PRINTER'S NO. 182
No. 181 Session of 1981
INTRODUCED BY CALTAGIRONE AND COCHRAN, JANUARY 26, 1981
REFERRED TO COMMITTEE ON FINANCE, JANUARY 26, 1981
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," increasing the rate of interest imposed on
11 certain late tax payments.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 265, act of March 4, 1971 (P.L.6, No.2),
15 known as the "Tax Reform Code of 1971," amended April 14, 1976
16 (P.L.111, No.48), is amended to read:
17 Section 265. Interest.--If any amount of tax imposed by this
18 article is not paid to the department on or before the last date
19 prescribed for payment, interest on such amount at the rate of
20 [three-fourths of one] one and one-half per cent per month for
21 each month, or fraction thereof, from such date, shall be paid
22 for the period from such last date to the date paid. The last
1 date prescribed for payment shall be determined under subsection
2 (a) or (c) of section 222 without regard to any extension of
3 time for payment. In the case of any amount assessed as a
4 deficiency or as an estimated assessment, the date prescribed
5 for payment shall be thirty days after notice of such
6 assessment.
7 Section 2. Subsection (c) of section 266 of the act, amended
8 April 14, 1976 (P.L.112, No.49), is amended to read:
9 Section 266. Additions to Tax.--* * *
10 (c) Interest. If the department assesses a tax according to
11 subsection (a), (b) or (c) of section 231, there shall be added
12 to the amount of the deficiency interest at the rate of [three-
13 fourths of one] one and one-half per cent per month for each
14 month, or fraction thereof, from the date prescribed by
15 subsection (a) or (c) of section 222 of this article for the
16 payment of the tax to the date of notice of the assessment.
17 * * *
18 Section 3. Subsection (c) of section 403 of the act is
19 amended to read:
20 Section 403. Reports and Payment of Tax.--* * *
21 (c) The amount of all taxes, imposed under the provisions of
22 this article, not paid on or before the times as above provided,
23 shall bear interest at the rate of [six] eighteen per cent per
24 annum from the date they are due and payable until paid, except
25 that if the taxable income has been, or is increased by the
26 Commissioner of Internal Revenue, or by any other agency or
27 court of the United States, interest shall be computed on the
28 additional tax due from thirty days after the corporation
29 receives notice of the change of income until paid: Provided,
30 however, That any corporation may pay the full amount of such
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1 tax, or any part thereof, together with interest due to the date
2 of payment, without prejudice to its right to present and
3 prosecute a petition for resettlement, a petition for review, or
4 an appeal to court. If it be thereafter determined that such
5 taxes were overpaid, the department shall enter a credit to the
6 account of such corporation, which may be used by it in the
7 manner prescribed by law.
8 * * *
9 Section 4. This act shall take effect in 30 days and shall
10 apply to all taxes due and payable after the effective date of
11 this act.
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