SB 527 — An Act amending the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, 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.

Bill Text

• Printer's No. PN0500 View text Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends The Local Tax Enabling Act to include provisions specifically for cities of the first class, allowing them greater authority to levy and collect certain taxes and establishing new regulations regarding nonresident taxation and tax reimbursements.

• The Local Tax Enabling Act

  school districts of the third class and school districts of the fourth class → school districts of the second class, school districts of the third class and school districts of the fourth class

  This change updates the categories of school districts referenced in the Act.

• The Local Tax Enabling Act

  CHAPTER 6 LOCAL TAXES IN CITIES OF THE FIRST CLASS Section 601. Authority to levy taxes.

  This addition establishes a new chapter specifically addressing local taxes in cities of the first class.

• Section 601

  tax or provide for the levying, assessment and collection of a tax on a privilege, transaction, subject or occupation, or on personal property, which is or may become subject to a State tax or license fee. → tax or provide for the levying, assessment and collection of a tax on a privilege, transaction, subject or occupation, or on personal property, which is or may become subject to a State tax or license fee.

  This clarifies the limitations on the authority of cities of the first class concerning certain taxes.

• Section 601

  The State Treasurer or other appropriate State official shall, at the time of payment of the salary, wage or other compensation to an officer or employee of the Commonwealth, with the exception of elected officials, domiciled or rendering services within a city of the first class, deduct any tax imposed by the city.

  This provision establishes a clear process for tax deductions related to city taxes.

• Section 604

  payment of a tax on salaries, wages, commissions or other compensation to a city of the first class shall be credited by the school district of the taxpayer's residence at an amount no greater than the tax on salaries, wages, commissions or other compensation imposed by the school district in which the taxpayer resides.

  This introduces a reimbursement mechanism for taxpayers residing outside the city of the first class.

Action History

1. June 24, 2025

   Referred to Finance

2. June 23, 2025

   Third consideration and final passage

3. June 23, 2025

   Re-reported as committed

4. June 11, 2025

   Re-referred to Appropriations

5. June 11, 2025

   Second consideration

6. June 10, 2025

   First consideration

7. June 10, 2025

   Reported as committed

8. March 26, 2025

   Referred to Finance

Sponsors

• Frank A. Farry · Primary
• Tracy Pennycuick · Cosponsor
• Greg Rothman · Cosponsor
• Daniel Laughlin · Cosponsor
• Scott Martin · Cosponsor

Votes

Subjects