Section 1602-D.1. Financial recovery.
(a) Moderate and severe distress.--As of the date of the termination of distressed status under the provisions of the act of July 10, 1987 (P.L.246, No.47), known as the Municipalities Financial Recovery Act, a city of the second class A that is levying, or had been authorized to levy within the previous three fiscal years, a local services tax in excess of $52 in accordance with the Municipalities Financial Recovery Act, may, upon the termination of distressed status, levy, without court approval, the local services tax at a rate which does not exceed $156 per year, if a pension system of the municipality is in moderate distress or severe distress as defined by section 503(d) of the act of December 18, 1984 (P.L.1005, No.205), known as the Municipal Pension Plan Funding Standard and Recovery Act, and the amount in excess of $52 is used solely to defray the municipality's unfunded actuarial accrued pension liability. A local services tax in excess of $52 may not be levied in the same year that the income of nonresidents is subject to a tax above maximum rates as provided in section 607(f) of the Municipal Pension Plan Funding Standard and Recovery Act.
(b) Minimal distress.--A city of the second class A that previously terminated distressed status under the Municipalities Financial Recovery Act and is levying, or had been authorized to levy within the previous three fiscal years, a local services tax in excess of $52 in accordance with the Municipalities Financial Recovery Act or subsection (a), may levy, without court approval, the local services tax at a rate which does not exceed $156 per year, if a pension system of the municipality is in minimal distress as defined by section 503(d) of the Municipal Pension Plan Funding Standard and Recovery Act, and the amount in excess of $52 is used solely to defray the municipality's unfunded actuarial accrued pension liability. A local services tax in excess of $52 may not be levied in the same year that the income of nonresidents is subject to a tax above maximum rates as provided in section 607(f) of the Municipal Pension Plan Funding Standard and Recovery Act. In no event shall a municipality that has no pension system in distress levy under this subsection a local services tax in excess of $52 for more than three full calendar years after its pension systems are declared minimally distressed.
(1602-D.1 amended July 12, 2026, P.L.265, No.21)