Regular Session 2021-2022 House Bill 0766 P.N. 1156

PRIOR PRINTER'S NO. 752

PRINTER'S NO. 1156

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

766

Session of

2021

INTRODUCED BY GREINER, ROTHMAN, RYAN, MILLARD, GROVE, MENTZER,

DUNBAR, WARREN, ZIMMERMAN, JAMES, WHEELAND AND GILLEN,

MARCH 3, 2021

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

APRIL 6, 2021

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, PROVIDING FOR COVID-19

EMERGENCY FINANCE AND TAX PROVISION; AND in corporate net

income tax, further providing for reports and payment of tax

and for extension of time to file reports.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 403(a)(1) and (e) and 405 of the act of

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971, are amended to read:

SECTION 1. THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS

THE TAX REFORM CODE OF 1971, IS AMENDED BY ADDING A SECTION TO

READ:

SECTION 330.2. COVID-19 EMERGENCY FINANCE AND TAX

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PROVISION.--(A) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT

THERE ARE CIRCUMSTANCES UNDER WHICH IT IS IMPOSSIBLE TO

EFFECTIVELY COMPLY WITH LAW RELATING TO STATE FINANCE OR STATE

TAX AND DURING SUCH CIRCUMSTANCES, IT IS NECESSARY FOR

COMMONWEALTH AGENCIES TO EXERCISE TEMPORARY POWERS AND DUTIES

PROVIDED UNDER THIS SECTION.

(B) (1) THIS SUBSECTION PROVIDES TEMPORARY AUTHORITY TO THE

DEPARTMENT TO DEAL WITH STATE TAXATION DURING THE STATE OF

DISASTER EMERGENCY ANNOUNCED BY THE GOVERNOR'S MARCH 6, 2020,

PROCLAMATION OF DISASTER EMERGENCY, AND ANY RENEWAL OF THE STATE

OF DISASTER EMERGENCY.

(2) THE DEPARTMENT SHALL DISREGARD THE PERIOD AFTER APRIL

14, 2021, AND BEFORE MAY 17, 2021, IN THE CALCULATION OF

INTEREST, A PENALTY OR AN ADDITION TO TAX FOR FAILURE TO MEET AN

EXTENDED DEADLINE UNDER SECTION 330.

(3) THIS SUBSECTION SHALL EXPIRE MAY 31, 2021.

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT TO DEAL WITH

LOCAL TAXATION DURING THE STATE OF DISASTER EMERGENCY ANNOUNCED

BY THE GOVERNOR'S MARCH 6, 2020, PROCLAMATION OF DISASTER

EMERGENCY, AND ANY RENEWAL OF THE STATE OF DISASTER EMERGENCY.

(2) DURING THE STATE OF DISASTER EMERGENCY UNDER PARAGRAPH

(1), THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT SHALL

COORDINATE WITH THE GOVERNING BODIES AND LOCAL AGENCIES OF

POLITICAL SUBDIVISIONS TO DO ALL OF THE FOLLOWING:

(I) EXTEND FILING AND PAYMENT DEADLINES FOR LOCAL TAXES

UNDER CHAPTER 5 OF THE ACT OF DECEMBER 31, 1965, KNOWN AS THE

LOCAL TAX ENABLING ACT, AND RELATED STATUTORY PROVISIONS,

ORDINANCES AND RESOLUTIONS SO THAT THE DEADLINES COINCIDE WITH

THE FILING DEADLINE FOR A TAX RETURN AND PAYMENT OF SECTION 330.

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(II) DISREGARD THE PERIOD AFTER APRIL 14, 2021, AND BEFORE

MAY 17, 2021, IN THE CALCULATION OF INTEREST, A PENALTY OR AN

ADDITION TO TAX FOR FAILURE TO MEET AN EXTENDED DEADLINE UNDER

SUBPARAGRAPH (I)

(3) THIS SUBSECTION SHALL EXPIRE MAY 31, 2021.

SECTION 2. SECTIONS 403(A)(1) AND (E) AND 405 OF THE ACT ARE

AMENDED TO READ:

Section 403. Reports and Payment of Tax.--(a) (1) It shall

be the duty of every corporation, liable to pay tax under this

article, to transmit to the department, upon a form prescribed

by the department, an annual report under oath or affirmation of

its president, vice-president, treasurer, assistant treasurer or

other authorized officers of net income taxable under the

provisions of this article:

(i) on or before April 15, 1972, and every April 15 of each

year thereafter through April 15, 2016; [and]

(ii) for taxable years beginning after December 31, 2015, on

or before thirty days after the return to the Federal Government

is due, or would be due were it to be required of such

corporation, subject in all other respects to the provisions of

this article[.]; and

(iii) for taxable years beginning after December 31, 2020,

on or before the fifteenth day of the month following the due

date of the return to the Federal Government, or would be due

were it to be required of such corporation, subject in all other

respects to the provisions of this article.

* * *

(e) If any corporation closes its fiscal year not upon

December 31, but upon some other date, and reports to the

Federal Government as of such other date, or would so report

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were it to make a return to the Federal Government, such

corporation shall certify such fact to the department, and shall

make the annual report, herein required, [within thirty days

after the return to the Federal Government is due] on or before

the fifteenth day of the month following the due date of the

return to the Federal Government, or would be due were it to be

required of such corporation, subject in all other respects to

the provisions of this article.

* * *

Section 405. Extension of Time to File Reports.--The

department may, upon application made to it, in such form as it

shall prescribe, on or prior to the last day for filing any

annual report, and upon proper cause shown, grant to the

corporation, required to file such report, an extension of not

more than sixty days within which such report may be filed. If

the Federal income tax authorities grant an extension of time

for filing the reports with the Federal Government, the

department shall automatically grant an extension of time for

filing the annual report under this article [of thirty days

after] until the fifteenth day of the month following the

termination of the Federal extension, but the amount of tax due

shall, in such cases, nevertheless, be subject to interest from

the due dates and at the rates fixed by this article.

Section 2 3. The amendment or addition of sections 403(a)(1)

(iii) and (e) and 405 of the act shall apply to taxable years

beginning after December 31, 2020.

Section 3 4. This act shall take effect immediately.

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