53 Pa.C.S. Ch. 87

in effect

53 Pa.C.S. § 8701 General tax authorization.

(a) General rule.--Subject to sections 8703 (relating to adoption of referendum) and 8704 (relating to public referendum requirements for increasing property taxes previously reduced) and except as provided in subsection (b), each school district shall have the power and may by resolution levy, assess and collect or provide for the levying, assessment and collection of the earned income and net profits tax under this chapter. (b) Exclusions.--No school district which levies an earned income and net profits tax authorized by this chapter shall have any power or authority to levy, assess or collect: (1) A tax based upon a flat rate or on a millage rate on an assessed valuation of a particular trade, occupation or profession, commonly known as an occupation tax. (2) A tax at a set or flat rate upon persons employed within the taxing district, commonly known as an occupational privilege tax. (3) A per capita, poll, residence or similar head tax. (4) The earned income and net profits tax levied under the Local Tax Enabling Act. (5) An earned income tax under the act of August 24, 1961 (P.L.1135, No.508), referred to as the First Class A School District Earned Income Tax Act, or under the additional authority in section 652.1(a)(2) of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949. (6) Any tax under section 652.1(a)(4) of the Public School Code of 1949 except as it pertains to real estate transfer taxes. (7) Except for taxes permitted under section 8402(b) (relating to scope and limitations), (c), (d), (e) and (f), any other tax authorized or permitted under the Local Tax Enabling Act. (c) Delinquent taxes.--The provisions of subsection (b) shall not apply to collection of delinquent taxes. Cross References. Section 8701 is referred to in sections 8703, 8717 of this title.

53 Pa.C.S. § 8702 Continuity of tax.

The earned income and net profits tax levied under the provisions of this chapter shall continue in force on a fiscal year basis without annual reenactment unless the rate of tax is increased or the tax is subsequently repealed.

53 Pa.C.S. § 8703 Adoption of referendum.

(a) General rule.-- (1) In order to levy an earned income and net profits tax under this chapter, a governing body shall use the procedures set forth in subsection (b). (2) Any governing body after making an election to levy an earned income and net profits tax under this chapter may, after a period of at least three full fiscal years, elect under the provisions of subsection (c) to levy, assess and collect the taxes prohibited by section 8701(b) (relating to general tax authorization) to the extent otherwise provided by law. If the electorate approves such referendum, the governing body shall lose the authority to continue to levy an earned income and net profits tax authorized under this chapter. (b) Public referendum requirements.--Subject to the notice and public hearing requirements of section 8716 (relating to procedure and administration), a governing body may levy the earned income and net profits tax under this chapter only by obtaining the approval of the electorate of the affected school district in a public referendum at only the municipal election preceding the fiscal year when the earned income and net profits tax will be initially imposed. The referendum question must state the initial rate of the proposed earned income and net profits tax, the reason for the tax and the amount of proposed budgeted revenue growth, if any, in the first fiscal year following adoption of the referendum, expressed as a percent increase over the prior year's budgeted revenue. Any increase in budgeted revenue between the first fiscal year following adoption of the referendum and the prior year's budgeted revenue shall not exceed the annual percent change in the Statewide average weekly wage. The question shall be in clear language that is readily understandable by a layperson. For the purpose of illustration, a referendum question may be framed as follows: Do you favor the imposition of an earned income and net profits tax of X% to be used to replace (names of local taxes to be repealed), reduce real property taxes by X% by means of a homestead exclusion and provide for a one-time revenue increase of X% over the preceding fiscal year? A nonlegal interpretative statement must accompany the question in accordance with section 201.1 of the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code, that includes the following: the initial rate of the earned income and net profits tax and the maximum allowable rate of the earned income and net profits tax imposed under this chapter; the estimated revenues to be derived from the initial rate of the earned income and net profits tax imposed under this chapter; the amount of proposed revenue growth, if any, in the first fiscal year following adoption of the referendum; the estimated reduction in real property taxes and the elimination of certain existing taxes under this chapter; the identification of the existing taxes to be eliminated under this chapter; the method to be used to reduce real property taxes; the class or classes of real property for which real property taxes would be reduced; and the estimated amount of real property tax reduction by class, expressed as an average percent reduction by class. Any governing body which uses the procedures under this section shall not be subject to the provisions of section 8704 (relating to public referendum requirements for increasing property taxes previously reduced) for any future increases in the earned income and net profits tax rates authorized under this chapter. Any future real property tax rate increases are subject to the provisions of section 8704. If the ballot question fails to receive a majority vote pursuant to this section, approval of the electorate under section 8704 shall not be required to increase the rate of any tax which the governing body of the affected school district is authorized to levy and increase pursuant to any other act. (c) Public referendum requirements to end participation under this chapter.--Subject to the notice and public hearing requirements in section 4 of the Local Tax Enabling Act, a governing body may elect to end participation under this chapter in accordance with subsection (a)(2) by obtaining the approval of the electorate of the affected school district in a public referendum at a municipal election. (d) Public requirements to initiate referendum.-- (1) If the governing body of a school district fails to place a referendum question on the ballot within two years after the effective date of this chapter, the electors of the school district may: (i) Circulate a petition which, if signed by electors comprising 2% of the number of electors voting for the office of Governor in the last gubernatorial election in the school district and filed with the election officials and submitted to the governing body thereof, shall require the governing body to establish a local tax study commission. The provisions under paragraph (2)(v), (vi), (vii), (viii) (ix) and (x) shall not apply to this subparagraph. (ii) If the local tax study commission makes a recommendation to levy the earned income and net profits tax under this chapter and the governing body fails to place the recommendation or other alternative of the governing body authorized under this chapter on the ballot in accordance with this chapter at the next municipal election occurring at least 90 days after the submission of the recommendation to the governing body, a petition under this paragraph may be circulated. If the petition is signed by the electors comprising 5% of the number of electors voting for the office of Governor in the last gubernatorial election in the school district and filed with election officials at least 90 days prior to the next municipal election, the petition shall compel the election officials to place the recommendation upon the ballot at the next municipal election occurring at least 90 days after the filing of the petition. (2) The following requirements shall apply to the process under paragraph (1): (i) The name and street address of each elector signing the petition and of the person filing the petition shall be clearly stated on the petition. The petition shall include an affidavit of the circulator that he or she is a qualified elector of the school district referred to in the petition; that the signers signed with full knowledge of the contents of the petition; that the signers' residences are correctly stated; and that, to the best of the circulator's knowledge and belief, the signers are qualified electors. (ii) The election officials shall, within ten days after filing, review the petition as to the number and qualifications of signers. If the petition appears to be defective, the election officials shall immediately notify the person filing the petition of the defect and may reject the petition if warranted. (iii) The petition as submitted to the election officials, along with the list of signatories, shall be open to public inspection in the office of the election officials. (iv) If the election officials find that the petition as submitted is in proper order, they shall send copies of the petition without signatures thereon to the governing body involved. (v) The procedure for the referendum shall be governed by the act of June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania Election Code. (vi) If the election officials find the petition meets the requirements of this chapter, they shall place the proposal on the ballot in a manner fairly representing the content of the petition for decision by referendum at the proper election. (vii) The election officials shall certify the date for the referendum and shall notify the governing body at least 30 days prior to such date. (viii) At least 30 days' notice of the referendum shall be given by proclamation of the governing body. A copy of the proclamation shall be posted at each polling place on the day of the election and shall be published once in at least one newspaper of general circulation which is distributed within the school district during the 30-day period prior to the election. (ix) Approval of a referendum shall be by majority vote of those voting in the school district involved. (x) The election officials shall certify the results of the referendum to the governing body. (e) School districts located in more than one county.-- (1) In the event a school district is located in more than one county, petitions under this section shall be filed with the election officials of the county wherein the administrative offices of the school district are located. (2) The election officials receiving a petition shall be responsible for all administrative functions in reviewing and certifying the validity of the petition and for making all necessary communications with the school district. (3) If the election officials of the county receiving the petition certify that it is sufficient under this subpart and determine that a question should be placed upon the ballot, such decision shall be communicated to election officials in any other county in which the school district is also located. Election officials in the other county or counties shall cooperate with election officials of the county receiving the petition to insure that an identical question is placed on the ballot at the same election throughout the entire school district. (4) Election officials from each county involved shall independently certify the results from their county to the governing body. Cross References. Section 8703 is referred to in sections 8022, 8402, 8701, 8704, 8706, 8713, 8716, 8717 of this title.

53 Pa.C.S. § 8704 Public referendum requirements for increasing property taxes previously reduced.

(a) General rule.--Except as provided in subsections (c) and (d), a governing body that elects to levy an earned income and net profits tax under this chapter pursuant to section 8703(a) (relating to adoption of referendum) shall not increase the rate of its tax on real property without first obtaining the approval of the electorate of the affected school district in a referendum at the primary election immediately preceding the fiscal year of the proposed tax increase. (b) Disapproval.--Whenever the electorate fails to approve the proposed referendum question to increase the rate of tax on real property under subsection (a), the governing body shall be limited to the rate of tax in effect prior to the referendum. (c) Exception to general rule.--The provisions of subsection (a) shall not apply to an increase in the rate of the real property tax that does not cause local tax revenue, excluding real property taxes to be levied on newly constructed buildings or structures or on increased valuations based on new improvements made to existing houses, to increase by more than the percentage increase in the Statewide average weekly wage in the preceding year. Prior to any increase under this subsection, the governing body must certify to the court of common pleas in the judicial district in which the governing body is located the estimates of total local tax revenues used in the calculation under this subsection. The court may, on its own motion or on petition of a person having standing under subsection (f), revise the estimates certified by the governing body and reduce the allowable increase in the rate of the real property tax under this subsection. (d) Referendum exceptions.--The provisions of subsection (a) shall not apply to increases in the rate of tax on real property in this subsection only if the exception to the general rule under subsection (c) has been utilized, if applicable, to the maximum amount allowed: (1) To respond to or recover from an emergency or disaster declared pursuant to 35 Pa.C.S. § 7301 (relating to general authority of Governor) or 75 Pa.C.S. § 6108 (relating to power of Governor during emergency), only for the duration of the emergency or disaster and for the costs of the recovery from the emergency or disaster. (2) To implement a court order or an administrative order from a Federal or State agency that requires the expenditure of funds that exceed current available revenues. The rate increase shall be rescinded following fulfillment of the court order or administrative order. (3) To pay interest and principal on any indebtedness incurred under Subpart B (relating to indebtedness and borrowing). However, in no case may a school district incur additional debt under this paragraph, except for the refinancing of existing debt, including the payment of costs and expenses related to such refinancing and the establishment or funding of appropriate debt service reserves. The increase shall be rescinded following the final payment of interest and principal. The exception provided under this paragraph shall not be used to avoid referendum requirements to pay for costs which could not be financed by the issuance of debt under Subpart B. (4) To respond to conditions that pose an immediate threat of serious physical harm or injury to the students, staff or residents of the school district until the circumstances causing the threat have been fully resolved. (5) Special purpose tax levies approved by the electorate. (6) To maintain per-student local tax revenue in the school district at an amount not exceeding the amount of per-student local tax revenue at the level of the preceding year, adjusted for the percentage increase in the Statewide average weekly wage. This paragraph shall apply only if the percentage growth in student enrollment in the school district between the current fiscal year and the third fiscal year immediately preceding the current fiscal year exceeds 10%. For the purposes of this paragraph, student enrollment shall be measured by average daily membership as defined by the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949. For the purposes of this paragraph, per-student local tax revenue shall be determined by dividing local tax revenue by average daily membership. (e) Court action.--Prior to the imposition of the tax increase under subsection (d)(1), (2), (4) or (6), approval is required by the court of common pleas in the judicial district in which the governing body is located. The governing body shall publish in a newspaper of general circulation a notice of its intent to file an action under this subsection at least one week prior to the filing of the petition. The governing body shall also publish in a newspaper of general circulation notice, as soon as possible following notification from the court that a hearing has been scheduled, stating the date, time and place of the hearing on the petition. The following shall apply to any proceedings instituted under this subsection: (1) The governing body must prove by clear and convincing evidence the necessity for the tax increase. (2) The governing body must prove by clear and convincing evidence that there are no assets or other feasible alternatives available to the school district. (3) The court shall determine the appropriate duration of the increase and may retain continuing jurisdiction. The court may, on its own motion or on petition of an interested party, revoke approval for or order rescission of a tax increase. (f) Standing.--A person shall have standing as a party to a proceeding under this section as long as the person resides within or pays real property taxes to the taxing jurisdiction of the governing body instituting the action. Cross References. Section 8704 is referred to in sections 8701, 8703, 8706 of this title.

53 Pa.C.S. § 8705 Local tax study commission.

(a) Appointment.--A governing body may appoint a local tax study commission. (b) Membership.--The local tax study commission shall consist of five 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. (1) Except for paragraph (2), no member shall be an official or employee, or a relative thereof, of the school district. (2) One member may be a member of the governing body. (c) Staff and expenses.--The governing body 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. (d) Contents of study.--The local tax study commission shall study the existing taxes levied, assessed and collected by the school district and their effect. 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 pursuant to this chapter. The study shall include, but not be limited to, consideration of all of the following: (1) Historic and present rates of and revenue from taxes currently levied, assessed and collected. (2) The age, income, employment and property use characteristics of the existing tax base. (3) 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 governing body regarding the imposition of an earned income and net profits tax to be levied, assessed and collected commencing the next fiscal year. Except as provided in subsection (f), if the governing body appoints a commission, the earned income and net profits tax authorized under this chapter may not be levied, assessed or collected until receipt of the recommendation. No later than 90 days prior to the next municipal election occurring at least 150 days after the submission of the recommendation, the governing body shall accept or reject the recommendation of the local tax study commission or adopt an alternative proposal authorized under this chapter. (f) Failure to issue a recommendation.--If the local tax study commission fails to make a recommendation under subsection (e), the governing body may adopt a proposal authorized under this chapter. (g) Public distribution of report.--The local tax study commission shall publish a final report of its findings and recommendation and deliver the report to the governing body. The governing body shall supply copies to any interested persons upon request. (h) Materials.--All records of the local tax study commission shall be available for public inspection during the regular business hours of the school district.

53 Pa.C.S. § 8706 Property tax limits on reassessment.

After any county makes a countywide revision of assessment of real property at values based upon an established predetermined ratio as required by law or after any county changes its established predetermined ratio, each school district that has made an election under section 8703 (relating to adoption of referendum), which hereafter for the first time levies its real estate taxes on that revised assessment or valuation, shall for the first year reduce its tax rate, if necessary, for the purpose of having the percentage increase in taxes levied for that year against the real properties contained in the duplicate for the preceding year be less than or equal to the percentage increase in the Statewide average weekly wage for the preceding year notwithstanding the increased valuations of such properties under the revised assessment. For the purpose of determining the total amount of taxes to be levied for the first year, the amount to be levied on newly constructed buildings or structures or on increased valuations based on new improvements made to existing houses need not be considered. The tax rate shall be fixed for that year at a figure which will accomplish this purpose. The provisions of section 8704 (relating to public referendum requirements for increasing property taxes previously reduced) shall apply to increases in the tax rate above the limits provided in this section.

53 Pa.C.S. § 8711 Earned income and net profits tax.

A school district shall have the power to levy, assess and collect a tax on the earned income and net profits of resident individuals of the school district up to a maximum rate of 1.5%. The earned income and net profits tax may be levied by the school district at a rate of 1.0%, 1.25% or 1.5%. Cross References. Section 8711 is referred to in sections 8404, 8712, 8713, 8715, 8716 of this title.

53 Pa.C.S. § 8712 Collections.

Any school district imposing a tax under section 8711 (relating to earned income and net profits tax) shall designate the tax officer who is appointed under section 10 of the Local Tax Enabling Act, or otherwise by law, as the collector of the earned income and net profits tax. In the performance of the tax collection duties under this subchapter, the designated tax officer shall have all the same powers, rights, responsibilities and duties for the collection of the taxes which may be imposed under the Local Tax Enabling Act, Subchapter C of Chapter 84 (relating to local taxpayers bill of rights) or as otherwise provided by law.

53 Pa.C.S. § 8713 Credits.

(a) General rule.--The provisions of section 14 of the Local Tax Enabling Act shall be used to determine any credits under the provisions of this chapter for any taxes imposed under section 8711 (relating to earned income and net profits tax). (b) State tax credit.--A credit against personal income tax due to the Commonwealth under section 302 of the Tax Reform Code shall be granted to all nonresidents of a city of the first class who are subject to a tax imposed by a city of the first class pursuant to the act of August 5, 1932 (Sp.Sess., P.L.45, No.45), referred to as the Sterling Act. The credit shall equal 0.2756% of salaries, wages, commissions, compensation or other income received for work done or services performed within a city of the first class. The Secretary of Revenue shall promulgate such regulations and forms as are necessary to implement the provisions of this subsection. This section shall only apply to residents of school districts which impose the tax under this subchapter. A governing body of a school district in a county of the second class A shall, and a governing body of a school district in a county of the third class may, include in the referendum question under section 8703 (relating to adoption of referendum) language asking whether the credit against the personal income tax in this subsection should be provided to the nonresident taxpayer in the city of the first class or the school district in which the taxpayer resides for the purpose of making additional tax reductions in the same manner as section 8717 (relating to disposition of earned income and net profits tax revenue). Should any court of competent jurisdiction determine that this subsection is unconstitutional, the provisions of this subsection shall be void and no credit shall be expanded or extended in any way by any court. Cross References. Section 8713 is referred to in section 8715 of this title.

53 Pa.C.S. § 8714 Earned income and net profits tax exemption.

A school district that imposes an earned income and net profits tax under this chapter may exempt from the payment of that tax any person whose total income from all sources is less than $7,500. Cross References. Section 8714 is referred to in section 8715 of this title.

53 Pa.C.S. § 8715 Rules and regulations.

Taxes imposed under section 8711 (relating to earned income and net profits tax) will be subject to all regulations adopted under section 13 of the Local Tax Enabling Act. A school district may adopt regulations for the processing of claims for credits or exemptions under sections 8713 (relating to credits) and 8714 (relating to earned income and net profits tax exemption). References in Text. Section 13 of the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, referred to in this section, is repealed.

53 Pa.C.S. § 8716 Procedure and administration.

In order to levy the tax under section 8711 (relating to earned income and net profits tax), the governing body shall adopt a resolution which shall refer to this subchapter prior to placing a question on the ballot under section 8703 (relating to adoption of referendum). Prior to adopting a resolution imposing the tax authorized by section 8711, the governing body shall give public notice of its intent to adopt the resolution in the manner provided by section 4 of the Local Tax Enabling Act and shall conduct at least one public hearing regarding the proposed adoption of the resolution. Cross References. Section 8716 is referred to in section 8703 of this title.

53 Pa.C.S. § 8717 Disposition of earned income and net profits tax revenue.

The disposition of revenue from an earned income and net profits tax or an increase in the rate of an earned income and net profits tax imposed by school districts under the authority of this chapter shall occur in the following manner: (1) For the fiscal year of implementation of a newly imposed income tax, all earned income and net profits tax revenue received by a school district shall be used first to offset any lost revenue to the school district from the taxes prohibited under section 8701(b) (relating to general tax authorization) in an amount equal to the revenue collected from the prohibited taxes in section 8701(b) in the preceding fiscal year; second, to provide for an increase in budgeted revenues over the preceding fiscal year in accordance with the amount specified in the referendum question approved by the voters under section 8703 (relating to adoption of referendum); and third, to reduce the school district real property tax in the following order: (i) By means of an exclusion for homestead property pursuant to section 8583 (relating to exclusion for homestead property). (ii) By means of a reduction in the millage rate after the limit on the exclusion for homestead property has been reached under section 8586 (relating to limitations). (2) For the fiscal year of implementation of an increase in the rate of the existing earned income and net profits tax imposed under this chapter, all revenue received by a school district directly attributable to the increased rate shall be used to reduce the school district real property tax in the following order: (i) By means of an exclusion for homestead property pursuant to section 8583. (ii) By means of a reduction in the millage rate after the limit on the exclusion for homestead property has been reached under section 8586. Cross References. Section 8717 is referred to in section 8713 of this title.

53 Pa.C.S. § 8721 Hotel room rental (Repealed).

2016 Repeal. Section 8721 was repealed April 20, 2016, P.L.134, No.18, effective immediately.

53 Pa.C.S. § 8722 Local option cigarette tax in school districts of the first class.

(a) Authorization.--The following shall apply: (1) A school district may, if authorized by ordinance of the governing body of a city of the first class adopted prior to or after the effective date of this section, impose and assess an excise tax upon the sale or possession of cigarettes within the school district at a rate of 10¢ per cigarette. Only one sale shall be taxable and used in computing the amount of tax due, whether the sale is of individual cigarettes, packages, cartons or cases. (2) The governing body of the city of the first class and school district may amend, respectively, the ordinance authorizing the imposition of the tax and the resolution imposing the tax authorized by this section to reflect the provisions of this section in the fiscal year in which this section takes effect. (b) Exception.--The tax authorized under subsection (a) may not be levied upon the possession or sale of any cigarette that is exempt from, or which is otherwise not subject to, levy under Article XII of the Tax Reform Code and the regulations promulgated under that article. (c) Collection.-- (1) The tax authorized under subsection (a) shall be collected and remitted to the department in the same manner as the tax imposed under Article XII of the Tax Reform Code. The regulations promulgated under section 1291 of the Tax Reform Code shall be applicable to the tax authorized under subsection (a) insofar as the regulations are consistent with this section. (2) Unless the department promulgates regulations to the contrary under subsection (d), any stamp affixed under section 1215 of the Tax Reform Code shall also reflect payment of any tax authorized under this section. (3) The provisions of section 1216 of the Tax Reform Code shall not apply to any tax authorized under this section. (d) Administration.--The department shall administer and enforce the provisions of this section and may promulgate and enforce any rules and regulations not inconsistent with the provisions of this section. (e) Reimbursement of costs.--From the tax collected under this section, the department may retain a sum of the costs of collection and shall, on a monthly basis, notify in writing the school district imposing the tax of the sum retained and the costs of collection under this section. Annually, the department shall estimate its cost of collection under this section for the next succeeding fiscal year and shall provide the estimate to the school district. (f) Certified copy of resolution to department.--A school district that adopts a resolution: (1) To impose the tax authorized under this section or to change the rate of the tax shall provide a certified copy of the resolution to the department not later than 20 days prior to the effective date of the tax or change to the tax. (2) To repeal the tax authorized under this section shall provide a certified copy of the resolution to the department not later than 30 days prior to the effective date of the repeal. (g) Effective date.--The effective date of any tax authorized under this section or change to the tax shall be no earlier than 30 days after the adoption of the resolution or ordinance. (h) Local Cigarette Tax Fund.-- (1) The Local Cigarette Tax Fund is established in the State Treasury and the State Treasurer shall be custodian of the fund. The fund shall be subject to the provisions of law applicable to funds listed in section 302 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code. (2) The tax imposed under subsection (a) shall be received by the department and paid to the State Treasurer and, along with interest and penalties, less any collection costs allowed under this section and any refunds and credits paid, shall be credited to the fund not less frequently than every two weeks. During any period prior to the credit of moneys to the fund, interest earned on moneys received by the department and paid to the State Treasurer under this section shall be deposited into the fund. (3) Moneys credited to the fund shall be property of the school district and shall be distributed as provided in this section. The money in the fund, including, but not limited to, money credited to the fund under this section, prior year encumbrances and the interest earned thereon, shall not lapse or be transferred to any other fund, but shall remain in the fund and must be used exclusively as provided in this section. (4) Pending their disbursement to the school district, moneys received on behalf of or deposited into the fund shall be invested or reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. The earnings received from the investment or deposit of the funds shall be credited to the fund. (i) Disbursement to school district.--On or before the 10th day of every month, the State Treasurer shall disburse to the school district imposing the tax under this section the total amount of moneys which are, as of the last day of the previous month, contained in the fund. (j) Prohibition.--Money from a tax imposed under this section may not be used for the issuance or repayment of bonds. (k) Expiration.--(Repealed). (l) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Cigarette." As defined in section 1201 of the Tax Reform Code. "Department." The Department of Revenue of the Commonwealth. "Fund." The Local Cigarette Tax Fund established under this section. "Sale." As defined in section 1201 of the Tax Reform Code. "School district." A school district of the first class coterminous with a city of the first class. "Tax Reform Code." The act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971. (Sept. 24, 2014, P.L.2452, No.131, eff. imd.; July 13, 2016, P.L.526, No.84, eff. imd.) 2016 Amendment. Act 84 repealed subsec. (k). 2014 Amendment. Act 131 added section 8722.

53 Pa.C.S. § 8723 Local sales tax revenues in cities of the first class.

Notwithstanding the provisions of section 696 of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, an increase in grants to a school district of the first class by a city of the first class based on debt service to be paid as authorized under section 201-B(f)(1) of the Tax Reform Code shall not require a comparable increase in grants by the city in subsequent years. (Sept. 24, 2014, P.L.2452, No.131, eff. imd.) 2014 Amendment. Act 131 added section 8723.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=53Fetched: 10/16/2026