SENATE AMENDED
PRIOR PRINTER'S NO. 317 PRINTER'S NO. 2319
No. 285 Session of 1989
INTRODUCED BY TRELLO, VROON, PISTELLA, PETRONE, MAYERNIK,
VAN HORNE, ROBINSON, BUNT, KENNEY, GIGLIOTTI, VEON, BOYES,
LETTERMAN, MORRIS, FARGO, CAWLEY, LaGROTTA, BATTISTO,
SERAFINI, E. Z. TAYLOR, SEMMEL, CORRIGAN, G. SNYDER,
RICHARDSON, DALEY, MERRY, HALUSKA, GEIST, NOYE, COLAIZZO,
REBER, JOHNSON, FOX AND MILLER, FEBRUARY 7, 1989
SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JUNE 29, 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," FURTHER DEFINING THE TERMS "EMPLOYE" AND <--
11 "EMPLOYER" FOR PERSONAL INCOME TAX PURPOSES; AND excluding
12 certain transactions from the realty transfer tax.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 SECTION 1. SECTION 301(G) AND (H) OF THE ACT OF MARCH 4, <--
16 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, ADDED
17 AUGUST 31, 1971 (P.L.362, NO.93), ARE AMENDED TO READ:
18 SECTION 301. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
19 PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANING
20 ASCRIBED TO THEM IN THIS SECTION EXCEPT WHERE THE CONTEXT
1 CLEARLY INDICATES A DIFFERENT MEANING. ANY REFERENCE IN THIS
2 ARTICLE TO THE INTERNAL REVENUE CODE SHALL INCLUDE THE INTERNAL
3 REVENUE CODE OF 1954, AS AMENDED TO THE DATE ON WHICH THIS
4 ARTICLE IS EFFECTIVE:
5 * * *
6 (G) "EMPLOYE" MEANS ANY INDIVIDUAL [WHO RENDERS SERVICES TO
7 AN EMPLOYER AND RECEIVES OR ACCRUES COMPENSATION. ANY PERSON]
8 FROM WHOSE [COMPENSATION] WAGES AN EMPLOYER IS REQUIRED UNDER
9 THE INTERNAL REVENUE CODE TO WITHHOLD FEDERAL INCOME TAX [SHALL
10 PRIMA FACIE BE DEEMED AN EMPLOYE].
11 (H) "EMPLOYER" MEANS AN INDIVIDUAL, PARTNERSHIP,
12 ASSOCIATION, CORPORATION, GOVERNMENTAL BODY OR UNIT OR AGENCY,
13 OR ANY OTHER ENTITY WHO OR THAT [EMPLOYS ONE OR MORE PERSONS FOR
14 COMPENSATION. ANY PERSON] IS REQUIRED UNDER THE INTERNAL REVENUE
15 CODE TO WITHHOLD FEDERAL INCOME TAX FROM [COMPENSATION] WAGES
16 PAID TO AN EMPLOYE [SHALL PRIMA FACIE BE DEEMED AN EMPLOYER].
17 * * *
18 Section 1 2. Section 1102-C.3(18) of the act of March 4, <--
19 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, added
20 July 2, 1986 (P.L.318, No.77), is amended to read:
21 Section 1102-C.3. Excluded Transactions.--The tax imposed by
22 section 1102-C shall not be imposed upon:
23 * * *
24 (18) A transfer to a conservancy which possesses a tax-
25 exempt status pursuant to section 501(c)(3) of the Internal
26 Revenue Code of 1954 (68A Stat. 3, 26 U.S.C. § 501(c)(3)) and
27 which has as its primary purpose preservation of land for
28 historic, recreational, scenic, agricultural or open-space
29 opportunities, or a transfer from such a conservancy to the
30 United States, the Commonwealth or to any of their
19890H0285B2319 - 2 -
1 instrumentalities, agencies or political subdivisions.
2 * * *
3 Section 2. This act shall take effect immediately. <--
4 SECTION 3. SECTION 1 OF THIS ACT SHALL APPLY TO TAXABLE <--
5 YEARS BEGINNING ON OR AFTER JANUARY 1, 1986, AND SHALL BE
6 RETROACTIVE IN APPLICATION TO THAT DATE.
7 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
A12L72CHF/19890H0285B2319 - 3 -