8 Pa.C.S. Ch. 13

in effect

8 Pa.C.S. § 1301 Fiscal year.

The fiscal year of every borough shall coincide with the calendar year, beginning January 1 and ending December 31.

(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. For any calendar year, the council may waive the appropriation limitation under this subparagraph by resolution. (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) (i) 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). (ii) The borough may appropriate up to one-half of the revenue generated from a tax under subparagraph (i) for the purpose of paying salaries, benefits or other compensation of employees of the ambulance, rescue or other emergency service. For any calendar year, the council may waive the appropriation limitation under this subparagraph by resolution. (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; Oct. 31, 2024, P.L.1153, No.141, eff. 60 days) 2024 Amendment. Act 141 amended subsec. (a)(6) and (9). 2024 Partial Repeal. Section 21(20) of Act 54 provided that subsecs. (a)(6)(i) and (ii) and (9) and (e) are repealed insofar as they are inconsistent with the addition of sections 8031(a) and 8032(a) of the act of April 9, 1929, P.L.343, No.176, known as The Fiscal Code. 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.

8 Pa.C.S. § 1302.1 Different and separate tax levies.

(a) General rule.--A borough may in any year levy separate and different rates of taxation for municipal purposes on all real estate classified as nonfarmland, exclusive of the buildings on the real estate, and on all real estate classified as either buildings on land or farmland. When real estate tax rates are so levied: (1) The rates shall be determined by the requirements of the borough budget. (2) A higher rate may be levied on real estate classified as nonfarmland than on real estate classified as either buildings on land or farmland if the respective rates on nonfarmland and on buildings or farmland are so fixed as not to constitute a greater levy in the aggregate than the levy to result from the maximum rate allowed by law on all real estate. (3) The rates shall be uniform as to all real estate within the classification. (b) Nonseverability.--Notwithstanding section 104 (relating to constitutional construction), the provisions of this section are nonseverable. If any provision of this section or its application to any person or circumstance is held invalid, the remaining provisions or applications of this section are void. (c) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Farmland." Any tract of land that is actively devoted to agricultural use, including, but not limited to, the commercial production of crops, livestock and livestock products as defined in section 3 of the act of June 30, 1981 (P.L.128, No.43), known as the Agricultural Area Security Law. "Nonfarmland." Any tract of land that is not farmland. Cross References. Section 1302.1 is referred to in section 1303 of this title.

8 Pa.C.S. § 1303 Special levy to pay debts.

In addition to the levies provided for in section 1302.1 (relating to different and separate tax levies), if the council refuses or neglects to levy a sufficient tax to pay the debts due by the borough, a court may, after ascertaining the amount of the indebtedness of the borough, direct a writ of mandamus to the proper officers of the borough to collect by special taxation an amount sufficient to pay the indebtedness in one or more annual installments, as determined reasonable by the court.

8 Pa.C.S. § 1304 Special road fund tax.

(a) Authority.--Any borough shall be empowered, within its general power to levy taxes, to collect annually a tax upon all real property taxable for borough purposes, not to exceed five mills on the dollar in any one year, for the purpose of creating and maintaining a special fund to be used by its borough in making permanent street improvements and to pay contract prices for paving and other permanent street improvements, prior to the collection of the cost and expense from the property owners adjoining or abutting the property by the borough under existing laws. (b) Application.--If the cost and expense or any part of the cost and expense of the construction of any permanent street improvement, which has been made under existing laws and which has been aided in its construction from the special fund provided for under this section, has been assessed and collected from the owners of the real property adjoining or abutting upon the improvement, it shall be applied to the credit of the special fund, to the extent of the withdrawal from the special fund for that purpose.

8 Pa.C.S. § 1305 Date tax duplicate to issue.

Council shall, within 30 days after adoption of the budget or within 30 days after receipt of the assessment roll from the county, whichever is later, issue their duplicate of taxes assessed to the collector of taxes of the borough.

8 Pa.C.S. § 1306 Additions and revisions to duplicates.

(a) Inspection and reassessment.--If in any borough there is any construction of a building or buildings not otherwise exempt as a dwelling after the council has prepared a duplicate of the assessment of borough taxes and the building is not included in the tax duplicate of the borough, the county assessment office shall, upon the request of the council, direct the assessor in the county assessment office to inspect and reassess, subject to the right of appeal and adjustment provided by statute, all taxable property in the borough to which major improvements have been made after the original duplicates were prepared and to give notice of the reassessments within ten days to the authority responsible for assessments, the borough and the property owner. The real property shall then be added to the duplicate and shall be taxable for borough purposes at the reassessed valuation for that proportionate part of the fiscal year of the borough remaining after the real property was improved. Any improvement made during the month shall be computed as having been made on the first of the month. (b) Copy of additions or revisions.--A certified copy of the additions or revisions to the duplicate shall be furnished by the council to the borough tax collector, together with their warrant for collection of the taxes, and, within ten days, the borough tax collector shall notify the owner of the real property of the taxes due to the borough.

8 Pa.C.S. § 1307 Preparation of budget.

Prior to the adoption of the budget, a proposed budget or annual estimate of revenues and expenditures for the ensuing year shall be prepared in a manner designated by the council. The proposed budget shall be kept on file with the borough secretary and be made available for public inspection by the borough secretary for a period of ten days. (Oct. 16, 2024, P.L.1018, No.110, eff. 60 days)

8 Pa.C.S. § 1308 Notice of proposed budget and penalty.

(a) Notice.--Notice that the proposed budget is available for inspection shall be published by the borough secretary in a newspaper of general circulation, except in boroughs in which the estimated budget receipts are less than $50,000 in 2012, where, in lieu of the newspaper publications, notice may be conspicuously posted during the ten-day period in a place readily viewable by the public at the office of the borough secretary and with further notice as shall be prescribed by council. (b) Failure.--Any borough secretary who fails or refuses to give the notice that the proposed budget is available for inspection, as required, shall, upon conviction in a summary proceeding, be sentenced to pay a fine not exceeding $100 and costs of prosecution.

8 Pa.C.S. § 1309 Revision and completion of budget.

After the expiration of the ten days, council shall make the revision in the budget as deemed advisable. The budget must be as comprehensive and exact as the information available will permit. In addition to expenditures proposed for the current fiscal year, council may include as proposed expenditures a sum sufficient to pay any existing indebtedness and to pay the ordinary operating expenses for the subsequent year until the taxes of the subsequent year are received and may also include a sum to provide, in whole or in part, for any deferred maintenance, depreciation and replacements. Within the tax levy and debt limitations, council may also include, in whole or in part, expenditures for capital investments and purchases. Expenditures of a legislative character must be made, authorized or ratified by ordinance. Other expenditures allowed by law may be made or ratified by motion in council. The expenditures, whether by ordinance or motion, must then be considered as appropriations affecting the budget. A balance of revenues over expenditures may be expended in a subsequent year for a lawful purpose.

8 Pa.C.S. § 1310 Adoption of budget.

Upon completion of the budget containing the estimated receipts and expenditures, the council shall adopt the budget by motion of the council, which may not be later than December 31.

8 Pa.C.S. § 1310.1 Tax ordinance or resolution.

After council has adopted the budget, it is the duty of the council to adopt a resolution levying the taxes referred to in this part for the fiscal year for taxes levied at the same rate as or a rate lower than the previous fiscal year, and to enact an ordinance if the tax rate increases from the previous fiscal year, subject to approval of the mayor or enactment over the mayor's veto under the procedure established in section 3301.3(c) (relating to enactment, approval and veto). (July 2, 2019, P.L.351, No.51, eff. 60 days) Cross References. Section 1310.1 is referred to in section 3301.3 of this title.

8 Pa.C.S. § 1311 Amending budget and notice.

During the month of January next following a municipal election, the council of a borough may amend the budget and the levy and tax rate to conform with its amended budget. A period of ten days' public inspection at the office of the borough secretary of the proposed amended budget, after notice by the borough secretary to that effect is published once in a newspaper of general circulation, must intervene between the proposed amended budget and its adoption. An amended budget must be adopted by council on or before the 15th day of February.

8 Pa.C.S. § 1312 Modification of budget and supplemental appropriations and transfers.

The council in its reasonable discretion may, in any year, by motion, modify the budget after its final adoption. New appropriations, supplementary appropriations and transfers from one appropriation to another may be made during the fiscal year, either before or after the expenditure is authorized or ratified after the expenditure is made, if it is within the current year's revenues, or the money is promptly made available through borrowing as allowed by law.

8 Pa.C.S. § 1313 Payment from borough funds.

The payments made by the council from the borough funds must be made by proper borough orders, drawn upon the treasurer. No borough order may be authorized by council or signed by the president or secretary of a council unless there are sufficient funds in the treasury of the borough to pay the order, and no orders may be made payable at any time in the future or draw interest. A separate borough order must be drawn for each account or payment.

8 Pa.C.S. § 1313.1 Creation of special funds and investments.

Council may set aside in a separate fund any money received out of or from the sale, lease or other disposition of any borough property or received from any source unless the money was received or acquired for a particular purpose. The fund must be controlled, invested and administered, and the income arising from the fund expended, in the manner as may be determined by action of the council under the ordinance creating the fund. The ordinance may provide that only the income from the fund may be used or expended and that neither principal nor any part of the principal may be used or expended unless upon authorization of a majority vote of the qualified electors of the borough. The ordinances previously enacted by a borough creating and establishing a separate fund as authorized by this section must be deemed and taken as valid and effectual for all purposes if the other requirements of law concerning the enactment of the separate fund have been complied with.

8 Pa.C.S. § 1314 Uniform financial report and forms.

(a) Preparation of uniform forms.--The uniform forms for the annual financial statement required to be made by the auditors or the controller must be prepared by a committee consisting of four representatives from the Pennsylvania State Association of Boroughs, the Secretary of Community and Economic Development, or the secretary's designee, and any additional members appointed under statute. (b) Appointment of representatives.--The representatives of boroughs must be appointed by the president of the Pennsylvania State Association of Boroughs. The representatives shall be chosen from among the finance officers or other officers of the borough who have knowledge of the borough's fiscal procedures. As far as possible, they must be chosen to represent boroughs in the various population groups. The president of the organization shall supply to the Department of Community and Economic Development the names and addresses of the representatives immediately upon their appointment. (c) Compensation of representatives.--The representatives shall serve without compensation but shall be reimbursed by the Commonwealth for the necessary expenses incurred in attending meetings of the committee. (d) Meetings.--The committee shall meet, from time to time, as conditions may warrant at the call of the Secretary of Community and Economic Development, or the secretary's designee, who shall serve as chair of the committee. (e) Duty of secretary and cooperation.--It shall be the duty of the Secretary of Community and Economic Development, or the secretary's designee, to ensure that the forms required by this chapter are prepared in cooperation with the committee. In the event that the committee should for any reason fail to furnish the cooperation, the Secretary of Community and Economic Development, or the secretary's designee, shall prepare the forms. After their preparation, the secretary shall issue the forms and distribute them annually, as needed, to the proper officers of each borough.

8 Pa.C.S. § 1315 Capital improvements to certain public service facilities.

(a) Authority.--For the purpose of financing the cost and expense or its share of the cost and expense of capital improvements, including the purchase and installation of machinery and equipment, by altering, improving or enlarging any of the following, a borough owning the plant or facility may issue nondebt revenue bonds as provided in section 1202(46) (relating to specific powers): (1) its sewer, sewer system or sewage treatment works, either singly or jointly with other municipalities; (2) its water works, either singly or jointly with other municipalities; (3) its electric power plant or power distribution system; or (4) its gas plant, gas distribution system for its own municipal purposes, municipal gas distribution system or municipal gas works. (b) Rates.--A borough issuing nondebt revenue bonds under the authority of this section shall adjust and, when necessary, increase the rates of rentals or charges pledged as security for the bonds in order to provide sufficient revenue. The revenue must be set aside as reserve funds to cover depreciation of the properties involved and for future improvements to the plant or facility involved as well as for the payment of the interest on the bonds and the principal at the time of maturity. Special Provisions in Appendix. See section 4(3)(xii) of Act 37 of 2014 in the appendix to this title for special provisions relating to continuation of prior law.

8 Pa.C.S. § 1316 Investment of funds.

(a) Duty of council.--Council shall invest borough funds consistent with sound business practice. (b) Investment program.--Council shall provide for an investment program subject to restrictions contained in this part and in another applicable statute and any rules and regulations adopted by council. (c) Authorized types of investments.--Authorized types of investments for borough funds are: (1) United States Treasury bills. (2) Short-term obligations of the United States Government or its agencies or instrumentalities. (3) Deposits in savings accounts or time deposits, other than certificates of deposit, or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured, and, for the amounts above the insured maximum, if approved collateral as provided by law shall be pledged by the depository. (4) Obligations of: (i) the United States or its agencies or instrumentalities backed by the full faith and credit of the United States; (ii) the Commonwealth or its agencies or instrumentalities backed by the full faith and credit of the Commonwealth; or (iii) a political subdivision of the Commonwealth or its agencies or instrumentalities backed by the full faith and credit of the political subdivision. (5) Shares of an investment company registered under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), whose shares are registered under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.), if the only investments of the company are in the authorized investments for borough funds listed in paragraphs (1), (2), (3) and (4). (6) Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are so insured. For amounts above the insured maximum, the certificates of deposit must be collateralized by a pledge or assignment of assets of the institution, and the collateral may include loans, including interest in pools of loans, secured by first mortgage liens on real property. Certificates of deposit purchased from commercial banks must be limited to an amount equal to 20% of a bank's total capital and surplus. Certificates of deposit purchased from savings and loan associations or savings banks must be limited to an amount equal to 20% of an institution's assets minus liabilities. (7) An investment authorized by 20 Pa.C.S. Ch. 73 (relating to municipalities investments) must be an authorized investment for a pension or retirement fund. (8) Bonds of a municipal authority or parking authority created solely by the borough for the purpose of either investment or possible retirement of the bonds and acquisition of authority projects at an earlier date than originally contemplated, using for the purpose either surplus funds of the borough or money appropriated in the annual budget for the purpose. (9) An investment authorized by the act of July 25, 1973 (P.L.217, No.53), entitled "An act authorizing cities of the first class and second class to invest all funds received and deposited with the city treasurer in certain commercial paper under certain terms and conditions; and providing for investment of public corporation or municipal authority funds." (d) Authority of council.--In making investments of borough funds, council has authority to: (1) Permit assets pledged as collateral under subsection (c)(3), to be pooled in accordance with the act of August 6, 1971 (P.L.281, No.72), entitled "An act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets." (2) Combine money from more than one fund under borough control for the purchase of a single investment, if each of the funds combined for the purpose shall be accounted for separately in all respects and the earnings from the investment are separately and individually computed and recorded and credited to the accounts from which the investment was purchased. (3) Join with one or more other political subdivisions and municipal authorities in accordance with 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) in the purchase of a single investment, provided the requirements of paragraph (2) are adhered to regarding separate accounting of individual funds and separate computation, recording and crediting of the earnings from the funds. (Mar. 28, 2024, P.L.2, No.2, eff. 60 days) 2024 Amendment. Act 2 added subsec. (c)(9). Cross References. Section 1316 is referred to in sections 1202, 24A04 of this title.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=08Fetched: 10/16/2026