PRINTER'S NO. 1471
No. 1232 Session of 1985
INTRODUCED BY MERRY, PRATT, NOYE, ROBBINS, E. Z. TAYLOR, FARGO,
JOHNSON, BOWSER, BARLEY, CLYMER, HONAMAN, HERMAN, BOYES,
BURD, SEMMEL AND FISCHER, MAY 28, 1985
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
MAY 28, 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 the family farm corporation
11 exemption from capital stock tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 602.2 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, added October 17,
16 1980 (P.L.1077, No.179), is amended to read:
17 Section 602.2. Family Farm Corporation Exemption.--(a) The
18 provisions of section 602 shall not apply to family farm
19 corporations. Family farm corporations shall be exempt from the
20 tax imposed by section 602.
21 (b) (1) Family farm corporation means a Pennsylvania
1 corporation at least seventy-five per cent of the assets of
2 which are devoted to the business of agriculture, horticulture
3 or dairy farming as pursuant to section 201 of this act, which
4 business, for the purposes of this definition, shall not be
5 deemed to include (i) recreational activities such as, but not
6 limited to, hunting, fishing, camping, skiing, show competition
7 or racing; (ii) the raising, breeding or training of game
8 animals or game birds, fish, cats, dogs or pets, or animals
9 intended for use in sporting or recreational activities; (iii)
10 fur farming; (iv) stockyard and slaughterhouse operations; or
11 (v) manufacturing or processing operations of any kind:
12 Provided, however, That at least seventy-five per cent of all of
13 the stock of the corporation must be owned by members of the
14 same family.
15 (2) Members of the same family shall mean an individual,
16 such individual's brothers and sisters, the brothers and sisters
17 of such individual's parents and grandparents, the ancestors and
18 lineal descendents of any of the foregoing and a spouse of any
19 of the foregoing. Individuals related by the half blood or by
20 legal adoption shall be treated as if they were related by the
21 whole blood.
22 Section 2. This act shall take effect in 60 days.
D29L72WMB/19850H1232B1471 - 2 -