WeVote
Log In

Bill

Bill

HB 1582

An Act amending the act of December 31, 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, 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.

2025-2026 Regular Session Introduced by Valerie Gaydos and 4 co-sponsors

HB 1582 restricts Pennsylvania municipal taxing powers by capping specific tax rates, modifying payroll tax provisions, and allowing the business gross receipts tax to expire.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 1582

Legislative bill overview

HB 1582 amends Pennsylvania's Local Tax Enabling Act to modify how municipalities can delegate taxing powers, adjust payroll tax provisions, and set caps on specific tax rates. The bill also includes provisions for the expiration of the business gross receipts tax, a local tax authority that currently allows municipalities to tax business revenue.

Why is this important

Local tax authority directly affects municipal budgets and business operating costs in Pennsylvania communities. Changes to tax delegation, rate limitations, and the sunset of specific taxes can significantly impact both municipal funding for services (schools, roads, public safety) and the tax burden on businesses operating in different jurisdictions.

Potential points of contention

  • Municipal fiscal impact: Limiting or expiring certain tax authorities could reduce revenue available to municipalities, potentially requiring service cuts or alternative funding mechanisms
  • Business competitiveness: Restrictions on payroll tax and gross receipts tax rates may benefit employers but could constrain local government capacity to fund operations
  • Tax uniformity: Modifying delegation of taxing powers could create inconsistent tax treatment across different Pennsylvania municipalities, affecting business planning and fairness

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.