PRINTER'S NO. 917
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
815
Session of
2023
INTRODUCED BY BAKER, PHILLIPS-HILL, STEFANO, DUSH AND BREWSTER,
JUNE 19, 2023
REFERRED TO JUDICIARY, JUNE 19, 2023
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 personal income tax, further providing for
imposition of tax and for taxability of estates, trusts and
their beneficiaries.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 302 and 305 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 302. Imposition of Tax.--(a) [Every] Except as
provided in subsection (c), every resident individual, estate or
trust shall be subject to, and shall pay for the privilege of
receiving each of the classes of income hereinafter enumerated
in section 303, a tax upon each dollar of income received by
that resident during that resident's taxable year at the rate of
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three and seven hundredths per cent.
(b) [Every] Except as provided in subsection (c), every
nonresident individual, estate or trust shall be subject to, and
shall pay for the privilege of receiving each of the classes of
income hereinafter enumerated in section 303 from sources within
this Commonwealth, a tax upon each dollar of income received by
that nonresident during that nonresident's taxable year at the
rate of three and seven hundredths per cent.
(c) The classes of income under section 303 received by a
resident trust, and the classes of income received by a
nonresident trust from sources within this Commonwealth, shall
be taxable to the grantor of the trust or another person to the
extent the grantor or other person is treated as the owner of
the trust under sections 671, 672, 673, 674, 675, 676, 677, 678
and 679 of the Internal Revenue Code of 1986 (Public Law 99-514,
26 U.S.C. ยง 1 et seq.) , as amended, whether or not such income
is distributed or distributable to the beneficiaries of the
trust or accumulated.
Section 305. Taxability of Estates, Trusts and Their
Beneficiaries.--[The] (a) Except as provided in subsection (b),
the income of a beneficiary of an estate or trust in respect of
such estate or trust shall consist of that part of the income or
gains received by the estate or trust for its taxable year
ending within or with the beneficiary's taxable year which,
under the governing instrument and applicable State law, is
required to be distributed currently or is in fact paid or
credited to said beneficiary. The income or gains of the estate
or trust, if any, taxable to such estate or trust shall consist
of the income or gains received by it which has not been
distributed or credited to its beneficiaries.
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(b) Subsection (a) shall not apply to the extent the grantor
or another person is taxable on the income of the trust under
section 302(c).
Section 2. The amendment of sections 302 and 305 of the act
shall apply to tax years beginning on or after January 1
following the effective date of this section.
Section 3. This act shall take effect in 60 days.
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