<-1Abolishing the corporate loan tax; and repealing acts imposing
2such tax and related acts and parts of acts.

<-3Amending the act of April 9, 1929 (P.L.343, No.176), entitled, 
4as amended, "An act relating to the finances of the State 
5government; providing for the settlement, assessment, 
6collection, and lien of taxes, bonus, and all other accounts 
7due the Commonwealth, the collection and recovery of fees and 
8other money or property due or belonging to the Commonwealth, 
9or any agency thereof, including escheated property and the 
10proceeds of its sale, the custody and disbursement or other 
11disposition of funds and securities belonging to or in the 
12possession of the Commonwealth, and the settlement of claims 
13against the Commonwealth, the resettlement of accounts and 
14appeals to the courts, refunds of moneys erroneously paid to 
15the Commonwealth, auditing the accounts of the Commonwealth 
16and all agencies thereof, of all public officers collecting 
17moneys payable to the Commonwealth, or any agency thereof, 
18and all receipts of appropriations from the Commonwealth, 
19authorizing the Commonwealth to issue tax anticipation notes 
20to defray current expenses, implementing the provisions of 
21section 7(a) of Article VIII of the Constitution of 
22Pennsylvania authorizing and restricting the incurring of 
23certain debt and imposing penalties; affecting every 
24department, board, commission, and officer of the State 
25government, every political subdivision of the State, and 
26certain officers of such subdivisions, every person, 
27association, and corporation required to pay, assess, or 
28collect taxes, or to make returns or reports under the laws 
29imposing taxes for State purposes, or to pay license fees or 
30other moneys to the Commonwealth, or any agency thereof, 
31every State depository and every debtor or creditor of the 
32Commonwealth," further providing for treasurers of private 

1corporations to collect tax from interest paid and for report 
2of corporate loans and payment of tax; and making related 
3repeals.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

<-6Section 1.  Short title.

7This act shall be known and may be cited as the Corporate
8Loan Tax Abolishment Act.

9Section 2.  Corporate loan tax abolished.

10The tax on corporate loans for a fiscal year beginning in the
11calendar year 2013 and thereafter is abolished.

12Section 3.  Power to collect tax.

13The abolition of this tax shall not affect the power of the
14Department of Revenue or any other enforcement or collection
15agency of the Commonwealth from collecting any tax accrued
16before the abolition of the tax or from exercising any power
17conferred on them in connection therewith.

18Section 4.  Savings provision.

19This act does not affect any act done, liability incurred or
20right accrued or vested or affect any civil or criminal
21proceeding pending or to be commenced to enforce any right or
22penalty or punish any offense under any statute or part of a
23statute repealed by this act.

24Section 5.  Repeals.

25The following acts and parts of acts are repealed, except
26insofar as they are necessary for the collection of taxes
27accrued before the abolition by this act of the tax on corporate
28loans:

29Section 42 of the act of April 29, 1844 (P.L.486, No.318),
30entitled "An act to reduce the state debt, and to incorporate
31the Pennsylvania canal and railroad company."

1Act of July 15, 1919 (P.L.954, No.374), entitled "An act
2providing for the collection and payment over to the
3Commonwealth by private and public corporations of State taxes
4on scrip, bonds, certificates, and evidences of indebtedness
5issued or assumed by such corporations, and requiring certain
6reports in connection therewith."

7Sections 17 and 18 of the act of June 22, 1935 (P.L.414,
8No.182), known as the State Personal Property Tax Act.

9Section 20.  Effective date.

10This act shall take effect in 60 days.

<-11Section 1.  Section 606 of the act of April 9, 1929 (P.L.343,
12No.176), known as The Fiscal Code, is repealed:

13[Section 606.  Treasurers of Private Corporations to Collect
14Tax from Interest Paid.--The treasurer of every private
15corporation, except corporations of the first class and
16cooperative agricultural associations not having capital stock
17and not conducted for profit, shall continue to be the agent of
18the Commonwealth, for the purpose of assessing, collecting, and
19paying into the State Treasury the tax imposed by law upon any
20scrip, bond, certificate, or evidence of indebtedness, issued or
21assumed by such corporation, or upon which interest shall be
22paid and held by residents of this Commonwealth, including
23interest paid for prior years, but all taxes thus collected
24shall be paid into the State Treasury, through the Department of
25Revenue.

26For his services as such agent, every such treasurer shall be
27compensated at the rates now provided by law.]

28Section 2.  Section 708 of the act, amended July 13, 1957
29(P.L.838, No.388), is repealed:

30[Section 708.  Report of Corporate Loans and Payment of

1Tax.--The treasurer of every private corporation, except
2corporations of the first class, and cooperative agricultural
3associations not having capital stock and not conducted for
4profit, shall report, annually, on or before the fifteenth day
5of April, to the Department of Revenue, the amount of
6indebtedness of the corporation, or assumed by it, or upon which
7it pays interest, owned by residents of this Commonwealth, as
8nearly as the same can be ascertained, and whenever any such
9corporation shall make a payment of interest on any scrip,
10bonds, certificates and evidence of indebtedness, due and
11payable for prior years, it shall also be the duty of the
12treasurer of such corporation to report the same forthwith to
13the Department of Revenue, giving such information about such
14payment as the Department of Revenue shall require. Every such
15treasurer, at the time of making every report required by this
16section, shall compute and pay to the department the tax due the
17Commonwealth upon such scrip, bonds, certificates and evidences
18of indebtedness, as required by law.]

19Section 3.  Repeals are as follows:

20(1)  The General Assembly declares that the repeals under
21paragraphs (2) and (3) are necessary to effectuate the repeal
22of sections 606 and 708 of the act.

23(2)  The act of July 15, 1919 (P.L.954, No.374),
24entitled, "An act providing for the collection and payment
25over to the Commonwealth by private and public corporations
26of State taxes on scrip, bonds, certificates, and evidences
27of indebtedness issued or assumed by such corporations, and
28requiring certain reports in connection therewith," is
29repealed.

30(3)  Sections 17 and 18 of the act of June 22, 1935

1(P.L.414, No.182), known as the State Personal Property Tax
2Act, are repealed.

3Section 4.  The following provisions shall apply to tax years
4beginning after December 31, 2013:

5(1)  The repeal of sections 606 and 708 of the act.

6(2)  Section 3 of this act.

7Section 5.  This act shall take effect immediately.