Bill > HB1146

This bill expands local government taxation and fee authority for transportation funding, specifically allowing certain counties (first class, second class, second class A, and one specific third-class county) to impose new taxes and fees to support transit systems and transportation infrastructure. Counties may now implement various taxes including a tax on liquor and beverage sales, an excise tax on rental vehicles, a real property transfer tax (not exceeding 0.5%), a surtax on individual income (up to 0.2%), a surtax on tangible personal property purchases (0.25%), an annual personal property tax on motor vehicles (up to 0.5% of fair market value), and a local services tax (up to $3 per week). The bill also allows these counties to impose a $5 additional fee per vehicle registration starting after June 30, 2025. Counties can use these funds to make grants to local transportation organizations, support transportation infrastructure, and supplement existing transportation funds. The bill clarifies administrative procedures for implementing these taxes, including collection, enforcement, and regulatory processes. Importantly, the bill specifies that these new taxation powers do not modify existing state funding formulas or local match requirements for transportation organizations, and will take effect 120 days after passage.

Government Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1146