This bill amends the Local Tax Enabling Act of December 31, 1965, specifically addressing the local services tax levied by political subdivisions. It introduces new provisions that allow political subdivisions to exempt individuals from the local services tax if their total earned income and net profits are below a specified threshold. The threshold for exemption is raised from $12,000 to $15,600 for those in subdivisions levying a tax rate of $52 or less, while those levying a rate exceeding $52 are mandated to provide this exemption.

Additionally, the bill modifies the maximum allowable rate for local services taxes, increasing the cap from $52 to $156. This change aims to provide greater flexibility for political subdivisions in managing their local services tax rates while ensuring that lower-income individuals are not unduly burdened by these taxes. The act is set to take effect 60 days after its passage.