PRINTER'S NO. 1156
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
844
Session of
2019
INTRODUCED BY TOMLINSON AND MARTIN, SEPTEMBER 5, 2019
REFERRED TO FINANCE, SEPTEMBER 5, 2019
AN ACT
Amending the act of December 31, 1965 (P.L.1257, No.511),
entitled "An act empowering cities of the second class,
cities of the second class A, cities of the third class,
boroughs, towns, townships of the first class, townships of
the second class, school districts of the second class,
school districts of the third class and school districts of
the fourth class including independent school districts, to
levy, assess, collect or to provide for the levying,
assessment and collection of certain taxes subject to maximum
limitations for general revenue purposes; authorizing the
establishment of bureaus and the appointment and compensation
of officers, agencies and employes to assess and collect such
taxes; providing for joint collection of certain taxes,
prescribing certain definitions and other provisions for
taxes levied and assessed upon earned income, providing for
annual audits and for collection of delinquent taxes, and
permitting and requiring penalties to be imposed and
enforced, including penalties for disclosure of confidential
information, providing an appeal from the ordinance or
resolution levying such taxes to the court of quarter
sessions and to the Supreme Court and Superior Court," in
local taxes, further providing for payment of tax to other
political subdivisions or states as credit or deduction and
withholding tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 317 of the act of December 31, 1965
(P.L.1257, No.511), known as The Local Tax Enabling Act, amended
May 4, 2018 (P.L.102, No.18), is amended to read:
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Section 317. Payment of Tax to Other Political Subdivisions
or States as Credit or Deduction; Withholding Tax.--[(a)
Payment of any tax to any political subdivision pursuant to an
ordinance or resolution passed or adopted prior to the effective
date of this act shall be credited to and allowed as a deduction
from the liability of taxpayers for any like tax respectively on
salaries, wages, commissions, other compensation or on net
profits of businesses, professions or other activities and for
any income tax imposed by any other political subdivision of
this Commonwealth under the authority of this act.]
(b) Payment of any tax on salaries, wages, commissions,
other compensation or on net profits of business, professions or
other activities to a political subdivision by residents thereof
pursuant to an ordinance or resolution [passed or adopted under
the authority of this act] shall be credited to and allowed as a
deduction from the liability of such persons for any other like
tax respectively on the same salaries, wages, commissions, other
compensation or on net profits of businesses, professions or
other activities imposed by any other political subdivision of
this Commonwealth [under the authority of this act].
(c) Payment of any tax on income to any political
subdivision by residents thereof pursuant to an ordinance or
resolution [passed or adopted under the authority of this act]
shall, to the extent that such income includes salaries, wages,
commissions, other compensation or net profits of businesses,
professions or other activities, but in such proportion as
hereinafter set forth, be credited to and allowed as a deduction
from the liability of such persons for any other tax on the same
salaries, wages, commissions, other compensation or on net
profits of businesses, professions, or other activities imposed
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by any other political subdivision of this Commonwealth [under
the authority of this chapter].
(d) Payment of any tax on income to any state or to any
political subdivision thereof by residents thereof, pursuant to
any State or local law, shall, to the extent that such income
includes salaries, wages, commissions, or other compensation or
net profits of businesses, professions or other activities but
in such proportions as hereinafter set forth, be credited to and
allowed as a deduction from the liability of such person for any
other tax on the same salaries, wages, commissions, other
compensation or net profits of businesses, professions or other
activities imposed by any political subdivision of this
Commonwealth [under the authority of this act] if residents of
the political subdivision in Pennsylvania receive credits and
deductions of a similar kind to a like degree from the tax on
income imposed by the other state or political subdivision
thereof.
(e) Payment of any tax on income to any State other than
Pennsylvania or to any political subdivision located outside the
boundaries of this Commonwealth, by residents of a political
subdivision located in Pennsylvania shall, to the extent that
such income includes salaries, wages, commissions, or other
compensation or net profits of businesses, professions or other
activities but in such proportions as hereinafter set forth, be
credited to and allowed as a deduction from the liability of
such person for any other tax on the same salaries, wages,
commissions, other compensation or net profits of businesses,
professions or other activities imposed by any political
subdivision of this Commonwealth [under the authority of this
act].
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(f) Where a credit or a deduction is allowable in any of the
several cases hereinabove provided, it shall be allowed in
proportion to the concurrent periods for which taxes are imposed
by the other state or respective political subdivisions, but not
in excess of the amount previously paid for a concurrent period.
(g) No credit or deduction shall be allowed against any tax
on earned income imposed under authority of this act to the
extent of the amount of credit or deduction taken for the same
period by the taxpayer against any income tax imposed by the
Commonwealth of Pennsylvania under section 314 of the act of
March 4, 1971 (P.L.6, No.2) known as the "Tax Reform Code of
1971," on account of taxes imposed on income by other states or
by their political subdivisions.
Section 2. This act shall take effect in 60 days.
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