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 employment duties outside the city. The bill introduces a new chapter, Chapter 6, which outlines the authority of first-class cities to impose taxes, the creation of necessary offices for tax collection, and the enforcement of penalties for nonpayment of taxes.

Additionally, the bill mandates that any tax imposed by a city of the first class on salaries, wages, commissions, or other compensation will be credited by the taxpayer's school district and municipality of residence, effective for tax years beginning after December 31, 2025. The bill also repeals the Sterling Act and certain provisions of the Taxpayer Relief Act to facilitate the implementation of these new tax regulations. Overall, the legislation aims to clarify and enhance the tax authority of first-class cities while ensuring that residents are not double-taxed on their income.

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