PRINTER'S NO. 960

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No. 798 Session of 2005

        INTRODUCED BY MANN, BENNINGHOFF, BUNT, CALTAGIRONE, CAWLEY,
           CRAHALLA, CREIGHTON, FABRIZIO, FRANKEL, GEIST, GEORGE,
           HARRIS, HERSHEY, KILLION, LEVDANSKY, McILHATTAN, PETRARCA,
           SATHER, YOUNGBLOOD, HENNESSEY, HUTCHINSON, KOTIK, MARKOSEK,
           S. MILLER, SAINATO, SHANER, TURZAI, ROSS AND MAHER,
           MARCH 14, 2005

        REFERRED TO COMMITTEE ON FINANCE, MARCH 14, 2005

                                     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," authorizing the offsetting of gains and losses
    11     among the various classes of income.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Section 303(a) introductory paragraph of the act
    15  of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
    16  1971, added August 31, 1971 (P.L.362, No.93), is amended and the
    17  section is amended by adding a subsection to read:
    18     Section 303.  Classes of Income.--(a)  The classes of income
    19  [referred to above] are as follows:
    20     * * *

     1     (a.4)  (1)  Subject to the limitation under paragraph (2),
     2  for the tax year beginning January 1, 2005, and each tax year
     3  thereafter, a taxpayer may offset the gains or losses within one
     4  class of income with the gains or losses occurring within
     5  another class of income.
     6     (2)  Gains or losses under subsection (a)(7) shall be limited
     7  solely to that class of income. Losses within that particular
     8  class of income may not be used to offset any gain in any other
     9  class of income.
    10     * * *
    11     Section 2.  This act shall take effect immediately.













    A25L72DMS/20050H0798B0960        - 2 -