PRIOR PRINTER'S NO. 204 PRINTER'S NO. 414
No. 185 Session of 1989
INTRODUCED BY BROUJOS, WAMBACH, NAILOR, COLAFELLA, MORRIS,
JOSEPHS, JAROLIN, BOYES, NOYE, McVERRY, WILLIAMS, JACKSON,
COY, BELFANTI, BATTISTO, FREEMAN, MRKONIC, COLE, CALTAGIRONE,
HALUSKA, TRELLO, DeWEESE, KASUNIC, CARLSON, SAURMAN, NAHILL,
PERZEL, E. Z. TAYLOR, MICHLOVIC, VAN HORNE, RITTER, KOSINSKI,
FOX, DORR, DIETTERICK, HAGARTY, SCHEETZ, HESS, FARMER,
GODSHALL, MAINE, MAIALE, PISTELLA, VEON, COLAIZZO AND
BELARDI, JANUARY 31, 1989
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, FEBRUARY 8, 1989
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," providing that payments to foster parents for the
11 care of foster children shall be excluded from income taxed
12 as compensation.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 SECTION 1. Section 303(a)(1) of the act of March 4, 1971 <--
16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
17 March 13, 1974 (P.L.179, No.32), is amended to read:
18 Section 303. Classes of Income.--(a) The classes of income
19 referred to above are as follows:
1 (1) Compensation. All salaries, wages, commissions, bonuses
2 and incentive payments whether based on profits or otherwise,
3 fees, tips and similar remuneration received for services
4 rendered whether directly or through an agent and whether in
5 cash or in property except income derived from the United States
6 Government for active duty outside the Commonwealth of
7 Pennsylvania as a member of its armed forces. Notwithstanding
8 the foregoing, payments to foster parents for the care of foster <--
9 children shall be excluded from income taxed as compensation. BY <--
10 AN AGENCY OF THE COMMONWEALTH OR A POLITICAL SUBDIVISION
11 THEREOF, OR AN ORGANIZATION EXEMPT FROM FEDERAL TAX UNDER
12 SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1954 (68A
13 STAT. 3, 26 U.S.C. § 501(C)(3)) WHICH IS LICENSED BY THE
14 COMMONWEALTH OR A POLITICAL SUBDIVISION THEREOF AS A PLACEMENT
15 AGENCY, TO A FOSTER PARENT FOR IN-HOME CARE OF FOSTER CHILDREN
16 SHALL BE EXCLUDED FROM INCOME TAXED AS COMPENSATION TO THE SAME
17 EXTENT AS QUALIFIED FOSTER CARE PAYMENTS ARE EXEMPT FROM FEDERAL
18 TAX UNDER THE INTERNAL REVENUE CODE.
19 * * *
20 Section 2. This act shall be retroactive to January 1, 1988.
21 Section 3. This act shall take effect immediately.
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