Governor Edward Rendell has signed legislation authorizing the city of Philadelphia to levy an additional 1% sales and use tax, postponing the scheduled reduction in Pittsburgh parking tax, and authorizing an additional tax on Pittsburgh parking transactions. ( L. 2009, H1828, eff. as stated .)

Philadelphia sales tax. The bill authorizes the city of Philadelphia to impose an additional 1% tax on the retail sale or use of tangible personal property or services effective December 17, 2009. However, the tax may not be imposed on charges for hotel occupancy and may only be imposed for a 5-year period that expires on July 1, 2014. The 1% tax is in addition to the sales and use tax imposed under the Pennsylvania Intergovernmental Cooperation Authority Act. The additional tax will be administered and collected in the same manner as taxes imposed under the Pennsylvania Intergovernmental Cooperation Authority Act and the Tax Reform Code.

Pittsburgh parking tax. Effective September 18, 2009, the reduction of the Pittsburgh Parking tax to 35% from 37.5% that was scheduled to take effect on January 1, 2010 is postponed. The city is also authorized to impose an additional parking tax of up to 2.5%. The bill provides that 6.75% of the revenue generated from the 37.5% parking tax and 100% of the revenue generated from the additional parking tax must be used to pay the city's minimum municipal obligation under the Municipal Pension Fund Funding Standard and Recovery Act.