PRINTER'S NO. 1409
No. 1190 Session of 1993
INTRODUCED BY MELLOW, LINCOLN, FUMO, REIBMAN, AFFLERBACH, STAPLETON, O'PAKE, STEWART, PORTERFIELD, LAVALLE, SCHWARTZ, MUSTO, ANDREZESKI, STOUT, WILLIAMS, DAWIDA, FATTAH, LEWIS, BELAN, LYNCH, JONES, SCANLON AND MOWERY, JUNE 2, 1993
REFERRED TO FINANCE, JUNE 2, 1993
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 corporate net income tax; 11 and including electric utilities on the increased gross 12 receipts tax and additional surtax. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 402 of the act of March 4, 1971 (P.L.6, 16 No.2), known as the Tax Reform Code of 1971, amended August 4, 17 1991 (P.L.97, No.22), is amended to read: 18 Section 402. Imposition of Tax.--Every corporation shall be 19 subject to, and shall pay for the privilege of (i) doing 20 business in this Commonwealth; or (ii) carrying on activities in 21 this Commonwealth; (iii) having capital or property employed or 22 used in this Commonwealth; or (iv) owning property in this
1 Commonwealth, by or in the name of itself, or any person, 2 partnership, association, limited partnership, joint-stock 3 association, or corporation, a State excise tax at the rate of 4 twelve per cent per annum upon each dollar of taxable income of 5 such corporation received by, and accruing to, such corporation 6 during the calendar year 1971 and the first six months of 1972 7 and at the rate of eleven per cent per annum upon each dollar of 8 taxable income of such corporation received by, and accruing to, 9 such corporation during the second six months of calendar year 10 1972 through the calendar year 1973 and at the rate of nine and 11 one-half per cent per annum upon each dollar of taxable income 12 of such corporation received by, and accruing to, such 13 corporation during the calendar years 1974, 1975 and 1976 and at 14 the rate of ten and one-half per cent per annum upon each dollar 15 of taxable income of such corporation received by, and accruing 16 to, such corporation during the calendar year 1977 through the 17 calendar year 1984 and at the rate of nine and one-half per cent 18 per annum upon each dollar of taxable income of such corporation 19 received by and accruing to such corporation during the calendar 20 year 1985 through calendar year 1986 and at the rate of eight 21 and one-half per cent per annum upon each dollar of taxable 22 income of such corporation received by and accruing to such 23 corporation during the calendar year 1987 through the calendar 24 year 1990 and at the rate of ten and one-half per cent per annum 25 upon each dollar of taxable income of such corporation received 26 by and accruing to such corporation during calendar year 1991 27 and during each calendar year thereafter, with an additional 28 surtax equal to one and seventy-five hundredths per cent per 29 annum upon each dollar of taxable income of such corporation 30 received by and accruing to such corporation during calendar 19930S1190B1409 - 2 -
1 [year 1991 and during each calendar year thereafter] years 1991 2 and 1992 and an additional surtax of nine-tenths of one per cent 3 per annum upon each dollar of taxable income of such corporation 4 received by and accruing to such corporation during calendar 5 year 1993 and each year thereafter, except where a corporation 6 reports to the Federal Government on the basis of a fiscal year, 7 and has certified such fact to the department as required by 8 section 403 of this article, in which case, such tax, at the 9 rate of twelve per cent, shall be levied, collected, and paid 10 upon all taxable income received by, and accruing to, such 11 corporation during the first six months of the fiscal year 12 commencing in the calendar year 1972 and at the rate of eleven 13 per cent, shall be levied, collected, and paid upon all taxable 14 income received by, and accruing to, such corporation during the 15 second six months of the fiscal year commencing in the calendar 16 year 1972 and during the fiscal year commencing in the calendar 17 year 1973 and at the rate of nine and one-half per cent, shall 18 be levied, collected, and paid upon all taxable income received 19 by, and accruing to, such corporation during the fiscal year 20 commencing in the calendar years 1974, 1975 and 1976 and at the 21 rate of ten and one-half per cent, shall be levied, collected, 22 and paid upon all taxable income received by, and accruing to, 23 such corporation during the fiscal year commencing in the 24 calendar year 1977 through the fiscal year commencing in 1984 25 and at the rate of nine and one-half per cent, shall be levied, 26 collected, and paid upon all taxable income received by and 27 accruing to such corporation during the fiscal year commencing 28 in 1985 through the fiscal year commencing in 1986 and at the 29 rate of eight and one-half per cent per annum upon each dollar 30 of taxable income of such corporation received by and accruing 19930S1190B1409 - 3 -
1 to such corporation during the fiscal year commencing in 1987 2 through the fiscal year commencing in 1990 and at the rate of 3 ten and one-half per cent per annum upon each dollar of taxable 4 income of such corporation received by and accruing to such 5 corporation during the fiscal year commencing in 1991 and during 6 each fiscal year thereafter, with an additional surtax equal to 7 one and seventy-five hundredths per cent per annum upon each 8 dollar of taxable income of such corporation received by and 9 accruing to such corporation during the fiscal year commencing 10 in 1991 [and during each fiscal year thereafter] and 1992 and an 11 additional surtax of nine-tenths of one per cent per annum upon 12 each dollar of taxable income of such corporation received by 13 and accruing to such corporation during the fiscal year 14 commencing in 1993 and during each fiscal year thereafter. No 15 penalty prescribed by subsection (e) of section 3003 shall be 16 assessed against a corporation for the additional tax which may 17 be due as a result of the increase in tax rate from nine and 18 one-half per cent to ten and one-half per cent imposed 19 retroactively by this section for the calendar year 1977 or for 20 the fiscal year commencing in 1977. 21 Section 2. Section 1101(b) of the act, amended July 13, 1987 22 (P.L.317, No.58), is amended to read: 23 Section 1101. Imposition of Tax.--* * * 24 (b) Electric Light, Waterpower and Hydro-electric 25 Utilities.--Every electric light company, waterpower company and 26 hydro-electric company now or hereafter incorporated or 27 organized by or under any law of this Commonwealth, or now or 28 hereafter organized or incorporated by any other state or by the 29 United States or any foreign government and doing business in 30 this Commonwealth, and every limited partnership, association, 19930S1190B1409 - 4 -
1 joint-stock association, copartnership, person or persons,
2 engaged in electric light and power business, waterpower
3 business and hydro-electric business in this Commonwealth, shall
4 pay to the State Treasurer, through the Department of Revenue, a
5 tax of [forty-four] forty-five mills with a surtax equal to five
6 mills upon each dollar of the gross receipts of the corporation,
7 company or association, limited partnership, joint-stock
8 association, copartnership, person or persons, received from:
9 (1) the sales of electric energy within this State, except
10 gross receipts derived from the sales for resale of electric
11 energy to persons, partnerships, associations, corporations or
12 political subdivisions subject to the tax imposed by this
13 subsection upon gross receipts derived from such resale; and
14 (2) the sales of electric energy produced in Pennsylvania
15 and made outside of Pennsylvania in a state that has taken
16 action since December 21, 1977 which results in higher costs for
17 electric energy produced in that state and sold in Pennsylvania
18 unless the action that was taken after December 21, 1977 is
19 rescinded according to the following apportionment formula:
20 except for gross receipts derived from sales under clause (1),
21 the gross receipts from all sales of electricity of the producer
22 shall be apportioned to the Commonwealth of Pennsylvania by the
23 ratio of the producer's operating and maintenance expenses in
24 Pennsylvania and depreciation attributable to property in
25 Pennsylvania to the producer's total operating and maintenance
26 expenses and depreciation.
27 * * *
28 Section 3. This act shall be retroactive to the tax years
29 beginning on or after January 1, 1993.
30 Section 4. This act shall take effect immediately.
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