HB 1146 — 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
 1   Amending Titles 53 (Municipalities Generally) and 75 (Vehicles)
 2      of the Pennsylvania Consolidated Statutes, in taxation for
 3      public transportation, further providing for local financial
 4      support; and, in fees, further providing for fee for local
 5      use.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    Section 8602 of Title 53 of the Pennsylvania
 9   Consolidated Statutes is amended to read:
10   § 8602.   Local financial support.
11      (a)    Imposition.--Notwithstanding any other provision of law,
12   a county [of the second class] may, at the county's discretion,
13   by ordinance or resolution, obtain financial support for transit
14   and transportation systems and transportation infrastructure by
15   imposing one or more of the taxes under subsection (b). Money
16   obtained from the imposition shall be deposited into a
17   restricted account of the county.
18      (b)    Taxes.--
 1        (1)   A county [of the second class] may, by ordinance,
 2    impose any of the following taxes:
 3              (i)    A tax on the sale at retail of liquor and malt
 4        and brewed beverages within the county. The ordinance
 5        shall be modeled on the act of June 10, 1971 (P.L.153,
 6        No.7), known as the First Class School District Liquor
 7        Sales Tax Act of 1971, and the rate of tax authorized
 8        under this subparagraph may not exceed the rate
 9        established under that act.
10              (ii)    An excise tax on each renting of a rental
11        vehicle in the county. The rate of tax authorized under
12        this subparagraph may not exceed the rate established
13        under section 2301(e) of the act of March 4, 1971 (P.L.6,
14        No.2), known as the Tax Reform Code of 1971. As used in
15        this subparagraph, the term "rental vehicle" has the
16        meaning given to it in section 1601-A of the Tax Reform
17        Code of 1971.
18              (iii)    A tax upon a transfer of real property or an
19        interest in real property within the limits of the
20        county, regardless of where the instruments making the
21        transfers are made, executed or delivered or where the
22        actual settlements on the transfer take place, to the
23        extent that the transactions are subject to the tax
24        imposed by Article XI-C of the Tax Reform Code of 1971. A
25        tax imposed under this subparagraph shall not exceed 0.5%
26        of rate limitations provided by sections 307, 311 and 320
27        of the act of December 31, 1965 (P.L.1257, No.511), known
28        as The Local Tax Enabling Act.
29              (iv)    In addition to the tax imposed under Article
30        III of the Tax Reform Code of 1971, a surtax not to

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 1          exceed 0.2% of the tax imposed on the taxable income of
 2          resident and nonresident individuals as provided for
 3          under Article III of the Tax Reform Code of 1971.
 4                (v)    In addition to the tax imposed under Article II
 5          of the Tax Reform Code of 1971, a surtax equal to 0.25%
 6          imposed on the purchase price of tangible personal
 7          property and services subject to taxation under Article
 8          II of the Tax Reform Code of 1971.
 9                (vi)    An annual personal property tax on motor
10          vehicles, to be paid upon initial registration and
11          renewal, not to exceed 0.5% on the fair market value of
12          passenger vehicles, trucks with a registered weight of
13          11,000 pounds and under, motorcycles and recreational
14          motor home vehicles registered within the county.
15                (vii)    A local services tax in accordance with
16          Chapter 3 of The Local Tax Enabling Act, at a rate not to
17          exceed $3 per week, or $156 per year. A county levying
18          the local services tax shall, by ordinance, exempt any
19          person from the local services tax whose total earned
20          income and net profits from all sources within the county
21          are less than 200% of the Federal poverty guidelines, as
22          published in the Federal Register for the calendar year
23          in which the local services tax is levied.
24          (2)   (Reserved).
25      (b.1)   Computation of sales and use tax.--Within 30 days of
26   the notification of a county of the adoption of a tax under
27   subsection (b)(1)(v), the department shall establish a combined
28   schedule for the computation of the State sales and use tax and
29   the State sales and use surtax as established under subsection
30   (b)(1)(v) and shall:

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 1          (1)     Collect the surtax and remit the surtax proceeds
 2      quarterly to the appropriate taxing authority.
 3          (2)     Transmit the schedule providing for the combined
 4      computation of the State sales and use tax and the State
 5      sales and use surtax to the Legislative Reference Bureau for
 6      publication in the next available issue of the Pennsylvania
 7      Bulletin.
 8      (b.2)   Computation of personal property tax on motor
 9   vehicles.--For purposes of subsection (b)(1)(vi), the fair
10   market value of a vehicle shall be calculated in a manner
11   prescribed by the Department of Transportation. A notice of the
12   calculation shall be transmitted to the Legislative Reference
13   Bureau for publication in the next available issue of the
14   Pennsylvania Bulletin.
15      (b.3)   Administration.--
16          (1)     The taxes authorized under subsection (b)(1)(iii)
17      and (iv) shall be administered, collected and enforced under
18      The Local Tax Enabling Act.
19          (2)     The tax authorized under subsection (b)(1)(v) shall
20      be administered, collected and enforced under the Tax Reform
21      Code of 1971.
22          (3)     In administering this subsection, the department may
23      promulgate and enforce regulations not inconsistent with the
24      provisions of this section.
25          (4)     To cover the costs of administration, the department
26      may retain a sum equal to the costs of administration.
27      (b.4)   Construction.--Except as otherwise inconsistent with
28   this section, the provisions of Articles II, III and XI-C of the
29   Tax Reform Code of 1971 shall apply to the taxes imposed under
30   subsection (b).

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 1    (b.5)   Grants by counties.--
 2        (1)   A county may make annual grants from current
 3    revenues or from revenue derived from taxes levied by the
 4    county under this section to local transportation
 5    organizations to assist in defraying the costs of operations,
 6    maintenance and debt service of a local transportation
 7    organization or of a particular mass transportation project
 8    of a local transportation organization and to enter into
 9    long-term agreements providing for the payment of the costs.
10        (2)   The obligation of a county under an agreement under
11    paragraph (1) shall not be considered to be a part of the
12    county's indebtedness, nor shall the obligation be deemed to
13    impair the status of any indebtedness of the county which
14    would otherwise be considered as self-sustaining.
15        (3)   Nothing in this subsection shall be construed to
16    preclude two or more counties from entering into an agreement
17    to jointly make grants from current revenues or from revenue
18    derived from taxes levied by a county under this section to a
19    local transportation organization or to a particular mass
20    transportation project of a local transportation organization
21    or to jointly enter into long-term agreements for providing
22    these types of payments.
23        (4)   A county may make use of the money from current
24    revenues or from revenue derived from taxes levied by the
25    county under this section for Commonwealth, county or
26    municipal transportation infrastructure purposes described
27    under 75 Pa.C.S. § 9010(b)(2)(i) (relating to disposition and
28    use of tax). The money may supplement or match money provided
29    by the Motor License Fund, the Multimodal Transportation Fund
30    or the Liquid Fuels Tax Fund.

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 1      (b.6)     Regulations.--The department may promulgate
 2   regulations, including temporary regulations, as may be
 3   necessary and appropriate to administer the provisions of this
 4   section, according to the following:
 5            (1)   The department shall transmit any temporary
 6      regulations to the Legislative Reference Bureau for
 7      publication in the next available issue of the Pennsylvania
 8      Bulletin.
 9            (2)   Regulations promulgated by the department during the
10      two years following the effective date of this paragraph
11      shall be deemed temporary regulations.
12            (3)   Temporary regulations shall expire no later than
13      three years following the publication of the temporary
14      regulations, or upon promulgation of final regulations,
15      whichever occurs first.
16            (4)   The department may promulgate temporary regulations
17      not subject to:
18                  (i)    Sections 201, 202, 203, 204 and 205 of the act
19            of July 31, 1968 (P.L.769, No.240), referred to as the
20            Commonwealth Documents Law.
21                  (ii)   The act of June 25, 1982 (P.L.633, No.181),
22            known as the Regulatory Review Act.
23      (c)   [Definition.--For purposes of this section, the term
24   "county of the second class" shall not include a county of the
25   second class A.] Definitions.--As used in this section, the
26   following words and phrases shall have the meanings given to
27   them in this subsection unless the context clearly indicates
28   otherwise:
29      "County."     Any of the following:
30            (1)   A county of the first class.

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 1             (2)   A county of the second class.
 2             (3)   A county of the second class A.
 3             (4)   A county of the third class with a population of at
 4      least 525,000 but less than 540,000, based on the 2020
 5      Federal decennial census.
 6      "Department."     The Department of Revenue of the Commonwealth.
 7      Section 2.     Section 1935 of Title 75 is amended by adding a
 8   subsection to read:
 9   § 1935.    Fee for local use.
10      * * *
11      (b.1)    Urban and suburban counties.--Beginning after June 30,
12   2025, a county of the first class, a county of the second class,
13   a county of the second class A or a county of the third class
14   with a population above 525,000 and less than 540,000 based on
15   the 2020 Federal decennial census may, in its discretion, by
16   ordinance, impose a fee of $5 in addition to the fee in
17   subsection (b) for each nonexempt vehicle registered to an
18   address located in the county. A county of the first class, a
19   county of the second class, a county of the second class A or a
20   county of the third class with a population above 525,000 and
21   less than 540,000 based on the 2020 Federal decennial census
22   shall notify the department of the passage of the ordinance 90
23   days prior to the effective date of the ordinance.
24      * * *
25      Section 3.     Nothing in this act shall be construed as
26   modifying State operating or capital funding formula
27   allocations, or corresponding local match requirements, for
28   local transportation organizations provided for under 74 Pa.C.S.
29   Pt. II on the effective date of this section.
30      Section 4.     This act shall take effect in 120 days.

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