HB 2488 — 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
 1   Amending the act of December 31, 1965 (P.L.1257, No.511),
 2      entitled "An act empowering cities of the second class,
 3      cities of the second class A, cities of the third class,
 4      boroughs, towns, townships of the first class, townships of
 5      the second class, school districts of the second class,
 6      school districts of the third class and school districts of
 7      the fourth class including independent school districts, to
 8      levy, assess, collect or to provide for the levying,
 9      assessment and collection of certain taxes subject to maximum
10      limitations for general revenue purposes; authorizing the
11      establishment of bureaus and the appointment and compensation
12      of officers, agencies and employes to assess and collect such
13      taxes; providing for joint collection of certain taxes,
14      prescribing certain definitions and other provisions for
15      taxes levied and assessed upon earned income, providing for
16      annual audits and for collection of delinquent taxes, and
17      permitting and requiring penalties to be imposed and
18      enforced, including penalties for disclosure of confidential
19      information, providing an appeal from the ordinance or
20      resolution levying such taxes to the court of quarter
21      sessions and to the Supreme Court and Superior Court," in
22      local taxes, further providing for delegation of taxing
23      powers and restrictions thereon and for limitations on rates
24      of specific taxes.
25      The General Assembly of the Commonwealth of Pennsylvania
26   hereby enacts as follows:
27      Section 1.    Sections 301.1(d) and 311(8) of the act of
28   December 31, 1965 (P.L.1257, No.511), known as The Local Tax
 1   Enabling Act, are amended to read:
 2      Section 301.1.     Delegation of Taxing Powers and Restrictions
 3   Thereon.--* * *
 4      (d)   Each political subdivision levying the local services
 5   tax at a rate exceeding ten dollars ($10) shall, and each
 6   political subdivision levying the local services tax at a rate
 7   of ten dollars ($10) or less may, by ordinance or resolution,
 8   exempt any person from the local services tax whose total earned
 9   income and net profits from all sources within the political
10   subdivision is less than twelve thousand dollars ($12,000) for
11   the calendar year in which the local services tax is levied.
12   Each political subdivision levying the local services tax at a
13   rate exceeding fifty-two dollars ($52) shall, and each political
14   subdivision levying the local services tax at a rate of fifty-
15   two dollars ($52) or less may, by ordinance or resolution,
16   exempt any person from the local services tax whose total earned
17   income and net profits from all sources within the political
18   subdivision is less than fifteen thousand six hundred dollars
19   ($15,600) for the calendar year in which the local services tax
20   is levied.
21      * * *
22      Section 311.     Limitations on Rates of Specific Taxes.--No
23   taxes levied under the provisions of this chapter shall be
24   levied by any political subdivision on the following subjects
25   exceeding the rates specified in this section:
26      * * *
27      (8)   Local services taxes, [fifty-two dollars ($52)] one
28   hundred fifty-six dollars ($156).
29      * * *
30      Section 2.     This act shall take effect in 60 days.

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