Regular Session 2017-2018 House Bill 0403 P.N. 0415

PRINTER'S NO. 415

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

403

Session of

2017

INTRODUCED BY GROVE, KAUFFMAN, RAPP, O'NEILL, SANKEY, BARRAR AND

HELM, FEBRUARY 8, 2017

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 8, 2017

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in other subjects of taxation,

repealing provisions regarding local option cigarette tax in

school districts of the first class.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 8722 of Title 53 of the Pennsylvania

Consolidated Statutes is repealed:

[§ 8722. Local option cigarette tax in school districts of the

first class.

(a) Authorization.--The following shall apply:

(1) A school district may, if authorized by ordinance of

the governing body of a city of the first class adopted prior

to or after the effective date of this section, impose and

assess an excise tax upon the sale or possession of

cigarettes within the school district at a rate of 10¢ per

cigarette. Only one sale shall be taxable and used in

computing the amount of tax due, whether the sale is of

individual cigarettes, packages, cartons or cases.

(2) The governing body of the city of the first class

and school district may amend, respectively, the ordinance

authorizing the imposition of the tax and the resolution

imposing the tax authorized by this section to reflect the

provisions of this section in the fiscal year in which this

section takes effect.

(b) Exception.--The tax authorized under subsection (a) may

not be levied upon the possession or sale of any cigarette that

is exempt from, or which is otherwise not subject to, levy under

Article XII of the Tax Reform Code and the regulations

promulgated under that article.

(1) The tax authorized under subsection (a) shall be

collected and remitted to the department in the same manner

as the tax imposed under Article XII of the Tax Reform Code.

The regulations promulgated under section 1291 of the Tax

Reform Code shall be applicable to the tax authorized under

subsection (a) insofar as the regulations are consistent with

this section.

(2) Unless the department promulgates regulations to the

contrary under subsection (d), any stamp affixed under

section 1215 of the Tax Reform Code shall also reflect

payment of any tax authorized under this section.

(3) The provisions of section 1216 of the Tax Reform

Code shall not apply to any tax authorized under this

section.

(d) Administration.--The department shall administer and

enforce the provisions of this section and may promulgate and

enforce any rules and regulations not inconsistent with the

provisions of this section.

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(e) Reimbursement of costs.--From the tax collected under

this section, the department may retain a sum of the costs of

collection and shall, on a monthly basis, notify in writing the

school district imposing the tax of the sum retained and the

costs of collection under this section. Annually, the department

shall estimate its cost of collection under this section for the

next succeeding fiscal year and shall provide the estimate to

the school district.

(f) Certified copy of resolution to department.--A school

district that adopts a resolution:

(1) To impose the tax authorized under this section or

to change the rate of the tax shall provide a certified copy

of the resolution to the department not later than 20 days

prior to the effective date of the tax or change to the tax.

(2) To repeal the tax authorized under this section

shall provide a certified copy of the resolution to the

department not later than 30 days prior to the effective date

of the repeal.

(g) Effective date.--The effective date of any tax

authorized under this section or change to the tax shall be no

earlier than 30 days after the adoption of the resolution or

ordinance.

(h) Local Cigarette Tax Fund.--

(1) The Local Cigarette Tax Fund is established in the

State Treasury and the State Treasurer shall be custodian of

the fund. The fund shall be subject to the provisions of law

applicable to funds listed in section 302 of the act of April

9, 1929 (P.L.343, No.176), known as The Fiscal Code.

(2) The tax imposed under subsection (a) shall be

received by the department and paid to the State Treasurer

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and, along with interest and penalties, less any collection

costs allowed under this section and any refunds and credits

paid, shall be credited to the fund not less frequently than

every two weeks. During any period prior to the credit of

moneys to the fund, interest earned on moneys received by the

department and paid to the State Treasurer under this section

shall be deposited into the fund.

(3) Moneys credited to the fund shall be property of the

school district and shall be distributed as provided in this

section. The money in the fund, including, but not limited

to, money credited to the fund under this section, prior year

encumbrances and the interest earned thereon, shall not lapse

or be transferred to any other fund, but shall remain in the

fund and must be used exclusively as provided in this

section.

(4) Pending their disbursement to the school district,

moneys received on behalf of or deposited into the fund shall

be invested or reinvested as are other funds in the custody

of the State Treasurer in the manner provided by law. The

earnings received from the investment or deposit of the funds

shall be credited to the fund.

(i) Disbursement to school district.--On or before the 10th

day of every month, the State Treasurer shall disburse to the

school district imposing the tax under this section the total

amount of moneys which are, as of the last day of the previous

month, contained in the fund.

(j) Prohibition.--Money from a tax imposed under this

section may not be used for the issuance or repayment of bonds.

(l) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

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subsection unless the context clearly indicates otherwise:

"Cigarette." As defined in section 1201 of the Tax Reform

Code.

"Department." The Department of Revenue of the Commonwealth.

"Fund." The Local Cigarette Tax Fund established under this

section.

"Sale." As defined in section 1201 of the Tax Reform Code.

"School district." A school district of the first class

coterminous with a city of the first class.

"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),

known as the Tax Reform Code of 1971.]

Section 2. This act shall take effect in 60 days.

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