2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 8 - BOROUGHS AND INCORPORATED TOWNS › Chapter 13 - Taxation and Finance › Section 1302 - Tax levy

§ 1302. Tax levy.
(a) Authority.--
The council of the borough shall have power, by resolution for taxes levied at the same rate as or a rate lower than the previous fiscal year, and by ordinance if the tax rate increases from the previous fiscal year, to levy and collect annually a tax not exceeding 30 mills for general borough purposes, unless the council by majority action, upon due cause shown by resolution, petitions the court of common pleas, in which case the court may order a rate of not more than five mills additional to be levied and in addition any of the following taxes:
(1) An annual tax sufficient to pay interest and principal on any indebtedness incurred pursuant to 53 Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and borrowing) or any prior or subsequent act governing the incurrence of indebtedness of the borough.
(2) To provide for pensions, retirement or the purchase of annuity contracts for borough employees, not exceeding one-half mill.
(3) To defray the cost and expenses of caring for shade trees as provided in section 2720.1 (relating to maintenance by borough and tax levy) and the expense of publishing the notice referred to in section 2720.1, not exceeding one-tenth mill.
(4) For lighting and illuminating the streets, highways and other public places, not exceeding eight mills.
(5) For gas, water and electric, not exceeding eight mills, additional millage permitted only following a favorable referendum on the matter held in accordance with the election laws of this Commonwealth.
(6) For the purchase of fire engines, fire apparatus and fire hose for the use of the borough or for assisting any fire company in the borough in the purchase, renewal or repair of any of its fire engines, fire apparatus or fire hose, for the purposes of making appropriations to fire companies both within and without the borough and of contracting with adjacent municipalities or volunteer fire companies in adjacent municipalities for fire protection, for the training of fire personnel and payments to fire training schools and centers or for the purchase of land upon which to erect a firehouse, or for the erection and maintenance of a firehouse or fire training school and center, not exceeding three mills. The following shall apply:
(i) The borough may appropriate up to one-half, but not to exceed one mill, of the revenue generated from a tax under this paragraph for the purpose of paying salaries, benefits or other compensation of fire suppression employees of the borough or a fire company serving the borough.
(ii) If an annual tax for the purposes specified in this paragraph is proposed to be set at a level higher than three mills, the question shall be submitted to the voters of the borough, and the county board of elections shall frame the question in accordance with the election laws of this Commonwealth for submission to the voters of the borough.
(7) For building a firehouse, fire training school and center, lockup or municipal building, not exceeding two mills, additional millage permitted only following a favorable referendum on the matter held in accordance with the election laws of this Commonwealth.
(8) To establish and maintain a local library or to maintain or aid in the maintenance of a local library established by deed, gift or testamentary provision, for the use of the residents of the borough, in accordance with 24 Pa.C.S. Ch. 93 (relating to public library code).
(9) For the purpose of supporting ambulance, rescue and other emergency services serving the borough, not to exceed one-half mill, except as provided in subsection (e). The borough may appropriate up to one-half of the revenue generated from a tax under this paragraph for the purpose of paying salaries, benefits or other compensation of employees of the ambulance, rescue or other emergency service.
(10) An annual tax sufficient for the purpose of maintaining and operating recreation places or for paying the borough's share of a joint action with one or more political subdivisions, in accordance with section 2701 (relating to general powers).
(b) Amount.--
The taxes shall be levied on the dollar on the valuation assessed for county purposes, as now is or may be provided by law. All real property, offices, professions and persons made taxable by the laws of this Commonwealth for county rates and levies may, in the discretion of council, be taxed after the same manner for those purposes. An action on the part of the borough authorities fixing the tax rate for any year at a mill rate shall include a statement expressing the rate of taxation in dollars and cents on each $100 of assessed valuation of taxable property.
(c) Use of taxes for general purposes.--
Nothing contained in this section may prevent the application of money received from taxes levied for general purposes to the purposes of paying interest and sinking fund charges on indebtedness.
(d) Proceeds.--
The proceeds of all taxes for which additional millage is authorized under this section shall be kept in a separate fund and used only for the purposes provided under this section. The additional taxes authorized by referendum shall continue to be levied annually for the period provided under this section in the question submitted in the referendum and, if any taxes for which the question voted upon shall not have stated the duration of the tax, until the tax shall be abolished by vote of the electors in a subsequent referendum.
(e) Tax for ambulance and rescue squads.--
The tax for supporting ambulance and rescue squads serving the borough shall not exceed the rate specified in subsection (a)(9) except when the question is submitted to the voters of the borough in the form of a referendum which will appear on the ballot in accordance with the election laws of the Commonwealth, in which case the rate shall not exceed two mills. The county board of elections shall frame the question to be submitted to the voters of the borough in accordance with the election laws of this Commonwealth.
(July 2, 2019, P.L.351, No.51, eff. 60 days)
2019 Amendment.
Act 51 amended subsecs. (a) intro. par. and (b).
Special Provisions in Appendix.
See section 4(3)(xi) of Act 37 of 2014 in the appendix to this title for special provisions relating to continuation of prior law.
Cross References.
Section 1302 is referred to in sections 10A08, 2701, 3301.1 of this title.