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PA HB1582
Bill
Status
6/10/2025
Primary Sponsor
Joe Kerwin
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AI Summary
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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
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Prohibits political subdivisions from levying, assessing, or collecting mercantile or business privilege taxes on gross receipts after December 31, 2025
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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)
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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
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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