Gov. Wolf signs double taxation bill into law after vetoing similar bill 18 months before

Gov. Tom Wolf signed legislation (H.B. 866) last week prohibiting local school districts and municipalities from imposing double taxation following his veto of identical legislation (H.B. 245) in November 2016.

It was reported that the original bill was vetoed due to misinformation given to the governor.

“What a difference 18 months make,” Rep. George Dunbar (R-Westmoreland), sponsor of both H.B. 866 and H.B. 245, said. “On both occasions, this legislation was sent to the governor with several agreed-to-revisions from his own Department of Community and Economic Development, along with strong bipartisan support from the House and Senate. However, this time with House Bill 866, we made sure the governor was given truthful and accurate information to guarantee he was fully on board with protecting the constitutional right of all Pennsylvania taxpayers to be taxed uniformly. I’d like to thank the governor for his reconsideration and ultimate support of this legislation.”

The newly signed H.B. 866 makes specific technical changes to the Local Tax Enabling Act (Act 32 of 2008). Those changes include developing clear and concise safe harbor language for estimated taxes, providing oversight for the local Tax Collection Committee, creating W-2 reporting requirements as well as standardized forms by 2020, and auditing taxes received and disbursed on a calendar-year basis only.

“In various instances across the state, school districts and municipalities have levied taxes on income that has already been taxed—which obviously results in unfair double taxation,” Dunbar said. “This new law is clearly needed to reset the local tax collection process in favor of hard-working taxpayers and job creators.”