HB 1098 — An Act amending the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, in local taxes, further providing for delegation of taxing powers and restrictions thereon; and, in consolidated collection of local income taxes, further providing for declaration and payment of income taxes.

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1292 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

29101098 THE2017 GENERALINTLAWRENCE, ASSEMBLYMILLARD OFAND PENNSYLVANIAPICKETT, HOUSEAPRIL BILL7, Session2017HELM, IRVIN, REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 7, 2017 AN ACT Amending the act of No.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 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;

1098 2017 INTLAWRENCE, MILLARD, PICKETT AND RYAN, APRIL 7, 2017IRVIN, AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JANUARY 23, 2018 AN ACT 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, the second class, school districts of the second class,s of 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;

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 sessionsresolution andlevying such taxes to the Supremecourt Courtof andquarter Superior Court," in local taxes, further providing for delegation of taxingtaxingin powers and restrictions thereon;

* * * (a.2) A taxing authority is prohibited from levying, assessing and collecting or providing for the levy, assessment and collection of local income taxes on persons within its local jurisdiction if the person meets the Federal and State income tax exemption requirements and was not required to file a 20170HB1098PN291020170HB1098PN1292 - 2 - Federal or State income tax return in the preceding year.

* * * (2) (i) Every taxpayer making net profits RESULTING IN <-- A TAX LIABILITY OF $200 OR MORE shall, by April 15 of the current year, make and file with the resident tax officer a declaration of the taxpayer's estimated net profits during the period beginning January 1 and ending December 31 of the current year, and shall pay to the resident tax officer in four equal quarterly installments the tax due on the estimated net profits.

This <-- subparagraph shall not apply to net profits equal to or less than $200.

For declarations of taxes on estimated net profits equal to or less than $200, FOR DECLARATIONS <-- 20170HB1098PN2910 - 3 - OF ESTIMATED TAXES ON NET PROFITS RESULTING IN A TAX LIABILITY THAT IS LESS THAN $200, a taxpayer may remit one lump sum payment to the 20170HB1098PN1292 - 3 - taxing officer or taxing authority without penalty and shall not be required to file quarterly estimates that state zero taxes on <-- estimated net profits.

(ii) Any taxpayer who first anticipates any net profit equal to or more than $200 RESULTING IN A TAX <-- LIABILITY OF $200 OR MORE after April 15 of the current year shall make and file the declaration required on or before July 15 of the current year, October 15 of the current year or January 15 of the succeeding year, whichever date next follows the date on which the taxpayer first anticipates such net profit, and shall pay to the resident tax officer in equal installments the tax due on or before the quarterly payment dates that remain after the filing of the declaration.

(iii) Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the resident tax officer a final return showing the amount of net profits equal to or more than $200 RESULTING IN A TAX LIABILITY <-- OF $200 OR MORE that was earned or received based on the method of accounting used by the taxpayer during the period beginning January 1 of the current year, and ending December 31 of the current year, the total amount of tax due on the net profits and the total amount of tax paid.

Any taxpayer may, in 20170HB1098PN2910 - 4 - lieu of paying the fourth quarterly installment of the estimated tax, elect to make and file with the resident tax officer on or before January 31 of the succeeding year, the final return.

(iv) The department, in consultation with the 20170HB1098PN1292 - 4 - Department of Revenue, shall provide by regulation for the filing of adjusted declarations of estimated net profits and for the payments of the estimated tax in cases where a taxpayer who has filed the declaration required under this subsection anticipates additional net profits not previously declared or has overestimated anticipated net profits.

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