PRINTER'S NO. 250
No. 233 Session of 1985
INTRODUCED BY A. C. FOSTER, JR., TRELLO, WILSON, FEE, DORR,
COLAFELLA, B. SMITH, GEIST, PETRONE, SEVENTY, CORNELL,
G. M. SNYDER, MOEHLMANN, ROBBINS, FLICK, LLOYD AND GRUPPO,
FEBRUARY 11, 1985
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 11, 1985
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," further providing for agreements with other
11 states with reference to the income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 356(b) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 December 6, 1972 (P.L.1432, No.315), is amended to read:
17 Section 356. Cooperation with Other Governmental Agencies.--
18 * * *
19 (b) The department may enter into an agreement with the
20 taxing authorities of any state which imposes a tax on or
21 measured by income to provide that compensation paid in such
1 state to residents of this Commonwealth and net profits earned
2 from the operation of a business, profession or other activity
3 carried on in such state by residents of this Commonwealth shall
4 be exempt from such tax; in such case any compensation paid in
5 this [State] Commonwealth to, or net profits earned in this
6 Commonwealth by, residents of such state shall be exempt from
7 Pennsylvania personal income tax. The department, in such
8 agreements, may provide for reciprocal withholding, employer
9 liability, exchange of information and all other matters
10 relating to cooperation between the states.
11 Section 2. This act shall be retroactive to March 4, 1971.
12 Section 3. This act shall take effect immediately.
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