SENATE AMENDED
PRIOR PRINTER'S NOS. 351, 558, 1071, PRINTER'S NO. 2375
2222
No. 334 Session of 2001
INTRODUCED BY BOYES, CORRIGAN, SEMMEL, ARMSTRONG, M. BAKER,
BARRAR, BELARDI, BENNINGHOFF, BLAUM, CALTAGIRONE,
CAPPABIANCA, CAPPELLI, CAWLEY, CLYMER, M. COHEN, COSTA, COY,
CRUZ, DeLUCA, DeWEESE, EACHUS, FAIRCHILD, FRANKEL, GEIST,
GEORGE, GODSHALL, GORDNER, GRUCELA, HENNESSEY, HERMAN,
HERSHEY, JOSEPHS, KAISER, KENNEY, LAUGHLIN, LESCOVITZ,
MANDERINO, MANN, McILHATTAN, McNAUGHTON, MELIO, MICHLOVIC,
R. MILLER, MUNDY, NAILOR, ORIE, PETRARCA, PRESTON, READSHAW,
ROBINSON, RUBLEY, SAINATO, SANTONI, SAYLOR, SCRIMENTI,
SHANER, STABACK, E. Z. TAYLOR, THOMAS, TIGUE, TRELLO,
WANSACZ, YOUNGBLOOD, ZUG, ADOLPH, WILT, C. WILLIAMS, PIPPY,
JAMES, HARHAI AND MAHER, JANUARY 31, 2001
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 21, 2001
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 PROVIDING FOR SPECIAL TAX PROVISIONS FOR <--
11 POVERTY; AND making an editorial change relating to the name
12 of the Organ Donation Awareness Trust Fund. and making an <--
13 appropriation. FURTHER PROVIDING FOR SALES AND USE TAX <--
14 DEFINITIONS, EXCLUSIONS AND REFUNDS; PROVIDING FOR LOCAL
15 SALES TAX SITUS FOR CONSTRUCTION MATERIALS; REVISING AND
16 ADDING PERSONAL INCOME TAX PROVISIONS ON DEFINITIONS, SPECIAL
17 PROVISIONS FOR POVERTY, PARTNERSHIPS, ASSOCIATIONS AND
18 BUSINESS ENTITIES; MAKING AN EDITORIAL CHANGE RELATING TO THE
19 NAME OF THE ORGAN DONATION AWARENESS TRUST FUND; FURTHER
20 PROVIDING FOR CORPORATE NET INCOME TAX DEFINITIONS AND
21 RESETTLEMENTS; FURTHER PROVIDING FOR CAPITAL STOCK FRANCHISE
22 DEFINITIONS; FURTHER PROVIDING FOR ADMINISTRATION AND
1 ENFORCEMENT OF THE BANK AND TRUST COMPANY SHARES TAX;
2 ELIMINATING THE ALTERNATIVE BANK AND TRUST COMPANY SHARES
3 TAX; ELIMINATING THE ALTERNATIVE TITLE INSURANCE COMPANIES
4 SHARES TAX; FURTHER PROVIDING FOR INSURANCE PREMIUMS TAX
5 CREDITS FOR ASSESSMENTS; ELIMINATING THE EXCISE TAX ON
6 FOREIGN CORPORATIONS; FURTHER PROVIDING FOR CIGARETTE TAX
7 ENFORCEMENT AND SANCTIONS; FURTHER PROVIDING FOR SETTLEMENT
8 AND RESETTLEMENT OF THE MUTUAL THRIFT INSTITUTIONS TAX;
9 PROVIDING FOR A TAX CREDIT FOR NEW JOBS; ELIMINATING OBSOLETE
10 TAX CREDIT PROVISIONS; AND MAKING REPEALS.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 315.4 of the act of March 4, 1971 (P.L.6, <--
14 No.2), known as the Tax Reform Code of 1971, added May 7, 1997
15 (P.L.85, No.7), is amended to read:
16 SECTION 1. SECTION 304(D)(1) OF THE ACT OF MARCH 4, 1971 <--
17 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AMENDED MAY
18 24, 2000 (P.L.106, NO.23), IS AMENDED TO READ:
19 SECTION 1. SECTION 201(D)(8) OF THE ACT OF MARCH 4, 1971 <--
20 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, AMENDED MAY
21 7, 1997 (P.L.85, NO.7), IS AMENDED AND THE CLAUSE IS AMENDED BY
22 ADDING A SUBCLAUSE TO READ:
23 SECTION 201. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
24 PHRASES WHEN USED IN THIS ARTICLE II SHALL HAVE THE MEANING
25 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
26 CLEARLY INDICATES A DIFFERENT MEANING:
27 * * *
28 (D) "PROCESSING." THE PERFORMANCE OF THE FOLLOWING
29 ACTIVITIES WHEN ENGAGED IN AS A BUSINESS ENTERPRISE:
30 * * *
31 (8) THE OPERATION OF A SAW MILL OR PLANING MILL FOR THE
32 PRODUCTION OF LUMBER OR LUMBER PRODUCTS FOR SALE. THE OPERATION
33 OF A SAW MILL OR PLANING MILL BEGINS WITH THE UNLOADING, BY THE
34 OPERATOR OF THE SAW MILL OR PLANING MILL, OF LOGS, TIMBER,
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1 PULPWOOD OR OTHER FORMS OF WOOD MATERIAL, TO BE USED IN THE SAW
2 MILL OR PLANING MILL.
3 * * *
4 (16) THE PRODUCTION, PROCESSING AND PACKAGING OF ICE FOR
5 WHOLESALE DISTRIBUTION.
6 SECTION 2. SECTION 204(44) AND (58) OF THE ACT, ADDED
7 DECEMBER 23, 1983 (P.L.370, NO.90) AND MAY 24, 2000 (P.L.106,
8 NO.23), ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A
9 CLAUSE TO READ:
10 SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY
11 SECTION 202 SHALL NOT BE IMPOSED UPON
12 * * *
13 (44) THE SALE AT RETAIL OR USE OF FIREWOOD. FOR THE PURPOSE
14 OF THIS CLAUSE, FIREWOOD SHALL MEAN THE PRODUCT OF TREES WHEN
15 SEVERED FROM THE LAND AND CUT INTO PROPER LENGTHS FOR BURNING
16 AND PELLETS MADE FROM PURE WOOD SAWDUST, IF USED FOR FUEL FOR
17 COOKING, HOT WATER PRODUCTION OR TO HEAT RESIDENTIAL DWELLINGS.
18 * * *
19 (58) THE SALE AT RETAIL OR USE OF A PERSONAL COMPUTER [TO AN
20 INDIVIDUAL PURCHASER], A PERIPHERAL DEVICE OR AN INTERNET ACCESS
21 DEVICE, OR A SERVICE CONTRACT OR SINGLE-USER LICENSED SOFTWARE
22 PURCHASED IN CONJUNCTION WITH A PERSONAL COMPUTER, PERIPHERAL
23 DEVICE OR INTERNET ACCESS DEVICE DURING THE EXCLUSION PERIOD BY
24 AN INDIVIDUAL PURCHASER FOR NONBUSINESS USE[, BUT NOT INCLUDING
25 COMPUTER LEASING, RENTAL, REPAIR OR ALTERATION]. THE EXCLUSION
26 DOES NOT INCLUDE A SALE AT RETAIL OR USE OF: LEASING, RENTAL OR
27 REPAIR OF A PERSONAL COMPUTER, PERIPHERAL DEVICE OR INTERNET
28 ACCESS DEVICE; MAINFRAME COMPUTERS; NETWORK SERVERS; LOCAL AREA
29 NETWORK HUBS; ROUTERS AND NETWORK CABLING; NETWORK OPERATING
30 SYSTEMS; MULTIPLE-USER LICENSED SOFTWARE; MINICOMPUTERS; HAND-
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1 HELD COMPUTERS; PERSONAL DIGITAL ASSISTANTS WITHOUT INTERNET
2 ACCESS; HARDWARE WORD PROCESSORS; GRAPHICAL CALCULATORS; VIDEO
3 GAME CONSOLES; TELEPHONES; DIGITAL CAMERAS; PAGERS; COMPACT
4 DISCS ENCODED WITH MUSIC OR MOVIES; AND DIGITAL VERSATILE DISCS
5 ENCODED WITH MUSIC OR MOVIES. FOR PURPOSES OF THIS CLAUSE, THE
6 PHRASE "EXCLUSION PERIOD" MEANS THE PERIOD OF TIME FROM AUGUST
7 [6, 2000] 5, 2001, TO AND INCLUDING AUGUST [13, 2000] 12, 2001,
8 AND FROM FEBRUARY [18, 2001] 17, 2002, TO AND INCLUDING FEBRUARY
9 [25, 2001] 24, 2002. [FOR PURPOSES OF THIS CLAUSE, THE PHRASE
10 "PERSONAL COMPUTER" MEANS A LAPTOP, DESKTOP, OR TOWER COMPUTER
11 SYSTEM, INCLUDING ALL COMPUTER HARDWARE AND SOFTWARE SOLD
12 TOGETHER IN THE SAME SALE AT RETAIL, WHERE THE COMPUTER SYSTEM
13 INCLUDES, AT A MINIMUM, A CENTRAL PROCESSING UNIT, RANDOM ACCESS
14 MEMORY, A STORAGE DRIVE, A DISPLAY MONITOR AND A KEYBOARD,
15 EXCEPT THAT THE TERM SHALL NOT INCLUDE MINICOMPUTERS, MAINFRAME
16 COMPUTERS, NETWORK SERVERS, LOCAL AREA NETWORK HUBS, ROUTERS AND
17 CABLING, HARDWARE WORD PROCESSORS, PERSONAL DIGITAL ASSISTANTS,
18 GRAPHICAL CALCULATORS, HAND-HELD COMPUTERS, GAME CONSOLES,
19 INTERNET TV DEVICES, NETWORK OPERATING SYSTEMS, MULTIPLE-USER
20 LICENSED SOFTWARE AND HARDWARE, SEPARATE SALES AT RETAIL OR USE
21 OF INTERNAL OR EXTERNAL COMPONENTS AND SEPARATE SALES OF ADD-ON
22 COMPONENTS.] FOR PURPOSES OF THIS CLAUSE, "PURCHASER" MEANS AN
23 INDIVIDUAL WHO PLACES AN ORDER AND PAYS THE PURCHASE PRICE [AND
24 TAKES DELIVERY] BY CASH OR CREDIT DURING THE EXCLUSION PERIOD
25 [OR WHO PLACES AN ORDER AND PAYS THE PURCHASE PRICE] EVEN IF
26 DELIVERY TAKES PLACE AFTER THE EXCLUSION PERIOD.
27 * * *
28 (61) THE SALE AT RETAIL TO OR USE OF FOOD AND NONALCOHOLIC
29 BEVERAGES BY AN AIRLINE WHICH WILL TRANSFER THE FOOD OR
30 NONALCOHOLIC BEVERAGES TO PASSENGERS IN CONNECTION WITH THE
20010H0334B2375 - 4 -
1 RENDERING OF THE AIRLINE SERVICE.
2 SECTION 3. SECTION 247.1 OF THE ACT, AMENDED OR ADDED MAY
3 12, 1999 (P.L.26, NO.4) AND MAY 24, 2000 (P.L.106, NO.23), IS
4 AMENDED TO READ:
5 SECTION 247.1. [PARTIAL] REFUND OF SALES TAX ATTRIBUTED TO
6 BAD DEBT.--(A) A VENDOR MAY FILE A PETITION FOR REFUND OF SALES
7 TAX PAID TO THE DEPARTMENT THAT IS ATTRIBUTED TO A BAD DEBT IF
8 ALL OF THE FOLLOWING APPLY:
9 (1) THE PURCHASER FAILS TO PAY THE VENDOR THE TOTAL PURCHASE
10 PRICE.
11 (2) THE PURCHASE PRICE IS WRITTEN OFF, EITHER IN WHOLE OR IN
12 PART, AS A BAD DEBT ON THE VENDOR'S BOOKS AND RECORDS.
13 (3) THE BAD DEBT HAS BEEN DEDUCTED FOR FEDERAL INCOME TAX
14 PURPOSES UNDER SECTION 166 OF THE INTERNAL REVENUE CODE OF 1986
15 (PUBLIC LAW 99-514, 26 U.S.C. § 166).
16 THE PETITION SHALL BE FILED WITH THE DEPARTMENT WITHIN THE TIME
17 LIMITATIONS PRESCRIBED BY SECTION 3003.1 OF THIS ACT.
18 (B) THE REFUND AUTHORIZED BY THIS SECTION SHALL BE LIMITED
19 TO [TWO-THIRDS OF] THE SALES TAX PAID TO THE DEPARTMENT THAT IS
20 ATTRIBUTED TO THE BAD DEBT, LESS [TWO-THIRDS OF] ANY DISCOUNT
21 UNDER SECTION 227 OF THIS ACT. PARTIAL PAYMENTS BY THE PURCHASER
22 TO THE VENDOR SHALL BE PRORATED BETWEEN THE ORIGINAL PURCHASE
23 PRICE AND THE SALES TAX DUE ON THE SALE. PAYMENTS MADE TO A
24 VENDOR ON ANY TRANSACTION WHICH INCLUDES BOTH TAXABLE AND
25 NONTAXABLE COMPONENTS SHALL BE ALLOCATED PROPORTIONALLY BETWEEN
26 THE TAXABLE AND NONTAXABLE COMPONENTS.
27 (C) A VENDOR MAY ASSIGN ITS RIGHT TO PETITION AND RECEIVE A
28 REFUND OF SALES TAX ATTRIBUTED TO A BAD DEBT TO AN AFFILIATED
29 ENTITY. A VENDOR MAY NOT ASSIGN ITS RIGHT TO PETITION AND
30 RECEIVE A REFUND OF SALES TAX ATTRIBUTED TO A BAD DEBT TO ANY
20010H0334B2375 - 5 -
1 OTHER PERSON.
2 (D) NO REFUND SHALL BE GRANTED UNDER THIS SECTION FOR ANY OF
3 THE FOLLOWING:
4 (I) INTEREST.
5 (II) FINANCE CHARGES.
6 (III) EXPENSES INCURRED IN ATTEMPTING TO COLLECT ANY AMOUNT
7 RECEIVABLE.
8 (E) THE DOCUMENTATION, PROCEDURES AND METHODS FOR CLAIMING
9 AND CALCULATING THE REFUND ALLOWED UNDER THIS SECTION SHALL BE
10 IN SUCH FORM AS THE DEPARTMENT MAY PRESCRIBE.
11 (F) IF THE PURCHASE PRICE THAT IS ATTRIBUTED TO A PRIOR BAD
12 DEBT REFUND IS THEREAFTER COLLECTED, IN WHOLE OR IN PART, THE
13 VENDOR OR AFFILIATED ENTITY SHALL REMIT THE PROPORTIONAL TAX TO
14 THE DEPARTMENT WITH THE FIRST RETURN FILED AFTER THE COLLECTION.
15 (G) NOTWITHSTANDING THE PROVISIONS OF SECTION 806.1 OF THE
16 ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL
17 CODE," NO INTEREST SHALL BE PAID BY THE COMMONWEALTH ON REFUNDS
18 OF SALES TAX ATTRIBUTED TO BAD DEBT UNDER THIS SECTION.
19 (H) NO REFUND OR CREDIT OF SALES TAX SHALL BE MADE FOR ANY
20 UNCOLLECTED PURCHASE PRICE OR BAD DEBT EXCEPT AS AUTHORIZED BY
21 THIS SECTION. NO DEDUCTION OR CREDIT FOR BAD DEBT MAY BE TAKEN
22 ON ANY RETURN FILED WITH THE DEPARTMENT. THIS SECTION SHALL
23 PROVIDE THE EXCLUSIVE PROCEDURE FOR CLAIMING A REFUND OR CREDIT
24 OF SALES TAX ATTRIBUTED TO UNCOLLECTED PURCHASE PRICE OR BAD
25 DEBT.
26 (I) FOR PURPOSES OF THIS SECTION, THE TERM "AFFILIATED
27 ENTITY" SHALL MEAN ANY CORPORATION THAT IS PART OF THE SAME
28 AFFILIATED GROUP AS THE VENDOR AS DEFINED BY SECTION 1504(A)(1)
29 OF THE INTERNAL REVENUE CODE OF 1986.
30 SECTION 4. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
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1 SECTION 202-A. SITUS FOR CERTAIN CONSTRUCTION MATERIALS.--
2 (A) NOTWITHSTANDING THE PROVISIONS OF SECTION 504 OF THE ACT OF
3 JUNE 5, 1991 (P.L.9, NO.6), KNOWN AS THE "PENNSYLVANIA
4 INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
5 FIRST CLASS," THE SALE OR USE OF ROAD CONSTRUCTION MATERIAL,
6 INCLUDING RECYCLED ASPHALT, RECYCLED CONCRETE, ASPHALT, CONCRETE
7 AND ROAD AGGREGATES, SHALL BE DEEMED TO HAVE BEEN CONSUMMATED AT
8 THE LOCATION OF ITS FINAL DESTINATION. FINAL DESTINATION WILL BE
9 DETERMINED BY REFERENCE TO DELIVERY OR SHIPPING DOCUMENTS
10 RELATING TO SUCH SALES.
11 (B) THIS SECTION SHALL APPLY TO TAXES LEVIED UNDER CHAPTER 5
12 OF THE "PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT
13 FOR CITIES OF THE FIRST CLASS." THIS SECTION SHALL NOT APPLY TO
14 TAXES LEVIED UNDER ARTICLE XXXI-B OF THE ACT OF JULY 28, 1953
15 (P.L.723, NO.230), KNOWN AS THE "SECOND CLASS COUNTY CODE."
16 SECTION 5. SECTION 301(B) OF THE ACT, ADDED AUGUST 31, 1971
17 (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. UNLESS SPECIFICALLY
22 PROVIDED OTHERWISE, ANY REFERENCE IN THIS ARTICLE TO THE
23 INTERNAL REVENUE CODE SHALL INCLUDE THE INTERNAL REVENUE CODE OF
24 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1 ET SEQ.), AS AMENDED TO
25 JANUARY 1, 1997:
26 * * *
27 (B) "ASSOCIATION" MEANS ANY FORM OF UNINCORPORATED
28 ENTERPRISE [OTHER THAN A PARTNERSHIP.] WHICH:
29 (1) IS SUBJECT TO THE TAX IMPOSED UNDER ARTICLE IV; OR
30 (2) IS REQUIRED TO MAKE A RETURN UNDER SECTION 6042 OF THE
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1 INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §
2 6042).
3 THE TERM SHALL NOT INCLUDE A PARTNERSHIP OR INVESTMENT COMPANY.
4 * * *
5 SECTION 6. SECTION 304(D)(1) OF THE ACT, AMENDED MAY 24,
6 2000 (P.L.106, NO.23), IS AMENDED TO READ:
7 SECTION 304. SPECIAL TAX PROVISIONS FOR POVERTY.--* * *
8 (D) ANY CLAIM FOR SPECIAL TAX PROVISIONS HEREUNDER SHALL BE
9 DETERMINED IN ACCORDANCE WITH THE FOLLOWING:
10 (1) IF THE POVERTY INCOME OF THE CLAIMANT DURING AN ENTIRE
11 TAXABLE YEAR IS SIX THOUSAND FIVE HUNDRED DOLLARS ($6,500) OR
12 LESS, OR, IN THE CASE OF A MARRIED CLAIMANT, IF THE JOINT
13 POVERTY INCOME OF THE CLAIMANT AND THE CLAIMANT'S SPOUSE DURING
14 AN ENTIRE TAXABLE YEAR IS THIRTEEN THOUSAND DOLLARS ($13,000) OR
15 LESS, THE CLAIMANT SHALL BE ENTITLED TO A REFUND OR FORGIVENESS
16 OF ANY MONEYS WHICH HAVE BEEN PAID OVER TO (OR WOULD EXCEPT FOR
17 THE PROVISIONS OF THIS ACT BE PAYABLE TO) THE COMMONWEALTH UNDER
18 THE PROVISIONS OF THIS ARTICLE, WITH AN ADDITIONAL INCOME
19 ALLOWANCE OF [SEVEN THOUSAND FIVE HUNDRED DOLLARS ($7,500)]
20 EIGHT THOUSAND FIVE HUNDRED DOLLARS ($8,500) FOR EACH DEPENDENT
21 OF THE CLAIMANT. FOR PURPOSES OF THIS SUBSECTION, A CLAIMANT
22 SHALL NOT BE CONSIDERED TO BE MARRIED IF:
23 (I) THE CLAIMANT AND THE CLAIMANT'S SPOUSE FILE SEPARATE
24 RETURNS; AND
25 (II) THE CLAIMANT AND THE CLAIMANT'S SPOUSE LIVE APART AT
26 ALL TIMES DURING THE LAST SIX MONTHS OF THE TAXABLE YEAR OR ARE
27 SEPARATED PURSUANT TO A WRITTEN SEPARATION AGREEMENT.
28 * * *
29 SECTION 2. SECTION 315.4 OF THE ACT, ADDED MAY 7, 1997 <--
30 (P.L.85, NO.7), IS AMENDED TO READ:
20010H0334B2375 - 8 -
1 SECTION 7. THE HEADING OF PART IV OF ARTICLE III OF THE ACT, <--
2 ADDED AUGUST 31, 1971 (P.L.362, NO.93), IS AMENDED TO READ:
3 PART IV
4 PARTNERSHIPS [AND ASSOCIATIONS]
5 SECTION 8. SECTION 306 OF THE ACT, ADDED AUGUST 31, 1971
6 (P.L.362, NO.93), IS AMENDED TO READ:
7 SECTION 306. TAXABILITY OF [MEMBERS] PARTNERS.--A
8 PARTNERSHIP [OR ASSOCIATION] AS [SUCH] AN ENTITY SHALL NOT BE
9 SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE, BUT THE INCOME OR
10 GAIN OF A MEMBER OF A PARTNERSHIP [OR ASSOCIATION] IN RESPECT OF
11 SAID PARTNERSHIP [OR ASSOCIATION] SHALL BE SUBJECT TO THE TAX
12 AND THE TAX SHALL BE IMPOSED ON HIS SHARE, WHETHER OR NOT
13 DISTRIBUTED, OF THE INCOME OR GAIN RECEIVED BY THE PARTNERSHIP
14 [OR ASSOCIATION] FOR ITS TAXABLE YEAR ENDING WITHIN OR WITH THE
15 [PARTNER'S OR] MEMBER'S TAXABLE YEAR.
16 SECTION 9. ARTICLE III OF THE ACT IS AMENDED BY ADDING A
17 PART TO READ:
18 PART IV-B
19 OTHER ENTITIES
20 SECTION 307.21. TREATMENT OF UNINCORPORATED ENTITIES WITH
21 SINGLE OWNERS.--UNLESS SUBJECT TO TAX UNDER ARTICLE IV, AN
22 UNINCORPORATED ENTITY THAT HAS A SINGLE OWNER SHALL BE
23 DISREGARDED AS AN ENTITY SEPARATE FROM ITS OWNER.
24 SECTION 10. SECTIONS 315.4 AND 324 OF THE ACT, AMENDED OR
25 ADDED MAY 7, 1997 (P.L.85, NO.7), ARE AMENDED TO READ:
26 Section 315.4. Contributions for Organ and Tissue Donation
27 Awareness.--(a) The department shall provide a space on the
28 Pennsylvania individual income tax return form whereby an
29 individual may voluntarily designate a contribution of any
30 amount desired to the Governor Robert P. Casey Memorial Organ
20010H0334B2375 - 9 -
1 and Tissue Donation Awareness Trust Fund established under 20
2 Pa.C.S. § 8622 (relating to the Governor Robert P. Casey
3 Memorial Organ and Tissue Donation Awareness Trust Fund).
4 (b) The amount so designated by an individual on the
5 Pennsylvania individual income tax return form shall be deducted
6 from the tax refund to which the individual is entitled and
7 shall not constitute a charge against the income tax revenues
8 due the Commonwealth.
9 (c) The department shall annually determine the total amount
10 designated pursuant to this section and shall report that amount
11 to the State Treasurer who shall transfer that amount to the
12 Governor Robert P. Casey Memorial Organ and Tissue Donation
13 Awareness Trust Fund.
14 (d) The department shall, in all taxable years following the
15 effective date of this section, provide on its forms or in its
16 instructions which accompany Pennsylvania individual income tax
17 return forms adequate information concerning the Governor Robert
18 P. Casey Memorial Organ and Tissue Donation Awareness Trust Fund
19 which shall include the listing of an address furnished to it by
20 the Organ Donation Advisory Committee to which contributions may
21 be sent by those taxpayers wishing to contribute to the fund but
22 who do not receive refunds.
23 (e) This section shall apply to taxable years beginning on
24 or after January 1, 1997.
25 SECTION 324. GENERAL RULE.--(A) WHEN A PARTNERSHIP[, <--
26 ASSOCIATION] OR PENNSYLVANIA S CORPORATION RECEIVES INCOME FROM
27 SOURCES WITHIN THIS COMMONWEALTH FOR ANY TAXABLE YEAR AND ANY
28 PORTION OF [SUCH] THE INCOME IS ALLOCABLE TO A NONRESIDENT
29 PARTNER, MEMBER OR SHAREHOLDER THEREOF, [SUCH] THE PARTNERSHIP[,
30 ASSOCIATION] OR PENNSYLVANIA S CORPORATION SHALL PAY A
20010H0334B2375 - 10 -
1 WITHHOLDING TAX UNDER THIS SECTION AT [SUCH] THE TIME AND IN
2 [SUCH] THE MANNER [AS] PRESCRIBED BY THE DEPARTMENT [SHALL
3 PRESCRIBE]; HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION OF THIS
4 ARTICLE, ALL SUCH WITHHOLDING TAX SHALL BE PAID OVER ON OR
5 BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH FOLLOWING THE END
6 OF THE TAXABLE YEAR.
7 (B) THIS SECTION SHALL NOT APPLY TO ANY PUBLICLY TRADED
8 PARTNERSHIP AS DEFINED UNDER SECTION 7704 OF THE INTERNAL
9 REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 7704) WITH
10 EQUITY SECURITIES REGISTERED WITH THE SECURITIES AND EXCHANGE
11 COMMISSION UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF
12 1934 (48 STAT. 881, 15 U.S.C. § 78A).
13 Section 2. The sum of $500,000 is hereby appropriated from <--
14 the General Fund and shall be transferred to the Governor Robert
15 P. Casey Memorial Organ and Tissue Donation Awareness Trust Fund
16 to reimburse the Governor Robert P. Casey Memorial Organ and
17 Tissue Donation Awareness Trust Fund for moneys transferred to
18 the Department of Transportation for administrative costs to
19 provide an applicant for a renewal vehicle registration with the
20 opportunity to make a contribution of $1 to the Governor Robert
21 P. Casey Memorial Organ and Tissue Donation Awareness Trust
22 Fund.
23 Section 3. This act shall take effect immediately.
24 SECTION 3. THE AMENDMENT OF SECTION 304 OF THE ACT SHALL <--
25 APPLY TO TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 2000.
26 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
27 SECTION 11. SECTION 401(1) AND (3)2(A)(1)(A) AND (D) OF THE
28 ACT, AMENDED MAY 12, 1999 (P.L.26, NO.4), ARE AMENDED TO READ:
29 SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
30 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING
20010H0334B2375 - 11 -
1 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
2 CLEARLY INDICATES A DIFFERENT MEANING:
3 (1) "CORPORATION." ANY OF THE FOLLOWING:
4 (I) A CORPORATION[,].
5 (II) A JOINT-STOCK ASSOCIATION[, OR A].
6 (III) A BUSINESS TRUST [OR A], LIMITED LIABILITY COMPANY[,
7 THAT] OR OTHER ENTITY, WHICH FOR FEDERAL INCOME TAX PURPOSES IS
8 CLASSIFIED AS A CORPORATION[, AND (I) IS DOING BUSINESS IN THIS
9 COMMONWEALTH; OR (II) IS CARRYING ON ACTIVITIES IN THIS
10 COMMONWEALTH; (III) HAS CAPITAL OR PROPERTY EMPLOYED OR USED IN
11 THIS COMMONWEALTH; OR (IV) OWNS PROPERTY IN THIS COMMONWEALTH,
12 BY OR IN THE NAME OF ITSELF, OR ANY PERSON, PARTNERSHIP,
13 ASSOCIATION, LIMITED PARTNERSHIP, JOINT-STOCK ASSOCIATION OR
14 CORPORATION].
15 THE WORD "CORPORATION" SHALL NOT INCLUDE [BUILDING AND LOAN
16 ASSOCIATIONS, BANKS, BANK AND TRUST COMPANIES, NATIONAL BANKS,
17 SAVINGS INSTITUTIONS, TRUST COMPANIES, INSURANCE AND SURETY
18 COMPANIES] AN ENTITY SUBJECT TO TAXATION UNDER ARTICLE VII,
19 VIII, IX OR XV. THE WORD SHALL NOT INCLUDE:
20 1. [ANY DOMESTIC OR FOREIGN] A BUSINESS TRUST [THAT] WHICH
21 QUALIFIES AS A REAL ESTATE INVESTMENT TRUST UNDER SECTION 856 OF
22 THE INTERNAL REVENUE CODE OR WHICH IS A QUALIFIED REAL ESTATE
23 INVESTMENT TRUST SUBSIDIARY UNDER SECTION 856(I) OF THE INTERNAL
24 REVENUE CODE OR [ANY] A RELATED [DOMESTIC OR FOREIGN] BUSINESS
25 TRUST WHICH CONFINES ITS ACTIVITIES IN THIS COMMONWEALTH TO THE
26 MAINTENANCE, ADMINISTRATION AND MANAGEMENT OF INTANGIBLE
27 INVESTMENTS AND ACTIVITIES OF REAL ESTATE INVESTMENT TRUSTS OR
28 QUALIFIED REAL ESTATE INVESTMENT TRUST SUBSIDIARIES. A QUALIFIED
29 REAL ESTATE INVESTMENT TRUST SUBSIDIARY UNDER SECTION 856(I) OF
30 THE INTERNAL REVENUE CODE SHALL BE TREATED AS PART OF THE REAL
20010H0334B2375 - 12 -
1 ESTATE INVESTMENT TRUST [THAT] WHICH OWNS ALL OF THE STOCK OF
2 THE QUALIFIED REAL ESTATE INVESTMENT TRUST SUBSIDIARY.
3 2. [ANY DOMESTIC OR FOREIGN] A BUSINESS TRUST [THAT] WHICH
4 QUALIFIES AS A REGULATED INVESTMENT COMPANY UNDER SECTION 851 OF
5 THE INTERNAL REVENUE CODE AND WHICH IS REGISTERED WITH THE
6 UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE
7 INVESTMENT COMPANY ACT OF 1940 OR [ANY] A RELATED [DOMESTIC OR
8 FOREIGN] BUSINESS TRUST WHICH CONFINES ITS ACTIVITIES IN THIS
9 COMMONWEALTH TO THE MAINTENANCE, ADMINISTRATION AND MANAGEMENT
10 OF INTANGIBLE INVESTMENTS AND ACTIVITIES OF REGULATED INVESTMENT
11 COMPANIES.
12 3. [ANY] A CORPORATION, TRUST OR OTHER ENTITY [THAT] WHICH
13 IS AN EXEMPT ORGANIZATION AS DEFINED BY SECTION 501 OF THE
14 INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §
15 501).
16 4. [ANY] A CORPORATION, TRUST OR OTHER ENTITY ORGANIZED AS A
17 NOT-FOR-PROFIT UNDER THE LAWS OF THIS COMMONWEALTH OR THE LAWS
18 OF ANY OTHER STATE [THAT] WHICH:
19 (I) WOULD QUALIFY AS AN EXEMPT ORGANIZATION AS DEFINED BY
20 SECTION 501 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-
21 514, 26 U.S.C. § 501);
22 (II) WOULD QUALIFY AS A HOMEOWNERS ASSOCIATION AS DEFINED BY
23 SECTION 528(C) OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. §
24 528(C)); OR
25 (III) IS A MEMBERSHIP ORGANIZATION SUBJECT TO THE FEDERAL
26 LIMITATIONS ON DEDUCTIONS FROM TAXABLE INCOME UNDER SECTION 277
27 OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. § 277) BUT ONLY
28 IF NO PECUNIARY GAIN OR PROFIT INURES TO ANY MEMBER OR RELATED
29 ENTITY FROM THE MEMBERSHIP ORGANIZATION.
30 * * *
20010H0334B2375 - 13 -
1 (3) "TAXABLE INCOME." * * *
2 2. IN CASE THE ENTIRE BUSINESS OF ANY CORPORATION, OTHER
3 THAN A CORPORATION ENGAGED IN DOING BUSINESS AS A REGULATED
4 INVESTMENT COMPANY AS DEFINED BY THE INTERNAL REVENUE CODE OF
5 1954, AS AMENDED, IS NOT TRANSACTED WITHIN THIS COMMONWEALTH,
6 THE TAX IMPOSED BY THIS ARTICLE SHALL BE BASED UPON SUCH PORTION
7 OF THE TAXABLE INCOME OF SUCH CORPORATION FOR THE FISCAL OR
8 CALENDAR YEAR, AS DEFINED IN SUBCLAUSE 1 HEREOF, AND MAY BE
9 DETERMINED AS FOLLOWS:
10 (A) DIVISION OF INCOME.
11 (1) AS USED IN THIS DEFINITION, UNLESS THE CONTEXT OTHERWISE
12 REQUIRES:
13 (A) "BUSINESS INCOME" MEANS INCOME ARISING FROM TRANSACTIONS
14 AND ACTIVITY IN THE REGULAR COURSE OF THE TAXPAYER'S TRADE OR
15 BUSINESS AND INCLUDES INCOME FROM TANGIBLE AND INTANGIBLE
16 PROPERTY IF EITHER THE ACQUISITION, THE MANAGEMENT[, AND] OR THE
17 DISPOSITION OF THE PROPERTY [CONSTITUTE INTEGRAL PARTS]
18 CONSTITUTES AN INTEGRAL PART OF THE TAXPAYER'S REGULAR TRADE OR
19 BUSINESS OPERATIONS. THE TERM INCLUDES ALL INCOME WHICH IS
20 APPORTIONABLE UNDER THE CONSTITUTION OF THE UNITED STATES.
21 * * *
22 (D) "NONBUSINESS INCOME" MEANS ALL INCOME OTHER THAN
23 BUSINESS INCOME. THE TERM DOES NOT INCLUDE INCOME WHICH IS
24 APPORTIONABLE UNDER THE CONSTITUTION OF THE UNITED STATES.
25 * * *
26 SECTION 12. SECTION 407(E) OF THE ACT IS REPEALED.
27 SECTION 13. THE DEFINITIONS OF "CORPORATION," "DOMESTIC
28 ENTITY," "FOREIGN ENTITY" AND "PROCESSING" IN SECTION 601(A) OF
29 THE ACT, AMENDED OR ADDED APRIL 23, 1998 (P.L.239, NO.45), MAY
30 12, 1999 (P.L.26, NO.4) AND MAY 24, 2000 (P.L.106, NO.23), ARE
20010H0334B2375 - 14 -
1 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 "CORPORATION." INCLUDES THE FOLLOWING ENTITIES:
8 (1) A CORPORATION.
9 (2) A JOINT-STOCK ASSOCIATION.
10 (3) A BUSINESS TRUST.
11 (4) A LIMITED LIABILITY COMPANY OTHER THAN A RESTRICTED
12 PROFESSIONAL COMPANY SUBJECT TO 15 PA.C.S. CH. 89 SUBCH. L
13 (RELATING TO RESTRICTED PROFESSIONAL COMPANIES) THAT IS DEEMED
14 TO BE A LIMITED PARTNERSHIP PURSUANT TO 15 PA.C.S. § 8997
15 (RELATING TO TAXATION OF RESTRICTED PROFESSIONAL COMPANIES).
16 (5) AN ENTITY WHICH FOR FEDERAL INCOME TAX PURPOSES IS
17 CLASSIFIED AS A CORPORATION.
18 * * *
19 "DOMESTIC ENTITY." EVERY CORPORATION ORGANIZED OR
20 INCORPORATED BY OR UNDER ANY LAWS OF THE COMMONWEALTH, OTHER
21 THAN CORPORATIONS OF THE FIRST CLASS AND COOPERATIVE
22 AGRICULTURAL ASSOCIATIONS NOT HAVING CAPITAL STOCK AND NOT
23 CONDUCTED FOR PROFIT, [BANKS, SAVINGS INSTITUTIONS, TITLE
24 INSURANCE OR TRUST COMPANIES, BUILDING AND LOAN ASSOCIATIONS AND
25 INSURANCE COMPANIES] OR AN ENTITY SUBJECT TO TAXATION UNDER
26 ARTICLE VII, VIII, IX OR XV IS A DOMESTIC ENTITY. THE TERM
27 "DOMESTIC ENTITY" SHALL NOT INCLUDE:
28 (1) [ANY DOMESTIC OR FOREIGN] A BUSINESS TRUST [THAT] WHICH
29 QUALIFIES AS A REAL ESTATE INVESTMENT TRUST UNDER SECTION 856 OF
30 THE INTERNAL REVENUE CODE OR WHICH IS A QUALIFIED REAL ESTATE
20010H0334B2375 - 15 -
1 INVESTMENT TRUST SUBSIDIARY UNDER SECTION 856(I) OF THE INTERNAL
2 REVENUE CODE OR [ANY] A RELATED [DOMESTIC OR FOREIGN] BUSINESS
3 TRUST WHICH CONFINES ITS ACTIVITIES IN THIS COMMONWEALTH TO THE
4 MAINTENANCE, ADMINISTRATION AND MANAGEMENT OF INTANGIBLE
5 INVESTMENTS AND ACTIVITIES OF REAL ESTATE INVESTMENT TRUSTS OR
6 QUALIFIED REAL ESTATE INVESTMENT TRUST SUBSIDIARIES. A QUALIFIED
7 REAL ESTATE INVESTMENT TRUST SUBSIDIARY UNDER SECTION 856(I) OF
8 THE INTERNAL REVENUE CODE SHALL BE TREATED AS PART OF THE REAL
9 ESTATE INVESTMENT TRUST [THAT] WHICH OWNS ALL OF THE STOCK OF
10 THE QUALIFIED REAL ESTATE INVESTMENT TRUST SUBSIDIARY.
11 (2) [ANY DOMESTIC OR FOREIGN] A BUSINESS TRUST [THAT] WHICH
12 QUALIFIES AS A REGULATED INVESTMENT COMPANY UNDER SECTION 851 OF
13 THE INTERNAL REVENUE CODE AND WHICH IS REGISTERED WITH THE
14 UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE
15 INVESTMENT COMPANY ACT OF 1940 OR [ANY] A RELATED [DOMESTIC OR
16 FOREIGN] BUSINESS TRUST WHICH CONFINES ITS ACTIVITIES IN THIS
17 COMMONWEALTH TO THE MAINTENANCE, ADMINISTRATION AND MANAGEMENT
18 OF INTANGIBLE INVESTMENTS AND ACTIVITIES OF REGULATED INVESTMENT
19 COMPANIES.
20 (3) [ANY] A CORPORATION, TRUST OR OTHER ENTITY [THAT] WHICH
21 IS AN EXEMPT ORGANIZATION AS DEFINED BY SECTION 501 OF THE
22 INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. §
23 501).
24 (4) [ANY] A CORPORATION, TRUST OR OTHER ENTITY ORGANIZED AS
25 A NOT-FOR-PROFIT UNDER THE LAWS OF THIS COMMONWEALTH OR THE LAWS
26 OF ANY OTHER STATE [THAT] WHICH:
27 (I) WOULD QUALIFY AS AN EXEMPT ORGANIZATION AS DEFINED BY
28 SECTION 501 OF THE INTERNAL REVENUE CODE OF 1986;
29 (II) WOULD QUALIFY AS A HOMEOWNERS ASSOCIATION AS DEFINED BY
30 SECTION 528(C) OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. §
20010H0334B2375 - 16 -
1 528(C)); OR
2 (III) IS A MEMBERSHIP ORGANIZATION SUBJECT TO THE FEDERAL
3 LIMITATIONS ON DEDUCTIONS FROM TAXABLE INCOME UNDER SECTION 277
4 OF THE INTERNAL REVENUE CODE OF 1986 (26 U.S.C. § 277) BUT ONLY
5 IF NO PECUNIARY GAIN OR PROFIT INURES TO ANY MEMBER OR RELATED
6 ENTITY FROM THE MEMBERSHIP ORGANIZATION.
7 (5) A DOMESTIC BUSINESS TRUST PROVIDED:
8 (I) THE TRUST IS CREATED OR MANAGED BY AN ENTITY SUBJECT TO
9 THE TAX IMPOSED BY ARTICLE VII[, VII-A] OR XV OR BY AN AFFILIATE
10 OF [THAT] THE ENTITY [THAT] WHICH SHARES AT LEAST EIGHTY PER
11 CENT COMMON OWNERSHIP;
12 (II) THE TRUST IS CREATED AND MANAGED FOR THE PURPOSE OF
13 FACILITATING THE SECURITIZATION OF INTANGIBLE ASSETS; AND
14 (III) THE TRUST IS CLASSIFIED AS A PARTNERSHIP OR A
15 DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES.
16 * * *
17 "FOREIGN ENTITY." EVERY CORPORATION INCORPORATED OR
18 ORGANIZED BY OR UNDER THE LAWS OF ANY JURISDICTION OTHER THAN
19 THE COMMONWEALTH, AND DOING BUSINESS IN AND LIABLE TO TAXATION
20 WITHIN THE COMMONWEALTH OR CARRYING ON ACTIVITIES IN THE
21 COMMONWEALTH, INCLUDING SOLICITATION OR EITHER OWNING OR HAVING
22 CAPITAL OR PROPERTY EMPLOYED OR USED IN THE COMMONWEALTH BY OR
23 IN THE NAME OF ANY LIMITED PARTNERSHIP OR JOINT-STOCK
24 ASSOCIATION, COPARTNERSHIP OR COPARTNERSHIPS, PERSON OR PERSONS,
25 OR IN ANY OTHER MANNER DOING BUSINESS WITHIN AND LIABLE TO
26 TAXATION WITHIN THE COMMONWEALTH OTHER THAN [BANKS, SAVINGS
27 INSTITUTIONS, TITLE INSURANCE OR TRUST COMPANIES, BUILDING AND
28 LOAN ASSOCIATIONS AND INSURANCE COMPANIES] AN ENTITY SUBJECT TO
29 TAX UNDER ARTICLE VII, VIII, IX OR XV IS A FOREIGN ENTITY. THE
30 TERM "FOREIGN ENTITY" SHALL NOT INCLUDE:
20010H0334B2375 - 17 -
1 (1) [ANY DOMESTIC OR FOREIGN] A BUSINESS TRUST [THAT] WHICH
2 QUALIFIES AS A REAL ESTATE INVESTMENT TRUST UNDER SECTION 856 OF
3 THE INTERNAL REVENUE CODE OR WHICH IS A QUALIFIED REAL ESTATE
4 INVESTMENT TRUST SUBSIDIARY UNDER SECTION 856(I) OF THE INTERNAL
5 REVENUE CODE OR [ANY] A RELATED [DOMESTIC OR FOREIGN] BUSINESS
6 TRUST WHICH CONFINES ITS ACTIVITIES IN THIS COMMONWEALTH TO THE
7 MAINTENANCE, ADMINISTRATION AND MANAGEMENT OF INTANGIBLE
8 INVESTMENTS AND ACTIVITIES OF REAL ESTATE INVESTMENT TRUSTS OR
9 QUALIFIED REAL ESTATE INVESTMENT TRUST SUBSIDIARIES. A QUALIFIED
10 REAL ESTATE INVESTMENT TRUST SUBSIDIARY UNDER SECTION 856(I) OF
11 THE INTERNAL REVENUE CODE SHALL BE TREATED AS PART OF THE REAL
12 ESTATE INVESTMENT TRUST [THAT] WHICH OWNS ALL OF THE STOCK OF
13 THE QUALIFIED REAL ESTATE INVESTMENT TRUST SUBSIDIARY.
14 (2) [ANY DOMESTIC OR FOREIGN] A BUSINESS TRUST [THAT] WHICH
15 QUALIFIES AS A REGULATED INVESTMENT COMPANY UNDER SECTION 851 OF
16 THE INTERNAL REVENUE CODE AND WHICH IS REGISTERED WITH THE
17 UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE
18 INVESTMENT COMPANY ACT OF 1940 OR [ANY] A RELATED [DOMESTIC OR
19 FOREIGN] BUSINESS TRUST WHICH CONFINES ITS ACTIVITIES IN THIS
20 COMMONWEALTH TO THE MAINTENANCE, ADMINISTRATION AND MANAGEMENT
21 OF INTANGIBLE INVESTMENTS AND ACTIVITIES OF REGULATED INVESTMENT
22 COMPANIES.
23 (3) [ANY] A CORPORATION, TRUST OR OTHER ENTITY [THAT] WHICH
24 IS AN EXEMPT ORGANIZATION AS DEFINED BY SECTION 501 OF THE
25 INTERNAL REVENUE CODE OF 1986.
26 (4) [ANY] A CORPORATION, TRUST OR OTHER ENTITY ORGANIZED AS
27 A NOT-FOR-PROFIT UNDER THE LAWS OF THIS COMMONWEALTH OR THE LAWS
28 OF ANY OTHER STATE [THAT] WHICH:
29 (I) WOULD QUALIFY AS AN EXEMPT ORGANIZATION AS DEFINED BY
30 SECTION 501 OF THE INTERNAL REVENUE CODE OF 1986;
20010H0334B2375 - 18 -
1 (II) WOULD QUALIFY AS A HOMEOWNERS ASSOCIATION AS DEFINED BY
2 SECTION 528(C) OF THE INTERNAL REVENUE CODE OF 1986; OR
3 (III) IS A MEMBERSHIP ORGANIZATION SUBJECT TO THE FEDERAL
4 LIMITATIONS ON DEDUCTIONS FROM TAXABLE INCOME UNDER SECTION 277
5 OF THE INTERNAL REVENUE CODE OF 1986 BUT ONLY IF NO PECUNIARY
6 GAIN OR PROFIT INURES TO ANY MEMBER OR RELATED ENTITY FROM THE
7 MEMBERSHIP ORGANIZATION.
8 (5) A FOREIGN BUSINESS TRUST PROVIDED:
9 (I) THE TRUST IS CREATED OR MANAGED BY AN ENTITY SUBJECT TO
10 THE TAX IMPOSED BY ARTICLE VII[, VII-A] OR XV OR BY AN AFFILIATE
11 OF [THAT] THE ENTITY [THAT] WHICH SHARES AT LEAST EIGHTY PER
12 CENT COMMON OWNERSHIP;
13 (II) THE TRUST IS CREATED AND MANAGED FOR THE PURPOSE OF
14 FACILITATING THE SECURITIZATION OF INTANGIBLE ASSETS; AND
15 (III) THE TRUST IS CLASSIFIED AS A PARTNERSHIP OR A
16 DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES.
17 * * *
18 "PROCESSING." THE FOLLOWING ACTIVITIES WHEN ENGAGED IN AS A
19 BUSINESS ENTERPRISE:
20 (1) THE FILTERING OR HEATING OF HONEY, THE COOKING OR
21 FREEZING OF FRUITS, VEGETABLES, MUSHROOMS, FISH, SEAFOOD, MEATS
22 OR POULTRY, WHEN THE PERSON ENGAGED IN SUCH BUSINESS PACKAGES
23 SUCH PROPERTY IN SEALED CONTAINERS FOR WHOLESALE DISTRIBUTION.
24 (1.1) THE PROCESSING OF FRUITS OR VEGETABLES BY CLEANING,
25 CUTTING, CORING, PEELING OR CHOPPING AND TREATING TO PRESERVE,
26 STERILIZE OR PURIFY AND SUBSTANTIALLY EXTEND THE USEFUL SHELF
27 LIFE OF THE FRUITS OR VEGETABLES, WHEN THE PERSON ENGAGED IN
28 SUCH ACTIVITY PACKAGES SUCH PROPERTY IN SEALED CONTAINERS FOR
29 WHOLESALE DISTRIBUTION.
30 (2) THE SCOURING, CARBONIZING, CORDING, COMBING, THROWING,
20010H0334B2375 - 19 -
1 TWISTING OR WINDING OF NATURAL OR SYNTHETIC FIBERS, OR THE
2 SPINNING, BLEACHING, DYEING, PRINTING OR FINISHING OF YARNS OR
3 FABRICS, WHEN SUCH ACTIVITIES ARE PERFORMED PRIOR TO SALE TO THE
4 ULTIMATE CONSUMER.
5 (3) THE ELECTROPLATING, GALVANIZING, ENAMELING, ANODIZING,
6 COLORING, FINISHING, IMPREGNATING OR HEAT TREATING OF METALS OR
7 PLASTICS FOR SALE OR IN THE PROCESS OF MANUFACTURING.
8 (3.1) THE BLANKING, SHEARING, LEVELING, SLITTING OR BURNING
9 OF METALS FOR SALE TO OR USE BY A MANUFACTURER OR PROCESSOR.
10 (4) THE ROLLING, DRAWING OR EXTRUDING OF FERROUS AND
11 NONFERROUS METALS.
12 (5) THE FABRICATION FOR SALE OF ORNAMENTAL OR STRUCTURAL
13 METAL OR METAL STAIRS, STAIRCASES, GRATINGS, FIRE ESCAPES OR
14 RAILINGS (NOT INCLUDING FABRICATION WORK DONE AT THE
15 CONSTRUCTION SITE).
16 (6) THE PREPARATION OF ANIMAL FEED OR POULTRY FEED FOR SALE.
17 (7) THE PRODUCTION, PROCESSING AND BOTTLING OF NONALCOHOLIC
18 BEVERAGES FOR WHOLESALE DISTRIBUTION.
19 (8) THE SLAUGHTERING AND DRESSING OF ANIMALS FOR MEAT TO BE
20 SOLD OR TO BE USED IN PREPARING MEAT PRODUCTS FOR SALE, AND THE
21 PREPARATION OF MEAT PRODUCTS, INCLUDING LARD, TALLOW, GREASE,
22 COOKING AND INEDIBLE OILS FOR WHOLESALE DISTRIBUTION.
23 (9) THE OPERATION OF A [SAWMILL] SAW MILL OR PLANING MILL
24 FOR THE PRODUCTION OF LUMBER OR LUMBER PRODUCTS FOR SALE. THE
25 OPERATION OF A SAW MILL OR PLANING MILL BEGINS WITH THE
26 UNLOADING, BY THE OPERATOR OF THE SAW MILL OR PLANING MILL, OF
27 LOGS, TIMBER, PULPWOOD OR OTHER FORMS OF WOOD MATERIAL, TO BE
28 USED IN THE SAW MILL OR PLANING MILL.
29 (10) THE MILLING FOR SALE OF FLOUR OR MEAL FROM GRAINS.
30 (10.1) THE AGING, STRIPPING, CONDITIONING, CRUSHING AND
20010H0334B2375 - 20 -
1 BLENDING OF TOBACCO LEAVES FOR USE AS CIGAR FILLER OR AS
2 COMPONENTS OF SMOKELESS TOBACCO PRODUCTS FOR SALE TO
3 MANUFACTURERS OF TOBACCO PRODUCTS.
4 (11) THE PUBLISHING OF BOOKS, NEWSPAPERS, MAGAZINES OR OTHER
5 PERIODICALS, PRINTING AND BROADCASTING RADIO AND TELEVISION
6 PROGRAMS BY LICENSED COMMERCIAL OR EDUCATIONAL STATIONS.
7 (12) THE PROCESSING OF USED LUBRICATING OILS.
8 (13) THE BLENDING, RECTIFICATION OR PRODUCTION BY
9 DISTILLATION OR OTHERWISE OF ALCOHOL OR ALCOHOLIC LIQUORS,
10 EXCEPT THE DISTILLATION OF ALCOHOL FROM BYPRODUCTS OF WINEMAKING
11 FOR THE SOLE PURPOSE OF FORTIFYING WINE.
12 (14) THE SALVAGING, RECYCLING OR RECLAIMING OF USED
13 MATERIALS TO BE RECYCLED INTO A MANUFACTURING PROCESS.
14 (15) THE DEVELOPMENT OR SUBSTANTIAL MODIFICATION OF COMPUTER
15 PROGRAMS OR SOFTWARE FOR SALE TO UNRELATED PERSONS FOR THEIR
16 DIRECT AND INDEPENDENT USE.
17 (16) THE CLEANING AND ROASTING AND THE BLENDING, GRINDING OR
18 PACKAGING FOR SALE OF COFFEE FROM GREEN COFFEE BEANS OR THE
19 PRODUCTION OF COFFEE EXTRACT.
20 (17) THE REFINING, BLASTING, EXPLORING, MINING AND QUARRYING
21 FOR OR OTHERWISE EXTRACTING LIMESTONE, SAND, GRAVEL OR SLAG FROM
22 THE EARTH OR FROM WASTE OR STOCK PILES OR FROM PITS OR BANKS AND
23 THE CLEANING, CRUSHING, GRINDING, PULVERIZING, SIZING OR
24 SCREENING OF LIMESTONE, SAND, GRAVEL OR SLAG, INCLUDING BLAST
25 FURNACE SLAG.
26 (18) THE PREPARATION OF DRY OR LIQUID FERTILIZER FOR SALE.
27 (19) THE PRODUCTION, PROCESSING AND PACKAGING OF ICE FOR
28 WHOLESALE DISTRIBUTION.
29 * * *
30 SECTION 14. SECTION 702 OF THE ACT IS AMENDED TO READ:
20010H0334B2375 - 21 -
1 SECTION 702. PROCEDURE; ENFORCEMENT; PENALTIES.--(A) EXCEPT
2 AS SET FORTH IN SUBSECTION (B), PARTS III, IV, V, VI AND VII OF
3 ARTICLE IV ARE INCORPORATED BY REFERENCE INTO THIS ARTICLE IN SO
4 FAR AS THEY ARE APPLICABLE TO THE TAX IMPOSED HEREUNDER.
5 (B) THE DEPARTMENT OF REVENUE MAY, UPON APPLICATION MADE BY
6 THE LAST DAY FOR FILING AND IN A FORM PRESCRIBED BY THE
7 DEPARTMENT, GRANT AN EXTENSION OF NOT MORE THAN SIX (6) MONTHS
8 FOR FILING THE ANNUAL REPORT REQUIRED BY SECTION 701.
9 SECTION 14.1. ARTICLES VII-A AND VIII-A OF THE ACT ARE
10 REPEALED.
11 SECTION 15. SECTION 901 OF THE ACT IS AMENDED BY ADDING A
12 CLAUSE TO READ:
13 SECTION 901. DEFINITIONS.--THE FOLLOWING TERMS, WHEN USED IN
14 THIS ACT, SHALL HAVE THE MEANING ASCRIBED TO THEM IN THIS
15 SECTION:
16 * * *
17 (7) "ASSESSMENT BASE" MEANS THE AMOUNT OF NET DIRECT
18 WRITTEN PREMIUMS USED BY THE GUARANTY ASSOCIATION TO CALCULATE A
19 MEMBER INSURER'S ASSESSMENT ON AN ACCOUNT UNDER SECTION 1808 OF
20 THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE
21 INSURANCE COMPANY LAW OF 1921."
22 SECTION 16. SECTION 902.1 OF THE ACT, ADDED MAY 24, 2000
23 (P.L.106, NO.23), IS AMENDED TO READ:
24 SECTION 902.1. CREDITS FOR ASSESSMENTS PAID.--(A) A MEMBER
25 INSURER THAT HAS PAID ASSESSMENTS TO THE GUARANTY ASSOCIATION
26 SHALL BE ENTITLED TO A CREDIT AS AUTHORIZED BY THIS SECTION. THE
27 CREDIT SHALL BE EQUAL TO THE AMOUNT BY WHICH THE ASSESSMENT PAID
28 TO THE GUARANTY ASSOCIATION EXCEEDS ONE PER CENT OF THE MEMBER
29 INSURER'S ["NET DIRECT WRITTEN PREMIUMS," AS DEFINED IN SECTION
30 1802 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE
20010H0334B2375 - 22 -
1 INSURANCE COMPANY LAW OF 1921," AS CALCULATED FOR THE PRECEDING
2 CALENDAR YEAR] ASSESSMENT BASE. EXCEPT AS PROVIDED IN SUBSECTION
3 (E), THE CREDIT AUTHORIZED BY THIS SECTION SHALL BE APPLIED
4 AGAINST THE TAXES DUE UNDER THIS ARTICLE IN EQUAL PORTIONS FOR
5 EACH OF THE FIVE CALENDAR YEARS FOLLOWING PAYMENT OF THE
6 ASSESSMENT. IN THE EVENT A MEMBER INSURER SHOULD CEASE DOING
7 BUSINESS, ALL UNUSED CREDITS MAY BE APPLIED AGAINST ITS PREMIUM
8 TAX LIABILITY FOR THE YEAR IT CEASES DOING BUSINESS. A MEMBER
9 INSURER IS NOT ENTITLED TO A REFUND OF ANY UNUSED CREDIT.
10 (B) ANY SUMS WHICH ARE ACQUIRED BY A MEMBER INSURER FROM THE
11 GUARANTY ASSOCIATION EITHER BY REFUND OR BY RECEIPT OF AN OFFSET
12 WHICH MAY BE USED AGAINST AN ASSESSMENT AND WHICH HAVE BEEN USED
13 IN CALCULATING A CREDIT UNDER SUBSECTION (A) SHALL REDUCE THE
14 AMOUNT OF UNUSED CREDITS OR SHALL BE PAID BY SUCH INSURER TO THE
15 COMMONWEALTH, AS THE DEPARTMENT OF REVENUE MAY REQUIRE. THE
16 GUARANTY ASSOCIATION SHALL NOTIFY THE DEPARTMENT AND THE
17 INSURANCE COMMISSIONER THAT SUCH SUMS HAVE BEEN ACQUIRED BY THE
18 MEMBER INSURER.
19 (C) NO CREDIT AGAINST PREMIUM TAX LIABILITY SHALL BE
20 PERMITTED TO THE EXTENT THAT A MEMBER INSURER'S RATES AND
21 PREMIUMS HAVE BEEN ADJUSTED AS PERMITTED IN SECTION 1810 OF THE
22 ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE INSURANCE
23 COMPANY LAW OF 1921."
24 (D) THE CREDITS ALLOWED BY THIS SECTION SHALL NOT REDUCE THE
25 AMOUNTS WHICH WOULD OTHERWISE BE PAYABLE FOR FIREMEN'S RELIEF
26 PENSION OR RETIREMENT PURPOSES OR FOR POLICE PENSION, RETIREMENT
27 OR DISABILITY PURPOSES. THE DEPARTMENT SHALL TRANSFER BY JUNE 30
28 OF EACH FISCAL YEAR AN AMOUNT EQUAL TO THE CREDITS TAKEN UNDER
29 THIS SECTION BY FOREIGN FIRE AND CASUALTY INSURANCE COMPANIES
30 FROM THE GENERAL FUND TO THE MUNICIPAL PENSION AID FUND AND THE
20010H0334B2375 - 23 -
1 FIRE INSURANCE TAX FUND, AS APPROPRIATE.
2 (E) CREDITS TAKEN BY AN INSURER UNDER THIS SECTION SHALL NOT
3 BE INCLUDED IN DETERMINING LIABILITY FOR RETALIATORY TAXES
4 IMPOSED UNDER SECTION 212 OF THE ACT OF MAY 17, 1921 (P.L.789,
5 NO.285), KNOWN AS "THE INSURANCE DEPARTMENT ACT OF 1921."
6 SECTION 17. ARTICLE X OF THE ACT IS REPEALED.
7 SECTION 18. SECTIONS 1215 AND 1276 OF THE ACT, ADDED
8 DECEMBER 21, 1981 (P.L.482, NO.141), ARE AMENDED TO READ:
9 SECTION 1215. STAMP TO EVIDENCE THE TAX.--(A) THE
10 DEPARTMENT SHALL BY REGULATION REQUIRE EVERY CIGARETTE STAMPING
11 AGENCY OR ULTIMATE CONSUMER, TO USE CIGARETTE TAX STAMPS TO
12 EVIDENCE THE PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE UNLESS
13 SUCH STAMPS HAVE BEEN AFFIXED TO THE PACKS OF CIGARETTES AND
14 PROPERLY CANCELLED BEFORE SUCH CIGARETTE STAMPING AGENCY OR
15 ULTIMATE CONSUMER RECEIVED THEM.
16 (B) THE DEPARTMENT SHALL BY REGULATION AUTHORIZE THE SALE OF
17 CIGARETTE TAX STAMPS AT SUCH PLACES AND AT SUCH TIMES AS IT
18 DEEMS NECESSARY AND THE DEPARTMENT SHALL PRESCRIBE THE MANNER,
19 TIME AND CONDITIONS UNDER WHICH THE PAYMENT OF TAX SHALL BE
20 MADE.
21 (C) THE DEPARTMENT SHALL ALSO PRESCRIBE THE TYPE OF
22 CIGARETTE TAX STAMPS WHICH SHALL BE USED, TO EVIDENCE PAYMENT OF
23 THE TAX. NOTHING IN THIS PROVISION SHALL BE CONSTRUED AS A
24 LIMITATION UPON THE DEPARTMENT TO PRESCRIBE VARIOUS METHODS OF
25 AFFIXING CIGARETTE TAX STAMPS AND SAID DEPARTMENT SHALL HAVE THE
26 AUTHORITY TO PRESCRIBE ONE OR MORE OF SEVERAL TYPES OF TAX
27 STAMPS WHICH SHALL BE USED BY A PARTICULAR CIGARETTE STAMPING
28 AGENCY WHENEVER, IN THE REASONABLE EXERCISE OF ITS POWERS, IT
29 SHALL BE DEEMED NECESSARY FOR THE PROTECTION OF THE REVENUE.
30 (D) UNDER NO CIRCUMSTANCES SHALL ANY CIGARETTE STAMPING
20010H0334B2375 - 24 -
1 AGENCY BE PERMITTED TO SELL, TRANSFER OR DELIVER TO ANY PERSON
2 ANY PACKAGES OF UNSTAMPED CIGARETTES, OR ANY UNUSED CIGARETTE
3 TAX STAMPS UNLESS SPECIFICALLY PERMITTED BY THE PROVISIONS OF
4 THIS ARTICLE.
5 (E) THE DEPARTMENT SHALL BY REGULATION PERMIT A CIGARETTE
6 STAMPING AGENCY TO PAY FOR PURCHASES ON A DEFERRED BASIS, UPON
7 THE FILING OF A SURETY BOND, OF THE TYPE APPROVED BY THE
8 DEPARTMENT, WITH THE DEPARTMENT, IN AN AMOUNT DEEMED SUFFICIENT
9 BY THE DEPARTMENT TO PROTECT THE REVENUE, SAID BOND TO BE
10 EXECUTED BY THE CIGARETTE STAMPING AGENCY AS PRINCIPAL AND BY A
11 CORPORATE SURETY COMPANY, DULY AUTHORIZED TO ENGAGE IN SUCH
12 BUSINESS IN THE COMMONWEALTH OF PENNSYLVANIA, AS SURETY. THE
13 DEPARTMENT SHALL DENY DEFERRED PURCHASE PLANS TO ANY STAMPING
14 AGENCY IN ANY STATE WHERE SUCH STATE DENIES STAMPING AGENCIES IN
15 PENNSYLVANIA THE RIGHT TO USE DEFERRED PURCHASE PLANS. THE
16 DEPARTMENT MAY DENY ANY CIGARETTE STAMPING AGENT THE RIGHT TO
17 PURCHASE CIGARETTE TAX STAMPS IF THE CIGARETTE STAMPING AGENT IS
18 DELINQUENT IN REMITTING CIGARETTE TAXES OR FINES OWED THE
19 COMMONWEALTH.
20 SECTION 1276. FAILURE TO FURNISH INFORMATION, RETURNING
21 FALSE INFORMATION OR FAILURE TO PERMIT AN INSPECTION.--(A) ANY
22 DEALER WHO FAILS TO KEEP OR MAKE ANY RECORD, RETURN, REPORT,
23 INVENTORY OR STATEMENT, OR KEEPS OR MAKES ANY FALSE OR
24 FRAUDULENT RECORD, RETURN, REPORT, INVENTORY OR STATEMENT
25 REQUIRED BY THIS ARTICLE[,] OR SECTION 214-A, 215-A OR 216-A OF
26 THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL
27 CODE," SHALL BE GUILTY OF A MISDEMEANOR, AND, UPON CONVICTION
28 THEREOF, SHALL BE SENTENCED TO PAY A FINE OF FIVE HUNDRED
29 DOLLARS ($500) AND COSTS OF PROSECUTION AND TO SUFFER
30 IMPRISONMENT OF NOT MORE THAN ONE YEAR, OR BOTH, IN THE
20010H0334B2375 - 25 -
1 DISCRETION OF THE COURT. NOTWITHSTANDING ANY FINE IMPOSED BY A
2 COURT OF COMPETENT JURISDICTION IN ACCORDANCE WITH THIS
3 SUBSECTION OR BY THE DEPARTMENT UNDER SECTION 229-A(C) OF "THE
4 FISCAL CODE," IF THE DEALER IS A CIGARETTE STAMPING AGENT, THE
5 DEPARTMENT MAY IMPOSE AN ADMINISTRATIVE FINE OF NOT MORE THAN
6 FIVE THOUSAND DOLLARS ($5,000) AND, UPON NOTICE, MAY SUSPEND THE
7 RIGHT OF THE CIGARETTE STAMPING AGENT TO PURCHASE CIGARETTE TAX
8 STAMPS FOR SIX MONTHS. IF A CIGARETTE STAMPING AGENT'S RIGHT TO
9 PURCHASE CIGARETTE TAX STAMPS IS SUSPENDED PURSUANT TO THIS
10 SUBSECTION MORE THAN TWICE, AFTER A HEARING, THE DEPARTMENT
11 SHALL REVOKE THE LICENSE OF THE CIGARETTE STAMPING AGENT; AND,
12 FOR A PERIOD OF TWO YEARS, THE DEPARTMENT SHALL REJECT ANY
13 APPLICATION BY THE STAMPING AGENT FOR A LICENSE UNDER SECTION
14 204-A OF "THE FISCAL CODE."
15 (B) THE DEPARTMENT IS HEREBY AUTHORIZED TO EXAMINE THE BOOKS
16 AND RECORDS, THE STOCK OF CIGARETTES AND THE PREMISES AND
17 EQUIPMENT OF ANY DEALER IN ORDER TO VERIFY THE ACCURACY OF THE
18 PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE. EVERY SUCH PERSON IS
19 HEREBY DIRECTED AND REQUIRED TO GIVE TO THE DEPARTMENT OR ITS
20 DULY AUTHORIZED REPRESENTATIVE, THE MEANS, FACILITIES AND
21 OPPORTUNITY FOR SUCH EXAMINATIONS. WILFUL REFUSAL TO COOPERATE
22 WITH OR PERMIT SUCH EXAMINATION TO THE SATISFACTION OF THE
23 DEPARTMENT SHALL BE SUFFICIENT GROUNDS FOR THE SUSPENSION OR
24 REVOCATION OF ANY LICENSE ISSUED HEREUNDER, AND IN ADDITION
25 THERETO SHALL CONSTITUTE A MISDEMEANOR, AND, UPON CONVICTION
26 THEREOF, SHALL BE SENTENCED TO PAY A FINE OF FIVE HUNDRED
27 DOLLARS ($500) AND COSTS OF PROSECUTION AND TO SUFFER
28 IMPRISONMENT OF NOT MORE THAN ONE YEAR OR BOTH.
29 SECTION 19. SECTIONS 1278(C) AND 1285(E), (F) AND (K) OF THE
30 ACT, AMENDED OR ADDED DECEMBER 21, 1981 (P.L.482, NO.141) AND
20010H0334B2375 - 26 -
1 AUGUST 4, 1991 (P.L.97, NO.22), ARE AMENDED TO READ:
2 SECTION 1278. OTHER VIOLATIONS.--* * *
3 (C) ANY PERSON WHO FAILS TO PAY TAX AT THE TIME PRESCRIBED
4 SHALL, IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS
5 ARTICLE, BE LIABLE TO A PENALTY OF FIVE PER CENT OF THE TAX DUE
6 BUT UNPAID FOR EACH MONTH OR FRACTION THEREOF THE TAX REMAINS
7 UNPAID TOGETHER WITH THE INTEREST AT THE RATE ESTABLISHED
8 PURSUANT TO SECTION 806 OF THE ACT OF APRIL 9, 1929 (P.L.343,
9 NO.176), KNOWN AS "THE FISCAL CODE," ON SUCH TAX FROM THE TIME
10 THE TAX BECAME DUE[, BUT NO INTEREST FOR A FRACTION OF A MONTH
11 SHALL BE DEMANDED]. THE PENALTIES PROVIDED IN THIS SUBSECTION
12 SHALL BE ADDED TO THE TAX AND ASSESSED AND COLLECTED AT THE SAME
13 TIME IN THE SAME MANNER AND AS A PART OF THE TAX.
14 SECTION 1285. PROPERTY RIGHTS.--* * *
15 (E) THE DEPARTMENT SHALL DISPOSE OF CIGARETTES FORFEITED
16 UNDER THE PROVISIONS OF THIS ARTICLE BY THE SALE [OF SAME
17 THROUGH THE DIVISION OF ESCHEATS, BUREAU OF COUNTY COLLECTIONS,]
18 OR DESTRUCTION OF CIGARETTES PURSUANT TO REGULATIONS PROMULGATED
19 BY THE SECRETARY OF REVENUE.
20 (F) THE PROCEEDINGS FOR THE FORFEITURE OF ANY CIGARETTE
21 VENDING MACHINE OR MOTOR VEHICLE, IN WHICH ARE FOUND UNSTAMPED
22 CIGARETTES SHALL BE IN REM. THE COMMONWEALTH SHALL BE THE
23 PLAINTIFF AND THE PROPERTY SHALL BE THE DEFENDANT. A PETITION
24 SHALL BE FILED WITHIN [FIVE] TEN DAYS AFTER CONFISCATION IN THE
25 COURT OF COMMON PLEAS OF THE COUNTY IN WHICH THE PROPERTY OR
26 VEHICLE WAS TAKEN BY AGENTS OF THE DEPARTMENT, THE POLICE OR
27 OTHER SUCH AUTHORIZED PEACE OFFICER, VERIFIED BY OATH OR
28 AFFIRMATION OF ANY CIGARETTE TAX ENFORCEMENT OFFICER, POLICE
29 OFFICER OR OTHER PERSON. IN THE EVENT THAT SUCH PETITION IS NOT
30 FILED WITHIN THE TIME PRESCRIBED HEREIN, SUCH CONFISCATED
20010H0334B2375 - 27 -
1 VENDING MACHINE OR MOTOR VEHICLE SHALL BE IMMEDIATELY RETURNED
2 TO THE PERSON FROM WHOM CONFISCATED OR THE OWNER THEREOF.
3 * * *
4 (K) UPON THE FILING OF ANY CLAIM FOR THE PROPERTY SETTING
5 FORTH A RIGHT OF POSSESSION THEREOF, THE CASE SHALL BE DEEMED AT
6 ISSUE AND A HEARING SHALL BE HELD WITHIN [FIVE] TEN DAYS
7 THEREOF.
8 * * *
9 SECTION 20. SECTION 1503 OF THE ACT, ADDED DECEMBER 1, 1983
10 (P.L.228, NO.66), IS AMENDED TO READ:
11 SECTION 1503. [SETTLEMENT AND RESETTLEMENT OF TAX.--THE
12 SETTLEMENT AND RESETTLEMENT OF TAXES IMPOSED BY THIS ARTICLE,
13 INCLUDING THE GRANTING OF EXTENSIONS OF TIME TO FILE REPORTS AND
14 THE RIGHTS OF THE TAXPAYER TO PRESENT AND PROSECUTE A PETITION
15 FOR RESETTLEMENT, A PETITION FOR REVIEW, OR AN APPEAL TO COURT,
16 OR TO FILE A PETITION FOR REFUND, AND THE IMPOSITION OF INTEREST
17 AND PENALTIES, SHALL BE GOVERNED BY THE PROVISIONS OF THE ACT OF
18 APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE FISCAL CODE,"
19 RELEVANT TO CAPITAL STOCK AND FRANCHISE TAXES.] PROCEDURE;
20 ENFORCEMENT; PENALTIES.--(A) EXCEPT AS SET FORTH IN SUBSECTION
21 (B), PARTS III, IV, V, VI AND VII OF ARTICLE IV ARE INCORPORATED
22 BY REFERENCE INTO THIS ARTICLE INSOFAR AS THEY ARE APPLICABLE TO
23 THE TAX IMPOSED UNDER THIS ARTICLE.
24 (B) THE DEPARTMENT OF REVENUE MAY, UPON APPLICATION MADE BY
25 THE LAST DAY FOR FILING AND IN A FORM PRESCRIBED BY THE
26 DEPARTMENT, GRANT AN EXTENSION OF NOT MORE THAN SIX (6) MONTHS
27 FOR FILING THE ANNUAL REPORT REQUIRED BY SECTION 1502.
28 SECTION 21. ARTICLES XVII AND XVIII OF THE ACT ARE REPEALED.
29 SECTION 22. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
30 ARTICLE XVIII-B
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1 TAX CREDIT FOR NEW JOBS
2 SECTION 1801-B. DEFINITIONS.
3 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE
4 SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
5 CONTEXT CLEARLY INDICATES OTHERWISE:
6 "BASE PERIOD." THE THREE YEARS PRECEDING THE DATE ON WHICH A
7 COMPANY MAY BEGIN CREATING NEW JOBS WHICH MAY BE ELIGIBLE FOR
8 JOB CREATION TAX CREDITS.
9 "DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC
10 DEVELOPMENT OF THE COMMONWEALTH.
11 "JOB CREATION TAX CREDITS." TAX CREDITS FOR WHICH THE
12 DEPARTMENT HAS ISSUED A CERTIFICATE UNDER THIS ARTICLE.
13 "NEW JOB." A FULL-TIME JOB, THE AVERAGE HOURLY RATE,
14 EXCLUDING BENEFITS, FOR WHICH MUST BE AT LEAST 150% OF THE
15 FEDERAL MINIMUM WAGE, CREATED WITHIN A MUNICIPALITY LOCATED IN
16 THIS COMMONWEALTH BY A COMPANY WITHIN THREE YEARS FROM THE START
17 DATE.
18 "START DATE." THE DATE ON WHICH A COMPANY MAY BEGIN CREATING
19 NEW JOBS WHICH MAY BE ELIGIBLE FOR JOB CREATION TAX CREDITS.
20 "YEAR ONE." A ONE-YEAR PERIOD IMMEDIATELY FOLLOWING THE
21 START DATE.
22 "YEAR THREE." A ONE-YEAR PERIOD IMMEDIATELY FOLLOWING THE
23 END OF YEAR TWO.
24 "YEAR TWO." A ONE-YEAR PERIOD IMMEDIATELY FOLLOWING THE END
25 OF YEAR ONE.
26 SECTION 1802-B. ELIGIBILITY.
27 IN ORDER TO BE ELIGIBLE TO RECEIVE JOB CREATION TAX CREDITS,
28 A COMPANY MUST DEMONSTRATE TO THE DEPARTMENT THE FOLLOWING:
29 (1) THE ABILITY TO CREATE THE NUMBER OF JOBS REQUIRED BY
30 THE DEPARTMENT WITHIN THREE YEARS FROM THE START DATE.
20010H0334B2375 - 29 -
1 (2) LEADERSHIP IN THE APPLICATION, DEVELOPMENT OR
2 DEPLOYMENT OF LEADING TECHNOLOGIES.
3 (3) FINANCIAL STABILITY AND THE PROJECT'S FINANCIAL
4 VIABILITY.
5 (4) THE INTENT TO MAINTAIN OPERATIONS IN THIS
6 COMMONWEALTH FOR A PERIOD OF FIVE YEARS FROM THE DATE THE
7 COMPANY SUBMITS ITS TAX CREDIT CERTIFICATE TO THE DEPARTMENT
8 OF REVENUE.
9 (5) AN AFFIRMATION THAT THE DECISION TO EXPAND OR LOCATE
10 IN THIS COMMONWEALTH WAS DUE IN LARGE PART TO THE
11 AVAILABILITY OF A JOB CREATION TAX CREDIT.
12 SECTION 1803-B. APPLICATION PROCESS.
13 (A) APPLICATION.--A COMPANY MUST COMPLETE AND SUBMIT TO THE
14 DEPARTMENT A JOB CREATION TAX CREDIT APPLICATION.
15 (B) CREATION OF JOBS.--THE APPLICANT MUST AGREE TO CREATE AT
16 LEAST 25 NEW JOBS OR TO INCREASE THE APPLICANT'S NUMBER OF
17 EMPLOYEES BY AT LEAST 20% WITHIN THREE YEARS OF THE START DATE.
18 (C) APPROVAL.--IF THE DEPARTMENT APPROVES THE COMPANY'S
19 APPLICATION, THE DEPARTMENT AND THE COMPANY SHALL EXECUTE A
20 COMMITMENT LETTER CONTAINING THE FOLLOWING:
21 (1) A DESCRIPTION OF THE PROJECT.
22 (2) THE NUMBER OF NEW JOBS TO BE CREATED.
23 (3) THE AMOUNT OF PRIVATE CAPITAL INVESTMENT IN THE
24 PROJECT.
25 (4) THE MAXIMUM JOB CREATION TAX CREDIT AMOUNT THE
26 COMPANY MAY CLAIM.
27 (5) A SIGNED STATEMENT THAT THE COMPANY INTENDS TO
28 MAINTAIN ITS OPERATION IN THIS COMMONWEALTH FOR FIVE YEARS
29 FROM THE START DATE.
30 (6) SUCH OTHER INFORMATION AS THE DEPARTMENT DEEMS
20010H0334B2375 - 30 -
1 APPROPRIATE.
2 (D) COMMITMENT LETTER.--AFTER A COMMITMENT LETTER HAS BEEN
3 SIGNED BY BOTH THE COMMONWEALTH AND THE COMPANY, THE COMPANY
4 SHALL RECEIVE A JOB CREATION TAX CREDIT CERTIFICATE AND FILING
5 INFORMATION.
6 SECTION 1804-B. TAX CREDITS.
7 (A) MAXIMUM AMOUNT.--A COMPANY MAY CLAIM A TAX CREDIT OF
8 $1,000 PER NEW JOB CREATED UP TO THE MAXIMUM JOB CREATION TAX
9 CREDIT AMOUNT SPECIFIED IN THE COMMITMENT LETTER.
10 (B) DETERMINATION OF NEW JOBS CREATED.--
11 (1) NEW JOBS SHALL BE DEEMED CREATED IN YEAR ONE TO THE
12 EXTENT THAT THE COMPANY'S AVERAGE EMPLOYMENT BY QUARTER
13 DURING YEAR ONE EXCEEDS THE COMPANY'S AVERAGE EMPLOYMENT
14 LEVEL DURING THE COMPANY'S BASE PERIOD.
15 (2) NEW JOBS SHALL BE DEEMED CREATED IN YEAR TWO TO THE
16 EXTENT THAT THE COMPANY'S AVERAGE EMPLOYMENT BY QUARTER
17 DURING YEAR TWO EXCEEDS THE COMPANY'S AVERAGE EMPLOYMENT BY
18 QUARTER DURING YEAR ONE.
19 (3) NEW JOBS SHALL BE DEEMED CREATED IN YEAR THREE TO
20 THE EXTENT THAT THE COMPANY'S AVERAGE EMPLOYMENT BY QUARTER
21 DURING YEAR THREE EXCEEDS THE COMPANY'S AVERAGE EMPLOYMENT BY
22 QUARTER DURING YEAR TWO.
23 (C) APPLICABLE TAXES.--A COMPANY MAY APPLY THE TAX CREDIT TO
24 100% OF THE COMPANY'S STATE CORPORATE NET INCOME TAX, CAPITAL
25 STOCK AND FRANCHISE TAX OR THE CAPITAL STOCK AND FRANCHISE TAX
26 OF A SHAREHOLDER OF THE COMPANY IF THE COMPANY IS A PENNSYLVANIA
27 S CORPORATION, GROSS PREMIUMS TAX, GROSS RECEIPTS TAX, BANK AND
28 TRUST COMPANY SHARES TAX, MUTUAL THRIFT INSTITUTION TAX, TITLE
29 INSURANCE COMPANY SHARES TAX, PERSONAL INCOME TAX OR THE
30 PERSONAL INCOME TAX OF SHAREHOLDERS OF A PENNSYLVANIA S
20010H0334B2375 - 31 -
1 CORPORATION OR ANY COMBINATION THEREOF.
2 (D) TAX CREDIT TERM.--A COMPANY MAY CLAIM THE JOB CREATION
3 TAX CREDIT FOR EACH NEW JOB CREATED, AS APPROVED BY THE
4 DEPARTMENT, FOR A PERIOD DETERMINED BY THE DEPARTMENT, BUT NOT
5 TO EXCEED FIVE YEARS FROM THE DATE THE COMPANY FIRST SUBMITS A
6 JOB CREATION TAX CREDIT CERTIFICATE.
7 (E) AVAILABILITY OF TAX CREDITS.--EACH FISCAL YEAR,
8 $22,500,000 IN TAX CREDITS SHALL BE MADE AVAILABLE TO THE
9 DEPARTMENT AND MAY BE AWARDED BY THE DEPARTMENT IN ACCORDANCE
10 WITH THIS ARTICLE. IN ADDITION, IN ANY FISCAL YEAR, THE
11 DEPARTMENT MAY REISSUE OR ASSIGN PRIOR FISCAL YEAR TAX CREDITS
12 WHICH HAVE BEEN RECAPTURED UNDER SECTION 1806-B(A) OR (B) AND
13 MAY AWARD PRIOR FISCAL YEAR CREDITS NOT PREVIOUSLY ISSUED. PRIOR
14 FISCAL YEAR CREDITS MAY BE REISSUED, ASSIGNED OR AWARDED BY THE
15 DEPARTMENT WITHOUT LIMITATION BY SECTION 1805-B(B).
16 SECTION 1805-B. PROHIBITIONS.
17 (A) PROHIBITIONS.--THE FOLLOWING ACTIONS WITH REGARD TO JOB
18 CREATION TAX CREDITS ARE PROHIBITED:
19 (1) APPROVAL OF JOBS THAT HAVE BEEN CREATED PRIOR TO THE
20 START DATE.
21 (2) APPROVAL FOR A COMPANY WHICH IS RELOCATING
22 OPERATIONS FROM ONE MUNICIPALITY IN THIS COMMONWEALTH TO
23 ANOTHER UNLESS SPECIAL CIRCUMSTANCES EXIST AND THE
24 MUNICIPALITY THAT IS LOSING THE EXISTING JOBS HAS AN
25 OPPORTUNITY TO SUBMIT COMMENTS PRIOR TO ACTION BY THE
26 DEPARTMENT. IF THE DEPARTMENT APPROVES THE TAX CREDITS, THE
27 COMPANY MUST COMMIT TO PRESERVING THE EXISTING EMPLOYEES, AND
28 THE CREDIT SHALL APPLY ONLY TO THE NEW JOBS.
29 (3) THE ASSIGNMENT, TRANSFER OR USE OF CREDITS BY ANY
30 OTHER COMPANY; PROVIDED, HOWEVER, THAT TAX CREDITS MAY BE
20010H0334B2375 - 32 -
1 ASSIGNED, IN WHOLE OR IN PART, TO AN AFFILIATED ENTITY. AS
2 USED IN THIS PARAGRAPH, THE TERM "AFFILIATED ENTITY" MEANS AN
3 ENTITY WHICH IS PART OF THE SAME "AFFILIATED GROUP," AS
4 DEFINED BY SECTION 1504(A)(1) OF THE INTERNAL REVENUE CODE OF
5 1986 (PUBLIC LAW 99-514, 26 U.S.C. § 1504(A)(1)), AS THE
6 COMPANY AWARDED THE CREDIT.
7 (B) ALLOCATIONS.--TWENTY-FIVE PERCENT OF THE TOTAL AMOUNT OF
8 ALL TAX CREDITS AUTHORIZED IN ANY FISCAL YEAR UNDER SECTION
9 1804-B(E) SHALL BE AVAILABLE TO COMPANIES WITH FEWER THAN 100
10 EMPLOYEES. ANY PORTION OF THIS ALLOCATION NOT COMMITTED BY APRIL
11 30 OF EACH YEAR SHALL BE AVAILABLE TO ANY BUSINESS WHICH MEETS
12 THE REMAINING PROGRAM CRITERIA.
13 SECTION 1806-B. PENALTIES.
14 (A) FAILURE TO MAINTAIN OPERATIONS.--A COMPANY WHICH
15 RECEIVES JOB CREATION TAX CREDITS AND FAILS TO SUBSTANTIALLY
16 MAINTAIN EXISTING OPERATIONS AND THE OPERATIONS RELATED TO THE
17 JOB CREATION TAX CREDITS IN THIS COMMONWEALTH FOR A PERIOD OF
18 FIVE YEARS FROM THE DATE THE COMPANY FIRST SUBMITS A JOB
19 CREATION TAX CREDIT CERTIFICATE TO THE DEPARTMENT OF REVENUE
20 SHALL BE REQUIRED TO REFUND TO THE COMMONWEALTH THE TOTAL AMOUNT
21 OF CREDIT OR CREDITS GRANTED.
22 (B) FAILURE TO CREATE JOBS.--A COMPANY WHICH RECEIVES JOB
23 CREATION TAX CREDITS AND FAILS TO CREATE THE APPROVED NUMBER OF
24 NEW JOBS WITHIN THREE YEARS OF THE START DATE WILL BE REQUIRED
25 TO REFUND TO THE COMMONWEALTH THE TOTAL AMOUNT OF CREDIT OR
26 CREDITS GRANTED.
27 (C) WAIVER.--THE DEPARTMENT MAY WAIVE THE PENALTIES OUTLINED
28 IN SUBSECTIONS (A) AND (B) IF IT IS DETERMINED THAT A COMPANY'S
29 OPERATIONS WERE NOT MAINTAINED OR THE NEW JOBS WERE NOT CREATED
30 BECAUSE OF CIRCUMSTANCES BEYOND THE COMPANY'S CONTROL. SUCH
20010H0334B2375 - 33 -
1 CIRCUMSTANCES INCLUDE NATURAL DISASTERS, UNFORESEEN INDUSTRY
2 TRENDS OR A LOSS OF A MAJOR SUPPLIER OR MARKET.
3 SECTION 23. ARTICLE XIX OF THE ACT IS REPEALED.
4 SECTION 24. THE FOLLOWING ACTS AND PARTS OF ACTS ARE
5 REPEALED TO THE EXTENT SPECIFIED:
6 SECTION 504 OF THE ACT OF JUNE 5, 1991 (P.L.9, NO.6), KNOWN
7 AS THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT
8 FOR CITIES OF THE FIRST CLASS, INSOFAR AS IT IS INCONSISTENT
9 WITH THE ADDITION OF SECTION 202-A OF THE ACT.
10 CHAPTER 9 OF THE ACT OF JUNE 29, 1996 (P.L.434, NO.67), KNOWN
11 AS THE JOB ENHANCEMENT ACT, ABSOLUTELY.
12 SECTION 25. THE GENERAL ASSEMBLY FINDS AND DECLARES THAT THE
13 INTENT OF THE AMENDMENT OF SECTION 401(3)2(A)(1)(A) AND (D) OF
14 THE ACT IS TO CLARIFY EXISTING LAW.
15 SECTION 26. THIS ACT SHALL APPLY AS FOLLOWS:
16 (1) THE FOLLOWING PROVISIONS SHALL APPLY TO ASSESSMENTS
17 PAID AFTER DECEMBER 31, 1998:
18 (I) THE ADDITION OF SECTION 901(7) OF THE ACT.
19 (II) THE AMENDMENT OF SECTION 902.1 OF THE ACT.
20 (2) THE AMENDMENT OF SECTION 401(3)2(A)(1)(A) AND (D) OF
21 THE ACT SHALL APPLY TO TAXABLE YEARS BEGINNING AFTER DECEMBER
22 31, 1998.
23 (3) THE FOLLOWING PROVISIONS SHALL APPLY TO TAXES PAID
24 FOR CALENDAR YEAR 2000 AND THEREAFTER:
25 (I) THE ADDITION OF SECTION 901(7) OF THE ACT.
26 (II) THE AMENDMENT OF SECTION 902.1 OF THE ACT.
27 (4) THE FOLLOWING PROVISIONS SHALL APPLY TO TAXABLE
28 YEARS BEGINNING AFTER DECEMBER 31, 2000:
29 (I) THE AMENDMENT OF SECTION 301(B) OF THE ACT.
30 (II) THE AMENDMENT OF SECTION 304(D)(1) OF THE ACT.
20010H0334B2375 - 34 -
1 (III) THE AMENDMENT OF THE HEADING OF PART IV OF
2 ARTICLE III OF THE ACT.
3 (IV) THE AMENDMENT OF SECTION 306 OF THE ACT.
4 (V) THE ADDITION OF PART IV-B OF THE ACT.
5 (VI) THE AMENDMENT OF SECTION 324 OF THE ACT.
6 (VII) THE AMENDMENT OF SECTION 401(1) OF THE ACT.
7 (VIII) THE REPEAL OF SECTION 407(E) OF THE ACT.
8 (IX) THE AMENDMENT OF THE DEFINITIONS OF
9 "CORPORATION," "DOMESTIC ENTITY," "FOREIGN ENTITY" AND
10 "PROCESSING" IN SECTION 601(A) OF THE ACT.
11 (X) THE AMENDMENT OF SECTION 702 OF THE ACT.
12 (XI) THE AMENDMENT OF SECTION 1503 OF THE ACT.
13 (5) THE AMENDMENT OF SECTION 247.1 OF THE ACT SHALL
14 APPLY TO AMOUNTS DEDUCTED AS BAD DEBTS ON FEDERAL INCOME TAX
15 RETURNS REQUIRED TO BE FILED AFTER JANUARY 1, 2001.
16 SECTION 27. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
17 (1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT
18 IMMEDIATELY:
19 (I) THE AMENDMENT OF SECTION 401(3)2(A)(1)(A) AND
20 (D) OF THE ACT.
21 (II) SECTION 25 OF THIS ACT.
22 (III) SECTION 26 OF THIS ACT.
23 (IV) THIS SECTION.
24 (2) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT JANUARY
25 1, 2002:
26 (I) THE AMENDMENT OF SECTION 1215 OF THE ACT.
27 (II) THE AMENDMENT OF SECTION 1276 OF THE ACT.
28 (III) THE AMENDMENT OF SECTION 1278(C) OF THE ACT.
29 (IV) THE AMENDMENT OF SECTION 1285(E), (F) AND (K)
30 OF THE ACT.
20010H0334B2375 - 35 -
1 (3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JULY 1,
2 2001, OR IMMEDIATELY, WHICHEVER IS LATER.
A4L72DMS/20010H0334B2375 - 36 -