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PA HB352

PA HB352
Further providing for remittance by a city of the first class to a nonresident's resident municipality and school district.


summary

Introduced
01/27/2025
In Committee
01/27/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of August 5, 1932 (Sp.Sess., P.L.45, No.45), entitled "An act empowering cities of the first class to levy, assess and collect, or to provide for the levying, assessment and collection of, certain additional taxes for general revenue purposes; authorizing the establishment of bureaus, and the appointment and compensation of officers and employes to assess and collect such taxes; and permitting penalties to be imposed and enforced," further providing for remittance by a city of the first class to a nonresident's resident municipality and school district.

AI Summary

This bill amends the Sterling Act to require cities of the first class (which typically means Philadelphia in Pennsylvania) to remit to a nonresident employee's home municipality and school district an amount equal to the wage taxes and net profits taxes that those local governments impose. In other words, if a Philadelphia resident works in another municipality and pays wage taxes to Philadelphia, Philadelphia would now be required to send a corresponding amount of tax revenue back to that employee's home municipality and school district. The bill provides a mechanism for redistributing tax revenue to support local governments where workers actually live, ensuring that their home communities receive financial benefit from their residents' earnings. The amendment will take effect 60 days after its passage, giving local governments time to prepare for the new tax remittance requirements.

Committee Categories

Budget and Finance

Sponsors (7)

Last Action

Referred to Finance (on 01/27/2025)

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