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:
(1) Per capita, poll or other similar head taxes, ten dollars ($10).(2) On each dollar of the whole volume of business transacted by wholesale dealers in goods, wares and merchandise, one mill, by retail dealers in goods, wares and merchandise and by proprietors of restaurants or other places where food, drink and refreshments are served, one and one-half mills; except in cities of the second class, where rates shall not exceed one mill on wholesale dealers and two mills on retail dealers and proprietors. No such tax shall be levied on the dollar volume of business transacted by wholesale and retail dealers derived from the resale of goods, wares and merchandise, taken by any dealer as a trade-in or as part payment for other goods, wares and merchandise, except to the extent that the resale price exceeds the trade-in allowance. When a political subdivision which currently levies, assesses or collects a mercantile or business privilege tax on gross receipts under section 533 of the act of December 13, 1988 (P.L. 1121, No. 145), known as the "Local Tax Reform Act," merges with one or more political subdivisions to form a new political subdivision on or after August 1, 2008, the new political subdivision may levy that mercantile or business privilege tax in the first year following the merger at a rate necessary to generate the same revenues generated in the last fiscal year that the merging political subdivision generated before the merger. Such rate shall remain in effect for the new political subdivision in subsequent years, but the revenue-neutral limitation shall only apply to the first year following the merger. If the merging political subdivision had previously shared the rate of taxation with another political subdivision, the nonmerging political subdivision which had shared the rate is capped at the rate it was previously levying.(3) On wages, salaries, commissions and other earned income of individuals, one percent.(4) On retail sales involving the transfer of title or possession of tangible personal property, two percent.(5) On the transfer of real property, one percent.(6) On admissions to places of amusement, athletic events and the like, and on motion picture theatres in cities of the second class, ten percent.(7) Flat rate occupation taxes not using a millage or percentage as a basis, ten dollars ($10).(8) Local services taxes, fifty-two dollars ($52).(9) On admissions to ski facilities, ten percent. The tax base upon which the tax shall be levied shall not exceed forty percent of the cost of the lift ticket. The lift ticket shall include all costs of admissions to the ski facility.(10) On admissions to golf courses, ten percent. The tax base upon which the tax shall be levied shall not exceed forty percent of the greens fee. The greens fee shall include all costs of admissions to the golf course.(11) Deleted by 2004, Dec. 1, P.L. 1729, No. 222, § 3, imd. effective.(12) On payrolls, fifty-five hundredths percent.Except as otherwise provided in this chapter, at any time two political subdivisions shall impose any one of the above taxes on the same person, subject, business, transaction or privilege, located within both such political subdivisions, during the same year or part of the same year, under the authority of this chapter then the tax levied by a political subdivision under the authority of this chapter shall, during the time such duplication of the tax exists, except as hereinafter otherwise provided, be one-half of the rate, as above limited, and such one-half rate shall become effective by virtue of the requirements of this chapter from the day such duplication becomes effective without any action on the part of the political subdivision imposing the tax under the authority of this chapter. When any one of the above taxes has been levied under the provisions of this chapter by one political subdivision and a subsequent levy is made either for the first time or is revived after a lapse of time by another political subdivision on the same person, subject, business, transaction or privilege at a rate that would make the combined levies exceed the limit allowed by this subdivision, the tax of the second political subdivision shall not become effective until the end of the fiscal year for which the prior tax was levied, unless:
(1) Notice indicating its intention to make such levy is given to the first taxing body by the second taxing body as follows: (i) when the notice is given to a school district it shall be given at least forty-five days prior to the last day fixed by law for the levy of its school taxes;(ii) when given to any other political subdivision it shall be prior to the first day of January immediately preceding, or if a last day for the adoption of the budget is fixed by law, at least forty-five days prior to such last day; or(2) Unless the first taxing body shall indicate by appropriate resolution its desire to waive notice requirements in which case the levy of the second taxing body shall become effective on such date as may be agreed upon by the two taxing bodies.It is the intent and purpose of this provision to limit rates of taxes referred to in this section so that the entire burden of one tax on a person, subject, business, transaction or privilege shall not exceed the limitations prescribed in this section: Provided, however, That any two political subdivisions which impose any one of the above taxes, on the same person, subject, business, transaction or privilege during the same year or part of the same year may agree among themselves that, instead of limiting their respective rates to one-half of the maximum rate herein provided, they will impose respectively different rates, the total of which shall not exceed the maximum rate as above permitted.
Notwithstanding the provisions of this section, any city of the second class A may enact a tax upon wages, salaries, commissions and other earned income of individuals resident therein, not exceeding one percent, even though a school district levies a similar tax on the same person provided that the aggregate of both taxes does not exceed two percent.
1965, Dec. 31, P.L. 1257, § 8 [53 P.S. § 6908]. Amended 1967, Dec. 27, P.L. 894, § 1; 1984, Oct. 11, P.L. 885, No. 172, § 3, effective in 60 days; 1987, July 9, P.L. 203, No. 30, § 2, effective Jan. 1, 1988; 2004, Dec. 1, P.L. 1729, No. 222, § 3, imd. effective; 2007, June 21, P.L. 13, No. 7, § 3, imd. effective. Renumbered as § 311 and amended 2008, July 2, P.L. 197, No. 32, § 11, imd. effective. Amended 2008, Oct. 15, P.L. 1615, No. 130, § 1, imd. effective; 2013, July 2, P.L. 240, No. 39, § 1, imd. effective. See P.L. 240 2013 No. 39, § 2.