– Legislation sponsored by House Appropriations Vice Chairman Rep. George Dunbar (R-Westmoreland) to prohibit local school districts and municipalities from imposing double taxation (House Bill 866
) was signed into law by Gov. Tom Wolf today.
In November 2016, the governor unexpectedly vetoed identical legislation (House Bill 245), also sponsored by Dunbar, based upon some misinformation.
“What a difference 18 months make,” said Dunbar. “On both occasions, this legislation was sent to the governor with several agreed-to-revisions from his own Department of Community and Economic Development, along with strong bipartisan support from the House and Senate. However, this time with House Bill 866, we made sure the governor was given truthful and accurate information to guarantee he was fully on board with protecting the constitutional right of all Pennsylvania taxpayers to be taxed uniformly. I’d like to thank the governor for his reconsideration and ultimate support of this legislation.”
Based on recommendations from tax practitioners, House Bill 866 makes the following technical changes to the Local Tax Enabling Act (Act 32 of 2008):
- Clear and concise safe harbor language for estimated taxes.
- Oversight for the local Tax Collection Committee.
- Clarification of temporary job assignments (what tax rate should be withheld for an employee on a temporary assignment).
- W-2 reporting requirements.
- Audits of taxes received and disbursed on a calendar year basis only.
- Standardized forms by 2020.
- Full credit for payments of the Earned Income Tax, regardless of whether the EIT was authorized by Act 511 or any other Pennsylvania law.
“In various instances across the state, school districts and municipalities have levied taxes on income that has already been taxed—which obviously results in unfair double taxation,” said Dunbar. “This new law is clearly needed to reset the local tax collection process in favor of hard-working taxpayers and job creators.”
For the latest legislative updates, visit RepDunbar.com
Representative George Dunbar
Pennsylvania House of Representatives
Media Contact: Ty McCauslin