PRINTER'S NO. 1850
No. 1588 Session of 1981
INTRODUCED BY CORNELL, PRATT, J. L. WRIGHT, WENGER, ARTY,
PERZEL, BOYES, HALUSKA, PETRARCA, TRELLO, NAHILL AND JOHNSON,
JUNE 15, 1981
REFERRED TO COMMITTEE ON FINANCE, JUNE 15, 1981
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," excluding certain interest from the personal
11 income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Clause (6) of subsection (a) of section 303, act
15 of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
16 1971," added August 31, 1971 (P.L.362, No.93), is amended to
17 read:
18 Section 303. Classes of Income.--(a) The classes of income
19 referred to above are as follows:
20 * * *
21 (6) Interest derived from obligations which are not
22 statutorily free from State or local taxation under any other
1 act of the General Assembly of the Commonwealth of Pennsylvania
2 or under the laws of the United States. For calendar year 1981
3 the term interest shall not include interest equivalent to the
4 first two hundred dollars ($200) for any person that is filing
5 an individual return or the first four hundred dollars ($400)
6 for any husband and wife filing a joint return which is paid on
7 deposits in commercial banks, savings banks, building and loan
8 or savings and loan associations. For calendar year 1982 the
9 term interest shall not include interest equivalent to the first
10 four hundred dollars ($400) for any person that is filing an
11 individual return or the first eight hundred dollars ($800) for
12 any husband and wife filing a joint return which is paid on
13 deposits in commercial banks, savings banks, building and loan
14 or savings and loan associations. For calendar year 1983 and
15 thereafter the term interest shall not include interest
16 equivalent to the first five hundred dollars ($500) for any
17 person that is filing an individual return or the first one
18 thousand dollars ($1,000) for any husband and wife filing a
19 joint return which is paid on deposits in commercial banks,
20 savings banks, building and loan or savings and loan
21 associations.
22 Section 2. This act shall take effect immediately.
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