Authorizing counties to impose sales and use taxes; providing for the levying, assessment and collection of taxes and for the powers and duties of the Department of Community and Economic Development, the Department of Revenue and the State Treasurer; and establishing the County Sales and Use Tax Fund.
Impact
If enacted, HB 678 would amend existing laws and give county boards the authority to impose this tax after a majority vote by the county electorate through a referendum. Revenue from this sales tax would be specifically earmarked for maintaining core services such as police, fire, public health, housing, and code enforcement, directly impacting how counties can finance essential services without over-relying on property taxes. The bill articulates a clear protocol for collecting and allocating these new funds, thereby enhancing the financial autonomy of county governments.
Summary
House Bill 678, known as the Optional Sales Tax or Property Tax Relief and Municipal Assistance Act, aims to empower counties in Pennsylvania to levy a 1% sales and use tax on tangible personal property and services. This legislative measure also establishes the County Sales and Use Tax Fund, which is designated for funding essential county and municipal services, potentially alleviating property tax burdens for citizens. The overarching goal is to enhance local revenue generation and support municipal needs through a newly authorized tax structure.
Sentiment
The sentiment surrounding HB 678 appears to be favorable among local government officials who see this as a vital tool for increasing local revenues in a manner that can reduce reliance on property tax systems. However, the sentiment may be polarized among voters who could express concerns regarding additional taxation. Supporters argue that the tax would provide necessary resources to address pressing municipal needs, while opponents may worry about the impacts on consumer spending and overall economic burden.
Contention
Notably, discussions around this bill highlight tension between the imposition of new taxes and the relief of existing tax burdens, particularly property taxes. While proponents argue that the tax can be a sustainable funding source for essential services that directly benefit the community, critics might contend that any additional tax increases should be met with caution, ensuring there is no adverse effect on local residents' financial situations. As the bill moves through the legislative process, these points of contention will likely drive public debate.
Expanding the eligible uses for the 0% state rate for sales tax for certain utilities and the levying of sales tax on such sales by cities and counties and authorizing cities and counties to exempt such sales from such city or county taxes.
In sale of property, providing for older adults and delinquent real estate tax notification to designated individual; and imposing duties on the Department of Community and Economic Development.
Eliminating school district property taxes; imposing county and school district taxes; establishing the School District Emergency Fund and the School District Property Tax Elimination Fund; consolidating Articles II and III of the Tax Reform Code of 1971; in preliminary provisions relating to sales and use tax, providing for definitions; in taxation generally relating to sales and use tax, providing for exclusions and for transfer to county sales and use tax accounts; in preliminary provisions relating to personal income tax, providing for definitions; and making repeals.
Authorizing local taxing authorities to provide for tax exemptions for improvements and redevelopment of churches, hospitals and schools; establishing the Economic Development and Mixed-Use Redevelopment Advisory Committee within the State Planning Board; and conferring powers and imposing duties on the Department of Community and Economic Development.
Authorizing local taxing authorities to provide for tax exemptions for improvements and redevelopment of shopping malls; establishing the Economic Development and Mixed-Use Redevelopment Advisory Committee within the State Planning Board; and conferring powers and imposing duties on the Department of Community and Economic Development.
Establishing the Pennsylvania-Ireland Trade Commission and the Pennsylvania-Ireland Trade Commission Fund; imposing duties on the Department of Community and Economic Development; providing for the Entertainment Economic Enhancement Program;
Providing for an annual revenue sharing program for municipalities relating to tax-exempt real property; establishing the Tax-exempt Property Municipal Assistance Fund; imposing powers and duties on the Department of Community and Economic Development; and making a repeal.
Providing for an annual revenue-sharing program for municipalities relating to tax-exempt real property; establishing the Tax-exempt Property Municipal Assistance Fund; imposing powers and duties on the Department of Community and Economic Development; and making a repeal.
Providing for food desert opportunity zones and for food desert opportunity zone tax credits; and imposing powers and duties on the Department of Community and Economic Development and the Department of Revenue.
Relating to revocation of a charter for an open-enrollment charter school and procedures for the disposition of property owned by a charter school after revocation or surrender of a charter.
Relating to the effective date of certain actions taken by the commissioner of education against school districts that exceed the equalized wealth level and to reattachment of property detached from a school district by the commissioner of education to achieve the equalized wealth level.
Relating to the effective date of certain actions taken by the commissioner of education against school districts that exceed the equalized wealth level and to reattachment of property detached from a school district by the commissioner of education to achieve the equalized wealth level.