (8) TO LEVY, ASSESS OR COLLECT ANY TAX ON A MOBILEHOME OR
20 HOUSE TRAILER SUBJECT TO A REAL PROPERTY TAX UNLESS THE SAME TAX
21 IS LEVIED, ASSESSED AND COLLECTED ON OTHER REAL PROPERTY IN THE
22 POLITICAL SUBDIVISION.
23 (9) TO LEVY, ASSESS OR COLLECT ANY TAX ON INDIVIDUALS FOR
24 THE PRIVILEGE OF ENGAGING IN AN OCCUPATION [(OCCUPATIONAL
25 PRIVILEGE TAX)] EMERGENCY AND MUNICIPAL SERVICES TAX EXCEPT THAT
26 SUCH A TAX MAY BE LEVIED, ASSESSED AND COLLECTED ONLY BY THE
27 POLITICAL SUBDIVISION OF THE TAXPAYER'S PLACE OF EMPLOYMENT.
28 PAYMENT OF ANY [OCCUPATIONAL PRIVILEGE TAX] EMERGENCY AND
29 MUNICIPAL SERVICES TAX TO ANY POLITICAL SUBDIVISION BY ANY
30 PERSON PURSUANT TO AN ORDINANCE OR RESOLUTION PASSED OR ADOPTED
20030H0197B4780 - 6 -
1 UNDER THE AUTHORITY OF THIS ACT SHALL BE [LIMITED TO TEN DOLLARS
2 ($10)] NO LESS THAN TEN DOLLARS ($10) NOR MORE THAN FIFTY-TWO
3 DOLLARS ($52) ON EACH PERSON FOR EACH CALENDAR YEAR.
4 THE SITUS OF SUCH TAX SHALL BE THE PLACE OF EMPLOYMENT, BUT,
5 IN THE EVENT A PERSON IS ENGAGED IN MORE THAN ONE OCCUPATION, OR
6 AN OCCUPATION WHICH REQUIRES HIS WORKING IN MORE THAN ONE
7 POLITICAL SUBDIVISION DURING THE CALENDAR YEAR, THE PRIORITY OF
8 CLAIM TO COLLECT SUCH [OCCUPATIONAL PRIVILEGE TAX] EMERGENCY AND
9 MUNICIPAL SERVICES TAX SHALL BE IN THE FOLLOWING ORDER: FIRST,
10 THE POLITICAL SUBDIVISION IN WHICH A PERSON MAINTAINS HIS
11 PRINCIPAL OFFICE OR IS PRINCIPALLY EMPLOYED; SECOND, THE
12 POLITICAL SUBDIVISION IN WHICH THE PERSON RESIDES AND WORKS, IF
13 SUCH A TAX IS LEVIED BY THAT POLITICAL SUBDIVISION; THIRD, THE
14 POLITICAL SUBDIVISION IN WHICH A PERSON IS EMPLOYED AND WHICH
15 IMPOSES THE TAX NEAREST IN MILES TO THE PERSON'S HOME. THE PLACE
16 OF EMPLOYMENT SHALL BE DETERMINED AS OF THE DAY THE TAXPAYER
17 FIRST BECOMES SUBJECT TO THE TAX DURING THE CALENDAR YEAR, AND
18 THE TAX SHALL BE PRORATED BASED UPON THE NUMBER OF DAYS
19 REMAINING IN THE CALENDAR YEAR ON THAT DAY. THE TAXING AUTHORITY
20 MAY AUTHORIZE PAYMENT OF THE TAX ON A QUARTERLY OR MORE FREQUENT
21 BASIS.
22 IT IS THE INTENT OF THIS PROVISION THAT NO PERSON SHALL PAY
23 MORE THAN [TEN DOLLARS ($10)] FIFTY-TWO DOLLARS ($52) IN ANY
24 CALENDAR YEAR AS AN [OCCUPATIONAL PRIVILEGE TAX] EMERGENCY AND
25 MUNICIPAL SERVICES TAX IRRESPECTIVE OF THE NUMBER OF POLITICAL
26 SUBDIVISIONS WITHIN WHICH SUCH PERSON MAY BE EMPLOYED WITHIN ANY
27 GIVEN CALENDAR YEAR.
28 IN CASE OF DISPUTE, A TAX RECEIPT OF THE TAXING AUTHORITY FOR
29 THAT CALENDAR YEAR DECLARING THAT THE TAXPAYER HAS MADE PRIOR
30 PAYMENT WHICH CONSTITUTES PRIMA FACIE CERTIFICATION OF PAYMENT
20030H0197B4780 - 7 -
1 TO ALL OTHER POLITICAL SUBDIVISIONS.
2 (10) TO LEVY, ASSESS OR COLLECT A TAX ON ADMISSIONS TO
3 MOTION PICTURE THEATRES: PROVIDED, THAT THIS LIMITATION (10)
4 SHALL NOT APPLY TO CITIES OF THE SECOND CLASS.
5 (11) TO LEVY, ASSESS OR COLLECT A TAX ON THE CONSTRUCTION OF
6 OR IMPROVEMENT TO RESIDENTIAL DWELLINGS OR UPON THE APPLICATION
7 FOR OR ISSUANCE OF PERMITS FOR THE CONSTRUCTION OF OR
8 IMPROVEMENTS TO RESIDENTIAL DWELLINGS.
9 (12) TO LEVY, ASSESS AND COLLECT A MERCANTILE OR BUSINESS
10 PRIVILEGE TAX ON GROSS RECEIPTS OR PART THEREOF WHICH ARE: (I)
11 DISCOUNTS ALLOWED TO PURCHASERS AS CASH DISCOUNTS FOR PROMPT
12 PAYMENT OF THEIR BILLS; (II) CHARGES ADVANCED BY A SELLER FOR
13 FREIGHT, DELIVERY OR OTHER TRANSPORTATION FOR THE PURCHASER IN
14 ACCORDANCE WITH THE TERMS OF A CONTRACT OF SALE; (III) RECEIVED
15 UPON THE SALE OF AN ARTICLE OF PERSONAL PROPERTY WHICH WAS
16 ACQUIRED BY THE SELLER AS A TRADE-IN TO THE EXTENT THAT THE
17 GROSS RECEIPTS IN THE SALE OF THE ARTICLE TAKEN IN TRADE DOES
18 NOT EXCEED THE AMOUNT OF TRADE-IN ALLOWANCE MADE IN ACQUIRING
19 SUCH ARTICLE; (IV) REFUNDS, CREDITS OR ALLOWANCES GIVEN TO A
20 PURCHASER ON ACCOUNT OF DEFECTS IN GOODS SOLD OR MERCHANDISE
21 RETURNED; (V) PENNSYLVANIA SALES TAX; (VI) BASED ON THE VALUE OF
22 EXCHANGES OR TRANSFERS BETWEEN ONE SELLER AND ANOTHER SELLER WHO
23 TRANSFERS PROPERTY WITH THE UNDERSTANDING THAT PROPERTY OF AN
24 IDENTICAL DESCRIPTION WILL BE RETURNED AT A SUBSEQUENT DATE;
25 HOWEVER, WHEN SELLERS ENGAGED IN SIMILAR LINES OF BUSINESS
26 EXCHANGE PROPERTY AND ONE OF THEM MAKES PAYMENT TO THE OTHER IN
27 ADDITION TO THE PROPERTY EXCHANGED, THE ADDITIONAL PAYMENT
28 RECEIVED MAY BE INCLUDED IN THE GROSS RECEIPTS OF THE SELLER
29 RECEIVING SUCH ADDITIONAL CASH PAYMENTS; (VII) OF SELLERS FROM
30 SALES TO OTHER SELLERS IN THE SAME LINE WHERE THE SELLER
20030H0197B4780 - 8 -
1 TRANSFERS THE TITLE OR POSSESSION AT THE SAME PRICE FOR WHICH
2 THE SELLER ACQUIRED THE MERCHANDISE; OR (VIII) TRANSFERS BETWEEN
3 ONE DEPARTMENT, BRANCH OR DIVISION OF A CORPORATION OR OTHER
4 BUSINESS ENTITY OF GOODS, WARES AND MERCHANDISE TO ANOTHER
5 DEPARTMENT, BRANCH OR DIVISION OF THE SAME CORPORATION OR
6 BUSINESS ENTITY AND WHICH ARE RECORDED ON THE BOOKS TO REFLECT
7 SUCH INTERDEPARTMENTAL TRANSACTIONS.
8 (13) TO LEVY, ASSESS OR COLLECT AN AMUSEMENT OR ADMISSIONS
9 TAX ON MEMBERSHIP, MEMBERSHIP DUES, FEES OR ASSESSMENTS,
10 DONATIONS, CONTRIBUTIONS OR MONETARY CHARGES OF ANY CHARACTER
11 WHATSOEVER PAID BY THE GENERAL PUBLIC, OR A LIMITED OR SELECTED
12 NUMBER THEREOF, FOR SUCH PERSONS TO ENTER INTO ANY PLACE,
13 INDOORS OR OUTDOORS, TO ENGAGE IN ANY ACTIVITIES, THE
14 PREDOMINANT PURPOSE OR NATURE OF WHICH IS EXERCISE, FITNESS,
15 HEALTH MAINTENANCE, IMPROVEMENT OR REHABILITATION, HEALTH OR
16 NUTRITION EDUCATION, OR WEIGHT CONTROL.
17 SECTION 2. SECTION 8 OF THE ACT, AMENDED OR ADDED OCTOBER
18 11, 1984 (P.L.885, NO.172 AND JULY 9, 1987 (P.L.203, NO.30), IS
19 AMENDED TO READ:
20 SECTION 8. LIMITATIONS ON RATES OF SPECIFIC TAXES.--NO TAXES
21 LEVIED UNDER THE PROVISIONS OF THIS ACT SHALL BE LEVIED BY ANY
22 POLITICAL SUBDIVISION ON THE FOLLOWING SUBJECTS EXCEEDING THE
23 RATES SPECIFIED IN THIS SECTION:
24 (1) PER CAPITA, POLL OR OTHER SIMILAR HEAD TAXES, TEN
25 DOLLARS ($10).
26 (2) ON EACH DOLLAR OF THE WHOLE VOLUME OF BUSINESS
27 TRANSACTED BY WHOLESALE DEALERS IN GOODS, WARES AND MERCHANDISE,
28 ONE MILL, BY RETAIL DEALERS IN GOODS, WARES AND MERCHANDISE AND
29 BY PROPRIETORS OF RESTAURANTS OR OTHER PLACES WHERE FOOD, DRINK
30 AND REFRESHMENTS ARE SERVED, ONE AND ONE-HALF MILLS; EXCEPT IN
20030H0197B4780 - 9 -
1 CITIES OF THE SECOND CLASS, WHERE RATES SHALL NOT EXCEED ONE
2 MILL ON WHOLESALE DEALERS AND TWO MILLS ON RETAIL DEALERS AND
3 PROPRIETORS. NO SUCH TAX SHALL BE LEVIED ON THE DOLLAR VOLUME OF
4 BUSINESS TRANSACTED BY WHOLESALE AND RETAIL DEALERS DERIVED FROM
5 THE RESALE OF GOODS, WARES AND MERCHANDISE, TAKEN BY ANY DEALER
6 AS A TRADE-IN OR AS PART PAYMENT FOR OTHER GOODS, WARES AND
7 MERCHANDISE, EXCEPT TO THE EXTENT THAT THE RESALE PRICE EXCEEDS
8 THE TRADE-IN ALLOWANCE.
9 (3) ON WAGES, SALARIES, COMMISSIONS AND OTHER EARNED INCOME
10 OF INDIVIDUALS, ONE PERCENT.
11 (4) ON RETAIL SALES INVOLVING THE TRANSFER OF TITLE OR
12 POSSESSION OF TANGIBLE PERSONAL PROPERTY, TWO PERCENT.
13 (5) ON THE TRANSFER OF REAL PROPERTY, ONE PERCENT.
14 (6) ON ADMISSIONS TO PLACES OF AMUSEMENT, ATHLETIC EVENTS
15 AND THE LIKE, AND ON MOTION PICTURE THEATRES IN CITIES OF THE
16 SECOND CLASS, TEN PERCENT.
17 (7) FLAT RATE OCCUPATION TAXES NOT USING A MILLAGE OR
18 PERCENTAGE AS A BASIS, TEN DOLLARS ($10).
19 (8) [OCCUPATIONAL PRIVILEGE TAXES, TEN DOLLARS ($10).]
20 EMERGENCY AND MUNICIPAL SERVICES TAXES, FIFTY-TWO DOLLARS ($52).
21 (9) ON ADMISSIONS TO SKI FACILITIES, TEN PERCENT. THE TAX
22 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
23 PERCENT OF THE COST OF THE LIFT TICKET. THE LIFT TICKET SHALL
24 INCLUDE ALL COSTS OF ADMISSIONS TO THE SKI FACILITY.
25 (10) ON ADMISSIONS TO GOLF COURSES, TEN PERCENT. THE TAX
26 BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL NOT EXCEED FORTY
27 PERCENT OF THE GREENS FEE. THE GREENS FEE SHALL INCLUDE ALL
28 COSTS OF ADMISSIONS TO THE GOLF COURSE.
29 (11) ON ADMISSIONS TO BOWLING ALLEYS OR BOWLING LANES, TEN
30 PERCENT. THE TAX BASE UPON WHICH THE TAX SHALL BE LEVIED SHALL
20030H0197B4780 - 10 -
1 NOT EXCEED FORTY PERCENT OF THE CHARGE IMPOSED UPON A PATRON FOR
2 THE SALE OF ADMISSION TO OR THE PRIVILEGE OF ADMISSION TO A
3 BOWLING ALLEY OR BOWLING LANE TO ENGAGE IN ONE OR MORE GAMES OF
4 BOWLING.
5 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, AT ANY TIME TWO
6 POLITICAL SUBDIVISIONS SHALL IMPOSE ANY ONE OF THE ABOVE TAXES
7 ON THE SAME PERSON, SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE,
8 LOCATED WITHIN BOTH SUCH POLITICAL SUBDIVISIONS, DURING THE SAME
9 YEAR OR PART OF THE SAME YEAR, UNDER THE AUTHORITY OF THIS ACT
10 THEN THE TAX LEVIED BY A POLITICAL SUBDIVISION UNDER THE
11 AUTHORITY OF THIS ACT SHALL, DURING THE TIME SUCH DUPLICATION OF
12 THE TAX EXISTS, EXCEPT AS HEREINAFTER OTHERWISE PROVIDED, BE
13 ONE-HALF OF THE RATE, AS ABOVE LIMITED, AND SUCH ONE-HALF RATE
14 SHALL BECOME EFFECTIVE BY VIRTUE OF THE REQUIREMENTS OF THIS ACT
15 FROM THE DAY SUCH DUPLICATION BECOMES EFFECTIVE WITHOUT ANY
16 ACTION ON THE PART OF THE POLITICAL SUBDIVISION IMPOSING THE TAX
17 UNDER THE AUTHORITY OF THIS ACT. WHEN ANY ONE OF THE ABOVE TAXES
18 HAS BEEN LEVIED UNDER THE PROVISIONS OF THIS ACT BY ONE
19 POLITICAL SUBDIVISION AND A SUBSEQUENT LEVY IS MADE EITHER FOR
20 THE FIRST TIME OR IS REVIVED AFTER A LAPSE OF TIME BY ANOTHER
21 POLITICAL SUBDIVISION ON THE SAME PERSON, SUBJECT, BUSINESS,
22 TRANSACTION OR PRIVILEGE AT A RATE THAT WOULD MAKE THE COMBINED
23 LEVIES EXCEED THE LIMIT ALLOWED BY THIS SUBDIVISION, THE TAX OF
24 THE SECOND POLITICAL SUBDIVISION SHALL NOT BECOME EFFECTIVE
25 UNTIL THE END OF THE FISCAL YEAR FOR WHICH THE PRIOR TAX WAS
26 LEVIED, UNLESS:
27 (1) NOTICE INDICATING ITS INTENTION TO MAKE SUCH LEVY IS
28 GIVEN TO THE FIRST TAXING BODY BY THE SECOND TAXING BODY AS
29 FOLLOWS: (I) WHEN THE NOTICE IS GIVEN TO A SCHOOL DISTRICT IT
30 SHALL BE GIVEN AT LEAST FORTY-FIVE DAYS PRIOR TO THE LAST DAY
20030H0197B4780 - 11 -
1 FIXED BY LAW FOR THE LEVY OF ITS SCHOOL TAXES; (II) WHEN GIVEN
2 TO ANY OTHER POLITICAL SUBDIVISION IT SHALL BE PRIOR TO THE
3 FIRST DAY OF JANUARY IMMEDIATELY PRECEDING, OR IF A LAST DAY FOR
4 THE ADOPTION OF THE BUDGET IS FIXED BY LAW, AT LEAST FORTY-FIVE
5 DAYS PRIOR TO SUCH LAST DAY; OR
6 (2) UNLESS THE FIRST TAXING BODY SHALL INDICATE BY
7 APPROPRIATE RESOLUTION ITS DESIRE TO WAIVE NOTICE REQUIREMENTS
8 IN WHICH CASE THE LEVY OF THE SECOND TAXING BODY SHALL BECOME
9 EFFECTIVE ON SUCH DATE AS MAY BE AGREED UPON BY THE TWO TAXING
10 BODIES.
11 IT IS THE INTENT AND PURPOSE OF THIS PROVISION TO LIMIT RATES
12 OF TAXES REFERRED TO IN THIS SECTION SO THAT THE ENTIRE BURDEN
13 OF ONE TAX ON A PERSON, SUBJECT, BUSINESS, TRANSACTION OR
14 PRIVILEGE SHALL NOT EXCEED THE LIMITATIONS PRESCRIBED IN THIS
15 SECTION: PROVIDED, HOWEVER, THAT ANY TWO POLITICAL SUBDIVISIONS
16 WHICH IMPOSE ANY ONE OF THE ABOVE TAXES, ON THE SAME PERSON,
17 SUBJECT, BUSINESS, TRANSACTION OR PRIVILEGE DURING THE SAME YEAR
18 OR PART OF THE SAME YEAR MAY AGREE AMONG THEMSELVES THAT,
19 INSTEAD OF LIMITING THEIR RESPECTIVE RATES TO ONE-HALF OF THE
20 MAXIMUM RATE HEREIN PROVIDED, THEY WILL IMPOSE RESPECTIVELY
21 DIFFERENT RATES, THE TOTAL OF WHICH SHALL NOT EXCEED THE MAXIMUM
22 RATE AS ABOVE PERMITTED.
23 NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, ANY CITY OF
24 THE SECOND CLASS A MAY ENACT A TAX UPON WAGES, SALARIES,
25 COMMISSIONS AND OTHER EARNED INCOME OF INDIVIDUALS RESIDENT
26 THEREIN, NOT EXCEEDING ONE PERCENT, EVEN THOUGH A SCHOOL
27 DISTRICT LEVIES A SIMILAR TAX ON THE SAME PERSON PROVIDED THAT
28 THE AGGREGATE OF BOTH TAXES DOES NOT EXCEED TWO PERCENT.
29 (12) IN THE CASE OF DUPLICATION OF EMERGENCY AND MUNICIPAL
30 SERVICES TAXES BY A SCHOOL DISTRICT AND ANOTHER TAXING BODY, THE
20030H0197B4780 - 12 -
1 SCHOOL DISTRICT'S SHARE OF THE TAX SHALL NOT EXCEED THE AMOUNT
2 OF EMERGENCY AND MUNICIPAL SERVICES TAX LEVIED BY THE SCHOOL
3 DISTRICT AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH. IN THE CASE
4 WHERE A SCHOOL DISTRICT DID NOT LEVY AN EMERGENCY AND MUNICIPAL
5 SERVICES TAX ON THE EFFECTIVE DATE OF THIS PARAGRAPH, THE SCHOOL
6 DISTRICT MAY IMPOSE A FUTURE LEVY NOT TO EXCEED FIVE DOLLARS
7 ($5).
8 SECTION 3. SECTION 10 OF THE ACT IS AMENDED TO READ:
9 Section 10. Collection of Taxes.--(a) Administrative
10 Personnel; Joint Agreements.--[Any] Except as provided in
11 subsections (b) and (c), any such political subdivision is
12 hereby authorized to provide by ordinance or resolution for the
13 creation of such bureaus or the appointment and compensation of
14 such officers, clerks, collectors, and other assistants and
15 employes, either under existing departments, or otherwise as may
16 be deemed necessary, for the assessment and collection of taxes
17 imposed under authority of this act.
18 [Any] Except as provided in subsections (b) and (c), any
19 political subdivisions imposing taxes under authority of this
20 act are authorized to make joint agreements for the collection
21 of such taxes or any of them. The same person or agency may be
22 employed by two or more political subdivisions to collect any
23 taxes imposed by them under authority of this act.
24 (b) Single Collector for Earned Income Taxes When Certain
25 School Districts Impose Such Taxes.--[Whenever] Except as
26 provided in subsection (c), whenever a school district of the
27 second, third or fourth class shall be established pursuant to
28 section 296, act of March 10, 1949 (P.L.30), known as the
29 "Public School Code of 1949," added August 8, 1963 (P.L. 564),
30 and such school district shall levy, assess and collect or
20030H0197B4780 - 13 -
1 provide for the levying, assessment and collection of a tax upon
2 earned income, such school district and all cities, boroughs,
3 towns and townships within its geographical limits which levy,
4 assess and collect or provide for the levying, assessment and
5 collection of a tax upon earned income, may on January 1, 1967,
6 or as soon thereafter as the school district shall provide for
7 the levying, assessment and collection of taxes upon earned
8 income, select one person or agency to collect the taxes upon
9 earned income imposed by all such political subdivisions. In
10 selecting such person or agency, each political subdivision
11 shall share in the selection upon a basis agreed upon by each
12 political subdivision, or in the absence of any agreement on the
13 basis of voting according to the proportion that the population
14 of each bears to the entire population of the combined
15 collection district, according to the latest official Federal
16 census, and the majority of such votes cast shall determine the
17 person or agency selected to collect the taxes. The provisions
18 of this paragraph shall not prohibit school districts and other
19 political subdivisions which levy, assess and collect or provide
20 for the levying, assessment and collection of taxes upon earned
21 income, under authority of this act, from selecting the same
22 person or agency to collect such tax upon earned income in an
23 area larger than the geographical limits of a school district
24 established pursuant to section 296 of the "Public School Code
25 of 1949."
26 (c) Single Tax Collector in Certain Home Rule
27 Municipality.--In a municipality having a population under the
28 2000 Federal decennial census of at least forty thousand and
29 less than ninety thousand located in a second class county which
30 municipality has adopted a home rule charter under 53 Pa.C.S.
20030H0197B4780 - 14 -
1 Pt. III Subpt. E (relating to home rule and optional plan
2 government), the person or persons appointed by the board of
3 school directors for the school district in which the
4 municipality is located as collector or collectors of taxes
5 levied by the school district under this act shall also serve as
6 the collector or collectors of taxes levied by the municipality
7 under this act.
8 SECTION 4. THE ACT IS AMENDED BY ADDING SECTIONS TO READ: <--
9 SECTION 22.1. EMERGENCY AND MUNICIPAL SERVICES TAXES.--ANY
10 REFERENCE IN ANY ACT OR LAW TO AN OCCUPATIONAL PRIVILEGE TAX
11 SHALL MEAN THE EMERGENCY AND MUNICIPAL SERVICES TAXES AS
12 PROVIDED FOR IN THIS ACT.
13 SECTION 22.2. RESTRICTED USE.--(A) ANY MUNICIPALITY
14 DERIVING FUNDS FROM THE EMERGENCY AND MUNICIPAL SERVICES TAX MAY
15 ONLY USE THE FUNDS FOR:
16 (1) POLICE, FIRE AND/OR EMERGENCY SERVICES;
17 (2) ROAD CONSTRUCTION AND/OR MAINTENANCE; OR
18 (3) REDUCTION OF PROPERTY TAXES.
19 (B) FOR THE PURPOSE OF THE EMERGENCY AND MUNICIPAL SERVICES
20 TAX, THE TERM MUNICIPALITY DOES NOT INCLUDE A SCHOOL DISTRICT.
21 Section 2 5. Section 1970.3 of the act of July 28, 1953 <--
22 (P.L.723, No.230), known as the Second Class County Code, is
23 repealed.
24 Section 3 6. This act shall take effect January 1, 2004. <--
A23L53BIL/20030H0197B4780 - 15 -