PRINTER'S NO. 3516
No. 2614 Session of 1982
INTRODUCED BY CLARK, IRVIS, MANDERINO, OLASZ, KOLTER, PETRARCA,
PIEVSKY, LIVENGOOD, RICHARDSON, COWELL, GALLAGHER,
A. K. HUTCHINSON, OLIVER, BELFANTI, DOMBROWSKI, CAPPABIANCA,
ZWIKL, LETTERMAN, LESCOVITZ, SWEET, WACHOB, MORRIS, SWAIM,
DEAL, STEWART, PISTELLA, WOZNIAK, WAMBACH, RITTER, HALUSKA,
KOWALYSHYN, RYBAK, CAWLEY, CORDISCO, TIGUE, STEIGHNER,
KUKOVICH, GRUITZA, DeWEESE, LLOYD, BLAUM, PRATT AND
O'DONNELL, AUGUST 17, 1982
REFERRED TO COMMITTEE ON FINANCE, AUGUST 17, 1982
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," reducing tax rates for small corporations.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 402, act of March 4, 1971 (P.L.6, No.2),
14 known as the "Tax Reform Code of 1971," amended December 21,
15 1981 (P.L.482, No.141), is amended to read:
16 Section 402. Imposition of Tax.--(a) Every corporation
17 shall be subject to, and shall pay for the privilege of (i)
18 doing business in this Commonwealth; or (ii) carrying on
19 activities in this Commonwealth; (iii) having capital or
1 property employed or used in this Commonwealth; or (iv) owning
2 property in this Commonwealth, by or in the name of itself, or
3 any person, partnership, association, limited partnership,
4 joint-stock association, or corporation, a State excise tax at
5 the rate of twelve per cent per annum upon each dollar of
6 taxable income of such corporation received by, and accruing to,
7 such corporation during the calendar year 1971 and the first six
8 months of 1972 and at the rate of eleven per cent per annum upon
9 each dollar of taxable income of such corporation received by,
10 and accruing to, such corporation during the second six months
11 of calendar year 1972 through the calendar year 1973 and at the
12 rate of nine and one-half per cent per annum upon each dollar of
13 taxable income of such corporation received by, and accruing to,
14 such corporation during the calendar years 1974, 1975 and 1976
15 and at the rate of ten and one-half per cent per annum upon each
16 dollar of taxable income of such corporation received by, and
17 accruing to, such corporation during the calendar year 1977 and
18 each calendar year thereafter to the beginning of calendar year
19 1984 and at a rate of nine and one-half per cent for each
20 calendar year thereafter, except where a corporation reports to
21 the Federal Government on the basis of a fiscal year, and has
22 certified such fact to the department as required by section 403
23 of this article, in which case, such tax, at the rate of twelve
24 per cent, shall be levied, collected, and paid upon all taxable
25 income received by, and accruing to, such corporation during the
26 first six months of the fiscal year commencing in the calendar
27 year 1972 and at the rate of eleven per cent, shall be levied,
28 collected, and paid upon all taxable income received by, and
29 accruing to, such corporation during the second six months of
30 the fiscal year commencing in the calendar year 1972 and during
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1 the fiscal year commencing in the calendar year 1973 and at the
2 rate of nine and one-half per cent, shall be levied, collected,
3 and paid upon all taxable income received by, and accruing to,
4 such corporation during the fiscal year commencing in the
5 calendar years 1974, 1975 and 1976 and at the rate of ten and
6 one-half per cent, shall be levied, collected, and paid upon all
7 taxable income received by, and accruing to, such corporation
8 during the fiscal year commencing in the calendar year 1977 and
9 during each fiscal year thereafter to the fiscal year commencing
10 in the calendar year 1984 and at a rate of nine and one-half per
11 cent for each fiscal year commencing in the calendar year 1984
12 and each fiscal year thereafter. No penalty prescribed by
13 subsection (e) of section 1202.1 shall be assessed against a
14 corporation for the additional tax which may be due as a result
15 of the increase in tax rate from nine and one-half per cent to
16 ten and one-half per cent imposed retroactively by this section
17 for the calendar year 1977 or for the fiscal year commencing in
18 1977.
19 (b) Corporations with less than twenty shareholders, having
20 no corporate shareholders, whose annual net income does not
21 exceed two hundred fifty thousand dollars ($250,000), shall be
22 assessed pursuant to the rates of Article III of this act,
23 relating to Personal Income Tax.
24 Section 2. This act shall take effect January 1, 1983.
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