Oct. 25, 2018

HARRISBURG – The governor signed into law House Bill 2557, now Act 124 of 2018, authored by Rep. Greg Rothman (R-Cumberland), that allows the city of Harrisburg to exit Act 47 status without imposing a commuter tax, preventing a 100 percent increase in property taxes on residents.

“I am thankful to everyone who supported this important bill, especially my colleagues Sen. John Disanto (R-Dauphin/Perry), and Reps. Patty Kim (D-Dauphin) and Tom Mehaffie (R-Dauphin),” Rothman said. “I also want to thank the governor for his support, and I look forward to continue working with him to secure a bright economic future for the region.”

The new law establishes Intergovernmental Cooperation Authorities (ICAs) for certain Cities of the Third Class; lays out their powers and duties; allows Harrisburg to keep their extraordinary local services tax of 156 dollars and the higher earned income tax on residents for five years; prohibits the city from imposing a commuter tax and provides a 100,000 appropriation to the ICA initially. It also removes the city from Act 47 while putting in place the ICA. State funding will be cut if the city does not comply with the ICA. These provisions are set to expire in five years.

Representative Greg Rothman
87th District
Pennsylvania House of Representatives

Media Contact: Alison Basley
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