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PA HB1582

Bill

Status

Introduced

6/10/2025

Primary Sponsor

Joe Kerwin

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Eliminates the authority of local taxing jurisdictions (cities, boroughs, townships, school districts) to levy taxes on the privilege of doing business based on gross receipts

  • Prohibits political subdivisions from levying, assessing, or collecting mercantile or business privilege taxes on gross receipts after December 31, 2025

  • Removes existing rate limitations on wholesale dealer taxes (1 mill), retail dealer taxes (1.5 mills), and restaurant proprietor taxes, as well as the higher caps for second class cities (1 mill wholesale, 2 mills retail)

  • Deletes provisions requiring Pittsburgh (second class city) to phase out its business privilege tax in connection with its payroll expense tax, which had set reduction milestones tied to $50.5 million revenue thresholds

  • Takes effect in two stages: the expiration provision takes effect immediately upon enactment, while remaining amendments take effect December 31, 2026

Legislative Description

In local taxes, further providing for delegation of taxing powers and restrictions thereon, for payroll tax and for limitations on rates of specific taxes and providing for expiration of business gross receipts tax.

Last Action

Referred to Finance

6/10/2025

Committee Referrals

Finance6/10/2025

Full Bill Text

No bill text available