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PRIOR PRINTER'S NO. 308
PRINTER'S NO. 883
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
330
Session of
2019
INTRODUCED BY EMRICK, BERNSTINE, HAHN, KEEFER, MACKENZIE,
MENTZER, MILLARD, RYAN, SAYLOR, TOOHIL, ZIMMERMAN AND
STRUZZI, FEBRUARY 1, 2019
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, MARCH 13, 2019
AN ACT
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," repealing provisions relating to
local tax study commission; and making editorial changes to
incorrect references.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "domicile," "earned income"
and "net profits" in section 302 of the act of June 27, 2006
(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
Act, are amended to read:
Section 302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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* * *
"Domicile." As defined in section [13] 501 of the act of
December 31, 1965 (P.L.1257, No.511), known as The Local Tax
Enabling Act.
"Earned income." As defined in section [13] 501 of the act
of December 31, 1965 (P.L.1257, No.511), known as The Local Tax
Enabling Act.
* * *
"Net profits." As defined in section [13] 501 of the act of
December 31, 1965 (P.L.1257, No.511), known as The Local Tax
Enabling Act.
* * *
Section 2. Sections 304(a), 322(a), 323(a) and, 326(1),
331.2(B), 332(B)(1), 334(C)(2) AND 5005(2) of the act are
amended to read:
Section 304. Certain rates of taxation limited.
(a) Municipal rates.--If a municipality and school district
both impose an earned income and net profits tax on the same
individual under the Local Tax Enabling Act and are limited to
or have agreed upon a division of the tax rate in accordance
with section [8] 311 of the Local Tax Enabling Act, the
municipality shall remain subject to that limitation or
agreement in the event that the school district opts to impose
or increase an earned income and net profits tax authorized
under section 321(b) or a personal income tax authorized under
section 321(c). Nothing in this chapter shall be construed to
authorize a municipality to raise the rate of earned income and
net profits tax above the rate it levied under the previously
agreed upon division if a school district imposes or increases a
personal income tax under Subchapter C.
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* * *
Section 322. Collections.
(a) Designation of tax collector.--A board of school
directors imposing an income tax under this chapter shall
designate a tax officer under section [10] 313 of the Local Tax
Enabling Act, or otherwise by law, as the collector of the tax.
In the performance of the tax collection duties under this
subchapter, the designated tax officer shall have all the same
powers, rights, responsibilities and duties for the collection
of the taxes which may be imposed under the Local Tax Enabling
Act, 53 Pa.C.S. Ch. 84 Subch. C (relating to local taxpayers
bill of rights) or as otherwise provided by law.
* * *
Section 323. Credits.
(a) Credit.--Except as set forth in subsection (b), the
provisions of section [14] 317 of the Local Tax Enabling Act
shall be applied by a board of school directors to determine any
credits applicable to a tax imposed under section 321(b) or (c).
* * *
Section 326. Regulations.
A school district that imposes:
(1) an earned income and net profits tax authorized
under section 321(b) shall be subject to [section 13] Chapter
5 of the Local Tax Enabling Act and may adopt procedures for
the processing of claims for credits or exemptions under
sections 323, 324 and 325; or
* * *
Section 3. Section 331 of the act is repealed:
[Section 331. Local tax study commission.
(a) Appointment.--A board of school directors shall appoint
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a local tax study commission prior to adopting a resolution
under section 331.2(b) or 332(b)(1). The local tax study
commission shall be appointed no later than 180 days prior to
the date on which the board of school directors is required to
adopt a resolution under section 331.2(b) or 332(b)(1).
(b) Membership.--The local tax study commission shall
consist of five, seven or nine members who are resident
individuals or taxpayers of the school district and shall
reflect the socioeconomic, age and occupational diversity of the
school district to the extent possible, except that one member
of the local tax study commission may be a member of the board
of school directors and no member shall be an official or
employee or a relative thereof of the school district.
(c) Staff and expenses.--The school district shall provide
necessary and reasonable support staff and shall reimburse the
members of the local tax study commission for necessary and
reasonable expenses in the discharge of their duties. Receipts
shall be required for all reimbursable expenses under this
subsection.
(d) Contents of study.--The local tax study commission shall
study the existing taxes levied, assessed and collected by the
school district and the effect of any county or municipal taxes
imposed concurrently with the school district. The local tax
study commission shall determine how the tax policies of the
school district could be improved by the levy, assessment and
collection of the taxes authorized under section 321. The study
shall include consideration of all of the following:
(1) Historic and present rates of and revenue from taxes
currently levied, assessed and collected.
(2) The percentage of total revenues provided by taxes
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currently levied, assessed and collected.
(3) The age, income, employment and property use
characteristics of the existing tax base.
(4) Projected revenues of taxes currently levied,
assessed and collected, including taxes authorized and taxes
not levied under this chapter.
(e) Recommendation.--Within 90 days of its appointment, the
local tax study commission shall make a nonbinding
recommendation to the board of school directors regarding the
imposition of the taxes authorized under section 321, commencing
in the subsequent fiscal year. Prior to making its
recommendation, the local tax study commission shall hold at
least one public hearing. The recommendation of the local tax
study commission shall be presented at a public meeting of the
board of school directors. The board of school directors shall
make such recommendation available to interested persons upon
request.
(f) Failure to issue a recommendation.--If the local tax
study commission fails to make a recommendation under subsection
(e), the board of school directors shall discharge the local tax
study commission.
(g) Adoption of recommendation.--The board of school
directors shall accept or reject the recommendation of the local
tax study commission prior to adopting a resolution under
section 331.2(b) or section 332(b)(1).
(h) Materials.--All records of the local tax study
commission, including receipts, tapes, minutes of meetings and
written communications, for public inspection during the regular
business hours of the school district.]
Section 4 3. Sections 331.2(b), 332(b)(1), 334(c)(2) and
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5005(2) of the act are amended to read:
Section 331.2. 2007 referendum.
* * *
(b) Adoption of resolution.--No later than March 13, 2007, a
school district subject to this section shall adopt a resolution
authorizing the referendum question required under subsection
(a). The board of school directors shall give public notice of
its intent to adopt the resolution in the manner provided for in
section [4] 306 of the Local Tax Enabling Act and must conduct
at least one public hearing on the resolution.
* * *
Section 332. Adoption of further referendum.
* * *
(b) Submittal of referendum.--
(1) A board of school directors may submit, at a
municipal election, a referendum question to the electors of
the school district seeking voter approval allowing the
school district to levy, assess and collect an earned income
and net profits tax or a personal income tax for the purpose
of annually funding homestead and farmstead exclusions or
millage reductions in certain circumstances. Prior to placing
a referendum question on the ballot, the board of school
directors must adopt a resolution pursuant to this section.
The board of school directors must give public notice of its
intent to adopt the resolution in the manner provided by
section [4] 306 of the Local Tax Enabling Act and must
conduct at least one public hearing on the resolution.
* * *
Section 334. Disposition of income tax revenue and property tax
reduction allocations.
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* * *
(c) Property tax reduction allocations.--
* * *
(2) Notwithstanding the provisions of paragraph (1), a
school district coterminous with a city of the second class A
may use up to 50% of the property tax reduction allocation
received under section 505 to reduce the rate of the earned
income and net profits tax levied by the school district
pursuant to any other act. If a board of school directors
elects to reduce the rate of earned income and net profits
tax pursuant to this paragraph, it shall adopt a resolution
reducing the rate of earned income and net profits tax no
later than the last day of the fiscal year immediately
preceding the fiscal year in which the new earned income and
net profits tax rate shall take effect. The board shall give
public notice of its intent to adopt the resolution in the
manner provided by section [4] 306 of the Local Tax Enabling
Act and shall conduct at least one public hearing on the
resolution. Any portion of the property tax reduction
allocation not used to reduce the rate of the earned income
and net profits tax shall be used as prescribed in paragraph
(1).
Section 5005. Repeals.
Repeals are as follows:
* * *
(2) Section [9] 312 of the act of December 31, 1965
(P.L.1257, No.511), known as The Local Tax Enabling Act, is
repealed insofar as it is inconsistent with the provisions of
section 351.
* * *
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Section 5 3. This act shall take effect in 60 days.
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