2010 Pennsylvania Code
Title 53 - MUNICIPALITIES GENERALLY
Chapter 87 - Other Subjects of Taxation
8717 - Disposition of earned income and net profits tax revenue.

     § 8717.  Disposition of earned income and net profits tax
                revenue.
        The disposition of revenue from an earned income and net
     profits tax or an increase in the rate of an earned income and
     net profits tax imposed by school districts under the authority
     of this chapter shall occur in the following manner:
            (1)  For the fiscal year of implementation of a newly
        imposed income tax, all earned income and net profits tax
        revenue received by a school district shall be used first to
        offset any lost revenue to the school district from the taxes
        prohibited under section 8701(b) (relating to general tax
        authorization) in an amount equal to the revenue collected
        from the prohibited taxes in section 8701(b) in the preceding
        fiscal year; second, to provide for an increase in budgeted
        revenues over the preceding fiscal year in accordance with
        the amount specified in the referendum question approved by
        the voters under section 8703 (relating to adoption of
        referendum); and third, to reduce the school district real
        property tax in the following order:
                (i)  By means of an exclusion for homestead property
            pursuant to section 8583 (relating to exclusion for
            homestead property).
                (ii)  By means of a reduction in the millage rate
            after the limit on the exclusion for homestead property
            has been reached under section 8586 (relating to
            limitations).
            (2)  For the fiscal year of implementation of an increase
        in the rate of the existing earned income and net profits tax
        imposed under this chapter, all revenue received by a school
        district directly attributable to the increased rate shall be
        used to reduce the school district real property tax in the
        following order:
                (i)  By means of an exclusion for homestead property
            pursuant to section 8583.
                (ii)  By means of a reduction in the millage rate
            after the limit on the exclusion for homestead property
            has been reached under section 8586.

        Cross References.  Section 8717 is referred to in section
     8713 of this title.