1Authorizing school districts of the first class coterminous with
2cities of the first class to enact local cigarette taxes; and
3establishing the Local Cigarette Tax Fund.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Short title.

7This act shall be known and may be cited as the Local
8Cigarette Tax Act.

9Section 2. Definitions.

10(a) General rule.--The following words and phrases when used
11in this act shall have the meanings given to them in this
12section unless the context clearly indicates otherwise:

13"Fund." The Local Cigarette Tax Fund established by this

15"School district." A school district of the first class
16coterminous with a city of the first class.

17"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
18known as the Tax Reform Code of 1971.

1(b) Specific definitions.--The definitions in Article XII of
2the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
3Code of 1971, shall apply to this act.

4Section 3. Local cigarette tax.

5(a) Authorization.--

6(1) A school district may, if authorized by ordinance of
7the governing body of a city of the first class, impose and
8assess an excise tax upon the sale or possession of
9cigarettes within the school district at the rate of 10¢ per
10cigarette. Only one sale shall be taxable and used in
11computing the amount of tax due, whether the sale is of
12individual cigarettes, packages, cartons or cases.

13(2) The governing body of the city of the first class
14and school district may amend, respectively, the ordinance
15authorizing the imposition of the tax and the resolution
16imposing the tax authorized by this act to reflect the
17provisions of this act in the fiscal year in which this
18section takes effect.

19(b) Exception.--The tax authorized under subsection (a) may
20not be levied upon the possession or sale of any cigarette that
21is exempt from, or which is otherwise not subject to, levy under
22Article XII of the Tax Reform Code and the regulations
23promulgated under that article.

24(c) Collection.--

25(1) The tax authorized under subsection (a) shall be
26collected and remitted to the department in the same manner
27as the tax imposed under Article XII of the Tax Reform Code.
28The rules and regulations promulgated under section 1291 of
29the Tax Reform Code shall be applicable to the tax authorized
30under subsection (a) insofar as the rules and regulations are

1consistent with this act.

2(2) Unless the department promulgates regulations to the
3contrary pursuant to section 4, any stamp affixed pursuant to
4section 1215 of the Tax Reform Code shall also reflect
5payment of any tax authorized under this act.

6(3) The provisions of section 1216 of the Tax Reform
7Code shall not apply to any tax authorized under this act.

8Section 4. Administration.

9(a) General rule.--The Department of Revenue shall
10administer and enforce the provisions of this act and may
11promulgate and enforce any rules and regulations not
12inconsistent with the provisions of this act.

13(b) Reimbursement of costs.--From the tax collected under
14this act, the Department of Revenue may retain a sum not to
15exceed the costs of collection and shall, on a monthly basis,
16notify in writing the school district imposing the tax of the
17sum retained and the costs of collection under this act.
18Annually, the Department of Revenue shall estimate its cost of
19collection under this act for the next succeeding fiscal year
20and shall provide the estimate to the school district.

21Section 5. Certified copy of ordinance to Department of

23(a) General rule.--A school district that adopts a

25(1) To impose the tax authorized under this act or to
26change the rate of the tax shall provide a certified copy of
27the resolution to the Department of Revenue not later than 90
28days prior to the effective date of the tax or change to the

30(2) To repeal the tax authorized under this act shall

1provide a certified copy of the resolution to the Department
2of Revenue not later than 30 days prior to the effective date
3of the repeal.

4(b) Effective date.--The effective date of any tax
5authorized under this act or change to the tax must occur on the
6first calendar day of a calendar year.

7Section 6. Local Cigarette Tax Fund.

8(a) Local Cigarette Tax Fund.--

9(1) The Local Cigarette Tax Fund is established in the
10State Treasury and the State Treasurer shall be custodian of
11the fund. The fund shall be subject to the provisions of law
12applicable to funds listed in section 302 of the act of April
139, 1929 (P.L.343, No.176), known as The Fiscal Code.

14(2) The tax imposed pursuant to section 3 shall be
15received by the Department of Revenue and paid to the State
16Treasurer and, along with interest and penalties, less any
17collection costs allowed under this act and any refunds and
18credits paid, shall be credited to the fund not less
19frequently than every two weeks. During any period prior to
20the credit of moneys to the fund, interest earned on moneys
21received by the Department of Revenue and paid to the State
22Treasurer pursuant to this chapter shall be deposited into
23the fund.

24(3) Moneys credited to the fund shall be at all times
25property of the school district and shall be distributed as
26provided in this section. All moneys in the fund, including,
27but not limited to, moneys credited to the fund pursuant to
28this section, prior year encumbrances and the interest earned
29thereon, shall not lapse or be transferred to any other fund,
30but shall remain in the fund and must be used exclusively as

1provided in this section.

2(4) Pending their disbursement to the school district,
3moneys received on behalf of or deposited into the fund shall
4be invested or reinvested as are other funds in the custody
5of the State Treasurer in the manner provided by law. All
6earnings received from the investment or deposit of such
7funds shall be credited to the fund.

8(b) Disbursement to school district.--On or before the 10th
9day of every month, the State Treasurer shall disburse to the
10school district imposing the tax under this act the total amount
11of moneys which are, as of the last day of the previous month,
12contained in the fund.

13Section 7. Effective date.

14This act shall take effect in 60 days.