PRINTER'S NO. 331
No. 311 Session of 1979
INTRODUCED BY THOMAS, ANDERSON, LAUGHLIN, HELFRICK, WILT,
YAHNER AND McCLATCHY, FEBRUARY 13, 1979
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 14, 1979
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," further defining "dividends," providing for
11 taxation as personal income on installment payments of real
12 and personal property and further providing for tax returns.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Clause (f) of section 301, act of March 4, 1971
16 (P.L.6, No.2), known as the "Tax Reform Code of 1971," added
17 August 31, 1971 (P.L.362, No.93), is amended to read:
18 Section 301. Definitions.--The following words, terms and
19 phrases when used in this article shall have the meaning
20 ascribed to them in this section except where the context
21 clearly indicates a different meaning. Any reference in this
22 article to the Internal Revenue Code shall include the Internal
23 Revenue Code of 1954, as amended to the date on which this
1 article is effective:
2 * * *
3 (f) "Dividends" means any distribution in cash or property
4 made by a corporation, association or business trust, (i) out of
5 accumulated earnings and profits, or (ii) out of earnings and
6 profits of the year in which such dividend is paid, except that
7 a stock dividend which is not treated as income for Federal
8 income tax purposes shall not be considered as income for
9 purposes of this article.
10 * * *
11 Section 2. The first paragraph of clause (3) of subsection
12 (a) of section 303 of the act, amended June 17, 1974 (P.L.325,
13 No.105), is amended to read:
14 Section 303. Classes of Income.--(a) The classes of income
15 referred to above are as follows:
16 * * *
17 (3) Net gains or income from disposition of property. Net
18 gains or net income, less net losses, derived from the sale,
19 exchange or other disposition of property, including real or
20 personal, whether tangible or intangible as determined in
21 accordance with accepted accounting principles and practices.
22 For the purpose of this act, for the determination of the basis
23 of any property, real and personal, if acquired prior to June 1,
24 1971, the date of acquisition shall be adjusted to June 1, 1971
25 as if the property had been acquired on that date. If the
26 property was acquired after June 1, 1971, the actual date of
27 acquisition shall be used in determination of the basis. In the
28 case of installment sales of real or personal property the
29 taxable gain recognized in any year shall be that portion of the
30 total gain that the installment payment in any such year bears
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1 to the total sales price to be paid over the entire installment
2 period. The determination of total gains, installment payment
3 and total sales price shall be determined in accordance with
4 accepted accounting principles and practices. The portion of the
5 gain in installment payments received in a tax year commencing
6 after the effective date of this amendatory act is taxable
7 notwithstanding that the sale occurred prior to June 1, 1971
8 unless the tax has been previously paid on the entire gain.
9 * * *
10 Section 3. Section 330 of the act, added August 31, 1971
11 (P.L.362, No.93), is amended to read:
12 Section 330. Returns and Liability.--On or before the date
13 when the taxpayer's Federal income tax return is due or would be
14 due if the taxpayer were required to file a Federal income tax
15 return, under the Internal Revenue Code of 1954, a tax return
16 under this article shall be made and filed by or for every
17 taxpayer having income for the taxable year: Provided, That no
18 return shall be required if the taxpayer has no tax due by
19 reason of application of special tax provisions.
20 Section 4. This act shall take effect immediately.
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