SB 653 — 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 collection; in consolidated collection of local income taxes, further providing for tax collection committees , for declaration and payment of income taxes and for powers and duties of tax officer; in collection of delinquent taxes, further providing for costs of collection; and making a related editorial change.

PRIOR PRINTER'S NOS.NO.

892,892 942THE PRINTER'SGENERAL NO.ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1374653 THE2017 GENERALINTBARTOLOTTA, ASSEMBLYSCAVELLO, OFREGAN, PENNSYLVANIAEICHELBERGER, SENATEYUDICHAK,LE, BILLBREWSTER, SessionWILLIAMS, LAUGHLIN AND MARTIN, MAY 24, 2017 REFERRED TO LOCAL GOVERNMENT, MAY 24, 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, 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;

653 2017 INTSCAVELLO, REGAN, EICHELBERGER, YUDICHAK, WILLIAMS, LAUGHLIN, MARTIN, WAGNER AND SCHWANK, MAY 24, 2017 SENATOR BROWNE, APPROPRIATIONS, RE-REPORTED AS AMENDED, DECEMBER 11, 2017 AN ACT Amending the act of December 31, 1965 (P.L.1257, No.511), entitled "An act empowering cities of the second 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;

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 resolutioninformation, levyingproviding suchan taxesappeal tofrom the courtordinance ofor quarterr sessions and to the Supreme Court and Superior Court," in local taxes, further providing for collection;

Section 313(a), Chapter 5 heading, section 505(a),505(a) (a.1), (b), (c), (j) and (l) and section 509(k) of the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, are amended to read:

* * * CHAPTER 5 CONSOLIDATED COLLECTION OF LOCAL [INCOME] TAXES 20170SB0653PN1374 - 2 - Section 505.

20170SB0653PN0892 - 2 - (a) General rule.--Subject to the provisions of subsection (m) and section 509(k), each tax collection district shall be governed by a tax collection committee constituted and operated as set forth in this section.

(a.1) Duties.--A tax collection committee has the following duties:

(1) To keep records of all votes and other actions taken by the tax collection committee.

(2) To appoint and oversee a tax officer for the tax collection district as provided in section 507(a).

(3) To set the compensation of the tax officer under section 507(c).

(4) To require, hold, set and review the tax officer's bond required by section 509(d).

(5) To establish the manner and extent of financing of the tax collection committee.

(6) To adopt, amend and repeal bylaws for the management of its affairs consistent with subsection (f) and regulations under section 508.

(7) To adopt, amend and repeal policies and procedures consistent with the regulations under section 508 for the administration of [income] taxes under section 509 within the tax collection district.

The procedures shall supersede any contrary resolutions or ordinances adopted by a political subdivision.

This authority shall not be construed to permit a tax collection committee to change the rate or subject of 20170SB0653PN1374 - 3 - any tax.

* * * (b) Delegates.-- (1) The governing body of each political subdivision within a tax collection district that imposed an income tax prior to July 1, 2009, shall appoint one voting delegate and one or more alternates to represent the political subdivision on the tax collection committee by September 15, 2009.

The governing body of each political subdivision that after June 30, 2009, imposes [an income] a tax [for the first time] under section 509 shall appoint one voting delegate and one or more alternates to represent the political subdivision on the tax collection committee.

A voting delegate or alternate shall serve at the pleasure of the governing body of the political subdivision.

(2) The governing body of each political subdivision within a tax collection district that prior to July 1, 2009, does not impose an income tax may appoint one nonvoting delegate and one or more alternates to represent the political subdivision on the tax collection committee.

If, after June 30, 2009, the political subdivision imposes [an income] a tax under section 509, the nonvoting delegate shall become a voting delegate to represent the political subdivision on the tax collection committee.

* * * (c) Voting rights.-- (1) Only a delegate appointed by the governing body of a political subdivision may represent a political subdivision at a tax collection committee meeting.

If a delegate cannot be present for a tax collection committee meeting, the 20170SB0653PN1374 - 4 - alternate appointed under this section may represent the political subdivision.

Each delegate or alternate shall be entitled to vote upon any action authorized or required of the tax collection committee under this chapter.

(2) For the first meeting of the tax collection committee, actions of the tax collection committee shall be determined by a majority vote of those delegates present.

Votes shall be weighted among the governing bodies of the member political subdivisions according to the following formula:

50% shall be allocated according to the proportional population of each political subdivision in proportion to the population of each tax collection district as determined by the most recent Federal decennial census data and 50% shall be weighted in direct proportion to [income] tax revenues collected in each political subdivision, based on each political subdivision's most recent annual financial report submitted to the department or the Department of Education.

For subsequent meetings, votes shall be taken in accordance with this paragraph unless the bylaws provide otherwise.

(3) No later than September 1, 2009, the department shall calculate the weighted vote for each political subdivision within each tax collection district based on the formula specified in paragraph (2).

By July 1 of the year following the first meeting, and of each year thereafter, each tax collection committee shall recalculate the weighted vote unless the bylaws provide for a more frequent recalculation.

(4) If a political subdivision within the tax collection district imposes [an income] a tax under section 509 for the first time, the tax collection committee shall recalculate 20170SB0653PN1374 - 5 - the weighted vote or other method of voting under the bylaws.

* * * (j) Appeals board.-- (1) By June 1, 2010, each tax collection committee shall establish an appeals board comprised of a minimum of three delegates or, in the case of a tax collection committee established pursuant to subsection (m), a minimum of three residents of the county.

(2) A determination of the tax officer relating to the assessment, collection, refund, withholding, remittance or distribution of [income] taxes may be appealed to the appeals board by a taxpayer, employer, political subdivision or another tax collection district.

(3) All appeals, other than those brought under subsection (k), shall be conducted in a manner consistent with 53 Pa.C.S.

§§ 8431 (relating to petitions), 8432 (relating to practice and procedure), 8433 (relating to decisions), 8434 (relating to appeals) and 8435 (relating to equitable and legal principles to apply).

(4) A tax collection committee may enter into an agreement with another tax collection committee to establish a joint appeals board.

(5) No member of an appeals board or joint appeals board may be a tax officer or an employee, agent or attorney for a tax officer.

(6) An appeals board appointed pursuant to this section shall constitute a joint local tax appeals board as provided for in 53 Pa.C.S.