Section 9943-C - Local earned income and net profits taxes; business privilege taxes(a) General exemption.-- To the extent that a qualified political subdivision has enacted any tax on the privilege of engaging in any business or profession, measured by gross receipts or on a flat rate basis, earned income or net profits, as defined in the act of December 31, 1965 (P.L. 1257, No. 511), known as The Local Tax Enabling Act, imposed within the boundaries of a strategic development area, such qualified political subdivision shall be exempt from the imposition or operation of such local tax ordinances, statutes, regulations or otherwise:(1) The business gross receipts for operations conducted by a qualified business within a strategic development area.(2) The earned income received by a resident of a strategic development area.(3) The net profits of a qualified business received by a resident or nonresident of a strategic development area attributable to business activity conducted within a strategic development area.(b) Additional exemptions.--To the extent that a qualified political subdivision has:(1) pursuant to the act of August 5, 1932, (Sp.Sess. P.L.45, No. 45), referred to as the Sterling Act, the act of March 10, 1949 (P.L. 30, No. 14), known as the Public School Code of 1949, the act of August 24, 1961 (P.L. 1135, No. 508), referred to as the First Class A School District Earned Income Tax Act, the act of August 9, 1963 (P.L. 640, No. 338), entitled "An act empowering cities of the first class, coterminous with school districts of the first class, to authorize the boards of public education of such school districts to impose certain additional taxes for school district purposes, and providing for the levy, assessment and collection of such taxes," theact of May 30, 1984 (P.L. 345, No. 69) , known as the First Class City Business Tax Reform Act, or theact of June 5, 1991 (P.L. 9, No. 6) , known as the Pennsylvania Intergovernmental Cooperation Authority Act for Cities of the First Class, enacted a tax on: (i) the privilege of engaging in a profession or business;(ii) wages or compensation;(iii) net profits from the operation of a business, profession or other activity; or(iv) the occupancy or use of real property.(2) The qualified political subdivision shall provide an exemption, deduction, abatement or credit from the imposition and operation of such local tax ordinance or resolution to all of the following: (i) A person or qualified business, whether a resident or a nonresident of a strategic development area, for the privilege of engaging in a business or profession within a strategic development area.(ii) Salaries, wages, commissions, compensation or other income received for services rendered or work performed by a resident of a strategic development area.(iii) The gross or net income or gross or net profits realized from the operation of a qualified business to the extent attributable to business activity conducted within a strategic development area.(iv) The occupancy or use of real property located within the strategic development area.(c) Limitation on withholding.-- Every employer required to withhold any local tax on the earned income, wages or compensation of one or more persons within the particular political subdivision shall not withhold such tax on earned income, wages or compensation paid to any person or his personal representative during any period when the qualified political subdivision has by ordinance or resolution provided for the exemption from tax as provided in section 2941-C and the person is a resident of a strategic development area.(d) Information for employer.--Every person who is an employee that qualifies as a resident of a strategic development area shall furnish to his or her employer information, as prescribed by the political subdivision, necessary for the employer to withhold the correct amount of tax. An employee shall furnish notification to his or her employer of any changes to the information within 20 days after the change. An employee shall notify his or her employer that the employee has completed the residency requirements under this article.(e) Duty of employer.--Within 20 days after an employer receives information from an employee pursuant to subsection (d), the employer shall forward a copy of that information to the political subdivision or other agency designated by the political subdivision. The information shall not be given retroactive effect for withholding purposes. The employer shall not be required to withhold tax from the wages, earned income or compensation paid to a resident of a strategic development area, if reasonable under the circumstances, unless directed by the political subdivision to withhold tax from the wages, earned income or compensation on some other basis. If an employee fails or refuses to furnish the information or furnishes information that the employer reasonably and in good faith believes to be inaccurate, the employer shall withhold the full rate of tax from the employee's total wages, earned income or compensation.(f) Calculation for education subsidy for school district.--In determining the personal income valuation of a school district, the Secretary of Revenue shall exclude any increase in the valuation as defined in section 2501 (9.1) of the Public School Code of 1949 above the base value prior to the abatement of local taxes in a strategic development area located within the school district to the extent and during the period of time that personal income revenues attributable to the increase in the personal income valuation are not available to the school district for general school district purposes.1971, March 4, P.L. 6, No. 2, art. XXIX-C, § 2943-C, added 2006, Nov. 20, P.L. 1385, No. 151, § 2, imd. effective.