THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY DUNBAR, BENNINGHOFF, BAKER, BLOOM, R. BROWN, CALTAGIRONE, CUTLER, DeLUCA, EVANKOVICH, GILLEN, GRELL, GROVE, HARHART, HESS, KAUFFMAN, M. K. KELLER, KILLION, LAWRENCE, MILLER, MILNE, PICKETT, REESE, ROSS, SACCONE, SCHRODER, STERN, VULAKOVICH, WATSON, YOUNGBLOOD, LONGIETTI, RAPP, PETRARCA, D. COSTA, GEIST, CREIGHTON, DONATUCCI, BOYD, GABLER, TRUITT, BEAR, SWANGER, DiGIROLAMO AND DENLINGER, APRIL 11, 2011

AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 22, 2011   

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in personal income tax, further providing for

additions to tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 352(d)(2) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, amended

July 7, 2005 (P.L.149, No.40), is amended to read:

Section 352.  Additions, Penalties and Fees.--* * *

(d)  * * *

(2)  No addition to tax shall be imposed if the total amount

of all payments of estimated tax made on or before the last date

prescribed for the payment of such installment equals or exceeds

the lesser of:

(A)  The amount which would have been required to be paid on

or before such date if the estimated tax were an amount equal to

the tax computed after consideration of the special tax

provisions for poverty, at the rates applicable to the taxable

year, but otherwise on the basis of the facts shown on his

return for, and the law applicable to, the preceding taxable

year; [or]

(B)  An amount equal to ninety per cent of the tax computed,

at the rates applicable to the taxable year, on the basis of the

actual income for the months in the taxable year ending before

the month in which the installment is required to be paid, or,

in the case of a trust or estate, an amount equal to ninety per

cent of the applicable percentage of the tax for the taxable

year as determined pursuant to section 6654(d)(2)(C)(ii) of the

Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. §

6654), as amended, at rates applicable to the taxable year,

computed on an annualized basis in accordance with United States

Treasury regulations, based upon the actual income for the

months of the taxable year ending with the last day of the

second preceding month prior to the month in which the

installment is required to be paid[.]; or

(C)  An amount equal to the tax liability shown on the

preceding tax year return, less special tax provisions for

poverty which shall apply to taxpayers who filed a full-year

Pennsylvania return for the preceding tax year, unless the

taxpayer was not required to file a Pennsylvania return.

Section 2.  This act shall apply to taxable years beginning

after December 31, 2009 2010.

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Section 3.  This act shall take effect immediately.