DEPARTMENT OF REVENUE [61 PA. CODE CHS. 141--148] School District Personal Income Tax [36 Pa.B. 7253]
[Saturday, December 2, 2006]The Department of Revenue (Department), under section 5004.1 of the Taxpayer Relief Act (act) (53 P. S. § 6296.5004.1), adds Article V-A (relating to school district personal income tax) to read as set forth in Annex A. The act went into effect June 27, 2006, and requires that the regulations be adopted before a board of school directors can submit a referendum question regarding the implementation of a personal income tax for voter approval at the primary election of 2007. See section 331.2 of the act (53 P. S. § 6926.331.2).
Purpose of Final-Omitted Rulemaking
The act requires the Department to adopt a final-omitted rulemaking necessary for the implementation of a school district personal income tax by school districts in this Commonwealth.
Explanation of Regulatory Requirements
Article V-A establishes uniform rules for the levy, implementation, administration, assessment and collection of the school district personal income tax.
Fiscal Impact
The Department has determined that the final-omitted rulemaking will have no adverse fiscal impact on the Commonwealth.
Paperwork
The final-omitted rulemaking will not generate substantial paperwork for the public or the Commonwealth.
Effectiveness/Sunset Date
The final-omitted rulemaking will become effective upon publication in the Pennsylvania Bulletin. The final-omitted rulemaking is scheduled for review within 5 years of publication. No sunset date has been assigned.
Contact Person
The contact person for an of the final-omitted rulemaking is Mary R. Sprunk, Office of Chief Counsel, Department of Revenue, Dept. 281061, Harrisburg, PA 17128-1061.
Regulatory Review
Under section 5.1(a) of the Regulatory Review Act (71 P. S. § 745.5a(a)), on October 11, 2006, the Department submitted a copy of the final-omitted rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance. On the same date, the regulations were submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).
Under section 5.1(j.2) of the Regulatory Review Act, on November 15, 2006, the final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on November 16, 2006, and approved the final-omitted rulemaking.
Findings
The Department finds that the regulations are necessary and appropriate for the administration and enforcement of the authorizing statute. Under section 204 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1204), known as the Commonwealth Documents Law (CDL), the Department also finds that the proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are unnecessary because it is in the public interest to expedite this final-omitted rulemaking that reduces the burden to the taxpayer.
Order
The Department, acting under the authorizing statute, orders that:
(a) The regulations of the Department, 61 Pa. Code, are amended by adding §§ 141.1, 141.2, 142.1, 142.2, 143.1--143.7, 144.1--144.3, 145.1--145.6, 146.1--146.3, 147.1--147.3 and 148.1 to read as set forth in Annex A.
(b) The Secretary shall submit this order and Annex A to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.
(c) The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
GREGORY C. FAJT,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 36 Pa.B. 7353 (December 2, 2006).)
Fiscal Note: 15-439. No fiscal impact; (8) recommends adoption.
Annex A TITLE 61. REVENUE PART I. DEPARTMENT OF REVENUE Subpart B. GENERAL FUND REVENUES ARTICLE V-A. SCHOOL DISTRICT PERSONAL INCOME TAX Chap.
141. GENERAL PROVISIONS 142. TAX, IMPOSITION AND RATE 143. TAX PAYMENTS 144. TAX CREDITS 145. TAX RETURNS 146. ADMINISTRATION AND COLLECTION 147. INTEREST, PENALTIES AND COSTS OF COLLECTION 148. TAX APPEALS CHAPTER 141. GENERAL PROVISIONS Sec.
141.1. Scope. 141.2. Definitions. § 141.1. Scope.
The Department promulgates this article for the purpose of providing uniform rules for the levy, implementation, administration, assessment and collection of the school district personal income tax authorized by the act. This article applies to any school district imposing a school district personal income tax and other persons subject to the act.
§ 141.2. Definitions.
The following words and terms, when used in this article, have the following meanings, unless the context clearly indicates otherwise.
Act--The Taxpayer Relief Act (53 P. S. §§ 6926.101--6926.5006).
Adjusted Pennsylvania taxable personal income--The sum of a taxpayer's Pennsylvania personal income, taking into account allowable statutory reductions, required to be reported to the Department on the taxpayer's Pennsylvania Personal Income Tax return for a taxable year.
Allowable statutory reduction--Any item of loss used to compute a net class of Pennsylvania personal income or a deduction authorized under section 303 of the TRC (72 P. S. § 7303) or other law that reduces Pennsylvania personal income.
Board--A ''board of school directors'' as defined in section 302 of the act (53 P. S. § 6926.302).
Compensation--Compensation as defined in section 303 of the TRC and this title.
Department regulations or regulations--Regulations promulgated by the Department and published under this title.
Individual--
(i) A natural person.
(ii) The term does not include a trust or decedent's estate.
Local Tax Enabling Act--53 P. S. §§ 6901--6923.
Payroll period--A period of service for which a payment of compensation is ordinarily made. The period may be daily, weekly, biweekly, semimonthly, monthly, quarterly, semiannually or annually.
Pennsylvania Personal Income Tax--The tax imposed under Article III of the TRC (72 P. S. §§ 7301--7359).
Pennsylvania Personal Income Tax return--The return that is required to be made and filed with the Department under section 330 of the TRC (72 P. S. § 7330).
Pennsylvania personal income--The classes of income enumerated in section 303 of the TRC and defined in Article III of the TRC and applicable Department regulations from whatever source derived, including any income of members or shareholders of partnerships, associations or Pennsylvania S corporations as provided under sections 306 and 307.8 of the TRC (72 P. S. §§ 7306 and 7307.8) and applicable Department regulations, but not including income taxable to a trust or estate as provided for under Chapter 105 (relating to estates and trusts).
Resident individual--
(i) An individual domiciled in a school district during the individual's taxable year.
(ii) The term excludes a statutory resident and includes a statutory nonresident.
School district--A ''school district'' as defined in section 302 of the act.
School district personal income tax--A tax that a board of a school district levies under section 321(c) of the act (53 P. S. § 6926.321), regarding general tax authorization.
Statutory resident--An individual who is not domiciled in this Commonwealth but is considered a resident of this Commonwealth for Pennsylvania Personal Income Tax purposes because the individual maintains a permanent place of abode in this Commonwealth and spends in the aggregate more than 183 days of the taxable year in this Commonwealth.
Statutory nonresident--An individual who is domiciled in this Commonwealth but for Pennsylvania Personal Income Tax purposes is considered a nonresident of this Commonwealth because the individual maintains no permanent place of abode in this Commonwealth but maintains a permanent place of abode elsewhere and spends in the aggregate not more than 30 days of the taxable year in this Commonwealth.
Tax collector--A person that the board of a school district designates as the collector of any school district personal income tax imposed by the school district.
Taxable year--A taxable year as defined in the TRC.
Taxpayer--A person that is subject to a school district personal income tax.
CHAPTER 142. TAX, IMPOSITION AND RATE Sec.
142.1. Tax and imposition. 142.2. Tax rate. § 142.1. Tax and imposition.
(a) The school district personal income tax is a tax at the rate prescribed in § 142.2 (relating to tax rate) levied on the income as described in subsection (b) that a resident individual receives during the resident individual's taxable year. A taxpayer who is a resident individual of more than one school district that imposes a school district personal income tax during the taxpayer's taxable year is subject to the school district personal income tax of each school district.
(b) A taxpayer's income subject to tax under subsection (a) is the taxpayer's adjusted Pennsylvania taxable personal income, subject to the provisions of subsection (c).
(c) The income subject to tax of a taxpayer who is a resident individual of a school district for only a portion of the taxpayer's taxable year shall be an amount equal to the taxpayer's adjusted Pennsylvania taxable personal income multiplied by a fraction the numerator of which is the number of calendar months during the taxable year that the individual is a resident individual of the school district and the denominator of which shall be 12. A taxpayer shall include in the numerator any calendar month during which the taxpayer is a resident individual for more than half the calendar month. A day that a taxpayer's domicile changes shall be included as a day the individual is in the new domicile and not the old domicile. If the number of days that a taxpayer is a resident of the new domicile and a resident of the old domicile in a calendar month are equal, the calendar month shall be included in calculating the number of months in the new domicile.
Example 1. A calendar year taxpayer changes domicile from one Commonwealth school district to another on September 20th. September is a month during the calendar year containing 30 days. Because the taxpayer changed domicile on the 20th day of the calendar month, the day is included as a day in the new domicile instead of the old domicile. Therefore, taxpayer was domiciled in the old domicile for 19 days and the new domicile for 11 days. Because the taxpayer was in the old domicile for more than half the month of September, the taxpayer is considered a resident individual of the old domicile during September. For purposes of calculating the fraction numerator, taxpayer is a resident individual of the old domicile from January to September (9 months) and the new domicile from October to December (3 months).
Example 2. The facts in this example are the same as Example 1, except the taxpayer changes his domicile on September 16. Because September 16 is included as a day in the new domicile, the taxpayer was a resident individual for 15 days in both the old and new domicile during September. Therefore, September is included as a calendar month in the new domicile. For purposes of calculating the fraction numerator, taxpayer is a resident individual of the old domicile from January to August (8 months) and the new domicile from September to December (4 months).
§ 142.2. Tax rate.
(a) The board shall establish for its fiscal year the school district personal income tax rate under the provisions of and subject to the limitations contained in the act.
(b) If the tax rate changes during a taxpayer's taxable year, the taxpayer's income subject to tax as determined under § 142.1 (relating to tax and imposition) shall be apportioned by multiplying the income by a fraction, the numerator of which must be the number of months in taxpayer's taxable year prior to the effective date of the tax rate change and the denominator of which must be the number of month's in the taxpayer's taxable year. The product must be the taxpayer's income subject to the tax rate before the rate change. The difference between the product and the taxpayer's income subject to tax as determined under § 142.1 must be the income subject to the tax rate after the rate change.
CHAPTER 143. TAX PAYMENTS Sec.
143.1. Liability for payment. 143.2. Payment. 143.3. Receipt of payments. 143.4. Tax due date. 143.5. Employer withholding. 143.6. Estimated tax declarations and installment payments. 143.7. Overpayment carryover. § 143.1. Liability for payment.
Each taxpayer subject to a school district personal income tax is liable for and responsible to pay the tax.
§ 143.2. Payment.
(a) Location. The payment of any school district personal income tax shall be made to the tax collector for the school district imposing the tax.
(b) Types of payments. The board of a school district may prescribe the means by which a school district personal income tax payment may be made, including cash, check, draft, money order, certified or cashier's check, credit or debit card or electronic funds transfer.
(c) Conditional payments. Acceptance of a check, draft, money order, certified check or cashier's check is a conditional payment until honored by the drawee.
(d) Returned or rejected payments. If a taxpayer or other person makes what purports to be a payment of school district personal income tax with a check, money order, cashier's check (or other guaranteed draft), credit card or debit card or by other means and the amount of the liability is not paid, or is paid and subsequently charged back to the payee, the taxpayer shall remain liable for the obligation due the school district to the same extent as if the payment had not been tendered.
§ 143.3. Receipt of payments.
For purposes of determining when a school district personal income tax payment is made and credited to a taxpayer's account, a tax payment is deemed to be made on the date the tax collector responsible for collecting the tax receives the payment or the due date for the payment, whichever is later.
§ 143.4. Tax due date.
The school district personal income tax of each taxpayer for the taxable year shall be due on the date that taxpayer is required to file the return for the personal income subject to tax, without regard to any extensions.
§ 143.5. Employer withholding.
(a) An employer who maintains an office or transacts business within a school district shall deduct and withhold school district personal income tax from the compensation of each employee of the employer under the following conditions:
(1) The employee is a resident individual of the school district.
(2) The employee provides services to the employer within the school district.
(3) The employer is required under section 316 of the TRC (72 P. S. § 7316) to deduct and withhold Pennsylvania Personal Income Tax from the compensation of the employee.
(b) The school district personal income tax required to be deducted and withheld under subsection (a) shall be deducted and withheld for each payroll period in an amount equal to the product of the following:
(1) The school district personal income tax rate for the school district where the employer maintains an office or transacts business that is in effect during the payroll period, which rate can be found on the Department of Community and Economic Development's Local Tax Withholding Register as established under section 351(c)--(e) of the TRC (72 P. S. § 7351(c)--(e)), regarding tax registers and local tax withholding registers.
(2) The compensation paid for the payroll period.
(c) Every employer required to deduct and withhold from compensation under subsection (a) who has not previously registered, shall within 15 days after becoming an employer, register with the tax collector for the school district where the employer maintains an office or transacts business, the name and address and other information the tax collector may require.
(d) Every employer required to deduct and withhold from the compensation of a person under subsection (a) shall on or before April 30, July 31, October 31 and January 31, file a return for and remit to the tax collector for the school district where the employer maintains an office or transacts business the amount of school district personal income tax deducted and withheld during the preceding 3-month periods ending March 31, June 30, September 30, and December 31, respectively. The information to be provided on the return must include:
(1) The name and Social Security number of each person from whose compensation withholding was made.
(2) The compensation subject to withholding during the preceding 3-month period.
(3) The amount of withholding.
(4) The school districts imposing the school district personal income tax on the compensation.
(5) The total compensation of all persons from whom the employer is required to withhold during the preceding 3-month period.
(6) The total school district personal income tax withheld and remitted with the return.
(e) The tax collector may require any employer who for two of the preceding four quarterly periods has failed to deduct and withhold the proper school district personal income tax, or any part thereof, or has failed to remit the proper amount of the school district personal income tax, to file a return and remit the withheld school district personal income tax monthly. In that case, the school district personal income tax to be withheld shall be made to the tax collector on or before the last day of the month succeeding the month for which the tax was withheld.
(f) On or before February 28, of the succeeding year, every employer required to withhold school district personal income tax under subsection (a) shall file the following with the tax collector:
(1) An annual return showing:
(i) The total amount of compensation paid and subject to withholding.
(ii) The total amount of school district personal income tax deducted and withheld from the compensation.
(iii) The total amount of school district personal income tax remitted to the tax collector for the period beginning January 1, of the current year, and ending December 31, of the current year.
(2) A return withholding statement for each person whose compensation was subject to withholding during all or any part of the period beginning January 1, of the current year, and ending December 31, of the current year, setting forth the name, address and Social Security number, the amount of compensation paid to the person during the period, the amount of school district personal income tax deducted and withheld, the political subdivisions imposing the tax upon the person and the amount of tax remitted to the tax collector. Every employer shall furnish two copies of the individual return to the person for whom it is filed.
(g) Every employer who discontinues business prior to December 31, of the current year, shall within 30 days after the discontinuance of business, file the returns and withholding statements required under this section and remit the tax due.
(h) An employer who willfully or negligently fails to deduct, withhold and remit the school district personal income tax as required under this section shall be liable for payment of the school district personal income tax that the employer was required to withhold to the extent that the taxes have not been recovered from the person from whom the withholding was to be made.
(i) Notwithstanding the provisions of this section, an employer may deduct and withhold school district personal income tax at the most recently available school district personal income tax rate on the Department of Community and Economic Development's Tax Register as established under section 351(b) of the act (53 P. S. § 6926.351(b)). Further, an employer is not required to deduct and withhold school district personal income tax from the compensation of a resident individual or make reports of compensation deducted and withheld in connection with a school district personal income tax that is not officially released on the Department of Community and Economic Development's Local Withholding Tax Register as prescribed in section 351 of the act.
(j) The failure or omission of an employer to deduct, withhold and remit the school district personal income tax required under this section does not relieve any person from the payment of the school district personal income tax or from complying with the filing requirements of this article.
(k) Nothing in this section shall be construed to prohibit an employer from voluntarily deducting and withholding school district personal income tax from the compensation of a person who is subject to school district personal income tax but is not a resident individual of the school district in which the employer maintains an office or transacts business and to which the person reports to work. If an employer voluntarily deducts and withholds school district personal income tax from a person, the employer shall remit the tax and file the returns and reports required under subsections (d) and (f) with the tax collector for the school district where the person is a resident individual.
§ 143.6. Estimated tax declarations and installment payments.
(a) Every taxpayer shall make a declaration and installment payments of estimated school district personal income tax if the taxpayer's estimated school district personal income tax exceeds the dollar limitation contained in section 325 of the TRC (72 P. S. § 7325) for making a declaration of Pennsylvania Personal Income Tax.
(b) Estimated school district personal income tax means a taxpayer's school district personal income tax liability as prescribed under Chapter 142 (relating to tax, imposition and rate), less any credit to which the taxpayer may be entitled under § 144.3 (relating to employer withholding credit), that the taxpayer reasonably estimates to be due for the taxable year.
(c) The declaration and installment payments of estimated school district personal income tax shall be made to the tax collector for the school district at the time prescribed for the declaration and payment of earned income tax not subject to withholding under section 13-III of The Local Tax Enabling Act (53 P. S. § 6913-III).
(d) The board of a school district that imposes a school district personal income tax shall prescribe the information to be reported on the declaration required under this section and the means by which installment payments are to be made, provided that if an amended declaration is filed, any remaining unpaid installments shall be ratably increased or decreased to reflect the increase or decrease on the amended declaration. The board or its designee shall determine the format for the declaration and make necessary arrangements for the production of the declaration and dissemination to taxpayers.
(e) Notwithstanding the provisions of subsection (c), estimated school district personal income tax installment payments are payments of school district personal income tax to which § 143.3 (relating to receipt of payments) applies.
§ 143.7. Overpayment carryover.
(a) A taxpayer who has overpaid the school district personal income tax for a taxable year may have the overpayment carried forward and credited against the school district personal income tax liability for the following taxable year.
(b) The overpayment that is credited under this section is considered a payment of tax under this chapter as opposed to a tax credit and may be refunded as provided under § 146.3 (relating to refunds).
(c) An overpayment that is credited under this section may be used to satisfy a taxpayer's estimated school district personal income tax liability under § 143.6 (relating to estimated tax declarations and installment payments).
CHAPTER 144. TAX CREDITS Sec.
144.1. Payment of tax to other political subdivisions or states. 144.2. Poverty credit. 144.3. Employer withholding credit. § 144.1. Payment of tax to other political subdivisions or states.
(a) A taxpayer is entitled to a credit against the school district personal income tax as prescribed under section 14 of The Local Tax Enabling Act (53 P. S. § 6914), regarding payment of tax to other political subdivisions or states as credit or deduction and withholding tax.
(b) Notwithstanding subsection (a), a taxpayer will not be allowed a credit against the school district personal income tax for any tax imposed by any state or political subdivision located outside this Commonwealth.
§ 144.2. Poverty credit.
A taxpayer may claim the same percentage of tax forgiveness that a taxpayer is entitled to claim as a credit against the Pennsylvania Personal Income Tax liability as provided for under section 304 of the TRC (72 P. S. § 7304) against the school district personal income tax.
Example. If a taxpayer is eligible to claim 90% tax forgiveness of his Pennsylvania Personal Income Tax, the taxpayer is eligible to claim 90% tax forgiveness against his school district personal income tax.
§ 144.3. Employer withholding credit.
Any amount actually withheld under § 143.5 (relating to employer withholding) shall be allowed to the recipient of the compensation subject to withholding as a credit against the school district personal income tax liability for the taxable year in which the withholding is made.
CHAPTER 145. TAX RETURNS Sec.
145.1. Date and place of filing. 145.2. Extensions. 145.3. Form. 145.4. Joint returns. 145.5. Returns by persons other than taxpayer. 145.6. Amended returns. § 145.1. Date and place of filing.
(a) A taxpayer who during any part of a taxable year is a resident individual of a school district imposing a school district personal income tax shall file a school district personal income tax return with the tax collector for the school district on or before the date when the taxpayer is required to file the taxpayer's Pennsylvania Personal Income Tax return.
(b) A taxpayer who during the taxpayer's taxable year is a resident individual of more than one school district that imposes a school district personal income tax shall comply with subsection (a) for each school district.
§ 145.2. Extensions.
(a) A taxpayer who has an extension for filing the Pennsylvania Personal Income Tax return shall have a commensurate extension for filing a school district personal income tax return. To be entitled to the extension under this section, a taxpayer is required to provide proof of the Pennsylvania extension to the tax collector. Adequate proof includes a copy of the completed Pennsylvania application for extension of time to file, or in the event a taxpayer has an extension to file a Pennsylvania Personal Income Tax return based upon an approved extension for filing a Federal Income Tax return, a copy of the completed Federal extension request form.
(b) If a taxpayer has been denied or does not have an extension to file the taxpayer's Pennsylvania Personal Income Tax return, a tax collector may grant an extension for the filing of a school district personal income tax return upon written request from the taxpayer. The tax collector shall establish the form, if any, required for the submission of a request for an extension. The tax collector shall give a taxpayer written notice of the approval or denial of the extension request. An extension may not be longer than 6 months.
§ 145.3. Form.
(a) The board or a designee shall determine the format for the return and make necessary arrangements for the production of the return and dissemination to taxpayers.
(b) The board of the school district imposing a school district personal income tax shall prescribe the information to be included on the school district personal income tax return and the manner and place for filing. At a minimum, the return must contain the following information:
(1) The taxpayer's personal information including:
(i) Name.
(ii) Address.
(iii) Social Security number.
(2) The taxpayer's income as described in § 142.1(b) (relating to tax and imposition).
(3) A calculation of the school district personal income tax.
(4) The tax credits as provided in Chapter 144 (relating to tax credits).
(5) The tax payments made before or with the filing of the return, including estimated installment payments as described in § 143.6 (relating to estimated tax declarations and installment payments).
(6) A calculation of the balance of tax due after credits and payments, including a tax underpayment or overpayment.
(7) An overpayment to be refunded or credited.
(8) The signature of the taxpayer filing the return, or the person filing a return in the case of returns filed by persons other than the taxpayer under § 145.5 (relating to returns by persons other than taxpayer).
(9) The name, address and telephone number of any person preparing the return on behalf of the taxpayer.
(c) A return must allow for the filing of a joint return so that each taxpayer filing the joint return can return the information required in subsection (a) separately. See § 145.4 (relating to joint returns) for joint return requirements.
(d) A return must allow a taxpayer to apportion personal income during different parts of the taxable year so that the different tax rates may be applied as provided in § 142.2(b) (relating to tax rate).
§ 145.4. Joint returns.
The board of the school district imposing a school district personal income tax may authorize spouses to file joint returns under rules the board prescribes, subject to the following requirements:
(1) If spouses file a joint return, their tax liability shall be joint and several.
(2) Spouses filing a joint return may not offset one spouse's losses in a taxable class of income with the gain of the other spouse from any taxable class of income.
(3) Spouses with different taxable years or who reside in different school districts may not file a joint return.
§ 145.5. Returns by persons other than taxpayer.
Department regulations relating to Pennsylvania Personal Income Tax returns filed on behalf of deceased individuals, minors and taxpayers with disabilities and returns made by agents apply for purposes of the return for school district personal income tax. See §§ 117.3, 117.4 and 117.6 (relating to deceased individuals; minority or other disability; and returns made by agents).
§ 145.6. Amended returns.
(a) Subject to the provisions of subsection (b), a taxpayer may file an amended school district personal income tax return to correct errors contained in an original return or amended return. A board shall prescribe rules relating to filing amended returns.
(b) A taxpayer's adjusted Pennsylvania taxable personal income as reported to, determined, adjusted or assessed by the Department is within the jurisdiction of the Department and cannot be affected by the filing of an amended school district personal income tax return. Amendments to adjusted Pennsylvania taxable personal income shall be made to the Department on an amended Pennsylvania Personal Income Tax return as prescribed for the returns by Department regulation.
CHAPTER 146. ADMINISTRATION AND COLLECTION Sec.
146.1. Tax collector powers and duties. 146.2. Access to Department returns and records. 146.3. Refunds. § 146.1. Tax collector powers and duties.
(a) The tax collector is responsible to administer, receive, assess and collect the school district personal income tax levied by a board under the act.
(b) Subject to subsection (c), a tax collector shall have all the same powers, rights, responsibilities and duties for the collection of the school district personal income tax that are available for the collection of municipal taxes that may be imposed by law, including taxes imposed under the following:
(1) The Local Tax Enabling Act.
(2) Title 53 of Pennsylvania Consolidated Statutes §§ 8421--8438 (relating to the Local Taxpayer Bill of Rights Act).
(3) As otherwise provided by law.
(c) A tax collector is required to accept a taxpayer's adjusted Pennsylvania taxable personal income subject to timely Department determination and adjustment or assessment for which all appeals have been exhausted.
(d) A tax collector may disclose to or allow the Department to examine school district personal income tax returns, records, documents or information of a taxpayer within the tax collector's possession, whether obtained through audit or otherwise, for purposes of carrying out the tax collector's powers and duties under this section. Any disclosures under this subsection qualify as a disclosure for official purposes under 53 Pa.C.S. § 8347 (relating to confidentiality of tax information).
§ 146.2. Access to Department returns and records.
(a) The Department will use the Department of Community and Economic Development's Local Withholding Tax Register as prescribed under section 351 of the act (53 P. S. § 6926.351), regarding tax register and local tax withholding register, to determine the official tax collectors for a school district.
(b) Upon request, the Department may provide a tax collector by electronic transmittal an abstract of a current or former resident individual taxpayer's Pennsylvania Personal Income Tax return for purposes of the tax collector administering and collecting the school district's school district personal income tax. The Department may provide or make available for inspection and duplication, in a format determined by the Department, other taxpayer returns, records and information that the Department deems necessary for a tax collector to administer a school district personal income tax.
(c) A tax collector shall execute a confidentiality agreement as prescribed by the Department before the Department will disclose tax information under subsection (b).
(d) A tax collector shall reimburse the Department for the costs associated with the disclosure of tax information under subsection (b). The Department will prescribe a fee schedule outlining the costs. The Department will deny any request without payment of the fee.
(e) Federal Income Tax returns, records or information in the Department's possession are strictly confidential and will not be disclosed to a tax collector. Federal tax returns, records and information within the possession of the Internal Revenue Service shall be obtained directly from the Internal Revenue Service, subject to Federal law applicable to disclosure of Federal tax returns, records and information.
§ 146.3. Refunds.
Title 53 of the Pennsylvania Consolidated Statutes § 8425 (relating to refunds of overpayments) applies to refunds for overpayments of any personal income tax.
CHAPTER 147. INTEREST, PENALTIES AND COSTS OF COLLECTION Sec.
147.1. Interest. 147.2. Penalties. 147.3. Costs of collection. § 147.1. Interest.
A board may determine the rate for and the tax collector may assess and collect interest on a delinquent school district personal income tax liability in the manner provided for the determination and collection of interest on tax claims under the act of May 16, 1923 (P. L. 207, No. 153) known as the Municipal Claim and Tax Lien Law. See 53 P. S. § 7143.
§ 147.2. Penalties.
Under the authority of section 22 of The Local Tax Enabling Act (53 P. S. § 6922), the board may prescribe reasonable penalties for a taxpayer's nonpayment of school district personal income tax when due and for a person's failure to comply with this article.
§ 147.3. Costs of collection.
Under the authority of section 22.1 of The Local Tax Enabling Act (53 P. S. § 6922.1), the board may prescribe the reasonable costs of collection incurred to provide notices of delinquency or to implement similar procedures utilized to collect delinquent taxes from a taxpayer. The costs may be retained by the tax collector with the approval of the board of the school district.
CHAPTER 148. TAX APPEALS Sec.
148.1. Appeal process. § 148.1. Appeal process.
(a) Subject to subsection (b), each board levying a school district personal income tax shall establish an administrative process for taxpayers to appeal assessments, determinations, adjustments or refunds of the school district personal income tax as prescribed for eligible taxes under 53 Pa.C.S. §§ 8421--8438 (relating to the Local Taxpayer Bill of Rights Act). The provisions related to tax appeals under the Local Taxpayer Bill of Rights Act apply to appeals related to the school district personal income tax.
(b) Issues related to a taxpayer's Pennsylvania personal income, adjusted Pennsylvania taxable personal income or the Pennsylvania Personal Income Tax that affects the calculation of a taxpayer's school district personal income tax shall be raised as part of an appeal of his Pennsylvania Personal Income Tax and may not be raised as part of an appeal under this section.
[Pa.B. Doc. No. 06-2344. Filed for public inspection December 1, 2006, 9:00 a.m.]
