PRINTER'S NO. 603
No. 532 Session of 2007
INTRODUCED BY ROHRER, BARRAR, BASTIAN, BENNINGHOFF, CALTAGIRONE,
CREIGHTON, DALEY, DENLINGER, GEIST, GOODMAN, GRELL, GRUCELA,
HARHART, HARRIS, HENNESSEY, HESS, JAMES, M. O'BRIEN, RAPP,
STEIL, STERN AND SWANGER, MARCH 6, 2007
REFERRED TO COMMITTEE ON FINANCE, MARCH 6, 2007
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," establishing special tax provisions for certain
11 employees paid the minimum wage.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17 Section 304.1. Special Tax Provisions for Minors.--(a) The
18 General Assembly:
19 (1) In recognition of the powers contained in section
20 2(b)(ii) of Article VIII of the Constitution of the Commonwealth
21 of Pennsylvania which provides therein for the establishing as a
1 class or classes of subjects of taxation the property or
2 privileges of persons who, because of poverty, are determined to
3 be in need of special tax provisions hereby declares as its
4 legislative intent and purpose to implement such power under
5 such constitutional provision by establishing special tax
6 provisions as provided in subsection (b).
7 (2) Having determined that there are persons within this
8 Commonwealth whose incomes are such that imposition of a tax
9 thereon would deprive them and their dependents of the bare
10 necessities of life and having further determined that poverty
11 is a relative concept inextricably joined with actual income and
12 the number of people dependent upon such income deems it to be a
13 matter of public policy to provide special tax provisions for
14 that class of persons designated under subsection (b) to relieve
15 their economic burden.
16 (b) Notwithstanding any other provision of law to the
17 contrary, the wages of an employe who is paid wages under the
18 rate set forth under section 4 of the act of January 17, 1968
19 (P.L.11, No.5), known as "The Minimum Wage Act of 1968," and is
20 under 18 years of age shall not be subject to the tax imposed
21 under this article, the emergency and municipal services tax
22 imposed under the act of December 31, 1965 (P.L.1257, No.511),
23 known as "The Local Tax Enabling Act," or any tax on the earned
24 income or occupation of such employe imposed by a municipality
25 under any other act.
26 (c) (1) A person to whom subsection (b) applies may claim
27 the special tax provisions of this section upon the expiration
28 of the person's taxable year by filing a certification of no tax
29 liability in lieu of filing a tax return, provided all of the
30 following apply:
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1 (i) The person is paid wages under section 4 of "The Minimum
2 Wage Act of 1968."
3 (ii) The person was paid the wages when the person was under
4 18 years of age.
5 (iii) The person incurred no personal income tax liability
6 for the preceding tax year.
7 (iv) The person was not subject to tax withholding pursuant
8 to this article in the taxable year.
9 (v) No tax was withheld on account of the person pursuant to
10 this article in the taxable year.
11 (vi) The person was not subject to the estimated tax payment
12 requirements under this article in the taxable year.
13 (vii) The person made no estimated tax payments in the
14 taxable year.
15 (viii) The person is not entitled to a tax refund for the
16 taxable year.
17 (2) The furnishing of false information on the certification
18 by a person shall constitute a violation of 18 Pa.C.S. § 4904
19 (relating to unsworn falsification to authorities). Any person
20 who wilfully aids or assists in, or procures, counsels or
21 advises the preparation or presentation of a certification which
22 is fraudulent or is false as to any material matter, shall be
23 guilty of a misdemeanor and shall, upon conviction, be sentenced
24 to pay a fine not exceeding five thousand dollars ($5,000) or to
25 undergo imprisonment not exceeding two years, or both.
26 (3) The department shall establish the form of the
27 certification that may be filed in lieu of a tax return pursuant
28 to this subsection. The department shall develop such rules,
29 regulations and procedures as it deems necessary to fairly and
30 reasonably implement the provisions of this subsection in a
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1 simple and expeditious fashion. In establishing and developing
2 such certification form and rules, regulations and procedures,
3 the department shall not require the submission of any
4 additional form, return, report or schedule as a prerequisite or
5 condition to utilization of this expedited procedure for
6 claiming special tax forgiveness.
7 (4) Nothing in this subsection shall be construed to lessen
8 or curtail the power of the department to conduct examinations
9 pursuant to section 355 whenever such examinations are deemed
10 warranted in appropriate circumstances to ensure compliance with
11 this article.
12 Section 2. This act shall take effect in 60 days.
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