(a) Continuation of levy.--Notwithstanding section 123(d) of the act of July 10, 1987 (P.L. 246, No. 47),¹ known as the Municipalities Financial Recovery Act, or any other provision of law to the contrary, a city of the third class in a county of the third class with a population of at least 48,000 and not more than 52,000 based on the most recent Federal decennial census as of the effective date of this section may continue to levy the local services tax at a rate of $156 for 10 years after the effective date of this section.

(b) Ten-year expiration.--After the expiration of the permitted 10-year time period in subsection (a), a city of the third class subject to this section may levy a local services tax at a rate not to exceed $104 for a time period not to exceed five years.

(c) Five-year expiration.--After the expiration of the five-year time period in subsection (b), a city of the third class subject to this section shall adjust the local services tax to the rate authorized by the act of December 31, 1965 (P.L. 1257, No. 511),² known as The Local Tax Enabling Act.

(d) Limitation and prohibition.--A city of the third class subject to this section may continue to levy an earned income tax on residents which does not exceed 2%, but shall not levy a tax or fee on the earned income of nonresidents.

(e) Determination.--A city of the third class subject to this section is eligible for a determination to terminate distressed status in the manner provided under section 255.1 of the Municipalities Financial Recovery Act.³