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Bill > HB1582
PA HB1582
PA HB1582In local taxes, further providing for delegation of taxing powers and restrictions thereon, for payroll tax and for limitations on rates of specific taxes and providing for expiration of business gross receipts tax.
summary
Introduced
06/10/2025
06/10/2025
In Committee
06/10/2025
06/10/2025
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," in local taxes, further providing for delegation of taxing powers and restrictions thereon, for payroll tax and for limitations on rates of specific taxes and providing for expiration of business gross receipts tax.
AI Summary
This bill makes several changes to The Local Tax Enabling Act, primarily affecting how local governments can levy business taxes. The bill eliminates certain provisions related to business privilege and gross receipts taxes, specifically removing detailed rules about what types of receipts can be taxed, such as discounts, freight charges, and sales tax. It removes the specific tax rate schedules for cities of the second class, which previously outlined how business privilege taxes would be gradually reduced. Most significantly, the bill establishes a sunset provision that will cause all mercantile, business privilege, and business gross receipts taxes to expire on December 31, 2025, after which local political subdivisions will be prohibited from levying such taxes. The bill aims to simplify and ultimately phase out certain local business taxation methods, providing clarity and potential tax relief for businesses operating in Pennsylvania's local jurisdictions. The changes will take effect in stages, with some provisions becoming active immediately and others taking effect on December 31, 2026.
Committee Categories
Budget and Finance
Sponsors (5)
Last Action
Referred to Finance (on 06/10/2025)
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