PRIOR PRINTER'S NO. 182 PRINTER'S NO. 1690
No. 181 Session of 1981
INTRODUCED BY CALTAGIRONE AND COCHRAN, JANUARY 26, 1981
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 1, 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 AND REQUIRING THE COMMONWEALTH TO <--
12 PAY INTEREST ON MONEY DUE TAXPAYERS.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 265, act of March 4, 1971 (P.L.6, No.2),
16 known as the "Tax Reform Code of 1971," amended April 14, 1976
17 (P.L.111, No.48), is amended to read:
18 Section 265. Interest.--If any amount of tax imposed by this
19 article is not paid to the department on or before the last date
20 prescribed for payment, interest on such amount at the rate of
21 [three-fourths of one] one and one-half per cent per month for <--
22 each month, or fraction thereof, from such date, shall be paid
1 for the period from such last date to the date paid. The last
2 date prescribed for payment shall be determined under subsection
3 (a) or (c) of section 222 without regard to any extension of
4 time for payment. In the case of any amount assessed as a
5 deficiency or as an estimated assessment, the date prescribed
6 for payment shall be thirty days after notice of such
7 assessment.
8 Section 2. Subsection (c) of section 266 of the act, amended
9 April 14, 1976 (P.L.112, No.49), is amended to read:
10 Section 266. Additions to Tax.--* * *
11 (c) Interest. If the department assesses a tax according to
12 subsection (a), (b) or (c) of section 231, there shall be added
13 to the amount of the deficiency interest at the rate of [three-
14 fourths of one] one and one-half per cent per month for each <--
15 month, or fraction thereof, from the date prescribed by
16 subsection (a) or (c) of section 222 of this article for the
17 payment of the tax to the date of notice of the assessment.
18 * * *
19 Section 3. Subsection (c) of section 403 of the act is
20 amended AND SUBSECTIONS ARE ADDED to read: <--
21 Section 403. Reports and Payment of Tax.--* * *
22 (c) The amount of all taxes, imposed under the provisions of
23 this article, not paid on or before the times as above provided,
24 shall bear interest at the rate of [six] eighteen TWELVE per <--
25 cent per annum from the date they are due and payable until
26 paid, except that if the taxable income has been, or is
27 increased by the Commissioner of Internal Revenue, or by any
28 other agency or court of the United States, interest shall be
29 computed on the additional tax due from thirty days after the
30 corporation receives notice of the change of income until paid:
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1 Provided, however, That any corporation may pay the full amount
2 of such tax, or any part thereof, together with interest due to
3 the date of payment, without prejudice to its right to present
4 and prosecute a petition for resettlement, a petition for
5 review, or an appeal to court. If it be thereafter determined
6 that such taxes were overpaid, the department shall enter a
7 credit to the account of such corporation, which may be used by
8 it in the manner prescribed by law.
9 (C.1) INTEREST SHALL BE ALLOWED AND PAID BY THE COMMONWEALTH <--
10 UPON ANY OVERPAYMENT TO THE COMMONWEALTH OF ANY TAX. THE
11 INTEREST SHALL BE ALLOWED AND PAID FOR THE PERIOD DURING WHICH
12 THE COMMONWEALTH RETAINED THE OVERPAYMENT, BEGINNING WITH THE
13 DATE OF OVERPAYMENT; PROVIDED:
14 (1) ANY TAX ACTUALLY DEDUCTED AND WITHHELD AT THE SOURCE
15 SHALL BE DEEMED TO HAVE BEEN OVERPAID ON THE LAST DAY PRESCRIBED
16 FOR FILING THE RETURN OR REPORT FOR THE TAXABLE YEAR (DETERMINED
17 WITHOUT REGARD TO ANY EXTENSION OF TIME FOR FILING);
18 (2) ANY AMOUNT OVERPAID AS ESTIMATED OR TENTATIVE TAX FOR A
19 TAXABLE YEAR SHALL BE DEEMED TO HAVE BEEN OVERPAID ON THE LAST
20 DAY PRESCRIBED FOR FILING THE FINAL RETURN OR REPORT FOR THE
21 TAXABLE YEAR (DETERMINED WITHOUT REGARD TO ANY EXTENSION OF TIME
22 FOR FILING); AND
23 (3) ANY OVERPAYMENT MADE BEFORE THE LAST DAY PRESCRIBED FOR
24 PAYMENT SHALL BE CONSIDERED MADE ON THE LAST DAY.
25 (C.2) INTEREST SHALL BE COMPUTED AT A RATE WHICH IS EQUAL TO
26 THE RATE OF INTEREST IMPOSED BY THE COMMONWEALTH ON
27 UNDERPAYMENTS OF THE SAME TAX FOR THE SAME PERIOD DURING WHICH
28 THE COMMONWEALTH RETAINED THE OVERPAYMENT.
29 (C.3) INTEREST SHALL BE ALLOWED AND PAID AS FOLLOWS:
30 (1) IN THE CASE OF A CASH REFUND, FROM THE DATE OF THE
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1 OVERPAYMENT TO A DATE PRECEDING THE DATE OF THE COMMONWEALTH'S
2 REFUND CHECK BY NOT MORE THAN THIRTY DAYS, WHETHER OR NOT A
3 REFUND CHECK IS ACCEPTED BY THE TAXPAYER AFTER TENDER OF THE
4 CHECK TO THE TAXPAYER.
5 (2) IN THE CASE OF A CREDIT FOR AN OVERPAYMENT, FROM THE
6 DATE OF THE OVERPAYMENT TO:
7 (A) THE DATE OF THE COMMONWEALTH'S NOTICE TO THE TAXPAYER OF
8 THE FINAL DETERMINATION OF THE CREDIT; OR
9 (B) THE DATE AS OF WHICH THE CREDIT IS APPLIED, WHICHEVER
10 FIRST OCCURS: PROVIDED, HOWEVER, THAT IN THE CASE OF A CASH
11 REFUND OF A PREVIOUSLY DETERMINED CREDIT, INTEREST SHALL BE
12 ALLOWED AND PAID ON THE AMOUNT OF THE CREDIT FROM A DATE NINETY
13 DAYS AFTER THE FILING OF A PETITION FOR A CASH REFUND TO A DATE
14 PRECEDING THE DATE OF THE REFUND CHECK BY NOT MORE THAN THIRTY
15 DAYS WHETHER OR NOT THE REFUND CHECK IS ACCEPTED BY THE TAXPAYER
16 AFTER TENDER TO THE TAXPAYER.
17 THE TAXPAYER'S ACCEPTANCE OF THE COMMONWEALTH'S CHECK SHALL BE
18 WITHOUT PREJUDICE TO ANY RIGHT OF THE TAXPAYER TO CLAIM ANY
19 ADDITIONAL OVERPAYMENT AND INTEREST THEREON.
20 (C.4) REFUND WITHIN SIX MONTHS AFTER FINAL RETURN OR REPORT
21 IS FILED. IF ANY OVERPAYMENT OF TAX IS REFUNDED OR CREDITED
22 WITHIN SIX MONTHS AFTER THE LAST DATE PRESCRIBED FOR FILING THE
23 FINAL RETURN OR REPORT OF THE TAX (DETERMINED WITHOUT REGARD TO
24 ANY EXTENSION OF TIME FOR FILING), OR, IN CASE THE FINAL RETURN
25 OR REPORT IS FILED AFTER THE LAST DAY, AND IS REFUNDED OR
26 CREDITED WITHIN SIX MONTHS AFTER THE DATE THE FINAL RETURN OR
27 REPORT IS FILED, NO INTEREST SHALL BE ALLOWED ON THE
28 OVERPAYMENT.
29 * * *
30 Section 4. This act shall take effect in 30 days and shall
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1 apply to all taxes due and payable after the effective date of
2 this act.
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