Pennsylvania HB 1220: An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, in taxation by school districts, repealing provisions relating to local tax study commission and to adoption of further referendum.

Bill Text

PRINTER'S NO. 1368
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1220
Session of
2025
INTRODUCED BY GROVE AND PICKETT, APRIL 15, 2025
REFERRED TO COMMITTEE ON EDUCATION, APRIL 15, 2025
AN ACT
Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873,
No.1), entitled "An act providing for taxation by school
districts, for the State funds formula, for tax relief in
first class cities, for school district choice and voter
participation, for other school district options and for a
task force on school cost reduction; making an appropriation;
prohibiting prior authorized taxation; providing for
installment payment of taxes; restricting the power of
certain school districts to levy, assess and collect taxes;
and making related repeals," in taxation by school districts,
repealing provisions relating to local tax study commission
and to adoption of further referendum.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 331 and 332 of the act of June 27, 2006
(1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief
Act, are repealed:
[Section 331. Local tax study commission.
(a) Appointment.--A board of school directors shall appoint
a local tax study commission prior to adopting a resolution
under section 331.2(b) or 332(b)(1). The local tax study
commission shall be appointed no later than 180 days prior to
the date on which the board of school directors is required to
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adopt a resolution under section 331.2(b) or 332(b)(1).
(b) Membership.--The local tax study commission shall
consist of five, seven or nine members who are resident
individuals or taxpayers of the school district and shall
reflect the socioeconomic, age and occupational diversity of the
school district to the extent possible, except that one member
of the local tax study commission may be a member of the board
of school directors and no member shall be an official or
employee or a relative thereof of the school district.
(c) Staff and expenses.--The school district shall provide
necessary and reasonable support staff and shall reimburse the
members of the local tax study commission for necessary and
reasonable expenses in the discharge of their duties. Receipts
shall be required for all reimbursable expenses under this
subsection.
(d) Contents of study.--The local tax study commission shall
study the existing taxes levied, assessed and collected by the
school district and the effect of any county or municipal taxes
imposed concurrently with the school district. The local tax
study commission shall determine how the tax policies of the
school district could be improved by the levy, assessment and
collection of the taxes authorized under section 321. The study
shall include consideration of all of the following:
(1) Historic and present rates of and revenue from taxes
currently levied, assessed and collected.
(2) The percentage of total revenues provided by taxes
currently levied, assessed and collected.
(3) The age, income, employment and property use
characteristics of the existing tax base.
(4) Projected revenues of taxes currently levied,
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assessed and collected, including taxes authorized and taxes
not levied under this chapter.
(e) Recommendation.--Within 90 days of its appointment, the
local tax study commission shall make a nonbinding
recommendation to the board of school directors regarding the
imposition of the taxes authorized under section 321, commencing
in the subsequent fiscal year. Prior to making its
recommendation, the local tax study commission shall hold at
least one public hearing. The recommendation of the local tax
study commission shall be presented at a public meeting of the
board of school directors. The board of school directors shall
make such recommendation available to interested persons upon
request.
(f) Failure to issue a recommendation.--If the local tax
study commission fails to make a recommendation under subsection
(e), the board of school directors shall discharge the local tax
study commission.
(g) Adoption of recommendation.--The board of school
directors shall accept or reject the recommendation of the local
tax study commission prior to adopting a resolution under
section 331.2(b) or section 332(b)(1).
(h) Materials.--All records of the local tax study
commission, including receipts, tapes, minutes of meetings and
written communications, for public inspection during the regular
business hours of the school district.
Section 332. Adoption of further referendum.
(a) General rule.--In addition to the provisions of section
331.2, a board of school directors may:
(1) Levy, assess and collect an earned income and net
profits tax authorized under section 321(b)(2) only after
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obtaining the a