Budget & Taxes

HB 1340 allocates funds collected from Pennsylvania's gaming activities (including state lotteries, fantasy contests, and video gaming) to four state agencies for the 2025-2026 fiscal year. Specifically, it directs money from the State Gaming Fund, Fantasy Contest Fund, and Video Gaming Fund to the Attorney General, Department of Revenue, Pennsylvania State Police, and Pennsylvania Gaming Control Board. The bill covers both new spending for the upcoming fiscal year and payments for bills incurred but unpaid as of June 30, 2025. This is a routine budget authorization, not a policy change, and it became law on June 27, 2025 (Act No. 9A of 2025).

SB 527 amends Pennsylvania's 1965 Local Tax Enabling Act to establish new rules for cities of the first class (like Philadelphia). It prohibits these cities from taxing salaries, wages, or commissions earned by nonresident workers who perform all duties outside city limits, and limits taxation to work done within the city. The bill requires the state to deduct city taxes from public employees' pay and remit them to the city, while also creating a reimbursement process for non-resident workers who overpay city taxes on income earned within the city. These changes directly affect cities, nonresident workers, and public employers in first-class cities.