PRINTER'S NO. 2651

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No. 2055 Session of 1987

        INTRODUCED BY RIEGER, DONATUCCI, HAYDEN, LLOYD, HARPER,
           LaGROTTA, MORRIS, CAPPABIANCA, ACOSTA AND SERAFINI,
           DECEMBER 9, 1987

        REFERRED TO COMMITTEE ON FINANCE, DECEMBER 9, 1987

                                     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," exempting certain persons 62 years of age and
    11     over from personal income tax on certain interest received.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Section 303(a)(6) of the act of March 4, 1971
    15  (P.L.6, No.2), known as the Tax Reform Code of 1971, added
    16  August 31, 1971 (P.L.362, No.93), is amended to read:
    17     Section 303.  Classes of Income.--(a)  The classes of income
    18  referred to above are as follows:
    19     * * *
    20     (6)  Interest derived from obligations which are not
    21  statutorily free from State or local taxation under any other
    22  act of the General Assembly of the Commonwealth of Pennsylvania

     1  or under the laws of the United States. The term "interest"
     2  shall not include interest received by persons sixty-two years
     3  of age and over who, if married, have a combined annual income
     4  of twenty-five thousand dollars ($25,000) or less, or fifteen
     5  thousand dollars ($15,000) or less in the case of single
     6  persons. This exclusion shall, however, apply only to the first
     7  three thousand dollars ($3,000) of interest received.
     8     * * *
     9     Section 2.  This act shall apply to taxable years beginning
    10  on and after January 1, 1988.
    11     Section 3.  This act shall take effect immediately.













    L3L72CHF/19870H2055B2651         - 2 -