Pennsylvania SB 527: An Act amending the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, further providing for title of act; providing for local taxes in cities of the first class, for prohibition of tax on certain individuals and for reimbursement of taxes; and making repeals.

Bill Text

PRINTER'S NO. 500
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 527
Session of
2025
INTRODUCED BY FARRY, PENNYCUICK, ROTHMAN, LAUGHLIN AND MARTIN,
MARCH 26, 2025
REFERRED TO FINANCE, MARCH 26, 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,"
further providing for title of act; providing for local taxes
in cities of the first class, for prohibition of tax on
certain individuals and for reimbursement of taxes; and
making repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of December 31, 1965
(P.L.1257, No.511), known as The Local Tax Enabling Act, is
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amended to read:
AN ACT
Empowering cities of the first class, 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.
Section 2. The act is amended by adding a chapter to read:
CHAPTER 6
LOCAL TAXES IN CITIES OF THE FIRST CLASS
Section 601. Authority to levy taxes.
(a) Authorization.--
(1) The council of a city of the first class shall have
the authority, by ordinance, for general revenue purposes, to
levy, assess and collect taxes or provide for the levying,
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assessment and collection of taxes on persons, transactions,
occupations, privileges, subjects and personal property
within the limits of a city of the first class, as it shall
determine, except that the council shall not have the
authority to levy, assess and collect a tax or provide for
the levying, assessment and collection of a tax on a
privilege, transaction, subject or occupation, or on personal
property, which is or may become subject to a State tax or
license fee.
(2) If, subsequent to the passage of an ordinance under
the authority of this chapter, the General Assembly enacts a
tax or license fee on a privilege, transaction, subject or
occupation, or on personal property taxed by a city of the
first class under this chapter, the act imposing the State
tax or license fee shall automatically vacate the city
ordinance passed under the authority of this chapter as to
all taxes accruing subsequent to the effective date of the
act imposing the State tax or license fee.
(3) It is the intention of this section to confer upon
cities of the first class the power to levy, assess and
collect taxes upon any and all subjects of taxation which the
Commonwealth has power to tax but which it does not now tax
or license, subject only to this section, that any tax upon a
subject which the Commonwealth may tax or license shall
automatically terminate upon the effective date of the State
act imposing the new tax or license fee.
(b) Prohibition of tax on salaries, wages, c