HB 2523 — An Act amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act, repealing provisions relating to local tax study commission; and making editorial changes to incorrect references.

PRIOR PRINTER'S NO.

3792 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

4109 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

O'NEILL, SCHLEGEL CULVER, DAY, GROVE, MACKENZIE,TOOHIL, MILLARD,WHEELAND, B.HEFFLEY AND COX, JUNE 21, 2018YAN, SAYLOR, REFERRED TO COMMITTEE ON FINANCE, JUNE 21, 2018 AN ACT Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), entitled "An act providing for taxation by school districts, for the State funds formula, for tax relief in first class cities, for school district choice and voter participation, for other school district options and for a task force on school cost reduction;

MILLER, RADER, ROTHMAN, RYAN, SAYLOR, TOOHIL, WHEELAND, HEFFLEY, COX, EVERETT, ZIMMERMAN AND GILLEN, JUNE 21, 2018 AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 26, 2018 AN ACT Amending the act of June 27, 2006 (1st Sp.Sess., P.L.1873, districts, for the State funds formula, for tax relief in first class cities, for school district choice and voter participation, for other school district options and for a task force on school cost reduction;

restricting the power of certainand schoolmaking districtsrelated torepeals," levy,making assesseditorial andchanges collecttoes; taxes;

andincorrect makingreferences. related repeals," REPEALING PROVISIONS RELATING TO <-- LOCAL TAX STUDY COMMISSION;

AND making editorial changes to incorrect references.

Sections 304(a), 322(a), 323(a), AND 326(1), <-- 331.2(b), 332(b)(1), 334(c)(2) and 5005(2) of the act are amended to read:

Nothing in this chapter shall be construed to authorize a municipality to raise the rate of earned income and net profits tax above the rate it levied under the previously agreed upon division if a school district imposes or increases a 20180HB2523PN4109 - 2 - personal income tax under Subchapter C.

* * * 20180HB2523PN3792 - 2 - Section 322.

or * * * SECTIONSection 3.331.2.

SECTION 331 OF THE ACT IS REPEALED:

<-- [SECTION 331.

LOCAL TAX STUDY COMMISSION.

20180HB2523PN4109 - 3 - (A) APPOINTMENT.--A BOARD OF SCHOOL DIRECTORS SHALL APPOINT A LOCAL TAX STUDY COMMISSION PRIOR TO ADOPTING A RESOLUTION UNDER SECTION 331.2(B) OR 332(B)(1).

THE LOCAL TAX STUDY COMMISSION SHALL BE APPOINTED NO LATER THAN 180 DAYS PRIOR TO THE DATE ON WHICH THE BOARD OF SCHOOL DIRECTORS IS REQUIRED TO ADOPT A RESOLUTION UNDER SECTION 331.2(B) OR 332(B)(1).

(B) MEMBERSHIP.--THE LOCAL TAX STUDY COMMISSION SHALL CONSIST OF FIVE, SEVEN OR NINE MEMBERS WHO ARE RESIDENT INDIVIDUALS OR TAXPAYERS OF THE SCHOOL DISTRICT AND SHALL REFLECT THE SOCIOECONOMIC, AGE AND OCCUPATIONAL DIVERSITY OF THE SCHOOL DISTRICT TO THE EXTENT POSSIBLE, EXCEPT THAT ONE MEMBER OF THE LOCAL TAX STUDY COMMISSION MAY BE A MEMBER OF THE BOARD OF SCHOOL DIRECTORS AND NO MEMBER SHALL BE AN OFFICIAL OR EMPLOYEE OR A RELATIVE THEREOF OF THE SCHOOL DISTRICT.

(C) STAFF AND EXPENSES.--THE SCHOOL DISTRICT SHALL PROVIDE NECESSARY AND REASONABLE SUPPORT STAFF AND SHALL REIMBURSE THE MEMBERS OF THE LOCAL TAX STUDY COMMISSION FOR NECESSARY AND REASONABLE EXPENSES IN THE DISCHARGE OF THEIR DUTIES.

RECEIPTS SHALL BE REQUIRED FOR ALL REIMBURSABLE EXPENSES UNDER THIS SUBSECTION.

(D) CONTENTS OF STUDY.--THE LOCAL TAX STUDY COMMISSION SHALL STUDY THE EXISTING TAXES LEVIED, ASSESSED AND COLLECTED BY THE SCHOOL DISTRICT AND THE EFFECT OF ANY COUNTY OR MUNICIPAL TAXES IMPOSED CONCURRENTLY WITH THE SCHOOL DISTRICT.

THE LOCAL TAX STUDY COMMISSION SHALL DETERMINE HOW THE TAX POLICIES OF THE SCHOOL DISTRICT COULD BE IMPROVED BY THE LEVY, ASSESSMENT AND COLLECTION OF THE TAXES AUTHORIZED UNDER SECTION 321.

THE STUDY SHALL INCLUDE CONSIDERATION OF ALL OF THE FOLLOWING:

(1) HISTORIC AND PRESENT RATES OF AND REVENUE FROM TAXES CURRENTLY LEVIED, ASSESSED AND COLLECTED.

20180HB2523PN4109 - 4 - (2) THE PERCENTAGE OF TOTAL REVENUES PROVIDED BY TAXES CURRENTLY LEVIED, ASSESSED AND COLLECTED.

(3) THE AGE, INCOME, EMPLOYMENT AND PROPERTY USE CHARACTERISTICS OF THE EXISTING TAX BASE.

(4) PROJECTED REVENUES OF TAXES CURRENTLY LEVIED, ASSESSED AND COLLECTED, INCLUDING TAXES AUTHORIZED AND TAXES NOT LEVIED UNDER THIS CHAPTER.

(E) RECOMMENDATION.--WITHIN 90 DAYS OF ITS APPOINTMENT, THE LOCAL TAX STUDY COMMISSION SHALL MAKE A NONBINDING RECOMMENDATION TO THE BOARD OF SCHOOL DIRECTORS REGARDING THE IMPOSITION OF THE TAXES AUTHORIZED UNDER SECTION 321, COMMENCING IN THE SUBSEQUENT FISCAL YEAR.

PRIOR TO MAKING ITS RECOMMENDATION, THE LOCAL TAX STUDY COMMISSION SHALL HOLD AT LEAST ONE PUBLIC HEARING.

THE RECOMMENDATION OF THE LOCAL TAX STUDY COMMISSION SHALL BE PRESENTED AT A PUBLIC MEETING OF THE BOARD OF SCHOOL DIRECTORS.

THE BOARD OF SCHOOL DIRECTORS SHALL MAKE SUCH RECOMMENDATION AVAILABLE TO INTERESTED PERSONS UPON REQUEST.

(F) FAILURE TO ISSUE A RECOMMENDATION.--IF THE LOCAL TAX STUDY COMMISSION FAILS TO MAKE A RECOMMENDATION UNDER SUBSECTION (E), THE BOARD OF SCHOOL DIRECTORS SHALL DISCHARGE THE LOCAL TAX STUDY COMMISSION.

(G) ADOPTION OF RECOMMENDATION.--THE BOARD OF SCHOOL DIRECTORS SHALL ACCEPT OR REJECT THE RECOMMENDATION OF THE LOCAL TAX STUDY COMMISSION PRIOR TO ADOPTING A RESOLUTION UNDER SECTION 331.2(B) OR SECTION 332(B)(1).

(H) MATERIALS.--ALL RECORDS OF THE LOCAL TAX STUDY COMMISSION, INCLUDING RECEIPTS, TAPES, MINUTES OF MEETINGS AND WRITTEN COMMUNICATIONS, FOR PUBLIC INSPECTION DURING THE REGULAR BUSINESS HOURS OF THE SCHOOL DISTRICT.] 20180HB2523PN4109 - 5 - SECTION 4.

SECTIONS 331.2(B), 332(B)(1), 334(C)(2) AND 5005(2) OF THE ACT ARE AMENDED TO READ:

Section 331.2.

* * * (b) Adoption of resolution.--No later than March 13, 2007, a school district subject to this section shall adopt a resolution 20180HB2523PN3792 - 3 - authorizing the referendum question required under subsection (a).

Disposition of income tax revenue and property tax 20180HB2523PN4109 - 6 - reduction allocations.

* * * (c) Property tax reduction allocations.-- * * * (2) Notwithstanding the provisions of paragraph (1), a school district coterminous with a city of the second class A 20180HB2523PN3792 - 4 - may use up to 50% of the property tax reduction allocation received under section 505 to reduce the rate of the earned income and net profits tax levied by the school district pursuant to any other act.

20180HB2523PN4109 - 7 - * * * Section 33. 5.