PRINTER'S NO. 2873
No. 2169 Session of 1989
INTRODUCED BY REBER, LASHINGER, ANGSTADT, BUSH, FARMER,
J. TAYLOR, NAHILL, DEMPSEY, ARGALL, HERSHEY, GRUPPO, CESSAR,
BUNT, WESTON, RAYMOND, GLADECK, MERRY, CLYMER, DIETTERICK,
SERAFINI, JADLOWIEC, MARSICO, FAIRCHILD, BLACK, GEIST,
NAILOR, JOHNSON, HESS, KONDRICH, WASS, SCHULER, FOX,
E. Z. TAYLOR, HERMAN, J. L. WRIGHT, D. W. SNYDER,
J. H. CLARK, DISTLER, GANNON, PHILLIPS, NOYE, McVERRY,
PERZEL, CORNELL, FOSTER, TRELLO, TELEK, CIVERA, ALLEN,
ROBBINS, DAVIES, WILSON, ADOLPH AND GODSHALL,
DECEMBER 6, 1989
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 6, 1989
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," providing for an exclusion from the Pennsylvania
11 personal income tax of earnings expended to pay the State
12 realty transfer tax.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 303(a)(1) of the act of March 4, 1971
16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
17 March 13, 1974 (P.L.179, No.32), is amended to read:
18 Section 303. Classes of Income.--(a) The classes of income
19 referred to above are as follows:
1 (1) Compensation. All salaries, wages, commissions, bonuses
2 and incentive payments whether based on profits or otherwise,
3 fees, tips and similar remuneration received for services
4 rendered whether directly or through an agent and whether in
5 cash or in property except income derived from the United States
6 Government for active duty outside the Commonwealth of
7 Pennsylvania as a member of its armed forces. Notwithstanding
8 any other provision of this act, an amount equal to any State
9 real estate transfer tax, as provided for in Article XI-C of
10 this act, paid in the current tax year shall be excluded from
11 income taxed as compensation.
12 * * *
13 Section 2. The Department of Revenue shall promulgate rules
14 and regulations to carry out the provisions of this act and
15 shall undertake to inform the public of this provision.
16 Section 3. This act shall take effect January 1, 1990.
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