An Act amending Titles 53 (Municipalities Generally) and 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in taxation for public transportation, further providing for local financial support; and, in fees, further providing for fee for local use.

PRINTER'S NO. 1267
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1146
Session of
2025
INTRODUCED BY HOHENSTEIN, WAXMAN, GIRAL, FIEDLER, PIELLI, KHAN,
SANCHEZ, SOLOMON, HILL-EVANS, KRAJEWSKI, DELLOSO, CIRESI,
OTTEN, O'MARA, GREEN, DOUGHERTY, BENHAM, RIVERA, KINKEAD AND
MAYES, APRIL 4, 2025
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, APRIL 4, 2025
AN ACT
Amending Titles 53 (Municipalities Generally) and 75 (Vehicles)
of the Pennsylvania Consolidated Statutes, in taxation for
public transportation, further providing for local financial
support; and, in fees, further providing for fee for local
use.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 8602 of Title 53 of the Pennsylvania
Consolidated Statutes is amended to read:
§ 8602. Local financial support.
(a) Imposition.--Notwithstanding any other provision of law,
a county [of the second class] may, at the county's discretion,
by ordinance or resolution, obtain financial support for transit
and transportation systems and transportation infrastructure by
imposing one or more of the taxes under subsection (b). Money
obtained from the imposition shall be deposited into a
restricted account of the county.
(b) Taxes.--
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(1) A county [of the second class] may, by ordinance,
impose any of the following taxes:
(i) A tax on the sale at retail of liquor and malt
and brewed beverages within the county. The ordinance
shall be modeled on the act of June 10, 1971 (P.L.153,
No.7), known as the First Class School District Liquor
Sales Tax Act of 1971, and the rate of tax authorized
under this subparagraph may not exceed the rate
established under that act.
(ii) An excise tax on each renting of a rental
vehicle in the county. The rate of tax authorized under
this subparagraph may not exceed the rate established
under section 2301(e) of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971. As used in
this subparagraph, the term "rental vehicle" has the
meaning given to it in section 1601-A of the Tax Reform
Code of 1971.
(iii) A tax upon a transfer of real property or an
interest in real property within the limits of the
county, regardless of where the instruments making the
transfers are made, executed or delivered or where the
actual settlements on the transfer take place, to the
extent that the transactions are subject to the tax
imposed by Article XI-C of the Tax Reform Code of 1971. A
tax imposed under this subparagraph shall not exceed 0.5%
of rate limitations provided by sections 307, 311 and 320
of the act of December 31, 1965 (P.L.1257, No.511), known
as The Local Tax Enabling Act.
(iv) In addition to the tax imposed under Article
III of the Tax Reform Code of 1971, a surtax not to
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exceed 0.2% of the tax imposed on the taxable income of
resident and nonresident individuals as provided for
under Article III of the Tax Reform Code of 1971.
(v) In addition to the tax imposed under Article II
of the Tax Reform Code of 1971, a surtax equal to 0.25%
imposed on the purchase price of tangible personal
property and services subject to taxation under Article
II of the Tax Reform Code of 1971.
(vi) An annual personal property tax on motor
vehicles, to be paid upon initial registration and
renewal, not to exceed 0.5% on the fair market value of
passenger vehicles, trucks with a registered weight of
11,000 pounds and under, motorcycles and recreational
motor home vehicles registered within the county.
(vii) A local services tax in accordance with
Chapter 3 of The Local Tax Enabling Act, at a rate not to
exceed $3 per week, or $156 per year. A county levying
the local services tax shall, by ordinance, exempt any
person from the local services tax whose total earned
income and net profits from all sources within the county
are less than 200% of the Federal poverty guidelines, as
published in the Federal Register for the calendar year
in which the local services tax is levied.
(2) (Reserved).
(b.1) Computation of sales and use tax.--Within 30 days of
the notification of a county of the adoption of a tax under
subsection (b)(1)(v), the department shall establish a combined
schedule for the computation of the State sales and use tax and
the State sales and use surtax as established under subsection
(b)(1)(v) and shall:
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(1) Collect the surtax and remit the surtax proceeds
quarterly to the appropriate taxing authority.
(2) Transmit the schedule providing for the combined
computation of the State sales and use tax and the State
sales and use surtax to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin.
(b.2) Computation of personal property tax on motor
vehicles.--For purposes of subsection (b)(1)(vi), the fair
market value of a vehicle shall be calculated in a manner
prescribed by the Department of Transportation. A notice of the
calculation shall be transmitted to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin.
(b.3) Administration.--
(1) The taxes authorized under subsection (b)(1)(iii)
and (iv) shall be administered, collected and enforced under
The Local Tax Enabling Act.
(2) The tax authorized under subsection (b)(1)(v) shall
be administered, collected and enforced under the Tax Reform
Code of 1971.
(3) In administering this subsection, the department may
promulgate and enforce regulations not inconsistent with the
provisions of this section.
(4) To cover the costs of administration, the department
may retain a sum equal to the costs of administration.
(b.4) Construction.--Except as otherwise inconsistent with
this section, the provisions of Articles II, III and XI-C of the
Tax Reform Code of 1971 shall apply to the taxes imposed under
subsection (b).
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(b.5) Grants by counties.--
(1) A county may make annual grants from current
revenues or from revenue derived from taxes levied by the
county under this section to local transportation
organizations to assist in defraying the costs of operations,
maintenance and debt service of a local transportation
organization or of a particular mass transportation project
of a local transportation organization and to enter into
long-term agreements providing for the payment of the costs.
(2) The obligation of a county under an agreement under
paragraph (1) shall not be considered to be a part of the
county's indebtedness, nor shall the obligation be deemed to
impair the status of any indebtedness of the county which
would otherwise be considered as self-sustaining.
(3) Nothing in this subsection shall be construed to
preclude two or more counties from entering into an agreement
to jointly make grants from current revenues or from revenue
derived from taxes levied by a county under this section to a
local transportation organization or to a particular mass
transportation project of a local transportation organization
or to jointly enter into long-term agreements for providing
these types of payments.
(4) A county may make use of the money from current
revenues or from revenue derived from taxes levied by the
county under this section for Commonwealth, county or
municipal transportation infrastructure purposes described
under 75 Pa.C.S. § 9010(b)(2)(i) (relating to disposition and
use of tax). The money may supplement or match money provided
by the Motor License Fund, the Multimodal Transportation Fund
or the Liquid Fuels Tax Fund.
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(b.6) Regulations.--The department may promulgate
regulations, including temporary regulations, as may be
necessary and appropriate to administer the provisions of this
section, according to the following:
(1) The department shall transmit any temporary
regulations to the Legislative Reference Bureau for
publication in the next available issue of the Pennsylvania
Bulletin.
(2) Regulations promulgated by the department during the
two years following the effective date of this paragraph
shall be deemed temporary regulations.
(3) Temporary regulations shall expire no later than
three years following the publication of the temporary
regulations, or upon promulgation of final regulations,
whichever occurs first.
(4) The department may promulgate temporary regulations
not subject to:
(i) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(ii) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(c) [Definition.--For purposes of this section, the term
"county of the second class" shall not include a county of the
second class A.] Definitions.--As used in this section, the
following words and phrases shall have the meanings given to
them in this subsection unless the context clearly indicates
otherwise:
"County." Any of the following:
(1) A county of the first class.
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(2) A county of the second class.
(3) A county of the second class A.
(4) A county of the third class with a population of at
least 525,000 but less than 540,000, based on the 2020
Federal decennial census.
"Department." The Department of Revenue of the Commonwealth.
Section 2. Section 1935 of Title 75 is amended by adding a
subsection to read:
§ 1935. Fee for local use.
* * *
(b.1) Urban and suburban counties.--Beginning after June 30,
2025, a county of the first class, a county of the second class,
a county of the second class A or a county of the third class
with a population above 525,000 and less than 540,000 based on
the 2020 Federal decennial census may, in its discretion, by
ordinance, impose a fee of $5 in addition to the fee in
subsection (b) for each nonexempt vehicle registered to an
address located in the county. A county of the first class, a
county of the second class, a county of the second class A or a
county of the third class with a population above 525,000 and
less than 540,000 based on the 2020 Federal decennial census
shall notify the department of the passage of the ordinance 90
days prior to the effective date of the ordinance.
* * *
Section 3. Nothing in this act shall be construed as
modifying State operating or capital funding formula
allocations, or corresponding local match requirements, for
local transportation organizations provided for under 74 Pa.C.S.
Pt. II on the effective date of this section.
Section 4. This act shall take effect in 120 days.
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