The bill amends the Local Tax Enabling Act to clarify the delegation of taxing powers and impose restrictions on local authorities regarding the levying of certain taxes. Notably, it deletes provisions that allowed local taxing authorities to levy a tax on the privilege of doing business based on specific criteria, including the duration of business transactions within the jurisdiction and the definition of a "base of operations." Additionally, it removes the authority for local authorities to levy, assess, and collect a mercantile or business privilege tax on gross receipts, along with various exemptions previously outlined.

Furthermore, the bill introduces a new section that mandates the expiration of all mercantile, business privilege, and other business gross receipts taxes by December 31, 2025. After this date, political subdivisions will be prohibited from levying, assessing, or collecting these taxes. The act will take immediate effect for the addition of this expiration section, while the remaining provisions will take effect on December 31, 2026.

Statutes/Laws affected:
Printer's No. 1886 (Jun 10, 2025): P.L.1257, No.511