PRIOR PRINTER' S NO. 1579 PRINTER'S NO. 1711
No. 1330 Session of 1985
INTRODUCED BY COWELL, MURPHY, MANDERINO, CESSAR, TRELLO,
MARKOSEK, SEVENTY, MAYERNIK, ITKIN, KOSINSKI, FATTAH, WILSON,
PISTELLA, CAPPABIANCA, STEWART, DeLUCA, LEVDANSKY, VAN HORNE,
DeWEESE, PETRONE, PIEVSKY, SWEET, EVANS, PRESTON, KUKOVICH,
GAMBLE, MICHLOVIC, POTT, BOOK, BURD AND MILLER, MAY 29, 1985
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 11, 1985
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 "research and development" for <--
11 purposes of the capital stock franchise tax. ELIMINATING THE <--
12 SPLIT SECOND QUARTER FOR FILING OF SALES TAX RETURNS;
13 PERMITTING THE EQUITABLE ADJUSTMENT OF TAXES AND PENALTIES;
14 PROVIDING A PROCESSING EXEMPTION FOR COMPUTER SOFTWARE FROM
15 THE CAPITAL STOCK AND FRANCHISE TAX; ELIMINATING TENTATIVE
16 PAYMENTS FOR CORPORATE NET INCOME TAXES AND REQUIRING THE
17 PREPAYMENT OF ESTIMATED TAXES; CHANGING THE TIME PERIOD
18 WITHIN WHICH PETITIONS FOR REFUNDS MAY BE FILED; AND MAKING
19 REPEALS.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. The definition of "research development" in <--
23 section 601(a) of the act of March 4, 1971 (P.L.6, No.2), known
24 as the Tax Reform Code of 1971, amended December 23, 1983
1 (P.L.360, No.89), is amended to read:
2 Section 601. Definitions and Reports.--(a) The following
3 words, terms and phrases when used in this Article VI shall have
4 the meaning ascribed to them in this section, except where the
5 context clearly indicates a different meaning:
6 * * *
7 "Research and development." The activities relating to the
8 discovery of new and the refinement of known substances,
9 products, processes, theories and ideas, but not including
10 activities directed primarily to the accumulation or analysis of
11 commercial, financial or mercantile data. The phrase includes
12 the production of computer software.
13 * * *
14 Section 2. This act shall take effect immediately.
15 SECTION 1. SECTION 217 OF THE ACT OF MARCH 4, 1971 (P.L.6, <--
16 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AMENDED JULY 21,
17 1983 (P.L.63, NO.29), IS AMENDED TO READ:
18 SECTION 217. TIME FOR FILING RETURNS.--(A) [MONTHLY,
19 BIMONTHLY AND QUARTERLY RETURNS] QUARTERLY AND MONTHLY RETURNS:
20 (1) FOR THE YEAR IN WHICH THIS ARTICLE BECOMES EFFECTIVE AND
21 IN EACH YEAR THEREAFTER A RETURN SHALL BE FILED QUARTERLY BY
22 EVERY LICENSEE ON OR BEFORE THE TWENTIETH DAY OF APRIL, JULY,
23 OCTOBER AND JANUARY FOR THE THREE MONTHS ENDING THE LAST DAY OF
24 MARCH, JUNE, SEPTEMBER AND DECEMBER[, EXCEPT AS HEREINAFTER
25 PROVIDED].
26 (2) FOR THE YEAR IN WHICH THIS ARTICLE BECOMES EFFECTIVE,
27 AND IN EACH YEAR THEREAFTER, A RETURN SHALL BE FILED MONTHLY
28 WITH RESPECT TO EACH MONTH BY EVERY LICENSEE WHOSE TOTAL TAX
29 REPORTED, OR IN THE EVENT NO REPORT IS FILED, THE TOTAL TAX
30 WHICH SHOULD HAVE BEEN REPORTED, FOR THE THIRD CALENDAR QUARTER
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1 OF THE PRECEDING YEAR EQUALS OR EXCEEDS SIX HUNDRED DOLLARS
2 ($600). SUCH RETURNS SHALL BE FILED ON OR BEFORE THE TWENTIETH
3 DAY OF THE NEXT SUCCEEDING MONTH WITH RESPECT TO WHICH THE
4 RETURN IS MADE.[, EXCEPT THAT THE RETURN DUE FOR THE MONTH OF
5 APRIL, OF EACH YEAR, SHALL BE FILED ON OR BEFORE THE TWENTIETH
6 DAY OF MAY NEXT FOLLOWING AND THE RETURN DUE FOR THE MONTH OF
7 MAY OF EACH YEAR SHALL BE FILED ON OR BEFORE THE TWENTIETH DAY
8 OF JUNE NEXT FOLLOWING.] ANY LICENSEE REQUIRED TO FILE MONTHLY
9 RETURNS HEREUNDER SHALL BE RELIEVED FROM FILING QUARTERLY
10 RETURNS.
11 [(3) FOR THE YEAR IN WHICH THIS ARTICLE BECOMES EFFECTIVE,
12 AND FOR EACH YEAR THEREAFTER, EVERY LICENSEE REQUIRED TO FILE A
13 QUARTERLY RETURN FOR THE SECOND CALENDAR QUARTER SHALL FILE A
14 SINGLE RETURN FOR THE MONTHS OF APRIL AND MAY ON OR BEFORE THE
15 FIFTEENTH DAY OF JUNE NEXT FOLLOWING. THE FILING OF SUCH RETURN
16 SHALL NOT RELIEVE THE LICENSEE OF THE DUTY TO FILE A RETURN ON
17 OR BEFORE THE TWENTIETH DAY OF JULY NEXT FOLLOWING AND TO REMIT
18 THEREWITH TAX FOR THE MONTH OF JUNE.]
19 (B) ANNUAL RETURNS. FOR THE CALENDAR YEAR 1971, AND FOR EACH
20 YEAR THEREAFTER, NO ANNUAL RETURN SHALL BE FILED, EXCEPT AS MAY
21 BE REQUIRED BY RULES AND REGULATIONS OF THE DEPARTMENT
22 PROMULGATED AND PUBLISHED AT LEAST SIXTY DAYS PRIOR TO THE END
23 OF THE YEAR WITH RESPECT TO WHICH THE RETURNS ARE MADE. WHERE
24 SUCH ANNUAL RETURNS ARE REQUIRED LICENSEES SHALL NOT BE REQUIRED
25 TO FILE SUCH RETURNS PRIOR TO THE TWENTIETH DAY OF THE YEAR
26 SUCCEEDING THE YEAR WITH RESPECT TO WHICH THE RETURNS ARE MADE.
27 (C) OTHER RETURNS. ANY PERSON, OTHER THAN A LICENSEE, LIABLE
28 TO PAY TO THE DEPARTMENT ANY TAX UNDER THIS ARTICLE, SHALL FILE
29 A RETURN ON OR BEFORE THE TWENTIETH DAY OF THE MONTH SUCCEEDING
30 THE MONTH IN WHICH SUCH PERSON BECOMES LIABLE FOR THE TAX.
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1 (D) SMALL TAXPAYERS. THE DEPARTMENT, BY REGULATION, MAY
2 WAIVE THE REQUIREMENT FOR THE FILING OF QUARTERLY RETURN IN THE
3 CASE OF ANY LICENSEE WHOSE INDIVIDUAL TAX COLLECTIONS DO NOT
4 EXCEED SEVENTY-FIVE DOLLARS ($75) PER CALENDAR QUARTER AND MAY
5 PROVIDE FOR REPORTING ON A LESS FREQUENT BASIS IN SUCH CASES.
6 SECTION 2. SECTION 253(D) OF THE ACT IS AMENDED TO READ:
7 SECTION 253. REFUND PETITION.--* * *
8 (D) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION
9 WHERE ANY TAX, INTEREST OR PENALTY HAS BEEN PAID UNDER A
10 PROVISION OF THIS ARTICLE SUBSEQUENTLY HELD BY FINAL JUDGMENT OF
11 A COURT OF COMPETENT JURISDICTION TO BE UNCONSTITUTIONAL, OR
12 UNDER AN INTERPRETATION OF SUCH PROVISION SUBSEQUENTLY HELD BY
13 SUCH COURT TO BE ERRONEOUS, A PETITION FOR REFUND MAY BE FILED
14 EITHER BEFORE OR SUBSEQUENT TO FINAL JUDGMENT, BUT SUCH PETITION
15 MUST BE FILED WITHIN [FIVE] THREE YEARS OF THE DATE OF THE
16 PAYMENT OF WHICH A REFUND IS REQUESTED. THE DEPARTMENT SHALL
17 HAVE JURISDICTION TO HEAR AND DETERMINE ANY SUCH PETITION FILED
18 PRIOR TO SUCH FINAL JUDGMENT ONLY IF, AT THE TIME OF FILING OF
19 THE PETITION, PROCEEDINGS ARE PENDING IN A COURT OF COMPETENT
20 JURISDICTION WHEREIN THE CLAIM OF UNCONSTITUTIONALITY OR OF
21 ERRONEOUS INTERPRETATION, MADE IN THE PETITION FOR REFUND MAY BE
22 ESTABLISHED, AND IN SUCH CASE, THE DEPARTMENT SHALL NOT TAKE
23 FINAL ACTION UPON THE PETITION FOR REFUND UNTIL THE JUDGMENT
24 DETERMINING THE QUESTION INVOLVED IN SUCH PETITION HAS BECOME
25 FINAL.
26 SECTION 3. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
27 SECTION 352.1. ABATEMENT OF ADDITIONS OR PENALTIES.--UPON
28 THE FILING OF A PETITION FOR REASSESSMENT OR PETITION FOR REVIEW
29 BY A TAXPAYER AS PROVIDED BY THIS ARTICLE, THE DEPARTMENT MAY
30 WAIVE OR ABATE, IN WHOLE OR IN PART, ADDITIONS OR PENALTIES
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1 IMPOSED UPON SUCH TAXPAYER DURING A TAXABLE YEAR, WHERE THE
2 AMOUNT OF TAX CONTESTED IN THE PETITION IS FIVE HUNDRED DOLLARS
3 ($500) OR LESS AND WHERE THE TAXPAYER HAS ESTABLISHED THAT HE
4 ACTED IN GOOD FAITH, WITH NO NEGLIGENCE OR INTENT TO DEFRAUD.
5 SECTION 4. SECTION 403(B) AND (C) OF THE ACT, AMENDED
6 SEPTEMBER 9, 1971 (P.L.437, NO.105), IS AMENDED TO READ:
7 SECTION 403. REPORTS AND PAYMENT OF TAX.--* * *
8 (B) FOR THE PURPOSE OF ASCERTAINING THE AMOUNT OF TAX
9 PAYABLE UNDER THIS ARTICLE FOR THE TAXABLE YEAR 1971, AND EACH
10 TAXABLE YEAR THEREAFTER, IT SHALL BE THE DUTY OF EVERY
11 CORPORATION LIABLE TO PAY TAX UNDER THIS ARTICLE, ON OR BEFORE
12 APRIL 30, 1971, AND ON OR BEFORE THE END OF THE FOURTH MONTH
13 AFTER THE CLOSE OF ITS PREVIOUS FISCAL YEAR FOR FISCAL YEAR
14 TAXPAYERS, AND EACH YEAR THEREAFTER, TO TRANSMIT IN LIKE FORM
15 AND MANNER AN ADDITIONAL TENTATIVE REPORT AND MAKE PAYMENT
16 PURSUANT TO THE PROVISIONS OF THE ACT OF MARCH 16, 1970
17 (P.L.180): PROVIDED, THAT IN MAKING SUCH REPORT AND PAYMENT FOR
18 THE CALENDAR YEAR 1971 AND EACH YEAR THEREAFTER AND FOR FISCAL
19 YEARS COMMENCING DURING THE CALENDAR YEAR 1971, AND EACH YEAR
20 THEREAFTER THE TAX BASE FROM THE IMMEDIATE PRIOR YEAR, UPON
21 WHICH THE TENTATIVE TAX COMPUTATION IS TO BE MADE UNDER SAID ACT
22 OF MARCH 16, 1970 (P.L.180), SHALL BE COMPUTED AS IF THE TAX
23 BASE FOR SUCH IMMEDIATE PRIOR YEAR HAD BEEN DETERMINED UNDER THE
24 APPLICABLE PROVISIONS OF THE ACT OF MARCH 4, 1971 (ACT NO.2).
25 FOR TAXABLE YEARS COMMENCING WITH CALENDAR YEAR 1986 AND FOR
26 EACH TAXABLE YEAR THEREAFTER, CORPORATIONS SHALL NOT REPORT AND
27 PAY TENTATIVE TAX ON ACCOUNT OF THE CORPORATE NET INCOME TAX,
28 BUT SHALL, ON OR BEFORE APRIL 15 FOR CALENDAR YEAR TAXPAYERS,
29 AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH OF THE
30 FISCAL YEAR FOR FISCAL YEAR TAXPAYERS, REPORT AND PAY ESTIMATED
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1 CORPORATE NET INCOME TAX PURSUANT TO SECTION 3003.2 OF THIS ACT:
2 PROVIDED, HOWEVER, THAT TENTATIVE TAX ON ACCOUNT OF ANY OTHER
3 TAX WHICH IS IMPOSED AS THE RESULT OF THE ADOPTION BY REFERENCE
4 OF THIS PART OR SECTION SHALL CONTINUE TO BE IMPOSED.
5 (C) THE AMOUNT OF ALL TAXES, IMPOSED UNDER THE PROVISIONS OF
6 THIS ARTICLE, NOT PAID ON OR BEFORE THE TIMES AS ABOVE PROVIDED,
7 SHALL BEAR INTEREST [AT THE RATE OF SIX PER CENT PER ANNUM] AS
8 PROVIDED IN SECTION 806 OF THE ACT OF APRIL 9, 1929 (P.L.343,
9 NO.176), KNOWN AS THE FISCAL CODE, FROM THE DATE THEY ARE DUE
10 AND PAYABLE UNTIL PAID, EXCEPT THAT IF THE TAXABLE INCOME HAS
11 BEEN, OR IS INCREASED BY THE COMMISSIONER OF INTERNAL REVENUE,
12 OR BY ANY OTHER AGENCY OR COURT OF THE UNITED STATES, INTEREST
13 SHALL BE COMPUTED ON THE ADDITIONAL TAX DUE FROM THIRTY DAYS
14 AFTER THE CORPORATION RECEIVES NOTICE OF THE CHANGE OF INCOME
15 UNTIL PAID: PROVIDED, HOWEVER, THAT ANY CORPORATION MAY PAY THE
16 FULL AMOUNT OF SUCH TAX, OR ANY PART THEREOF, TOGETHER WITH
17 INTEREST DUE TO THE DATE OF PAYMENT, WITHOUT PREJUDICE TO ITS
18 RIGHT TO PRESENT AND PROSECUTE A PETITION FOR RESETTLEMENT, A
19 PETITION FOR REVIEW, OR AN APPEAL TO COURT. IF IT BE THEREAFTER
20 DETERMINED THAT SUCH TAXES WERE OVERPAID, THE DEPARTMENT SHALL
21 ENTER A CREDIT TO THE ACCOUNT OF SUCH CORPORATION, WHICH MAY BE
22 USED BY IT IN THE MANNER PRESCRIBED BY LAW.
23 * * *
24 SECTION 5. SECTION 601(A) OF THE ACT, AMENDED DECEMBER 23,
25 1983 (P.L.360, NO.89), IS AMENDED TO READ:
26 SECTION 601. DEFINITIONS AND REPORTS.--(A) THE FOLLOWING
27 WORDS, TERMS AND PHRASES WHEN USED IN THIS ARTICLE VI SHALL HAVE
28 THE MEANING ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE
29 CONTEXT CLEARLY INDICATES A DIFFERENT MEANING:
30 "AVERAGE NET INCOME." THE SUM OF THE NET INCOME OR LOSS FOR
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1 EACH OF THE CURRENT AND IMMEDIATELY PRECEDING FOUR YEARS,
2 DIVIDED BY FIVE. IF THE ENTITY HAS NOT BEEN IN EXISTENCE FOR A
3 PERIOD OF FIVE YEARS, THE AVERAGE NET INCOME SHALL BE THE
4 AVERAGE NET INCOME FOR THE NUMBER OF YEARS THAT THE ENTITY HAS
5 ACTUALLY BEEN IN EXISTENCE. IN COMPUTING AVERAGE NET INCOME,
6 LOSSES SHALL BE ENTERED AS COMPUTED, BUT IN NO CASE SHALL
7 AVERAGE NET INCOME BE LESS THAN ZERO. THE NET INCOME OR LOSS OF
8 THE ENTITY FOR ANY TAXABLE YEAR SHALL BE THE AMOUNT SET FORTH AS
9 INCOME PER BOOKS ON THE INCOME TAX RETURN FILED BY THE ENTITY
10 WITH THE FEDERAL GOVERNMENT FOR SUCH TAXABLE YEAR, OR IF NO SUCH
11 RETURN IS MADE, AS WOULD HAVE BEEN SET FORTH HAD SUCH A RETURN
12 BEEN MADE, SUBJECT, HOWEVER, IN EITHER CASE TO ANY CORRECTION
13 THEREOF, FOR FRAUD, EVASION OR ERROR. IN THE CASE OF ANY ENTITY
14 WHICH HAS AN INVESTMENT IN ANOTHER CORPORATION, THE NET INCOME
15 OR LOSS SHALL BE COMPUTED ON AN UNCONSOLIDATED BASIS EXCLUSIVE
16 OF THE NET INCOME OR LOSS OF SUCH OTHER CORPORATION.
17 "CAPITAL STOCK." THE CAPITAL STOCK OF AN ENTITY AND ALL
18 OTHER INTERESTS IN A DOMESTIC OR FOREIGN CORPORATION.
19 "CAPITAL STOCK VALUE." THE AMOUNT COMPUTED PURSUANT TO THE
20 FOLLOWING FORMULA: ONE-HALF TIMES THE SUM OF THE AVERAGE NET
21 INCOME CAPITALIZED AT THE RATE OF NINE AND ONE-HALF PER CENT
22 PLUS SEVENTY-FIVE PER CENT OF NET WORTH, THE ALGEBRAIC
23 EQUIVALENT OF WHICH IS
24 .5 X (AVERAGE NET INCOME/.095 + (.75) (NET WORTH))
25 "DEPARTMENT." THE DEPARTMENT OF REVENUE.
26 "DOMESTIC ENTITY." EVERY CORPORATION HAVING CAPITAL STOCK,
27 EVERY JOINT-STOCK ASSOCIATION, LIMITED PARTNERSHIP AND EVERY
28 COMPANY WHATSOEVER, NOW OR HEREAFTER ORGANIZED OR INCORPORATED
29 BY OR UNDER ANY LAWS OF THE COMMONWEALTH, OTHER THAN
30 CORPORATIONS OF THE FIRST CLASS, NONPROFIT CORPORATIONS AND
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1 COOPERATIVE AGRICULTURAL ASSOCIATIONS NOT HAVING CAPITAL STOCK
2 AND NOT CONDUCTED FOR PROFIT, BANKS, SAVINGS INSTITUTIONS, TITLE
3 INSURANCE OR TRUST COMPANIES, BUILDING AND LOAN ASSOCIATIONS AND
4 INSURANCE COMPANIES IS A DOMESTIC ENTITY.
5 "ENTITY." ANY DOMESTIC OR FOREIGN ENTITY.
6 "FOREIGN ENTITY." EVERY CORPORATION, JOINT-STOCK
7 ASSOCIATION, LIMITED PARTNERSHIP AND COMPANY WHATSOEVER, NOW OR
8 HEREAFTER INCORPORATED OR ORGANIZED BY OR UNDER THE LAW OF ANY
9 OTHER STATE OR TERRITORY OF THE UNITED STATES, OR BY THE UNITED
10 STATES, OR BY OR UNDER THE LAW OF ANY FOREIGN GOVERNMENT, AND
11 DOING BUSINESS IN AND LIABLE TO TAXATION WITHIN THE COMMONWEALTH
12 OR HAVING CAPITAL OR PROPERTY EMPLOYED OR USED IN THE
13 COMMONWEALTH BY OR IN THE NAME OF ANY LIMITED PARTNERSHIP OR
14 JOINT-STOCK ASSOCIATION, COPARTNERSHIP OR COPARTNERSHIPS, PERSON
15 OR PERSONS, OR IN ANY OTHER MANNER DOING BUSINESS WITHIN AND
16 LIABLE TO TAXATION WITHIN THE COMMONWEALTH OTHER THAN NONPROFIT
17 CORPORATIONS, BANKS, SAVINGS INSTITUTIONS, TITLE INSURANCE OR
18 TRUST COMPANIES, BUILDING AND LOAN ASSOCIATIONS AND INSURANCE
19 COMPANIES IS A FOREIGN ENTITY.
20 "HOLDING COMPANY." ANY CORPORATION (I) AT LEAST NINETY PER
21 CENT OF THE GROSS INCOME OF WHICH FOR THE TAXABLE YEAR IS
22 DERIVED FROM DIVIDENDS, INTEREST, GAINS FROM THE SALE, EXCHANGE
23 OR OTHER DISPOSITION OF STOCK OR SECURITIES AND THE RENDITION OF
24 MANAGEMENT AND ADMINISTRATIVE SERVICES TO SUBSIDIARY
25 CORPORATIONS, AND (II) AT LEAST SIXTY PER CENT OF THE ACTUAL
26 VALUE OF THE TOTAL ASSETS OF WHICH CONSISTS OF STOCK SECURITIES
27 OR INDEBTEDNESS OF SUBSIDIARY CORPORATIONS.
28 "NET WORTH." NET WORTH SHALL BE THE SUM OF THE ENTITY'S
29 ISSUED AND OUTSTANDING CAPITAL STOCK, SURPLUS AND UNDIVIDED
30 PROFITS AS PER BOOKS SET FORTH FOR THE CLOSE OF SUCH TAX YEAR ON
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1 THE INCOME TAX RETURN FILED BY THE ENTITY WITH THE FEDERAL
2 GOVERNMENT, OR IF NO SUCH RETURN IS MADE, AS WOULD HAVE BEEN SET
3 FORTH HAD SUCH RETURN BEEN MADE, SUBJECT, HOWEVER, IN EITHER
4 CASE TO ANY CORRECTION THEREOF FOR FRAUD, EVASION OR ERROR. IN
5 THE CASE OF ANY ENTITY WHICH HAS INVESTMENTS IN THE COMMON STOCK
6 OF OTHER CORPORATIONS, THE NET WORTH SHALL BE THE CONSOLIDATED
7 NET WORTH OF SUCH ENTITY COMPUTED IN ACCORDANCE WITH GENERALLY
8 ACCEPTED ACCOUNTING PRINCIPLES. NET WORTH SHALL IN NO CASE BE
9 LESS THAN ZERO.
10 "PROCESSING." THE FOLLOWING ACTIVITIES WHEN ENGAGED IN AS A
11 BUSINESS ENTERPRISE:
12 (1) THE COOKING OR FREEZING OF FRUITS, VEGETABLES,
13 MUSHROOMS, FISH, SEAFOOD, MEATS OR POULTRY, WHEN THE PERSON
14 ENGAGED IN SUCH BUSINESS PACKAGES SUCH PROPERTY IN SEALED
15 CONTAINERS FOR WHOLESALE DISTRIBUTION.
16 (2) THE SCOURING, CARBONIZING, CORDING, COMBING, THROWING,
17 TWISTING OR WINDING OF NATURAL OR SYNTHETIC FIBERS, OR THE
18 SPINNING, BLEACHING, DYEING, PRINTING OR FINISHING OF YARNS OR
19 FABRICS, WHEN SUCH ACTIVITIES ARE PERFORMED PRIOR TO SALE TO THE
20 ULTIMATE CONSUMER.
21 (3) THE ELECTROPLATING, GALVANIZING, ENAMELING, ANODIZING,
22 COLORING, FINISHING, IMPREGNATING OR HEAT TREATING OF METALS OR
23 PLASTICS FOR SALE OR IN THE PROCESS OF MANUFACTURING.
24 (4) THE ROLLING, DRAWING OR EXTRUDING OF FERROUS AND
25 NONFERROUS METALS.
26 (5) THE FABRICATION FOR SALE OF ORNAMENTAL OR STRUCTURAL
27 METAL OR METAL STAIRS, STAIRCASES, GRATINGS, FIRE ESCAPES OR
28 RAILINGS (NOT INCLUDING FABRICATION WORK DONE AT THE
29 CONSTRUCTION SITE).
30 (6) THE PREPARATION OF ANIMAL FEED OR POULTRY FEED FOR SALE.
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1 (7) THE PRODUCTION, PROCESSING AND BOTTLING OF NONALCOHOLIC
2 BEVERAGES FOR WHOLESALE DISTRIBUTION.
3 (8) THE SLAUGHTERING AND DRESSING OF ANIMALS FOR MEAT TO BE
4 SOLD OR TO BE USED IN PREPARING MEAT PRODUCTS FOR SALE, AND THE
5 PREPARATION OF MEAT PRODUCTS, INCLUDING LARD, TALLOW, GREASE,
6 COOKING AND INEDIBLE OILS FOR WHOLESALE DISTRIBUTION.
7 (9) THE OPERATION OF A SAWMILL OR PLANING MILL FOR THE
8 PRODUCTION OF LUMBER OR LUMBER PRODUCTS FOR SALE.
9 (10) THE MILLING FOR SALE OF FLOUR OR MEAL FROM GRAINS.
10 (11) THE PUBLISHING OF BOOKS, NEWSPAPERS, MAGAZINES OR OTHER
11 PERIODICALS, PRINTING AND BROADCASTING RADIO AND TELEVISION
12 PROGRAMS BY LICENSED COMMERCIAL OR EDUCATIONAL STATIONS.
13 (12) THE PROCESSING OF USED LUBRICATING OILS.
14 (13) THE BLENDING, RECTIFICATION OR PRODUCTION BY
15 DISTILLATION OR OTHERWISE OF ALCOHOL OR ALCOHOLIC LIQUORS,
16 EXCEPT THE DISTILLATION OF ALCOHOL FROM BYPRODUCTS OF WINEMAKING
17 FOR THE SOLE PURPOSE OF FORTIFYING WINE.
18 (14) THE SALVAGING, RECYCLING OR RECLAIMING OF USED
19 MATERIALS TO BE RECYCLED INTO A MANUFACTURING PROCESS.
20 (15) THE DEVELOPMENT OR SUBSTANTIAL MODIFICATION OF COMPUTER
21 PROGRAMS OR SOFTWARE WHEN SUCH PROGRAMS OR SOFTWARE ARE USED AS
22 PRODUCTS FOR SALE TO UNRELATED PERSONS.
23 "RESEARCH AND DEVELOPMENT." THE ACTIVITIES RELATING TO THE
24 DISCOVERY OF NEW AND THE REFINEMENT OF KNOWN SUBSTANCES,
25 PRODUCTS, PROCESSES, THEORIES AND IDEAS, BUT NOT INCLUDING
26 ACTIVITIES DIRECTED PRIMARILY TO THE ACCUMULATION OR ANALYSIS OF
27 COMMERCIAL, FINANCIAL OR MERCANTILE DATA.
28 "SUBSIDIARY CORPORATION." ANY CORPORATION, A MAJORITY OF THE
29 TOTAL ISSUED AND OUTSTANDING SHARES OF VOTING STOCK OF WHICH ARE
30 OWNED BY THE TAXPAYER CORPORATION DIRECTLY OR THROUGH ONE OR
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1 MORE INTERVENING SUBSIDIARY CORPORATIONS.
2 SECTION 6. SECTION 3003(B), (C) AND (D) OF THE ACT, AMENDED
3 DECEMBER 1, 1983 (P.L.228, NO.66), IS AMENDED TO READ:
4 SECTION 3003. PREPAYMENT OF TAX.--* * *
5 (B) FOR THE TAXABLE YEARS COMMENCING WITH CALENDAR YEAR 1979
6 AND FOR EACH TAXABLE YEAR THEREAFTER, THE TENTATIVE TAX DUE FOR
7 THE CURRENT YEAR SHALL BE COMPUTED BY APPLYING THE CURRENT TAX
8 RATE TO NINETY PER CENT OF SUCH TAX BASE FROM THE YEAR PRECEDING
9 THE IMMEDIATE PRIOR YEAR AS MAY BE APPLICABLE WITH RESPECT TO
10 THE TAX BEING REPORTED; EXCEPT THAT WITH RESPECT TO THE
11 AFORESAID GROSS RECEIPTS TAX ON PUBLIC SERVICE COMPANIES,
12 TRANSPORTATION BY MOTOR VEHICLES AND TRACKLESS TROLLEYS, OTHER
13 THAN MOTOR VEHICLES FOR HIRE, AND THE AFORESAID INSURANCE
14 PREMIUMS TAX, SUCH AMOUNT SHALL CONTINUE TO BE COMPUTED BY
15 APPLYING THE CURRENT TAX RATE TO NINETY PER CENT OF THE TAX BASE
16 FROM THE IMMEDIATE PRIOR YEAR AS MAY BE APPLICABLE WITH RESPECT
17 TO THE TAX BEING REPORTED; AND EXCEPT THAT CORPORATIONS SHALL
18 NOT BE REQUIRED TO REPORT OR PAY TENTATIVE TAX WITH RESPECT TO
19 THE CORPORATE NET INCOME TAX ON ACCOUNT OF ANY TAXABLE YEAR
20 COMMENCING WITH CALENDAR YEAR 1986 AND EACH TAXABLE YEAR
21 THEREAFTER.
22 THE TAX IMPOSED ON SHARES OF BANKS AND TITLE INSURANCE AND
23 TRUST COMPANIES, THE TAX IMPOSED BY ARTICLE XVI AND THE TAX
24 IMPOSED ON PUBLIC UTILITY REALTY SHALL BE PAID IN THE MANNER AND
25 WITHIN THE TIME PRESCRIBED BY ARTICLE VII, ARTICLE VIII OR
26 ARTICLE XI-A, AS THE CASE MAY BE, BUT SUBJECT TO THE ADDITIONS
27 AND INTEREST PROVIDED IN SUBSECTION (E) OF THIS SECTION.
28 (C) PAYMENT OF TAXES IMPOSED BY ARTICLES IV, V, IX [AND], XI
29 AND XV OF THIS ACT [AND BY THE ACT OF JUNE 22, 1964 (P.L.16,
30 NO.2), KNOWN AS "THE MUTUAL THRIFT INSTITUTIONS TAX ACT,"] MAY
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1 AT THE TAXPAYER'S ELECTION BE AN AMOUNT ESTIMATED BY THE
2 TAXPAYER WHICH ESTIMATED AMOUNT SHALL NOT BE LESS THAN NINETY
3 PER CENT OF THE TAX AS IS FINALLY REPORTED IN THE ANNUAL TAX
4 REPORT FOR THE CURRENT CALENDAR OR FISCAL YEAR.
5 (D) A CORPORATION WITH RESPECT TO THE CORPORATE NET INCOME
6 TAX IMPOSED BY ARTICLE IV AND THE CORPORATION INCOME TAX IMPOSED
7 BY ARTICLE V OF THIS ACT MAY, AT ITS ELECTION, REPORT AND PAY IN
8 INSTALLMENTS ON ACCOUNT OF THE TAX DUE FOR THE CURRENT TAXABLE
9 YEAR AN AMOUNT COMPUTED EITHER BY APPLYING THE CURRENT TAX RATE
10 TO NINETY PER CENT OF THE TAX BASE AS DETERMINED IN SUBSECTION
11 (A) OR (B) OF THIS SECTION, OR AS COMPUTED ON THE BASIS
12 ESTIMATED BY THE TAXPAYER TO BE DUE FOR THE CURRENT YEAR WHICH
13 ESTIMATED AMOUNT SHALL NOT BE LESS THAN NINETY PER CENT OF THE
14 TAX AS IS FINALLY REPORTED IN THE ANNUAL TAX REPORT FOR THE
15 CURRENT YEAR AS PROVIDED IN SUBSECTION (C) OF THIS SECTION. THE
16 INSTALLMENTS SHALL BE PAID IN ACCORDANCE WITH THE FOLLOWING
17 SCHEDULES:
18 FIRST SECOND THIRD FOURTH
19 YEAR IN DUE ON THE 15TH DAY OF THE FOLLOWING MONTHS
20 WHICH TAX AFTER CLOSE OF THE PREVIOUS TAX YEAR:
21 YEAR BEGINS 4TH MONTH 6TH MONTH 9TH MONTH 12TH MONTH
22 1978 95% 0% 5% 0%
23 1979 95% 0% 5% 0%
24 1980 80% 0% 10% 10%
25 1981 40% 30% 20% 10%
26 1982 30% 30% 25% 15%
27 1983 [AND THEREAFTER] THROUGH
28 1985 25% 25% 25% 25%
29 ANY TAXPAYER WHICH HAS ELECTED TO COMPUTE ITS TENTATIVE TAX
30 LIABILITY ON THE AFORESAID ESTIMATED BASIS AND WHICH HAS ELECTED
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1 TO REPORT AND PAY SAID [ESTIMATED TAX] ESTIMATE IN INSTALLMENTS,
2 MAY WHEN REPORTING AND PAYING ITS THIRD OR FOURTH INSTALLMENT,
3 BASE SUCH INSTALLMENT ON AN AMENDED TENTATIVE TAX REPORT
4 REFLECTING THE TAXPAYER'S NEW ESTIMATE OF ITS TAX LIABILITY FOR
5 THE TAX YEAR: PROVIDED, THAT THE NEW ESTIMATE REFLECTS A LOWER
6 TAX LIABILITY THAN WAS PREVIOUSLY REPORTED IN ITS ORIGINAL OR,
7 IF APPLICABLE, AMENDED TENTATIVE TAX REPORT. IF AN AMENDED
8 TENTATIVE TAX REPORT IS FILED, EACH REMAINING INSTALLMENT
9 PAYMENT DUE, IF ANY, SHALL BE SUCH AS TO BRING THE TOTAL
10 INSTALLMENT PAYMENTS MADE ON ACCOUNT OF THE TAX DUE FOR THE
11 CURRENT TAXABLE YEAR UP TO AN AMOUNT DETERMINED BY MULTIPLYING
12 THE TENTATIVE TAX DUE FOR THE YEAR AS REPORTED IN THE AMENDED
13 REPORT BY THE SUM OF THE PERCENTAGES SET FORTH IN THE ABOVE
14 SCHEDULE FOR THE APPLICABLE ELAPSED INSTALLMENTS.
15 THE REMAINING PORTION OF THE TAX DUE, IF ANY, SHALL BE PAID
16 UPON THE DATE THE TAXPAYER'S ANNUAL REPORT IS REQUIRED TO BE
17 FILED UNDER THE APPLICABLE TAX STATUTE, DETERMINED WITHOUT
18 REFERENCE TO ANY EXTENSION OF TIME FOR FILING SUCH REPORT.
19 * * *
20 SECTION 7. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
21 SECTION 3003.1. PETITIONS FOR REFUNDS.--WHEN ANY TAX OR
22 OTHER MONEY HAS BEEN PAID TO THE COMMONWEALTH, UNDER A PROVISION
23 OF THIS ACT OR ANY OTHER STATUTE SUBSEQUENTLY HELD BY FINAL
24 JUDGMENT OF A COURT OF COMPETENT JURISDICTION TO BE
25 UNCONSTITUTIONAL, OR UNDER AN INTERPRETATION OF SUCH PROVISION
26 SUBSEQUENTLY HELD BY SUCH COURT TO BE ERRONEOUS, A PETITION FOR
27 REFUND MAY BE FILED WITH THE BOARD OF FINANCE AND REVENUE EITHER
28 PRIOR OR SUBSEQUENT TO SUCH FINAL JUDGMENT BUT MUST BE FILED
29 WITHIN THREE YEARS OF THE PAYMENT OF WHICH A REFUND IS
30 REQUESTED, OR WITHIN THREE YEARS OF THE SETTLEMENT OF SUCH TAXES
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1 OR OTHER MONEYS DUE THE COMMONWEALTH, WHICHEVER PERIOD LAST
2 EXPIRES. THE BOARD SHALL HAVE JURISDICTION TO HEAR AND DETERMINE
3 ANY PETITION FOR REFUND FILED PRIOR TO SUCH FINAL JUDGMENT ONLY
4 IF, AT THE TIME OF THE FILING THEREOF, PROCEEDINGS ARE PENDING
5 IN A COURT OF COMPETENT JURISDICTION WHEREIN THE CLAIMS OF
6 UNCONSTITUTIONALITY OR ERRONEOUS INTERPRETATION MADE IN THE
7 PETITION FOR REFUND MAY BE ESTABLISHED, AND IN SUCH CASE THE
8 BOARD SHALL NOT ACT UPON THE PETITION FOR REFUND UNTIL THE FINAL
9 JUDGMENT DETERMINING THE QUESTION OR QUESTIONS INVOLVED IN SUCH
10 PETITION HAS BEEN HANDED DOWN. THIS SECTION SHALL ALSO APPLY TO
11 REFUNDS UNDER 72 PA.C.S. § 1781(D)(4) (RELATING TO REFUND OF
12 TAX).
13 SECTION 3003.2. ESTIMATED CORPORATE NET INCOME TAX.--(A)
14 CORPORATIONS REQUIRED TO PAY ESTIMATED TAX. EVERY CORPORATION
15 SUBJECT TO THE CORPORATE NET INCOME TAX IMPOSED BY ARTICLE IV OF
16 THIS ACT, COMMENCING WITH THE CALENDAR YEAR 1986 AND FISCAL
17 YEARS BEGINNING DURING THE CALENDAR YEAR 1986 AND EACH TAXABLE
18 YEAR THEREAFTER, SHALL MAKE PAYMENTS OF ESTIMATED TAX DURING ITS
19 TAXABLE YEAR AS PROVIDED HEREIN.
20 (B) ESTIMATED TAX DEFINED. FOR PURPOSES OF THIS ARTICLE,
21 "ESTIMATED TAX" MEANS THE AMOUNT WHICH THE CORPORATION ESTIMATES
22 AS THE AMOUNT OF TAX IMPOSED BY SECTION 402 OF ARTICLE IV FOR
23 THE TAXABLE YEAR.
24 (C) PAYMENT IN INSTALLMENTS. PAYMENTS OF ESTIMATED TAX
25 SHALL BE MADE IN EQUAL INSTALLMENTS ON OR BEFORE THE FIFTEENTH
26 DAY OF THE FOURTH, SIXTH, NINTH AND TWELFTH MONTHS OF THE
27 TAXABLE YEAR. THE REMAINING PORTION OF THE TAX DUE, IF ANY,
28 SHALL BE PAID UPON THE DATE THE CORPORATION'S ANNUAL REPORT IS
29 REQUIRED TO BE FILED WITHOUT REFERENCE TO ANY EXTENSION OF TIME
30 FOR FILING SUCH REPORT.
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1 (D) RECOMPUTATION OF ESTIMATED TAX. IF, AFTER PAYING ANY
2 INSTALLMENT OF ESTIMATED TAX, THE CORPORATION REVISES ITS
3 ESTIMATED TAX, THE AMOUNT OF EACH REMAINING INSTALLMENT DUE, IF
4 ANY, SHALL BE SUCH AS TO BRING THE TOTAL INSTALLMENT PAYMENTS
5 MADE ON ACCOUNT OF THE TAX DUE FOR THE CURRENT YEAR UP TO AN
6 AMOUNT THAT WOULD HAVE BEEN DUE HAD THE REVISED ESTIMATE BEEN
7 THE BASIS FOR PAYING ALL PREVIOUS INSTALLMENTS.
8 (E) APPLICATION TO SHORT TAXABLE YEAR. EVERY CORPORATION
9 WITH A TAXABLE YEAR OF LESS THAN TWELVE MONTHS SHALL PAY SUCH
10 INSTALLMENTS AS BECOME DUE DURING THE COURSE OF ITS TAXABLE
11 YEAR, AND PAY THE REMAINING TAX DUE ON OR BEFORE THE DUE DATE OF
12 THE ANNUAL REPORT (DETERMINED WITHOUT REGARD TO ANY EXTENSION OF
13 TIME FOR FILING).
14 (F) INSTALLMENTS PAID IN ADVANCE. AT THE ELECTION OF THE
15 CORPORATION, ANY INSTALLMENT OF ESTIMATED TAX MAY BE PAID BEFORE
16 THE DATE PRESCRIBED FOR ITS PAYMENT.
17 SECTION 3003.3. UNDERPAYMENT OF INSTALLMENTS OF ESTIMATED
18 TAX.--(A) ADDITIONAL TAX. IN CASE OF ANY UNDERPAYMENT OF ANY
19 INSTALLMENT OF ESTIMATED TAX BY A CORPORATION, THERE SHALL BE
20 IMPOSED AN ADDITIONAL TAX FOR THE TAXABLE YEAR IN AN AMOUNT
21 DETERMINED AT THE ANNUAL RATE AS PROVIDED BY LAW FOR THE PAYMENT
22 OF INTEREST UPON THE AMOUNT OF THE UNDERPAYMENT FOR THE PERIOD
23 OF THE UNDERPAYMENT, EXCEPT THAT IN CASE OF ANY SUBSTANTIAL
24 UNDERPAYMENT OF ANY INSTALLMENT OF ESTIMATED TAX BY A
25 CORPORATION, SUCH ADDITIONAL TAX FOR THE TAXABLE YEAR SHALL BE
26 IMPOSED IN AN AMOUNT DETERMINED AT ONE HUNDRED TWENTY PER CENT
27 OF THE ANNUAL RATE AS PROVIDED BY LAW FOR THE PAYMENT OF
28 INTEREST UPON THE ENTIRE UNDERPAYMENT FOR THE PERIOD OF THE
29 SUBSTANTIAL UNDERPAYMENT. FOR THE PURPOSE OF THIS SUBSECTION, A
30 SUBSTANTIAL UNDERPAYMENT SHALL BE DEEMED TO EXIST FOR ANY PERIOD
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1 DURING WHICH THE AMOUNT OF THE UNDERPAYMENT EQUALS OR EXCEEDS
2 TWENTY-FIVE PER CENT OF THE CUMULATIVE AMOUNT OF INSTALLMENTS OF
3 ESTIMATED TAX WHICH WOULD BE REQUIRED TO BE PAID IF THE
4 ESTIMATED TAX WERE EQUAL TO THE AMOUNT AS DETERMINED IN
5 SUBSECTION (B)(1).
6 (B) AMOUNT OF UNDERPAYMENT. FOR PURPOSES OF THIS SECTION,
7 THE AMOUNT OF THE UNDERPAYMENT, IF ANY, SHALL BE THE EXCESS OF
8 THE AMOUNT PURSUANT TO PARAGRAPH (1) OF THIS SUBSECTION OVER THE
9 AMOUNT COMPUTED PURSUANT TO PARAGRAPH (2) OF THIS SUBSECTION:
10 (1) THE CUMULATIVE AMOUNT OF QUARTERLY INSTALLMENTS WHICH
11 WOULD BE REQUIRED TO BE PAID AS OF EACH INSTALLMENT DATE AS
12 DEFINED IN SECTION 3003.2(C) IF THE ESTIMATED TAX WERE EQUAL TO:
13 (I) NINETY PER CENT OF THE TAX SHOWN ON THE REPORT FOR THE
14 TAXABLE YEAR; OR (II) IF THE SETTLED TAX EXCEEDS THE TAX SHOWN
15 ON THE REPORT BY TEN PER CENT OR MORE, NINETY PER CENT OF THE
16 AMOUNT OF SETTLED TAX; OR (III) IF THE SETTLED TAX REFERRED TO
17 IN SUBPARAGRAPH (II) OF THIS PARAGRAPH IS SUBSEQUENTLY
18 RESETTLED, NINETY PER CENT OF THE AMOUNT OF RESETTLED TAX. THE
19 AMOUNT OF TAX AS RESETTLED SHALL BE UTILIZED IN DETERMINING THE
20 AMOUNT OF UNDERPAYMENT WITHOUT THE NECESSITY OF THE FILING OF
21 ANY PETITION BY THE DEPARTMENT OR BY THE CORPORATION.
22 (2) THE CUMULATIVE AMOUNT OF QUARTERLY INSTALLMENTS PAID ON
23 OR BEFORE THE LAST DATE PRESCRIBED FOR PAYMENT OF EACH
24 INSTALLMENT.
25 (C) PERIOD OF UNDERPAYMENT. THE PERIOD OF THE UNDERPAYMENT
26 SHALL RUN FROM THE DATE THE INSTALLMENT WAS REQUIRED TO BE PAID
27 TO WHICHEVER OF THE FOLLOWING DATES IS THE EARLIER:
28 (1) THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE
29 CLOSE OF THE TAXABLE YEAR.
30 (2) THE DATE ON WHICH THE INSTALLMENT IS PAID.
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1 (D) EXCEPTION. NOTWITHSTANDING THE PROVISIONS OF THE
2 PRECEDING SUBSECTIONS, THE ADDITIONAL TAX WITH RESPECT TO ANY
3 UNDERPAYMENT OF ANY INSTALLMENT SHALL NOT BE IMPOSED IF THE
4 TOTAL AMOUNT OF ALL INSTALLMENTS OF ESTIMATED TAX MADE ON OR
5 BEFORE THE LAST DATE PRESCRIBED FOR THE PAYMENT OF EACH
6 INSTALLMENT EQUALS OR EXCEEDS THE AMOUNT WHICH WOULD HAVE BEEN
7 REQUIRED TO BE PAID ON OR BEFORE SUCH DATE IF THE ESTIMATED TAX
8 WERE AN AMOUNT EQUAL TO THE TAX COMPUTED AT THE RATES APPLICABLE
9 TO THE TAXABLE YEAR BUT OTHERWISE ON THE BASIS OF THE FACTS
10 SHOWN ON THE REPORT OF THE CORPORATION FOR, AND THE LAW
11 APPLICABLE TO, THE SECOND PRECEDING TAXABLE YEAR, IF A REPORT
12 SHOWING A LIABILITY FOR TAX WAS FILED BY THE CORPORATION FOR THE
13 SECOND PRECEDING TAXABLE YEAR AND SUCH SECOND PRECEDING YEAR WAS
14 A TAXABLE YEAR OF TWELVE MONTHS: PROVIDED, HOWEVER, THAT IF THE
15 SETTLED TAX FOR THE SECOND PRECEDING YEAR EXCEEDS THE TAX SHOWN
16 ON SUCH REPORT BY TEN PER CENT OR MORE, THE SETTLED TAX ADJUSTED
17 TO REFLECT THE CURRENT TAX RATE SHALL BE USED FOR PURPOSES OF
18 THIS SUBSECTION, EXCEPT THAT IF SUCH SETTLED TAX IS SUBSEQUENTLY
19 RESETTLED, THE AMOUNT OF TAX AS RESETTLED SHALL BE UTILIZED IN
20 THE APPLICATION OF THIS SUBSECTION WITHOUT THE NECESSITY OF THE
21 FILING OF ANY PETITION BY THE DEPARTMENT OR BY THE CORPORATION.
22 IN THE EVENT THAT THE SETTLED OR RESETTLED TAX FOR THE SECOND
23 PRECEDING YEAR EXCEEDS THE TAX SHOWN ON THE REPORT BY TEN PER
24 CENT OR MORE, ADDITIONAL TAX RESULTING FROM THE UTILIZATION OF
25 SUCH SETTLED OR RESETTLED TAX IN THE APPLICATION OF THE
26 PROVISIONS OF THIS SUBSECTION SHALL NOT BE IMPOSED IF, WITHIN
27 FORTY-FIVE DAYS OF THE MAILING DATE OF SUCH SETTLEMENT OR
28 RESETTLEMENT, PAYMENTS ARE MADE SUCH THAT THE TOTAL AMOUNT OF
29 ALL INSTALLMENTS OF ESTIMATED TAX EQUALS OR EXCEEDS THE AMOUNT
30 WHICH WOULD HAVE BEEN REQUIRED TO BE PAID ON OR BEFORE SUCH DATE
19850H1330B1711 - 17 -
1 IF THE ESTIMATED TAX WERE AN AMOUNT EQUAL TO SUCH SETTLED OR
2 RESETTLED TAX ADJUSTED TO REFLECT THE CURRENT TAX RATE. IN ANY
3 CASE IN WHICH THE TAXABLE YEAR FOR WHICH AN UNDERPAYMENT OF
4 ESTIMATED TAX MAY EXIST IS A SHORT TAXABLE YEAR, IN DETERMINING
5 THE TAX SHOWN ON THE REPORT FOR THE SECOND PRECEDING TAXABLE
6 YEAR OR THE TAX FILING DETERMINED TO BE DUE FOR THE SECOND
7 PRECEDING TAXABLE YEAR, THE TAX WILL BE REDUCED BY MULTIPLYING
8 IT BY THE NUMBER OF MONTHS IN THE SHORT TAXABLE YEAR AND
9 DIVIDING THE RESULTING AMOUNT BY TWELVE.
10 SECTION 3003.4. INTEREST ON ADDITIONAL TAX.--ADDITIONAL TAX
11 IMPOSED AS A RESULT OF UNDERPAYMENTS OF INSTALLMENTS OF
12 ESTIMATED TAX SHALL NOT BEAR INTEREST DURING THE PERIOD OF SUCH
13 UNDERPAYMENT. HOWEVER, ANY AMOUNT OF ADDITIONAL TAX FINALLY
14 DETERMINED TO BE DUE, WHICH IS NOT PAID BY THE DATE THE ANNUAL
15 REPORT IS DUE (DETERMINED WITHOUT REGARD TO ANY EXTENSION OF
16 TIME FOR FILING), SHALL BEAR INTEREST FROM SUCH DATE UNTIL PAID.
17 SECTION 8. SECTION 503(A)(4) OF THE ACT OF APRIL 9, 1929
18 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE, IS REPEALED.
19 SECTION 9. (A) SECTION 2, SECTION 7 (SECTION 3003.1) AND
20 SECTION 8 SHALL APPLY RETROACTIVELY TO TAXES DUE, PAID OR
21 SETTLED ON OR AFTER JANUARY 1, 1985.
22 (B) SECTIONS 4, 5, 6 AND 7 (SECTIONS 3003.2 THROUGH 3003.4)
23 SHALL APPLY TO TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 1986.
24 (C) THE REMAINDER OF THIS ACT SHALL APPLY IMMEDIATELY.
25 SECTION 10. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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