Amendment to Pennsylvania's Local Tax Collection Law

Overview

The General Assembly of the Commonwealth of Pennsylvania has enacted an amendment (House Bill No. 16) to the Local Tax Collection Law of May 25, 1945. The amendment became effective as of January 1, 2018 and applies to all local tax collectors. Collectors are to comply within 60 days of the effective date.

What Is Changing?

Tax Collection

Unless already in compliance, all tax collectors must keep tax money separate from their personal bank account. A new account is to be opened in the name of the elected office, title, or position, and is permitted to include the municipality name. Accounts are no longer permitted to be under the social security number of an individual or an individual’s name only. Within sixty days of the effective date of the amendment, tax collectors must transfer money into an account that complies with the criteria of the amendment unless the current account already complies.

Notice of Taxes

The amendment also requires the tax notice that is mailed to the taxpayer includes the name of the newly established account to whom the payment is to be made and cannot include simply the name of the individual collecting the taxes. The Department of Community and Economic Development can provide a uniform form of a tax notice.

Please note this summary is not meant to substitute for reading the amendment in its entirety.