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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 41, 62                     PRINTER'S NO. 91

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 39 Special Session No. 1 of 2005


        INTRODUCED BY WILT, DENLINGER, ROHRER, LEH, YEWCIC, ALLEN,
           ARMSTRONG, BALDWIN, BASTIAN, BIRMELIN, BUNT, CALTAGIRONE,
           CAPPELLI, CLYMER, CREIGHTON, DIVEN, FORCIER, GILLESPIE,
           GOODMAN, HARRIS, HERSHEY, KAUFFMAN, MACKERETH, MARSICO,
           McILHATTAN, R. MILLER, S. MILLER, MUSTIO, PICKETT, PYLE,
           QUIGLEY, RAPP, ROBERTS, SATHER, SAYLOR, SCHRODER, SEMMEL,
           STEIL, STERN AND T. STEVENSON, OCTOBER 24, 2005

        SENATOR TOMLINSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
           AMENDED, FEBRUARY 6, 2006

                                     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     restricting the power of certain school districts to levy,
    23     assess and collect taxes.
    24  PROVIDING FOR TAXATION BY SCHOOL DISTRICTS, FOR THE STATE FUNDS   <--
    25     FORMULA, FOR TAX RELIEF IN FIRST CLASS CITIES, FOR SCHOOL
    26     DISTRICT CHOICE AND VOTER PARTICIPATION AND FOR OTHER SCHOOL
    27     DISTRICT OPTIONS; MAKING AN APPROPRIATION; PROHIBITING PRIOR


     1     AUTHORIZED TAXATION; PROVIDING FOR INSTALLMENT PAYMENT OF
     2     TAXES; RESTRICTING THE POWER OF CERTAIN SCHOOL DISTRICTS TO
     3     LEVY, ASSESS AND COLLECT TAXES; AND MAKING RELATED REPEALS.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  The act of December 31, 1965 (P.L.1257, No.511),   <--
     7  known as The Local Tax Enabling Act, is amended by adding a
     8  section to read:
     9     Section 1.1.  Restriction on Authority to Levy Taxes.--(a)
    10  Except as provided in subsections (b) and (c), the authority of
    11  any school district of the second, third and fourth class
    12  including any independent school district to levy, assess and
    13  collect any tax under this act shall expire at midnight on
    14  December 31, 2007.
    15     (b)  Each school district of the second class, each school
    16  district of the third class and each school district of the
    17  fourth class shall continue to have the power to levy a realty
    18  transfer tax under this act or the act of March 4, 1971 (P.L.6,
    19  No.2), known as the "Tax Reform Code of 1971," at a rate equal
    20  to or less than the rate in effect on July 1, 2005. Any division
    21  of the proceeds of the tax with any municipality which decreases
    22  the percentage payable to the school district after July 1,
    23  2005, shall be void and unenforceable. The tax, or portion of
    24  the proceeds thereof payable to the school district, shall be
    25  transmitted to the Department of Revenue for deposit into the
    26  Education Operating Fund beginning January 1, 2008.
    27     (c)  The provisions of subsection (a) shall not prevent or
    28  interfere with any action of any school district of the second,
    29  third and fourth class including any independent school district
    30  to collect any tax imposed under the authority of this act that
    31  is levied and assessed prior to January 1, 2008.
    20051H0039B0091                  - 2 -     

     1     Section 2.  This act shall take effect immediately.
     2                             CHAPTER 1                              <--
     3                       PRELIMINARY PROVISIONS
     4  SECTION 101.  SHORT TITLE.
     5     THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE TAXPAYER
     6  RELIEF ACT.
     7  SECTION 102.  DEFINITIONS.
     8     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
     9  HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    10  CONTEXT CLEARLY INDICATES OTHERWISE:
    11     "ACTUAL INSTRUCTION EXPENSE."  THE TERM SHALL HAVE THE SAME
    12  USAGE AS IN THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS
    13  THE PUBLIC SCHOOL CODE OF 1949.
    14     "AVERAGE DAILY MEMBERSHIP."  THE TERM SHALL HAVE THE SAME
    15  USAGE AS IN THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS
    16  THE PUBLIC SCHOOL CODE OF 1949.
    17     "INSTALLMENT CLAIM."  A CLAIM FOR PAYMENT OF TAXES IN
    18  INSTALLMENTS PURSUANT TO SECTION 1503, INCLUDING ANY PENALTIES,
    19  COSTS AND INTEREST PROVIDED FOR UNDER CHAPTER 15 OR ANY OTHER
    20  LAW.
    21     "MARKET VALUE/INCOME AID RATIO."  AS DEFINED IN SECTION
    22  2501(14.1) OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN
    23  AS THE PUBLIC SCHOOL CODE OF 1949.
    24     "PERSONAL INCOME VALUATION."  AS DEFINED IN SECTION 2501(9.1)
    25  OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE
    26  PUBLIC SCHOOL CODE OF 1949.
    27     "PUBLIC SCHOOL CODE."  THE ACT OF MARCH 10, 1949 (P.L.30,
    28  NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949.
    29     "TAX COLLECTOR."  THE TERM SHALL HAVE THE SAME USAGE AS IN
    30  THE ACT OF MAY 25, 1945 (P.L.1050, NO.394), KNOWN AS THE LOCAL
    20051H0039B0091                  - 3 -     

     1  TAX COLLECTION LAW.
     2                             CHAPTER 3
     3                    TAXATION BY SCHOOL DISTRICTS
     4                            SUBCHAPTER A
     5                         GENERAL PROVISIONS
     6  SECTION 301.  SCOPE.
     7     THIS CHAPTER RELATES TO HOMEOWNER PROPERTY TAX RELIEF.
     8  SECTION 302.  DEFINITIONS.
     9     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    10  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    11  CONTEXT CLEARLY INDICATES OTHERWISE:
    12     "ASSESSOR."  AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
    13  DEFINITIONS).
    14     "BOARD OF SCHOOL DIRECTORS."  A BOARD OF SCHOOL DIRECTORS OF
    15  A SCHOOL DISTRICT OF THE FIRST CLASS A, SECOND CLASS, THIRD
    16  CLASS OR FOURTH CLASS.
    17     "CONSTRUCTION COST AVERAGE ON A SQUARE-FOOT BASIS."  AN
    18  AMOUNT EQUAL TO $137 PER SQUARE FOOT FOR AN ELEMENTARY SCHOOL
    19  BUILDING AND $142 PER SQUARE FOOT FOR A SECONDARY SCHOOL
    20  BUILDING, AS ADJUSTED ANNUALLY BY THE PERCENTAGE INCREASE IN THE
    21  AVERAGE OF THE STATEWIDE AVERAGE WEEKLY WAGE AND THE EMPLOYMENT
    22  COST INDEX.
    23     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    24  COMMONWEALTH.
    25     "DOMICILE."  AS DEFINED IN SECTION 13 OF THE ACT OF DECEMBER
    26  31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
    27  ACT.
    28     "EARNED INCOME."  AS DEFINED IN SECTION 13 OF THE ACT OF
    29  DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
    30  ENABLING ACT.
    20051H0039B0091                  - 4 -     

     1     "ELECTION OFFICIALS."  THE BOARD OF ELECTIONS OF A COUNTY.
     2     "EMPLOYER."  AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
     3  1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
     4     "EMPLOYMENT COST INDEX."  THE MOST RECENT OFFICIAL FIGURES,
     5  FOR THE PREVIOUS 12-MONTH PERIOD BEGINNING JULY 1 AND ENDING
     6  JUNE 30 FOR THE EMPLOYMENT COST INDEX SERIES FOR ELEMENTARY AND
     7  SECONDARY SCHOOLS, REPORTED BY THE BUREAU OF LABOR STATISTICS OF
     8  THE FEDERAL DEPARTMENT OF LABOR.
     9     "FARMSTEAD."  AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
    10  DEFINITIONS).
    11     "FARMSTEAD PROPERTY."  AS DEFINED IN 53 PA.C.S. § 8582
    12  (RELATING TO DEFINITIONS).
    13     "FUND."  THE PROPERTY TAX RELIEF FUND ESTABLISHED IN THE
    14  STATE TREASURY.
    15     "HOMESTEAD."  AS DEFINED IN 53 PA.C.S. § 8401 (RELATING TO
    16  DEFINITIONS).
    17     "HOMESTEAD PROPERTY."  AS DEFINED IN 53 PA.C.S § 8401
    18  (RELATING TO DEFINITIONS).
    19     "INCOME TAX."  A TAX ON EARNED INCOME AND NET PROFITS OR A
    20  TAX ON PERSONAL INCOME IMPOSED PURSUANT TO THIS CHAPTER.
    21     "INDEX."  AS FOLLOWS:
    22         (1)  EXCEPT AS SET FORTH IN PARAGRAPH (2), THE AVERAGE OF
    23     THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE
    24     AND THE EMPLOYMENT COST INDEX.
    25         (2)  FOR A SCHOOL DISTRICT WITH A MARKET VALUE/INCOME AID
    26     RATIO GREATER THAN 0.400 FOR THE SCHOOL YEAR PRIOR TO THE
    27     SCHOOL YEAR FOR WHICH THE INDEX IS CALCULATED, THE VALUE
    28     UNDER PARAGRAPH (1) MULTIPLIED BY THE SUM OF:
    29             (I)  0.75; AND
    30             (II)  THE SCHOOL DISTRICT'S MARKET VALUE/INCOME AID
    20051H0039B0091                  - 5 -     

     1         RATIO FOR THE SCHOOL YEAR PRIOR TO THE SCHOOL YEAR FOR
     2         WHICH THE INDEX IS CALCULATED.
     3     "LOCAL TAX ENABLING ACT."  THE ACT OF DECEMBER 31, 1965
     4  (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
     5     "LOCAL TAX REVENUE."  THE REVENUE FROM TAXES ACTUALLY LEVIED
     6  AND ASSESSED BY A SCHOOL DISTRICT, INCLUDING DELINQUENT TAXES.
     7  THE TERM DOES NOT INCLUDE INTEREST OR DIVIDEND EARNINGS, FEDERAL
     8  OR STATE GRANTS, CONTRACTS OR APPROPRIATIONS, INCOME GENERATED
     9  FROM OPERATIONS OR ANY OTHER SOURCE WHICH IS NOT DERIVED FROM
    10  TAXES LEVIED AND ASSESSED BY A SCHOOL DISTRICT.
    11     "NET PROFITS."  AS DEFINED IN SECTION 13 OF THE ACT OF
    12  DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
    13  ENABLING ACT.
    14     "PERSONAL INCOME."  INCOME ENUMERATED IN SECTION 303 OF THE
    15  ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
    16  OF 1971, AS DETERMINED BY THE DEPARTMENT OF REVENUE, SUBJECT TO
    17  ANY CORRECTION THEREOF FOR FRAUD, EVASION OR ERROR AS FINALLY
    18  DETERMINED BY THE COMMONWEALTH.
    19     "RESIDENT INDIVIDUAL."  AN INDIVIDUAL WHO IS DOMICILED IN A
    20  SCHOOL DISTRICT.
    21     "SCHOOL DISTRICT."  A SCHOOL DISTRICT OF THE FIRST CLASS A,
    22  SECOND CLASS, THIRD CLASS OR FOURTH CLASS.
    23     "STATEWIDE AVERAGE WEEKLY WAGE."  THAT AMOUNT DETERMINED BY
    24  THE DEPARTMENT OF LABOR AND INDUSTRY IN THE SAME MANNER THAT IT
    25  DETERMINES THE AVERAGE WEEKLY WAGE UNDER SECTION 404(E)(2) OF
    26  THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1),
    27  KNOWN AS THE UNEMPLOYMENT COMPENSATION LAW, EXCEPT THAT IT SHALL
    28  BE CALCULATED FOR THE PRECEDING CALENDAR YEAR.
    29     "TAX REFORM CODE."  THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
    30  KNOWN AS THE TAX REFORM CODE OF 1971.
    20051H0039B0091                  - 6 -     

     1     "TAXPAYER."  AN INDIVIDUAL REQUIRED UNDER THIS CHAPTER TO PAY
     2  A TAX.
     3  SECTION 303.  LIMITATIONS.
     4     THIS CHAPTER SHALL NOT BE CONSTRUED TO AFFECT THE POWER OF A
     5  SCHOOL DISTRICT TO DO ANY OF THE FOLLOWING:
     6         (1)  TO ELIMINATE ITS OCCUPATION TAX PURSUANT TO THE ACT
     7     OF JUNE 22, 2001 (P.L.374, NO.24), KNOWN AS THE OPTIONAL
     8     OCCUPATION TAX ELIMINATION ACT. EXCEPT FOR AN ELECTION IN
     9     WHICH A SCHOOL DISTRICT SEEKS TO IMPOSE A PERSONAL INCOME TAX
    10     UNDER SECTION 321(C), A SCHOOL DISTRICT MAY PLACE SUCH
    11     REFERENDUM QUESTION ON THE BALLOT AT THE SAME MUNICIPAL
    12     ELECTION AS A REFERENDUM QUESTION PLACED ON THE BALLOT
    13     PURSUANT TO SUBCHAPTER D. IF A SCHOOL DISTRICT CONVERTS ITS
    14     EARNED INCOME AND NET PROFITS TAX TO A PERSONAL INCOME TAX
    15     UNDER THIS CHAPTER, THE SCHOOL DISTRICT MAY NOT UTILIZE THE
    16     OPTIONAL OCCUPATION TAX ELIMINATION ACT.
    17         (2)  TO LEVY, ASSESS OR COLLECT A TAX ON EARNED INCOME
    18     AND NET PROFITS UNDER THE LOCAL TAX ENABLING ACT.
    19         (3)  TO IMPOSE SPECIAL PURPOSE TAX LEVIES APPROVED BY THE
    20     ELECTORATE.
    21  SECTION 304.  CERTAIN RATES OF TAXATION LIMITED.
    22     (A)  MUNICIPAL RATES.--IF A MUNICIPALITY AND SCHOOL DISTRICT
    23  BOTH IMPOSE AN EARNED INCOME AND NET PROFITS TAX ON THE SAME
    24  INDIVIDUAL UNDER THE LOCAL TAX ENABLING ACT AND ARE LIMITED TO
    25  OR HAVE AGREED UPON A DIVISION OF THE TAX RATE IN ACCORDANCE
    26  WITH SECTION 8 OF THE LOCAL TAX ENABLING ACT, THE MUNICIPALITY
    27  SHALL REMAIN SUBJECT TO THAT LIMITATION OR AGREEMENT IN THE
    28  EVENT THAT THE SCHOOL DISTRICT OPTS TO IMPOSE OR INCREASE AN
    29  EARNED INCOME AND NET PROFITS TAX AUTHORIZED UNDER SECTION
    30  321(B) OR A PERSONAL INCOME TAX AUTHORIZED UNDER SECTION 321(C).
    20051H0039B0091                  - 7 -     

     1  NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO AUTHORIZE A
     2  MUNICIPALITY TO RAISE THE RATE OF EARNED INCOME AND NET PROFITS
     3  TAX ABOVE THE RATE IT LEVIED UNDER THE PREVIOUSLY AGREED UPON
     4  DIVISION IF A SCHOOL DISTRICT IMPOSES OR INCREASES A PERSONAL
     5  INCOME TAX UNDER SUBCHAPTER C.
     6     (B)  SCHOOL DISTRICTS.--A SCHOOL DISTRICT WHICH IMPOSES A TAX
     7  UNDER THIS CHAPTER IS SUBJECT TO SECTION 688 OF THE PUBLIC
     8  SCHOOL CODE.
     9                            SUBCHAPTER B
    10                      SCHOOL DISTRICT BUDGETS
    11  SECTION 311.  ADOPTION OF PRELIMINARY BUDGET PROPOSALS.
    12     (A)  ADOPTION.--BEGINNING JANUARY 1, 2006, AND EXCEPT AS
    13  PROVIDED UNDER SECTION 333(A)(2), EACH BOARD OF SCHOOL DIRECTORS
    14  SHALL ADOPT A PRELIMINARY BUDGET PROPOSAL FOR THE FOLLOWING
    15  FISCAL YEAR NO LATER THAN 90 DAYS PRIOR TO THE DATE OF THE
    16  ELECTION IMMEDIATELY PRECEDING THE FISCAL YEAR IN WHICH THE
    17  PRELIMINARY BUDGET WILL TAKE EFFECT.
    18     (B)  CONTENTS.--THE PRELIMINARY BUDGET PROPOSAL SHALL INCLUDE
    19  ESTIMATED REVENUES AND EXPENDITURES AND ANY PROPOSED TAX RATES
    20  AND SHALL BE PREPARED ON A UNIFORM FORM FURNISHED BY THE
    21  DEPARTMENT.
    22     (C)  PUBLIC INSPECTION.--THE BOARD OF SCHOOL DIRECTORS SHALL
    23  PRINT THE PRELIMINARY BUDGET PROPOSAL AND MAKE IT AVAILABLE FOR
    24  PUBLIC INSPECTION AT LEAST 20 DAYS PRIOR TO ITS ADOPTION. THE
    25  BOARD OF SCHOOL DIRECTORS SHALL GIVE PUBLIC NOTICE OF ITS INTENT
    26  TO ADOPT THE PRELIMINARY BUDGET AT LEAST TEN DAYS PRIOR TO
    27  ADOPTION AND MAY HOLD A PUBLIC HEARING PRIOR TO ITS ADOPTION.
    28  SECTION 312.  ADOPTION OF ANNUAL BUDGETS.
    29     (A)  ADOPTION.--BEGINNING JANUARY 1, 2006, EACH BOARD OF
    30  SCHOOL DIRECTORS SHALL ADOPT ITS ANNUAL BUDGET FOR THE FOLLOWING
    20051H0039B0091                  - 8 -     

     1  FISCAL YEAR NO LATER THAN THE LAST DAY OF THE FISCAL YEAR BEFORE
     2  THE FISCAL YEAR IN WHICH THE BUDGET TAKES EFFECT.
     3     (B)  CONTENTS.--THE ANNUAL BUDGET SHALL INCLUDE ESTIMATED
     4  REVENUES AND EXPENDITURES AND ANY PROPOSED TAX RATES AND BE
     5  PREPARED ON A UNIFORM FORM FURNISHED BY THE DEPARTMENT.
     6     (C)  PUBLIC INSPECTION.--THE BOARD OF SCHOOL DIRECTORS SHALL
     7  PRINT THE ANNUAL BUDGET AND MAKE IT AVAILABLE FOR PUBLIC
     8  INSPECTION AT LEAST 20 DAYS PRIOR TO ITS ADOPTION. THE BOARD OF
     9  SCHOOL DIRECTORS SHALL GIVE PUBLIC NOTICE OF ITS INTENT TO ADOPT
    10  THE ANNUAL BUDGET AT LEAST TEN DAYS PRIOR TO ADOPTION AND MAY
    11  HOLD A PUBLIC HEARING PRIOR TO ITS ADOPTION.
    12  SECTION 313.  INFORMATION TO SCHOOL DISTRICTS.
    13         (1)  NO LATER THAN SEPTEMBER 30, 2006, AND SEPTEMBER 30
    14     OF EACH YEAR THEREAFTER THE DEPARTMENT SHALL PROVIDE EACH
    15     SCHOOL DISTRICT WITH THE FOLLOWING INFORMATION:
    16             (I)  THE DATES BY WHICH ACTIONS REQUIRED UNDER THIS
    17         CHAPTER SHALL TAKE PLACE.
    18             (II)  THE INDEX FOR THE APPLICABLE FISCAL YEAR.
    19         (2)  FOR THE 2006-2007 SCHOOL YEAR, THE DEPARTMENT SHALL
    20     PROVIDE EACH SCHOOL DISTRICT WITH THE INFORMATION REQUIRED
    21     UNDER THIS SECTION NO LATER THAN TEN DAYS AFTER THE EFFECTIVE
    22     DATE OF THIS ACT.
    23                            SUBCHAPTER C
    24                     GENERAL TAX AUTHORIZATION
    25  SECTION 321.  GENERAL TAX AUTHORIZATION.
    26     (A)  GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS MAY LEVY,
    27  ASSESS AND COLLECT A TAX ON EARNED INCOME AND NET PROFITS OR A
    28  TAX ON PERSONAL INCOME AS PROVIDED IN THIS SECTION FOR THE
    29  PURPOSE OF FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS TO REDUCE
    30  SCHOOL DISTRICT PROPERTY TAXES.
    20051H0039B0091                  - 9 -     

     1     (B)  EARNED INCOME AND NET PROFITS TAX.--
     2         (1)  A BOARD OF SCHOOL DIRECTORS MAY, IN ACCORDANCE WITH
     3     SECTION 331.1, LEVY OR INCREASE A TAX ON EARNED INCOME AND
     4     NET PROFITS OF RESIDENT INDIVIDUALS FOR THE PURPOSE OF
     5     FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
     6         (1.1)  A BOARD OF SCHOOL DIRECTORS MAY, IN ACCORDANCE
     7     WITH SECTION 331.2, LEVY OR INCREASE A TAX ON EARNED INCOME
     8     AND NET PROFITS OF RESIDENT INDIVIDUALS FOR THE PURPOSE OF
     9     FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
    10         (2)  IN ADDITION TO THE AUTHORIZATION PROVIDED UNDER
    11     PARAGRAPHS (1) AND (1.1), A SCHOOL DISTRICT MAY, IN
    12     ACCORDANCE WITH SECTION 332, LEVY OR INCREASE A TAX ON EARNED
    13     INCOME AND NET PROFITS OF RESIDENT INDIVIDUALS FOR THE
    14     PURPOSE OF FURTHER FUNDING HOMESTEAD AND FARMSTEAD
    15     EXCLUSIONS. THE BOARD OF SCHOOL DIRECTORS SHALL ROUND THE
    16     RATE OF THE EARNED INCOME AND NET PROFITS TAX LEVIED PURSUANT
    17     TO THIS SECTION TO THE NEAREST 0.1%. FOR PURPOSES OF
    18     CALCULATING THE COMBINED TAX RATE AUTHORIZED UNDER PARAGRAPHS
    19     (1), (1.1) AND THIS PARAGRAPH, THE PORTION OF TAX DEDICATED
    20     TO THE INCREASE IN REVENUE PERMITTED UNDER PARAGRAPH (4), IF
    21     ANY, SHALL BE EXCLUDED.
    22         (3)  (RESERVED).
    23         (4)  NOTWITHSTANDING SECTION 334, THE RATE OF THE EARNED
    24     INCOME AND NET PROFITS TAX PROPOSED TO BE LEVIED AND ASSESSED
    25     FOR THE FISCAL YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
    26     THE TAX IS AUTHORIZED MAY PROVIDE FOR AN INCREASE IN REVENUE
    27     OF NOT MORE THAN 2% OF THE ESTIMATED REVENUE FROM THE EARNED
    28     INCOME AND NET PROFITS TAX AUTHORIZED UNDER PARAGRAPH (1),
    29     (1.1) OR (2), WHICH MAY BE USED FOR THE OPERATIONS OF THE
    30     SCHOOL DISTRICT.
    20051H0039B0091                 - 10 -     

     1     (C)  PERSONAL INCOME TAX.--
     2         (1)  A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
     3     COLLECT A TAX ON THE PERSONAL INCOME OF RESIDENT INDIVIDUALS
     4     AT A RATE DETERMINED BY THE BOARD OF SCHOOL DIRECTORS.
     5         (2)  A SCHOOL DISTRICT WHICH SEEKS TO LEVY THE TAX
     6     AUTHORIZED UNDER PARAGRAPH (1) MUST COMPLY WITH SECTION 332
     7     AND THE FOLLOWING:
     8             (I)  THE SCHOOL DISTRICT SHALL CONVERT, IN A REVENUE-
     9         NEUTRAL MANNER, ANY EXISTING EARNED INCOME AND NET
    10         PROFITS TAX RATES LEVIED PURSUANT TO ANY OTHER ACT TO A
    11         PERSONAL INCOME TAX RATE.
    12             (II)  ANY EARNED INCOME AND NET PROFITS TAX IMPOSED
    13         PURSUANT TO SECTION 331.1, 331.2 OR 332 SHALL BE
    14         CONVERTED TO A PERSONAL INCOME TAX RATE WHICH GENERATES
    15         THE SAME AMOUNT OF TAX REVENUE AND SHALL BE USED FOR
    16         FUNDING EXCLUSIONS FOR HOMESTEAD AND FARMSTEAD PROPERTY.
    17             (III)  A SCHOOL DISTRICT MAY, IN ACCORDANCE WITH
    18         SECTION 332, LEVY AN ADDITIONAL TAX ON THE PERSONAL
    19         INCOME OF RESIDENT INDIVIDUALS FOR THE PURPOSE OF FURTHER
    20         FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
    21             (IV)  FOR PURPOSES OF THE REFERENDUM QUESTION UNDER
    22         SECTION 332, THE BOARD OF SCHOOL DIRECTORS SHALL ROUND
    23         THE RATE OF THE PERSONAL INCOME TAX LEVIED PURSUANT TO
    24         THIS SUBPARAGRAPH TO THE NEAREST 0.1%. FOR PURPOSES OF
    25         CALCULATING THE COMBINED TAX RATE, THE PORTION OF TAX
    26         DEDICATED TO THE INCREASE IN REVENUE PERMITTED UNDER
    27         PARAGRAPH (6), IF ANY, SHALL BE EXCLUDED.
    28         (3)  ALL REVENUE GENERATED BY A SCHOOL DISTRICT PURSUANT
    29     TO PARAGRAPH (2)(II) AND (III) SHALL BE USED AS PROVIDED IN
    30     SECTIONS 334 AND 335 FOR THE PURPOSE OF FUNDING EXCLUSIONS
    20051H0039B0091                 - 11 -     

     1     FOR HOMESTEAD AND FARMSTEAD PROPERTY.
     2         (4)  IF A BOARD OF SCHOOL DIRECTORS SEEKS TO IMPOSE A
     3     PERSONAL INCOME TAX UNDER THIS SUBSECTION AND THE REFERENDUM
     4     UNDER SECTION 332 IS APPROVED BY THE ELECTORATE, THE BOARD OF
     5     SCHOOL DIRECTORS SHALL HAVE NO AUTHORITY TO IMPOSE AN EARNED
     6     INCOME AND NET PROFITS TAX UNDER SUBSECTION (B) OR UNDER ANY
     7     OTHER ACT.
     8         (5)  A PERSONAL INCOME TAX IMPOSED UNDER THE AUTHORITY OF
     9     THIS SECTION SHALL BE LEVIED BY THE SCHOOL DISTRICT ON EACH
    10     OF THE CLASSES OF INCOME SPECIFIED IN SECTION 303 OF THE TAX
    11     REFORM CODE AND REGULATIONS UNDER THAT SECTION, THE
    12     PROVISIONS OF WHICH ARE INCORPORATED BY REFERENCE INTO THIS
    13     CHAPTER.
    14             (I)  NOTWITHSTANDING THE PROVISIONS OF SECTION 353(F)
    15         OF THE TAX REFORM CODE, THE DEPARTMENT OF REVENUE MAY
    16         PERMIT THE PROPER OFFICER OR AN AUTHORIZED AGENT OF A
    17         SCHOOL DISTRICT IMPOSING A PERSONAL INCOME TAX PURSUANT
    18         TO THIS CHAPTER TO INSPECT THE TAX RETURNS OF ANY
    19         TAXPAYER OF THE SCHOOL DISTRICT OR MAY FURNISH TO THE
    20         OFFICER OR AN AUTHORIZED AGENT AN ABSTRACT OF THE RETURN
    21         OF INCOME OF ANY CURRENT OR FORMER RESIDENT OF THE SCHOOL
    22         DISTRICT, OR SUPPLY INFORMATION CONCERNING ANY ITEM OF
    23         INCOME CONTAINED IN ANY TAX RETURN. THE OFFICER OR
    24         AUTHORIZED AGENT OF THE SCHOOL DISTRICT IMPOSING A TAX
    25         UNDER THIS CHAPTER SHALL BE FURNISHED THE REQUESTED
    26         INFORMATION UPON PAYMENT TO THE DEPARTMENT OF REVENUE OF
    27         THE ACTUAL COST OF PROVIDING THE REQUESTED INFORMATION.
    28             (II)  (A)  EXCEPT FOR OFFICIAL PURPOSES OR AS
    29             PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR ANY OFFICER
    30             OR AUTHORIZED AGENT OF A SCHOOL DISTRICT TO DO ANY OF
    20051H0039B0091                 - 12 -     

     1             THE FOLLOWING:
     2                     (I)  DISCLOSE TO ANY OTHER INDIVIDUAL OR
     3                 ENTITY THE AMOUNT OR SOURCE OF INCOME, PROFITS,
     4                 LOSSES, EXPENDITURES OR ANY PARTICULAR
     5                 INFORMATION CONCERNING INCOME, PROFITS, LOSSES OR
     6                 EXPENDITURES CONTAINED IN ANY RETURN.
     7                     (II)  PERMIT ANY OTHER INDIVIDUAL OR ENTITY
     8                 TO VIEW OR EXAMINE ANY RETURN OR COPY OF A RETURN
     9                 OR ANY BOOK CONTAINING ANY ABSTRACT OR
    10                 PARTICULARS.
    11                     (III)  PRINT, PUBLISH OR PUBLICIZE IN ANY
    12                 MANNER ANY RETURN; ANY PARTICULAR INFORMATION
    13                 CONTAINED IN OR CONCERNING THE RETURN; ANY AMOUNT
    14                 OR SOURCE OF INCOME, PROFITS, LOSSES OR
    15                 EXPENDITURES IN OR CONCERNING THE RETURN; OR ANY
    16                 PARTICULAR INFORMATION CONCERNING INCOME,
    17                 PROFITS, LOSSES OR EXPENDITURES CONTAINED IN OR
    18                 RELATING TO ANY RETURN.
    19                 (B)  ANY OFFICER OR AUTHORIZED AGENT OF A SCHOOL
    20             DISTRICT THAT VIOLATES CLAUSE (A):
    21                     (I)  MAY BE FINED NOT MORE THAN $1,000 OR
    22                 IMPRISONED FOR NOT MORE THAN ONE YEAR, OR BOTH.
    23                     (II)  MAY BE REMOVED FROM OFFICE OR
    24                 DISCHARGED FROM EMPLOYMENT.
    25         (6)  NOTWITHSTANDING SECTION 334, THE RATE OF THE
    26     PERSONAL INCOME TAX PROPOSED TO BE LEVIED AND ASSESSED FOR
    27     THE FIRST FISCAL YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
    28     THE TAX IS AUTHORIZED MAY PROVIDE FOR AN INCREASE IN REVENUE
    29     OF NOT MORE THAN 2% OF THE ESTIMATED REVENUE FROM THE
    30     PERSONAL INCOME TAX AUTHORIZED UNDER PARAGRAPH (2)(III),
    20051H0039B0091                 - 13 -     

     1     WHICH MAY BE USED FOR THE OPERATIONS OF THE SCHOOL DISTRICT.
     2     (D)  EXECUTION OF TAX RATE.--A TAX AUTHORIZED UNDER SECTION
     3  331.1, 331.2 OR 332 SHALL BE SELF-EXECUTING AND SHALL BE
     4  EFFECTIVE BEGINNING ON THE FIRST DAY OF THE FISCAL YEAR WHICH
     5  BEGINS AFTER THE TAX IS AUTHORIZED. A TAX RATE UNDER THIS
     6  SUBSECTION SHALL CONTINUE IN FORCE ON A FISCAL YEAR BASIS
     7  WITHOUT ANNUAL REENACTMENT EXCEPT IN A YEAR IN WHICH THE RATE OF
     8  THE TAX IS CHANGED OR THE TAX IS REPEALED.
     9  SECTION 322.  COLLECTIONS.
    10     (A)  DESIGNATION OF TAX COLLECTOR.--A BOARD OF SCHOOL
    11  DIRECTORS IMPOSING AN INCOME TAX UNDER THIS CHAPTER SHALL
    12  DESIGNATE A TAX OFFICER UNDER SECTION 10 OF THE LOCAL TAX
    13  ENABLING ACT, OR OTHERWISE BY LAW, AS THE COLLECTOR OF THE TAX.
    14  IN THE PERFORMANCE OF THE TAX COLLECTION DUTIES UNDER THIS
    15  SUBCHAPTER, THE DESIGNATED TAX OFFICER SHALL HAVE ALL THE SAME
    16  POWERS, RIGHTS, RESPONSIBILITIES AND DUTIES FOR THE COLLECTION
    17  OF THE TAXES WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING
    18  ACT, 53 PA.C.S. CH. 84 SUBCH. C (RELATING TO LOCAL TAXPAYERS
    19  BILL OF RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
    20     (B)  CONFLICT.--IN ANY SITUATION WHERE THERE IS A CONFLICT
    21  INVOLVING THE AUTHORITY CONFERRED ON A LOCAL TAX COLLECTOR BY
    22  THE PROVISIONS OF THE LOCAL TAX ENABLING ACT AND THE TAX REFORM
    23  CODE, THE PROVISIONS OF THE LOCAL TAX ENABLING ACT SHALL
    24  CONTROL.
    25  SECTION 323.  CREDITS.
    26     (A)  CREDIT.--EXCEPT AS SET FORTH IN SUBSECTION (B), THE
    27  PROVISIONS OF SECTION 14 OF THE LOCAL TAX ENABLING ACT SHALL BE
    28  APPLIED BY A BOARD OF SCHOOL DIRECTORS TO DETERMINE ANY CREDITS
    29  APPLICABLE TO A TAX IMPOSED UNDER SECTION 321(B) OR (C).
    30     (B)  LIMITATION.--PAYMENT OF ANY TAX ON INCOME TO ANY STATE
    20051H0039B0091                 - 14 -     

     1  OTHER THAN PENNSYLVANIA OR TO ANY POLITICAL SUBDIVISION LOCATED
     2  OUTSIDE THE BOUNDARIES OF THIS COMMONWEALTH BY A RESIDENT OF A
     3  SCHOOL DISTRICT LOCATED IN THIS COMMONWEALTH SHALL NOT BE
     4  CREDITED TO AND ALLOWED AS A DEDUCTION FROM THE LIABILITY OF
     5  SUCH PERSON FOR ANY INCOME TAX IMPOSED BY THE SCHOOL DISTRICT OF
     6  RESIDENCE PURSUANT TO THIS CHAPTER.
     7  SECTION 324.  REIMBURSEMENT.
     8     NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY,
     9  THE FOLLOWING APPLY:
    10         (1)  THIS SECTION ONLY APPLIES TO A TAXPAYER WHO IS A
    11     RESIDENT OF THIS COMMONWEALTH AND NOT A RESIDENT OF A CITY OF
    12     THE FIRST CLASS BUT WHO IS SUBJECT TO THE TAX ON SALARIES,
    13     WAGES, COMMISSIONS OR OTHER COMPENSATION IMPOSED BY A CITY OF
    14     THE FIRST CLASS UNDER THE AUTHORITY OF THE ACT OF AUGUST 5,
    15     1932 (SP.SESS., P.L.45, NO.45), REFERRED TO AS THE STERLING
    16     ACT.
    17         (2)  FOR TAX YEARS BEGINNING IN THE FIRST CALENDAR YEAR
    18     IN WHICH A PAYMENT UNDER SECTION 505(B) IS MADE AND EACH TAX
    19     YEAR THEREAFTER, PAYMENT OF A TAX ON SALARIES, WAGES,
    20     COMMISSIONS OR OTHER COMPENSATION AS SET FORTH IN PARAGRAPH
    21     (1) SHALL BE CREDITED TO THE SCHOOL DISTRICT OF THE
    22     TAXPAYER'S RESIDENCE AT AN AMOUNT NO GREATER THAN THE TAX ON
    23     SALARIES, WAGES, COMMISSIONS OR OTHER COMPENSATION AS SET
    24     FORTH IN PARAGRAPH (1) IMPOSED BY THE SCHOOL DISTRICT IN
    25     WHICH THE TAXPAYER RESIDES.
    26         (3)  EXCEPT AS SET FORTH IN PARAGRAPH (4), AN AMOUNT
    27     EQUAL TO THE AGGREGATE AMOUNT OF THE TAX CREDITED UNDER
    28     PARAGRAPH (2) SHALL BE PAID FROM THE FUND TO THE SCHOOL
    29     DISTRICT OF RESIDENCE OF EACH TAXPAYER UNDER PARAGRAPH (1)
    30     FOR THE PURPOSE OF FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS
    20051H0039B0091                 - 15 -     

     1     IN ACCORDANCE WITH THIS CHAPTER. THE DEPARTMENT SHALL
     2     PRESCRIBE PROCEDURES TO CALCULATE THE AMOUNT DUE TO EACH
     3     SCHOOL DISTRICT QUALIFYING UNDER THIS PARAGRAPH AND SHALL
     4     PUBLISH THE PROCEDURES IN THE PENNSYLVANIA BULLETIN. A SCHOOL
     5     DISTRICT THAT RECEIVES A PAYMENT UNDER THIS PARAGRAPH SHALL
     6     RECEIVE A FULL PAYMENT WHEN THE CERTIFICATION UNDER SECTION
     7     503(A)(1)(I) IS GREATER THAN OR EQUAL TO $750,000,000.
     8         (4)  IF THE CERTIFICATION UNDER SECTION 503(A)(1)(I) IS
     9     LESS THAN $750,000,000, EACH ELIGIBLE SCHOOL DISTRICT SHALL
    10     RECEIVE A PRO RATA SHARE OF THE REIMBURSEMENT CALCULATED
    11     UNDER THIS SECTION.
    12  SECTION 325.  EXEMPTION AND SPECIAL PROVISIONS.
    13     (A)  EARNED INCOME AND NET PROFITS TAX.--A SCHOOL DISTRICT
    14  THAT IMPOSES AN EARNED INCOME AND NET PROFITS TAX AUTHORIZED
    15  UNDER SECTION 321(B) MAY EXEMPT FROM THE PAYMENT OF THAT TAX ANY
    16  PERSON WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS THAN $12,000.
    17     (B)  APPLICABILITY TO PERSONAL INCOME TAX.--SECTION 304 OF
    18  THE TAX REFORM CODE SHALL APPLY TO ANY PERSONAL INCOME TAX
    19  LEVIED BY A SCHOOL DISTRICT UNDER SECTION 321(C).
    20  SECTION 326.  REGULATIONS.
    21     A SCHOOL DISTRICT THAT IMPOSES:
    22         (1)  AN EARNED INCOME AND NET PROFITS TAX AUTHORIZED
    23     UNDER SECTION 321(B) SHALL BE SUBJECT TO SECTION 13 OF THE
    24     LOCAL TAX ENABLING ACT AND MAY ADOPT PROCEDURES FOR THE
    25     PROCESSING OF CLAIMS FOR CREDITS OR EXEMPTIONS UNDER SECTIONS
    26     323, 324 AND 325; OR
    27         (2)  A PERSONAL INCOME TAX AUTHORIZED UNDER SECTION
    28     321(C) SHALL BE SUBJECT TO ALL REGULATIONS ADOPTED BY THE
    29     DEPARTMENT OF REVENUE IN ADMINISTERING THE TAX DUE TO THE
    30     COMMONWEALTH UNDER ARTICLE III OF THE TAX REFORM CODE.
    20051H0039B0091                 - 16 -     

     1  SECTION 327.  PROPERTY TAX LIMITS ON REASSESSMENT.
     2     NOTWITHSTANDING ANY OTHER PROVISION OF LAW, INCLUDING THIS
     3  ACT, AFTER ANY COUNTY MAKES A COUNTYWIDE REVISION OF ASSESSMENT
     4  OF REAL PROPERTY AT VALUES BASED UPON AN ESTABLISHED
     5  PREDETERMINED RATIO AS REQUIRED BY LAW OR AFTER ANY COUNTY
     6  CHANGES ITS ESTABLISHED PREDETERMINED RATIO, A BOARD OF SCHOOL
     7  DIRECTORS IN A SCHOOL DISTRICT LOCATED WITHIN THAT COUNTY WHICH,
     8  AFTER JULY 1, 2006, FOR THE FIRST TIME LEVIES ITS REAL ESTATE
     9  TAXES ON THAT REVISED ASSESSMENT OR VALUATION SHALL FOR THE
    10  FIRST YEAR REDUCE ITS TAX RATE, IF NECESSARY, FOR THE PURPOSE OF
    11  HAVING THE PERCENTAGE INCREASE IN TAXES LEVIED FOR THAT YEAR
    12  AGAINST THE REAL PROPERTIES CONTAINED IN THE DUPLICATE FOR THE
    13  PRECEDING YEAR BE LESS THAN OR EQUAL TO THE INDEX FOR THE
    14  PRECEDING YEAR NOTWITHSTANDING THE INCREASED VALUATIONS OF SUCH
    15  PROPERTIES UNDER THE REVISED ASSESSMENT. FOR THE PURPOSE OF
    16  DETERMINING THE TOTAL AMOUNT OF TAXES TO BE LEVIED FOR THE FIRST
    17  YEAR, THE AMOUNT TO BE LEVIED ON NEWLY CONSTRUCTED BUILDINGS OR
    18  STRUCTURES OR ON INCREASED VALUATIONS BASED ON NEW IMPROVEMENTS
    19  MADE TO EXISTING HOUSES NEED NOT BE CONSIDERED. THE TAX RATE
    20  SHALL BE FIXED FOR THAT YEAR AT A FIGURE WHICH WILL ACCOMPLISH
    21  THIS PURPOSE. THE PROVISIONS OF SECTION 333 SHALL APPLY TO
    22  INCREASES IN THE TAX RATE ABOVE THE LIMITS PROVIDED IN THIS
    23  SECTION.
    24                            SUBCHAPTER D
    25               SCHOOL DISTRICT PROPERTY TAX REDUCTION
    26  SECTION 331.  (RESERVED).
    27  SECTION 331.1.  PROPERTY TAX REDUCTION IN 2006.
    28     (A)  GENERAL RULE.--EXCEPT AS OTHERWISE PROVIDED IN THIS
    29  SECTION, A BOARD OF SCHOOL DIRECTORS MAY LEVY, ASSESS AND
    30  COLLECT AN ADDITIONAL EARNED INCOME AND NET PROFITS TAX, FOR THE
    20051H0039B0091                 - 17 -     

     1  PURPOSE OF ANNUALLY FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
     2     (B)  ADOPTION OF RESOLUTION.--IF A BOARD OF SCHOOL DIRECTORS
     3  ELECTS TO LEVY A TAX UNDER THIS SECTION, IT SHALL PROPOSE A
     4  RESOLUTION, NO LATER THAN 60 DAYS PRIOR TO THE ADOPTION OF ITS
     5  FINAL BUDGET FOR THE 2006-2007 FISCAL YEAR, AND GIVE NOTICE OF
     6  ITS INTENTION TO LEVY A TAX UNDER THIS SECTION IN THE MANNER
     7  PROVIDED FOR IN SECTION 4 OF THE LOCAL TAX ENABLING ACT. THE
     8  BOARD OF SCHOOL DIRECTORS SHALL CONDUCT AT LEAST ONE PUBLIC
     9  HEARING ON THE PROPOSED RESOLUTION NO LATER THAN 20 DAYS PRIOR
    10  TO THE ADOPTION OF ITS FINAL BUDGET AND SHALL ADOPT THE PROPOSED
    11  RESOLUTION PRIOR TO THE ADOPTION OF ITS FINAL BUDGET.
    12     (C)  PUBLIC NOTICE.--NO LATER THAN 15 DAYS PRIOR TO THE
    13  PUBLIC HEARING REQUIRED UNDER SUBSECTION (B), THE BOARD OF
    14  SCHOOL DIRECTORS SHALL PUBLISH A NOTICE IN A NEWSPAPER OF
    15  GENERAL CIRCULATION AND ON THE SCHOOL DISTRICT'S PUBLICLY
    16  ACCESSIBLE INTERNET WEBSITE. THE STATEMENT SHALL INCLUDE:
    17         (1)  THE REASON FOR THE TAX.
    18         (2)  THE ESTIMATED INCREASE IN REVENUE THAT THE BOARD OF
    19     SCHOOL DIRECTORS HAS INCLUDED IN THE PROPOSED TAX RATE AS
    20     AUTHORIZED UNDER SECTION 321(B)(4).
    21         (3)  THE ESTIMATED PER HOMESTEAD TAX REDUCTION.
    22         (4)  THE CURRENT RATE OF EARNED INCOME AND NET PROFITS
    23     TAX LEVIED BY THE SCHOOL DISTRICT.
    24         (5)  THE PROPOSED TAX RATE.
    25     (D)  PROPOSED TAX RATE.--THE BOARD OF SCHOOL DIRECTORS SHALL
    26  ESTABLISH THE PROPOSED RATE OF THE EARNED INCOME AND NET PROFITS
    27  TAX IN THE RESOLUTION REQUIRED UNDER SUBSECTION (B). THE
    28  PROPOSED TAX RATE SHALL NOT BE GREATER THAN THE RATE REQUIRED TO
    29  PROVIDE AN EXCLUSION FOR HOMESTEAD AND FARMSTEAD PROPERTY EQUAL
    30  TO 35% OF THE MAXIMUM HOMESTEAD EXCLUSION UNDER 53 PA.C.S. §
    20051H0039B0091                 - 18 -     

     1  8586 (RELATING TO LIMITATIONS), PROVIDED THAT THE PROPOSED TAX
     2  RATE SHALL NOT EXCEED 1%.
     3     (E)  REQUIREMENTS.--A SCHOOL DISTRICT THAT IS SUBJECT TO 53
     4  PA.C.S. CH. 87 (RELATING TO OTHER SUBJECTS OF TAXATION) AND
     5  ELECTS TO LEVY A TAX UNDER THIS SECTION SHALL COMPLY WITH THE
     6  PROVISIONS OF THIS CHAPTER AND THE FOLLOWING:
     7         (1)  THE SCHOOL DISTRICT SHALL CONVERT ITS EARNED INCOME
     8     AND NET PROFITS TAX AUTHORIZED UNDER 53 PA.C.S. § 8703
     9     (RELATING TO ADOPTION OF REFERENDUM) TO AN EARNED INCOME AND
    10     NET PROFITS TAX AUTHORIZED UNDER THIS CHAPTER AT THE SAME
    11     RATE AS THE TAX WAS LEVIED UNDER 53 PA.C.S. § 8703 ON THE
    12     DATE OF CONVERSION. THE TAX AUTHORIZED UNDER THIS SUBSECTION
    13     SHALL BE SUBJECT TO THE PROVISIONS OF THIS SUBSECTION AND
    14     SECTIONS 323, 324, 325 AND 326.
    15         (2)  THE SCHOOL DISTRICT SHALL COMBINE ALL REVENUE
    16     GENERATED FOR FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS
    17     UNDER 53 PA.C.S. § 8703 WITH ANY REVENUE COLLECTED FOR THE
    18     PURPOSES OF FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS UNDER
    19     THIS CHAPTER.
    20         (3)  WHEN CALCULATING THE PROPOSED RATE OF EARNED INCOME
    21     AND NET PROFITS TAX PURSUANT TO SUBSECTIONS (B), (C) AND (D),
    22     THE SCHOOL DISTRICT SHALL INCLUDE ANY REVENUE COLLECTED FOR
    23     THE PURPOSES OF HOMESTEAD AND FARMSTEAD EXCLUSIONS.
    24         (4)  THE SCHOOL DISTRICT SHALL NO LONGER IMPLEMENT ANY
    25     PROVISION OF 53 PA.C.S. CH. 87.
    26     (F)  NONAPPLICABILITY TO CERTAIN SCHOOL DISTRICTS.--THIS
    27  SECTION SHALL NOT APPLY TO A SCHOOL DISTRICT OF THE FIRST CLASS,
    28  A SCHOOL DISTRICT OF THE FIRST CLASS A OR A SCHOOL DISTRICT
    29  COTERMINOUS WITH A CITY OF THE SECOND CLASS A.
    30  SECTION 331.2.  2007 REFERENDUM.
    20051H0039B0091                 - 19 -     

     1     (A)  GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS THAT DOES NOT
     2  ELECT TO LEVY A TAX UNDER SECTION 331.1 SHALL SUBMIT AT THE
     3  PRIMARY ELECTION OF 2007 A REFERENDUM QUESTION TO THE ELECTORS
     4  OF THE SCHOOL DISTRICT SEEKING VOTER APPROVAL ALLOWING THE
     5  SCHOOL DISTRICT TO LEVY, ASSESS AND COLLECT AN EARNED INCOME AND
     6  NET PROFITS TAX FOR THE PURPOSE OF ANNUALLY FUNDING HOMESTEAD
     7  AND FARMSTEAD EXCLUSIONS. A BOARD OF SCHOOL DIRECTORS THAT DOES
     8  ELECT TO LEVY A TAX UNDER SECTION 333.1 MAY SUBMIT A REFERENDUM
     9  QUESTION TO THE ELECTORS UNDER THIS SECTION.
    10     (B)  ADOPTION OF RESOLUTION.--NO LATER THAN MARCH 13, 2007, A
    11  SCHOOL DISTRICT SUBJECT TO THIS SECTION SHALL ADOPT A RESOLUTION
    12  AUTHORIZING THE REFERENDUM QUESTION REQUIRED UNDER SUBSECTION
    13  (A). THE BOARD OF SCHOOL DIRECTORS SHALL GIVE PUBLIC NOTICE OF
    14  ITS INTENT TO ADOPT THE RESOLUTION IN THE MANNER PROVIDED FOR IN
    15  SECTION 4 OF THE LOCAL TAX ENABLING ACT AND MUST CONDUCT AT
    16  LEAST ONE PUBLIC HEARING ON THE RESOLUTION.
    17     (C)  PROPOSED TAX RATE.--THE BOARD OF SCHOOL DIRECTORS SHALL
    18  ESTABLISH THE RATE OF THE PROPOSED EARNED INCOME AND NET PROFITS
    19  TAX IN THE RESOLUTION REQUIRED UNDER SUBSECTION (B). THE RATE
    20  SHALL NOT EXCEED THE RATE REQUIRED TO PROVIDE AN EXCLUSION FOR
    21  HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY EQUAL TO THE MAXIMUM
    22  EXCLUSION UNDER 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS) AND
    23  SHALL NOT BE LESS THAN THE RATE REQUIRED TO PROVIDE AN EXCLUSION
    24  FOR HOMESTEAD AND FARMSTEAD PROPERTY EQUAL TO 35% OF THE MAXIMUM
    25  HOMESTEAD EXCLUSION, PROVIDED THAT A SCHOOL DISTRICT SHALL NOT
    26  BE REQUIRED TO PROPOSE AN EARNED INCOME AND NET PROFITS TAX
    27  UNDER THIS SECTION THAT IS GREATER THAN 1%.
    28     (D)  SUBMITTAL OF REFERENDUM TO COUNTY OFFICIALS.--A BOARD OF
    29  SCHOOL DIRECTORS SUBJECT TO THIS SECTION SHALL SUBMIT THE
    30  REFERENDUM QUESTION REQUIRED UNDER SUBSECTION (A) TO THE
    20051H0039B0091                 - 20 -     

     1  ELECTION OFFICIALS OF EACH COUNTY IN WHICH THE SCHOOL DISTRICT
     2  IS SITUATE NO LATER THAN 30 DAYS PRIOR TO THE PRIMARY ELECTION
     3  OF 2007. THE ELECTION OFFICIALS SHALL CAUSE THE REFERENDUM
     4  QUESTION TO BE SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT
     5  AT THE PRIMARY ELECTION OF 2007.
     6     (E)  REFERENDUM QUESTION.--
     7         (1)  THE REFERENDUM QUESTION SUBMITTED TO THE ELECTORS OF
     8     THE SCHOOL DISTRICT AT THE PRIMARY ELECTION OF 2007 SHALL
     9     STATE THE RATE OF THE PROPOSED EARNED INCOME AND NET PROFITS
    10     TAX TO BE LEVIED, THE REASON FOR THE TAX, THE ESTIMATED PER
    11     HOMESTEAD TAX REDUCTION AND THE CURRENT RATE OF EARNED INCOME
    12     AND NET PROFITS TAX LEVIED BY THE SCHOOL DISTRICT. THE
    13     QUESTION SHALL BE CLEAR AND IN LANGUAGE THAT IS READILY
    14     UNDERSTANDABLE BY A LAYPERSON AND SHALL BE FRAMED IN THE
    15     FOLLOWING FORM:
    16         DO YOU FAVOR IMPOSING AN ADDITIONAL X% EARNED INCOME TAX?
    17         THE REVENUE GENERATED FROM THE INCREASED TAX RATE WILL BE
    18         USED TO REDUCE TAXES ON QUALIFIED RESIDENTIAL PROPERTIES
    19         BY (INSERT AMOUNT OF REDUCTION). THE CURRENT EARNED
    20         INCOME TAX RATE IS Z%.
    21         (2)  THE ELECTION OFFICIALS OF EACH COUNTY SHALL, IN
    22     CONSULTATION WITH THE BOARD OF SCHOOL DIRECTORS, DRAFT A
    23     NONLEGAL INTERPRETATIVE STATEMENT WHICH SHALL ACCOMPANY THE
    24     REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF THE
    25     ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
    26     PENNSYLVANIA ELECTION CODE. THE NONLEGAL INTERPRETATIVE
    27     STATEMENT SHALL INFORM THE VOTERS OF:
    28             (I)  THE REASON FOR THE TAX.
    29             (II)  THE ESTIMATED INCREASE IN REVENUE THAT THE
    30         BOARD OF SCHOOL DIRECTORS HAS INCLUDED IN THE PROPOSED
    20051H0039B0091                 - 21 -     

     1         TAX RATE AS AUTHORIZED UNDER SECTION 321(B)(4).
     2             (III)  THE ESTIMATED PER HOMESTEAD TAX REDUCTION.
     3             (IV)  THE CURRENT RATE OF EARNED INCOME AND NET
     4         PROFITS TAX LEVIED BY THE SCHOOL DISTRICT.
     5             (V)  THE PROPOSED TAX RATE.
     6         (3)  THE ELECTION OFFICIALS OF A COUNTY SHALL CERTIFY THE
     7     RESULTS OF THE REFERENDUM REQUIRED UNDER THIS SECTION TO THE
     8     DEPARTMENT OF STATE IN ACCORDANCE WITH ARTICLE XIV OF THE
     9     PENNSYLVANIA ELECTION CODE AND SHALL NOTIFY THE SCHOOL
    10     DISTRICT OF THE CERTIFIED RESULTS AS SOON AS IS PRACTICABLE.
    11         (4)  APPROVAL OF THE REFERENDUM REQUIRED UNDER THIS
    12     SUBSECTION SHALL BE BY A MAJORITY OF THE ELECTORS VOTING ON
    13     THE QUESTION IN THE SCHOOL DISTRICT.
    14         (5)  WHERE THE REFERENDUM QUESTION UNDER THIS SUBSECTION
    15     IS APPROVED BY THE ELECTORATE, THE NEW TAX RATE SHALL TAKE
    16     EFFECT BEGINNING ON THE FIRST DAY OF THE FISCAL YEAR WHICH
    17     BEGINS AFTER THE TAX IS AUTHORIZED.
    18         (6)  A SCHOOL DISTRICT THAT IS SUBJECT TO 53 PA.C.S. CH.
    19     87 (RELATING TO OTHER SUBJECTS OF TAXATION) SHALL COMPLY WITH
    20     THE PROVISIONS OF THIS CHAPTER AND THE FOLLOWING:
    21             (I)  THE SCHOOL DISTRICT SHALL CONVERT ITS EARNED
    22         INCOME AND NET PROFITS TAX AUTHORIZED UNDER 53 PA.C.S. §
    23         8703 (RELATING TO ADOPTION OF REFERENDUM) TO AN EARNED
    24         INCOME AND NET PROFITS TAX AUTHORIZED UNDER THIS CHAPTER
    25         AT THE SAME RATE AS THE TAX LEVIED UNDER 53 PA.C.S. §
    26         8703 ON THE DATE OF CONVERSION. THE TAX AUTHORIZED UNDER
    27         THIS SUBSECTION SHALL BE SUBJECT TO THE PROVISIONS OF
    28         THIS SUBSECTION  AND SECTIONS 323, 324, 325 AND 326.
    29             (II)  THE SCHOOL DISTRICT SHALL COMBINE ALL REVENUE
    30         GENERATED FOR FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS
    20051H0039B0091                 - 22 -     

     1         UNDER 53 PA.C.S. § 8703 WITH ANY REVENUE COLLECTED FOR
     2         THE PURPOSES OF FUNDING HOMESTEAD AND FARMSTEAD
     3         EXCLUSIONS UNDER THIS CHAPTER.
     4             (III)  WHEN CALCULATING THE PROPOSED RATE OF EARNED
     5         INCOME AND NET PROFITS TAX PURSUANT TO SUBSECTIONS (B),
     6         (C) AND (D), THE SCHOOL DISTRICT SHALL INCLUDE ANY
     7         REVENUE COLLECTED FOR THE PURPOSES OF HOMESTEAD AND
     8         FARMSTEAD EXCLUSIONS.
     9             (IV)  THE SCHOOL DISTRICT SHALL NO LONGER IMPLEMENT
    10         ANY PROVISION OF 53 PA.C.S. CH. 87.
    11     (F)  ELECTION PROCEEDINGS.--PROCEEDINGS UNDER THIS SECTION
    12  SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF THE PENNSYLVANIA
    13  ELECTION CODE.
    14     (G)  NONAPPLICABILITY TO CERTAIN SCHOOL DISTRICTS.--THIS
    15  SECTION SHALL NOT APPLY TO A SCHOOL DISTRICT OF THE FIRST CLASS,
    16  A SCHOOL DISTRICT OF THE FIRST CLASS A OR A SCHOOL DISTRICT
    17  COTERMINOUS WITH A CITY OF THE SECOND CLASS A.
    18  SECTION 332.  ADOPTION OF FURTHER REFERENDUM.
    19     (A)  GENERAL RULE.--IN ADDITION TO THE PROVISIONS OF SECTIONS
    20  331.1 AND 331.2, A BOARD OF SCHOOL DIRECTORS MAY:
    21         (1)  LEVY, ASSESS AND COLLECT AN EARNED INCOME AND NET
    22     PROFITS TAX AUTHORIZED UNDER SECTION 321(B)(2) ONLY AFTER
    23     OBTAINING THE APPROVAL OF THE ELECTORATE OF THE SCHOOL
    24     DISTRICT IN A PUBLIC REFERENDUM AT A MUNICIPAL ELECTION. FOR
    25     A SCHOOL DISTRICT TO WHICH SECTION 331.1 OR 331.2 APPLIES,
    26     THE FIRST SUCH PUBLIC REFERENDUM MUST BE CONDUCTED NO EARLIER
    27     THAN THE MUNICIPAL ELECTION FOLLOWING THE YEAR IN WHICH A
    28     BOARD OF SCHOOL DIRECTORS TAKES ACTION UNDER SECTION 331.1 OR
    29     331.2. WHERE A BOARD OF SCHOOL DIRECTORS TAKES ACTION UNDER
    30     SECTIONS 331.1 AND 331.2, THE FIRST PUBLIC REFERENDUM MUST BE
    20051H0039B0091                 - 23 -     

     1     CONDUCTED NO EARLIER THAN THE MUNICIPAL ELECTION FOLLOWING
     2     THE YEAR IN WHICH THE BOARD OF SCHOOL DIRECTORS TAKES ACTION
     3     UNDER SECTION 331.2.
     4         (2)  LEVY, ASSESS AND COLLECT A PERSONAL INCOME TAX
     5     AUTHORIZED UNDER SECTION 321(C) ONLY AFTER OBTAINING THE
     6     APPROVAL OF THE ELECTORATE OF THE SCHOOL DISTRICT IN A PUBLIC
     7     REFERENDUM AT A MUNICIPAL ELECTION. THE FIRST SUCH PUBLIC
     8     REFERENDUM MUST BE CONDUCTED NO EARLIER THAN THE MUNICIPAL
     9     ELECTION OF 2009 AND NO SUCH PUBLIC REFERENDUM MAY BE
    10     CONDUCTED UNTIL THE DEPARTMENT OF REVENUE RECEIVES FINAL
    11     APPROVAL OF REGULATIONS GOVERNING THE COLLECTION OF A
    12     PERSONAL INCOME TAX.
    13     (B)  SUBMITTAL OF REFERENDUM.--
    14         (1)  A BOARD OF SCHOOL DIRECTORS MAY SUBMIT, AT A
    15     MUNICIPAL ELECTION, A REFERENDUM QUESTION TO THE ELECTORS OF
    16     THE SCHOOL DISTRICT SEEKING VOTER APPROVAL ALLOWING THE
    17     SCHOOL DISTRICT TO LEVY, ASSESS AND COLLECT AN EARNED INCOME
    18     AND NET PROFITS TAX OR A PERSONAL INCOME TAX FOR THE PURPOSE
    19     OF ANNUALLY FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS OR
    20     MILLAGE REDUCTIONS IN CERTAIN CIRCUMSTANCES. PRIOR TO PLACING
    21     A REFERENDUM QUESTION ON THE BALLOT, THE BOARD OF SCHOOL
    22     DIRECTORS MUST ADOPT A RESOLUTION PURSUANT TO THIS SECTION.
    23     THE BOARD OF SCHOOL DIRECTORS MUST GIVE PUBLIC NOTICE OF ITS
    24     INTENT TO ADOPT THE RESOLUTION IN THE MANNER PROVIDED BY
    25     SECTION 4 OF THE LOCAL TAX ENABLING ACT AND MUST CONDUCT AT
    26     LEAST ONE PUBLIC HEARING ON THE RESOLUTION.
    27         (2)  THE BOARD OF SCHOOL DIRECTORS SHALL SUBMIT THE
    28     REFERENDUM QUESTION REQUIRED UNDER THIS SECTION TO THE
    29     ELECTION OFFICIALS OF EACH COUNTY IN WHICH THE SCHOOL
    30     DISTRICT IS SITUATE NO LATER THAN 60 DAYS PRIOR TO A
    20051H0039B0091                 - 24 -     

     1     MUNICIPAL ELECTION. THE ELECTION OFFICIALS SHALL CAUSE THE
     2     REFERENDUM QUESTION TO BE SUBMITTED TO THE ELECTORS OF THE
     3     SCHOOL DISTRICT.
     4         (3)  THE REFERENDUM QUESTION SHALL STATE THE RATE OF THE
     5     PROPOSED EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME
     6     TAX TO BE LEVIED, THE REASON FOR THE TAX, THE ESTIMATED PER
     7     HOMESTEAD TAX REDUCTION AND THE CURRENT RATE OF EARNED INCOME
     8     AND NET PROFITS OR PERSONAL INCOME TAX LEVIED BY THE SCHOOL
     9     DISTRICT. THE QUESTION SHALL BE CLEAR AND IN LANGUAGE THAT IS
    10     READILY UNDERSTANDABLE BY A LAYPERSON AND SHALL BE FRAMED IN
    11     ONE OF THE FOLLOWING FORMS WITH THE SCHOOL DISTRICT
    12     RESOLUTION ENUMERATING THE VARIABLE AMOUNTS REPRESENTED BY
    13     THE TERMS X, Y AND Z:
    14             (I)  DO YOU FAVOR IMPOSING AN ADDITIONAL X% (INSERT
    15         NAME OF TAX)? THE REVENUE GENERATED FROM THE INCREASED
    16         TAX RATE WILL BE USED TO REDUCE TAXES ON QUALIFIED
    17         RESIDENTIAL PROPERTY BY AN ESTIMATED AMOUNT OF $Y. THE
    18         CURRENT (INSERT NAME OF TAX) FOR THE SCHOOL DISTRICT IS
    19         Z%.
    20             (II)  DO YOU FAVOR CONVERTING THE SCHOOL DISTRICT'S
    21         CURRENT EARNED INCOME AND NET PROFITS TAX INTO A PERSONAL
    22         INCOME TAX AT X%? THE REVENUE GENERATED FROM THE PERSONAL
    23         INCOME TAX WILL BE USED TO REDUCE TAXES ON QUALIFIED
    24         RESIDENTIAL PROPERTY BY AN ESTIMATED AMOUNT OF $Y AND TO
    25         REPLACE THE REVENUE FROM THE CURRENT SCHOOL DISTRICT'S
    26         EARNED INCOME AND NET PROFITS TAX, WHICH IS NOW LEVIED AT
    27         Z%.
    28         (4)  THE ELECTION OFFICIALS OF EACH COUNTY SHALL, IN
    29     CONSULTATION WITH THE BOARD OF SCHOOL DIRECTORS, DRAFT A
    30     NONLEGAL INTERPRETATIVE STATEMENT WHICH SHALL ACCOMPANY THE
    20051H0039B0091                 - 25 -     

     1     REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF THE
     2     ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
     3     PENNSYLVANIA ELECTION CODE. THE NONLEGAL INTERPRETATIVE
     4     STATEMENT SHALL INFORM THE VOTERS OF:
     5             (I)  THE REASON FOR THE TAX;
     6             (II)  THE ESTIMATED INCREASE IN REVENUE WHICH THE
     7         BOARD OF SCHOOL DIRECTORS HAS INCLUDED IN THE PROPOSED
     8         TAX RATE AS AUTHORIZED UNDER SECTION 321(B)(4) OR SECTION
     9         321(C)(6);
    10             (III)  THE ESTIMATED PER HOMESTEAD TAX REDUCTION; AND
    11             (IV)  THE CURRENT RATE OF EARNED INCOME AND NET
    12         PROFITS TAX OR, IF APPLICABLE, PERSONAL INCOME TAX LEVIED
    13         BY THE SCHOOL DISTRICT.
    14     (C)  PROPOSED TAX RATE.--THE PROPOSED RATE OF THE EARNED
    15  INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX SHALL BE
    16  ESTABLISHED BY THE BOARD OF SCHOOL DIRECTORS OF THE SCHOOL
    17  DISTRICT AND SHALL NOT EXCEED THE RATE, WHEN COMBINED WITH THE
    18  TAX RATE AUTHORIZED UNDER SECTION 331.1 OR 331.2, REQUIRED TO
    19  PROVIDE AN EXCLUSION FOR HOMESTEAD PROPERTY AND FARMSTEAD
    20  PROPERTY EQUAL TO THE MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586.
    21     (D)  EFFECTIVE DATE.--IF THE REFERENDUM QUESTION UNDER THIS
    22  SECTION IS APPROVED BY THE ELECTORATE, THE NEW RATE OF THE
    23  EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX SHALL
    24  TAKE EFFECT PURSUANT TO SECTION 321(D).
    25     (E)  (RESERVED).
    26     (F)  (RESERVED).
    27     (G)  EFFECT ON CERTAIN SCHOOL DISTRICTS.--THIS SECTION SHALL
    28  NOT APPLY TO A SCHOOL DISTRICT OF THE FIRST CLASS.
    29     (H)  SCHOOL DISTRICTS OPERATING UNDER 53 PA.C.S. CH. 87.--
    30         (1)  (RESERVED).
    20051H0039B0091                 - 26 -     

     1         (2)  (RESERVED).
     2         (2.1)  THIS SUBSECTION SHALL APPLY TO A SCHOOL DISTRICT
     3     WHICH IS SUBJECT TO 53 PA.C.S. CH. 87 (RELATING TO OTHER
     4     SUBJECTS OF TAXATION).
     5         (3)  A SCHOOL DISTRICT UNDER THIS SUBSECTION SHALL
     6     CONVERT ITS EARNED INCOME AND NET PROFITS TAX AUTHORIZED
     7     UNDER 53 PA.C.S. § 8703 TO AN EARNED INCOME AND NET PROFITS
     8     TAX AUTHORIZED UNDER THIS SUBSECTION AT THE SAME RATE AS THE
     9     TAX WAS LEVIED UNDER 53 PA.C.S. § 8703 ON THE DATE OF
    10     CONVERSION. THE TAX AUTHORIZED UNDER THIS SUBSECTION SHALL BE
    11     SUBJECT TO THE PROVISIONS OF SECTIONS 323, 324, 325 AND 326.
    12         (4)  A SCHOOL DISTRICT UNDER THIS SUBSECTION SHALL
    13     COMBINE ALL REVENUE GENERATED FOR FUNDING HOMESTEAD AND
    14     FARMSTEAD EXCLUSIONS UNDER 53 PA.C.S. § 8703 WITH ANY REVENUE
    15     COLLECTED FOR THE PURPOSES OF FUNDING HOMESTEAD AND FARMSTEAD
    16     EXCLUSIONS UNDER THIS CHAPTER.
    17     (I)  PENNSYLVANIA ELECTION CODE PROVISIONS.--PROCEEDINGS
    18  UNDER THIS SECTION SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF
    19  THE PENNSYLVANIA ELECTION CODE.
    20  SECTION 333.  PUBLIC REFERENDUM REQUIREMENTS FOR INCREASING
    21                 CERTAIN TAXES.
    22     (A)  APPLICABILITY.--THIS SECTION SHALL APPLY AS FOLLOWS:
    23         (1)  FOR A BOARD OF SCHOOL DIRECTORS THAT ELECTED TO
    24     PARTICIPATE IN THE FORMER ACT OF JULY 5, 2004 (P.L.654,
    25     NO.72), KNOWN AS THE HOMEOWNER TAX RELIEF ACT, THIS SECTION
    26     SHALL APPLY BEGINNING WITH ANY PROPOSED TAX INCREASE THAT
    27     TAKES EFFECT IN THE 2006-2007 FISCAL YEAR.
    28         (2)  FOR A BOARD OF SCHOOL DIRECTORS THAT DID NOT ELECT
    29     TO PARTICIPATE IN THE FORMER HOMEOWNER TAX RELIEF ACT, ANY
    30     PROPOSED TAX INCREASE THAT TAKES EFFECT IN THE 2006-2007
    20051H0039B0091                 - 27 -     

     1     FISCAL YEAR SHALL NOT EXCEED THE INDEX, UNLESS AN EXCEPTION
     2     UNDER SUBSECTION (F) OR (N) IS APPROVED PURSUANT TO
     3     SUBSECTION (I) OR (J), PROVIDED THAT A BOARD OF SCHOOL
     4     DIRECTORS SHALL HAVE THE AUTHORITY TO PETITION THE COURT OF
     5     COMMON PLEAS FOR AN ADDITIONAL TAX RATE INCREASE IF THE TAX
     6     RATE INCREASE ALLOWED BY THE INDEX AND ANY EXCEPTION APPROVED
     7     PURSUANT TO SUBSECTION (I) OR (J) IS INSUFFICIENT TO BALANCE
     8     THE PROPOSED BUDGET. THE COURT SHALL GRANT THE SCHOOL
     9     DISTRICT'S REQUEST FOR THE TAX RATE INCREASE UPON GOOD CAUSE
    10     SHOWN IF THE SCHOOL DISTRICT PROVES BY CLEAR AND CONVINCING
    11     EVIDENCE THAT THE TAX RATE INCREASE AUTHORIZED UNDER THIS
    12     PARAGRAPH IS INSUFFICIENT TO BALANCE THE PROPOSED BUDGET. FOR
    13     A BOARD OF SCHOOL DIRECTORS SUBJECT TO THIS PARAGRAPH, THE
    14     DATES BY WHICH THE BOARD OF SCHOOL DIRECTORS, THE DEPARTMENT
    15     OF EDUCATION OR THE COURT OF COMMON PLEAS SHALL BE REQUIRED
    16     TO COMPLY WITH SECTION 311 AND SUBSECTIONS (E), (I) AND (J)
    17     SHALL BE 50 DAYS AFTER THE DATES SET FORTH IN THOSE
    18     PROVISIONS.
    19         (3)  THIS SECTION SHALL APPLY TO EACH BOARD OF SCHOOL
    20     DIRECTORS BEGINNING WITH ANY PROPOSED TAX INCREASE THAT TAKES
    21     EFFECT IN THE 2007-2008 FISCAL YEAR AND EACH FISCAL YEAR
    22     THEREAFTER.
    23     (B)  PROHIBITIONS.--EXCEPT AS SET FORTH IN SUBSECTION (I) AND
    24  (J), UNLESS THERE IS COMPLIANCE WITH SUBSECTION (C), A BOARD OF
    25  SCHOOL DIRECTORS MAY NOT DO ANY OF THE FOLLOWING:
    26         (1)  INCREASE THE RATE OF A TAX LEVIED FOR THE SUPPORT OF
    27     THE PUBLIC SCHOOLS BY MORE THAN THE INDEX. FOR PURPOSES OF
    28     COMPLIANCE WITH THIS PARAGRAPH, A SCHOOL DISTRICT WHICH IS
    29     SITUATED IN MORE THAN ONE COUNTY AND WHICH LEVIES REAL ESTATE
    30     TAXES UNDER SECTION 672.1 OF THE ACT OF MARCH 10, 1949
    20051H0039B0091                 - 28 -     

     1     (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949,
     2     SHALL APPLY THE INDEX TO EACH SEPARATE RATE OF REAL ESTATE
     3     TAXES LEVIED.
     4         (2)  LEVY A TAX FOR THE SUPPORT OF THE PUBLIC SCHOOLS
     5     WHICH WAS NOT LEVIED IN THE 2005-2006 FISCAL YEAR.
     6         (3)  RAISE THE RATE OF THE EARNED INCOME AND NET PROFITS
     7     TAX IF ALREADY IMPOSED UNDER THE AUTHORITY OF THE LOCAL TAX
     8     ENABLING ACT, EXCEPT AS OTHERWISE PROVIDED FOR UNDER SECTION
     9     331.1, 331.2 OR 332.
    10         (4)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER
    11     TO THE CONTRARY, THE ADOPTION OF A REFERENDUM UNDER SECTION
    12     331.2 OR 332 CONFERS ON THE BOARD OF SCHOOL DIRECTORS THE
    13     AUTHORITY TO RAISE INCOME TAXES ONLY TO THE EXTENT CONTAINED
    14     IN THE LANGUAGE OF THE REFERENDUM, AND ANY FUTURE INCREASE OF
    15     AN INCOME TAX TO BE USED FOR THE PURPOSE OF PROPERTY TAX
    16     REDUCTION SHALL BE SUBMITTED TO THE ELECTORS OF THE SCHOOL
    17     DISTRICT AT A SUBSEQUENT MUNICIPAL ELECTION PURSUANT TO THE
    18     PROVISIONS OF SECTION 332.
    19     (C)  REFERENDUM.--
    20         (1)  IN ORDER TO TAKE AN ACTION PROHIBITED UNDER
    21     SUBSECTION (B)(1), AT THE ELECTION IMMEDIATELY PRECEDING THE
    22     START OF THE SCHOOL DISTRICT FISCAL YEAR IN WHICH THE
    23     PROPOSED TAX INCREASE WOULD TAKE EFFECT, A REFERENDUM STATING
    24     THE SPECIFIC RATE OR RATES OF THE TAX INCREASE MUST BE
    25     SUBMITTED TO THE ELECTORS OF THE SCHOOL DISTRICT, AND A
    26     MAJORITY OF THE ELECTORS VOTING ON THE QUESTION MUST APPROVE
    27     THE INCREASE.
    28         (2)  IN ORDER TO TAKE AN ACTION UNDER SUBSECTION (B)(2),
    29     AT THE ELECTION IMMEDIATELY PRECEDING THE START OF THE SCHOOL
    30     DISTRICT FISCAL YEAR IN WHICH THE PROPOSED TAX WOULD TAKE
    20051H0039B0091                 - 29 -     

     1     EFFECT, A REFERENDUM STATING THE PROPOSED TAX AND THE RATE AT
     2     WHICH IT WILL BE LEVIED MUST BE SUBMITTED TO THE ELECTORS OF
     3     THE SCHOOL DISTRICT, AND A MAJORITY OF THE ELECTORS VOTING ON
     4     THE QUESTION MUST APPROVE THE TAX.
     5         (3)  EXCEPT AS SET FORTH IN SUBSECTIONS (I) AND (J), A
     6     SCHOOL DISTRICT ACTING PURSUANT TO THIS SUBSECTION SHALL
     7     SUBMIT THE REFERENDUM QUESTION REQUIRED UNDER THIS SECTION TO
     8     THE ELECTION OFFICIALS OF EACH COUNTY IN WHICH IT IS SITUATE
     9     NO LATER THAN 60 DAYS PRIOR TO THE ELECTION IMMEDIATELY
    10     PRECEDING THE FISCAL YEAR IN WHICH THE TAX INCREASE WOULD
    11     TAKE EFFECT.
    12         (4)  THE ELECTION OFFICIALS OF EACH COUNTY SHALL, IN
    13     CONSULTATION WITH THE BOARD OF SCHOOL DIRECTORS, DRAFT A
    14     NONLEGAL INTERPRETATIVE STATEMENT WHICH SHALL ACCOMPANY THE
    15     REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF THE
    16     ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
    17     PENNSYLVANIA ELECTION CODE. THE NONLEGAL INTERPRETATIVE
    18     STATEMENT SHALL INCLUDE INFORMATION THAT REFERENCES THE ITEMS
    19     OF EXPENDITURE FOR WHICH THE TAX INCREASE IS SOUGHT AND THE
    20     CONSEQUENCE OF THE REFERENDUM BEING DISAPPROVED BY THE
    21     ELECTORATE.
    22     (D)  FAILURE TO APPROVE REFERENDUM.--
    23         (1)  IF A REFERENDUM QUESTION SUBMITTED UNDER SUBSECTION
    24     (C)(1) IS NOT APPROVED, THE BOARD OF SCHOOL DIRECTORS MAY
    25     APPROVE AN INCREASE IN THE TAX RATE OF NOT MORE THAN THE
    26     INDEX.
    27         (2)  IF A REFERENDUM QUESTION SUBMITTED UNDER SUBSECTION
    28     (C)(2) IS NOT APPROVED, THE BOARD OF SCHOOL DIRECTORS MAY NOT
    29     LEVY THE TAX.
    30     (E)  TAX RATE SUBMISSIONS.--A SCHOOL DISTRICT THAT HAS
    20051H0039B0091                 - 30 -     

     1  ADOPTED A PRELIMINARY BUDGET PROPOSAL UNDER SECTION 311 THAT
     2  INCLUDES AN INCREASE IN THE RATE OF ANY TAX LEVIED FOR THE
     3  SUPPORT OF PUBLIC SCHOOLS SHALL SUBMIT INFORMATION ON THE
     4  INCREASE TO THE DEPARTMENT ON A UNIFORM FORM PREPARED BY THE
     5  DEPARTMENT. THE SCHOOL DISTRICT SHALL SUBMIT SUCH INFORMATION NO
     6  LATER THAN 85 DAYS PRIOR TO THE DATE OF THE ELECTION IMMEDIATELY
     7  PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S FISCAL YEAR.
     8  THE DEPARTMENT SHALL COMPARE THE PROPOSED PERCENTAGE INCREASE IN
     9  THE RATE OF ANY TAX WITH THE INDEX. WITHIN TEN DAYS OF THE
    10  RECEIPT OF THE INFORMATION REQUIRED UNDER THIS SUBSECTION BUT NO
    11  LATER THAN 75 DAYS PRIOR TO THE DATE OF THE ELECTION IMMEDIATELY
    12  PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S FISCAL YEAR,
    13  THE DEPARTMENT SHALL INFORM THE SCHOOL DISTRICT WHETHER THE
    14  PROPOSED TAX RATE INCREASE IS LESS THAN OR EQUAL TO THE INDEX.
    15  IF THE DEPARTMENT DETERMINES THAT THE PROPOSED PERCENTAGE
    16  INCREASE IN THE RATE OF THE TAX EXCEEDS THE INDEX, THE
    17  DEPARTMENT SHALL NOTIFY THE SCHOOL DISTRICT THAT:
    18         (1)  THE PROPOSED TAX INCREASE MUST BE REDUCED TO AN
    19     AMOUNT LESS THAN OR EQUAL TO THE INDEX;
    20         (2)  THE PROPOSED TAX INCREASE MUST BE APPROVED BY THE
    21     ELECTORATE UNDER SUBSECTION (C)(1); OR
    22         (3)  AN EXCEPTION MUST BE SOUGHT UNDER SUBSECTIONS (I)
    23     AND (J).
    24     (F)  REFERENDUM EXCEPTIONS.--A SCHOOL DISTRICT MAY, WITHOUT
    25  SEEKING VOTER APPROVAL UNDER SUBSECTION (C), INCREASE THE RATE
    26  OF A TAX LEVIED FOR THE SUPPORT OF THE PUBLIC SCHOOLS BY MORE
    27  THAN THE INDEX IF ALL OF THE FOLLOWING APPLY:
    28         (1)  THE REVENUE RAISED BY THE ALLOWABLE INCREASE UNDER
    29     THE INDEX IS INSUFFICIENT TO BALANCE THE PROPOSED BUDGET DUE
    30     TO ONE OR MORE OF THE EXPENDITURES LISTED IN PARAGRAPH (2).
    20051H0039B0091                 - 31 -     

     1         (2)  THE REVENUE GENERATED BY INCREASING THE RATE OF A
     2     TAX BY MORE THAN THE INDEX WILL BE USED TO PAY FOR ANY OF THE
     3     FOLLOWING:
     4             (I)  COSTS INCURRED IN RESPONDING TO OR RECOVERING
     5         FROM AN EMERGENCY OR DISASTER DECLARED PURSUANT TO 35
     6         PA.C.S. § 7301 (RELATING TO GENERAL AUTHORITY OF
     7         GOVERNOR) OR 75 PA.C.S. § 6108 (RELATING TO POWER OF
     8         GOVERNOR DURING EMERGENCY).
     9             (II)  COSTS TO IMPLEMENT A COURT ORDER OR AN
    10         ADMINISTRATIVE ORDER FROM A FEDERAL OR STATE AGENCY AS
    11         LONG AS THE TAX INCREASE IS RESCINDED FOLLOWING
    12         FULFILLMENT OF THE COURT ORDER OR ADMINISTRATIVE ORDER.
    13             (III)  COSTS ASSOCIATED WITH THE FOLLOWING:
    14                 (A)  TO PAY INTEREST AND PRINCIPAL ON ANY
    15             INDEBTEDNESS INCURRED UNDER 53 PA.C.S. PT. VII SUBPT.
    16             B (RELATING TO INDEBTEDNESS AND BORROWING) PRIOR TO
    17             SEPTEMBER 4, 2004. IN NO CASE MAY THE SCHOOL DISTRICT
    18             INCUR ADDITIONAL DEBT UNDER THIS CLAUSE EXCEPT FOR
    19             THE REFINANCING OF EXISTING DEBT, INCLUDING THE
    20             PAYMENT OF COSTS AND EXPENSES RELATED TO SUCH
    21             REFINANCING AND THE ESTABLISHMENT OF FUNDING OF
    22             APPROPRIATE DEBT SERVICE RESERVES. AN INCREASE UNDER
    23             THIS CLAUSE SHALL BE RESCINDED FOLLOWING THE FINAL
    24             PAYMENT OF INTEREST AND PRINCIPAL.
    25                 (B)  TO PAY INTEREST AND PRINCIPAL ON ANY
    26             ELECTORAL DEBT INCURRED UNDER 53 PA.C.S. PT. VII
    27             SUBPT. B. AN INCREASE UNDER THIS CLAUSE SHALL BE
    28             RESCINDED FOLLOWING THE FINAL PAYMENT OF INTEREST AND
    29             PRINCIPAL.
    30                 (C)  TO PAY INTEREST AND PRINCIPAL ON
    20051H0039B0091                 - 32 -     

     1             INDEBTEDNESS FOR UP TO 60% OF THE CONSTRUCTION COST
     2             AVERAGE ON A SQUARE-FOOT BASIS IF ALL OF THE
     3             FOLLOWING APPLY:
     4                     (I)  THE INDEBTEDNESS IS FOR A SCHOOL
     5                 CONSTRUCTION PROJECT UNDER 22 PA. CODE CH. 21
     6                 (RELATING TO SCHOOL BUILDINGS).
     7                     (II)  THE INDEBTEDNESS TO FUND APPROPRIATE
     8                 DEBT SERVICE RESERVES FOR THE PROJECT IS INCURRED
     9                 AFTER SEPTEMBER 3, 2004.
    10                     (III)  THE INCREASE SOUGHT UNDER THIS CLAUSE
    11                 IS RESCINDED FOLLOWING FINAL PAYMENT OF INTEREST
    12                 AND PRINCIPAL.
    13                     (IV)  THE INDEBTEDNESS IS INCURRED ONLY AFTER
    14                 EXISTING FUND BALANCES FOR SCHOOL CONSTRUCTION
    15                 AND ANY UNDESIGNATED FUND BALANCES HAVE BEEN
    16                 FULLY COMMITTED TO FUND THE PROJECT.
    17                     (V)  THE INDEBTEDNESS IS FOR AN ACADEMIC
    18                 ELEMENTARY OR ACADEMIC SECONDARY SCHOOL BUILDING.
    19                 FOR PURPOSES OF THIS SUBCLAUSE, THE FOLLOWING
    20                 SHALL NOT BE CONSIDERED TO BE AN ACADEMIC
    21                 ELEMENTARY OR ACADEMIC SECONDARY SCHOOL BUILDING:
    22                 NATATORIUM, STADIUM BLEACHERS, ATHLETIC FIELD,
    23                 ATHLETIC FIELD LIGHTING EQUIPMENT AND APPARATUS
    24                 USED TO PROMOTE AND CONDUCT INTERSCHOLASTIC
    25                 ATHLETICS.
    26                     (VI)  FOR SCHOOL DISTRICTS OF THE SECOND,
    27                 THIRD AND FOURTH CLASS, THE PROJECT HAS BEEN
    28                 APPROVED BY THE DEPARTMENT UNDER SECTION 731 OF
    29                 THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN
    30                 AS THE PUBLIC SCHOOL CODE OF 1949. FOR
    20051H0039B0091                 - 33 -     

     1                 NONREIMBURSABLE PROJECTS IN SCHOOL DISTRICTS OF
     2                 THE FIRST CLASS A, THE PLANS AND SPECIFICATIONS
     3                 HAVE BEEN APPROVED BY THE BOARD OF SCHOOL
     4                 DIRECTORS. FOR REIMBURSABLE PROJECTS IN SCHOOL
     5                 DISTRICTS OF THE FIRST CLASS A, THE PLANS AND
     6                 SPECIFICATIONS HAVE BEEN APPROVED BY THE
     7                 DEPARTMENT PURSUANT TO 22 PA. CODE CH. 21.
     8                 (D)  TO PAY INTEREST AND PRINCIPAL ON
     9             INDEBTEDNESS FOR UP TO $250,000 OF THE CONSTRUCTION
    10             COST OF A NONACADEMIC SCHOOL CONSTRUCTION PROJECT, AS
    11             ADJUSTED ANNUALLY BY THE PERCENTAGE INCREASE IN THE
    12             AVERAGE OF THE STATEWIDE AVERAGE WEEKLY WAGE AND THE
    13             EMPLOYMENT COST INDEX. AN INCREASE UNDER THIS CLAUSE
    14             SHALL BE RESCINDED FOLLOWING THE FINAL PAYMENT OF
    15             INTEREST AND PRINCIPAL.
    16                 (E)  FOR PURPOSES OF THIS SUBPARAGRAPH, ELECTORAL
    17             DEBT INCLUDES THE REFUNDING OR REFINANCING OF
    18             ELECTORAL DEBT FOR WHICH AN EXCEPTION IS PERMITTED
    19             UNDER CLAUSE (B) AS LONG AS THE REFUNDING OR
    20             REFINANCING INCURS NO ADDITIONAL DEBT OTHER THAN FOR:
    21                     (I)  COSTS AND EXPENSES RELATED TO THE
    22                 REFUNDING OR REFINANCING; AND
    23                     (II)  FUNDING OF APPROPRIATE DEBT SERVICE
    24                 RESERVES.
    25                 (F)  FOR PURPOSES OF THIS SUBPARAGRAPH,
    26             INDEBTEDNESS INCLUDES THE REFUNDING OR REFINANCING OF
    27             INDEBTEDNESS FOR WHICH AN EXCEPTION IS PERMITTED
    28             UNDER CLAUSES (A), (C) AND (D) AS LONG AS THE
    29             REFUNDING OR REFINANCING INCURS NO ADDITIONAL DEBT
    30             OTHER THAN FOR:
    20051H0039B0091                 - 34 -     

     1                     (I)  COSTS AND EXPENSES RELATED TO THE
     2                 REFUNDING OR REFINANCING; AND
     3                     (II)  FUNDING OF APPROPRIATE DEBT SERVICE
     4                 RESERVES.
     5             (IV)  COSTS TO RESPOND TO CONDITIONS WHICH POSE AN
     6         IMMEDIATE THREAT OF SERIOUS PHYSICAL HARM OR INJURY TO
     7         THE STUDENTS, STAFF OR RESIDENTS OF THE SCHOOL DISTRICT,
     8         BUT ONLY UNTIL THE CONDITIONS CAUSING THE THREAT HAVE
     9         BEEN FULLY RESOLVED.
    10             (V)  COSTS INCURRED IN PROVIDING SPECIAL EDUCATION
    11         PROGRAMS AND SERVICES TO STUDENTS WITH DISABILITIES IF
    12         THE INCREASE IN EXPENDITURES ON SPECIAL EDUCATION
    13         PROGRAMS AND SERVICES WAS GREATER THAN 7.5%. THE DOLLAR
    14         AMOUNT OF THIS EXCEPTION SHALL BE EQUAL TO THE PORTION OF
    15         THE INCREASE THAT EXCEEDS 7.5%.
    16             (VI)  COSTS WHICH:
    17                 (A)  WERE INCURRED IN THE IMPLEMENTATION OF A
    18             SCHOOL IMPROVEMENT PLAN REQUIRED UNDER SECTION
    19             1116(B) OF THE ELEMENTARY AND SECONDARY EDUCATION ACT
    20             OF 1965 (PUBLIC LAW 89-10, 20 U.S.C. § 6316(B)); AND
    21                 (B)  WERE NOT OFFSET BY A STATE ALLOCATION.
    22             (VII)  COSTS NECESSARY TO MAINTAIN:
    23                 (A)  PER-STUDENT LOCAL TAX REVENUE, ADJUSTED BY
    24             THE INDEX, IF THE PERCENTAGE GROWTH IN AVERAGE DAILY
    25             MEMBERSHIP BETWEEN THE SCHOOL YEAR DETERMINED UNDER
    26             SUBSECTION (J)(4) AND THE THIRD SCHOOL YEAR PRECEDING
    27             THE SCHOOL YEAR DETERMINED UNDER SUBSECTION (J)(4)
    28             EXCEEDS 7.5%; OR
    29                 (B)  ACTUAL INSTRUCTION EXPENSE PER AVERAGE DAILY
    30             MEMBERSHIP, ADJUSTED BY THE INDEX, IF THE INCREASE IN
    20051H0039B0091                 - 35 -     

     1             ACTUAL INSTRUCTION EXPENSE PER AVERAGE DAILY
     2             MEMBERSHIP BETWEEN THE SCHOOL YEAR DETERMINED UNDER
     3             SUBSECTION (J)(4) AND THE SCHOOL YEAR PRECEDING THE
     4             SCHOOL YEAR DETERMINED UNDER SUBSECTION (J)(4) IS
     5             LESS THAN THE INDEX.
     6             (VIII)  THE MAINTENANCE OF REVENUES DERIVED FROM REAL
     7         PROPERTY TAXES, EARNED INCOME AND NET PROFITS TAXES,
     8         PERSONAL INCOME TAXES, BASIC EDUCATION FUNDING
     9         ALLOCATIONS AND SPECIAL EDUCATION FUNDING ALLOCATIONS,
    10         ADJUSTED BY THE INDEX, FOR A SCHOOL DISTRICT WHERE THE
    11         PERCENTAGE INCREASE IN REVENUES DERIVED FROM REAL
    12         PROPERTY TAXES, EARNED INCOME AND NET PROFITS TAXES,
    13         PERSONAL INCOME TAXES, BASIC EDUCATION FUNDING
    14         ALLOCATIONS AND SPECIAL EDUCATION FUNDING ALLOCATIONS
    15         BETWEEN THE SCHOOL YEAR DETERMINED UNDER SUBSECTION
    16         (J)(4) AND THE SCHOOL YEAR PRECEDING THE SCHOOL YEAR
    17         DETERMINED UNDER SUBSECTION (J)(4) IS LESS THAN THE
    18         INDEX.
    19             (IX)  COSTS INCURRED FOR PROVIDING HEALTH CARE-
    20         RELATED BENEFITS WHICH ARE DIRECTLY ATTRIBUTABLE TO A
    21         COLLECTIVE BARGAINING AGREEMENT IN EFFECT ON JANUARY 1,
    22         2006, BETWEEN THE SCHOOL DISTRICT AND ITS EMPLOYEES'
    23         ORGANIZATION IF THE ANTICIPATED INCREASE IN THE COST OF
    24         HEALTH CARE-RELATED BENEFITS BETWEEN THE CURRENT YEAR AND
    25         THE UPCOMING YEAR IS GREATER THAN THE INDEX. THE DOLLAR
    26         AMOUNT OF THIS EXCEPTION SHALL BE EQUAL TO THE PORTION OF
    27         THE INCREASE WHICH EXCEEDS THE INDEX. THIS SUBPARAGRAPH
    28         SHALL NOT APPLY TO A COLLECTIVE BARGAINING AGREEMENT
    29         RENEWED, EXTENDED OR ENTERED INTO AFTER JANUARY 1, 2006.
    30     (G)  REVENUE DERIVED FROM INCREASE.--ANY REVENUE DERIVED FROM
    20051H0039B0091                 - 36 -     

     1  AN INCREASE IN THE RATE OF ANY TAX ALLOWED PURSUANT TO
     2  SUBSECTION (F)(2)(III) SHALL NOT EXCEED THE ANTICIPATED DOLLAR
     3  AMOUNT OF THE EXPENDITURE.
     4     (H)  LIMITATION ON TAX RATE.--THE INCREASE IN THE RATE OF ANY
     5  TAX ALLOWED PURSUANT TO AN EXCEPTION UNDER SUBSECTION (F)(2)(I),
     6  (II), (IV), (V), (VI), (VII), (VIII) OR (IX) OR (N) SHALL NOT
     7  EXCEED THE RATE INCREASE REQUIRED AS DETERMINED BY A COURT OF
     8  COMMON PLEAS OR THE DEPARTMENT PURSUANT TO SUBSECTION (I) OR
     9  (J).
    10     (I)  COURT ACTION.--
    11         (1)  PRIOR TO THE IMPOSITION OF A TAX INCREASE UNDER
    12     SUBSECTION (F)(2)(I), (II) AND (IV) AND NO LATER THAN 75 DAYS
    13     PRIOR TO THE ELECTION IMMEDIATELY PRECEDING THE BEGINNING OF
    14     THE SCHOOL DISTRICT'S FISCAL YEAR, APPROVAL BY THE COURT OF
    15     COMMON PLEAS IN THE JUDICIAL DISTRICT IN WHICH THE
    16     ADMINISTRATIVE OFFICE OF THE SCHOOL DISTRICT IS LOCATED MUST
    17     BE SOUGHT. THE BOARD OF SCHOOL DIRECTORS SHALL PUBLISH IN A
    18     NEWSPAPER OF GENERAL CIRCULATION AND ON THE DISTRICT'S
    19     PUBLICLY ACCESSIBLE INTERNET SITE, IF ONE IS MAINTAINED,
    20     NOTICE OF ITS INTENT TO FILE A PETITION UNDER THIS SUBSECTION
    21     AT LEAST ONE WEEK PRIOR TO THE FILING OF THE PETITION. THE
    22     BOARD OF SCHOOL DIRECTORS SHALL ALSO PUBLISH IN A NEWSPAPER
    23     OF GENERAL CIRCULATION AND ON THE DISTRICT'S PUBLICLY
    24     ACCESSIBLE INTERNET SITE, IF ONE IS MAINTAINED, NOTICE, AS
    25     SOON AS POSSIBLE FOLLOWING NOTIFICATION FROM THE COURT THAT A
    26     HEARING HAS BEEN SCHEDULED, STATING THE DATE, TIME AND PLACE
    27     OF THE HEARING ON THE PETITION. THE FOLLOWING SHALL APPLY TO
    28     ANY PROCEEDINGS INSTITUTED UNDER THIS SUBSECTION:
    29             (I)  THE SCHOOL DISTRICT MUST PROVE BY CLEAR AND
    30         CONVINCING EVIDENCE THAT IT QUALIFIES FOR EACH EXCEPTION
    20051H0039B0091                 - 37 -     

     1         SOUGHT.
     2             (II)  THE SCHOOL DISTRICT MUST PROVE BY CLEAR AND
     3         CONVINCING EVIDENCE THE ANTICIPATED DOLLAR AMOUNT OF THE
     4         EXPENDITURE FOR EACH EXCEPTION SOUGHT.
     5         (2)  THE COURT SHALL RULE ON THE SCHOOL DISTRICT'S
     6     PETITION AND INFORM THE SCHOOL DISTRICT OF ITS DECISION NO
     7     LATER THAN 55 DAYS PRIOR TO THE DATE OF THE ELECTION
     8     IMMEDIATELY PRECEDING THE BEGINNING OF THE SCHOOL DISTRICT'S
     9     FISCAL YEAR. IF THE COURT APPROVES THE PETITION, THE COURT
    10     SHALL ALSO DETERMINE THE DOLLAR AMOUNT OF THE EXPENDITURE FOR
    11     WHICH AN EXCEPTION IS GRANTED, THE TAX RATE INCREASE REQUIRED
    12     TO FUND THE EXCEPTION AND THE APPROPRIATE DURATION OF THE
    13     INCREASE. IF THE COURT DENIES THE PETITION, THE SCHOOL
    14     DISTRICT MAY SUBMIT A REFERENDUM QUESTION UNDER SUBSECTION
    15     (C)(1). THE QUESTION MUST BE SUBMITTED TO THE ELECTION
    16     OFFICIALS NO LATER THAN 50 DAYS PRIOR TO THE DATE OF THE
    17     ELECTION IMMEDIATELY PRECEDING THE BEGINNING OF THE SCHOOL
    18     DISTRICT'S FISCAL YEAR.
    19     (J)  DEPARTMENT APPROVAL.--
    20         (1)  A SCHOOL DISTRICT THAT SEEKS TO INCREASE THE RATE OF
    21     TAX DUE TO AN EXPENDITURE UNDER SUBSECTION (F)(2)(III), (V),
    22     (VI), (VII), (VIII) OR (IX) OR (N) SHALL OBTAIN THE APPROVAL
    23     OF THE DEPARTMENT BEFORE IMPOSING THE TAX INCREASE. THE
    24     DEPARTMENT SHALL ESTABLISH PROCEDURES FOR ADMINISTERING THE
    25     PROVISIONS OF THIS SUBSECTION, WHICH MAY INCLUDE AN
    26     ADMINISTRATIVE HEARING ON THE SCHOOL DISTRICT'S SUBMISSION.
    27         (2)  A SCHOOL DISTRICT PROCEEDING UNDER THE PROVISIONS OF
    28     THIS SUBSECTION SHALL PUBLISH IN A NEWSPAPER OF GENERAL
    29     CIRCULATION AND ON THE DISTRICT'S PUBLICLY ACCESSIBLE
    30     INTERNET SITE, IF ONE IS MAINTAINED, NOTICE OF ITS INTENT TO
    20051H0039B0091                 - 38 -     

     1     SEEK DEPARTMENT APPROVAL AT LEAST ONE WEEK PRIOR TO
     2     SUBMITTING ITS REQUEST FOR APPROVAL TO THE DEPARTMENT. IF THE
     3     DEPARTMENT SCHEDULES A HEARING ON THE SCHOOL DISTRICT'S
     4     REQUEST, THE SCHOOL DISTRICT SHALL PUBLISH NOTICE OF THE
     5     HEARING IN A NEWSPAPER OF GENERAL CIRCULATION AND ON THE
     6     DISTRICT'S PUBLICLY ACCESSIBLE INTERNET SITE, IF ONE IS
     7     MAINTAINED, IMMEDIATELY UPON RECEIVING THE INFORMATION FROM
     8     THE DEPARTMENT. THE NOTICE SHALL INCLUDE THE DATE, TIME AND
     9     PLACE OF THE HEARING.
    10         (3)  THE DEPARTMENT SHALL APPROVE A SCHOOL DISTRICT'S
    11     REQUEST UNDER THIS SUBSECTION IF A REVIEW OF THE DATA UNDER
    12     PARAGRAPH (4) DEMONSTRATES THAT:
    13             (I)  THE SCHOOL DISTRICT QUALIFIES FOR ONE OR MORE
    14         EXCEPTIONS UNDER SUBSECTION (F)(2)(III), (V), (VI),
    15         (VII), (VIII) OR (IX) OR (N); AND
    16             (II)  THE SUM OF THE DOLLAR AMOUNTS OF THE EXCEPTIONS
    17         FOR WHICH THE SCHOOL DISTRICT QUALIFIES MAKES THE SCHOOL
    18         DISTRICT ELIGIBLE UNDER SUBSECTION (F)(1).
    19         (4)  FOR THE PURPOSE OF DETERMINING THE ELIGIBILITY OF A
    20     SCHOOL DISTRICT FOR AN EXCEPTION UNDER SUBSECTION (F)(2)(V),
    21     (VI), (VII) OR (VIII), THE DEPARTMENT SHALL UTILIZE DATA FROM
    22     THE MOST RECENT SCHOOL YEARS FOR WHICH ANNUAL FINANCIAL
    23     REPORT DATA REQUIRED UNDER SECTION 2553 OF THE PUBLIC SCHOOL
    24     CODE OF 1949 HAS BEEN RECEIVED. THE DEPARTMENT SHALL INFORM
    25     SCHOOL DISTRICTS OF THE SCHOOL YEARS DETERMINED UNDER THIS
    26     SUBSECTION NO LATER THAN 30 DAYS PRIOR TO THE DATE ON WHICH
    27     PUBLIC INSPECTION OF PROPOSED SCHOOL BUDGETS IS REQUIRED
    28     UNDER SECTION 311(C).
    29         (5)  (I)  THE DEPARTMENT SHALL RULE ON THE SCHOOL
    30     DISTRICT'S REQUEST AND SHALL INFORM THE SCHOOL DISTRICT OF
    20051H0039B0091                 - 39 -     

     1     ITS DECISION NO LATER THAN 55 DAYS PRIOR TO THE DATE OF THE
     2     ELECTION IMMEDIATELY PRECEDING THE BEGINNING OF THE SCHOOL
     3     DISTRICT'S FISCAL YEAR.
     4             (II)  IF THE DEPARTMENT APPROVES THE REQUEST, THE
     5         DEPARTMENT SHALL DETERMINE THE DOLLAR AMOUNT OF THE
     6         EXPENDITURE FOR WHICH THE EXCEPTION IS SOUGHT AND THE TAX
     7         RATE INCREASE REQUIRED TO FUND THE EXCEPTION.
     8             (III)  IF THE DEPARTMENT DENIES THE REQUEST, THE
     9         SCHOOL DISTRICT MAY SUBMIT A REFERENDUM QUESTION UNDER
    10         SUBSECTION (C)(1). THE QUESTION MUST BE SUBMITTED TO THE
    11         ELECTION OFFICIALS NO LATER THAN 50 DAYS PRIOR TO THE
    12         DATE OF THE ELECTION IMMEDIATELY PRECEDING THE BEGINNING
    13         OF THE SCHOOL DISTRICT'S FISCAL YEAR.
    14         (6)  WITHIN 30 DAYS OF THE DEADLINE UNDER PARAGRAPH
    15     (5)(I), THE DEPARTMENT SHALL SUBMIT A REPORT TO THE PRESIDENT
    16     PRO TEMPORE OF THE SENATE, THE MINORITY LEADER OF THE SENATE,
    17     THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE MINORITY
    18     LEADER OF THE HOUSE OF REPRESENTATIVES ENUMERATING THE SCHOOL
    19     DISTRICTS WHICH SOUGHT AN EXCEPTION UNDER THIS SUBSECTION.
    20     THE DEPARTMENT SHALL ALSO PUBLISH THE REPORT ON ITS PUBLICLY
    21     ACCESSIBLE INTERNET SITE. THE REPORT SHALL INCLUDE:
    22             (I)  THE NAME OF EACH SCHOOL DISTRICT MAKING A
    23         REQUEST UNDER THIS SUBSECTION.
    24             (II)  THE SPECIFIC EXCEPTIONS REQUESTED BY EACH
    25         SCHOOL DISTRICT AND THE DOLLAR AMOUNT OF THE EXPENDITURE
    26         FOR EACH EXCEPTION.
    27             (III)  THE DEPARTMENT'S RULING ON THE REQUEST FOR THE
    28         EXCEPTION.
    29             (IV)  IF THE EXCEPTION WAS APPROVED, THE DOLLAR
    30         AMOUNT OF THE EXPENDITURE FOR WHICH THE EXCEPTION WAS
    20051H0039B0091                 - 40 -     

     1         SOUGHT AND THE TAX RATE INCREASE REQUIRED TO FUND THE
     2         EXCEPTION.
     3             (V)  A STATISTICAL SUMMARY OF THE INFORMATION IN
     4         SUBPARAGRAPHS (II), (III) AND (IV).
     5     (K)  OBJECTIONS.--ANY PERSON WHO RESIDES WITHIN OR PAYS REAL
     6  PROPERTY TAXES TO THE SCHOOL DISTRICT FILING A PETITION UNDER
     7  SUBSECTION (I) MAY FILE WITH THE COURT WRITTEN OBJECTIONS TO ANY
     8  PETITION FILED UNDER THIS SECTION.
     9     (L)  INDEX CALCULATION.--NO LATER THAN AUGUST 15, 2005, AND
    10  EACH AUGUST 15 THEREAFTER, THE DEPARTMENT SHALL CALCULATE THE
    11  INDEX. THE DEPARTMENT SHALL PUBLISH THE INDEX BY SEPTEMBER 1,
    12  2005, AND EACH SEPTEMBER 1 THEREAFTER IN THE PENNSYLVANIA
    13  BULLETIN.
    14     (M)  ELECTION INTERFERENCE PROHIBITED.--
    15         (1)  NO PUBLIC FUNDS MAY BE USED TO URGE ANY ELECTOR TO
    16     VOTE FOR OR AGAINST A REFERENDUM OR BE APPROPRIATED FOR
    17     POLITICAL OR CAMPAIGN PURPOSES.
    18         (2)  THIS SUBSECTION SHALL NOT BE CONSTRUED TO PROHIBIT
    19     THE USE OF PUBLIC FUNDS FOR DISSEMINATION OF FACTUAL
    20     INFORMATION RELATIVE TO A REFERENDUM APPEARING ON AN ELECTION
    21     BALLOT.
    22         (3)  AS USED IN THIS SUBSECTION, THE TERM "PUBLIC FUNDS"
    23     MEANS ANY FUNDS APPROPRIATED BY THE GENERAL ASSEMBLY OR BY A
    24     POLITICAL SUBDIVISION.
    25     (N)  TREATMENT OF CERTAIN REQUIRED PAYMENTS.--THE PROVISIONS
    26  OF SUBSECTIONS (F) AND (J) SHALL APPLY TO A SCHOOL DISTRICT'S
    27  SHARE OF PAYMENTS TO THE PUBLIC SCHOOL EMPLOYEES' RETIREMENT
    28  SYSTEM AS REQUIRED UNDER 24 PA.C.S. § 8327 (RELATING TO PAYMENTS
    29  BY EMPLOYERS) IF THE INCREASE IN THE ACTUAL DOLLAR AMOUNT OF
    30  ESTIMATED PAYMENTS BETWEEN THE CURRENT YEAR AND THE UPCOMING
    20051H0039B0091                 - 41 -     

     1  YEAR IS GREATER THAN THE INDEX. THE DOLLAR AMOUNT TO WHICH
     2  SUBSECTION (F) APPLIES SHALL EQUAL THAT PORTION OF THE INCREASE
     3  WHICH EXCEEDS THE PRODUCT OF THE INDEX AND THE ACTUAL DOLLAR
     4  VALUE OF PAYMENTS FOR THE CURRENT YEAR.
     5  SECTION 334.  DISPOSITION OF INCOME TAX REVENUE AND PROPERTY TAX
     6                 REDUCTION ALLOCATIONS.
     7     (A)  EARNED INCOME AND NET PROFITS TAX REVENUE.--ALL EARNED
     8  INCOME AND NET PROFITS TAX REVENUE RECEIVED BY THE SCHOOL
     9  DISTRICT PURSUANT TO THIS CHAPTER SHALL BE USED AS FOLLOWS:
    10         (1)  (RESERVED).
    11         (2)  (RESERVED).
    12         (3)  EXCEPT AS SET FORTH IN SECTION 335(A) OR SECTION
    13     321(B)(4), IN THE FISCAL YEAR THAT A TAX UNDER SECTION
    14     321(B)(1), (1.1) OR (2) IS IMPLEMENTED OR INCREASED, ALL
    15     REVENUE RECEIVED BY A SCHOOL DISTRICT THAT IS DIRECTLY
    16     ATTRIBUTABLE TO THAT TAX SHALL BE USED TO FUND EXCLUSIONS FOR
    17     HOMESTEAD AND FARMSTEAD PROPERTY.
    18         (4)  EXCEPT AS SET FORTH IN SECTION 335(A), IN THE SECOND
    19     FISCAL YEAR AND EACH FISCAL YEAR THEREAFTER, AN AMOUNT
    20     EQUIVALENT TO THE REVENUE DIRECTLY ATTRIBUTABLE TO THE
    21     IMPOSITION OF THE TAX IN THE FIRST FULL FISCAL YEAR IN WHICH
    22     THE TAX IS LEVIED AND COLLECTED SHALL BE USED TO FUND
    23     EXCLUSIONS FOR HOMESTEAD AND FARMSTEAD PROPERTY. ALL
    24     REMAINING REVENUE MAY BE USED FOR THE OPERATIONS OF THE
    25     SCHOOL DISTRICT.
    26     (B)  PERSONAL INCOME TAX REVENUE.--ALL PERSONAL INCOME TAX
    27  REVENUE RECEIVED BY THE SCHOOL DISTRICT PURSUANT TO THIS CHAPTER
    28  SHALL BE USED AS FOLLOWS:
    29         (1)  EXCEPT AS SET FORTH IN SECTION 321(C)(6) OR 335(A),
    30     IN THE FISCAL YEAR THAT THE TAX UNDER SECTION 321(C) IS
    20051H0039B0091                 - 42 -     

     1     IMPLEMENTED OR INCREASED, ALL REVENUE RECEIVED BY THE SCHOOL
     2     DISTRICT PURSUANT TO SECTION 321(C)(2)(III) SHALL BE USED TO
     3     FUND EXCLUSIONS FOR HOMESTEAD AND FARMSTEAD PROPERTY.
     4         (2)  EXCEPT AS SET FORTH IN SECTION 335(A), IN THE SECOND
     5     FISCAL YEAR AND EACH FISCAL YEAR THEREAFTER, AN AMOUNT
     6     EQUIVALENT TO THE REVENUE DIRECTLY ATTRIBUTABLE TO THE
     7     IMPOSITION OF THE TAX IN THE FIRST FULL FISCAL YEAR IN WHICH
     8     THE TAX IS LEVIED AND COLLECTED SHALL BE USED TO FUND
     9     EXCLUSIONS FOR HOMESTEAD AND FARMSTEAD PROPERTY. ALL
    10     REMAINING REVENUE MAY BE USED FOR THE OPERATIONS OF THE
    11     SCHOOL DISTRICT.
    12     (C)  PROPERTY TAX REDUCTION ALLOCATIONS.--
    13         (1)  A SCHOOL DISTRICT THAT RECEIVES A PROPERTY TAX
    14     REDUCTION ALLOCATION UNDER SECTION 505 SHALL USE THE PROPERTY
    15     TAX REDUCTION ALLOCATION TO FUND EXCLUSIONS FOR HOMESTEAD AND
    16     FARMSTEAD PROPERTY OR, WHERE SECTION 335(A)(2) APPLIES, TO
    17     REDUCE THE PROPERTY TAX RATE ON ALL PROPERTIES SUBJECT TO THE
    18     PROPERTY TAX IN THE SCHOOL DISTRICT.
    19         (2)  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), A
    20     SCHOOL DISTRICT COTERMINOUS WITH A CITY OF THE SECOND CLASS A
    21     MAY USE UP TO 50% OF THE PROPERTY TAX REDUCTION ALLOCATION
    22     RECEIVED UNDER SECTION 505 TO REDUCE THE RATE OF THE EARNED
    23     INCOME AND NET PROFITS TAX LEVIED BY THE SCHOOL DISTRICT
    24     PURSUANT TO ANY OTHER ACT. IF A BOARD OF SCHOOL DIRECTORS
    25     ELECTS TO REDUCE THE RATE OF EARNED INCOME AND NET PROFITS
    26     TAX PURSUANT TO THIS PARAGRAPH, IT SHALL ADOPT A RESOLUTION
    27     REDUCING THE RATE OF EARNED INCOME AND NET PROFITS TAX NO
    28     LATER THAN THE LAST DAY OF THE FISCAL YEAR IMMEDIATELY
    29     PRECEDING THE FISCAL YEAR IN WHICH THE NEW EARNED INCOME AND
    30     NET PROFITS TAX RATE SHALL TAKE EFFECT. THE BOARD SHALL GIVE
    20051H0039B0091                 - 43 -     

     1     PUBLIC NOTICE OF ITS INTENT TO ADOPT THE RESOLUTION IN THE
     2     MANNER PROVIDED BY SECTION 4 OF THE LOCAL TAX ENABLING ACT
     3     AND SHALL CONDUCT AT LEAST ONE PUBLIC HEARING ON THE
     4     RESOLUTION. ANY PORTION OF THE PROPERTY TAX REDUCTION
     5     ALLOCATION NOT USED TO REDUCE THE RATE OF THE EARNED INCOME
     6     AND NET PROFITS TAX SHALL BE USED AS PRESCRIBED IN PARAGRAPH
     7     (1).
     8  SECTION 335.  SCHOOL DISTRICT OPTIONS.
     9     (A)  RECEIPT OF PROPERTY TAX REDUCTION ALLOCATION.--IN ANY
    10  FISCAL YEAR IN WHICH A SCHOOL DISTRICT RECEIVES A PROPERTY TAX
    11  REDUCTION ALLOCATION UNDER SECTION 505 AND THE SUM OF THE
    12  PROPERTY TAX REDUCTION ALLOCATION AND REVENUE FROM THE EARNED
    13  INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX RECEIVED BY
    14  THE SCHOOL DISTRICT UNDER THIS CHAPTER EXCEEDS THE AMOUNT
    15  REQUIRED TO FUND THE MAXIMUM HOMESTEAD AND FARMSTEAD EXCLUSIONS
    16  AUTHORIZED UNDER 53 PA.C.S. § 8586 (RELATING TO LIMITATIONS),
    17  THE SCHOOL DISTRICT MAY:
    18         (1)  REDUCE THE RATE OF THE EARNED INCOME AND NET PROFITS
    19     TAX OR PERSONAL INCOME TAX SUCH THAT THE SUM OF THE PROPERTY
    20     TAX REDUCTION ALLOCATION AND THE EARNED INCOME AND NET
    21     PROFITS TAX OR PERSONAL INCOME TAX REVENUE IS EQUAL TO THE
    22     AMOUNT REQUIRED TO FUND THE MAXIMUM HOMESTEAD AND FARMSTEAD
    23     EXCLUSIONS AUTHORIZED UNDER 53 PA.C.S. § 8586; OR
    24         (2)  MAINTAIN THE RATE OF THE EARNED INCOME AND NET
    25     PROFITS TAX OR PERSONAL INCOME TAX AND UTILIZE ANY REVENUE IN
    26     EXCESS OF THE REVENUE REQUIRED TO FUND THE MAXIMUM HOMESTEAD
    27     AND FARMSTEAD EXCLUSIONS AUTHORIZED UNDER 53 PA.C.S. § 8586
    28     TO REDUCE THE PROPERTY TAX RATE ON ALL PROPERTIES SUBJECT TO
    29     THE PROPERTY TAX IN THE SCHOOL DISTRICT.
    30     (B)  REDUCTION OF EARNED INCOME AND NET PROFITS TAX.--IN ANY
    20051H0039B0091                 - 44 -     

     1  YEAR SUBSEQUENT TO A YEAR IN WHICH THE RATE OF THE EARNED INCOME
     2  AND NET PROFITS TAX OR PERSONAL INCOME TAX WAS REDUCED PURSUANT
     3  TO SUBSECTION (A)(1) AND THE SUM OF THE PROPERTY TAX REDUCTION
     4  ALLOCATION UNDER SECTION 505 AND REVENUE FROM THE EARNED INCOME
     5  AND NET PROFITS TAX OR PERSONAL INCOME TAX RECEIVED BY THE
     6  SCHOOL DISTRICT UNDER THIS CHAPTER IS LESS THAN THE AMOUNT
     7  NECESSARY TO MAINTAIN THE MAXIMUM HOMESTEAD AND FARMSTEAD
     8  EXCLUSIONS AUTHORIZED UNDER 53 PA.C.S. § 8586, THE SCHOOL
     9  DISTRICT MAY RAISE THE RATE OF THE EARNED INCOME AND NET PROFITS
    10  TAX OR PERSONAL INCOME TAX UP TO THE AMOUNT PREVIOUSLY REDUCED
    11  UNDER SUBSECTION (A)(1), WITHOUT COMPLYING WITH THE REFERENDUM
    12  PROVISIONS OF SECTION 332.
    13                            SUBCHAPTER E
    14                        HOMESTEAD EXCLUSION
    15  SECTION 341.  HOMESTEAD AND FARMSTEAD APPLICATIONS.
    16     (A)  (RESERVED).
    17     (B)  ANNUAL NOTIFICATION.--NO LATER THAN 60 DAYS PRIOR TO THE
    18  APPLICATION DEADLINE IN SUBSECTION (C), A BOARD OF SCHOOL
    19  DIRECTORS SHALL NOTIFY BY FIRST CLASS MAIL THE OWNER OF EACH
    20  PARCEL OF RESIDENTIAL PROPERTY WITHIN THE DISTRICT OF THE
    21  EXISTENCE OF THE SCHOOL DISTRICT'S HOMESTEAD AND FARMSTEAD
    22  EXCLUSION PROGRAM, THE NEED TO FILE AN APPLICATION IN ACCORDANCE
    23  WITH 53 PA.C.S. § 8584(A) IN ORDER TO QUALIFY FOR THE PROGRAM
    24  AND THE APPLICATION DEADLINE. FOR THE CALENDAR YEAR 2006 ONLY, A
    25  BOARD OF SCHOOL DIRECTORS THAT FAILED TO NOTIFY THE OWNERS OF
    26  RESIDENTIAL PROPERTY WITHIN THE DISTRICT OF THE EXISTENCE OF THE
    27  SCHOOL DISTRICT'S HOMESTEAD AND FARMSTEAD EXCLUSION PROGRAM BY
    28  JANUARY 1, 2006, SHALL CONDUCT THE NOTIFICATION REQUIRED UNDER
    29  THIS SUBSECTION NO LATER THAN 30 DAYS AFTER THE EFFECTIVE DATE
    30  OF THIS SECTION. A SCHOOL DISTRICT MAY LIMIT THE ANNUAL
    20051H0039B0091                 - 45 -     

     1  NOTIFICATION TO OWNERS OF RESIDENTIAL PROPERTY:
     2         (1)  WHO ARE NOT CURRENTLY APPROVED; OR
     3         (2)  WHOSE APPROVAL IS DUE TO EXPIRE.
     4     (C)  APPLICATION DEADLINE.--IN ACCORDANCE WITH 53 PA.C.S. §
     5  8584(B), THE DEADLINE FOR FILING AN APPLICATION WITH THE
     6  ASSESSOR SHALL BE MARCH 1. FOR THE CALENDAR YEAR 2006 ONLY, THE
     7  DEADLINE FOR FILING AN APPLICATION WITH THE ASSESSOR SHALL BE
     8  MAY 1.
     9     (D)  ACTION ON APPLICATION.--REAL PROPERTY FOR WHICH AN
    10  APPLICATION HAS BEEN FILED BY THE APPLICATION DEADLINE SHALL BE
    11  DEEMED TO BE A HOMESTEAD OR FARMSTEAD PROPERTY WHICH IS ELIGIBLE
    12  FOR A HOMESTEAD OR FARMSTEAD EXCLUSION UNLESS THE ASSESSOR
    13  DENIES THE APPLICATION. DENIALS OF APPLICATION BY THE ASSESSOR
    14  AND THE RIGHT TO APPEAL THAT DECISION SHALL BE IN ACCORDANCE
    15  WITH 53 PA.C.S. § 8584(D) AND (E).
    16     (E)  APPLICATION REVIEW AND SUBMISSION.--EXCEPT AS SET FORTH
    17  IN 53 PA.C.S. § 8584(J), AN ASSESSOR SHALL NOT REQUIRE THE OWNER
    18  OF A PREVIOUSLY APPROVED PROPERTY TO RESUBMIT AN APPLICATION
    19  MORE THAN ONE TIME EVERY THREE YEARS.
    20     (F)  APPLICABILITY.--THE PROVISIONS OF 53 PA.C.S. § 8584(F),
    21  (G), (H) AND (J) SHALL APPLY TO ANY APPLICATION FILED UNDER THIS
    22  SECTION.
    23     (G)  DUTIES OF ASSESSORS.--
    24         (1)  THE ASSESSOR SHALL MAIL TO THE OWNER OF PROPERTY FOR
    25     WHICH AN APPLICATION HAS BEEN SUBMITTED AND APPROVED OR
    26     DENIED UNDER THIS SECTION NOTICE OF SUCH FACT NO LATER THAN
    27     30 DAYS AFTER RECEIPT OF THE APPLICATION.
    28         (2)  (I)  THE ASSESSOR SHALL NOTIFY THE OWNER OF ANY
    29         HOMESTEAD OR FARMSTEAD PROPERTY DESIGNATED AS SUCH UNDER
    30         ANY OTHER STATUTE OF THE NEED, IF ANY, TO RESUBMIT AN
    20051H0039B0091                 - 46 -     

     1         APPLICATION TO MAINTAIN THE PROPERTY'S ELIGIBILITY AS A
     2         HOMESTEAD OR FARMSTEAD PROPERTY.
     3             (II)  NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO
     4         PROHIBIT A COUNTY ASSESSOR FROM DESIGNATING PROPERTY
     5         PREVIOUSLY DETERMINED TO BE HOMESTEAD PROPERTY UNDER ANY
     6         OTHER STATUTE AS HOMESTEAD OR FARMSTEAD PROPERTY FOR
     7         PURPOSES OF THIS SECTION.
     8         (3)  THE ASSESSOR SHALL PROVIDE EACH SCHOOL DISTRICT WITH
     9     A CERTIFIED REPORT, AS PROVIDED IN 53 PA.C.S. § 8584(I), NO
    10     LATER THAN MAY 1.
    11     (H)  UNIFORM APPLICATION AND INSTRUCTIONS.--THE APPLICATION
    12  TO DESIGNATE PROPERTY AS HOMESTEAD OR FARMSTEAD PROPERTY SHALL
    13  BE UNIFORM AND SHALL INCLUDE INSTRUCTIONS FOR COMPLETING THE
    14  APPLICATION. THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    15  DEVELOPMENT SHALL DEVELOP A UNIFORM APPLICATION AND INSTRUCTIONS
    16  TO BE USED BY COUNTY ASSESSORS AND SHALL PUBLISH THE UNIFORM
    17  APPLICATION AND INSTRUCTIONS NO LATER THAN 15 DAYS AFTER THE
    18  EFFECTIVE DATE OF THIS SECTION. NOTHING IN THIS SUBSECTION SHALL
    19  BE CONSTRUED TO REQUIRE THE DEPARTMENT TO DEVELOP AND PUBLISH
    20  THE UNIFORM ALLOCATION AND INSTRUCTIONS IF THE DEPARTMENT DID SO
    21  DURING CALENDAR YEAR 2004.
    22     (I)  PROHIBITIONS.--A COUNTY SHALL NOT REQUIRE AN APPLICATION
    23  FEE FOR THE FILING OR REVIEW OF AN APPLICATION SUBMITTED UNDER
    24  THIS SECTION OR UNDER 53 PA.C.S. § 8584(A).
    25     (J)  APPLICATIONS PREVIOUSLY FILED.--AN APPLICATION FILED
    26  BETWEEN SEPTEMBER 3, 2004, AND THE EFFECTIVE DATE OF THIS
    27  SECTION SHALL BE USED TO QUALIFY AN APPLICANT FOR THE PROGRAM.
    28  SECTION 342.  HOMESTEAD AND FARMSTEAD EXCLUSION PROCESS.
    29     EACH FISCAL YEAR IN WHICH A SCHOOL DISTRICT IMPOSES A TAX
    30  AUTHORIZED UNDER SECTION 321 OR RECEIVES A PROPERTY TAX
    20051H0039B0091                 - 47 -     

     1  REDUCTION ALLOCATION PURSUANT TO CHAPTER 5, THE DISTRICT SHALL
     2  CALCULATE A HOMESTEAD AND FARMSTEAD EXCLUSION FOR THE PURPOSE OF
     3  REDUCING SCHOOL DISTRICT PROPERTY TAXES. THE SCHOOL DISTRICT
     4  SHALL ADOPT A RESOLUTION IMPLEMENTING THE HOMESTEAD AND
     5  FARMSTEAD EXCLUSION NO LATER THAN THE LAST DAY OF THE FISCAL
     6  YEAR IMMEDIATELY PRECEDING THE FISCAL YEAR IN WHICH THE
     7  HOMESTEAD AND FARMSTEAD EXCLUSIONS SHALL TAKE EFFECT.
     8  SECTION 343.  SCHOOL DISTRICT TAX NOTICES.
     9     (A)  TAX NOTICE.--A SCHOOL DISTRICT THAT IMPLEMENTS HOMESTEAD
    10  AND FARMSTEAD EXCLUSIONS SHALL ITEMIZE THE HOMESTEAD AND
    11  FARMSTEAD EXCLUSION ON TAX BILLS SENT TO HOMESTEAD AND FARMSTEAD
    12  OWNERS, INDICATING THE ORIGINAL AMOUNT OF TAX LIABILITY, THE
    13  AMOUNT OF THE EXCLUSION AND THE NET AMOUNT OF TAX DUE AFTER THE
    14  EXCLUSION IS APPLIED. THE TAX BILL SHALL BE EASILY
    15  UNDERSTANDABLE AND INCLUDE A NOTICE PURSUANT TO SUBSECTION (B).
    16     (B)  NOTICE OF PROPERTY TAX RELIEF.--A SCHOOL DISTRICT THAT
    17  IMPLEMENTS HOMESTEAD AND FARMSTEAD EXCLUSIONS SHALL INCLUDE WITH
    18  THE HOMESTEAD OR FARMSTEAD OWNER'S TAX BILL A NOTICE THAT THE
    19  TAX BILL INCLUDES A HOMESTEAD OR FARMSTEAD EXCLUSION. THE NOTICE
    20  SHALL AT A MINIMUM TAKE THE FOLLOWING FORM:
    21                   NOTICE OF PROPERTY TAX RELIEF
    22     YOUR ENCLOSED TAX BILL INCLUDES A TAX REDUCTION FOR YOUR
    23     HOMESTEAD AND/OR FARMSTEAD PROPERTY. AS AN ELIGIBLE HOMESTEAD
    24     AND/OR FARMSTEAD PROPERTY OWNER, YOU HAVE RECEIVED TAX RELIEF
    25     THROUGH A HOMESTEAD AND/OR FARMSTEAD EXCLUSION WHICH HAS BEEN
    26     PROVIDED UNDER THE PENNSYLVANIA TAXPAYER RELIEF ACT, A LAW
    27     PASSED BY THE PENNSYLVANIA GENERAL ASSEMBLY DESIGNED TO
    28     REDUCE YOUR PROPERTY TAXES.
    29                            SUBCHAPTER F
    30                              REGISTER
    20051H0039B0091                 - 48 -     

     1  SECTION 351.  TAX REGISTER AND LOCAL TAX WITHHOLDING REGISTER.
     2     (A)  GENERAL RULE.--THE DEPARTMENT OF COMMUNITY AND ECONOMIC
     3  DEVELOPMENT SHALL MAINTAIN A TAX REGISTER AND LOCAL WITHHOLDING
     4  TAX REGISTER.
     5     (B)  TAX REGISTER.--THE DEPARTMENT OF COMMUNITY AND ECONOMIC
     6  DEVELOPMENT SHALL MAINTAIN A TAX REGISTER, AN OFFICIAL
     7  CONTINUING REGISTER OF ALL COUNTY, MUNICIPAL AND SCHOOL TAX
     8  RATES WITHIN THIS COMMONWEALTH ON ITS PUBLICLY ACCESSIBLE
     9  INTERNET WEBSITE. INFORMATION FOR THE TAX REGISTER SHALL BE
    10  FURNISHED BY EACH COUNTY, MUNICIPALITY AND SCHOOL DISTRICT TO
    11  THE DEPARTMENT AS PRESCRIBED BY THE DEPARTMENT OF COMMUNITY AND
    12  ECONOMIC DEVELOPMENT. THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    13  DEVELOPMENT SHALL CONTINUOUSLY UPDATE THE TAX REGISTER AS NEW
    14  AND UPDATED INFORMATION IS PROVIDED.
    15     (C)  LOCAL WITHHOLDING TAX REGISTER.--AS PART OF THE TAX
    16  REGISTER, THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
    17  SHALL MAINTAIN A LOCAL WITHHOLDING TAX REGISTER, AN OFFICIAL
    18  CONTINUING REGISTER OF ALL WITHHOLDING TAXES.
    19     (D)  CONTENTS OF LOCAL WITHHOLDING TAX REGISTER.--THE LOCAL
    20  WITHHOLDING TAX REGISTER SHALL BE ORGANIZED BY MUNICIPALITY AND
    21  SHALL LIST ALL OF THE FOLLOWING:
    22         (1)  EACH MUNICIPALITY AND COTERMINOUS SCHOOL DISTRICT.
    23         (2)  THE EFFECTIVE MUNICIPAL INCOME TAX RATE ON RESIDENT
    24     TAXPAYERS.
    25         (3)  THE EFFECTIVE SCHOOL DISTRICT INCOME TAX RATE ON
    26     RESIDENT TAXPAYERS.
    27         (4)  THE COMBINED MUNICIPAL AND SCHOOL DISTRICT INCOME
    28     TAX RATE ON TAXPAYERS RESIDING IN EACH MUNICIPALITY.
    29         (5)  THE EFFECTIVE INCOME TAX RATE ON RESIDENT AND
    30     NONRESIDENT TAXPAYERS WORKING WITHIN A MUNICIPALITY.
    20051H0039B0091                 - 49 -     

     1         (6)  WHETHER AN INCOME TAX IS A PERSONAL INCOME TAX
     2     LEVIED UNDER THIS CHAPTER.
     3         (7)  THE EFFECTIVE EMERGENCY AND MUNICIPAL SERVICES TAX
     4     RATE.
     5         (8)  THE EFFECTIVE SCHOOL DISTRICT EMERGENCY AND
     6     MUNICIPAL SERVICES TAX RATE.
     7         (9)  THE COMBINED MUNICIPAL AND SCHOOL DISTRICT EMERGENCY
     8     AND MUNICIPAL SERVICES TAX RATE.
     9         (10)  THE AMOUNT OF ANY OTHER WITHHOLDING TAX.
    10         (11)  THE NAME, TELEPHONE NUMBER, ADDRESS, E-MAIL
    11     ADDRESS, WHERE AVAILABLE, AND INTERNET WEBSITE, WHERE
    12     AVAILABLE, OF THE TAX OFFICER RESPONSIBLE FOR ADMINISTERING
    13     THE COLLECTION OF THE TAX AND FROM WHOM INFORMATION, FORMS
    14     AND COPIES OF REGULATIONS ARE AVAILABLE.
    15         (12)  ANY OTHER INFORMATION DEEMED TO BE NECESSARY BY THE
    16     DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT.
    17     (E)  OFFICIAL RELEASE AND EFFECTIVE PERIOD OF TAX RATES ON
    18  LOCAL WITHHOLDING TAX REGISTER.--ON JUNE 15 AND DECEMBER 15 OF
    19  EACH YEAR, THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
    20  SHALL UPDATE AND OFFICIALLY RELEASE WITHHOLDING TAX RATES ON THE
    21  LOCAL TAX WITHHOLDING REGISTER. WITHHOLDING FOR TAX RATES
    22  RELEASED ON JUNE 15 SHALL BECOME EFFECTIVE ON JULY 1.
    23  WITHHOLDING FOR TAX RATES RELEASED ON DECEMBER 15 SHALL BECOME
    24  EFFECTIVE ON JANUARY 1 OF THE FOLLOWING YEAR. THE DEPARTMENT OF
    25  COMMUNITY AND ECONOMIC DEVELOPMENT MAY REVISE THE NOTIFICATION,
    26  OFFICIAL RELEASE AND EFFECTIVE DATES OF THE LOCAL WITHHOLDING
    27  TAX REGISTER FOR GOOD CAUSE AND WITH ADEQUATE NOTICE. THE
    28  DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL RELEASE A
    29  SUPPLEMENT TO THE LOCAL WITHHOLDING TAX REGISTER ON AUGUST 15,
    30  2006, SETTING FORTH THE INFORMATION FURNISHED BY SCHOOL
    20051H0039B0091                 - 50 -     

     1  DISTRICTS THAT ELECT TO LEVY A TAX UNDER SECTION 331.1. THE TAX
     2  RATES RELEASED ON AUGUST 15, 2006, SHALL BE RETROACTIVE TO JULY
     3  1, 2006.
     4     (F)  INFORMATION FOR THE LOCAL WITHHOLDING TAX REGISTER.--
     5  INFORMATION FOR THE LOCAL WITHHOLDING TAX REGISTER SHALL BE
     6  FURNISHED BY EACH MUNICIPALITY AND SCHOOL DISTRICT TO THE
     7  DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT AS PRESCRIBED
     8  BY THE DEPARTMENT. THE INFORMATION SHALL INCLUDE A COPY OF THE
     9  ORDINANCE OR RESOLUTION ENACTING, REPEALING OR CHANGING THE TAX.
    10  THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL BE
    11  NOTIFIED AND RECEIVE INFORMATION REGARDING CHANGES TO THE LOCAL
    12  WITHHOLDING TAX REGISTER AS FOLLOWS:
    13         (1)  NEW TAX ENACTMENTS, REPEALS AND CHANGES SHALL BE
    14     RECEIVED BY THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    15     DEVELOPMENT NO LATER THAN JUNE 1 TO REQUIRE WITHHOLDING OF A
    16     NEW TAX, WITHHOLDING AT A NEW RATE, OR TO SUSPEND WITHHOLDING
    17     OF SUCH TAX EFFECTIVE JULY 1 OF THAT YEAR. ALL NEW TAX
    18     ENACTMENTS, REPEALS AND CHANGES RECEIVED BY THE DEPARTMENT OF
    19     COMMUNITY AND ECONOMIC DEVELOPMENT BY JUNE 1 SHALL BE
    20     OFFICIALLY RELEASED ON JUNE 15 AND BECOME EFFECTIVE ON JULY
    21     1. FAILURE OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    22     DEVELOPMENT TO RECEIVE INFORMATION BY JUNE 1 FROM
    23     MUNICIPALITIES AND SCHOOL DISTRICTS REGARDING CURRENT TAX
    24     RATES, NEW TAX ENACTMENTS, REPEALS AND CHANGES SHALL BE
    25     CONSTRUED TO MEAN THAT THE INFORMATION CONTAINED IN THE
    26     PREVIOUS RELEASE OF THE LOCAL TAX WITHHOLDING REGISTER IS
    27     STILL IN FORCE. INFORMATION RECEIVED BY THE DEPARTMENT OF
    28     COMMUNITY AND ECONOMIC DEVELOPMENT AFTER JUNE 1, BUT BEFORE
    29     DECEMBER 1, SHALL BE OFFICIALLY RELEASED ON DECEMBER 15. A
    30     SCHOOL DISTRICT THAT ELECTS TO LEVY A TAX UNDER SECTION 331.1
    20051H0039B0091                 - 51 -     

     1     SHALL FURNISH INFORMATION FOR THE LOCAL TAX WITHHOLDING
     2     REGISTER NO LATER THAN JULY 15, 2006.
     3         (2)  NEW TAX ENACTMENTS, REPEALS AND CHANGES SHALL BE
     4     RECEIVED BY THE DEPARTMENT OF COMMUNITY AND ECONOMIC
     5     DEVELOPMENT NO LATER THAN DECEMBER 1 TO REQUIRE WITHHOLDING
     6     OF A NEW TAX, WITHHOLDING AT A NEW RATE, OR TO SUSPEND
     7     WITHHOLDING OF SUCH TAX EFFECTIVE JANUARY 1 OF THE FOLLOWING
     8     YEAR. ALL NEW TAX ENACTMENTS, REPEALS AND CHANGES RECEIVED BY
     9     THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT BY
    10     DECEMBER 1 SHALL BE OFFICIALLY RELEASED ON DECEMBER 15 AND
    11     BECOME EFFECTIVE ON JANUARY 1 OF THE FOLLOWING YEAR. FAILURE
    12     OF THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT TO
    13     RECEIVE INFORMATION BY DECEMBER 1 FROM MUNICIPALITIES AND
    14     SCHOOL DISTRICTS REGARDING CURRENT TAX RATES, NEW TAX
    15     ENACTMENTS, REPEALS AND CHANGES SHALL BE CONSTRUED TO MEAN
    16     THAT THE INFORMATION CONTAINED IN THE PREVIOUS RELEASE OF THE
    17     LOCAL TAX WITHHOLDING REGISTER IS STILL IN FORCE. INFORMATION
    18     RECEIVED BY THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    19     DEVELOPMENT AFTER DECEMBER 1, BUT BEFORE JUNE 1, SHALL BE
    20     OFFICIALLY RELEASED ON JUNE 15.
    21     (G)  WITHHOLDING AND EFFECT OF LOCAL WITHHOLDING TAX
    22  REGISTER.--EMPLOYERS SHALL NOT BE REQUIRED TO WITHHOLD FROM THE
    23  COMPENSATION OF THEIR EMPLOYEES OR MAKE REPORTS OF COMPENSATION
    24  IN CONNECTION WITH ANY WITHHOLDING TAX THAT IS NOT OFFICIALLY
    25  RELEASED ON THE LOCAL WITHHOLDING TAX REGISTER AS OF JUNE 15 AND
    26  DECEMBER 15 OF EACH YEAR OR AS OF AUGUST 15, 2006, AS PROVIDED
    27  IN SUBSECTIONS (E) AND (F). NOTWITHSTANDING ANY LAW TO THE
    28  CONTRARY, NO SCHOOL DISTRICT, MUNICIPALITY OR TAX OFFICER MAY
    29  REQUIRE ANY EMPLOYER TO WITHHOLD A WITHHOLDING TAX AT A RATE OR
    30  AMOUNT WHICH IS NOT OFFICIALLY RELEASED ON THE LOCAL WITHHOLDING
    20051H0039B0091                 - 52 -     

     1  TAX REGISTER. THE PROVISIONS OF THIS SECTION SHALL NOT AFFECT
     2  THE LIABILITY OF ANY TAXPAYER FOR TAXES LAWFULLY IMPOSED UNDER
     3  THIS ACT.
     4     (H)  WITHHOLDING AND EFFECT TO TAX REGISTER.--AN EMPLOYER MAY
     5  WITHHOLD AT THE MOST RECENTLY AVAILABLE RATE ON THE TAX REGISTER
     6  EVEN IF THE RATE IS DIFFERENT THAN THE TAX RATE OFFICIALLY
     7  RELEASED ON THE LOCAL WITHHOLDING TAX REGISTER AS PROVIDED IN
     8  SUBSECTIONS (D) AND (E). AN EMPLOYER SHALL NOT BE REQUIRED TO
     9  WITHHOLD A TAX RATE THAT IS NOT OFFICIALLY RELEASED ON THE LOCAL
    10  WITHHOLDING TAX REGISTER.
    11                             CHAPTER 5
    12                        STATE FUNDS FORMULA
    13  SECTION 501.  SCOPE.
    14     THIS CHAPTER RELATES TO THE STATE FUNDS FORMULA FOR TAX
    15  RELIEF.
    16  SECTION 502.  DEFINITIONS.
    17     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    18  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    19  CONTEXT CLEARLY INDICATES OTHERWISE:
    20     "ALLOCATION MAXIMUM."  A NUMERICAL VALUE OF 0.4 PLUS THE
    21  MODIFIER CALCULATED UNDER SECTION 503(C)(2). THE VALUE,
    22  INCLUDING THE MAXIMUM MODIFIER, SHALL NOT EXCEED 0.6.
    23     "ALLOCATION MINIMUM."  A NUMERICAL VALUE OF 0.1 PLUS THE
    24  MODIFIER CALCULATED UNDER SECTION 503(C)(1). THE VALUE,
    25  INCLUDING THE MINIMUM MODIFIER, SHALL NOT EXCEED 0.15.
    26     "DEPARTMENT."  THE DEPARTMENT OF EDUCATION OF THE
    27  COMMONWEALTH.
    28     "ESTIMATED LOCAL REVENUE CALCULATION."  THE COMPENSATION AND
    29  NET PROFITS COMPONENT OF THE 2002 PERSONAL INCOME VALUATION
    30  CERTIFIED BY THE SECRETARY OF REVENUE UNDER SECTION 2501(9.1) OF
    20051H0039B0091                 - 53 -     

     1  THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC
     2  SCHOOL CODE OF 1949, MULTIPLIED BY 0.1%.
     3     "FUND."  THE PROPERTY TAX RELIEF FUND ESTABLISHED UNDER 4
     4  PA.C.S. § 1409 (RELATING TO PROPERTY TAX RELIEF FUND).
     5     "INCOME TAX."  A TAX ON EARNED INCOME AND NET PROFITS OR A
     6  TAX ON PERSONAL INCOME PURSUANT TO CHAPTER 3.
     7     "PROPERTY TAX REDUCTION INDEX."  A QUOTIENT EQUAL TO THE SUM
     8  OF THE NUMERICAL RANK OF A SCHOOL DISTRICT'S PERSONAL INCOME
     9  VALUATION PER AVERAGE DAILY MEMBERSHIP, THE NUMERICAL RANK OF
    10  ITS MARKET VALUE/INCOME AID RATIO, THE NUMERICAL RANK OF ITS
    11  EQUALIZED MILLAGE AND THE NUMERICAL RANK OF ITS SCHOOL TAX
    12  RATIO, DIVIDED BY 1,000.
    13     "PROPERTY TAX RELIEF RESERVE FUND."  THE FUND ESTABLISHED IN
    14  SECTION 504.
    15     "RESIDENTIAL PROPERTY TAX."  THE DOLLAR VALUE OF REAL
    16  PROPERTY TAXES PAID BY RESIDENTIAL PROPERTY OWNERS IN A SCHOOL
    17  DISTRICT, DETERMINED BY MULTIPLYING THE REAL PROPERTY TAXES
    18  COLLECTED BY THE SCHOOL DISTRICT TIMES THE PERCENTAGE OF THE
    19  TOTAL PROPERTY VALUE IN THE SCHOOL DISTRICT CLASSIFIED AS
    20  RESIDENTIAL BY THE STATE TAX EQUALIZATION BOARD.
    21     "SCHOOL DISTRICT."  AS DEFINED IN SECTION 302 AND INCLUDING A
    22  SCHOOL DISTRICT OF THE FIRST CLASS.
    23     "SCHOOL TAX RATIO."  THE DOLLAR VALUE OF LOCAL TAXES
    24  COLLECTED BY THE SCHOOL DISTRICT OR BY A CITY OF THE FIRST CLASS
    25  FOR A SCHOOL DISTRICT OF THE FIRST CLASS DIVIDED BY THE PERSONAL
    26  INCOME VALUATION OF THE SCHOOL DISTRICT.
    27     "SECRETARY."  THE SECRETARY OF THE BUDGET OF THE
    28  COMMONWEALTH.
    29  SECTION 503.  CERTIFICATION; CALCULATION OF MINIMUM AND MAXIMUM
    30                 MODIFIERS.
    20051H0039B0091                 - 54 -     

     1     (A)  SECRETARY OF THE BUDGET CERTIFICATION.--
     2         (1)  NO LATER THAN APRIL 15, 2006, AND APRIL 15 OF EACH
     3     YEAR THEREAFTER, THE SECRETARY OF THE BUDGET SHALL CERTIFY
     4     ALL OF THE FOLLOWING:
     5             (I)  THE TOTAL AMOUNT OF REVENUE IN THE FUND. IN
     6         CALCULATING THE TOTAL AMOUNT OF REVENUE IN THE FUND, THE
     7         SECRETARY SHALL TAKE INTO ACCOUNT ALL OF THE FOLLOWING:
     8                 (A)  FOR THE CERTIFICATION TO BE COMPLETED NO
     9             LATER THAN APRIL 15, 2006, REVENUE WHICH:
    10                     (I)  HAS BEEN DEPOSITED INTO THE FUND PRIOR
    11                 TO THE DATE OF THE CERTIFICATION;
    12                     (II)  IS REASONABLY PROJECTED TO BE DEPOSITED
    13                 INTO THE FUND DURING THE SIX MONTHS FOLLOWING THE
    14                 DATE ON WHICH THE CERTIFICATION IS MADE; AND
    15                     (III)  HAS BEEN APPROPRIATED UNDER SECTION
    16                 5002.
    17                 (B)  FOR CERTIFICATIONS IN SUBSEQUENT FISCAL
    18             YEARS:
    19                     (I)  REVENUE WHICH HAS BEEN DEPOSITED INTO
    20                 THE FUND DURING THE SIX MONTHS PRIOR TO THE DATE
    21                 ON WHICH THE CERTIFICATION IS MADE; AND
    22                     (II)  REVENUE ENUMERATED IN CLAUSE (A)(II).
    23             (II)  THE TOTAL AMOUNT OF REVENUE IN THE PROPERTY TAX
    24         RELIEF RESERVE FUND.
    25             (III)  IN CERTIFYING THE AMOUNT AVAILABLE FOR
    26         DISTRIBUTION UNDER SUBSECTION (E), THE SECRETARY SHALL
    27         ONLY CERTIFY AN AMOUNT THAT IS SUSTAINABLE IN SUBSEQUENT
    28         YEARS.
    29         (2)  IF THE ACTUAL REVENUE DEPOSITED INTO THE FUND DURING
    30     THE SIX MONTHS FOLLOWING THE DATE ON WHICH THE CERTIFICATION
    20051H0039B0091                 - 55 -     

     1     IS MADE EXCEEDS PROJECTIONS, ANY REVENUE IN EXCESS OF
     2     PROJECTIONS SHALL REMAIN IN THE FUND AND MAY BE INCLUDED IN
     3     THE CERTIFICATION FOR THE SUBSEQUENT FISCAL YEAR.
     4     (B)  ADDITIONAL CERTIFICATION.--
     5         (1)  THE DEPARTMENT SHALL CALCULATE EACH SCHOOL
     6     DISTRICT'S ESTIMATED LOCAL REVENUE CALCULATION AND CERTIFY
     7     THE CALCULATION TO THE SECRETARY NO LATER THAN 30 DAYS AFTER
     8     THE EFFECTIVE DATE OF THIS SECTION.
     9         (2)  BY DECEMBER 15, 2004, AND DECEMBER 15 OF EACH YEAR
    10     THEREAFTER, EACH SCHOOL DISTRICT SUBJECT TO SECTION 324 SHALL
    11     CERTIFY TO THE DEPARTMENT THE TOTAL AMOUNT OF TAX CREDITS
    12     UNDER SECTION 324(2).
    13     (C)  ALLOCATION MODIFIERS.--THE SECRETARY SHALL CALCULATE
    14  MODIFIERS FOR THE ALLOCATION MAXIMUM AND THE ALLOCATION MINIMUM
    15  BASED ON THE AMOUNT CERTIFIED UNDER SUBSECTION (A)(1)(I).
    16         (1)  IF THE AMOUNT CERTIFIED BY THE SECRETARY FOR A
    17     FISCAL YEAR EXCEEDS $750,000,000, THE MINIMUM MODIFIER FOR
    18     THE ALLOCATION MINIMUM SHALL BE A VALUE OF .005 PER
    19     $50,000,000 IN EXCESS OF $750,000,000. THE MODIFIER FOR THE
    20     ALLOCATION MINIMUM SHALL NOT EXCEED 0.05.
    21         (2)  IF THE AMOUNT CERTIFIED BY THE SECRETARY FOR A
    22     FISCAL YEAR EXCEEDS $750,000,000, THE MINIMUM MODIFIER FOR
    23     THE ALLOCATION MAXIMUM SHALL BE A VALUE OF .02 PER
    24     $50,000,000 IN EXCESS OF $750,000,000. THE MODIFIER FOR THE
    25     ALLOCATION MAXIMUM SHALL NOT EXCEED 0.2.
    26     (D)  NOTIFICATION.--
    27         (1)  BY APRIL 20, 2006, AND APRIL 20 EACH YEAR
    28     THEREAFTER, THE SECRETARY SHALL NOTIFY THE DEPARTMENT WHETHER
    29     IT IS AUTHORIZED TO PROVIDE SCHOOL DISTRICTS WITH PROPERTY
    30     TAX REDUCTION ALLOCATIONS UNDER SECTION 505.
    20051H0039B0091                 - 56 -     

     1         (2)  THE SECRETARY SHALL NOT AUTHORIZE THE DEPARTMENT TO
     2     PROVIDE THE FIRST PROPERTY TAX REDUCTION ALLOCATIONS UNTIL:
     3             (I)  THE CERTIFICATION UNDER SUBSECTION (A)(1)(II) IS
     4         IN COMPLIANCE WITH SECTION 504(C)(1); AND
     5             (II)  THE CERTIFICATION UNDER SUBSECTION (A)(1)(I) IS
     6         EQUAL TO OR GREATER THAN $400,000,000.
     7         (3)  SUBSEQUENT PROPERTY TAX REDUCTION ALLOCATIONS SHALL
     8     ONLY BE AUTHORIZED WHEN THE BALANCE OF THE PROPERTY TAX
     9     RELIEF RESERVE FUND IS IN COMPLIANCE WITH SECTION 504(C)(1).
    10     (E)  DISTRIBUTION.--IN CALCULATING THE REVENUE AVAILABLE FOR
    11  DISTRIBUTION, THE SECRETARY SHALL, FROM THE TOTAL AMOUNT
    12  CERTIFIED UNDER SUBSECTION (A)(1)(I), DEDUCT ALL OF THE
    13  FOLLOWING:
    14         (1)  AN AMOUNT SUFFICIENT TO FUND REIMBURSEMENTS TO
    15     ELIGIBLE SCHOOL DISTRICTS PURSUANT TO SECTION 324. THE AMOUNT
    16     DEDUCTED PURSUANT TO THIS PARAGRAPH SHALL BE CALCULATED BASED
    17     ON THE INFORMATION PROVIDED BY SCHOOL DISTRICTS PURSUANT TO
    18     SUBSECTION (B)(2).
    19         (2)  AN AMOUNT SUFFICIENT TO FUND THE PROGRAM UNDER
    20     SECTION 704.
    21  SECTION 504.  PROPERTY TAX RELIEF RESERVE FUND.
    22     (A)  FUND ESTABLISHED.--THERE IS ESTABLISHED IN THE STATE
    23  TREASURY A RESTRICTED RECEIPTS ACCOUNT TO BE KNOWN AS THE
    24  PROPERTY TAX RELIEF RESERVE FUND.
    25     (B)  RECEIPTS.--THE SECRETARY IS AUTHORIZED TO TRANSFER FUNDS
    26  FROM THE FUND INTO THE PROPERTY TAX RELIEF RESERVE FUND
    27  NECESSARY TO COMPLY WITH THE REQUIREMENTS OF SUBSECTION (C).
    28     (C)  BALANCE.--
    29         (1)  THE SECRETARY SHALL ENSURE THAT 25% OF THE AMOUNT
    30     CERTIFIED UNDER SECTION 503(A)(1)(I), BUT IN NO CASE MORE
    20051H0039B0091                 - 57 -     

     1     THAN $150,000,000, EXISTS IN THE PROPERTY TAX RELIEF RESERVE
     2     FUND PRIOR TO MAKING AN AUTHORIZATION UNDER SECTION 503(D).
     3         (2)  IF A TRANSFER WAS MADE UNDER SUBSECTION (D) IN THE
     4     PRIOR YEAR, THE SECRETARY SHALL DEPOSIT FUNDS NECESSARY TO
     5     ENSURE THAT 25% OF THE AMOUNT CERTIFIED UNDER SECTION
     6     503(A)(1)(I), BUT IN NO CASE MORE THAN $150,000,000 IS
     7     AVAILABLE IN THE PROPERTY TAX RELIEF RESERVE FUND PRIOR TO
     8     MAKING AN AUTHORIZATION UNDER SECTION 503(D).
     9     (D)  TRANSFERS.--
    10         (1)  THE SECRETARY MAY AUTHORIZE A TRANSFER FROM THE
    11     PROPERTY TAX RELIEF RESERVE FUND TO THE FUND IF THE
    12     CERTIFICATION UNDER SECTION 503(A)(1)(I) IS LESS THAN THE
    13     CERTIFICATION UNDER SECTION 503(A)(1)(I) MADE IN THE PRIOR
    14     YEAR. THE AMOUNT OF THE TRANSFER UNDER THIS SUBSECTION SHALL
    15     BE EQUAL TO THE DIFFERENCE BETWEEN THE CERTIFICATION UNDER
    16     SECTION 503(A)(1)(I) AND THE CERTIFICATION UNDER SECTION
    17     503(A)(1)(I) MADE IN THE PRIOR YEAR.
    18         (2)  THE SECRETARY SHALL TRANSFER ANY INTEREST THAT HAS
    19     ACCRUED FROM THE REVENUE IN THE PROPERTY TAX RELIEF RESERVE
    20     FUND TO THE FUND ON AN ANNUAL BASIS.
    21     (E)  NONLAPSE.--THE MONEY IN THE PROPERTY TAX RELIEF RESERVE
    22  FUND IS CONTINUOUSLY APPROPRIATED TO THE PROPERTY TAX RELIEF
    23  RESERVE FUND AND SHALL NOT LAPSE AT THE END OF ANY FISCAL YEAR.
    24  SECTION 505.  STATE PROPERTY TAX REDUCTION ALLOCATION.
    25     (A)  ADMINISTRATION.--THE DEPARTMENT SHALL DO ALL OF THE
    26  FOLLOWING:
    27         (1)  ARRAY THE 2002 PERSONAL INCOME VALUATION DIVIDED BY
    28     THE 2003-2004 AVERAGE DAILY MEMBERSHIP, THE 2004-2005 MARKET
    29     VALUE/INCOME AID RATIO, THE 2002-2003 EQUALIZED MILLAGE AND
    30     THE 2002-2003 SCHOOL TAX RATIO OF EACH SCHOOL DISTRICT IN
    20051H0039B0091                 - 58 -     

     1     RANK ORDER AND ASSIGN EACH SCHOOL DISTRICT A DISCREET
     2     NUMERICAL RANK FOR ITS PERSONAL INCOME VALUATION PER AVERAGE
     3     DAILY MEMBERSHIP, ITS MARKET VALUE/INCOME AID RATIO, ITS
     4     EQUALIZED MILLAGE AND ITS SCHOOL TAX RATIO. FOR THE NUMERICAL
     5     RANK OF A SCHOOL DISTRICT'S PERSONAL INCOME VALUATION PER
     6     AVERAGE DAILY MEMBERSHIP, THE SCHOOL DISTRICT WITH THE LOWEST
     7     PERSONAL INCOME VALUATION PER AVERAGE DAILY MEMBERSHIP SHALL
     8     HAVE THE HIGHEST NUMERICAL RANK. FOR THE NUMERICAL RANK OF A
     9     SCHOOL DISTRICT'S MARKET VALUE/INCOME AID RATIO, THE SCHOOL
    10     DISTRICT WITH THE HIGHEST MARKET VALUE/INCOME AID RATIO SHALL
    11     HAVE THE HIGHEST NUMERICAL RANK, PROVIDED THAT ALL SCHOOL
    12     DISTRICTS WITH A MARKET VALUE/INCOME AID RATIO EQUAL TO 0.15
    13     SHALL RECEIVE A RANKING OF 1. FOR THE NUMERICAL RANK OF A
    14     SCHOOL DISTRICT'S EQUALIZED MILLAGE, THE SCHOOL DISTRICT WITH
    15     THE HIGHEST EQUALIZED MILLAGE SHALL HAVE THE HIGHEST
    16     NUMERICAL RANK. FOR THE NUMERICAL RANK OF A SCHOOL DISTRICT'S
    17     SCHOOL TAX RATIO, THE SCHOOL DISTRICT WITH THE HIGHEST SCHOOL
    18     TAX RATIO SHALL HAVE THE HIGHEST NUMERICAL RANK.
    19         (2)  ASSIGN EACH SCHOOL DISTRICT A PROPERTY TAX REDUCTION
    20     INDEX.
    21         (3)  IF THE DEPARTMENT RECEIVES AUTHORIZATION UNDER
    22     SECTION 503(D), ALLOCATE THE PROPERTY TAX REDUCTION FOR EACH
    23     SCHOOL DISTRICT AS FOLLOWS:
    24             (I)  CALCULATE THE PROPERTY TAX REDUCTION ALLOCATION
    25         AS FOLLOWS:
    26                 (A)  MULTIPLY THE SCHOOL DISTRICT'S 2003-2004
    27             AVERAGE DAILY MEMBERSHIP BY THE SCHOOL DISTRICT'S
    28             PROPERTY TAX REDUCTION INDEX.
    29                 (B)  MULTIPLY THE PRODUCT UNDER CLAUSE (A) BY THE
    30             DOLLAR AMOUNT NECESSARY TO ALLOCATE ALL OF THE MONEY
    20051H0039B0091                 - 59 -     

     1             IN THE FUND AS CERTIFIED UNDER SECTION 503(A)(1)(I).
     2             IF THE CERTIFICATION UNDER SECTION 503(A)(1)(I) IS
     3             LESS THAN $750,000,000, THE DOLLAR AMOUNT SHALL BE
     4             THE DOLLAR AMOUNT NECESSARY TO ALLOCATE $750,000,000.
     5                 (C)  IF APPLICABLE, PROVIDE FOR THE ALLOCATION
     6             MINIMUM OR ALLOCATION MAXIMUM UNDER SUBPARAGRAPH (II)
     7             OR (III).
     8             (II)  IF THE SUM OF THE ALLOCATION UNDER THIS
     9         PARAGRAPH AND THE ESTIMATED LOCAL REVENUE CALCULATION
    10         CERTIFIED UNDER SECTION 503(B) IS LESS THAN THE PRODUCT
    11         OF THE RESIDENTIAL PROPERTY TAXES COLLECTED DURING THE
    12         2001-2002 FISCAL YEAR AND THE ALLOCATION MINIMUM FOR A
    13         SCHOOL DISTRICT, THE SCHOOL DISTRICT SHALL RECEIVE AN
    14         ADDITIONAL AMOUNT SO THAT THE SUM OF THE TOTAL ALLOCATION
    15         UNDER THIS PARAGRAPH AND THE ESTIMATED LOCAL REVENUE
    16         CALCULATION CERTIFIED UNDER SECTION 503(B) IS EQUAL TO
    17         THE PRODUCT OF THE RESIDENTIAL PROPERTY TAXES COLLECTED
    18         DURING THE 2001-2002 FISCAL YEAR AND THE ALLOCATION
    19         MINIMUM.
    20             (III)  EXCEPT AS SET FORTH IN SUBSECTION (C), IF THE
    21         SUM OF THE TOTAL ALLOCATION UNDER THIS PARAGRAPH AND THE
    22         ESTIMATED LOCAL REVENUE CALCULATION CERTIFIED UNDER
    23         SECTION 503(B) IS GREATER THAN THE PRODUCT OF THE
    24         RESIDENTIAL PROPERTY TAXES COLLECTED DURING THE 2001-2002
    25         FISCAL YEAR AND THE ALLOCATION MAXIMUM FOR A SCHOOL
    26         DISTRICT, THE SCHOOL DISTRICT SHALL RECEIVE A TOTAL
    27         ALLOCATION SUCH THAT THE SUM OF THE TOTAL ALLOCATION AND
    28         THE ESTIMATED LOCAL REVENUE CALCULATION CERTIFIED UNDER
    29         SECTION 503(B) IS EQUAL TO THE PRODUCT OF THE RESIDENTIAL
    30         PROPERTY TAXES COLLECTED DURING THE 2001-2002 FISCAL YEAR
    20051H0039B0091                 - 60 -     

     1         AND THE ALLOCATION MAXIMUM.
     2             (IV)  IF THE CALCULATION UNDER SECTION 503(E) IS LESS
     3         THAN $750,000,000, EACH SCHOOL DISTRICT SHALL RECEIVE A
     4         PRO RATA SHARE OF THE PROPERTY TAX REDUCTION ALLOCATION
     5         CALCULATED UNDER THIS PARAGRAPH AT $750,000,000.
     6         (4)  NOTIFY EACH SCHOOL DISTRICT OF THE AMOUNT OF ITS
     7     PROPERTY TAX REDUCTION ALLOCATION NO LATER THAN MAY 1 OF EACH
     8     YEAR.
     9     (B)  PAYMENT.--FOR THE FISCAL YEAR COMMENCING JULY 1, 2006,
    10  AND JULY 1 OF EACH FISCAL YEAR THEREAFTER, EXCEPT AS SET FORTH
    11  IN SUBSECTION (C), THE DEPARTMENT SHALL PAY TO EACH ELIGIBLE
    12  SCHOOL DISTRICT A PROPERTY TAX REDUCTION ALLOCATION EQUAL TO THE
    13  AMOUNT CALCULATED UNDER SUBSECTION (A)(3). THE PROPERTY TAX
    14  REDUCTION ALLOCATION SHALL BE DIVIDED INTO TWO EQUAL PAYMENTS,
    15  WHICH SHALL BE MADE ON THE FOURTH THURSDAY OF AUGUST AND THE
    16  FOURTH THURSDAY OF OCTOBER. EACH SCHOOL DISTRICT SHALL BE
    17  ELIGIBLE TO RECEIVE A PROPERTY TAX REDUCTION ALLOCATION UNDER
    18  THIS SECTION UNLESS ITS BOARD OF SCHOOL DIRECTORS TAKES ACTION
    19  UNDER SECTION 903.
    20     (C)  FIRST CLASS SCHOOL DISTRICTS.--THE PROPERTY TAX
    21  REDUCTION ALLOCATION FOR A SCHOOL DISTRICT OF THE FIRST CLASS
    22  SHALL BE PAID BY THE DEPARTMENT TO A CITY OF THE FIRST CLASS.
    23  THE LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(III) SHALL NOT
    24  APPLY TO THE CALCULATION OF THE PROPERTY TAX REDUCTION
    25  ALLOCATION FOR A SCHOOL DISTRICT OF THE FIRST CLASS.
    26     (D)  REDUCTION OF WAGE TAXES IN A CITY OF THE FIRST CLASS.--A
    27  CITY COUNCIL OF A CITY OF THE FIRST CLASS SHALL REDUCE ANY TAX
    28  IMPOSED ON THE WAGES OF RESIDENTS AND NONRESIDENTS UNDER THE
    29  AUTHORITY OF THE ACT OF AUGUST 5, 1932 (SP.SESS., P.L.45,
    30  NO.45), REFERRED TO AS THE STERLING ACT, IN A MANNER CONSISTENT
    20051H0039B0091                 - 61 -     

     1  WITH CHAPTER 7 AND IN ACCORDANCE WITH THE FOLLOWING:
     2         (1)  FOR RESIDENTS, BY AN AMOUNT EQUAL TO THE AMOUNT OF
     3     THE PROPERTY TAX REDUCTION ALLOCATION RECEIVED FROM THE
     4     COMMONWEALTH PURSUANT TO SUBSECTION (B) IN AN AMOUNT NOT TO
     5     EXCEED THE LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(III)
     6     HAD SUCH LIMITATIONS APPLIED.
     7         (2)  FOR NONRESIDENTS, BY ANY AMOUNT EQUAL TO THE AMOUNT
     8     OF THE PROPERTY TAX REDUCTION ALLOCATION RECEIVED FROM THE
     9     COMMONWEALTH PURSUANT TO SUBSECTION (B) IN EXCESS OF THE
    10     LIMITATIONS SET FORTH IN SUBSECTION (A)(3)(III) HAD SUCH
    11     LIMITATIONS APPLIED.
    12         (3)  IF THE CALCULATION UNDER SECTION 503(E) IS LESS THAN
    13     $750,000,000, THE TAX REDUCTIONS UNDER PARAGRAPHS (1) AND (2)
    14     SHALL BE A PRO RATA SHARE OF THE PROPERTY TAX REDUCTION
    15     ALLOCATION TO A SCHOOL DISTRICT OF THE FIRST CLASS CALCULATED
    16     UNDER SUBSECTION (A) AT $750,000,000.
    17                             CHAPTER 7
    18              TAX RELIEF IN CITIES OF THE FIRST CLASS
    19  SECTION 701.  SCOPE.
    20     THIS CHAPTER PROVIDES FOR TAX RELIEF IN CITIES OF THE FIRST
    21  CLASS.
    22  SECTION 702.  (RESERVED).
    23  SECTION 703.  TAX RELIEF.
    24     (A)  TAX RATE REDUCTION.--A CITY OF THE FIRST CLASS SHALL
    25  REDUCE THE RATE OF WAGE AND NET PROFITS TAX ON RESIDENTS AND
    26  NONRESIDENTS LEVIED UNDER THE ACT OF AUGUST 5, 1932 (SP.SESS.,
    27  P.L.45, NO.45), REFERRED TO AS THE STERLING ACT, IN ORDER TO BE
    28  ELIGIBLE TO RECEIVE A PROPERTY TAX REDUCTION ALLOCATION UNDER
    29  CHAPTER 5. IF THE CITY ELECTS TO REDUCE TAXES PURSUANT TO THIS
    30  CHAPTER, ALL MONEY RECEIVED FROM THE FUND SHALL BE USED TO
    20051H0039B0091                 - 62 -     

     1  OFFSET A REDUCTION BY THE CITY IN THE FISCAL YEAR IN WHICH A
     2  PAYMENT UNDER SECTION 505(B) IS RECEIVED AND EACH FISCAL YEAR
     3  THEREAFTER IN THE RATE OF TAX ON WAGES AND NET PROFITS FOR BOTH
     4  RESIDENTS AND NONRESIDENTS AS PROVIDED FOR IN SUBSECTION (B).
     5  THE REDUCTIONS SHALL REMAIN IN EFFECT FOR SO LONG AS A TAX
     6  REDUCTION ALLOCATION PURSUANT TO CHAPTER 5 IS PAID TO THE CITY
     7  IN AN AMOUNT EQUAL TO THE COST OF SUCH REDUCTIONS.
     8     (B)  CALCULATION OF REDUCTION.--
     9         (1)  THE CITY SHALL CALCULATE THE AMOUNT OF THE TAX RATE
    10     REDUCTIONS SO THAT THEY EQUAL, BASED ON ESTIMATES CERTIFIED
    11     BY THE CITY'S DIRECTOR OF FINANCE AND APPROVED BY THE
    12     PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY PRIOR TO
    13     THE IMPLEMENTATION OF THE REDUCTIONS, IN COMBINATION WITH ANY
    14     REDUCTION IN THE RATE OF UNEARNED INCOME TAX IMPOSED BY A
    15     SCHOOL DISTRICT IN THE CITY OF THE FIRST CLASS REQUIRED BY
    16     THE ACT OF AUGUST 9, 1963 (P.L.640, NO.338), ENTITLED "AN ACT
    17     EMPOWERING CITIES OF THE FIRST CLASS, COTERMINOUS WITH SCHOOL
    18     DISTRICTS OF THE FIRST CLASS, TO AUTHORIZE THE BOARDS OF
    19     PUBLIC EDUCATION OF SUCH SCHOOL DISTRICTS TO IMPOSE CERTAIN
    20     ADDITIONAL TAXES FOR SCHOOL DISTRICT PURPOSES, AND PROVIDING
    21     FOR THE LEVY, ASSESSMENT AND COLLECTION OF SUCH TAXES," AS A
    22     RESULT OF THE REDUCTION IN THE RATE OF WAGE AND NET PROFITS
    23     TAX, THE AMOUNT PAID TO THE CITY FROM THE FUND FOR TAX
    24     REDUCTIONS. THE CITY SHALL EACH YEAR TRANSFER TO THE SCHOOL
    25     DISTRICT AN AMOUNT EQUAL TO THE COST OF ANY REDUCTION IN THE
    26     RATE OF UNEARNED INCOME TAX, AND THE TRANSFER SHALL NOT BE
    27     SUBJECT TO THE PROVISIONS OF SECTION 696(H) OF THE PUBLIC
    28     SCHOOL CODE.
    29         (2)  THE TAX RATE REDUCTIONS IMPLEMENTED BY A CITY OF THE
    30     FIRST CLASS PURSUANT TO THIS SECTION SHALL BE IN ADDITION TO
    20051H0039B0091                 - 63 -     

     1     THE FOLLOWING SCHEDULE OF PERCENTAGES OF WAGE AND NET PROFITS
     2     TAX RATE REDUCTIONS:
     3             (I)  ON JANUARY 1, 2005, 2.9468% FOR RESIDENTS AND
     4         1.5567% FOR NONRESIDENTS.
     5             (II)  ON JANUARY 1, 2006, 0.6927% FOR RESIDENTS AND
     6         1.2593% FOR NONRESIDENTS.
     7             (III)  ON JANUARY 1, 2007, 0.9533% FOR RESIDENTS AND
     8         0.4216% FOR NONRESIDENTS.
     9             (IV)  ON JANUARY 1, 2008, 0.9624% FOR RESIDENTS AND
    10         0.8387% FOR NONRESIDENTS.
    11             (V)  ON JANUARY 1, 2009, 1.1851% FOR RESIDENTS AND
    12         1.0526% FOR NONRESIDENTS.
    13     (C)  EXCEPTIONS.--THE WAGE AND NET PROFITS TAX RATES MAY ONLY
    14  BE RAISED ABOVE THE RATES SPECIFIED IN SUBSECTION (B)(2) IF ALL
    15  OF THE FOLLOWING APPLY:
    16         (1)  THE INCREASE IS APPROVED BY AN AFFIRMATIVE VOTE OF
    17     AT LEAST TEN MEMBERS OF A CITY COUNCIL OF A CITY OF THE FIRST
    18     CLASS.
    19         (2)  THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
    20     AUTHORITY CERTIFIES THAT A CONDITION UNDER PARAGRAPH (3)
    21     EXISTS.
    22         (3)  THE INCREASE IS NECESSARY TO RESPOND TO ANY OF THE
    23     FOLLOWING:
    24             (I)  A FISCAL THREAT OR CONDITION, AS CERTIFIED BY
    25         THE CITY'S DIRECTOR OF FINANCE, THAT OCCURS TO THE CITY
    26         AS SET FORTH IN SECTION 333(F) OR AN EQUIVALENT FISCAL
    27         THREAT THAT AFFECTS THE CITIZENS OF THE CITY. IT SHALL BE
    28         THE RESPONSIBILITY OF THE CITY'S DIRECTOR OF FINANCE WITH
    29         THE APPROVAL OF THE PENNSYLVANIA INTERGOVERNMENTAL
    30         COOPERATION AUTHORITY TO ENSURE THAT ANY ADDITIONAL TAX
    20051H0039B0091                 - 64 -     

     1         REVENUE RAISED IS EQUAL TO THE AMOUNT EXPENDED TO RESPOND
     2         TO THE FISCAL THREAT OR CONDITION. IF THE AMOUNT OF
     3         REVENUE RAISED THROUGH RATE ADJUSTMENT EXCEEDS THE AMOUNT
     4         NECESSARY TO RESPOND, OVER THE COURSE OF THE CITY'S
     5         APPROVED FINANCIAL PLAN, TO THE FISCAL THREAT, THE EXCESS
     6         AMOUNT SHALL BE USED FOR WAGE TAX AND NET PROFITS TAX
     7         REDUCTION IN THE IMMEDIATELY SUCCEEDING APPROVED
     8         FINANCIAL PLAN, BUT ONLY IF THE TAX RATE REDUCTION,
     9         EXPRESSED AS THE DIFFERENCE BETWEEN THE TWO TAX RATES,
    10         WOULD EXCEED .0002.
    11             (II)  A DECREASE OF MORE THAN 2% IN THE AMOUNT OF
    12         TOTAL TAX COLLECTIONS PLUS ANY FUNDS PROVIDED UNDER THIS
    13         CHAPTER FROM THE PRECEDING YEAR'S COLLECTIONS. SUCH A
    14         DETERMINATION OF A DECREASE MUST BE ATTESTED TO BY THE
    15         CITY'S DIRECTOR OF FINANCE.
    16             (III)  A DECLARATION BY THE PENNSYLVANIA
    17         INTERGOVERNMENTAL COOPERATION AUTHORITY THAT THE CITY'S
    18         FIVE-YEAR PLAN IS DISAPPROVED PURSUANT TO SECTION 209 OF
    19         THE ACT OF JUNE 5, 1991 (P.L.9, NO.6), KNOWN AS THE
    20         PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT
    21         FOR CITIES OF THE FIRST CLASS.
    22             (IV)  FEDERAL OR STATE LAW IMPOSES A NEW UNFUNDED
    23         MANDATE ON THE CITY THAT COSTS THE CITY MORE THAN 1.5% OF
    24         THE CITY'S TOTAL GENERAL FUND EXPENDITURES IN ANY FISCAL
    25         YEAR.
    26             (V)  THE COST TO THE CITY OF AN EXISTING MANDATE
    27         IMPOSED BY FEDERAL OR STATE LAW INCREASES BY MORE THAN
    28         1.5% OF THE CITY'S TOTAL GENERAL FUND EXPENDITURES IN ANY
    29         FISCAL YEAR AND FUNDS TO PAY FOR THE INCREASE ARE NOT
    30         APPROPRIATED TO THE CITY BY THE FEDERAL OR STATE
    20051H0039B0091                 - 65 -     

     1         GOVERNMENT.
     2             (VI)  EXISTING FEDERAL OR STATE FUNDING IS DECREASED
     3         BY 1.5% OF THE CITY'S TOTAL GENERAL FUND EXPENDITURES IN
     4         ANY FISCAL YEAR.
     5     (D)  EXCESS FUNDS.--IF IN ANY FISCAL YEAR THE SUMS RECEIVED
     6  BY A CITY OF THE FIRST CLASS FROM THE FUND ARE IN EXCESS OF THE
     7  VALUE OF THE TAX RATE REDUCTIONS ACTUALLY MADE BY THE CITY AND
     8  THE SCHOOL DISTRICT OF THE FIRST CLASS PURSUANT TO SUBSECTION
     9  (A), THE CITY SHALL, WITHIN 60 DAYS FOLLOWING THE CERTIFICATION
    10  BY THE DIRECTOR OF FINANCE, IN CONSULTATION WITH THE SECRETARY
    11  OF THE BUDGET AND WITH THE APPROVAL OF THE PENNSYLVANIA
    12  INTERGOVERNMENTAL COOPERATION AUTHORITY OF THE AMOUNT OF THE
    13  EXCESS, DO EITHER OF THE FOLLOWING:
    14         (1)  REPAY TO THE FUND THE EXCESS SUMS; OR
    15         (2)  FURTHER REDUCE WAGE AND NET PROFITS TAX RATES AND
    16     UNEARNED INCOME TAX RATES, IF REQUIRED, IN THE FISCAL YEAR
    17     NEXT FOLLOWING THE DETERMINATION OF THE EXCESS, BY AN AMOUNT
    18     THAT WILL RESULT IN TOTAL TAX RATE REDUCTIONS REQUIRED FOR
    19     THE AMOUNT RECEIVED FROM THE FUND. TO THE EXTENT THE TAX RATE
    20     REDUCTION PROVIDED FOR IN THIS PARAGRAPH, EXPRESSED AS THE
    21     DIFFERENCE BETWEEN THE TWO TAX RATES, WOULD NOT EXCEED .0002,
    22     THIS SUBSECTION SHALL NOT APPLY.
    23     (E)  INSUFFICIENT FUNDS.--IF IN ANY FISCAL YEAR THE DIRECTOR
    24  OF FINANCE CERTIFIES, IN CONSULTATION WITH THE SECRETARY OF THE
    25  BUDGET AND WITH THE APPROVAL OF THE PENNSYLVANIA
    26  INTERGOVERNMENTAL COOPERATION AUTHORITY, THAT THE AMOUNT OF SUMS
    27  RECEIVED BY THE CITY FROM THE FUND ARE LESS THAN THE VALUE OF
    28  THE TAX RATE REDUCTIONS ACTUALLY MADE BY THE CITY AND SCHOOL
    29  DISTRICT OF THE FIRST CLASS PURSUANT TO SUBSECTION (A), THE CITY
    30  MAY, IN THE FISCAL YEAR NEXT FOLLOWING THE DETERMINATION OF THE
    20051H0039B0091                 - 66 -     

     1  AMOUNT, INCREASE THE CITY'S WAGE AND NET PROFITS TAX RATE ABOVE
     2  THE RATES SPECIFIED IN SUBSECTION (B)(2) BY AN AMOUNT THAT WILL
     3  RESULT IN AN OVERALL TAX RATE REDUCTION EQUAL TO THAT REQUIRED
     4  FOR THE AMOUNT RECEIVED BY THE CITY FROM THE FUND. TO THE EXTENT
     5  THE TAX RATE INCREASE PROVIDED FOR IN THIS SUBSECTION, EXPRESSED
     6  AS THE DIFFERENCE BETWEEN THE TWO TAX RATES, WOULD NOT EXCEED
     7  .0002, THIS SUBSECTION SHALL NOT APPLY.
     8  SECTION 704.  SUPPLEMENTAL SENIOR CITIZEN TAX REDUCTION.
     9     (A)  ELIGIBILITY.--FOR TAX YEARS BEGINNING IN THE FIRST YEAR
    10  IN WHICH A PAYMENT UNDER SECTION 505(B) IS MADE AND EACH TAX
    11  YEAR THEREAFTER, THE FOLLOWING APPLY:
    12         (1)  EXCEPT AS PROVIDED IN PARAGRAPH (2), ANY RESIDENT OF
    13     A CITY OF THE FIRST CLASS, A SCHOOL DISTRICT OF THE FIRST
    14     CLASS A OR A SCHOOL DISTRICT COTERMINOUS WITH A CITY OF THE
    15     SECOND CLASS A WHO IS ELIGIBLE TO RECEIVE A PROPERTY TAX
    16     REBATE UNDER CHAPTER 13 SHALL BE ELIGIBLE TO RECEIVE AN
    17     ADDITIONAL PROPERTY TAX REBATE EQUAL TO 50% OF THE AMOUNT THE
    18     INDIVIDUAL IS ELIGIBLE TO RECEIVE UNDER CHAPTER 13.
    19         (2)  AN ADDITIONAL REBATE UNDER PARAGRAPH (1) MAY NOT
    20     EXCEED THE DIFFERENCE BETWEEN THE PROPERTY TAX PAID BY THE
    21     ELIGIBLE RESIDENT AND THE REBATE RECEIVED BY THE ELIGIBLE
    22     RESIDENT UNDER CHAPTER 13 FOR THE SAME TAX YEAR.
    23     (B)  TRANSFER AUTHORIZED.--BY JUNE 30 OF THE YEAR IN WHICH A
    24  PAYMENT UNDER SECTION 505(B) IS MADE, THE STATE TREASURER SHALL
    25  TRANSFER FROM THE FUND AN AMOUNT SUFFICIENT TO FUND THE PROPERTY
    26  TAX REBATES AUTHORIZED UNDER SUBSECTION (A) TO THE STATE LOTTERY
    27  FUND. ALL REVENUE TRANSFERRED PURSUANT TO THIS SUBSECTION SHALL
    28  BE DISTRIBUTED IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER 13.
    29     (C)  APPLICABILITY.--THIS SECTION SHALL NOT APPLY TO A
    30  RESIDENT OF A CITY OF THE FIRST CLASS, A SCHOOL DISTRICT OF THE
    20051H0039B0091                 - 67 -     

     1  FIRST CLASS A OR A SCHOOL DISTRICT COTERMINOUS WITH A CITY OF
     2  THE SECOND CLASS A WHO IS ENTITLED TO RECEIVE A RENT REBATE IN
     3  LIEU OF PROPERTY TAXES UNDER CHAPTER 13.
     4                             CHAPTER 9
     5           SCHOOL DISTRICT CHOICE AND VOTER PARTICIPATION
     6  SECTION 901.  SCOPE.
     7     THIS CHAPTER RELATES TO SCHOOL DISTRICT CHOICE AND VOTER
     8  OPTION.
     9  SECTION 902. (RESERVED).
    10  SECTION 903.  SCHOOL DISTRICT CHOICE.
    11     (A)  GENERAL RULE.--WITHIN 30 DAYS OF RECEIPT OF THE NOTICE
    12  REQUIRED UNDER SECTION 505(A)(4), A BOARD OF SCHOOL DIRECTORS OF
    13  A SCHOOL DISTRICT, EXCEPT A SCHOOL DISTRICT OF THE FIRST CLASS,
    14  MAY BY RESOLUTION REJECT THE PROPERTY TAX REDUCTION ALLOCATION
    15  PROVIDED TO THE SCHOOL DISTRICT PURSUANT TO CHAPTER 5.
    16     (B)  NOTICE TO DEPARTMENT.--WITHIN FIVE DAYS AFTER ADOPTING
    17  THE RESOLUTION, THE BOARD OF SCHOOL DIRECTORS SHALL NOTIFY THE
    18  DEPARTMENT IN A FORM AND MANNER PRESCRIBED BY THE DEPARTMENT.
    19     (C)  EFFECT OF RESOLUTION.--A SCHOOL DISTRICT THAT ADOPTS A
    20  RESOLUTION PURSUANT TO SUBSECTION (A) SHALL BE INELIGIBLE TO
    21  RECEIVE A PROPERTY TAX REDUCTION ALLOCATION PURSUANT TO CHAPTER
    22  5 FOR THE UPCOMING FISCAL YEAR, AND THE SCHOOL DISTRICT'S
    23  PROPERTY TAX REDUCTION ALLOCATION SHALL BE DEPOSITED INTO THE
    24  PROPERTY TAX RELIEF RESERVE FUND.
    25  SECTION 904.  VOTER PARTICIPATION.
    26     (A)  GENERAL RULE.--IF A SCHOOL DISTRICT ADOPTS A RESOLUTION
    27  PURSUANT TO SECTION 903(A), A REFERENDUM SHALL BE SUBMITTED TO
    28  THE ELECTORS OF THE SCHOOL DISTRICT UNDER THE PROVISIONS OF THIS
    29  SECTION TO DETERMINE WHETHER THE ELECTORS FAVOR THE SCHOOL
    30  DISTRICT RECEIVING A PROPERTY TAX REDUCTION ALLOCATION.
    20051H0039B0091                 - 68 -     

     1     (B)  NOTICE TO ELECTION OFFICIALS.--WITHIN 60 DAYS AFTER THE
     2  DEADLINE FOR A SCHOOL DISTRICT TO NOTIFY THE DEPARTMENT THAT THE
     3  SCHOOL DISTRICT HAS TAKEN ACTION UNDER SECTION 903(A), THE
     4  DEPARTMENT SHALL NOTIFY THE ELECTION OFFICIALS OF EACH COUNTY OF
     5  THE SCHOOL DISTRICTS IN THAT COUNTY THAT HAVE TAKEN ACTION UNDER
     6  SECTION 903(A).
     7     (C)  REFERENDUM QUESTION REQUIRED.--UPON RECEIPT OF
     8  INFORMATION PROVIDED BY THE DEPARTMENT UNDER SUBSECTION (B), THE
     9  ELECTION OFFICIALS OF THE COUNTY IN WHICH IS SITUATE A SCHOOL
    10  DISTRICT OR PORTION OF A SCHOOL DISTRICT THAT HAS TAKEN ACTION
    11  UNDER SECTION 903(A) SHALL CAUSE A REFERENDUM QUESTION TO BE
    12  PLACED ON THE BALLOT AT THE MUNICIPAL OR GENERAL ELECTION
    13  IMMEDIATELY FOLLOWING THE RECEIPT OF THE INFORMATION. THE
    14  REFERENDUM QUESTION SHALL BE IN THE FOLLOWING FORM:
    15             DO YOU FAVOR THE (NAME OF SCHOOL DISTRICT) RECEIVING
    16             STATE FUNDS TO REDUCE PROPERTY TAXES ON QUALIFIED
    17             RESIDENTIAL PROPERTIES?
    18     (D)  NONLEGAL INTERPRETIVE STATEMENT.--THE ELECTION OFFICIALS
    19  OF A COUNTY SHALL, IN CONSULTATION WITH THE BOARD OF SCHOOL
    20  DIRECTORS, DRAFT A NONLEGAL INTERPRETIVE STATEMENT WHICH SHALL
    21  ACCOMPANY THIS REFERENDUM QUESTION IN ACCORDANCE WITH SECTION
    22  201.1 OF THE ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS
    23  THE PENNSYLVANIA ELECTION CODE.
    24     (E)  CERTIFICATION OF RESULTS.--THE ELECTION OFFICIALS OF A
    25  COUNTY SHALL CERTIFY THE RESULTS OF THE REFERENDUM UNDER THIS
    26  SECTION TO THE DEPARTMENT OF STATE IN ACCORDANCE WITH ARTICLE
    27  XIV OF THE PENNSYLVANIA ELECTION CODE. THE DEPARTMENT OF STATE
    28  SHALL NOTIFY THE SCHOOL DISTRICT AND THE DEPARTMENT OF THE
    29  RESULTS OF THE REFERENDUM REQUIRED UNDER SUBSECTION (B) AS SOON
    30  AS IS PRACTICABLE.
    20051H0039B0091                 - 69 -     

     1     (F)  APPROVAL OF REFERENDUM.--IN ANY SCHOOL DISTRICT IN WHICH
     2  A REFERENDUM QUESTION UNDER SUBSECTION (C) HAS BEEN APPROVED BY
     3  A MAJORITY OF THE ELECTORS VOTING ON THE QUESTION, THE SCHOOL
     4  DISTRICT SHALL BE ELIGIBLE TO RECEIVE THE PROPERTY TAX REDUCTION
     5  ALLOCATION PROVIDED UNDER CHAPTER 5 BEGINNING WITH THE FISCAL
     6  YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH THE REFERENDUM IS
     7  APPROVED. THE SCHOOL DISTRICT SHALL USE THE PROPERTY TAX
     8  REDUCTION ALLOCATION TO FUND HOMESTEAD AND FARMSTEAD EXCLUSIONS
     9  PURSUANT TO THIS ACT.
    10                             CHAPTER 13
    11                  SENIOR CITIZENS PROPERTY TAX AND
    12                       RENT REBATE ASSISTANCE
    13  SECTION 1301.  SCOPE.
    14     THIS CHAPTER PROVIDES SENIOR CITIZENS WITH ASSISTANCE IN THE
    15  FORM OF PROPERTY TAX AND RENT REBATES.
    16  SECTION 1302.  (RESERVED).
    17  SECTION 1303.  DEFINITIONS.
    18     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    19  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    20  CONTEXT CLEARLY INDICATES OTHERWISE:
    21     "BOARD."  THE BOARD OF FINANCE AND REVENUE OF THE
    22  COMMONWEALTH.
    23     "CLAIMANT."  A PERSON WHO FILES A CLAIM FOR PROPERTY TAX
    24  REBATE OR RENT REBATE IN LIEU OF PROPERTY TAXES AND:
    25         (1)  WAS AT LEAST 65 YEARS OF AGE, OR WHOSE SPOUSE, IF A
    26     MEMBER OF THE HOUSEHOLD, WAS AT LEAST 65 YEARS OF AGE DURING
    27     A CALENDAR YEAR IN WHICH REAL PROPERTY TAXES OR RENT WERE DUE
    28     AND PAYABLE;
    29         (2)  WAS A WIDOW OR WIDOWER AND WAS AT LEAST 50 YEARS OF
    30     AGE DURING A CALENDAR YEAR OR PART THEREOF IN WHICH REAL
    20051H0039B0091                 - 70 -     

     1     PROPERTY TAXES OR RENT WERE DUE AND PAYABLE; OR
     2         (3)  WAS A PERMANENTLY DISABLED PERSON 18 YEARS OF AGE OR
     3     OLDER DURING A CALENDAR YEAR OR PART THEREOF IN WHICH THE
     4     REAL PROPERTY TAXES OR RENT WERE DUE AND PAYABLE.
     5     "DEPARTMENT."  THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
     6     "HOMESTEAD."  A DWELLING, WHETHER OWNED OR RENTED, AND SO
     7  MUCH OF THE LAND SURROUNDING IT, AS IS REASONABLY NECESSARY FOR
     8  THE USE OF THE DWELLING AS A HOME, OCCUPIED BY A CLAIMANT. THE
     9  TERM INCLUDES, BUT IS NOT LIMITED TO:
    10         (1)  PREMISES OCCUPIED BY REASON OF OWNERSHIP OR LEASE IN
    11     A COOPERATIVE HOUSING CORPORATION.
    12         (2)  MOBILE HOMES WHICH ARE ASSESSED AS REALTY FOR LOCAL
    13     PROPERTY TAX PURPOSES AND THE LAND, IF OWNED OR RENTED BY THE
    14     CLAIMANT, UPON WHICH THE MOBILE HOME IS SITUATED, AND OTHER
    15     SIMILAR LIVING ACCOMMODATIONS.
    16         (3)  A PART OF A MULTIDWELLING OR MULTIPURPOSE BUILDING
    17     AND A PART OF THE LAND UPON WHICH IT IS BUILT.
    18         (4)  PREMISES OCCUPIED BY REASON OF THE CLAIMANT'S
    19     OWNERSHIP OR RENTAL OF A DWELLING LOCATED ON LAND OWNED BY A
    20     NONPROFIT INCORPORATED ASSOCIATION, OF WHICH THE CLAIMANT IS
    21     A MEMBER, IF THE CLAIMANT IS REQUIRED TO PAY A PRO RATA SHARE
    22     OF THE PROPERTY TAXES LEVIED AGAINST THE ASSOCIATION'S LAND.
    23         (5)  PREMISES OCCUPIED BY A CLAIMANT IF THE CLAIMANT IS
    24     REQUIRED BY LAW TO PAY A PROPERTY TAX BY REASON OF THE
    25     CLAIMANT'S OWNERSHIP OR RENTAL, INCLUDING A POSSESSORY
    26     INTEREST, IN THE DWELLING, THE LAND, OR BOTH. AN OWNER
    27     INCLUDES A PERSON IN POSSESSION UNDER A CONTRACT OF SALE,
    28     DEED OF TRUST, LIFE ESTATE, JOINT TENANCY OR TENANCY IN
    29     COMMON OR BY REASON OF STATUTES OF DESCENT AND DISTRIBUTION.
    30     "HOUSEHOLD INCOME."  ALL INCOME RECEIVED BY A CLAIMANT AND
    20051H0039B0091                 - 71 -     

     1  THE CLAIMANT'S SPOUSE WHILE RESIDING IN THE HOMESTEAD DURING THE
     2  CALENDAR YEAR FOR WHICH A REBATE IS CLAIMED.
     3     "INCOME."  ALL INCOME FROM WHATEVER SOURCE DERIVED,
     4  INCLUDING, BUT NOT LIMITED TO:
     5         (1)  SALARIES, WAGES, BONUSES, COMMISSIONS, INCOME FROM
     6     SELF-EMPLOYMENT, ALIMONY, SUPPORT MONEY, CASH PUBLIC
     7     ASSISTANCE AND RELIEF.
     8         (2)  THE GROSS AMOUNT OF ANY PENSIONS OR ANNUITIES
     9     INCLUDING RAILROAD RETIREMENT BENEFITS FOR CALENDAR YEARS
    10     PRIOR TO 1999, AND 50% OF RAILROAD RETIREMENT BENEFITS FOR
    11     CALENDAR YEARS 1999 AND THEREAFTER.
    12         (3)  ALL BENEFITS RECEIVED UNDER THE SOCIAL SECURITY ACT
    13     (49 STAT. 620, 42 U.S.C. § 301 ET SEQ.), EXCEPT MEDICARE
    14     BENEFITS, FOR CALENDAR YEARS PRIOR TO 1999, AND 50% OF ALL
    15     BENEFITS RECEIVED UNDER THE SOCIAL SECURITY ACT, EXCEPT
    16     MEDICARE BENEFITS, FOR CALENDAR YEARS 1999 AND THEREAFTER.
    17         (4)  ALL BENEFITS RECEIVED UNDER STATE UNEMPLOYMENT
    18     INSURANCE LAWS AND VETERANS' DISABILITY PAYMENTS.
    19         (5)  ALL INTEREST RECEIVED FROM THE FEDERAL OR ANY STATE
    20     GOVERNMENT, OR ANY INSTRUMENTALITY OR POLITICAL SUBDIVISION
    21     THEREOF.
    22         (6)  REALIZED CAPITAL GAINS AND RENTALS.
    23         (7)  WORKERS' COMPENSATION.
    24         (8)  THE GROSS AMOUNT OF LOSS OF TIME INSURANCE BENEFITS,
    25     LIFE INSURANCE BENEFITS AND PROCEEDS, EXCEPT THE FIRST $5,000
    26     OF THE TOTAL OF DEATH BENEFIT PAYMENTS.
    27         (9)  GIFTS OF CASH OR PROPERTY, OTHER THAN TRANSFERS BY
    28     GIFT BETWEEN MEMBERS OF A HOUSEHOLD, IN EXCESS OF A TOTAL
    29     VALUE OF $300.
    30  THE TERM DOES NOT INCLUDE SURPLUS FOOD OR OTHER RELIEF IN KIND
    20051H0039B0091                 - 72 -     

     1  SUPPLIED BY A GOVERNMENTAL AGENCY, PROPERTY TAX OR RENT REBATE
     2  OR INFLATION DIVIDEND.
     3     "PERMANENTLY DISABLED PERSON."  A PERSON WHO IS UNABLE TO
     4  ENGAGE IN ANY SUBSTANTIAL GAINFUL ACTIVITY BY REASON OF ANY
     5  MEDICALLY DETERMINABLE PHYSICAL OR MENTAL IMPAIRMENT WHICH CAN
     6  BE EXPECTED TO CONTINUE INDEFINITELY, EXCEPT AS PROVIDED IN
     7  SECTION 1304(B)(3) AND (C).
     8     "REAL PROPERTY TAXES."  ALL TAXES ON A HOMESTEAD, EXCLUSIVE
     9  OF MUNICIPAL ASSESSMENTS, DELINQUENT CHARGES AND INTEREST, DUE
    10  AND PAYABLE DURING A CALENDAR YEAR.
    11     "RENT REBATE IN LIEU OF PROPERTY TAXES."  TWENTY PERCENT OF
    12  THE GROSS AMOUNT ACTUALLY PAID IN CASH OR ITS EQUIVALENT IN ANY
    13  CALENDAR YEAR TO A LANDLORD IN CONNECTION WITH THE OCCUPANCY OF
    14  A HOMESTEAD BY A CLAIMANT, IRRESPECTIVE OF WHETHER SUCH AMOUNT
    15  CONSTITUTES PAYMENT SOLELY FOR THE RIGHT OF OCCUPANCY OR
    16  OTHERWISE.
    17     "SECRETARY."  THE SECRETARY OF REVENUE OF THE COMMONWEALTH.
    18     "WIDOW" OR "WIDOWER."  THE SURVIVING WIFE OR THE SURVIVING
    19  HUSBAND, AS THE CASE MAY BE, OF A DECEASED INDIVIDUAL AND WHO
    20  HAS NOT REMARRIED EXCEPT AS PROVIDED IN SECTION 1304(B)(3) AND
    21  (C).
    22  SECTION 1304.  PROPERTY TAX; RENT REBATE AND INFLATION COST.
    23     (A)  SCHEDULE OF REBATES.--
    24         (1)  THE AMOUNT OF ANY CLAIM FOR PROPERTY TAX REBATE OR
    25     RENT REBATE IN LIEU OF PROPERTY TAXES FOR REAL PROPERTY TAXES
    26     OR RENT DUE AND PAYABLE DURING CALENDAR YEARS 1985 THROUGH
    27     2004 SHALL BE DETERMINED IN ACCORDANCE WITH THE FOLLOWING
    28     SCHEDULE:
    29                             PERCENTAGE OF REAL PROPERTY TAXES OR
    30                                 RENT REBATE IN LIEU OF
    20051H0039B0091                 - 73 -     

     1     HOUSEHOLD INCOME        PROPERTY TAXES ALLOWED AS REBATE
     2      $    0 - $4,999                        100%
     3       5,000 -  5,499                        100
     4       5,500 -  5,999                         90
     5       6,000 -  6,499                         80
     6       6,500 -  6,999                         70
     7       7,000 -  7,499                         60
     8       7,500 -  7,999                         50
     9       8,000 -  8,499                         40
    10       8,500 -  8,999                         35
    11       9,000 -  9,999                         25
    12      10,000 - 11,999                         20
    13      12,000 - 12,999                         15
    14      13,000 - 15,000                         10
    15         (2)  THE AMOUNT OF ANY CLAIM FOR PROPERTY TAX REBATE OR
    16     RENT REBATE IN LIEU OF PROPERTY TAXES FOR REAL PROPERTY TAXES
    17     OR RENT DUE AND PAYABLE DURING CALENDAR YEAR 2005 AND
    18     THEREAFTER SHALL BE DETERMINED IN ACCORDANCE WITH THE
    19     FOLLOWING SCHEDULE:
    20                             AMOUNT OF REAL PROPERTY TAXES
    21                             OR RENT REBATE IN LIEU OF PROPERTY
    22     HOUSEHOLD INCOME        TAXES ALLOWED AS REBATE
    23      $     0 -  $ 8,000                     $650
    24        8,001 -  15,000                       500
    25       15,001 -  18,000                       300
    26       18,001 -  25,000                       250
    27     (B)  LIMITATIONS ON CLAIMS.--
    28         (1)  NO CLAIM THROUGH CALENDAR YEAR 2004 SHALL BE ALLOWED
    29     IF THE AMOUNT OF PROPERTY TAX OR RENT REBATE COMPUTED IN
    30     ACCORDANCE WITH THIS SECTION IS LESS THAN $10, AND THE
    20051H0039B0091                 - 74 -     

     1     MAXIMUM AMOUNT OF PROPERTY TAX OR RENT REBATE PAYABLE SHALL
     2     NOT EXCEED $500.
     3         (2)  FOR CALENDAR YEAR 2005 AND THEREAFTER, THE MAXIMUM
     4     AMOUNT OF PROPERTY TAX OR RENT REBATE IN LIEU OF PROPERTY
     5     TAXES PAYABLE SHALL NOT EXCEED THE LESSER OF:
     6             (I)  THE AMOUNT OF A CLAIM UNDER SUBSECTION (A)(2);
     7             (II)  THE AMOUNT OF REAL PROPERTY TAXES ACTUALLY
     8         PAID; OR
     9             (III)  20% OF GROSS RENT ACTUALLY PAID.
    10         (3)  NO CLAIM SHALL BE ALLOWED IF THE CLAIMANT IS A
    11     TENANT OF AN OWNER OF REAL PROPERTY EXEMPT FROM REAL PROPERTY
    12     TAXES.
    13     (C)  APPORTIONMENT AND PUBLIC ASSISTANCE.--
    14         (1)  IF ANY OF THE FOLLOWING EXIST RELATING TO A CLAIM:
    15             (I)  A HOMESTEAD IS OWNED OR RENTED AND OCCUPIED FOR
    16         ONLY A PORTION OF A YEAR OR IS OWNED OR RENTED IN PART BY
    17         A PERSON WHO DOES NOT MEET THE QUALIFICATIONS FOR A
    18         CLAIMANT, EXCLUSIVE OF ANY INTEREST OWNED OR LEASED BY A
    19         CLAIMANT'S SPOUSE;
    20             (II)  THE CLAIMANT IS A WIDOW OR WIDOWER WHO
    21         REMARRIES; OR
    22             (III)  THE CLAIMANT IS A FORMERLY DISABLED PERSON WHO
    23         IS NO LONGER DISABLED,
    24     THE DEPARTMENT SHALL APPORTION THE REAL PROPERTY TAXES OR
    25     RENT IN ACCORDANCE WITH THE PERIOD OR DEGREE OF OWNERSHIP OR
    26     LEASEHOLD OR ELIGIBILITY OF THE CLAIMANT IN DETERMINING THE
    27     AMOUNT OF REBATE FOR WHICH A CLAIMANT IS ELIGIBLE.
    28         (2)  A CLAIMANT WHO RECEIVES PUBLIC ASSISTANCE FROM THE
    29     DEPARTMENT OF PUBLIC WELFARE SHALL NOT BE ELIGIBLE FOR RENT
    30     REBATE IN LIEU OF PROPERTY TAXES DURING THOSE MONTHS WITHIN
    20051H0039B0091                 - 75 -     

     1     WHICH THE CLAIMANT RECEIVES PUBLIC ASSISTANCE.
     2     (D)  GOVERNMENT SUBSIDIES.--RENT SHALL NOT INCLUDE SUBSIDIES
     3  PROVIDED BY OR THROUGH A GOVERNMENTAL AGENCY.
     4     (E)  COST-OF-LIVING ADJUSTMENTS.--FOR CALENDAR YEAR 2006 AND
     5  ANNUALLY THEREAFTER, THE HOUSEHOLD INCOME LIMITS UNDER THIS
     6  CHAPTER SHALL BE ADJUSTED BY 50% OF THE SOCIAL SECURITY COST-OF-
     7  LIVING ADJUSTMENT APPLICABLE DURING THE CALENDAR YEAR FOR WHICH
     8  A REBATE IS CLAIMED.
     9  SECTION 1305.  FILING OF CLAIM.
    10     (A)  GENERAL RULE.--EXCEPT AS OTHERWISE PROVIDED IN
    11  SUBSECTION (B), A CLAIM FOR PROPERTY TAX OR RENT REBATE SHALL BE
    12  FILED WITH THE DEPARTMENT ON OR BEFORE THE 30TH DAY OF JUNE OF
    13  THE YEAR NEXT SUCCEEDING THE END OF THE CALENDAR YEAR IN WHICH
    14  REAL PROPERTY TAXES OR RENT WAS DUE AND PAYABLE.
    15     (B)  EXCEPTION.--A CLAIM FILED AFTER THE JUNE 30 DEADLINE
    16  UNTIL DECEMBER 31 OF SUCH CALENDAR YEAR SHALL BE ACCEPTED BY THE
    17  SECRETARY AS LONG AS FUNDS ARE AVAILABLE TO PAY THE BENEFITS TO
    18  THE LATE FILING CLAIMANT.
    19     (C)  PAYMENTS FROM STATE LOTTERY FUND.--NO REIMBURSEMENT ON A
    20  CLAIM SHALL BE MADE FROM THE STATE LOTTERY FUND EARLIER THAN THE
    21  DAY FOLLOWING THE 30TH DAY OF JUNE PROVIDED IN THIS CHAPTER ON
    22  WHICH THAT CLAIM MAY BE FILED WITH THE DEPARTMENT.
    23     (D)  ELIGIBILITY OF CLAIMANTS.--
    24         (1)  ONLY ONE CLAIMANT FROM A HOMESTEAD EACH YEAR SHALL
    25     BE ENTITLED TO THE PROPERTY TAX OR RENT REBATE.
    26         (2)  IF TWO OR MORE PERSONS ARE ABLE TO MEET THE
    27     QUALIFICATIONS FOR A CLAIMANT, THEY MAY DETERMINE WHO THE
    28     CLAIMANT SHALL BE.
    29         (3)  IF THEY ARE UNABLE TO AGREE, THE DEPARTMENT SHALL
    30     DETERMINE TO WHOM THE REBATE IS TO BE PAID.
    20051H0039B0091                 - 76 -     

     1  SECTION 1306.  PROOF OF CLAIM.
     2     (A)  CONTENTS.--EACH CLAIM SHALL INCLUDE:
     3         (1)  REASONABLE PROOF OF HOUSEHOLD INCOME.
     4         (2)  THE SIZE AND NATURE OF THE PROPERTY CLAIMED AS A
     5     HOMESTEAD.
     6         (3)  THE RENT, TAX RECEIPT OR OTHER PROOF THAT THE REAL
     7     PROPERTY TAXES ON THE HOMESTEAD HAVE BEEN PAID OR RENT IN
     8     CONNECTION WITH THE OCCUPANCY OF A HOMESTEAD HAS BEEN PAID.
     9         (4)  IF THE CLAIMANT IS A WIDOW OR WIDOWER, A DECLARATION
    10     OF SUCH STATUS IN SUCH MANNER AS PRESCRIBED BY THE SECRETARY.
    11     (B)  PROOF OF DISABILITY.--
    12         (1)  PROOF THAT A CLAIMANT IS ELIGIBLE TO RECEIVE
    13     DISABILITY BENEFITS UNDER THE SOCIAL SECURITY ACT (49 STAT.
    14     620, 42 U.S.C. § 301 ET SEQ.) SHALL CONSTITUTE PROOF OF
    15     DISABILITY UNDER THIS CHAPTER.
    16         (2)  NO PERSON WHO HAS BEEN FOUND NOT TO BE DISABLED BY
    17     THE SOCIAL SECURITY ADMINISTRATION SHALL BE GRANTED A REBATE
    18     UNDER THIS CHAPTER.
    19         (3)  A CLAIMANT NOT COVERED UNDER THE SOCIAL SECURITY ACT
    20     SHALL BE EXAMINED BY A PHYSICIAN DESIGNATED BY THE DEPARTMENT
    21     AND SUCH STATUS DETERMINED USING THE SAME STANDARDS USED BY
    22     THE SOCIAL SECURITY ADMINISTRATION.
    23     (C)  DIRECT PAYMENT OF TAXES OR RENT NOT REQUIRED.--IT SHALL
    24  NOT BE NECESSARY THAT SUCH TAXES OR RENT WERE PAID DIRECTLY BY
    25  THE CLAIMANT IF THE RENT OR TAXES HAVE BEEN PAID WHEN THE CLAIM
    26  IS FILED.
    27     (D)  PROOF OF AGE ON FIRST CLAIM.--THE FIRST CLAIM FILED
    28  SHALL INCLUDE PROOF THAT THE CLAIMANT OR THE CLAIMANT'S SPOUSE
    29  WAS AT LEAST 65 YEARS OF AGE, OR AT LEAST 50 YEARS OF AGE IN THE
    30  CASE OF A WIDOW OR WIDOWER DURING THE CALENDAR YEAR IN WHICH
    20051H0039B0091                 - 77 -     

     1  REAL PROPERTY TAXES OR RENT WERE DUE AND PAYABLE.
     2  SECTION 1307.  INCORRECT CLAIM.
     3     WHENEVER ON AUDIT OF A CLAIM, THE DEPARTMENT FINDS THE CLAIM
     4  TO HAVE BEEN INCORRECTLY DETERMINED, IT SHALL REDETERMINE THE
     5  CORRECT AMOUNT OF THE CLAIM AND NOTIFY THE CLAIMANT OF THE
     6  REASON FOR THE REDETERMINATION AND THE AMOUNT OF THE CORRECTED
     7  CLAIM.
     8  SECTION 1308.  FUNDS FOR PAYMENT OF CLAIMS.
     9     (A)  PAYMENT.--APPROVED CLAIMS SHALL BE PAID FROM THE STATE
    10  LOTTERY FUND ESTABLISHED BY THE ACT OF AUGUST 26, 1971 (P.L.351,
    11  NO.91), KNOWN AS THE STATE LOTTERY LAW.
    12     (B)  TRANSFER.--REGARDLESS OF WHETHER AN AUTHORIZATION IS
    13  MADE UNDER SECTION 503(D), THE SECRETARY OF THE BUDGET SHALL
    14  AUTHORIZE THE TRANSFER OF FUNDS FROM THE PROPERTY TAX RELIEF
    15  FUND TO THE STATE LOTTERY FUND IN AN AMOUNT EQUAL TO THE
    16  DIFFERENCE BETWEEN THE AMOUNT OF APPROVED CLAIMS PAID IN EACH
    17  CALENDAR YEAR PRIOR TO THE YEAR IN WHICH THE CERTIFICATION IS
    18  MADE AND THE AMOUNT OF APPROVED CLAIMS PAID IN CALENDAR YEAR
    19  2005, BEGINNING WITH THE YEAR IN WHICH THE SECRETARY OF THE
    20  BUDGET FIRST CERTIFIES THAT SUFFICIENT FUNDS ARE AVAILABLE TO
    21  MAKE SUCH A TRANSFER.
    22  SECTION 1309.  CLAIM FORMS AND RULES AND REGULATIONS.
    23     NECESSARY RULES AND REGULATIONS SHALL BE PRESCRIBED BY A
    24  COMMITTEE CONSISTING OF THE SECRETARY OF AGING, THE SECRETARY OF
    25  REVENUE AND THE SECRETARY OF COMMUNITY AND ECONOMIC DEVELOPMENT.
    26  THE SECRETARY OF AGING SHALL SERVE AS THE CHAIRMAN OF THE
    27  COMMITTEE. THE DEPARTMENT SHALL RECEIVE ALL APPLICATIONS,
    28  DETERMINE THE ELIGIBILITY OF CLAIMANTS, HEAR APPEALS, DISBURSE
    29  PAYMENTS AND MAKE AVAILABLE SUITABLE FORMS FOR THE FILING OF
    30  CLAIMS.
    20051H0039B0091                 - 78 -     

     1  SECTION 1310.  FRAUDULENT CLAIMS AND CONVEYANCES TO OBTAIN
     2                 BENEFITS.
     3     (A)  CIVIL PENALTY.--IN ANY CASE IN WHICH A CLAIM IS
     4  EXCESSIVE AND WAS FILED WITH FRAUDULENT INTENT, THE CLAIM SHALL
     5  BE DISALLOWED IN FULL AND A PENALTY OF 25% OF THE AMOUNT CLAIMED
     6  SHALL BE IMPOSED. THE PENALTY AND THE AMOUNT OF THE DISALLOWED
     7  CLAIM, IF THE CLAIM HAS BEEN PAID, SHALL BEAR INTEREST AT THE
     8  RATE OF 1.5% PER MONTH FROM THE DATE OF THE CLAIM UNTIL REPAID.
     9     (B)  CRIMINAL PENALTY.--THE CLAIMANT AND ANY PERSON WHO
    10  ASSISTED IN THE PREPARATION OR FILING OF A FRAUDULENT CLAIM
    11  COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND, UPON CONVICTION
    12  THEREOF, SHALL BE SENTENCED TO PAY A FINE NOT EXCEEDING $1,000,
    13  OR TO IMPRISONMENT NOT EXCEEDING ONE YEAR, OR BOTH.
    14     (C)  DISALLOWANCE FOR RECEIPT OF TITLE.--A CLAIM SHALL BE
    15  DISALLOWED IF THE CLAIMANT RECEIVED TITLE TO THE HOMESTEAD
    16  PRIMARILY FOR THE PURPOSE OF RECEIVING PROPERTY TAX REBATE.
    17  SECTION 1311.  PETITION FOR REDETERMINATION.
    18     (A)  RIGHT TO FILE.--A CLAIMANT WHOSE CLAIM IS EITHER DENIED,
    19  CORRECTED OR OTHERWISE ADVERSELY AFFECTED BY THE DEPARTMENT MAY
    20  FILE WITH THE DEPARTMENT A PETITION FOR REDETERMINATION ON FORMS
    21  SUPPLIED BY THE DEPARTMENT WITHIN 90 DAYS AFTER THE DATE OF
    22  MAILING OF WRITTEN NOTICE BY THE DEPARTMENT OF SUCH ACTION.
    23     (B)  CONTENTS.--THE PETITION SHALL SET FORTH THE GROUNDS UPON
    24  WHICH THE CLAIMANT ALLEGES THAT SUCH DEPARTMENTAL ACTION IS
    25  ERRONEOUS OR UNLAWFUL, IN WHOLE OR PART, AND SHALL CONTAIN AN
    26  AFFIDAVIT OR AFFIRMATION THAT THE FACTS CONTAINED IN THE
    27  PETITION ARE TRUE AND CORRECT.
    28     (C)  EXTENSION OF TIME FOR FILING.--
    29         (1)  AN EXTENSION OF TIME FOR FILING THE PETITION MAY BE
    30     ALLOWED FOR CAUSE, BUT MAY NOT EXCEED 120 DAYS.
    20051H0039B0091                 - 79 -     

     1         (2)  THE DEPARTMENT SHALL HOLD SUCH HEARINGS AS MAY BE
     2     NECESSARY FOR THE PURPOSE OF REDETERMINATION, AND EACH
     3     CLAIMANT WHO HAS DULY FILED SUCH PETITION FOR REDETERMINATION
     4     SHALL BE NOTIFIED BY THE DEPARTMENT OF THE TIME WHEN, AND THE
     5     PLACE WHERE, SUCH HEARING IN THE CLAIMANT'S CASE WILL BE
     6     HELD.
     7     (D)  TIME PERIOD FOR DECISION.--THE DEPARTMENT SHALL, WITHIN
     8  SIX MONTHS AFTER RECEIVING A FILED PETITION FOR REDETERMINATION,
     9  DISPOSE OF THE MATTERS RAISED BY SUCH PETITION AND SHALL MAIL
    10  NOTICE OF THE DEPARTMENT'S DECISION TO THE CLAIMANT.
    11  SECTION 1312.  REVIEW BY BOARD OF FINANCE AND REVENUE.
    12     (A)  RIGHT TO REVIEW.--WITHIN 90 DAYS AFTER THE DATE OF
    13  OFFICIAL RECEIPT BY THE CLAIMANT OF NOTICE MAILED BY THE
    14  DEPARTMENT OF ITS DECISION ON A PETITION FOR REDETERMINATION
    15  FILED WITH IT, THE CLAIMANT WHO IS ADVERSELY AFFECTED BY THE
    16  DECISION MAY BY PETITION REQUEST THE BOARD TO REVIEW SUCH
    17  ACTION.
    18     (B)  EFFECT OF NO DECISION FROM DEPARTMENT.--THE FAILURE OF
    19  THE DEPARTMENT TO OFFICIALLY NOTIFY THE CLAIMANT OF A DECISION
    20  WITHIN THE SIX-MONTH PERIOD PROVIDED FOR BY SECTION 1311 SHALL
    21  ACT AS A DENIAL OF THE PETITION, AND A PETITION FOR REVIEW MAY
    22  BE FILED WITH THE BOARD WITHIN 120 DAYS AFTER WRITTEN NOTICE IS
    23  OFFICIALLY RECEIVED BY THE CLAIMANT THAT THE DEPARTMENT HAS
    24  FAILED TO DISPOSE OF THE PETITION WITHIN THE SIX-MONTH PERIOD.
    25     (C)  CONTENTS OF PETITION FOR REDETERMINATION.--A PETITION
    26  FOR REDETERMINATION FILED SHALL STATE THE REASONS UPON WHICH THE
    27  CLAIMANT RELIES OR SHALL INCORPORATE BY REFERENCE THE PETITION
    28  FOR REDETERMINATION IN WHICH SUCH REASONS WERE STATED. THE
    29  PETITION SHALL BE SUPPORTED BY AFFIDAVIT THAT THE FACTS SET
    30  FORTH THEREIN ARE CORRECT AND TRUE.
    20051H0039B0091                 - 80 -     

     1     (D)  TIME PERIOD FOR DECISION.--THE BOARD SHALL ACT IN
     2  DISPOSITION OF PETITIONS FILED WITH IT WITHIN SIX MONTHS AFTER
     3  THEY HAVE BEEN RECEIVED, AND IN THE EVENT OF FAILURE OF THE
     4  BOARD TO DISPOSE OF ANY PETITION WITHIN SIX MONTHS, THE ACTION
     5  TAKEN BY THE DEPARTMENT UPON THE PETITION FOR REDETERMINATION
     6  SHALL BE DEEMED SUSTAINED.
     7     (E)  RELIEF AUTHORIZED BY BOARD.--THE BOARD MAY SUSTAIN THE
     8  ACTION TAKEN BY THE DEPARTMENT ON THE PETITION FOR
     9  REDETERMINATION OR IT MAY TAKE SUCH OTHER ACTION AS IT SHALL
    10  DEEM NECESSARY AND CONSISTENT WITH PROVISIONS OF THIS CHAPTER.
    11     (F)  FORM OF NOTICE.--NOTICE OF THE ACTION OF THE BOARD SHALL
    12  BE GIVEN BY MAIL TO THE DEPARTMENT AND TO THE CLAIMANT.
    13  SECTION 1313.  APPEAL.
    14     A CLAIMANT AGGRIEVED BY A DECISION OF THE BOARD MAY APPEAL
    15  FROM THE DECISION OF THE BOARD IN THE MANNER PROVIDED BY LAW FOR
    16  APPEALS FROM DECISIONS OF THE BOARD IN TAX CASES.
    17                             CHAPTER 15
    18                    INSTALLMENT PAYMENT OF TAXES
    19  SECTION 1501.  APPLICABILITY.
    20     NOTWITHSTANDING THE ACT OF MAY 25, 1945 (P.L.1050, NO.394),
    21  KNOWN AS THE LOCAL TAX COLLECTION LAW, THIS CHAPTER SHALL
    22  AUTHORIZE SCHOOL DISTRICTS OF THE SECOND, THIRD AND FOURTH CLASS
    23  TO PROVIDE FOR THE COLLECTION OF SCHOOL REAL PROPERTY TAXES IN
    24  INSTALLMENTS FOR CERTAIN ELIGIBLE TAXPAYERS, TO ASSIGN
    25  INSTALLMENT CLAIMS AND TO INCREASE THE COMPENSATION OF TAX
    26  COLLECTORS.
    27  SECTION 1502.  INSTALLMENT PAYMENT OF SCHOOL REAL PROPERTY
    28                 TAXES.
    29     (A)  GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS OF A SCHOOL
    30  DISTRICT OF THE SECOND, THIRD OR FOURTH CLASS MAY ADOPT A
    20051H0039B0091                 - 81 -     

     1  RESOLUTION AUTHORIZING THE COLLECTION AND PAYMENT OF SCHOOL REAL
     2  PROPERTY TAXES IN INSTALLMENTS.
     3     (B)  ADOPTION OF RESOLUTION.--NO LATER THAN JUNE 30, 2006, A
     4  BOARD OF SCHOOL DIRECTORS OF A SCHOOL DISTRICT OF THE SECOND,
     5  THIRD OR FOURTH CLASS THAT DID NOT ELECT TO PARTICIPATE IN THE
     6  FORMER ACT OF JULY 5, 2004 (P.L.654, NO.72), KNOWN AS THE
     7  HOMEOWNER TAX RELIEF ACT, SHALL ADOPT A RESOLUTION AUTHORIZING
     8  THE COLLECTION AND PAYMENT OF SCHOOL REAL PROPERTY TAXES,
     9  EXCLUDING ANY INTERIM OR DELINQUENT SCHOOL PROPERTY TAXES, IN
    10  INSTALLMENTS. NO LATER THAN JUNE 30, 2007, A BOARD OF SCHOOL
    11  DIRECTORS OF A SCHOOL DISTRICT OF THE SECOND, THIRD OR FOURTH
    12  CLASS THAT DID ELECT TO PARTICIPATE IN THE FORMER HOMEOWNER TAX
    13  RELIEF ACT SHALL ADOPT A RESOLUTION AUTHORIZING THE COLLECTION
    14  AND PAYMENT OF SCHOOL REAL PROPERTY TAXES, EXCLUDING ANY INTERIM
    15  OR DELINQUENT SCHOOL PROPERTY TAXES, IN INSTALLMENTS.
    16     (C)  CONTENTS OF RESOLUTION.--THE RESOLUTION ADOPTED PURSUANT
    17  TO SUBSECTION (B) SHALL SET FORTH ALL OF THE FOLLOWING:
    18         (1)  THE IDENTIFICATION OF TAXPAYERS ELIGIBLE TO PAY
    19     SCHOOL REAL PROPERTY TAXES IN INSTALLMENTS AS TAXPAYERS WITH
    20     HOMESTEAD OR FARMSTEAD PROPERTY APPROVED PURSUANT TO SECTION
    21     341.
    22         (2)  THE PROCESS THROUGH WHICH AN ELIGIBLE TAXPAYER MAY
    23     CHOOSE TO PAY SCHOOL REAL PROPERTY TAXES IN INSTALLMENTS. THE
    24     PROCESS SHALL INDICATE THAT:
    25             (I)  THE PAYMENT OF THE FIRST INSTALLMENT BY A
    26         TAXPAYER BEFORE IT BECOMES DELINQUENT SHALL CONCLUSIVELY
    27         EVIDENCE AN INTENTION TO PAY SCHOOL REAL PROPERTY TAXES
    28         IN INSTALLMENTS.
    29             (II)  WHERE A TAXPAYER FAILS TO EVIDENCE AN INTENTION
    30         TO PAY SCHOOL REAL PROPERTY TAXES IN INSTALLMENTS, THE
    20051H0039B0091                 - 82 -     

     1         SCHOOL REAL PROPERTY TAXES SHALL BECOME DUE AND PAYABLE
     2         AND BE COLLECTED AS PROVIDED IN THE ACT OF MAY 25, 1945
     3         (P.L.1050, NO.394), KNOWN AS THE LOCAL TAX COLLECTION
     4         LAW, SUBJECT TO THE DISCOUNTS AND PENALTIES PROVIDED BY
     5         THAT ACT.
     6         (3)  THE NUMBER OF INSTALLMENTS THAT AN ELIGIBLE TAXPAYER
     7     SHALL BE REQUIRED TO PAY OF SCHOOL REAL PROPERTY TAXES, WHICH
     8     SHALL BE NO MORE THAN MONTHLY OR NO LESS THAN THREE TIMES
     9     DURING THE MONTHS PRIOR TO THE DATE ESTABLISHED BY THE COUNTY
    10     IN WHICH THE SCHOOL DISTRICT IS LOCATED FOR THE TURNOVER OF
    11     DELINQUENT TAXES PURSUANT TO THE ACT OF JULY 7, 1947
    12     (P.L.1368, NO.542), KNOWN AS THE REAL ESTATE TAX SALE LAW.
    13         (4)  THE DATES ON WHICH INSTALLMENT PAYMENTS OF SCHOOL
    14     REAL PROPERTY TAXES ARE DUE OR DELINQUENT. NOTWITHSTANDING
    15     THE COMPLETE AND FINAL SETTLEMENT MADE IN ACCORDANCE WITH
    16     SECTION 26 OF THE LOCAL TAX COLLECTION LAW, A BOARD OF SCHOOL
    17     DIRECTORS MAY SET INSTALLMENT PAYMENT DATES SUBSEQUENT TO
    18     DECEMBER 31. THE UNPAID INSTALLMENTS SHALL NOT BE CONSIDERED
    19     DELINQUENT IF PAID ON OR BEFORE THE RESPECTIVE INSTALLMENT
    20     DATES. TO EACH INSTALLMENT ON THE DATE WHEN IT BECOMES
    21     DELINQUENT, A PENALTY OF UP TO 10% SHALL BE ADDED, WHICH
    22     SHALL BE COLLECTED BY THE TAX COLLECTOR. NO FURTHER
    23     PENALTIES, EXCEPT AS PROVIDED IN THIS CHAPTER, SHALL BE ADDED
    24     TO ANY INSTALLMENT OF TAXES, UNLESS ONE OR MORE INSTALLMENTS
    25     REMAIN UNPAID, AND THE LANDS UPON WHICH SUCH INSTALLMENTS ARE
    26     DUE ARE RETURNED UNDER THE EXISTING LAWS TO THE COUNTY
    27     COMMISSIONERS FOR NONPAYMENT OF TAXES, OR IN CASE A LIEN FOR
    28     SUCH UNPAID INSTALLMENT OR INSTALLMENTS IS FILED UNDER
    29     EXISTING LAWS IN THE OFFICE OF THE PROTHONOTARY, IN WHICH
    30     CASE, THE ADDITIONAL PENALTY OR INTEREST PROVIDED FOR BY THE
    20051H0039B0091                 - 83 -     

     1     EXISTING RETURN AND LIEN LAWS SHALL APPLY. A TAXPAYER WHO IS
     2     DELINQUENT ON ANY INSTALLMENT PAYMENT SHALL BE INELIGIBLE FOR
     3     THE INSTALLMENT PAYMENT OPTION IN THE FOLLOWING SCHOOL FISCAL
     4     YEAR.
     5  SECTION 1503.  COLLECTION OF INSTALLMENT PAYMENTS OF SCHOOL REAL
     6                 PROPERTY TAXES.
     7     (A)  CONTRACT.--
     8         (1)  A SCHOOL DISTRICT MAY CONTRACT WITH A TAX BUREAU
     9     INDEPENDENT OF THE SCHOOL DISTRICT FOR COLLECTION OF
    10     INSTALLMENTS UNDER THIS SECTION. A TAX BUREAU MAY CONTRACT
    11     WITH MORE THAN ONE TAX COLLECTOR. THE TAX COLLECTOR SHALL BE
    12     PAID SUCH COMMISSIONS OR COMPENSATION AT THE SAME RATE ON
    13     INSTALLMENT PAYMENTS AS IS PAID FOR THE COLLECTION OF TAXES
    14     GENERALLY. SUCH COMMISSIONS OR COMPENSATION SHALL BE PAID BY
    15     PROPER ORDERS DRAWN ON THE SCHOOL DISTRICT. EVERY TAX
    16     COLLECTOR SHALL BE RESPONSIBLE AND ACCOUNTABLE TO THE SCHOOL
    17     DISTRICT FOR ALL SUCH TAXES COLLECTED BY THE TAX COLLECTOR,
    18     AND THE FINAL ACCOUNTS AND RECORDS, RETURNS AND PAYMENTS AND
    19     DUPLICATES SHALL BE AUDITED ANNUALLY IN THE YEAR IN WHICH THE
    20     INSTALLMENTS ARE COLLECTED IN LIKE MANNER AND IN ACCORDANCE
    21     WITH THE LAWS PERTAINING TO TAX COLLECTIONS.
    22         (2)  NOTHING IN THIS ACT SHOULD BE CONSTRUED TO ALTER ANY
    23     EXISTING TAX COLLECTION ARRANGEMENT UNLESS DEEMED APPROPRIATE
    24     BY THE SCHOOL DISTRICT OR AS OTHERWISE PROVIDED FOR UNDER
    25     THIS SECTION.
    26     (B)  AUTHORIZATION.--A BOARD OF SCHOOL DIRECTORS MAY
    27  AUTHORIZE THE COLLECTION OF INSTALLMENT PAYMENTS:
    28         (1)  THROUGH ELECTRONIC FUND TRANSFERS THROUGH THE
    29     FEDERAL RESERVE BANK'S AUTOMATED CLEARING HOUSE. ELECTRONIC
    30     FUND TRANSFERS SHALL BE A DEBIT TO THE TAXPAYER'S ACCOUNT TO
    20051H0039B0091                 - 84 -     

     1     THE SCHOOL DISTRICT'S DEPOSITORY BANK ACCOUNT AT THE OPTION
     2     OF THE TAXPAYER.
     3         (2)  BY A CREDIT CARD PAYMENT WHICH SHALL BE MADE THROUGH
     4     THE SCHOOL DISTRICT'S DEPOSITORY BANK OR ANOTHER BANK
     5     DESIGNATED BY THE BOARD OF SCHOOL DIRECTORS. THE BOARD OF
     6     SCHOOL DIRECTORS SHALL ALSO DESIGNATE THE CREDIT CARD TYPE
     7     THAT MAY BE UTILIZED FOR INSTALLMENT PAYMENT COLLECTION.
     8  SECTION 1504.  ASSIGNMENT OF INSTALLMENT CLAIMS.
     9     (A)  INITIAL ASSIGNMENT.--A TAXING DISTRICT MAY ASSIGN SOME
    10  OR ALL OF ITS INSTALLMENT CLAIMS, EITHER ABSOLUTELY OR AS
    11  COLLATERAL SECURITY, FOR AN AMOUNT TO BE DETERMINED BY THE
    12  TAXING DISTRICT AND UNDER SUCH TERMS AND CONDITIONS UPON WHICH
    13  THE TAXING DISTRICT AND THE ASSIGNEE SHALL AGREE IN WRITING AND
    14  SHALL BE APPROVED BY RESOLUTION OF THE TAXING DISTRICT. AN
    15  INSTALLMENT CLAIM MAY BE ASSIGNED WHETHER OR NOT ANY INSTALLMENT
    16  THEREUNDER HAS BECOME DELINQUENT. UPON SUCH AN ASSIGNMENT, THE
    17  FOLLOWING SHALL APPLY:
    18         (1)  ASSIGNMENT SHALL NOT BE DEEMED A DISCHARGE OR
    19     SATISFACTION OF THE INSTALLMENT CLAIM OR THE TAXES GIVING
    20     RISE TO THE INSTALLMENT CLAIM AND ANY LIEN OF THE ASSIGNED
    21     INSTALLMENT CLAIM AND TAXES GIVING RISE TO THE INSTALLMENT
    22     CLAIM SHALL CONTINUE IN FAVOR OF THE ASSIGNEE.
    23         (2)  THE ASSIGNEE SHALL HAVE AND ENJOY THE SAME RIGHTS,
    24     PRIVILEGES AND REMEDIES AS WERE HELD BY THE TAXING DISTRICT
    25     WITH RESPECT TO THE ASSIGNED INSTALLMENT CLAIM AND THE TAX
    26     GIVING RISE TO THE CLAIM UNDER THE PROVISIONS OF THE ACT OF
    27     MAY 25, 1945 (P.L.1050, NO.394), KNOWN AS THE LOCAL TAX
    28     COLLECTION LAW, OR ANY OTHER LAWS APPLICABLE TO THE
    29     COLLECTION AND ENFORCEMENT OF TAX CLAIMS.
    30         (3)  AN ASSIGNMENT OF AN INSTALLMENT CLAIM UNDER THIS
    20051H0039B0091                 - 85 -     

     1     SECTION SHALL BE DEEMED, UNLESS OTHERWISE PROVIDED IN
     2     WRITING, AN ASSIGNMENT OF APPLICABLE CLAIMS AND LIENS ARISING
     3     WITH RESPECT TO SUCH INSTALLMENT CLAIM UNDER SECTION 33 OF
     4     THE ACT OF MAY 16, 1923 (P.L.207, NO.153), REFERRED TO AS THE
     5     MUNICIPAL CLAIM AND TAX LIEN LAW, AND SECTION 316 OF THE ACT
     6     OF JULY 7, 1947 (P.L.1368, NO.542), KNOWN AS THE REAL ESTATE
     7     TAX SALE LAW.
     8         (4)  IF THE INSTRUMENT OF ASSIGNMENT SO PROVIDES AND
     9     CONTAINS OR PROVIDES FOR THE DELIVERY OF AN EXTRACT FROM THE
    10     DUPLICATE OF THE INFORMATION PERTAINING TO THE ASSIGNED
    11     INSTALLMENT CLAIMS, THE ASSIGNEE EXCLUSIVELY SHALL HAVE THE
    12     RIGHTS AND DUTIES OF THE TAX COLLECTOR UNDER THE LOCAL TAX
    13     COLLECTION LAW WITH RESPECT TO THE ASSIGNED INSTALLMENT
    14     CLAIMS AND SHALL BE DEEMED TO BE ACTING PURSUANT TO THE
    15     WARRANT PROVIDED IN SECTION 5 OF THE LOCAL TAX COLLECTION
    16     LAW; PROVIDED, THAT THE ASSIGNEE SHALL NOT BE ENTITLED TO ANY
    17     COMMISSION OR SALARY IN SUCH CAPACITY AND SHALL NOT BE
    18     SUBJECT TO SECTIONS 4 AND 16 OF THE LOCAL TAX COLLECTION LAW.
    19         (5)  AN OWNER OF PROPERTY SHALL HAVE THE SAME RIGHTS AND
    20     DEFENSES UNDER THIS ACT AND ANY OTHER LAW APPLICABLE TO THE
    21     COLLECTION AND ENFORCEMENT OF TAX CLAIMS THAT THE OWNER HELD
    22     AGAINST THE ASSIGNOR.
    23         (6)  REFERENCES IN THE LOCAL TAX COLLECTION LAW TO A
    24     TAXING DISTRICT WITH RESPECT TO AN INSTALLMENT CLAIM SHALL BE
    25     DEEMED TO BE REFERENCES TO THE ASSIGNEE OF THE TAXING
    26     DISTRICT WITH RESPECT TO ASSIGNED INSTALLMENT CLAIMS EXCEPT
    27     FOR REFERENCES TO ANY ACTIONS TAKEN BY THE TAXING DISTRICT
    28     BEFORE THE ASSIGNMENT.
    29     (B)  FURTHER ASSIGNMENT.--AN INSTALLMENT CLAIM ASSIGNED
    30  PURSUANT TO THIS SECTION MAY BE FURTHER ASSIGNED, WITH THE
    20051H0039B0091                 - 86 -     

     1  SUBSEQUENT ASSIGNEE HAVING AND ENJOYING THE SAME RIGHTS,
     2  PRIVILEGES AND REMEDIES AS ITS ASSIGNOR.
     3  SECTION 1505.  CONSIDERING INCREASE IN COMPENSATION OF TAX
     4                 COLLECTOR.
     5     (A)  REQUEST.--WITHIN 15 DAYS OF A BOARD OF SCHOOL DIRECTORS'
     6  ADOPTION OF A RESOLUTION UNDER SECTION 1502, THE TAX COLLECTOR
     7  IN THE SCHOOL DISTRICT MAY, BY SENDING A CERTIFIED LETTER,
     8  REQUEST THAT THE SCHOOL DISTRICT CONSIDER INCREASING THE
     9  COMPENSATION OF THE TAX COLLECTOR TO ACCOUNT FOR ANY INCREASED
    10  ADMINISTRATIVE COSTS INCURRED BY THE TAX COLLECTOR. WITHIN 45
    11  DAYS OF RECEIVING SUCH LETTER, THE SCHOOL DISTRICT SHALL
    12  CONSIDER THE REQUEST.
    13     (B)  PERMISSION.--WITHIN 15 DAYS OF A BOARD OF SCHOOL
    14  DIRECTORS' ADOPTION OF A RESOLUTION UNDER SECTION 1502, THE
    15  SCHOOL DISTRICT MAY, BY SENDING A CERTIFIED LETTER, INFORM THE
    16  TAX COLLECTOR THAT TAX COLLECTOR COMPENSATION MAY BE ADJUSTED
    17  FOR INSTALLMENTS UNTIL JANUARY 31, 2009. WITHIN 45 DAYS OF
    18  SENDING THE LETTER, THE SCHOOL DISTRICT SHALL CONSIDER ANY
    19  ADJUSTMENT.
    20                             CHAPTER 50
    21                      MISCELLANEOUS PROVISIONS
    22  SECTION 5001.  OTHER SUBJECTS OF TAXATION.
    23     NO SCHOOL DISTRICT WHICH HAS NOT ALREADY MADE AN ELECTION TO
    24  ADOPT THE PROVISIONS OF 53 PA.C.S. CH. 87 (RELATING TO OTHER
    25  SUBJECTS OF TAXATION) MAY MAKE AN ELECTION TO DO SO AFTER THE
    26  EFFECTIVE DATE OF THIS SECTION.
    27  SECTION 5002.  APPROPRIATIONS.
    28     THE SUM OF $3,000,000, OR AS MUCH THEREOF AS MAY BE
    29  NECESSARY, IS HEREBY APPROPRIATED FROM THE PROPERTY TAX RELIEF
    30  RESERVE FUND TO THE DEPARTMENT OF COMMUNITY AND ECONOMIC
    20051H0039B0091                 - 87 -     

     1  DEVELOPMENT FOR THE PURPOSE OF MAKING ONE-TIME TRANSITION GRANTS
     2  TO COUNTIES, OTHER THAN COUNTIES OF THE FIRST CLASS, FOR COSTS
     3  ASSOCIATED WITH IMPLEMENTING THE TAXPAYER RELIEF ACT. GRANTS
     4  SHALL BE MADE PURSUANT TO GUIDELINES ADOPTED BY THE DEPARTMENT
     5  AND SHALL BE LIMITED TO FUNDS APPROPRIATED FOR THIS PURPOSE. THE
     6  DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL NOT DRAW
     7  A WARRANT UPON THE STATE TREASURER FOR A DISBURSEMENT FROM THIS
     8  APPROPRIATION UNTIL THE STATE TREASURER CERTIFIES THAT THE
     9  PROPERTY TAX RELIEF RESERVE FUND HAS AT LEAST A $3,000,000
    10  BALANCE.
    11  SECTION 5003.  PROHIBITION.
    12     A SCHOOL DISTRICT THAT HAS AUTHORIZED THE LEVY OF A 0.1%
    13  EARNED INCOME AND NET PROFITS TAX, BY RESOLUTION OR REFERENDUM,
    14  UNDER THE FORMER ACT OF JULY 5, 2004 (P.L.654, NO.72), KNOWN AS
    15  THE HOMEOWNER TAX RELIEF ACT, IS PROHIBITED FROM LEVYING,
    16  ASSESSING OR COLLECTING THE TAX.
    17  SECTION 5004.  AUTHORITY TO LEVY, ASSESS AND COLLECT TAXES.
    18     THE FOLLOWING SHALL APPLY:
    19         (1)  EXCEPT AS PROVIDED IN PARAGRAPH (2), THE AUTHORITY
    20     OF ANY INDEPENDENT SCHOOL DISTRICT TO LEVY, ASSESS AND
    21     COLLECT ANY TAX UNDER THE ACT OF DECEMBER 31, 1965 (P.L.1257,
    22     NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, SHALL EXPIRE AT
    23     MIDNIGHT ON DECEMBER 31, 2011.
    24         (2)  THE PROVISIONS OF PARAGRAPH (1) SHALL NOT PREVENT OR
    25     INTERFERE WITH ANY ACTION OF ANY INDEPENDENT SCHOOL DISTRICT
    26     TO COLLECT ANY TAX IMPOSED UNDER THE AUTHORITY OF THE LOCAL
    27     TAX ENABLING ACT THAT IS LEVIED AND ASSESSED PRIOR TO JANUARY
    28     1, 2012.
    29  SECTION 5005.  REPEALS.
    30     REPEALS ARE AS FOLLOWS:
    20051H0039B0091                 - 88 -     

     1         (1)  SECTION 9 OF THE ACT OF DECEMBER 31, 1965 (P.L.1257,
     2     NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT, IS REPEALED.
     3         (2)  THE GENERAL ASSEMBLY DECLARES THAT THE REPEALS UNDER
     4     PARAGRAPHS (2), (3), (4), (5) AND (6) ARE NECESSARY TO
     5     EFFECTUATE THIS ACT.
     6         (3)  THE ACT OF MARCH 11, 1971 (P.L.104, NO.3), KNOWN AS
     7     THE SENIOR CITIZENS REBATE AND ASSISTANCE ACT, IS REPEALED.
     8         (4)  THE ACT OF JULY 5, 2004 (P.L.654, NO.72), KNOWN AS
     9     THE HOMEOWNER TAX RELIEF ACT, IS REPEALED.
    10         (5)  53 PA.C.S. CH.89, SUBCH. B IS REPEALED.
    11         (6)  ANY ACT THAT PROVIDES FOR A REGISTER OF MUNICIPAL
    12     AND SCHOOL DISTRICT WITHHOLDING TAXES IS REPEALED INSOFAR AS
    13     IT IS INCONSISTENT WITH THE PROVISIONS OF SECTION 351.
    14  SECTION 5006.  CONTINUATION.
    15     THE ADDITION OF CHAPTER 13 IS A CONTINUATION OF THE FORMER
    16  ACT OF MARCH 11, 1971 (P.L.104, NO.3), KNOWN AS THE SENIOR
    17  CITIZENS REBATE AND ASSISTANCE ACT. EXCEPT AS OTHERWISE PROVIDED
    18  IN CHAPTER 13, ALL ACTIVITIES INITIATED UNDER THE FORMER SENIOR
    19  CITIZENS REBATE AND ASSISTANCE ACT SHALL CONTINUE AND REMAIN IN
    20  FULL FORCE AND EFFECT AND MAY BE COMPLETED UNDER CHAPTER 13.
    21  ORDERS, REGULATIONS, RULES AND DECISIONS WHICH WERE MADE UNDER
    22  THE FORMER SENIOR CITIZENS REBATE AND ASSISTANCE ACT AND WHICH
    23  ARE IN EFFECT ON THE EFFECTIVE DATE OF SECTION 5005(2) SHALL
    24  REMAIN IN FULL FORCE AND EFFECT UNTIL REVOKED, VACATED OR
    25  MODIFIED UNDER CHAPTER 13.
    26  SECTION 5007.  EFFECTIVE DATE.
    27     THIS ACT SHALL TAKE EFFECT IMMEDIATELY.


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