Section 6926.321 - General tax authorization(a)General rule.--A board of school directors may levy, assess and collect a tax on earned income and net profits or a tax on personal income as provided in this section for the purpose of funding homestead and farmstead exclusions to reduce school district property taxes.(b)Earned income and net profits tax.--(1) A board of school directors may, in accordance with section 331.2, levy or increase a tax on earned income and net profits of resident individuals for the purpose of funding homestead and farmstead exclusions.(2) In addition to the authorization provided under paragraph (1), a school district may, in accordance with section 332, levy or increase a tax on earned income and net profits of resident individuals for the purpose of further funding homestead and farmstead exclusions. The board of school directors shall round the rate of the earned income and net profits tax levied pursuant to this section to the nearest 0.1%. For purposes of calculating the combined tax rate authorized under paragraph (1) and this paragraph, the portion of tax dedicated to the increase in revenue permitted under paragraph (4), if any, shall be excluded.(4) Notwithstanding section 334, the rate of the earned income and net profits tax proposed to be levied and assessed for the fiscal year immediately following the year in which the tax is authorized may provide for an increase in revenue of not more than 2% of the estimated revenue from the earned income and net profits tax authorized under paragraph (1) or (2), which may be used for the operations of the school district.(c)Personal income tax.--(1) A board of school directors may levy, assess and collect a tax on the personal income of resident individuals at a rate determined by the board of school directors.(2) A school district which seeks to levy the tax authorized under paragraph (1) must comply with section 331.2 or 332 and the following:(i) The school district shall convert, in a revenue-neutral manner, any existing earned income and net profits tax rates levied pursuant to any other act to a personal income tax rate.(ii) Any earned income and net profits tax imposed pursuant to section 331.2 or 332 shall be converted to a personal income tax rate which generates the same amount of tax revenue and shall be used for funding exclusions for homestead and farmstead property.(iii) A school district may, in accordance with section 331.2 or 332, levy an additional tax on the personal income of resident individuals for the purpose of further funding homestead and farmstead exclusions.(iv) For purposes of the referendum question under section 331.2 or 332, the board of school directors shall round the rate of the personal income tax levied pursuant to this subparagraph to the nearest 0.1%. For purposes of calculating the combined tax rate, the portion of tax dedicated to the increase in revenue permitted under paragraph (6), if any, shall be excluded.(3) All revenue generated by a school district pursuant to paragraph (2)(ii) and (iii) shall be used as provided in sections 334 and 335.(4) If a board of school directors seeks to impose a personal income tax under this subsection and the referendum under section 331.2 or 332 is approved by the electorate, the board of school directors shall have no authority to impose an earned income and net profits tax under subsection (b) or under any other act.(5) A personal income tax imposed under the authority of this section shall be levied by the school district on each of the classes of income specified in section 303 of the Tax Reform Code and regulations under that section, the provisions of which are incorporated by reference into this chapter.(i) Notwithstanding the provisions of section 353(f) of the Tax Reform Code, the Department of Revenue may permit the proper officer or an authorized agent of a school district imposing a personal income tax pursuant to this chapter to inspect the tax returns of any taxpayer of the school district or may furnish to the officer or an authorized agent an abstract of the return of income of any current or former resident of the school district or supply information concerning any item of income contained in any tax return. The officer or authorized agent of the school district imposing a tax under this chapter shall be furnished the requested information upon payment to the Department of Revenue of the actual cost of providing the requested information.(ii)(A) Except for official purposes or as provided by law, it shall be unlawful for any officer or authorized agent of a school district to do any of the following:(I) Disclose to any other individual or entity the amount or source of income, profits, losses, expenditures or any particular information concerning income, profits, losses or expenditures contained in any return.(II) Permit any other individual or entity to view or examine any return or copy of a return or any book containing any abstract or particulars.(III) Print, publish or publicize in any manner any return; any particular information contained in or concerning the return; any amount or source of income, profits, losses or expenditures in or concerning the return; or any particular information concerning income, profits, losses or expenditures contained in or relating to any return.(B) Any officer or authorized agent of a school district that violates clause (A):(I) May be fined not more than $1,000 or imprisoned for not more than one year, or both.(II) May be removed from office or discharged from employment.(6) Notwithstanding section 334, the rate of the personal income tax proposed to be levied and assessed for the first fiscal year immediately following the year in which the tax is authorized may provide for an increase in revenue of not more than 2% of the estimated revenue from the personal income tax authorized under paragraph (2)(iii), which may be used for the operations of the school district.(d)Execution of tax rate.--A tax authorized under section 331.2 or 332 shall be self-executing and shall be effective beginning on the first day of the fiscal year which begins after the tax is authorized. A tax rate under this subsection shall continue in force on a fiscal year basis without annual reenactment except in a year in which the rate of the tax is changed or the tax is repealed. 2006, June 27, P.L. 1873, No. 1(Spec. Sess. No. 1), § 321, imd. effective.