Bill > HB1815

This bill repeals the Individual Net Income Tax Act of 1935, which was a landmark piece of legislation establishing Pennsylvania's state income tax. The original act imposed a graduated income tax on residents and non-residents, defining taxable income, requiring tax returns, and establishing procedures for assessment, collection, and enforcement. By repealing this act, the bill would effectively eliminate the state's original personal income tax framework. The bill contains a standard saving clause indicating that the repeal does not affect other tax laws, and includes a constitutional construction provision ensuring that if any part of the repeal is found unconstitutional, the remaining provisions would remain in effect. The bill would take effect immediately upon enactment, which means the state's original income tax structure would be dismantled as soon as the bill becomes law. However, the bill does not appear to provide an alternative tax structure, which could have significant implications for state revenue and public services, particularly education funding, as the original act specified that tax revenues would be directed to the State School Fund.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1815