An Act amending the act of August 5, 1932 (Sp.Sess., P.L.45, No.45), referred to as the Sterling Act, providing for remittance by a city of the first class to a nonresident's resident municipality and school district.

HB 2166 requires cities of the first class in Pennsylvania (like Philadelphia) that collect a nonresident wage tax to remit an amount equal to the tax their home municipality would have collected on that income. This directly affects nonresident workers who live in one municipality but work in a city of the first class, ensuring their home municipality and school district receive the tax revenue they would have earned. The key mechanism mandates a direct transfer of funds to the nonresident's resident municipality and school district, calculated based on the tax the home municipality would impose on earned income and net profits. The bill takes effect 60 days after enactment.