H0377B2849A05287 JKL:CMM 01/11/08 #90 A05287 AMENDMENTS TO HOUSE BILL NO. 377 Sponsor: REPRESENTATIVE SEIP Printer's No. 2849 1 Amend Title, page 1, line 11, by removing the period after 2 "poverty" and inserting 3 ; and, in capital stock franchise tax, further 4 providing for the definition of "capital stock 5 value." 6 Amend Bill, page 2, by inserting between lines 26 and 27 7 Section 2. The definition of "capital stock value" in 8 section 601(a) of the act, amended July 6, 2006 (P.L.319, 9 No.67), is amended to read: 10 Section 601. Definitions and Reports.--(a) The following 11 words, terms and phrases when used in this Article VI shall have 12 the meaning ascribed to them in this section, except where the 13 context clearly indicates a different meaning: 14 * * * 15 "Capital stock value." The amount computed pursuant to the 16 following formula: the product of one-half times the sum of the 17 average net income capitalized at the rate of nine and one-half 18 per cent plus seventy-five per cent of net worth, from which 19 product shall be subtracted [one hundred fifty thousand dollars 20 ($150,000)] three hundred thousand dollars ($300,000), the 21 algebraic equivalent of which is 22 (.5 X (average net income/.095 + (.75) 23 (net worth))) - [$150,000] $300,000 24 * * * 25 Section 3. The amendment of section 601(a) of the act shall 26 apply to all tax years beginning after December 31, 2007. 27 Amend Sec. 2, page 2, line 27, by striking out "2" and 28 inserting 29 4 A11L90JKL/HB0377A05287