PRINTER'S NO. 795
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
812
Session of
2021
INTRODUCED BY STURLA AND SANCHEZ, MARCH 8, 2021
REFERRED TO COMMITTEE ON EDUCATION, MARCH 8, 2021
AN ACT
Providing for the dedicated funding of higher education; and
establishing the Higher Education Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Higher
Education Funding Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Fund." The Higher Education Fund established in section 5.
"State-related institution." The Pennsylvania State
University, the University of Pittsburgh, Lincoln University or
Temple University.
"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
known as the Tax Reform Code of 1971.
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Section 3. Sales and use surtax.
A surtax of 1% shall be imposed on the purchase price of
property and services subject to taxation under Article II of
the Tax Reform Code. The surtax shall be in addition to the tax
imposed under Article II of the Tax Reform Code.
Section 4. Computation of sales and use tax and sales and use
surtax.
(a) Schedule establishment.--Within 30 days of the effective
date of this section, the department shall establish a schedule
for the computation of the State sales and use tax under Article
II of the Tax Reform Code and the sales and use surtax as
established under this act.
(b) Schedule publication.--Immediately after the
establishment of the schedule under subsection (a), the
department shall transmit to the Legislative Reference Bureau
for publication in the Pennsylvania Bulletin the schedule
providing for the computation of the sales and use tax and the
State sales and use surtax.
Section 5. Higher Education Fund.
(a) Fund established.--The Higher Education Fund is
established in the State Treasury. Interest income derived from
investment of the money in the fund shall be credited by the
Treasury Department to the fund.
(b) Revenues.--Revenues deposited in the fund may only be
used for the member institutions of the State System of Higher
Education, community colleges, State-related institutions,
Thaddeus Stevens College of Technology, programs established to
provide grants or loans to Pennsylvania residents attending
institutions of higher education in this Commonwealth and
agencies promoting higher education in this Commonwealth.
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Section 6. Transfer to fund.
Within 30 days of the close of any calendar month, the
revenue generated in the previous month from the sales and use
surtax imposed under this act shall be transferred to the fund.
Section 7. Certification.
(a) Annual.--By April 15 of each fiscal year, the Secretary
of the Budget shall certify the total amount of revenue that is
reasonably projected to be deposited into the fund for the
period through June 30 of the current fiscal year.
(b) Excess.--If the actual revenue deposited into the fund
in any one fiscal year exceeds the amount certified under
subsection (a), any revenue in excess of projections may be used
in the current fiscal year or in the certification for the
subsequent fiscal year.
Section 8. Construction.
The provisions of Article II of the Tax Reform Code shall
apply to the imposition and implementation of the surtax.
Section 9. Effective date.
This act shall take effect immediately.
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