This bill amends the Local Tax Enabling Act to include provisions specifically for cities of the first class in Pennsylvania. It expands the authority of city councils to levy, assess, and collect local taxes for general revenue purposes, while also prohibiting them from taxing certain individuals, particularly nonresidents who perform their work outside the city. The bill introduces a new chapter, Chapter 6, which outlines the specific powers and limitations regarding local taxation in first-class cities, including the creation of necessary offices for tax collection and the imposition of penalties for nonpayment.

Additionally, the bill mandates that for tax years beginning after December 31, 2025, any taxes collected by a city of the first class on salaries, wages, commissions, or other compensation must be credited by the taxpayer's school district and municipality of residence. This aims to ensure that residents are not double-taxed and provides a framework for the reimbursement of taxes. The bill also repeals the Sterling Act and certain provisions of the Taxpayer Relief Act to facilitate these changes, while ensuring that existing contracts and obligations under the Sterling Act remain unaffected.

Statutes/Laws affected:
Printer's No. 500 (Mar 26, 2025): P.L.1257, No.511, P.L.769, No.240
Printer's No. 0500: P.L.1257, No.511, P.L.769, No.240