Bill Text: PA HB69 | 2013-2014 | Regular Session | Introduced
Bill Title: Authorizing counties to impose sales, use and occupancy taxes; and providing for an optional sales and use tax for first class cities, for the levying, assessment and collection of taxes and for the powers and duties of the Department of Community and Economic Development or any successor agency, the Department of Revenue and the State Treasurer.
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Introduced - Dead) 2013-01-10 - Referred to URBAN AFFAIRS [HB69 Detail]
Download: Pennsylvania-2013-HB69-Introduced.html
| PRINTER'S NO. 49 |
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. | 69 | Session of 2013 |
INTRODUCED BY STURLA, YOUNGBLOOD, HAGGERTY, SCHLOSSBERG, MUNDY, CARROLL, COHEN, MULLERY, MAHONEY, CALTAGIRONE AND THOMAS, JANUARY 10, 2013
REFERRED TO COMMITEE ON URBAN AFFAIRS, JANUARY 10, 2013
AN ACT
1Authorizing counties to impose sales, use and occupancy taxes;
2and providing for an optional sales and use tax for first
3class cities, for the levying, assessment and collection of
4taxes and for the powers and duties of the Department of
5Community and Economic Development or any successor agency,
6the Department of Revenue and the State Treasurer.
7TABLE OF CONTENTS
8Chapter 1. General Provisions
9Section 101. Short title.
10Section 102. Definitions.
11Section 103. Scope.
12Section 104. Preemption.
13Section 105. Rates of taxation in home rule counties.
14Chapter 3. Subjects of Taxation
15Subchapter A. Tax Authorization
16Section 301. General tax authorization.
17Section 302. Continuity of tax.
18Section 303. Election to participate under act.
19Section 304. Local tax study commission.
1Section 305. Municipal sales, use and occupancy tax initiative.
2Subchapter B. County Sales, Use and Occupancy Tax
3Section 311. Construction.
4Section 312. Imposition of tax.
5Section 313. Situs.
6Section 314. Licenses.
7Section 315. Rules and regulations; collection costs.
8Section 316. Procedure and administration.
9Section 317. County sales, use and occupancy tax funds.
10Section 318. Disbursements.
11Section 319. Adoption of municipal ordinances.
12Section 320. Allocations.
13Chapter 5. Disposition of Tax Revenues
14Section 501. Sales, use and occupancy tax revenues.
15Section 502. Municipal collaborative efforts fund.
16Section 503. Supplemental appropriations for collaborative
17services.
18Section 504. Revenue limitation exceptions.
19Chapter 7. Optional Sales and Use Tax for Cities of the First
20Class
21Section 701. Definitions.
22Section 702. Construction.
23Section 703. Imposition.
24Section 704. Situs for imposition of tax.
25Section 705. Licenses.
26Section 706. Department.
27Section 707. Dedication and disbursement.
28Section 708. Municipal action.
29Section 709. Expiration.
30Chapter 21. Miscellaneous Provisions
1Section 2101. (Reserved).
2Section 2102. Effective date.
3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:
5CHAPTER 1
6GENERAL PROVISIONS
7Section 101. Short title.
8This act shall be known and may be cited as the County and
9Municipal Property Tax Relief and Collaborative Services Act.
10Section 102. Definitions.
11The following words and phrases when used in this act shall
12have the meanings given to them in this section unless the
13context clearly indicates otherwise:
14"Board of county commissioners." Includes the successor in
15function to the board of county commissioners in a county which
16has adopted a home rule charter under the provisions 53 Pa.C.S.
17Pt. III Subpt. E (relating to home rule and optional plan
18government), but does not include the city council of a city of
19the first class or the county council of a county of the second
20class.
21"County." A county-level municipality within this
22Commonwealth. The term includes a county which has adopted a
23home rule charter or optional plan of government under the
24provisions of 53 Pa.C.S. Pt. III Subpt. E (relating to home rule
25and optional plan government). The term does not include a
26county of the first class or a county of the second class.
27"Current year." The calendar year or fiscal year for which a
28tax is levied.
29"Department." The Department of Revenue of the Commonwealth.
30"Domicile." As defined in section 501 of the act of December
131, 1965 (P.L.1257, No.511), known as The Local Tax Enabling
2Act.
3"Homestead." As defined in 53 Pa.C.S. § 8401 (relating to
4definitions).
5"Local Tax Enabling Act." The act of December 31, 1965
6(P.L.1257, No.511), known as The Local Tax Enabling Act.
7"Municipality." A city of the second class A, city of the
8third class, borough, incorporated town, township of the first
9class, township of the second class, home rule municipality,
10optional plan municipality, optional form municipality or
11similar general purpose unit of government which may after the
12effective date of this section be established by statute, except
13a city of the first class or a city of the second class. Unless
14the context clearly indicates otherwise, for the purposes of
15this act, a municipality located in a county shall include
16municipalities that are located entirely or partially in the
17county.
18"Nonqualified municipality." A municipality that is not a
19qualified municipality under this act.
20"Nonresident." An individual domiciled outside a
21municipality.
22"Ordinance." Includes a resolution.
23"Population." The number of individuals residing in an area
24as determined in the most recent Federal decennial census.
25"Preceding year." The calendar year or fiscal year before
26the current year.
27"Qualified municipality." A municipality that qualifies in
28accordance with section 305(b) or 319.
29"Succeeding year." The calendar year or fiscal year
30following the current year.
1"Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2),
2known as the Tax Reform Code of 1971.
3"Taxpayer." An individual required under this act to file a
4tax return or to pay a tax.
5Section 103. Scope.
6It is the intent of this act to confer upon each county the
7power to levy, assess and collect taxes upon the subjects of
8taxation specified in this act.
9Section 104. Preemption.
10No act of the General Assembly in effect prior to or after
11the effective date of this section shall vacate or preempt any
12ordinance passed or adopted under the authority of this act or
13any other act providing authority for the imposition of a tax by
14a county, unless the act of the General Assembly expressly
15vacates or preempts the authority to pass or adopt the
16ordinance.
17Section 105. Rates of taxation in home rule counties.
18A county which has adopted a home rule charter or optional
19plan of government under the provisions of 53 Pa.C.S. Pt. III
20Subpt. E (relating to home rule and optional plan government)
21may not fix the rate of taxation for the subjects of taxation
22authorized under Chapter 3 in excess of the rates fixed in
23Chapter 3.
24CHAPTER 3
25SUBJECTS OF TAXATION
26SUBCHAPTER A
27TAX AUTHORIZATION
28Section 301. General tax authorization.
29(a) General rule.--Subject to section 303 and except as
30provided in subsection (b), a county shall have the power and
1may by ordinance levy and assess or provide for the levying and
2assessment of taxes on the sale or use of tangible personal
3property and services and the occupancy of a hotel room at a
4rate of 1% for general revenue purposes as it shall determine on
5any or all of the subjects of taxation set forth in this act
6within the geographical limits of the county.
7(b) Exclusions.--No county which levies a tax authorized by
8this act shall have any power or authority to levy, assess or
9collect:
10(1) A tax based upon a flat rate or on a millage rate on
11an assessed valuation of a particular trade, occupation or
12profession, commonly known as an occupation tax.
13(2) A per capita, poll, residence or similar head tax.
14(3) The intangible personal property tax under the act
15of June 17, 1913 (P.L.507, No.335), referred to as the
16Intangible Personal Property Tax Law.
17Section 302. Continuity of tax.
18A tax levied under the provisions of this act shall continue
19in force on a calendar year basis without annual reenactment
20unless the tax is subsequently repealed.
21Section 303. Election to participate under act.
22(a) General rule.--A board of county commissioners which
23elects to participate under the provisions of this act shall do
24so by using the procedures specified in subsection (b) and in
25accordance with the following provisions:
26(1) An election to participate under this act shall
27remain in effect for a period of at least three full calendar
28years.
29(2) A board of county commissioners after making an
30election to participate under this act may, after a period of
1at least three full calendar years of participation, elect
2under the provisions of subsection (c) to cease participation
3under this act and levy, assess and collect the taxes
4prohibited by section 301(b) to the extent otherwise provided
5by law.
6(b) Ordinance.--Subject to the notice and public hearing
7requirements of section 316(a), a board of county commissioners
8may elect to participate under this act by adopting an ordinance
9imposing the tax. The ordinance must be adopted no later than
10September 1 preceding the calendar year when the tax will be
11initially imposed.
12(c) Repeal.--Subject to the notice and public hearing
13requirements of section 316(c), a board of county commissioners
14may elect to cease participation under this act by adopting an
15ordinance repealing the tax. The ordinance must be adopted no
16later than September 1 preceding the calendar year when the tax
17will be repealed.
18Section 304. Local tax study commission.
19(a) First-year implementation.--In considering whether to
20levy, assess, collect or provide for the levy, assessment or
21collection of any tax under this act, a board of county
22commissioners may, by February 1 of the year preceding the
23calendar year for which any such tax shall be levied, appoint a
24local tax study commission in accordance with the following
25provisions:
26(1) The local tax study commission shall consist of
27five, seven or nine members appointed by the board of county
28commissioners. One member of the local tax study commission
29may be a member of the board of county commissioners. No
30member of the local tax study commission may be a relative,
1by blood or marriage, of an official or employee of the
2county. All members must be residents of the county.
3Representatives on a local tax study commission should
4reasonably reflect the socioeconomic, age and occupational
5diversity of the county.
6(2) The board of county commissioners shall provide
7necessary and reasonable staff to support the local tax study
8commission.
9(3) The members of the local tax study commission shall
10receive reimbursement only for necessary and reasonable
11expenses in the discharge of their duties.
12(4) The local tax study commission shall study the
13existing taxes levied, assessed and collected by the county
14and determine if and how the tax policies of the county may
15be strengthened or made more equitable by adopting for levy,
16assessment and collection of a sales, use and occupancy tax
17as provided for in this act. This study shall include, but
18not be limited to, consideration of all of the following:
19(i) Historic rate and revenue provided by taxes
20currently levied, assessed and collected by the county.
21(ii) The percentage of total revenues provided by
22taxes currently levied, assessed and collected.
23(iii) The age, income, employment and property use
24characteristics of the existing tax base.
25(iv) The projected revenues of any taxes currently
26levied, assessed and collected.
27(v) The projected revenues of any taxes referred to
28in this paragraph not currently levied, assessed and
29collected by the county.
30(5) Within 120 days of its appointment, the local tax
1study commission shall make a nonbinding recommendation to
2the board of county commissioners of the appropriate tax or
3combination of taxes, identified in paragraph (4), to be
4levied, assessed and collected commencing the next fiscal
5year.
6(6) Upon appointment of the commission and except as
7provided for in paragraph (8), no tax may be levied, assessed
8or collected for the next fiscal year until receipt of the
9recommendation of the local tax study commission.
10(7) No later than September 1 prior to the commencement
11of the next fiscal year, the board of county commissioners
12shall accept or reject the recommendation of the local tax
13study commission or adopt any other appropriate tax or
14combination of taxes for the county commencing the next
15fiscal year as provided by this act and other applicable law.
16(8) If the local tax study commission fails to make a
17nonbinding recommendation within 120 days of its appointment,
18the board of county commissioners shall discharge the
19appointed local tax study commission and appoint itself as
20the local tax study commission. No later than September 1
21prior to the commencement of the next fiscal year, the board
22of county commissioners shall adopt the appropriate tax or
23combination of taxes for the county commencing the next
24fiscal year as provided by this act and other applicable law.
25(9) The local tax study commission shall publish or
26cause to be published, within 30 days of making its
27recommendation, a final report of its activities and
28recommendations and shall deliver the final report to the
29chief clerk of the county who shall supply copies to
30interested persons at their request.
1(10) Receipts are required for all reimbursable
2expenses.
3(11) All the records, receipts, minutes of meetings and
4written discussions of the local tax study commission shall,
5upon its discharge, be turned over to the chief clerk of the
6county for permanent safekeeping. The chief clerk shall make
7such materials available for public inspection at any time
8during regular business hours.
9(12) The local tax study commission shall be discharged
10on the filing of its final report.
11(b) Effect.--A county that levies, assesses and collects or
12provides for the levy, assessment or collection of any tax,
13after having received the recommendations of a local tax study
14commission and acted, shall continue to levy, assess and collect
15the same tax or combination of taxes for a minimum of the next
16three fiscal years.
17(c) Periodic review.--Beginning at least three fiscal years
18after action by a board of county commissioners on the
19recommendation of a tax study commission under this section, and
20no more frequently than every three fiscal years thereafter, the
21board of commissioners may appoint a local tax study commission
22in the manner provided in subsection (a). The local tax study
23commission appointed under this subsection shall be charged with
24all of the same powers and duties provided for a local tax study
25commission under subsection (a).
26(d) Construction.--Nothing in this section shall be
27construed to preclude the board of county commissioners from
28changing or altering the rates of any such tax or combination of
29taxes if it deems necessary to the extent otherwise permitted by
30law.
1Section 305. Municipal sales, use and occupancy tax initiative.
2(a) General rule.—-After the first January 1 occurring at
3least six months following the effective date of this section,
4if the board of county commissioners of a county has not elected
5to participate under this act, municipalities located in that
6county may require, as provided in this section, the board of
7county commissioners of the county to impose the sales, use and
8occupancy tax as provided in section 312.
9(b) Procedure.--
10(1) If the board of county commissioners of a county has
11not elected to participate under this act by the first
12January 1 occurring at least six months following the
13effective date of this section, the governing body of a
14municipality located in that county may place before the
15governing bodies of all the municipalities located in that
16county the following question:
17Do you favor the imposition of a county sales, use and
18occupancy tax at the rate of 1% as provided in section
19312 of the County and Municipal Property Tax Relief and
20Collaborative Services Act?
21(2) Circulation of the question may begin no earlier
22than January 1 of the year prior to the proposed year of
23implementation, and the vote by the governing bodies of the
24municipalities must conclude no later than June 1 of the year
25prior to the proposed year of implementation.
26(3) Each governing body of a municipality voting in the
27affirmative on the question shall certify its vote on the
28question to the board of county commissioners. The governing
29body of a municipality that is located in more than one
30county shall certify its vote on the question to the board of
1county commissioners for each county where the municipality
2is located.
3(4) The affirmative votes of the governing bodies of
4municipalities whose combined population represents more than
560% of the population within the county shall be necessary
6for the board of county commissioners to elect participation
7under this act. The population of a municipality that is
8located in more than one county shall be determined
9separately for each county where the municipality is located
10on the basis of the municipality's population within each
11county.
12(5) Upon receipt of certifications from municipalities
13indicating approval of the question by municipalities whose
14combined population represents more than 60% of the
15population of the county, the board of county commissioners
16of the county shall, for the next calendar year, elect to
17participate under this act, pursuant to the procedures of
18section 303.
19(6) A municipality is qualified to receive a
20disbursement under section 318 if the municipality:
21(i) votes in the affirmative on the question under
22this section; or
23(ii) qualifies in accordance with the provisions of
24section 319.
25SUBCHAPTER B
26COUNTY SALES, USE AND OCCUPANCY TAX
27Section 311. Construction.
28The tax imposed by the board of county commissioners under
29this subchapter shall be in addition to any tax imposed by the
30Commonwealth under Article II of the Tax Reform Code. Except for
1the differing situs provisions under section 313, the provisions
2of Article II of the Tax Reform Code shall apply to the tax.
3Section 312. Imposition of tax.
4(a) Sales.--
5(1) The board of county commissioners may levy and
6assess upon each separate sale at retail of tangible personal
7property or services, as defined in Article II of the Tax
8Reform Code, within the boundaries of the county, a tax on
9the purchase price.
10(2) The tax shall be collected by the vendor from the
11purchaser and shall be paid over to the Commonwealth as
12provided in this subchapter.
13(b) Use.--
14(1) In any county within which the tax authorized in
15subsection (a) is imposed, there shall be levied, assessed
16and collected upon the use, within the county, of tangible
17personal property purchased at retail and on services
18purchased at retail, as defined in Article II of the Tax
19Reform Code, a tax on the purchase price.
20(2) The tax shall be paid over to the Commonwealth by
21the person who makes the use.
22(3) The use tax imposed under this subchapter shall not
23be paid over to the Commonwealth by any person who has paid
24the tax imposed by subsection (a) or has paid the tax imposed
25by this subsection to the vendor with respect to the use.
26(c) Occupancy.--
27(1) In any county within which a tax authorized by
28subsection (a) is imposed, there shall be levied, assessed
29and collected an excise tax on the rent upon every occupancy
30of a room or rooms in a hotel in the county.
1(2) The tax shall be collected by the operator or owner
2from the occupant and paid over to the Commonwealth.
3(d) Rate and uniformity.--The tax authorized by subsections
4(a), (b) and (c) shall be imposed at a rate of 1% and shall be
5uniform.
6(e) Computation.--The tax imposed under this section shall
7be computed in the manner set forth in section 503(e)(2) of the
8act of June 5, 1991 (P.L.9, No.6), known as the Pennsylvania
9Intergovernmental Cooperation Authority Act for Cities of the
10First Class.
11Section 313. Situs.
12The situs of sales at retail or uses of motor vehicles,
13aircraft, motorcraft and utility services shall be determined in
14the manner specified by section 504 of the act of June 5, 1991
15(P.L.9, No.6), known as the Pennsylvania Intergovernmental
16Cooperation Authority Act for Cities of the First Class and by
17Article II-A of the Tax Reform Code.
18Section 314. Licenses.
19A license for the collection of the tax imposed by this
20subchapter shall be issued in the same manner as is provided for
21in section 505 of the act of June 5, 1991 (P.L.9, No.6), known
22as the Pennsylvania Intergovernmental Cooperation Authority Act
23for Cities of the First Class. Licensees shall be entitled to
24the same discount as provided in section 227 of the Tax Reform
25Code.
26Section 315. Rules and regulations; collection costs.
27(a) Regulations.--Rules and regulations shall be applicable
28to the taxes imposed under section 312 in the same manner as is
29provided for in section 506(1) and (2) of the act of June 5,
301991 (P.L.9, No.6), known as the Pennsylvania Intergovernmental
1Cooperation Authority Act for Cities of the First Class.
2(b) Administrative costs.--
3(1) The department may retain a sum equal to 1% of the
4revenues collected under this subchapter for its
5administrative costs.
6(2) When the annual operating budget for the department
7is submitted to the General Assembly, the department shall
8also submit to the chairman and minority chairman of the
9Appropriations Committee of the Senate and to the chairman
10and minority chairman of the Appropriations Committee of the
11House of Representatives the actual sums retained for costs
12of collection in the preceding fiscal year, together with all
13supporting details.
14Section 316. Procedure and administration.
15(a) Ordinance.--
16(1) A county desiring to impose the tax authorized by
17section 312 shall give at least 60 days' written notice to
18each municipality in the county of its intent to impose the
19tax and shall adopt an ordinance after the expiration of 60
20days after the date of the notice. The notice and ordinance
21shall state the tax rate and refer to this subchapter. The
22ordinance shall authorize the imposition of the tax on all
23subjects provided for in section 312.
24(2) Prior to adopting an ordinance imposing the tax
25under section 312, the board of county commissioners shall
26give public notice of its intent to adopt the ordinance in
27the manner provided by section 306 of the Local Tax Enabling
28Act and shall conduct at least one public hearing regarding
29the proposed adoption of the ordinance.
30(3) The board of county commissioners may waive the
1requirement for a public hearing if the ordinance will be
2adopted pursuant to the provisions of section 305.
3(b) Notification to department.--A certified copy of the
4county ordinance shall be delivered to the department by
5September 1 of the year prior to the effective date of the
6ordinance. The county ordinance shall become effective on the
7January 1 following delivery of the certified copy to the
8department.
9(c) Repeal.--
10(1) A county, having enacted the tax authorized by
11section 312 and desiring to repeal the tax, shall give at
12least 60 days' written notice to every municipality located
13in the county of its intent to repeal the tax and shall adopt
14an ordinance after the expiration of 60 days after the date
15of the notice. The ordinance shall authorize the repeal of
16the tax on all subject under section 312.
17(2) Prior to adopting an ordinance repealing the tax
18imposed under section 312, the board of county commissioners
19shall give public notice of its intent to repeal the
20ordinance in the manner provided by section 506 of the Local
21Tax Enabling Act and shall conduct at least one public
22hearing regarding the proposed repeal of the ordinance.
23(d) Delivery of repeal ordinance.--The board of county
24commissioners shall deliver a certified copy of a repeal
25ordinance to the department by September 1 of the year prior to
26the effective date of the repeal.
27Section 317. County sales, use and occupancy tax funds.
28(a) Funds established in State Treasury.--There is hereby
29established in the State Treasury for each county imposing the
30tax under section 312 a county sales, use and occupancy tax fund
1in the name of each county. The State Treasurer shall be
2custodian of the funds which shall be subject to the provisions
3of law applicable to funds listed in section 302 of the act of
4April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
5(b) Deposits into funds.--
6(1) The tax imposed under section 312 shall be received
7by the department and paid to the State Treasurer and, along
8with interest and penalties, less any collection costs
9allowed under this subchapter and any refunds and credits
10paid, shall be credited to the respective fund not less
11frequently than every two weeks.
12(2) During any period prior to the credit of moneys to
13each such fund, interest earned on moneys received by the
14department and paid to the State Treasurer under this
15subchapter shall be deposited into the respective fund.
16(c) Lapsing and interfund transfers prohibited.--All moneys
17in each respective fund, including, but not limited to, moneys
18credited to the fund under this section, prior year encumbrances
19and the interest earned thereon, shall not lapse or be
20transferred to any other fund, but shall remain in the
21respective fund.
22(d) Investment.--Pending their disbursement, moneys received
23on behalf of or deposited into each respective fund shall be
24invested or reinvested as are other moneys in the custody of the
25State Treasurer in the manner provided by law. All earnings
26received from the investment or reinvestment of the moneys shall
27be credited to the respective fund.
28Section 318. Disbursements.
29(a) General rule.--On or before the tenth day of every
30month, the State Treasurer shall make disbursements as provided
1in this section.
2(b) Disbursement to counties.--
3(1) The State Treasurer shall disburse to a county
4imposing the tax under section 312 an amount of money equal
5to 50% of the tax deposited in the respective county sales,
6use and occupancy tax fund for deposit into the county
7general fund for disposition as provided under section
8501(a).
9(2) The State Treasurer shall disburse to a county, in
10addition to its share under paragraph (1), an amount of money
11equal to the amount allocated to all of the nonqualified
12municipalities as provided in this section.
13(c) Allocation to municipalities.--The State Treasurer shall
14allocate to the municipalities located in the county an amount
15of money equal to 40% of the tax deposited in the respective
16county sales, use and occupancy tax fund, which shall be
17apportioned to all of the municipalities located in that county
18as computed under section 320(a).
19(d) Disbursement to municipalities.--
20(1) The amount apportioned to each qualified
21municipality shall be disbursed to the qualified municipality
22for deposit into the municipal general fund for disposition
23as provided in section 501(b).
24(2) The amount apportioned to each nonqualified
25municipality shall be disbursed to the county as provided in
26subsection (b)(2) for deposit into the county general fund
27for disposition as provided under section 501(a).
28(e) Disbursement to municipal collaborative efforts fund.--
29The State Treasurer shall disburse to the municipal
30collaborative efforts fund established by the county under
1section 502 an amount of money equal to 10% of the tax deposited
2in the respective county sales, use and occupancy tax fund.
3(f) Penalty.--If disbursements are not made on or before the
4tenth day of each month, a 5% penalty shall be added thereto
5plus an additional 1% late charge per month delayed, along with
6interest and penalties accruing under section 317. Payment of
7penalties and late charges under this subsection shall be made
8from the General Fund of the Commonwealth into the county sales,
9use and occupancy tax fund established under section 317.
10Section 319. Adoption of municipal ordinances.
11(a) Initial year qualification.--A municipality is qualified
12to receive a disbursement under section 318 if, prior to
13enactment of the county ordinance, the municipality:
14(1) Adopts a municipal ordinance containing the
15statement:
16We strongly urge the county to enact a county sales, use
17and occupancy tax and intend to accept disbursements of
18the sales, use and occupancy tax collected.
19(2) Delivers a certified copy of the municipal ordinance
20to the board of county commissioners on or before the
21enactment of the county ordinance. A municipality that is
22located in more than one county shall deliver a certified
23copy to the board of county commissioners for each county
24where the municipality is located.
25(b) Subsequent year qualification.--A municipality is
26qualified to receive a disbursement under section 318 if, prior
27to October 1 of any year after the year of initial imposition of
28the tax by a county, the municipality meets the following
29requirements:
30(1) Adopts a municipal ordinance containing the
1statement:
2We support the enactment by the county of the county
3sales, use and occupancy tax and strongly urge its
4continuation and intend to accept disbursements of the
5sales, use and occupancy tax collected.
6(2) Delivers a certified copy of the municipal ordinance
7to the board of county commissioners on or before the
8enactment of the county ordinance by October 15 of the year
9in which the ordinance is enacted. A municipality that is
10located in more than one county shall deliver a certified
11copy to the board of county commissioners for each county
12where the municipality is located.
13(c) Nonqualification.--Notwithstanding the provisions of
14subsection (b), a municipality shall not qualify to receive a
15disbursement under section 318 earlier than 36 months after the
16initial date of imposition of the tax unless the municipality:
17(1) enacts an ordinance in accordance with the
18provisions of subsection (a); or
19(2) votes in the affirmative to the question in
20accordance with the provisions of section 305.
21Section 320. Allocations.
22(a) Allocations to municipalities.--The State Treasurer
23shall compute allocations to municipalities in the following
24manner:
25(1) Fifty percent of the money allocated to
26municipalities in the county shall be distributed pro rata
27based on the weighted tax revenues for each municipality
28located in the county as a percentage of the total weighted
29tax revenues of all municipalities located in the county. For
30municipalities located in more than one county, the weighted
1tax revenues for the county shall be prorated based upon the
2population of the municipality in each county divided by the
3total population of the municipality.
4(2) Fifty percent of the money allocated to
5municipalities in the county shall be distributed pro rata
6based on the population of each municipality located in the
7county as a percentage of the sum of the population of all
8municipalities located in the county. For municipalities
9located in more than one county, the population of the county
10shall be determined separately for each county where the
11municipality is located on the basis of the municipality's
12population within each county.
13(b) Calculation of weighted tax revenues.--Calculations of
14weighted tax revenues shall be made by the Department of
15Community and Economic Development or any successor agency and
16certified to the State Treasurer based upon information reported
17to the Department of Community and Economic Development or any
18successor agency, subject to review, verification and approval
19by the Department of Community and Economic Development or any
20successor agency.
21(c) Definitions.--As used in this section, the following
22words and phrases shall have the meanings given to them in this
23subsection:
24"Per capita market value." The total market value of all
25real property divided by population as determined by the most
26recent decennial census.
27"Total tax revenues." Real property tax revenues, revenues
28received by levy of a tax under the Local Tax Enabling Act,
29revenues received by levy of a tax under this act and revenues
30received by levy of a tax under the act of August 9, 1955
1(P.L.323, No.130), known as The County Code, the act of June 23,
21931 (P.L.932, No.317), known as The Third Class City Code, the
3act of February 1, 1966 (1965 P.L.1656, No.581), known as The
4Borough Code, the act of June 24, 1931 (P.L.1206, No.331), known
5as the First Class Township Code, and the act of May 1, 1933
6(P.L.103, No.69), known as The Second Class Township Code, as
7applicable to the municipality.
8"Weighted tax revenues." Total tax revenues from all sources
9of a municipality divided by the per capita market value of the
10municipality.
11CHAPTER 5
12DISPOSITION OF TAX REVENUES
13Section 501. Sales, use and occupancy tax revenues.
14(a) Counties.--
15(1) In the first year of implementation of the tax under
16section 312, no less than 60% of any additional revenues
17received by a county from the tax shall be used to offset the
18revenues lost as a result of the prohibition against
19imposition of the taxes enumerated in section 301(b) and then
20to reduce the county real property tax, first by means of a
21homestead exclusion and then, if the maximum homestead
22exclusion has been attained, by means of reduction in the
23property tax millage rate.
24(2) Revenues received and retained by a county from the
25tax under section 312 shall be expended for public purposes
26authorized by statutes governing counties.
27(b) Municipalities.--
28(1) In the first year of implementation of the taxes
29under section 312, no less than 60% of any additional
30revenues received by a qualified municipality from the tax
1shall be used for the following, separately or in
2combination:
3(i) To offset the municipal real property tax, first
4by means of a homestead exclusion and then, if the
5maximum homestead exclusion has been attained, by means
6of reduction in the property tax millage rate.
7(ii) To offset lost municipal revenue based on the
8value of real property in the municipality that has been
9exempted from real property taxation pursuant to law.
10(2) If, in the first year of implementation, 60% of the
11amount of revenues received by a qualified municipality
12exceeds the sum of the amount of offsets available under
13paragraph (1) for that year, then that excess revenue shall
14be used for the following, separately or in combination:
15(i) To offset any other municipal tax or fee.
16(ii) To make a supplemental appropriation in
17accordance with section 503.
18(3) Revenues received and retained by a qualified
19municipality from the taxes under section 312 shall be
20expended for public purposes of health, safety and welfare as
21provided in the municipality's governing statutes.
22Section 502. Municipal collaborative efforts fund.
23(a) Fund established.--There is hereby established in each
24county levying the tax under section 312 a municipal
25collaborative efforts fund.
26(b) Deposits.--Payments received under section 318(e) shall
27be deposited in the municipal collaborative efforts fund of the
28county for use as specified in this section.
29(c) Municipal collaborative efforts board.--
30(1) Upon levy of the taxes under section 312 by a
1county, a municipal collaborative efforts board will be
2established within the county.
3(2) The municipal collaborative efforts board shall
4award grants for the provision of municipal collaborative
5efforts within the county that meet criteria established by
6the municipal collaborative efforts board.
7(3) All of the members of the municipal collaborative
8efforts board must be elected officials from qualified
9municipalities in the county.
10(4) The municipal collaborative efforts board shall be
11comprised of no fewer than three voting members and one
12nonvoting member, and no more than seven voting members and
13one nonvoting member. The municipal collaborative efforts
14board shall include at least one representative from each
15class of municipality located in the county; provided that
16the class of municipality consists of at least one qualified
17municipality. The number of representatives from each class
18of municipality located in the county shall be in reasonable
19proportion to the number of municipalities within each class
20of municipality in the county.
21(5) The board of county commissioners shall appoint
22members to the municipal collaborative efforts board from
23nominations made by resolution of the qualified
24municipalities in the county. Prior to appointment, the board
25of county commissioners shall submit the nominees to councils
26of governments and county associations of municipalities
27existing in the county, if any, for review and comment.
28(6) Members shall serve a two-year term and may be
29nominated for successive terms. Vacancies shall be filled by
30the board of county commissioners for the balance of the
1unexpired term, and any appointment made shall be from the
2same class of qualified municipality. Initial appointments
3shall be made within 60 days of a county levying the taxes
4under section 312, and vacancies shall be filled within 60
5days of their occurrence from nominees submitted by
6municipalities of the class for which the vacancy exists.
7(7) Within 30 days of appointment, and on the first
8Monday after the first day of January of each year following,
9the municipal collaborative efforts board shall organize.
10(8) No more than 10% of the annual payments received
11under section 318(e) may be used by the municipal
12collaborative efforts board for administrative purposes.
13(9) The municipal collaborative efforts board shall
14adopt standard rules of parliamentary procedure and shall
15adopt such other rules and regulations necessary for conduct
16of the business of the municipal collaborative efforts board.
17The Department of Community and Economic Development shall
18develop sample rules and regulations and other guidance
19materials.
20(d) Disbursements.--
21(1) Disbursement of funds shall be made to one or more
22qualified municipalities or groups of qualified
23municipalities organized under 53 Pa.C.S. Ch. 23 Subch. A
24(relating to intergovernmental cooperation) or operating
25under other contractual agreement, for the purpose of
26providing municipal collaborative efforts.
27(2) Nonqualified municipalities shall be ineligible for
28funds under this section unless the funding is pursuant to an
29agreement under 53 Pa.C.S. Ch. 23 Subch. A in which the
30majority of participating municipalities are qualified
1municipalities or pursuant to other contractual agreement in
2which the majority of participating municipalities are
3qualified municipalities.
4(e) Audit.--Following the close of the fiscal year, the
5municipal collaborative efforts board shall provide for an
6examination of its financial records and the financial records
7of its fund by a certified public accountant in accordance with
8generally accepted government auditing standards. The municipal
9collaborative efforts board may require any recipient of funds
10under this section to provide to the municipal collaborative
11efforts board an audit of the use of those funds in accordance
12with generally accepted government auditing standards.
13(f) Definition.--For the purposes of this section, the term
14"qualified municipality" shall have the same meaning given in
15section 102, except that for municipal collaborative efforts
16provided by agreement for municipalities in more than one
17county, the term shall include municipalities qualified in
18another county.
19Section 503. Supplemental appropriations for collaborative
20services.
21A county or municipality may appropriate and transfer by
22contract a portion of its receipts of disbursements under this
23act to one or more other counties or municipalities or groups of
24municipalities organized under 53 Pa.C.S. Ch. 23 Subch. A
25(relating to intergovernmental cooperation), for the purpose of
26providing governmental services on behalf of that county or
27municipality.
28Section 504. Revenue limitation exceptions.
29(a) Waiver.--A board of county commissioners or the
30governing body of a municipality may waive the limitations
1relating to the reduction or elimination of taxes in sections
2501, but only to the degree necessary, in the following cases:
3(1) If an increase in local expenditures is necessary to
4respond to or recover from an emergency or disaster declared
5by the Governor.
6(2) If the political subdivision is required to
7implement a court decision.
8(3) To pay interest and principal on any indebtedness
9incurred under the provisions of 53 Pa.C.S. Pt. VII Subpt. B
10(relating to indebtedness and borrowing).
11(4) To pay increases in pension fund requirements which
12are in excess of the annual average increase over the
13immediately preceding five fiscal years.
14(5) To respond to a county or municipality declared to
15be distressed under the act of July 10, 1987 (P.L.246,
16No.47), known as the Municipalities Financial Recovery Act.
17(6) To increase revenues when actual revenues decline
18from the immediately preceding year, but only to the extent
19of the revenue decline.
20(7) If the increase does not exceed the limitations on
21millage rates for real property under the act of August 9,
221955 (P.L.323, No.130), known as The County Code, the act of
23June 23, 1931 (P.L.932, No.317), known as The Third Class
24City Code, the act of February 1, 1966 (1965 P.L.1656,
25No.581), known as The Borough Code, the act of June 24, 1931
26(P.L.1206, No.331), known as the First Class Township Code,
27and the act of May 1, 1933 (P.L.103, No.69), known as The
28Second Class Township Code.
29(8) (i) To respond to a Federal or State statute,
30regulation or order adding to or significantly altering
1responsibilities and duties or requiring expenditure of
2funds to the extent not funded by the Federal Government
3or State government.
4(ii) This paragraph shall apply only to a Federal or
5State statute, regulation or order taking effect after
6the effective date of this section.
7(9) To increase revenue equal to the percentage increase
8in the Statewide average weekly wage from the immediately
9preceding year or 5%, whichever is less.
10(b) Appeal.--
11(1) A person aggrieved by a waiver of limitations
12pursuant to this section may appeal to the court of common
13pleas in the judicial district in which the county or
14municipality is located.
15(2) The following shall apply to any proceedings
16instituted under this subsection:
17(i) The county or municipality that is subject of
18the appeal must show by clear and convincing evidence the
19necessity to claim the waiver of limitations.
20(ii) The county or municipality must show by clear
21and convincing evidence that there are no assets or other
22feasible alternatives available to the county or
23municipality.
24(iii) A person shall have standing as a party to a
25proceeding under this subsection as long as the person
26resides within or pays real property taxes to the taxing
27jurisdiction of the county or municipality that is
28subject of the appeal.
29CHAPTER 7
30OPTIONAL SALES AND USE TAX
1FOR CITIES OF THE FIRST CLASS
2Section 701. Definitions.
3(a) Article II of Tax Reform Code.--The definitions in
4section 201 of the act of March 4, 1971 (P.L.6, No.2), known as
5the Tax Reform Code of 1971, apply to this chapter.
6(b) Specific.--The following words and phrases when used in
7this chapter shall have the meanings given to them in this
8subsection unless the context clearly indicates otherwise:
9"City." A city of the first class.
10"Fund." The Local Sales and Use Tax Fund.
11Section 702. Construction.
12(a) Additional tax.--The tax imposed by a city under this
13chapter shall be in addition to any tax imposed:
14(1) by the Commonwealth under Article II of the act of
15March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
161971; or
17(2) by a city under the act of June 5, 1991 (P.L.9,
18No.6), known as the Pennsylvania Intergovernmental
19Cooperation Authority Act for Cities of the First Class.
20(b) Article II of Tax Reform Code.--Except for the differing
21situs provisions under section 704, section 202-A and Article II
22of the Tax Reform Code of 1971 applies to this chapter.
23Section 703. Imposition.
24(a) Sales.--
25(1) The governing body of a city may levy, assess and
26collect, upon each separate sale at retail of tangible
27personal property or services within the city, a tax on the
28purchase price.
29(2) The tax shall be collected by the vendor from the
30purchaser and shall be paid over to the Commonwealth as
1provided in this chapter.
2(b) Use.--
3(1) If a city imposes the tax under subsection (a), the
4governing body of the city shall levy, assess and collect,
5upon the use within the city of tangible personal property
6purchased at retail and of services purchased at retail, a
7tax on the purchase price.
8(2) Except as set forth in paragraph (3), the tax shall
9be paid over to the Commonwealth by the person that makes the
10use.
11(3) The tax shall not be paid over to the Commonwealth
12by a person that, with respect to the same taxable subject:
13(i) has paid the tax under subsection (a); or
14(ii) has paid the tax imposed by this subsection to
15the vendor.
16(c) Rate and uniformity.--The rate of the tax authorized by
17this section shall be 1%.
18(d) Computation.--The tax under this section shall be
19computed as follows:
20(1) If the purchase price is 50¢ or less, no tax shall
21be collected.
22(2) If the purchase price is 51¢ or more but less than
23$1.51, 1¢ shall be collected.
24(3) If the purchase price is $1.51 or more but less than
25$2.51, 2¢ shall be collected.
26(4) If the purchase price is $2.51 or more but less than
27$3.51, 3¢ shall be collected.
28(5) If the purchase price is $3.51 or more but less than
29$4.51, 4¢ shall be collected.
30(6) If the purchase price is $4.51 or more but less than
1$5.51, 5¢ shall be collected.
2(7) If the purchase price is $5.51 or more but less than
3$6.51, 6¢ shall be collected.
4(8) If the purchase price is $6.51 or more but less than
5$7.51, 7¢ shall be collected.
6(9) If the purchase price is $7.51 or more but less than
7$8.51, 8¢ shall be collected.
8(10) If the purchase price is $8.51 or more but less
9than $9.51, 9¢ shall be collected.
10(11) If the purchase price is $9.51 or more but less
11than $10.01, 10¢ shall be collected.
12(12) If the purchase price is more than $10, 1% of each
13$10 purchase price plus the above bracket charges upon any
14fractional part of a $10 increment shall be collected.
15Section 704. Situs for imposition of tax.
16(a) Situs for retail sales.--Except as otherwise set forth
17in this section, a sale at retail shall be deemed to be
18consummated at the place of business of the retailer. If a
19retailer has more than one place of business in this
20Commonwealth which participates in the sale, the sale shall be
21deemed to be consummated at the place of business of the
22retailer where the initial order for the tangible personal
23property is taken, even though the order must be forwarded
24elsewhere for acceptance, approval of credit, shipment or
25billing. A sale by a retailer's employee shall be deemed to be
26consummated at the place of business from which that employee
27works.
28(b) Out-of-State delivery.--Subsection (a) does not apply if
29the tangible personal property sold is delivered by the retailer
30to:
1(1) an out-of-State destination;
2(2) a common carrier for delivery to an out-of-State
3destination; or
4(3) the United States Post Office for delivery to an
5out-of-State destination.
6(c) Situs for vehicle, aircraft and motorcraft sales.--
7(1) This subsection applies to all of the following:
8(i) A mobile home, motor vehicle, semitrailer or
9trailer, as defined in 75 Pa.C.S. § 102 (relating to
10definitions).
11(ii) Any aircraft, motorboat or similar item of
12tangible personal property required under either Federal
13or state law to be registered or licensed.
14(2) The sale at retail or use of an item listed in
15paragraph (1) shall be deemed to have been completed or used
16at the address of the purchaser or user.
17(3) The tax due on an item listed in paragraph (1) shall
18be paid by the purchaser or user:
19(i) to the Department of Transportation at the time
20of making application for the issuance of a certificate
21of title; or
22(ii) if licensing by the Department of
23Transportation is not required or obtained, to the
24department.
25(d) Situs for utility services.--
26(1) The sale or use of steam, natural and manufactured
27gas and electricity shall be deemed to occur at the service
28address in the city where the meter which registers the
29service is located, without regard to where the services are
30rendered.
1(2) The sale or use of telephone service shall be deemed
2to occur at the address where the telephone equipment is
3located and to which the telephone number is assigned.
4(3) The sale or use of telegraph services shall be
5deemed to occur where the telegraph originated.
6Section 705. Licenses.
7(a) Issuance and renewal.--
8(1) The license issued under Article II of act of March
94, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
10or a separate license may be issued by the department for the
11collection and reporting of the taxes imposed by section 703.
12(2) The license is subject to renewal periodically as
13required by the department in regulations but in no event
14more frequently than once within a five-year period.
15(3) No fee shall be charged for either a license or any
16renewal.
17(b) Assignment.--The license shall be nonassignable.
18(c) Liability.--Failure of a person to obtain a license
19shall not relieve the person of liability to pay the taxes
20imposed by this chapter.
21Section 706. Department.
22(a) Administration.--The department has the following powers
23and duties to administer this chapter:
24(1) Promulgate regulations.
25(2) Enforce this chapter and regulations under this
26chapter and subsection (b).
27(b) Existing regulations.--The regulations promulgated under
28section 270 of the act of March 4, 1971 (P.L.6, No.2), known as
29the Tax Reform Code of 1971, shall be applicable to the taxes
30imposed by section 703 insofar as the regulations are consistent
1with section 703.
2(c) Administrative costs.--The department shall use the
3money to cover cost of administration of the tax under Chapter 5
4of the act of June 5, 1991 (P.L.9, No.6), known as the
5Pennsylvania Intergovernmental Cooperation Authority Act for
6Cities of the First Class, to cover the cost of administration
7of the tax authorized by this chapter; and the department shall
8not retain any additional amounts for the costs of collection of
9the tax authorized by this chapter.
10Section 707. Dedication and disbursement.
11(a) Fund.--
12(1) At least every two weeks, the department shall pay
13to the State Treasurer the money from the tax, interest and
14penalties, minus refunds and credits, under this chapter.
15(2) The State Treasurer shall credit the money under
16paragraph (1) to the fund. During any period prior to the
17credit of money, interest earned on money shall be deposited
18into the fund.
19(3) Money in the fund under paragraph (2) shall be the
20property of the city and shall be distributed as provided in
21this section.
22(4) Pending disbursement to the city, money in the fund
23under paragraph (2) shall be invested as is other money in
24the custody of the State Treasurer in the manner provided by
25law. All earnings received from the investment or deposit of
26the money shall be credited to the fund.
27(5) Money in the fund under paragraph (2):
28(i) shall not lapse at the end of any fiscal year;
29(ii) shall not be transferred to any other fund; and
30(iii) shall be used exclusively as provided in this
1section.
2(b) Disbursement.--By the 10th day of the month, the State
3Treasurer shall disburse to the city the total amount of money
4which is, as of the last day of the previous month, contained in
5the fund under subsection (a)(2).
6Section 708. Municipal action.
7(a) Adoption of ordinance.--If a city desires to impose the
8tax under section 703, the governing body of the city must adopt
9an ordinance stating the tax rate. The effective date of the
10ordinance must be:
11(1) at least 30 days after adoption; and
12(2) on the first day of a month.
13(b) Notification to department.--A certified copy of a city
14ordinance imposing the tax authorized by section 703 shall be
15delivered to the department within ten days after the adoption
16of the ordinance.
17(c) Copy of repeal ordinance.--A certified copy of a repeal
18ordinance shall be delivered to the department at least 30 days
19prior to the effective date of the repeal.
20Section 709. Expiration.
21This chapter shall expire July 1, 2018. Notwithstanding the
22expiration of this chapter, tax imposed under section 703 on
23sales or uses occurring before July 1, 2018, shall be subject to
24section 707.
25CHAPTER 21
26MISCELLANEOUS PROVISIONS
27Section 2101. (Reserved).
28Section 2102. Effective date.
29This act shall take effect immediately.
