PRINTER'S NO. 301
No. 268 Session of 1983
INTRODUCED BY MILLER, STAIRS, WAMBACH AND EVANS, FEBRUARY 16,
1983
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 16, 1983
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," exempting retired persons sixty years of age and
11 over from the personal income tax on certain interest and
12 dividends.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 303(a)(5) and (6) of the act of March 4,
16 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added
17 August 31, 1971 (P.L.362, No.93), are amended to read:
18 Section 303. Classes of Income.--(a) The classes of income
19 referred to above are as follows:
20 * * *
21 (5) Dividends. The term "dividends" shall not include
22 dividends earned by or received by retired persons sixty years
1 of age or older. The exclusion authorized by this clause shall
2 not apply to dividends which exceed one thousand dollars
3 ($1,000).
4 (6) Interest derived from obligations which are not
5 statutorily free from State or local taxation under any other
6 act of the General Assembly of the Commonwealth of Pennsylvania
7 or under the laws of the United States.
8 The term "interest" shall not include interest received by
9 retired persons sixty years of age and over from interest
10 bearing deposits in financial institutions, including but not
11 limited to any bank, private bank, bank and trust company,
12 savings association, savings bank, trust company, savings and
13 loan association, building and loan association or credit union
14 organized or operated under State or Federal law. The exclusion
15 authorized by this paragraph shall not apply to interest which
16 exceeds one thousand dollars ($1,000).
17 * * *
18 Section 2. The interest and dividend exclusions provided for
19 in this amendatory act shall each be $1,000 for 1983, $1,100 for
20 1984, $1,200 for 1985, $1,300 for 1986, $1,400 for 1987 and
21 $1,500 for 1988 and every year thereafter.
22 Section 3. This act shall apply to taxable years beginning
23 on and after January 1, 1983.
24 Section 4. This act shall take effect immediately.
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