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