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Bill > SB527
PA SB527
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.
summary
Introduced
03/26/2025
03/26/2025
In Committee
03/26/2025
03/26/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
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.
AI Summary
This bill updates the Local Tax Enabling Act to provide specific tax regulations for cities of the first class (primarily Philadelphia), introducing several key provisions. The bill allows first-class cities to levy local taxes with some restrictions, such as automatically terminating any city tax if the state subsequently imposes a similar tax. It prohibits these cities from taxing nonresident workers who perform all their duties outside the city, and limits taxation for workers who partially work within the city to only the portion of wages earned inside city limits. The bill also requires employers to report taxes paid to the worker's home school district and municipality, and mandates that these local governments provide tax credits to offset taxes paid to the first-class city. Additionally, the bill repeals the Sterling Act and a section of the Taxpayer Relief Act, and ensures that existing orders, regulations, and contracts under the previous law remain valid. The new regulations will take effect 180 days after passage or on January 1, 2026, whichever is later, and are designed to create more equitable tax treatment for nonresident workers in first-class cities while preserving existing administrative structures and obligations.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Referred to FINANCE (on 03/26/2025)
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