PRINTER'S NO. 2861
No. 2094 Session of 1986
INTRODUCED BY COY, D. R. WRIGHT, PETRONE, NOYE, CAWLEY, POTT,
MORRIS, SAURMAN, JOHNSON, GEIST, ARTY, MERRY, DOMBROWSKI,
BELFANTI, TRELLO, ANGSTADT, HERMAN, BIRMELIN, McCALL, ACOSTA,
PUNT, YANDRISEVITS, PETRARCA, HERSHEY, FREIND, BATTISTO,
RUDY, KASUNIC, DeLUCA, MARKOSEK, LANGTRY, BUNT, RYAN,
B. SMITH, DORR, McCLATCHY AND GLADECK, FEBRUARY 5, 1986
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 5, 1986
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," changing the rate of corporate net income tax.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 402 of the act of March 4, 1971 (P.L.6,
14 No.2), known as the Tax Reform Code of 1971, amended June 29,
15 1984 (P.L.445, No.94), is amended to read:
16 Section 402. Imposition of Tax.--Every corporation shall be
17 subject to, and shall pay for the privilege of (i) doing
18 business in this Commonwealth; or (ii) carrying on activities in
19 this Commonwealth; (iii) having capital or property employed or
20 used in this Commonwealth; or (iv) owning property in this
1 Commonwealth, by or in the name of itself, or any person,
2 partnership, association, limited partnership, joint-stock
3 association, or corporation, a State excise tax at the rate of
4 twelve per cent per annum upon each dollar of taxable income of
5 such corporation received by, and accruing to, such corporation
6 during the calendar year 1971 and the first six months of 1972
7 and at the rate of eleven per cent per annum upon each dollar of
8 taxable income of such corporation received by, and accruing to,
9 such corporation during the second six months of calendar year
10 1972 through the calendar year 1973 and at the rate of nine and
11 one-half per cent per annum upon each dollar of taxable income
12 of such corporation received by, and accruing to, such
13 corporation during the calendar years 1974, 1975 and 1976 and at
14 the rate of ten and one-half per cent per annum upon each dollar
15 of taxable income of such corporation received by, and accruing
16 to, such corporation during the calendar year 1977 through the
17 calendar year 1984 and at the rate of nine and one-half per cent
18 per annum upon each dollar of taxable income of such corporation
19 received by and accruing to such corporation during the calendar
20 year 1985 and at the rate of eight and one-half per cent per
21 annum upon each dollar of taxable income of such corporation
22 received by and occurring to such corporation during the
23 calendar year 1986 and each calendar year thereafter, except
24 where a corporation reports to the Federal Government on the
25 basis of a fiscal year, and has certified such fact to the
26 department as required by section 403 of this article, in which
27 case, such tax, at the rate of twelve per cent, shall be levied,
28 collected, and paid upon all taxable income received by, and
29 accruing to, such corporation during the first six months of the
30 fiscal year commencing in the calendar year 1972 and at the rate
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1 of eleven per cent, shall be levied, collected, and paid upon
2 all taxable income received by, and accruing to, such
3 corporation during the second six months of the fiscal year
4 commencing in the calendar year 1972 and during the fiscal year
5 commencing in the calendar year 1973 and at the rate of nine and
6 one-half per cent, shall be levied, collected, and paid upon all
7 taxable income received by, and accruing to, such corporation
8 during the fiscal year commencing in the calendar years 1974,
9 1975 and 1976 and at the rate of ten and one-half per cent,
10 shall be levied, collected, and paid upon all taxable income
11 received by, and accruing to, such corporation during the fiscal
12 year commencing in the calendar year 1977 through the fiscal
13 year commencing in 1984 and at the rate of nine and one-half per
14 cent, shall be levied, collected, and paid upon all taxable
15 income received by and accruing to such corporation during the
16 fiscal year commencing in 1985 and during each fiscal year
17 thereafter. No penalty prescribed by subsection (e) of section
18 3003 shall be assessed against a corporation for the additional
19 tax which may be due as a result of the increase in tax rate
20 from nine and one-half per cent to ten and one-half per cent
21 imposed retroactively by this section for the calendar year 1977
22 or for the fiscal year commencing in 1977.
23 Section 2. This act shall apply to taxable years commencing
24 with calendar year 1986.
25 Section 3. This act shall take effect immediately.
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