PRINTER'S NO. 596

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No. 572 Session of 1999

        INTRODUCED BY STRITTMATTER, NAILOR, ZUG, BELFANTI, ARMSTRONG,
           ZIMMERMAN, LAUGHLIN, SEMMEL, ALLEN, BAKER, BARD, BATTISTO,
           BENNINGHOFF, BROWNE, CAWLEY, CLYMER, L. I. COHEN, COLAFELLA,
           DeLUCA, EGOLF, FAIRCHILD, FARGO, FLICK, GODSHALL, HERSHEY,
           HESS, HUTCHINSON, JADLOWIEC, KENNEY, LEH, MAHER, MAITLAND,
           McCALL, McILHINNEY, McNAUGHTON, ORIE, ROSS, SAINATO, SATHER,
           SAYLOR, SCHRODER, SEYFERT, STAIRS, STEIL, STERN,
           E. Z. TAYLOR, WILT AND WRIGHT, FEBRUARY 10, 1999

        REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 10, 1999

                                     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 providing for imposition of tax.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 602(h) of the act of March 4, 1971
    14  (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
    15  April 23, 1998 (P.L.239, No.45), is amended to read:
    16     Section 602.  Imposition of Tax.--* * *
    17     (h)  The rate of tax for purposes of the capital stock and
    18  franchise tax for taxable years beginning within the dates set
    19  forth shall be as follows:

     1       Taxable Year         Regular Rate  Surtax    Total Rate
     2    January 1, 1971, to
     3         December 31, 1986    10 mills    0           10 mills
     4    January 1, 1987, to
     5         December 31, 1987    9 mills     0           9 mills
     6    January 1, 1988, to
     7         December 31, 1990    9.5 mills   0           9.5 mills
     8    January 1, 1991, to
     9         December 31, 1991    11 mills    2 mills     13 mills
    10    January 1, 1992, to
    11         December 31, 1997    11 mills    1.75 mills  12.75 mills
    12    January 1, 1998, [and
    13         each year thereafter]
    14    to December 31, 1998      11 mills     .99 mills  11.99 mills
    15    January 1, 1999, to
    16         December 31, 1999    10 mills    0           10 mills
    17    January 1, 2000, to
    18         December 31, 2000    9 mills     0           9 mills
    19    January 1, 2001, and
    20         each year thereafter 8 mills     0           8 mills
    21     Section 2.  This act shall take effect in 60 days.






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