PRINTER'S NO. 4137
No. 3010 Session of 1994
INTRODUCED BY MIHALICH, CLYMER, KUKOVICH, M. N. WRIGHT,
MARKOSEK, NAILOR, TIGUE, STERN, OLASZ, SATHER, M. COHEN,
WOGAN, MUNDY, L. I. COHEN, TRELLO, O'BRIEN, PESCI, FICHTER,
JOSEPHS, CORRIGAN, LEH, McGEEHAN, YANDRISEVITS, GORDNER,
HALUSKA, TANGRETTI, LEDERER, CORNELL, MAYERNIK, FAJT, STURLA,
TRICH, MANDERINO, KAISER, VAN HORNE, PRESTON, DeLUCA,
GIGLIOTTI, MERRY, PETRARCA AND BELFANTI, SEPTEMBER 27, 1994
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 27, 1994
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 "compensation" for purposes of
11 personal income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 301(d) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
16 9, 1972 (P.L.273, No.66), is amended to read:
17 Section 301. Definitions.--The following words, terms and
18 phrases when used in this article shall have the meaning
19 ascribed to them in this section except where the context
20 clearly indicates a different meaning. Any reference in this
1 article to the Internal Revenue Code shall include the Internal
2 Revenue Code of 1954, as amended to the date on which this
3 article is effective:
4 * * *
5 (d) "Compensation" means and shall include salaries, wages,
6 commissions, bonuses and incentive payments whether based on
7 profits or otherwise, fees, tips and similar remuneration
8 received for services rendered, whether directly or through an
9 agent, and whether in cash or in property.
10 The term "compensation" shall not mean or include: (i)
11 periodic payments for sickness and disability other than regular
12 wages received during a period of sickness or disability; or
13 (ii) disability, retirement or other payments arising under
14 workmen's compensation acts, occupational disease acts and
15 similar legislation by any government; or (iii) payments
16 commonly recognized as old age or retirement benefits paid to
17 persons retired from service after reaching a specific age or
18 after a stated period of employment; or (iv) payments commonly
19 known as public assistance, or unemployment compensation
20 payments by any governmental agency; or (v) payments to
21 reimburse actual expenses; or (vi) payments made by employers or
22 labor unions for programs covering hospitalization, sickness,
23 disability or death, supplemental unemployment benefits, strike
24 benefits, social security and retirement; or (vii) any
25 compensation received by United States servicemen serving in a
26 combat zone; or (viii) per diem payments made to election
27 precinct officials for services rendered on election day.
28 * * *
29 Section 2. This act shall apply to taxable years beginning
30 after December 31, 1994.
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1 Section 3. This act shall take effect immediately.
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