House Sends Benninghoff’s Pro-Jobs Measure to Governor’s Desk to be Signed Into Law
10/19/2012

House Sends Benninghoff’s Pro-Jobs Measure to Governor’s Desk to be Signed Into Law

The House this week approved and sent to the governor’s desk to be signed into law a bill introduced by Rep. Kerry Benninghoff (R-Centre/Mifflin) to promote job creation in Pennsylvania and bring in revenues for the Commonwealth and local governments without increasing taxes.  House Bill 2626, known as PEP!, or Promoting Employment across Pennsylvania, would provide a state tax incentive for a limited time to employers that create hundreds of new good-paying jobs with health care benefits in the Commonwealth.  Under the bill, qualifying employers would be able to retain and reinvest in their organizations’ 95 percent of the state Personal Income Tax (PIT) revenue they withhold on behalf of their employees.  The other 5 percent would go to the Commonwealth.  The money retained by employers would be used solely to create good-paying, family-sustaining jobs.  Companies that qualify for PEP! would still pay applicable state Corporate Net Income Tax, Capital Stock and Franchise Tax and sales tax in addition to local taxes, including personal income taxes and property taxes.  Existing Pennsylvania companies that create new jobs would continue to pay all relevant taxes for their current employees.  The PIT incentive would only apply to newly created jobs.

 

Marcellus Shale Impact Fee Revenue

Headed to Pennsylvania Counties, Municipalities

 

Gov. Tom Corbett and lawmakers this week announced the revenue distribution from natural gas extraction in the Marcellus and Utica shales, collected as a result of the fees established in Act 13 of 2012.  A total of $197 million in impact fee revenue was collected from 58 drilling companies operating in Pennsylvania, exceeding original estimates for collection in the first year by $20 million.  Total collections for the year are expected to reach $205 million.  Under the impact fee distribution formula, 60 percent of money collected will go to Pennsylvania counties and municipalities impacted by drilling, and 40 percent will go back to the Commonwealth.  Counties and municipalities have the option to use funds to address a variety of drilling impacts, including preservation and reclamation of water supplies; improvements to local roads and bridges; and construction and repair of water and sewer systems.  The Commonwealth’s share will be used for emergency response planning, training and other activities; water, storm water, and sewer system construction and repair; infrastructure maintenance and repair; and statewide environmental initiatives.  The state has certified the impact fee revenue numbers early and will be sending checks to local governments and counties within the next week.  The original deadline for receipt of payments was Dec. 1.  For additional information on the impact fee revenue to be distributed to Centre and Mifflin counties, visit www.KerryBenninghoff.com.  

 

House Votes in Support of Additional Changes

to Small Games of Chance Act

Following the enactment of Act 2 of 2012, the House approved legislation that would institute further changes to Pennsylvania’s Small Games of Chance Act.  Senate Bill 444 would permit new games of chance and enhance rules and regulations for organizations that participate in small games activities.  The legislation defines a 50/50 drawing as a small game of chance now permissible under the law.   In addition, the bill would permit an eligible organization to use proceeds from games of chance for license fees and background check fees; exempt eligible organizations whose proceeds are less than $2,500 in a calendar year from submitting annual reports or obtaining background checks; and would allow an eligible organization that is unable to conduct games at the location listed on the application and license to use another eligible organization’s premises for the small games.  The bill now heads to the governor’s desk.

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