Section 6926.331.2 - 2007 referendum(a)General rule.--A board of school directors shall submit at the primary election of 2007 a referendum question to the electors of the school district seeking voter approval allowing the school district to levy, assess and collect an earned income and net profits tax authorized under section 321(b)(1) or a personal income tax authorized under section 321(c) for the purpose of annually funding homestead and farmstead exclusions. A board of school directors may not submit a referendum question regarding a personal income tax until the Department of Revenue receives final approval of regulations governing the collection of a personal income tax.(b)Adoption of resolution.--No later than March 13, 2007, a school district subject to this section shall adopt a resolution authorizing the referendum question required under subsection (a). The board of school directors shall give public notice of its intent to adopt the resolution in the manner provided for in section 306 of the Local Tax Enabling Act and must conduct at least one public hearing on the resolution.(c)Proposed tax rate.--The board of school directors shall establish the rate of the proposed income tax in the resolution required under subsection (b). The rate shall not exceed the rate required to provide an exclusion for homestead property and farmstead property equal to the maximum exclusion under 53 Pa.C.S. § 8586 (relating to limitations) and shall not be less than the rate required to provide an exclusion for homestead and farmstead property equal to 50% of the maximum homestead exclusion, provided that a school district shall not be required to propose an earned income and net profits tax under this section that is greater than 1% or a personal income tax that is greater than the equivalent of an earned income and net profits tax of 1%.(d)Submittal of referendum to county officials.--A board of school directors subject to this section shall submit the referendum question required under subsection (a) to the election officials of each county in which the school district is situate no later than 60 days prior to the primary election of 2007. The election officials shall cause the referendum question to be submitted to the electors of the school district at the primary election of 2007.(e)Referendum question.--(1) The referendum question submitted to the electors of the school district at the primary election of 2007 shall state the rate of the proposed income tax to be levied, the reason for the tax, the estimated per homestead tax reduction and the current rate of earned income and net profits tax levied by the school district. The question shall be clear and in language that is readily understandable by a layperson and shall be framed in one of the following forms:(i) Do you favor imposing an additional X% earned income tax? The revenue generated from the increased tax rate will be used to reduce taxes on qualified residential properties by (insert amount of reduction). The current earned income tax rate is Z%.(ii) Do you favor imposing a personal income tax at X%? The revenue generated from the tax will be used to reduce taxes on qualified residential properties by (insert amount of reduction).(iii) Do you favor converting the school district's current earned income tax to a personal income tax at X%? The revenue generated from the personal income tax will be used to reduce taxes on qualified residential property by (insert amount of reduction) and to replace the revenue from the school district's current earned income tax. The current earned income tax rate is Z%.(2) The election officials of each county shall, in consultation with the board of school directors, draft a nonlegal interpretative statement which shall accompany the referendum question in accordance with section 201.1 of the act of June 3, 1937 (P.L. 1333, No. 320), known as the Pennsylvania Election Code. The nonlegal interpretative statement shall inform the voters of:(i) the reason for the tax;(ii) the estimated increase in revenue that the board of school directors has included in the proposed tax rate as authorized under section 321(b)(4) or (c)(6);(iii) the estimated per homestead tax reduction;(iv) the current rate of earned income and net profits tax levied by the school district; and(v) the proposed tax rate.(3) The election officials of a county shall certify the results of the referendum required under this section to the Department of State in accordance with Article XIV of the Pennsylvania Election Code and shall notify the school district of the certified results as soon as is practicable.(4) Approval of the referendum required under this subsection shall be by a majority of the electors voting on the question in the school district.(5) Where the referendum question under this subsection is approved, the new tax rate shall take effect pursuant to section 321(d).(6) A school district that is subject to 53 Pa.C.S. Ch. 87 (relating to other subjects of taxation) shall comply with the provisions of this chapter and the following:(i) The school district shall convert its earned income and net profits tax authorized under 53 Pa.C.S. § 8703 (relating to adoption of referendum) to an earned income and net profits tax authorized under this chapter at the same rate as the tax levied under 53 Pa.C.S. § 8703 on the date of conversion. The tax authorized under this subsection shall be subject to the provisions of this subsection and sections 323, 324, 325 and 326.(ii) The school district shall combine all revenue generated for funding homestead and farmstead exclusions under 53 Pa.C.S. § 8703 with any revenue collected for the purposes of funding homestead and farmstead exclusions under this chapter.(iii) When calculating the proposed rate of the income tax pursuant to subsection (c), the school district shall include any revenue collected for the purposes of homestead and farmstead exclusions.(iv) The school district shall no longer implement any provision of 53 Pa.C.S. Ch. 87.(f)Election proceedings.--Proceedings under this section shall be in accordance with the provisions of the Pennsylvania Election Code.(g)Nonapplicability to certain school districts.--This section shall not apply to a school district of the first class, a school district of the first class A or a school district coterminous with a city of the second class A. 2006, June 27, P.L. 1873, No. 1(Spec. Sess. No. 1), § 331.2, imd. effective. Amended 2020, Feb. 12, P.L. 8, No. 5, § 2, effective in 60 days [April 13, 2020].