Both Act 40 and amendments to the Fiscal Code in HB 674 (now Act 44 of 2017) make changes to the Judicial Computer System Augmentation fee that is levied on many document recordings in the county recorder of deeds office and remitted to the Department of Revenue. The surcharge, which was $35.50, increases to $40.25, including a 25 cent increase in the portion of the surcharge distributed to the Criminal Justice Enhancement Account; an increase of $2.50 to be distributed to the Office of the Attorney General for general government operations; and an increase of $2.00 to be distributed to the Access to Justice Account. The total surcharge will remain at $40.25 through Dec. 31, 2020.

On Oct. 30, Gov. Wolf signed HB 271 into law as Act 42 of 2017, which, among other provisions expanding gaming in Pennsylvania, authorizes new Category 4 casino licenses ("mini-casinos") and allows video gaming terminals (VGTs) at truck stops throughout the state. Of note, counties that currently host a licensed casino may choose to adopt a resolution to prohibit the placement of VGTs in that county; any such resolution must be delivered to the state by Dec. 29, 2017. Any municipality may also adopt a resolution to prohibit the location of a mini-casino within its borders, which must be delivered to the Board by Dec. 31, 2017.

 

Additional information on submitting a resolution to the Board can be found at http://gamingcontrolboard.pa.gov/.

Based on unofficial election results as of the writing of this Bulletin, Pennsylvania voters have approved an amendment to the state constitution to change how local governments may implement the homestead exclusion. Previously, the constitution, as implemented by statute, allowed taxing districts, including counties, municipalities and school districts, to exclude from taxation up to one-half of the median assessed value of all homestead properties within its jurisdiction. Under the amendment, taxing districts will be permitted to provide an exclusion of up to 100 percent of the assessed value of each homestead property within its jurisdiction. The change could allow a taxing district to eliminate property taxes for qualified residential properties, provided an alternate revenue source is available to fund the exclusion - the constitution also prohibits increasing millage rates to pay for exclusions. Additional work will also be needed to update the state's statutes implementing the homestead exclusion.

On Oct. 26, President Trump directing Acting U.S. Secretary of Health and Human Services (HHS) to declare the opioid epidemic a public health emergency under the Public Health Service Act. The declaration follows a recommendation made by the President's Commission on Combating Drug Addiction and the Opioid Crisis, and enables the HHS Secretary to waive certain administrative regulations around treatment resources. In addition, the declaration allows states greater abilities to use federal dollars to combat a public health crisis, although no new federal funds have been committed.

 

For instance, the declaration is expected to allow patients to obtain medically assisted treatment via telemedicine and provide state and federal agencies more flexibility in hiring substance abuse specialists. It will also ensure wider access to the anti-overdose drug naloxone and improve monitoring of opioid prescriptions to prevent abuse.

 

Prevention of substance abuse and drug overdose continues to be a priority for Pennsylvania's counties, which have called for strong state, county and local partnerships to be reinforced with appropriate resources to effectively address the opioid epidemic.

The federal tax reform package has now been introduced in bill form (H.R. 1), with the House Ways and Means Committee beginning markup on Nov. 6. The plan includes elimination of the state and local tax (SALT) deductions for sales and income taxes, which have been part of the federal tax code since 1913 and allow taxpayers to deduct the amount they pay in state and local taxes from their federal tax burden. Eliminating the deduction effectively creates double taxation, with taxpayers paying federal taxes on income put toward state and local taxes. However, the House plan would still allow the deduction of property taxes, originally proposed for elimination, up to $10,000 per tax filer, and allows businesses and pass-through filers to deduct all state and local taxes.

 

Further, while the tax-exempt status of municipal bonds would be retained, the tax-exempt status of advance refunding bonds, or refinancing, would be eliminated. Interest on newly issued private activity bonds, which are often used for airports, solid waste facilities, or low-income housing, for example, would also be subject to taxation where it is currently exempt. In addition, the proposal would not delay or repeal the "Cadillac tax," a 40 percent excise tax on "high value" employer-sponsored health coverage. Congress had previously delayed implementation of this tax until 2020, and NACo continues to advocate for its full repeal.

 

A House committee vote was expected later in the week of Nov. 6, with a floor vote as soon as Nov. 15 or 16. The Senate Finance Committee is expected to release its bill as early as Nov. 9, with markup starting as early as Nov. 13. There are expected to be differences between the two bills, with early indications that the Senate version will completely eliminate the SALT deduction, including property taxes. This would put additional pressure on local taxes, likely forcing considerations from the budget and service perspective.

 

NACo has co-founded Americans Against Double Taxation, a coalition of state and local government organizations, service providers and others to preserve the SALT deduction. Advocacy resources and more details about the impact of the elimination of the deduction can be found at www.americansagainstdoubletaxation.org.

In response to the recent Equifax breach, Rep. Brian Ellis (R-Butler) introduced legislation in mid-October to amend the state's Breach of Personal Information Act. The legislation, HB 1846, would expand the definition of "personal information" for which entities, including local governments, would have to notify individuals affected by a breach, as well as tighten the time frames in which those notifications would have to occur and require a separate notification by state agencies to the state Attorney General, and by local governments to the district attorney,

 

During consideration by the House Commerce Committee on Oct. 16, the committee unanimously adopted two amendments, one to further expand the scope of personal information captured under the bill. The other amended the original 30 day notification period in the bill to 45 days (current law requires notification without unreasonable delay), and removed language requiring policies for storage of data, privacy protection and disposal of data. House Bill 1846 was reported by the committee as amended, and now goes to the full House for consideration.

CCAP policy committee members will meet Nov. 19 in conjunction with the CCAP Fall Conference, Nov. 19 to 21 at The Hotel Hershey, to develop their 2018 work plans and set legislative priorities for 2018. The Conference also includes a membership voting session on Tuesday, Nov. 21. The agenda includes votes on the Association's 2018 action plan and 2018 dues schedule. The voting information will be emailed to the membership in advance of the Conference.