Act 32 of 2008 became law when Governor Ed Rendell signed Senate Bill 1063 on July 2, 2008.  This act consolidates local earned income tax offices into countywide collection bureaus.  There are two exceptions to the countywide mandate.  The first is Philadelphia which will continue to collect local taxes under the Sterling Act.  The second is Allegheny County which will be divided into four collection districts rather than one countywide bureau.

Act 32 requires that each of the political subdivisions  (PSD) in a tax collection district appoint one delegate and one alternate to be a representative on the tax collection committee (TCC) for that district.  Among other things the TCC will be responsible to appointing the new Tax Officer for the district as well as adopting by-laws, and establishing the manner and extent of financing for the new tax bureau.

All employers will be required to withhold the earned income tax for both resident and non-resident employees beginning January 1, 2012.   The employer will remit all taxes withheld to "the tax officer for either the tax collection district in which the employer's payroll operations are located or as determined by the department".

Taxes received prior to April 1, 2013 shall be distributed within 60 days of the date of receipt or deadline for payment.  Taxes received after April 1, 2013 shall be distributed within 30 days. 

Current tax collectors (Article XIII Tax Officers)  are required to deliver all tax records to the new Tax Officer by June 30, 2012. 

PEITOAC will make every effort to keep you up to date as more information becomes available.