Pennsylvania HB 1582: An Act amending the act of May 1, 1933 (P.L.103, No.69), known as The Second Class Township Code, in auditors and accountants, further providing for appointment of accountant and providing for appointment of independent auditor and abolishment of office of elected auditor.

Bill Text

PRINTER'S NO. 1886
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1582
Session of
2025
INTRODUCED BY KERWIN, GAYDOS, ROWE AND STENDER, JUNE 9, 2025
REFERRED TO COMMITTEE ON FINANCE, JUNE 10, 2025
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 delegation of taxing
powers and restrictions thereon, for payroll tax and for
limitations on rates of specific taxes and providing for
expiration of business gross receipts tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 301.1(a.1) and (f)(12), 303(d) and
311(2) of the act of December 31, 1965 (P.L.1257, No.511), known
as The Local Tax Enabling Act, are amended to read:
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Section 301.1. Delegation of Taxing Powers and Restrictions
Thereon.--* * *
[(a.1) (1) A local taxing authority may levy a tax on the
privilege of doing business in the jurisdiction of the local
taxing authority if:
(i) the privilege is exercised by conducting transactions in
the jurisdiction of the levying local taxing authority for all
or part of fifteen or more calendar days within the calendar
year; or
(ii) the privilege is exercised through a base of operations
in the jurisdiction of the levying local taxing authority. The
gross receipts subject to this tax shall not include any
receipts subject to a tax measured by such gross receipts which
is imposed under subparagraph (i).
(2) As used in this subsection, the term "base of
operations" shall mean an actual, physical and permanent place
of business from which a taxpayer manages, directs and controls
its business activities at that location.]
* * *
(f) Such local authorities shall not have authority by
virtue of this act:
* * *
(12) To levy, assess and collect a mercantile or business
privilege tax on gross receipts. [or part thereof which are: (i)
discounts allowed to purchasers as cash discounts for prompt
payment of their bills; (ii) charges advanced by a seller for
freight, delivery or other transportation for the purchaser in
accordance with the terms of a contract of sale; (iii) received
upon the sale of an article of personal property which was
acquired by the seller as a trade-in to the extent that the
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gross receipts in the sale of the article taken in trade does
not exceed the amount of trade-in allowance made in acquiring
such article; (iv) refunds, credits or allowances given to a
purchaser on account of defects in goods sold or merchandise
returned; (v) Pennsylvania sales tax; (vi) based on the value of
exchanges or transfers between one seller and another seller who
transfers property with the understanding that property of an
identical description will be returned at a subsequent date;
however, when sellers engaged in similar lines of business
exchange property and one of them makes payment to the other in
addition to the property exchanged, the additional payment
received may be included in the gross receipts of the seller
receiving such additional cash payments; (vii) of sellers from
sales to other sellers in the same line where the seller
transfers the title or possession at the same price for which
the seller acquired the merchandise; or (viii) transfers between
one department, branch or division of a corporation or other
business entity of goods, wares and merchandise to another
department, branch or division of the same corporation or
business entity and which are recorded on the books to reflect
such interdepartmental transactions.]
* * *
Section 303. Payroll Tax.--* * *
(d) A city of the second class may enact ordinances and
regulations necessary to implement this section. [The ordinance
levy