PRINTER'S NO. 3188
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2645
Session of
2022
INTRODUCED BY PEIFER, DUNBAR, MILLARD, PISCIOTTANO AND RYAN,
JUNE 2, 2022
REFERRED TO COMMITTEE ON FINANCE, JUNE 2, 2022
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in bank and trust company shares tax, further
providing for ascertainment of taxable amount and exclusion
of United States obligations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 701.1 heading, (b), (b.1) and (c) of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971, are amended to read:
Section 701.1. Ascertainment of Taxable Amount; [Exclusion
of United States Obligations] Exclusions, Subtractions and
Deductions.--* * *
(b) A deduction for the value of United States obligations
shall be provided from the taxable amount of shares in an amount
equal to the same percentage of total bank equity capital as the
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book value of obligations of the United States bears to the book
value of the total assets. In computing the deduction for United
States obligations, any goodwill [recorded as a result of the
use of purchase accounting for an acquisition or combination as
described in this section and occurring after June 30, 2001,]
deducted from the taxable amount of shares under subsection
(b.1) shall be subtracted from the book value of total bank
equity capital and disregarded in determining the deduction
provided for obligations of the United States. For purposes of
this article, United States obligations shall be obligations
coming within the scope of 31 U.S.C. ยง 3124 (relating to
exemption from taxation).
(b.1) A deduction for goodwill shall be provided from the
taxable amount of shares in an amount equal to the value of any
goodwill recorded [as a result of the use of purchase accounting
for an acquisition or combination as described in this section
and] in the reports and conditions of the institution in
accordance with generally accepted accounting principles
following an acquisition or business combination occurring after
June 30, 2001.
[(c) For purposes of this section:
(1) a mere change in identity, form or place of organization
of one institution, however effected, shall be treated as if a
single institution had been in existence prior to as well as
after such change; and
(2) if there is a combination of two or more institutions
into one, the book values and deductions for United States
obligations from the Reports of Condition of the constituent
institutions shall be combined. For purposes of this section, a
combination shall include any acquisition required to be
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accounted for by using the purchase method in accordance with
generally accepted accounting principles or a statutory merger
or consolidation.]
Section 2. This act shall apply retroactively to calendar
years beginning after December 31, 2018.
Section 3. This act shall take effect immediately.
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