Section 6926.334 - Disposition of income tax revenue and property tax reduction allocations(a)Earned income and net profits tax revenue.--All earned income and net profits tax revenue received by the school district pursuant to this chapter shall be used as follows: (3) Except as set forth in section 335(a) or section 321(b)(4), in the fiscal year that a tax under section 321(b)(1) or (2) is implemented or increased, all revenue received by a school district that is directly attributable to that tax shall be used to fund exclusions for homestead and farmstead property.(4) Except as set forth in section 335(a), in the second fiscal year and each fiscal year thereafter, an amount equivalent to the revenue directly attributable to the imposition of the tax in the first full fiscal year in which the tax is levied and collected shall be used to fund exclusions for homestead and farmstead property. All remaining revenue may be used for the operations of the school district.(b)Personal income tax revenue.--All personal income tax revenue received by the school district pursuant to this chapter shall be used as follows: (1) Except as set forth in section 321(c)(6) or 335(a), in the fiscal year that the tax under section 321(c) is implemented or increased, all revenue received by the school district pursuant to section 321(c)(2)(iii) shall be used to fund exclusions for homestead and farmstead property.(2) Except as set forth in section 335(a), in the second fiscal year and each fiscal year thereafter, an amount equivalent to the revenue directly attributable to the imposition of the tax in the first full fiscal year in which the tax is levied and collected shall be used to fund exclusions for homestead and farmstead property. All remaining revenue may be used for the operations of the school district.(c)Property tax reduction allocations.--(1) A school district that receives a property tax reduction allocation under section 505 shall use the property tax reduction allocation to fund exclusions for homestead and farmstead property or, where section 335(a)(2) applies, to reduce the property tax rate on all properties subject to the property tax in the school district.(2) Notwithstanding the provisions of paragraph (1), a school district coterminous with a city of the second class A may use up to 50% of the property tax reduction allocation received under section 505 to reduce the rate of the earned income and net profits tax levied by the school district pursuant to any other act. If a board of school directors elects to reduce the rate of earned income and net profits tax pursuant to this paragraph, it shall adopt a resolution reducing the rate of earned income and net profits tax no later than the last day of the fiscal year immediately preceding the fiscal year in which the new earned income and net profits tax rate shall take effect. The board shall give public notice of its intent to adopt the resolution in the manner provided by section 306 of the Local Tax Enabling Act and shall conduct at least one public hearing on the resolution. Any portion of the property tax reduction allocation not used to reduce the rate of the earned income and net profits tax shall be used as prescribed in paragraph (1). 2006, June 27, P.L. 1873, No. 1(Spec. Sess. No. 1), § 334, imd. effective. Amended 2020, Feb. 12, P.L. 8, No. 5, § 2, effective in 60 days [April 13, 2020].