Act 72 Homestead Tax Relief Part 1 of 3

[Blogger’s Note: This bill has been edited by the blogger to remove all struck out text from the original. Also, due to the size of the document, it will be segmented.]



PRIOR PRINTER'S NOS. 574, 992, 1027, PRINTER'S NO. 1789
1039, 1075, 1110
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 100 Session of 2003
INTRODUCED BY JUBELIRER, BRIGHTBILL, PICCOLA, RHOADES, DENT,
RAFFERTY, WENGER, TOMLINSON, ROBBINS, MADIGAN, M. WHITE,
MOWERY, CONTI, WAUGH, THOMPSON, PUNT, HELFRICK, ERICKSON,
WONDERLING AND ARMSTRONG, MARCH 24, 2003
SENATE AMENDMENTS TO HOUSE AMENDMENTS, JULY 2, 2004
AN ACT
14 PROVIDING FOR TAXATION BY SCHOOL DISTRICTS, FOR STATE FUNDS AND <-- 15 FOR WAGE AND NET PROFITS TAX RELIEF IN CITIES OF THE FIRST
16 CLASS; AND MAKING AN APPROPRIATION.

17 TABLE OF CONTENTS
18 CHAPTER 1. PRELIMINARY PROVISIONS
19 SECTION 101. SHORT TITLE.
20 SECTION 102. DEFINITIONS.
21 CHAPTER 3. TAXATION BY SCHOOL DISTRICTS
22 SUBCHAPTER A. GENERAL PROVISIONS
23 SECTION 301. SCOPE.

1 SECTION 302. DEFINITIONS.
2 SECTION 303. LIMITATIONS.
3 SECTION 304. CERTAIN RATES OF TAXATION LIMITED.
4 SUBCHAPTER B. SCHOOL DISTRICT BUDGETS
5 SECTION 311. ADOPTION OF PRELIMINARY BUDGET PROPOSALS.
6 SECTION 312. ADOPTION OF ANNUAL BUDGETS.
7 SECTION 313. INFORMATION TO SCHOOL DISTRICTS.
8 SUBCHAPTER C. GENERAL TAX AUTHORIZATION
9 SECTION 321. GENERAL TAX AUTHORIZATION.
10 SECTION 322. COLLECTIONS.
11 SECTION 323. CREDITS.
12 SECTION 324. REIMBURSEMENT.
13 SECTION 325. EXEMPTION AND SPECIAL PROVISIONS.
14 SECTION 326. REGULATIONS.
15 SECTION 327. PROPERTY TAX LIMITS ON REASSESSMENT.
16 SUBCHAPTER D. SCHOOL DISTRICT PROPERTY TAX REDUCTION
17 SECTION 331. QUALIFYING CONTRIBUTION.
18 SECTION 332. ADOPTION OF REFERENDUM.
19 SECTION 333. PUBLIC REFERENDUM REQUIREMENTS FOR INCREASING
20 CERTAIN TAXES.
21 SECTION 334. DISPOSITION OF INCOME TAX REVENUE AND PROPERTY TAX
22 REDUCTION ALLOCATIONS.
23 SUBCHAPTER E. HOMESTEAD EXCLUSION
24 SECTION 341. HOMESTEAD AND FARMSTEAD APPLICATIONS.
25 SECTION 342. HOMESTEAD AND FARMSTEAD EXCLUSION PROCESS.
26 SECTION 343. SCHOOL DISTRICT TAX NOTICES.
27 SUBCHAPTER F. REGISTER
28 SECTION 351. REGISTER FOR TAXES.
29 SECTION 352. INFORMATION FOR REGISTER.
30 SECTION 353. AVAILABILITY AND EFFECTIVE PERIOD OF REGISTER.
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1 SECTION 354. EFFECT OF NONFILING.
2 SECTION 355. EFFECT OF SUBCHAPTER ON LIABILITY OF TAXPAYER.
3 CHAPTER 5. STATE FUNDS FORMULA
4 SECTION 501. SCOPE.
5 SECTION 502. DEFINITIONS.
6 SECTION 503. CERTIFICATION; CALCULATION OF MINIMUM AND MAXIMUM
7 MODIFIERS.
8 SECTION 504. PROPERTY TAX RELIEF RESERVE FUND.
9 SECTION 505. STATE PROPERTY TAX REDUCTION ALLOCATION.
10 CHAPTER 7. TAX RELIEF IN CITIES OF THE FIRST CLASS
11 SECTION 701. SHORT TITLE.
12 SECTION 702. (RESERVED)
13 SECTION 703. TAX RELIEF.
14 SECTION 704. SENIOR CITIZEN HOMESTEAD PROPERTY TAX REDUCTION
15 IN CITIES OF THE FIRST CLASS.
16 CHAPTER 50. MISCELLANEOUS PROVISIONS
17 SECTION 5001. OTHER SUBJECTS OF TAXATION.
18 SECTION 5002. APPROPRIATION.
19 SECTION 5003. EFFECTIVE DATE.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:




CHAPTER 1 <-- 10 PRELIMINARY PROVISIONS
11 SECTION 101. SHORT TITLE.
12 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE HOMEOWNER TAX
13 RELIEF ACT.
14 SECTION 102. DEFINITIONS.
15 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
16 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
17 CONTEXT CLEARLY INDICATES OTHERWISE:
18 "ACTUAL INSTRUCTION EXPENSE." THE TERM SHALL HAVE THE SAME
19 USAGE AS IN THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS
20 THE PUBLIC SCHOOL CODE OF 1949.
21 "AVERAGE DAILY MEMBERSHIP." THE TERM SHALL HAVE THE SAME
22 USAGE AS IN THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS
23 THE PUBLIC SCHOOL CODE OF 1949.
24 "MARKET VALUE/INCOME AID RATIO." AS DEFINED IN SECTION
25 2501(14.1) OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN
26 AS THE PUBLIC SCHOOL CODE OF 1949.
27 "PERSONAL INCOME VALUATION." AS DEFINED IN SECTION 2501(9.1)
28 OF THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), KNOWN AS THE
29 PUBLIC SCHOOL CODE OF 1949.
30 CHAPTER 3
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1 TAXATION BY SCHOOL DISTRICTS
2 SUBCHAPTER A
3 GENERAL PROVISIONS
4 SECTION 301. SCOPE.
5 THIS CHAPTER RELATES TO HOMEOWNER TAX RELIEF.
6 SECTION 302. DEFINITIONS.
7 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
8 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
9 CONTEXT CLEARLY INDICATES OTHERWISE:
10 "ASSESSOR." AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
11 DEFINITIONS).
12 "BOARD OF SCHOOL DIRECTORS." A BOARD OF SCHOOL DIRECTORS OF
13 A SCHOOL DISTRICT OF THE FIRST CLASS A, SECOND CLASS, THIRD
14 CLASS OR FOURTH CLASS.
15 "CONSTRUCTION COST AVERAGE ON A SQUARE-FOOT BASIS." AN
16 AMOUNT EQUAL TO $128 PER SQUARE FOOT FOR AN ELEMENTARY SCHOOL
17 BUILDING AND $133 PER SQUARE FOOT FOR A SECONDARY SCHOOL
18 BUILDING, AS ADJUSTED ANNUALLY BY THE PERCENTAGE INCREASE IN THE
19 AVERAGE OF THE STATEWIDE AVERAGE WEEKLY WAGE AND THE EMPLOYMENT
20 COST INDEX.
21 "DEPARTMENT." THE DEPARTMENT OF EDUCATION OF THE
22 COMMONWEALTH.
23 "DOMICILE." AS DEFINED IN SECTION 13 OF THE ACT OF DECEMBER
24 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING
25 ACT.
26 "EARNED INCOME." AS DEFINED IN SECTION 13 OF THE ACT OF
27 DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
28 ENABLING ACT.
29 "ELECTION OFFICIALS." THE BOARD OF ELECTIONS OF A COUNTY.
30 "EMPLOYER." AS DEFINED IN SECTION 301 OF THE ACT OF MARCH 4,
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1 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.
2 "EMPLOYMENT COST INDEX." THE MOST RECENT OFFICIAL FIGURES,
3 FOR THE PREVIOUS 12-MONTH PERIOD BEGINNING JULY 1 AND ENDING
4 JUNE 30 FOR THE EMPLOYMENT COST INDEX SERIES FOR ELEMENTARY AND
5 SECONDARY SCHOOLS, REPORTED BY THE BUREAU OF LABOR STATISTICS OF
6 THE FEDERAL DEPARTMENT OF LABOR.
7 "FARMSTEAD." AS DEFINED IN 53 PA.C.S. § 8582 (RELATING TO
8 DEFINITIONS).
9 "FARMSTEAD PROPERTY." AS DEFINED IN 53 PA.C.S. § 8582
10 (RELATING TO DEFINITIONS).
11 "FUND." THE PROPERTY TAX RELIEF FUND ESTABLISHED IN THE
12 STATE TREASURY.
13 "HOMESTEAD." AS DEFINED IN 53 PA.C.S. § 8401 (RELATING TO
14 DEFINITIONS).
15 "HOMESTEAD PROPERTY." AS DEFINED IN 53 PA.C.S § 8401
16 (RELATING TO DEFINITIONS).
17 "INCOME TAX." A TAX ON EARNED INCOME AND NET PROFITS OR A
18 TAX ON PERSONAL INCOME IMPOSED PURSUANT TO THIS CHAPTER.
19 "INDEX." AS FOLLOWS:
20 (1) EXCEPT AS SET FORTH IN PARAGRAPH (2), THE AVERAGE OF
21 THE PERCENTAGE INCREASE IN THE STATEWIDE AVERAGE WEEKLY WAGE
22 AND THE EMPLOYMENT COST INDEX.
23 (2) FOR A SCHOOL DISTRICT WITH A MARKET-VALUE/INCOME-AID
24 RATIO GREATER THAN 0.400 FOR THE SCHOOL YEAR PRIOR TO THE
25 SCHOOL YEAR FOR WHICH THE INDEX IS CALCULATED, THE VALUE
26 UNDER PARAGRAPH (1) MULTIPLIED BY THE SUM OF:
27 (I) 0.75; AND
28 (II) THE SCHOOL DISTRICT'S MARKET-VALUE/INCOME-AID
29 RATIO FOR THE SCHOOL YEAR PRIOR TO THE SCHOOL YEAR FOR
30 WHICH THE INDEX IS CALCULATED.
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1 "LOCAL TAX ENABLING ACT." THE ACT OF DECEMBER 31, 1965
2 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX ENABLING ACT.
3 "LOCAL TAX REVENUE." THE REVENUE FROM TAXES ACTUALLY LEVIED
4 AND ASSESSED BY A SCHOOL DISTRICT, INCLUDING DELINQUENT TAXES.
5 THE TERM DOES NOT INCLUDE INTEREST OR DIVIDEND EARNINGS, FEDERAL
6 OR STATE GRANTS, CONTRACTS OR APPROPRIATIONS, INCOME GENERATED
7 FROM OPERATIONS OR ANY OTHER SOURCE WHICH IS NOT DERIVED FROM
8 TAXES LEVIED AND ASSESSED BY A SCHOOL DISTRICT.
9 "NET PROFITS." AS DEFINED IN SECTION 13 OF THE ACT OF
10 DECEMBER 31, 1965 (P.L.1257, NO.511), KNOWN AS THE LOCAL TAX
11 ENABLING ACT.
12 "PERSONAL INCOME." INCOME ENUMERATED IN SECTION 303 OF THE
13 ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE
14 OF 1971, AS DETERMINED BY THE DEPARTMENT OF REVENUE, SUBJECT TO
15 ANY CORRECTION THEREOF FOR FRAUD, EVASION OR ERROR AS FINALLY
16 DETERMINED BY THE COMMONWEALTH.
17 "RESIDENT INDIVIDUAL." AN INDIVIDUAL WHO IS DOMICILED IN A
18 SCHOOL DISTRICT.
19 "SCHOOL DISTRICT." A SCHOOL DISTRICT OF THE FIRST CLASS A,
20 SECOND CLASS, THIRD CLASS OR FOURTH CLASS.
21 "STATEWIDE AVERAGE WEEKLY WAGE." THAT AMOUNT DETERMINED BY
22 THE DEPARTMENT OF LABOR AND INDUSTRY IN THE SAME MANNER THAT IT
23 DETERMINES THE AVERAGE WEEKLY WAGE UNDER SECTION 404(E)(2) OF
24 THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897, NO.1),
25 KNOWN AS THE UNEMPLOYMENT COMPENSATION LAW, EXCEPT THAT IT SHALL
26 BE CALCULATED FOR THE PRECEDING CALENDAR YEAR.
27 "TAX REFORM CODE." THE ACT OF MARCH 4, 1971 (P.L.6, NO.2),
28 KNOWN AS THE TAX REFORM CODE OF 1971.
29 "TAXPAYER." AN INDIVIDUAL REQUIRED UNDER THIS CHAPTER TO PAY
30 A TAX.
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1 SECTION 303. LIMITATIONS.
2 THIS CHAPTER SHALL NOT BE CONSTRUED TO AFFECT THE POWER OF A
3 SCHOOL DISTRICT TO DO ANY OF THE FOLLOWING:
4 (1) TO ELIMINATE ITS OCCUPATION TAX PURSUANT TO THE ACT
5 OF JUNE 22, 2001 (P.L.374, NO.24), KNOWN AS THE OPTIONAL
6 OCCUPATION TAX ELIMINATION ACT. EXCEPT FOR THE MUNICIPAL
7 ELECTION OF 2007, OR FOR AN ELECTION IN WHICH A SCHOOL
8 DISTRICT SEEKS TO IMPOSE A PERSONAL INCOME TAX UNDER SECTION
9 321(C), A SCHOOL DISTRICT MAY PLACE SUCH REFERENDUM QUESTION
10 ON THE BALLOT AT THE SAME MUNICIPAL ELECTION AS A REFERENDUM
11 QUESTION PLACED ON THE BALLOT PURSUANT TO SUBCHAPTER D. IF A
12 SCHOOL DISTRICT CONVERTS ITS EARNED INCOME AND NET PROFITS
13 TAX TO A PERSONAL INCOME TAX UNDER THIS CHAPTER, THE SCHOOL
14 DISTRICT MAY NOT UTILIZE THE OPTIONAL OCCUPATION TAX
15 ELIMINATION ACT.
16 (2) TO LEVY, ASSESS OR COLLECT A TAX ON EARNED INCOME
17 AND NET PROFITS UNDER THE LOCAL TAX ENABLING ACT.
18 (3) TO IMPOSE SPECIAL PURPOSE TAX LEVIES APPROVED BY THE
19 ELECTORATE.
20 SECTION 304. CERTAIN RATES OF TAXATION LIMITED.
21 (A) MUNICIPAL RATES.--IF A MUNICIPALITY AND SCHOOL DISTRICT
22 BOTH IMPOSE AN EARNED INCOME AND NET PROFITS TAX ON THE SAME
23 INDIVIDUAL UNDER THE LOCAL TAX ENABLING ACT AND ARE LIMITED TO
24 OR HAVE AGREED UPON A DIVISION OF THE TAX RATE IN ACCORDANCE
25 WITH SECTION 8 OF THE LOCAL TAX ENABLING ACT, THE MUNICIPALITY
26 SHALL REMAIN SUBJECT TO THAT LIMITATION OR AGREEMENT IN THE
27 EVENT THAT THE SCHOOL DISTRICT OPTS TO IMPOSE OR INCREASE AN
28 EARNED INCOME AND NET PROFITS TAX AUTHORIZED UNDER SECTION
29 321(B) OR A PERSONAL INCOME TAX AUTHORIZED UNDER SECTION 321(C).
30 NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO AUTHORIZE A
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1 MUNICIPALITY TO RAISE THE RATE OF EARNED INCOME AND NET PROFITS
2 TAX ABOVE THE RATE IT LEVIED UNDER THE PREVIOUSLY AGREED UPON
3 DIVISION IF A SCHOOL DISTRICT IMPOSES OR INCREASES A PERSONAL
4 INCOME TAX UNDER SUBCHAPTER C.
5 (B) SCHOOL DISTRICTS.--A SCHOOL DISTRICT WHICH IMPOSES A TAX
6 UNDER THIS CHAPTER IS SUBJECT TO SECTION 688 OF THE ACT OF MARCH
7 10, 1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF
8 1949.
9 SUBCHAPTER B
10 SCHOOL DISTRICT BUDGETS
11 SECTION 311. ADOPTION OF PRELIMINARY BUDGET PROPOSALS.
12 (A) ADOPTION.--BEGINNING WITH THE FISCAL YEAR TO WHICH
13 SECTION 333 APPLIES, EACH BOARD OF SCHOOL DIRECTORS SHALL ADOPT
14 A PRELIMINARY BUDGET PROPOSAL FOR THE FOLLOWING FISCAL YEAR NO
15 LATER THAN 90 DAYS PRIOR TO THE DATE OF THE ELECTION IMMEDIATELY
16 PRECEDING THE FISCAL YEAR IN WHICH THE PRELIMINARY BUDGET WILL
17 TAKE EFFECT.
18 (B) CONTENTS.--THE PRELIMINARY BUDGET PROPOSAL SHALL INCLUDE
19 ESTIMATED REVENUES AND EXPENDITURES AND ANY PROPOSED TAX RATES
20 AND SHALL BE PREPARED ON A UNIFORM FORM FURNISHED BY THE
21 DEPARTMENT.
22 (C) PUBLIC INSPECTION.--THE BOARD OF SCHOOL DIRECTORS SHALL
23 PRINT THE PRELIMINARY BUDGET PROPOSAL AND MAKE IT AVAILABLE FOR
24 PUBLIC INSPECTION AT LEAST 20 DAYS PRIOR TO ITS ADOPTION. THE
25 BOARD OF SCHOOL DIRECTORS SHALL GIVE PUBLIC NOTICE OF ITS INTENT
26 TO ADOPT THE PRELIMINARY BUDGET AT LEAST TEN DAYS PRIOR TO
27 ADOPTION AND MAY HOLD A PUBLIC HEARING PRIOR TO ITS ADOPTION.
28 SECTION 312. ADOPTION OF ANNUAL BUDGETS.
29 (A) ADOPTION.--BEGINNING WITH THE FISCAL YEAR TO WHICH
30 SECTION 333 APPLIES, EACH BOARD OF SCHOOL DIRECTORS SHALL ADOPT
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1 ITS ANNUAL BUDGET FOR THE FOLLOWING FISCAL YEAR NO LATER THAN
2 THE LAST DAY OF THE FISCAL YEAR BEFORE THE FISCAL YEAR IN WHICH
3 THE BUDGET TAKES EFFECT.
4 (B) CONTENTS.--THE ANNUAL BUDGET SHALL INCLUDE ESTIMATED
5 REVENUES AND EXPENDITURES AND ANY PROPOSED TAX RATES AND BE
6 PREPARED ON A UNIFORM FORM FURNISHED BY THE DEPARTMENT.
7 (C) PUBLIC INSPECTION.--THE BOARD OF SCHOOL DIRECTORS SHALL
8 PRINT THE ANNUAL BUDGET AND MAKE IT AVAILABLE FOR PUBLIC
9 INSPECTION AT LEAST 20 DAYS PRIOR TO ITS ADOPTION. THE BOARD OF
10 SCHOOL DIRECTORS SHALL GIVE PUBLIC NOTICE OF ITS INTENT TO ADOPT
11 THE ANNUAL BUDGET AT LEAST TEN DAYS PRIOR TO ADOPTION AND MAY
12 HOLD A PUBLIC HEARING PRIOR TO ITS ADOPTION.
13 SECTION 313. INFORMATION TO SCHOOL DISTRICTS.
14 NO LATER THAN SEPTEMBER 30 OF THE YEAR IN WHICH A PROPERTY
15 TAX REDUCTION ALLOCATION UNDER SECTION 505 IS MADE, AND
16 SEPTEMBER 30 OF EACH YEAR THEREAFTER, THE DEPARTMENT SHALL
17 PROVIDE EACH SCHOOL DISTRICT WITH THE FOLLOWING INFORMATION:
18 (1) THE DATES BY WHICH ACTIONS REQUIRED UNDER THIS
19 CHAPTER SHALL TAKE PLACE.
20 (2) THE INDEX FOR THE APPLICABLE FISCAL YEAR.
21 SUBCHAPTER C
22 GENERAL TAX AUTHORIZATION
23 SECTION 321. GENERAL TAX AUTHORIZATION.
24 (A) GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS MAY LEVY,
25 ASSESS AND COLLECT A TAX ON EARNED INCOME AND NET PROFITS OR A
26 TAX ON PERSONAL INCOME AS PROVIDED IN THIS SECTION FOR THE
27 PURPOSE OF FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS TO REDUCE
28 SCHOOL DISTRICT PROPERTY TAXES.
29 (B) EARNED INCOME AND NET PROFITS TAX.--
30 (1) PURSUANT TO SECTION 331, A BOARD OF SCHOOL DIRECTORS
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1 MAY LEVY, ASSESS AND COLLECT A TAX OF 0.1% ON EARNED INCOME
2 AND NET PROFITS OF RESIDENT INDIVIDUALS FOR PURPOSES OF
3 QUALIFYING FOR A PROPERTY TAX REDUCTION ALLOCATION UNDER
4 CHAPTER 5 TO FUND HOMESTEAD AND FARMSTEAD EXCLUSIONS.
5 (2) IN ADDITION TO THE AUTHORIZATION PROVIDED UNDER
6 PARAGRAPH (1), A SCHOOL DISTRICT MAY, IN ACCORDANCE WITH
7 SECTION 332, LEVY AN ADDITIONAL TAX ON EARNED INCOME AND NET
8 PROFITS OF RESIDENT INDIVIDUALS FOR THE PURPOSE OF FURTHER
9 FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
10 (3) EXCEPT AS AUTHORIZED IN PARAGRAPH (4), THE COMBINED
11 RATE OF THE EARNED INCOME AND NET PROFITS TAX AUTHORIZED
12 UNDER PARAGRAPHS (1) AND (2) SHALL NOT EXCEED THE RATE
13 REQUIRED TO RAISE REVENUE WHICH, WHEN COMBINED WITH THE
14 SCHOOL DISTRICT'S PROPERTY TAX REDUCTION ALLOCATION UNDER
15 CHAPTER 5, ALL REVENUE RECEIVED UNDER SECTION 324 AND ALL
16 OTHER REVENUE CURRENTLY COLLECTED TO FUND HOMESTEAD AND
17 FARMSTEAD EXCLUSIONS, WILL BE SUFFICIENT TO FUND EXCLUSIONS
18 FOR HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY EQUAL TO THE
19 MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586 (RELATING TO
20 LIMITATIONS). THE BOARD OF SCHOOL DIRECTORS SHALL ROUND THE
21 RATE OF THE EARNED INCOME AND NET PROFITS TAX LEVIED PURSUANT
22 TO THIS SECTION TO THE NEAREST 0.1%. FOR PURPOSES OF
23 CALCULATING THE COMBINED TAX RATE, THE PORTION OF TAX
24 DEDICATED TO THE INCREASE IN REVENUE PERMITTED UNDER
25 PARAGRAPH (4), IF ANY, SHALL BE EXCLUDED.
26 (4) NOTWITHSTANDING SECTION 334, THE RATE OF THE EARNED
27 INCOME AND NET PROFITS TAX PROPOSED TO BE LEVIED AND ASSESSED
28 FOR THE FISCAL YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
29 THE TAX IS AUTHORIZED MAY PROVIDE FOR AN INCREASE IN REVENUE
30 OF NOT MORE THAN 2% OF THE ESTIMATED REVENUE FROM THE EARNED
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1 INCOME AND NET PROFITS TAX AUTHORIZED UNDER PARAGRAPH (2),
2 WHICH MAY BE USED FOR THE OPERATIONS OF THE SCHOOL DISTRICT.
3 (C) PERSONAL INCOME TAX.--
4 (1) AFTER COMPLYING WITH SECTION 331, A BOARD OF SCHOOL
5 DIRECTORS MAY LEVY, ASSESS AND COLLECT A TAX ON THE PERSONAL
6 INCOME OF RESIDENT INDIVIDUALS AT A RATE DETERMINED BY THE
7 BOARD OF SCHOOL DIRECTORS.
8 (2) A SCHOOL DISTRICT WHICH SEEKS TO LEVY THE TAX
9 AUTHORIZED UNDER PARAGRAPH (1) MUST COMPLY WITH SECTION 332
10 AND THE FOLLOWING:
11 (I) THE SCHOOL DISTRICT SHALL CONVERT, IN A REVENUE-
12 NEUTRAL MANNER, ANY EXISTING EARNED INCOME AND NET
13 PROFITS TAX RATES LEVIED PURSUANT TO ANY OTHER ACT TO A
14 PERSONAL INCOME TAX RATE.
15 (II) THE 0.1% EARNED INCOME AND NET PROFITS TAX
16 IMPOSED PURSUANT TO SECTION 331 SHALL BE CONVERTED TO A
17 PERSONAL INCOME TAX RATE WHICH GENERATES THE SAME AMOUNT
18 OF TAX REVENUE AND SHALL BE USED FOR FUNDING EXCLUSIONS
19 FOR HOMESTEAD AND FARMSTEAD PROPERTY.
20 (III) A SCHOOL DISTRICT MAY, IN ACCORDANCE WITH
21 SECTION 332, LEVY AN ADDITIONAL TAX ON THE PERSONAL
22 INCOME OF RESIDENT INDIVIDUALS FOR THE PURPOSE OF FURTHER
23 FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
24 (IV) FOR PURPOSES OF THE REFERENDUM QUESTION
25 REQUIRED UNDER SECTION 332, THE PERSONAL INCOME TAX
26 AUTHORIZED UNDER PARAGRAPH (1) SHALL BE LEVIED AT A RATE
27 WHICH, WHEN COMBINED WITH THE REVENUE GENERATED UNDER
28 SUBPARAGRAPH (II), THE SCHOOL DISTRICT'S PROPERTY TAX
29 REDUCTION ALLOCATION UNDER CHAPTER 5, ALL REVENUE
30 RECEIVED UNDER SECTION 324 AND ALL OTHER REVENUE
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1 CURRENTLY COLLECTED TO FUND HOMESTEAD AND FARMSTEAD
2 EXCLUSIONS, DOES NOT EXCEED THE TAX RATE REQUIRED TO FUND
3 EXCLUSIONS FOR HOMESTEAD AND FARMSTEAD PROPERTY EQUAL TO
4 THE MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586. THE BOARD
5 OF SCHOOL DIRECTORS SHALL ROUND THE RATE OF THE PERSONAL
6 INCOME TAX LEVIED PURSUANT TO THIS SUBPARAGRAPH TO THE
7 NEAREST 0.1%. FOR PURPOSES OF CALCULATING THE COMBINED
8 TAX RATE, THE PORTION OF TAX DEDICATED TO THE INCREASE IN
9 REVENUE PERMITTED UNDER PARAGRAPH (6), IF ANY, SHALL BE
10 EXCLUDED.
11 (3) ALL REVENUE GENERATED BY A SCHOOL DISTRICT PURSUANT
12 TO PARAGRAPH (2)(II) AND (III) SHALL BE USED AS PROVIDED IN
13 SECTION 334 FOR THE PURPOSE OF FUNDING EXCLUSIONS FOR
14 HOMESTEAD AND FARMSTEAD PROPERTY.
15 (4) IF A BOARD OF SCHOOL DIRECTORS SEEKS TO IMPOSE A
16 PERSONAL INCOME TAX UNDER THIS SUBSECTION AND THE REFERENDUM
17 UNDER SECTION 332 IS APPROVED BY THE ELECTORATE, THE BOARD OF
18 SCHOOL DIRECTORS SHALL HAVE NO AUTHORITY TO IMPOSE AN EARNED
19 INCOME AND NET PROFITS TAX UNDER SUBSECTION (B) OR UNDER ANY
20 OTHER ACT.
21 (5) A PERSONAL INCOME TAX IMPOSED UNDER THE AUTHORITY OF
22 THIS SECTION SHALL BE LEVIED BY THE SCHOOL DISTRICT ON EACH
23 OF THE CLASSES OF INCOME SPECIFIED IN SECTION 303 OF THE TAX
24 REFORM CODE AND REGULATIONS UNDER THAT SECTION, THE
25 PROVISIONS OF WHICH ARE INCORPORATED BY REFERENCE INTO THIS
26 CHAPTER.
27 (I) NOTWITHSTANDING THE PROVISIONS OF SECTION 353(F)
28 OF THE TAX REFORM CODE, THE DEPARTMENT OF REVENUE MAY
29 PERMIT THE PROPER OFFICER OR AN AUTHORIZED AGENT OF A
30 SCHOOL DISTRICT IMPOSING A PERSONAL INCOME TAX PURSUANT
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1 TO THIS CHAPTER TO INSPECT THE TAX RETURNS OF ANY
2 TAXPAYER OF THE SCHOOL DISTRICT OR MAY FURNISH TO THE
3 OFFICER OR AN AUTHORIZED AGENT AN ABSTRACT OF THE RETURN
4 OF INCOME OF ANY CURRENT OR FORMER RESIDENT OF THE SCHOOL
5 DISTRICT, OR SUPPLY INFORMATION CONCERNING ANY ITEM OF
6 INCOME CONTAINED IN ANY TAX RETURN. THE OFFICER OR
7 AUTHORIZED AGENT OF THE SCHOOL DISTRICT IMPOSING A TAX
8 UNDER THIS CHAPTER SHALL BE FURNISHED THE REQUESTED
9 INFORMATION UPON PAYMENT TO THE DEPARTMENT OF REVENUE OF
10 THE ACTUAL COST OF PROVIDING THE REQUESTED INFORMATION.
11 (II) (A) EXCEPT FOR OFFICIAL PURPOSES OR AS
12 PROVIDED BY LAW, IT SHALL BE UNLAWFUL FOR ANY OFFICER
13 OR AUTHORIZED AGENT OF A SCHOOL DISTRICT TO DO ANY OF
14 THE FOLLOWING:
15 (I) DISCLOSE TO ANY OTHER INDIVIDUAL OR
16 ENTITY THE AMOUNT OR SOURCE OF INCOME, PROFITS,
17 LOSSES, EXPENDITURES OR ANY PARTICULAR
18 INFORMATION CONCERNING INCOME, PROFITS, LOSSES OR
19 EXPENDITURES CONTAINED IN ANY RETURN.
20 (II) PERMIT ANY OTHER INDIVIDUAL OR ENTITY
21 TO VIEW OR EXAMINE ANY RETURN OR COPY OF A RETURN
22 OR ANY BOOK CONTAINING ANY ABSTRACT OR
23 PARTICULARS.
24 (III) PRINT, PUBLISH OR PUBLICIZE IN ANY
25 MANNER ANY RETURN; ANY PARTICULAR INFORMATION
26 CONTAINED IN OR CONCERNING THE RETURN; ANY AMOUNT
27 OR SOURCE OF INCOME, PROFITS, LOSSES OR
28 EXPENDITURES IN OR CONCERNING THE RETURN; OR ANY
29 PARTICULAR INFORMATION CONCERNING INCOME,
30 PROFITS, LOSSES OR EXPENDITURES CONTAINED IN OR
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1 RELATING TO ANY RETURN.
2 (B) ANY OFFICER OR AUTHORIZED AGENT OF A SCHOOL
3 DISTRICT THAT VIOLATES CLAUSE (A):
4 (I) MAY BE FINED NOT MORE THAN $1,000 OR
5 IMPRISONED FOR NOT MORE THAN ONE YEAR, OR BOTH.
6 (II) MAY BE REMOVED FROM OFFICE OR
7 DISCHARGED FROM EMPLOYMENT.
8 (6) NOTWITHSTANDING SECTION 334, THE RATE OF THE
9 PERSONAL INCOME TAX PROPOSED TO BE LEVIED AND ASSESSED FOR
10 THE FIRST FISCAL YEAR IMMEDIATELY FOLLOWING THE YEAR IN WHICH
11 THE TAX IS AUTHORIZED MAY PROVIDE FOR AN INCREASE IN REVENUE
12 OF NOT MORE THAN 2% OF THE ESTIMATED REVENUE FROM THE
13 PERSONAL INCOME TAX AUTHORIZED UNDER PARAGRAPH (2)(III),
14 WHICH MAY BE USED FOR THE OPERATIONS OF THE SCHOOL DISTRICT.
15 (D) EXECUTION OF TAX RATE.--AN EARNED INCOME AND NET PROFITS
16 TAX RATE OR PERSONAL INCOME TAX RATE AUTHORIZED UNDER THIS
17 SECTION AND IMPOSED PURSUANT TO SECTION 331 SHALL BE SELF-
18 EXECUTING AND SHALL BE EFFECTIVE BEGINNING ON THE FIRST DAY OF
19 THE FISCAL YEAR IN WHICH A SCHOOL DISTRICT WILL RECEIVE A
20 PAYMENT UNDER SECTION 505(B). A TAX AUTHORIZED UNDER SECTION 332
21 SHALL BE SELF-EXECUTING AND SHALL BE EFFECTIVE BEGINNING ON THE
22 FIRST DAY OF THE FISCAL YEAR WHICH BEGINS AFTER THE TAX IS
23 AUTHORIZED. A TAX RATE UNDER THIS SUBSECTION SHALL CONTINUE IN
24 FORCE ON A FISCAL YEAR BASIS WITHOUT ANNUAL REENACTMENT EXCEPT
25 IN A YEAR IN WHICH THE RATE OF THE TAX IS CHANGED OR THE TAX IS
26 REPEALED.
27 SECTION 322. COLLECTIONS.
28 (A) DESIGNATION OF TAX COLLECTOR.--A BOARD OF SCHOOL
29 DIRECTORS IMPOSING AN INCOME TAX UNDER THIS CHAPTER SHALL
30 DESIGNATE A TAX OFFICER UNDER SECTION 10 OF THE LOCAL TAX
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1 ENABLING ACT, OR OTHERWISE BY LAW, AS THE COLLECTOR OF THE TAX.
2 IN THE PERFORMANCE OF THE TAX COLLECTION DUTIES UNDER THIS
3 SUBCHAPTER, THE DESIGNATED TAX OFFICER SHALL HAVE ALL THE SAME
4 POWERS, RIGHTS, RESPONSIBILITIES AND DUTIES FOR THE COLLECTION
5 OF THE TAXES WHICH MAY BE IMPOSED UNDER THE LOCAL TAX ENABLING
6 ACT, 53 PA.C.S. CH. 84 SUBCH. C (RELATING TO LOCAL TAXPAYERS
7 BILL OF RIGHTS) OR AS OTHERWISE PROVIDED BY LAW.
8 (B) CONFLICT.--IN ANY SITUATION WHERE THERE IS A CONFLICT
9 INVOLVING THE AUTHORITY CONFERRED ON A LOCAL TAX COLLECTOR BY
10 THE PROVISIONS OF THE LOCAL TAX ENABLING ACT AND THE TAX REFORM
11 CODE, THE PROVISIONS OF THE LOCAL TAX ENABLING ACT SHALL
12 CONTROL.
13 SECTION 323. CREDITS.
14 (A) CREDIT.--EXCEPT AS SET FORTH IN SUBSECTION (B), THE
15 PROVISIONS OF SECTION 14 OF THE LOCAL TAX ENABLING ACT SHALL BE
16 APPLIED BY A BOARD OF SCHOOL DIRECTORS TO DETERMINE ANY CREDITS
17 APPLICABLE TO A TAX IMPOSED UNDER SECTION 321.
18 (B) LIMITATION.--PAYMENT OF ANY TAX ON INCOME TO ANY STATE
19 OTHER THAN PENNSYLVANIA OR TO ANY POLITICAL SUBDIVISION LOCATED
20 OUTSIDE THE BOUNDARIES OF THIS COMMONWEALTH, BY A RESIDENT OF A
21 SCHOOL DISTRICT LOCATED IN THIS COMMONWEALTH, SHALL NOT BE
22 CREDITED TO AND ALLOWED AS A DEDUCTION FROM THE LIABILITY OF
23 SUCH PERSON FOR ANY INCOME TAX IMPOSED BY THE SCHOOL DISTRICT OF
24 RESIDENCE PURSUANT TO THIS CHAPTER.
25 SECTION 324. REIMBURSEMENT.
26 NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY,
27 THE FOLLOWING APPLY:
28 (1) THIS SECTION ONLY APPLIES TO A TAXPAYER WHO IS A
29 RESIDENT OF THIS COMMONWEALTH AND NOT A RESIDENT OF A CITY OF
30 THE FIRST CLASS BUT WHO IS SUBJECT TO THE TAX ON SALARIES,
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1 WAGES, COMMISSIONS OR OTHER COMPENSATION IMPOSED BY A CITY OF
2 THE FIRST CLASS UNDER THE AUTHORITY OF THE ACT OF AUGUST 5,
3 1932 (SP.SESS., P.L.45, NO.45), REFERRED TO AS THE STERLING
4 ACT.
5 (2) FOR TAX YEARS BEGINNING IN THE FIRST CALENDAR YEAR
6 IN WHICH A PAYMENT UNDER SECTION 505(B) IS MADE AND EACH TAX
7 YEAR THEREAFTER, PAYMENT OF A TAX ON SALARIES, WAGES,
8 COMMISSIONS OR OTHER COMPENSATION AS SET FORTH IN PARAGRAPH
9 (1) SHALL BE CREDITED TO THE SCHOOL DISTRICT OF THE
10 TAXPAYER'S RESIDENCE AT AN AMOUNT NO GREATER THAN THE TAX ON
11 SALARIES, WAGES, COMMISSIONS OR OTHER COMPENSATION AS SET
12 FORTH IN PARAGRAPH (1) IMPOSED BY THE SCHOOL DISTRICT IN
13 WHICH THE TAXPAYER RESIDES.
14 (3) EXCEPT AS SET FORTH IN PARAGRAPH (4), AN AMOUNT
15 EQUAL TO THE AGGREGATE AMOUNT OF THE TAX CREDITED UNDER
16 PARAGRAPH (2) SHALL BE PAID FROM THE FUND TO THE SCHOOL
17 DISTRICT OF RESIDENCE OF EACH TAXPAYER UNDER PARAGRAPH (1)
18 FOR THE PURPOSE OF FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS
19 IN ACCORDANCE WITH THIS CHAPTER. THE DEPARTMENT SHALL
20 PRESCRIBE PROCEDURES TO CALCULATE THE AMOUNT DUE TO EACH
21 SCHOOL DISTRICT QUALIFYING UNDER THIS PARAGRAPH, AND SHALL
22 PUBLISH THE PROCEDURES IN THE PENNSYLVANIA BULLETIN.
23 (4) NOTWITHSTANDING PARAGRAPH (3), IF THE CERTIFICATION
24 UNDER SECTION 503(A)(1)(I) IS LESS THAN $750,000,000, EACH
25 ELIGIBLE SCHOOL DISTRICT SHALL RECEIVE A PRO RATA SHARE OF
26 THE REIMBURSEMENT CALCULATED UNDER THIS SECTION AT
27 $750,000,000.
28 SECTION 325. EXEMPTION AND SPECIAL PROVISIONS.
29 (A) EARNED INCOME AND NET PROFITS TAX.--A SCHOOL DISTRICT
30 THAT IMPOSES AN EARNED INCOME AND NET PROFITS TAX AUTHORIZED
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1 UNDER SECTION 321(B) MAY EXEMPT FROM THE PAYMENT OF THAT TAX ANY
2 PERSON WHOSE TOTAL INCOME FROM ALL SOURCES IS LESS THAN $10,000.
3 (B) APPLICABILITY TO PERSONAL INCOME TAX.--SECTION 304 OF
4 THE TAX REFORM CODE SHALL APPLY TO ANY PERSONAL INCOME TAX
5 LEVIED BY A SCHOOL DISTRICT UNDER SECTION 321(C).
6 SECTION 326. REGULATIONS.
7 A SCHOOL DISTRICT THAT IMPOSES:
8 (1) AN EARNED INCOME AND NET PROFITS TAX AUTHORIZED
9 UNDER SECTION 321(B) SHALL BE SUBJECT TO SECTION 13 OF THE
10 LOCAL TAX ENABLING ACT AND MAY ADOPT PROCEDURES FOR THE
11 PROCESSING OF CLAIMS FOR CREDITS OR EXEMPTIONS UNDER SECTIONS
12 323, 324 AND 325; OR
13 (2) A PERSONAL INCOME TAX AUTHORIZED UNDER SECTION
14 321(C) SHALL BE SUBJECT TO ALL REGULATIONS ADOPTED BY THE
15 DEPARTMENT OF REVENUE IN ADMINISTERING THE TAX DUE TO THE
16 COMMONWEALTH UNDER ARTICLE III OF THE TAX REFORM CODE.
17 SECTION 327. PROPERTY TAX LIMITS ON REASSESSMENT.
18 NOTWITHSTANDING ANY OTHER PROVISION OF LAW, INCLUDING THIS
19 ACT, AFTER ANY COUNTY MAKES A COUNTYWIDE REVISION OF ASSESSMENT
20 OF REAL PROPERTY AT VALUES BASED UPON AN ESTABLISHED
21 PREDETERMINED RATIO AS REQUIRED BY LAW OR AFTER ANY COUNTY
22 CHANGES ITS ESTABLISHED PREDETERMINED RATIO, A BOARD OF SCHOOL
23 DIRECTORS IN A SCHOOL DISTRICT LOCATED WITHIN THAT COUNTY THAT
24 HAS ADOPTED A RESOLUTION IMPOSING THE TAX UNDER SECTION 331 OR
25 IN WHICH A REFERENDUM UNDER SECTION 332 HAS BEEN APPROVED BY THE
26 ELECTORATE, WHICH AFTER THE EFFECTIVE DATE OF THIS SECTION, FOR
27 THE FIRST TIME LEVIES ITS REAL ESTATE TAXES ON THAT REVISED
28 ASSESSMENT OR VALUATION, SHALL FOR THE FIRST YEAR REDUCE ITS TAX
29 RATE, IF NECESSARY, FOR THE PURPOSE OF HAVING THE PERCENTAGE
30 INCREASE IN TAXES LEVIED FOR THAT YEAR AGAINST THE REAL
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1 PROPERTIES CONTAINED IN THE DUPLICATE FOR THE PRECEDING YEAR BE
2 LESS THAN OR EQUAL TO THE INDEX FOR THE PRECEDING YEAR
3 NOTWITHSTANDING THE INCREASED VALUATIONS OF SUCH PROPERTIES
4 UNDER THE REVISED ASSESSMENT. FOR THE PURPOSE OF DETERMINING THE
5 TOTAL AMOUNT OF TAXES TO BE LEVIED FOR THE FIRST YEAR, THE
6 AMOUNT TO BE LEVIED ON NEWLY CONSTRUCTED BUILDINGS OR STRUCTURES
7 OR ON INCREASED VALUATIONS BASED ON NEW IMPROVEMENTS MADE TO
8 EXISTING HOUSES NEED NOT BE CONSIDERED. THE TAX RATE SHALL BE
9 FIXED FOR THAT YEAR AT A FIGURE WHICH WILL ACCOMPLISH THIS
10 PURPOSE. THE PROVISIONS OF SECTION 333 SHALL APPLY TO INCREASES
11 IN THE TAX RATE ABOVE THE LIMITS PROVIDED IN THIS SECTION.
12 SUBCHAPTER D
13 SCHOOL DISTRICT PROPERTY TAX REDUCTION
14 SECTION 331. QUALIFYING CONTRIBUTION.
15 (A) GENERAL RULE.--EXCEPT AS SET FORTH IN SUBSECTION (B), A
16 SCHOOL DISTRICT SHALL, BY RESOLUTION, LEVY, ASSESS AND COLLECT
17 THE 0.1% EARNED INCOME AND NET PROFITS TAX AUTHORIZED UNDER
18 SECTION 321(B)(1) IN ORDER TO QUALIFY FOR A PROPERTY TAX
19 REDUCTION ALLOCATION UNDER SECTION 505. THE BOARD OF SCHOOL
20 DIRECTORS SHALL ADOPT THE RESOLUTION BY MAY 30 OF THE FIRST YEAR
21 IN WHICH A CERTIFICATION UNDER SECTION 503(A) IS MADE. WITHIN
22 FIVE DAYS AFTER ADOPTING THE RESOLUTION, THE BOARD OF SCHOOL
23 DIRECTORS SHALL NOTIFY THE DEPARTMENT IN A FORM AND MANNER
24 PRESCRIBED BY THE DEPARTMENT IN ORDER TO ESTABLISH THE SCHOOL
25 DISTRICT'S ELIGIBILITY TO RECEIVE A PROPERTY TAX REDUCTION
26 ALLOCATION PURSUANT TO CHAPTER 5.
27 (B) EXCEPTION.--SUBSECTION (A) SHALL NOT APPLY IF ANY OF THE
28 FOLLOWING APPLY:
29 (1) A SCHOOL DISTRICT WHICH DOES NOT, PRIOR TO MAY 30 OF
30 THE YEAR IN WHICH A SCHOOL DISTRICT WILL RECEIVE A PAYMENT
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1 UNDER SECTION 505(B), IMPOSE AN EARNED INCOME AND NET PROFITS
2 TAX UNDER THE LOCAL TAX ENABLING ACT OR ANY OTHER STATUTE,
3 MAY QUALIFY FOR A PROPERTY TAX REDUCTION ALLOCATION UNDER
4 CHAPTER 5 WITHOUT LEVYING THE TAX REQUIRED UNDER SUBSECTION
5 (A) IF THE SCHOOL DISTRICT PROPOSES A REFERENDUM REQUIRED
6 UNDER SECTION 332(E). THE BOARD OF SCHOOL DIRECTORS SHALL
7 ADOPT A RESOLUTION PROPOSING A REFERENDUM BY MAY 30 OF THE
8 YEAR IN WHICH A CERTIFICATION UNDER SECTION 503(A) IS MADE.
9 WITHIN FIVE DAYS AFTER ADOPTING THE RESOLUTION, THE BOARD OF
10 SCHOOL DIRECTORS SHALL NOTIFY THE DEPARTMENT IN A FORM AND
11 MANNER PRESCRIBED BY THE DEPARTMENT IN ORDER TO ESTABLISH THE
12 SCHOOL DISTRICT'S ELIGIBILITY TO RECEIVE A PROPERTY TAX
13 REDUCTION ALLOCATION PURSUANT TO CHAPTER 5. IF A REFERENDUM
14 PROPOSED UNDER SECTION 332(E) IS NOT APPROVED BY THE
15 ELECTORATE, A DISTRICT SHALL ENACT, BY RESOLUTION, THE 0.1%
16 EARNED INCOME NET PROFITS TAX AUTHORIZED UNDER SECTION
17 321(B)(1) IN ORDER TO MAINTAIN ELIGIBILITY FOR A PROPERTY TAX
18 REDUCTION ALLOCATION UNDER CHAPTER 5.
19 (2) A REFERENDUM PROPOSED UNDER SECTION 332(D.1) IS
20 APPROVED BY THE ELECTORATE.
21 SECTION 332. ADOPTION OF REFERENDUM.
22 (A) GENERAL RULE.--A BOARD OF SCHOOL DIRECTORS THAT COMPLIES
23 WITH SECTION 331 MAY LEVY, ASSESS AND COLLECT AN EARNED INCOME
24 AND NET PROFITS TAX AUTHORIZED UNDER SECTION 321(B)(2) OR A
25 PERSONAL INCOME TAX AUTHORIZED UNDER SECTION 321(C), ONLY AFTER
26 OBTAINING THE APPROVAL OF THE ELECTORATE OF THE SCHOOL DISTRICT
27 IN A PUBLIC REFERENDUM.
28 (B) SUBMITTAL OF REFERENDUM.--IN ADDITION TO THE REFERENDUM
29 QUESTION REQUIRED UNDER SUBSECTION (E):
30 (1) A BOARD OF SCHOOL DIRECTORS MAY SUBMIT, AT A
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1 MUNICIPAL ELECTION, A REFERENDUM QUESTION TO THE ELECTORS OF
2 THE SCHOOL DISTRICT SEEKING VOTER APPROVAL ALLOWING THE
3 SCHOOL DISTRICT TO LEVY, ASSESS AND COLLECT AN EARNED INCOME
4 AND NET PROFITS TAX OR A PERSONAL INCOME TAX FOR THE PURPOSE
5 OF ANNUALLY FUNDING HOMESTEAD AND FARMSTEAD EXCLUSIONS. PRIOR
6 TO PLACING A REFERENDUM QUESTION ON THE BALLOT, THE BOARD OF
7 SCHOOL DIRECTORS MUST ADOPT A RESOLUTION PURSUANT TO THIS
8 CHAPTER. THE BOARD OF SCHOOL DIRECTORS MUST GIVE PUBLIC
9 NOTICE OF ITS INTENT TO ADOPT THE RESOLUTION IN THE MANNER
10 PROVIDED BY SECTION 4 OF THE LOCAL TAX ENABLING ACT AND MUST
11 CONDUCT AT LEAST ONE PUBLIC HEARING ON THE RESOLUTION.
12 (2) THE BOARD OF SCHOOL DIRECTORS SHALL SUBMIT THE
13 REFERENDUM QUESTION REQUIRED UNDER THIS SECTION TO THE
14 ELECTION OFFICIALS OF EACH COUNTY IN WHICH THE SCHOOL
15 DISTRICT IS SITUATE NO LATER THAN 60 DAYS PRIOR TO A
16 MUNICIPAL ELECTION. THE ELECTION OFFICIALS SHALL CAUSE THE
17 REFERENDUM QUESTION TO BE SUBMITTED TO THE ELECTORS OF THE
18 SCHOOL DISTRICT.
19 (3) THE REFERENDUM QUESTION SHALL STATE THE RATE OF THE
20 PROPOSED EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME
21 TAX TO BE LEVIED, THE REASON FOR THE TAX, THE ESTIMATED PER
22 HOMESTEAD TAX REDUCTION AND THE CURRENT RATE OF EARNED INCOME
23 AND NET PROFITS OR PERSONAL INCOME TAX LEVIED BY THE SCHOOL
24 DISTRICT. THE QUESTION SHALL BE CLEAR AND IN LANGUAGE THAT IS
25 READILY UNDERSTANDABLE BY A LAYPERSON AND SHALL BE FRAMED IN
26 ONE OF THE FOLLOWING FORMS WITH THE SCHOOL DISTRICT
27 RESOLUTION ENUMERATING THE VARIABLE AMOUNTS REPRESENTED BY
28 THE TERMS X, Y AND Z:
29 (I) DO YOU FAVOR IMPOSING AN ADDITIONAL X% (INSERT
30 NAME OF TAX)? THE REVENUE GENERATED FROM THE INCREASED
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1 TAX RATE WILL BE USED TO REDUCE TAXES ON QUALIFIED
2 RESIDENTIAL PROPERTY BY AN ESTIMATED AMOUNT OF $Y. THE
3 CURRENT (INSERT NAME OF TAX) FOR THE SCHOOL DISTRICT IS
4 Z%.
5 (II) DO YOU FAVOR CONVERTING THE SCHOOL DISTRICT'S
6 CURRENT EARNED INCOME AND NET PROFITS TAX INTO A PERSONAL
7 INCOME TAX AT X%? THE REVENUE GENERATED FROM THE PERSONAL
8 INCOME TAX WILL BE USED TO REDUCE TAXES ON QUALIFIED
9 RESIDENTIAL PROPERTY BY AN ESTIMATED AMOUNT OF $Y AND TO
10 REPLACE THE REVENUE FROM THE CURRENT SCHOOL DISTRICT'S
11 EARNED INCOME AND NET PROFITS TAX, WHICH IS NOW LEVIED AT
12 Z%.
13 (4) THE ELECTION OFFICIALS OF EACH COUNTY SHALL, IN
14 CONSULTATION WITH THE BOARD OF SCHOOL DIRECTORS, DRAFT A
15 NONLEGAL INTERPRETATIVE STATEMENT WHICH SHALL ACCOMPANY THE
16 REFERENDUM QUESTION IN ACCORDANCE WITH SECTION 201.1 OF THE
17 ACT OF JUNE 3, 1937 (P.L.1333, NO.320), KNOWN AS THE
18 PENNSYLVANIA ELECTION CODE. THE NONLEGAL INTERPRETATIVE
19 STATEMENT SHALL INFORM THE VOTERS OF:
20 (I) THE REASON FOR THE TAX;
21 (II) THE ESTIMATED INCREASE IN REVENUE WHICH THE
22 BOARD HAS INCLUDED IN THE PROPOSED TAX RATE, AS
23 AUTHORIZED UNDER SECTION 321(B)(4) OR SECTION 321(C)(6);
24 (III) THE ESTIMATED PER HOMESTEAD TAX REDUCTION; AND
25 (IV) THE CURRENT RATE OF EARNED INCOME AND NET
26 PROFITS TAX OR, IF APPLICABLE, PERSONAL INCOME TAX LEVIED
27 BY THE SCHOOL DISTRICT.
28 (C) PROPOSED TAX RATE.--THE PROPOSED RATE OF THE EARNED
29 INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX SHALL BE
30 ESTABLISHED BY THE BOARD OF SCHOOL DIRECTORS OF THE SCHOOL
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1 DISTRICT, IN ACCORDANCE WITH THE FOLLOWING:
2 (1) FOR THE MUNICIPAL ELECTION OF 2007, THE PROPOSED TAX
3 RATE SHALL NOT BE LESS THAN THE RATE REQUIRED TO PROVIDE AN
4 EXCLUSION FOR HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY EQUAL
5 TO 50% OF THE MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586
6 (RELATING TO LIMITATIONS). THE PROPOSED TAX RATE SHALL NOT
7 EXCEED THE RATE REQUIRED TO PROVIDE AN EXCLUSION FOR
8 HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY EQUAL TO THE
9 MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586. IN CALCULATING THE
10 PROPOSED MINIMUM TAX RATE UNDER THIS PARAGRAPH, A SCHOOL
11 DISTRICT SHALL INCLUDE:
12 (I) FUNDS GENERATED FROM THE TAX IMPOSED UNDER
13 SECTION 331;
14 (II) FUNDS RECEIVED PURSUANT TO A PROPERTY TAX
15 REDUCTION ALLOCATION UNDER CHAPTER 5;
16 (III) FUNDS RECEIVED UNDER SECTION 324(B); AND
17 (IV) ANY FUNDS CURRENTLY COLLECTED FOR THE PURPOSES
18 OF PROVIDING HOMESTEAD AND FARMSTEAD EXCLUSIONS.
19 (2) FOR SUBSEQUENT MUNICIPAL ELECTIONS, THE PROPOSED TAX
20 RATE SHALL NOT EXCEED THE RATE REQUIRED TO PROVIDE AN
21 EXCLUSION FOR HOMESTEAD PROPERTY AND FARMSTEAD PROPERTY EQUAL
22 TO THE MAXIMUM EXCLUSION UNDER 53 PA.C.S. § 8586.
23 (D) EFFECTIVE DATE.--WHERE THE REFERENDUM QUESTION UNDER
24 THIS SECTION IS APPROVED BY THE ELECTORATE, THE NEW RATE OF THE
25 EARNED INCOME AND NET PROFITS TAX OR PERSONAL INCOME TAX SHALL
26 TAKE EFFECT PURSUANT TO SECTION 321(D).
27 (D.1) MUNICIPAL ELECTION OF 2005.--IN ACCORDANCE WITH
28 SUBSECTION (B), A BOARD OF SCHOOL DIRECTORS MAY PROPOSE A
29 REFERENDUM QUESTION AT THE MUNICIPAL ELECTION OF 2005. IF A
30 REFERENDUM QUESTION UNDER THIS SUBSECTION IS APPROVED BY THE
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