An Act amending the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, in local taxes, further providing for delegation of taxing powers and restrictions thereon and for limitations on rates of specific taxes.

PRINTER'S NO. 3360
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2488
Session of
2026
INTRODUCED BY SMITH-WADE-EL, FLICK, HILL-EVANS, RIVERA,
D. WILLIAMS, SANCHEZ, SAPPEY, DONAHUE, MAYES, GUZMAN,
McNEILL, CEPEDA-FREYTIZ, MERSKI, BOYD, STENDER AND DALEY,
MAY 5, 2026
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, MAY 6, 2026
AN ACT
Amending the act of December 31, 1965 (P.L.1257, No.511),
entitled "An act empowering cities of the second class,
cities of the second class A, cities of the third class,
boroughs, towns, townships of the first class, townships of
the second class, school districts of the second class,
school districts of the third class and school districts of
the fourth class including independent school districts, to
levy, assess, collect or to provide for the levying,
assessment and collection of certain taxes subject to maximum
limitations for general revenue purposes; authorizing the
establishment of bureaus and the appointment and compensation
of officers, agencies and employes to assess and collect such
taxes; providing for joint collection of certain taxes,
prescribing certain definitions and other provisions for
taxes levied and assessed upon earned income, providing for
annual audits and for collection of delinquent taxes, and
permitting and requiring penalties to be imposed and
enforced, including penalties for disclosure of confidential
information, providing an appeal from the ordinance or
resolution levying such taxes to the court of quarter
sessions and to the Supreme Court and Superior Court," in
local taxes, further providing for delegation of taxing
powers and restrictions thereon and for limitations on rates
of specific taxes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 301.1(d) and 311(8) of the act of
December 31, 1965 (P.L.1257, No.511), known as The Local Tax
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Enabling Act, are amended to read:
Section 301.1. Delegation of Taxing Powers and Restrictions
Thereon.--* * *
(d) Each political subdivision levying the local services
tax at a rate exceeding ten dollars ($10) shall, and each
political subdivision levying the local services tax at a rate
of ten dollars ($10) or less may, by ordinance or resolution,
exempt any person from the local services tax whose total earned
income and net profits from all sources within the political
subdivision is less than twelve thousand dollars ($12,000) for
the calendar year in which the local services tax is levied.
Each political subdivision levying the local services tax at a
rate exceeding fifty-two dollars ($52) shall, and each political
subdivision levying the local services tax at a rate of fifty-
two dollars ($52) or less may, by ordinance or resolution,
exempt any person from the local services tax whose total earned
income and net profits from all sources within the political
subdivision is less than fifteen thousand six hundred dollars
($15,600) for the calendar year in which the local services tax
is levied.
* * *
Section 311. Limitations on Rates of Specific Taxes.--No
taxes levied under the provisions of this chapter shall be
levied by any political subdivision on the following subjects
exceeding the rates specified in this section:
* * *
(8) Local services taxes, [fifty-two dollars ($52)] one
hundred fifty-six dollars ($156).
* * *
Section 2. This act shall take effect in 60 days.
20260HB2488PN3360 - 2 -
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