PRINTER'S NO. 385
No. 339 Session of 2003
INTRODUCED BY MANN, THOMAS, LEDERER, GEIST, CREIGHTON,
YOUNGBLOOD, MARKOSEK, WATSON, COY, BUXTON, TANGRETTI, NAILOR,
HUTCHINSON, FAIRCHILD, NICKOL, CORRIGAN, READSHAW, BAKER,
FORCIER, CAPPELLI, BASTIAN, LAUGHLIN, BARD, BELFANTI,
GORDNER, BARRAR, R. MILLER, REED, LEWIS, MUNDY, ROSS,
MARSICO, WOJNAROSKI, CURRY, HENNESSEY, TRUE, CAUSER, ADOLPH,
STERN, HORSEY, MICOZZIE, SATHER, SURRA, HERSHEY, FREEMAN,
BROWNE, MACKERETH, GEORGE, COSTA, PETRARCA, FRANKEL, CRUZ,
GRUCELA, McILHATTAN, R. STEVENSON, DALLY, MELIO, KOTIK,
TRAVAGLIO, BENNINGHOFF, SHANER, ALLEN, PRESTON, SOLOBAY,
SCHRODER, GOODMAN, MAHER, S. MILLER, WASHINGTON, TURZAI,
CAWLEY, PICKETT, HARPER, REICHLEY AND CIVERA,
FEBRUARY 18, 2003
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 18, 2003
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 the definition of "capital
11 stock value."
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The definition of "capital stock value" in
15 section 601(a) of the act of March 4, 1971 (P.L.6, No.2), known
16 as the Tax Reform Code of 1971, amended May 7, 1997 (P.L.85,
17 No.7), is amended to read:
1 Section 601. Definitions and Reports.--(a) The following
2 words, terms and phrases when used in this Article VI shall have
3 the meaning ascribed to them in this section, except where the
4 context clearly indicates a different meaning:
5 * * *
6 "Capital stock value." The amount computed pursuant to the
7 following formula: the product of one-half times the sum of the
8 average net income capitalized at the rate of nine and one-half
9 per cent plus seventy-five per cent of net worth, from which
10 product shall be subtracted [one hundred twenty-five thousand
11 dollars ($125,000)] two hundred fifty thousand dollars
12 ($250,000), the algebraic equivalent of which is
13 (.5 X (average net income/.095 + (.75)
14 (net worth))) - [$125,000] $250,000
15 * * *
16 Section 2. This act shall apply to taxable years beginning
17 after December 31, 2002.
18 Section 3. This act shall take effect immediately.
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