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PRINTER'S NO. 700
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
627
Session of
2017
INTRODUCED BY KILLION, BLAKE, CORMAN, FOLMER, McGARRIGLE, WARD
AND YUDICHAK, APRIL 17, 2017
REFERRED TO FINANCE, APRIL 17, 2017
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 corporate net income tax, further providing
for definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 401(3)2(b) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." * * *
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2. In case the entire business of any corporation, other
than a corporation engaged in doing business as a regulated
investment company as defined by the Internal Revenue Code of
1986, is not transacted within this Commonwealth, the tax
imposed by this article shall be based upon such portion of the
taxable income of such corporation for the fiscal or calendar
year, as defined in subclause 1 hereof, and may be determined as
follows:
* * *
(b) Railroad, Truck, Bus [or], Airline or Qualified Air
Freight Forwarding Companies.
(1) All business income of railroad, truck, bus [or],
airline and qualified air freight forwarding companies shall be
apportioned to this Commonwealth by multiplying the income by a
fraction, the numerator of which is the taxpayer's total revenue
miles within this Commonwealth during the tax period and the
denominator of which is the total revenue miles of the taxpayer
everywhere during the tax period. For purposes of this paragraph
revenue mile shall mean the average receipts derived from the
transportation by the taxpayer of persons or property one mile.
Where revenue miles are derived from the transportation of both
persons and property, the revenue mile fractions attributable to
each such class of transportation shall be computed separately,
and the average of the two fractions, weighted in accordance
with the ratio of total receipts from each such class of
transportation everywhere to total receipts from both such
classes of transportation everywhere, shall be used in
apportioning income to this Commonwealth.
(2) Nonbusiness income of railroad, truck, bus [or], airline
and qualified air freight forwarding companies shall be
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allocated as provided in paragraphs (5) through (8) of phrase
(a) of subclause 2 of the definition of taxable income.
(3) As used in this phrase, "qualified air freight
forwarding company" shall mean a company that:
(A) is engaged in the air freight forwarding business;
(B) primarily uses an airline with which it has common
ownership and control; and
(C) will use the revenue miles of the airline under
subparagraph (B).
* * *
Section 2. The amendment of section 401(3)2(b) of the act
shall apply to taxable years beginning after December 31, 2016.
Section 3. This act shall take effect immediately.
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