PRINTER'S NO. 2756
No. 2021 Session of 1986
INTRODUCED BY COLAFELLA, TRELLO, DEAL, BELFANTI, GREENWOOD,
BUNT, JOHNSON, MARKOSEK, DALEY, DOMBROWSKI, NOYE, PHILLIPS,
DeLUCA, FARGO, GANNON, KASUNIC, HERMAN, BIRMELIN, LESCOVITZ,
MRKONIC, LUCYK, MAYERNIK, PRATT, PRESSMANN, HERSHEY,
CALTAGIRONE, LESCOVITZ AND FISCHER, JANUARY 27, 1986
REFERRED TO COMMITTEE ON FINANCE, JANUARY 27, 1986
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," reducing the rate of taxation imposed on personal
11 income and on corporate net income.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 302 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, amended July 1,
16 1985 (P.L.78, No.29), is amended to read:
17 Section 302. Imposition of Tax.--(a) There is hereby
18 imposed a tax to be paid by resident individuals, estates or
19 trusts at the annual rate of two and two-tenths per cent for
20 taxable years up to and including the taxable year commencing on
21 or after January 1, 1982, and at the annual rate of two and
1 forty-five hundredths per cent for the taxable year commencing
2 on or after January 1, 1983, and for the first six months of the
3 taxable year commencing on or after January 1, 1984, and at the
4 annual rate of two and thirty-five hundredths per cent for the
5 second six months of the taxable year commencing on or after
6 January 1, 1984, and for the taxable year commencing on or after
7 January 1, 1985, and at the annual rate of two and two-tenths
8 per cent for the first six months of the taxable year commencing
9 on or after January 1, 1986, and at the annual rate of two and
10 fifteen hundredths per cent for the second six months of the
11 taxable year commencing on or after January 1, 1986, and for
12 each taxable year thereafter on the privilege of receiving each
13 of the classes of income hereinafter enumerated in section 303.
14 (b) There is hereby imposed a tax to be paid by nonresident
15 individuals, estates or trusts at the annual rate of two and
16 two-tenths per cent for taxable years up to and including the
17 taxable year commencing on or after January 1, 1982, and at the
18 annual rate of two and forty-five hundredths per cent for the
19 taxable year commencing on or after January 1, 1983, and for the
20 first six months of the taxable year commencing on or after
21 January 1, 1984, and at the annual rate of two and thirty-five
22 hundredths per cent for the second six months of the taxable
23 year commencing on or after January 1, 1984, and for the taxable
24 year commencing on or after January 1, 1985, and at the annual
25 rate of two and two-tenths per cent for the first six months of
26 the taxable year commencing on or after January 1, 1986, and at
27 the annual rate of two and fifteen hundredths per cent for the
28 second six months of the taxable year commencing on or after
29 January 1, 1986, and for each taxable year thereafter on the
30 privilege of receiving each of the classes of income enumerated
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1 in section 303 from sources within this Commonwealth.
2 Section 2. Section 402 of the act, amended June 29, 1984
3 (P.L.445, No.94), is amended to read:
4 Section 402. Imposition of Tax.--Every corporation shall be
5 subject to, and shall pay for the privilege of (i) doing
6 business in this Commonwealth; or (ii) carrying on activities in
7 this Commonwealth; (iii) having capital or property employed or
8 used in this Commonwealth; or (iv) owning property in this
9 Commonwealth, by or in the name of itself, or any person,
10 partnership, association, limited partnership, joint-stock
11 association, or corporation, a State excise tax at the rate of
12 twelve per cent per annum upon each dollar of taxable income of
13 such corporation received by, and accruing to, such corporation
14 during the calendar year 1971 and the first six months of 1972
15 and at the rate of eleven per cent per annum upon each dollar of
16 taxable income of such corporation received by, and accruing to,
17 such corporation during the second six months of calendar year
18 1972 through the calendar year 1973 and at the rate of nine and
19 one-half per cent per annum upon each dollar of taxable income
20 of such corporation received by, and accruing to, such
21 corporation during the calendar years 1974, 1975 and 1976 and at
22 the rate of ten and one-half per cent per annum upon each dollar
23 of taxable income of such corporation received by, and accruing
24 to, such corporation during the calendar year 1977 through the
25 calendar year 1984 and at the rate of nine and one-half per cent
26 per annum upon each dollar of taxable income of such corporation
27 received by and accruing to such corporation during the calendar
28 year 1985 and the first six months of the calendar year 1986 and
29 at the rate of eight and nine-tenths per cent per annum upon
30 each dollar of taxable income of such corporation received by,
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1 and accruing to, such corporation during the second six months
2 of the calendar year 1986 and each calendar year thereafter,
3 except where a corporation reports to the Federal Government on
4 the basis of a fiscal year, and has certified such fact to the
5 department as required by section 403 of this article, in which
6 case, such tax, at the rate of twelve per cent, shall be levied,
7 collected, and paid upon all taxable income received by, and
8 accruing to, such corporation during the first six months of the
9 fiscal year commencing in the calendar year 1972 and at the rate
10 of eleven per cent, shall be levied, collected, and paid upon
11 all taxable income received by, and accruing to, such
12 corporation during the second six months of the fiscal year
13 commencing in the calendar year 1972 and during the fiscal year
14 commencing in the calendar year 1973 and at the rate of nine and
15 one-half per cent, shall be levied, collected, and paid upon all
16 taxable income received by, and accruing to, such corporation
17 during the fiscal year commencing in the calendar years 1974,
18 1975 and 1976 and at the rate of ten and one-half per cent,
19 shall be levied, collected, and paid upon all taxable income
20 received by, and accruing to, such corporation during the fiscal
21 year commencing in the calendar year 1977 through the fiscal
22 year commencing in 1984 and at the rate of nine and one-half per
23 cent, shall be levied, collected, and paid upon all taxable
24 income received by and accruing to such corporation during the
25 fiscal year commencing in 1985 and the first six months of the
26 fiscal year commencing in the calendar year 1986 and at the rate
27 of eight and nine-tenths per cent, shall be levied, collected,
28 and paid upon all taxable income received by, and accruing to,
29 such corporation during the second six months of the fiscal year
30 commencing in the calendar year 1986 and during each fiscal year
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1 thereafter. No penalty prescribed by subsection (e) of section
2 3003 shall be assessed against a corporation for the additional
3 tax which may be due as a result of the increase in tax rate
4 from nine and one-half per cent to ten and one-half per cent
5 imposed retroactively by this section for the calendar year 1977
6 or for the fiscal year commencing in 1977.
7 Section 3. This act shall take effect immediately.
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