Section 6926.332 - Adoption of further referendum(a)General rule.--In addition to the provisions of section 331.2, a board of school directors may:(1) Levy, assess and collect an earned income and net profits tax authorized under section 321(b)(2) only after obtaining the approval of the electorate of the school district in a public referendum at a municipal election. The first such public referendum must be conducted no earlier than the municipal election of 2009.(2) Levy, assess and collect a personal income tax authorized under section 321(c) only after obtaining the approval of the electorate of the school district in a public referendum at a municipal election. The first such public referendum must be conducted no earlier than the municipal election of 2009, and no such public referendum may be conducted until the Department of Revenue receives final approval of regulations governing the collection of a personal income tax.(b)Submittal of referendum.--(1) A board of school directors may submit, at a municipal election, a referendum question to the electors of the school district seeking voter approval allowing the school district to levy, assess and collect an earned income and net profits tax or a personal income tax for the purpose of annually funding homestead and farmstead exclusions or millage reductions in certain circumstances. Prior to placing a referendum question on the ballot, the board of school directors must adopt a resolution pursuant to this section. The board of school directors must give public notice of its intent to adopt the resolution in the manner provided by section 306 of the Local Tax Enabling Act and must conduct at least one public hearing on the resolution.(2) The board of school directors shall submit the referendum question required under this section to the election officials of each county in which the school district is situate no later than 60 days prior to a municipal election. The election officials shall cause the referendum question to be submitted to the electors of the school district.(3) The referendum question shall state the rate of the proposed earned income and net profits tax or personal income tax to be levied, the reason for the tax, the estimated per homestead tax reduction and the current rate of earned income and net profits or personal income tax levied by the school district. The question shall be clear and in language that is readily understandable by a layperson and shall be framed in one of the following forms with the school district resolution enumerating the variable amounts represented by the terms X, Y and Z: (i) Do you favor imposing an additional X% (insert name of tax)? The revenue generated from the increased tax rate will be used to reduce taxes on qualified residential property by an estimated amount of $Y. The current (insert name of tax) rate for the school district is Z%.(ii) Do you favor imposing a personal income tax at X%? The revenue generated from the tax will be used to reduce taxes on qualified residential properties by (insert amount of reduction).(iii) Do you favor converting the school district's current earned income and net profits tax into a personal income tax at X%? The revenue generated from the personal income tax will be used to reduce taxes on qualified residential property by an estimated amount of (insert amount of reduction) and to replace the revenue from the current school district's earned income tax. The current earned income tax rate is Z%.(4) The election officials of each county shall, in consultation with the board of school directors, draft a nonlegal interpretative statement which shall accompany the referendum question in accordance with section 201.1 of the act of June 3, 1937 (P.L. 1333, No. 320), known as the Pennsylvania Election Code. The nonlegal interpretative statement shall inform the voters of: (i) the reason for the tax;(ii) the estimated increase in revenue which the board of school directors has included in the proposed tax rate as authorized under section 321(b)(4) or section 321(c)(6);(iii) the estimated per homestead tax reduction; and(iv) the current rate of earned income and net profits tax or, if applicable, personal income tax levied by the school district.(c)Proposed tax rate.--The proposed rate of the earned income and net profits tax or personal income tax shall be established by the board of school directors of the school district and shall not exceed the rate, when combined with the tax rate authorized under section 331.2, required to provide an exclusion for homestead property and farmstead property equal to the maximum exclusion under 53 Pa.C.S. § 8586 (relating to limitations).(d)Effective date.--If the referendum question under this section is approved, the new rate of the earned income and net profits tax or personal income tax shall take effect pursuant to section 321(d).(e)Majority approval.-- Approval of the referendum required under this subsection shall be by a majority of the electors voting on the question in the school district.(g)Effect on certain school districts.--This section shall not apply to a school district of the first class.(h)School districts operating under 53 Pa.C.S. Ch. 87.--(2.1) This subsection shall apply to a school district which is subject to 53 Pa.C.S. Ch. 87 (relating to other subjects of taxation).(3) A school district under this subsection shall convert its earned income and net profits tax authorized under 53 Pa.C.S. § 8703 (relating to adoption of referendum) to an earned income and net profits tax authorized under this subsection at the same rate as the tax was levied under 53 Pa.C.S. § 8703 on the date of conversion. The tax authorized under this subsection shall be subject to the provisions of sections 323, 324, 325 and 326.(4) A school district under this subsection shall combine all revenue generated for funding homestead and farmstead exclusions under 53 Pa.C.S. § 8703 with any revenue collected for the purposes of funding homestead and farmstead exclusions under this chapter.(i)Pennsylvania Election Code provisions.--Proceedings under this section shall be in accordance with the provisions of the Pennsylvania Election Code. 2006, June 27, P.L. 1873, No. 1(Spec. Sess. No. 1), § 332, imd. effective. Amended 2020, Feb. 12, P.L. 8, No. 5, § 2, effective in 60 days [April 13, 2020].