PRINTER'S NO. 1281
No. 1104 Session of 1977
INTRODUCED BY DORR, MILLIRON, CASSIDY, RHODES, RYAN, GEESEY,
A. C. FOSTER JR., MEBUS, ANDERSON, PITTS, O'CONNELL,
L. E. SMITH, DeVERTER, LEHR, ZEARFOSS, VROON, E. Z. TAYLOR,
E. H. SMITH, W. D. HUTCHINSON, POTT, ZWIKL, YOHN, O'DONNELL,
BUTERA AND RAPPAPORT, MAY 2, 1977
REFERRED TO COMMITTEE ON FINANCE, MAY 2, 1977
AN ACT
1 Amending the act of March 16, 1970 (P.L.180, No.69), entitled
2 "An act relating to State taxation; changing the manner in
3 which tentative and annual taxes are to be paid; providing a
4 penalty in certain cases; and making a repealer," further
5 providing for the payment of the tentative corporate net
6 income tax.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Subsection (a) of section 1, act of March 16,
10 1970 (P.L.180, No.69), entitled "An act relating to State
11 taxation; changing the manner in which tentative and annual
12 taxes are to be paid; providing a penalty in certain cases; and
13 making a repealer," amended November 12, 1971 (P.L.541, No.142),
14 is amended to read:
15 Section 1. (a) Notwithstanding the provisions of any State
16 tax law to the contrary which requires taxpayers to make payment
17 of tentative tax, including but not limited to the capital stock
18 and franchise tax, corporate net income and corporation income
1 tax, gross receipts tax on public service companies,
2 transportation by motor vehicles and trackless trolleys, other
3 than motor vehicles for hire, insurance premiums tax, mutual
4 thrift institutions tax, net earnings tax, or other similar tax
5 law requiring payment of tentative tax, such taxpayers,
6 commencing with the calendar year 1970 and fiscal years
7 beginning during the calendar year 1970 and each taxable year
8 thereafter, on or before the thirtieth day of April for calendar
9 year taxpayers, and on or before the end of the fourth month
10 after the close of its previous fiscal year for fiscal year
11 taxpayers, shall pay on account of the tax due for the current
12 year not less than ninety per cent of the amount of said tax;
13 the said amount to be computed by applying the current tax rate
14 to ninety per cent of such tax base from the immediate prior
15 year as may be applicable with respect to the tax being
16 reported: Provided, however, That with respect to the taxes
17 imposed by Articles, IV, V, IX, and XI of the act of March 4,
18 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971" and
19 "The Mutual Thrift Institutions Tax Act," of June 22, 1964
20 (P.L.16, No.2), said payment may at the taxpayer's election be
21 computed by applying the current tax rate to ninety per cent of
22 the taxable income, taxable gross premiums, taxable gross
23 receipts, or taxable net earnings, as the case may be, received
24 or accrued by the taxpayer during the first three months of the
25 current calendar or fiscal year period annualized, which amount
26 resulting from said annualization shall not be less than ninety
27 per cent of the tax basis as is actually reported in the annual
28 report for the current calendar or fiscal year: And, provided
29 further, That with respect to the corporate net income tax
30 imposed by Article IV, act of March 4, 1971 (P.L.6, No.2), a
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1 corporation may, at its election, pay on account of the tax due
2 for the current taxable year an estimated tax computed by
3 applying the current tax ratio to one hundred per cent of the
4 tax base and payable quarterly, on or before the fifteenth day
5 of the month following each quarter, in accordance with the
6 following schedule:
7 Year in which Quarterly Payments
8 taxable year begins First Second Third Fourth
9 Quarter Quarter Quarter Quarter
10 1978 85% 5% 5% 5%
11 1979 70% 10% 10% 10%
12 1980 55% 15% 15% 15%
13 1981 40% 20% 20% 20%
14 1982 30% 20% 20% 20%
15 1983 and thereafter 25% 25% 25% 25%
16 The remaining portion of the tax due, if any, shall be paid upon
17 the date the taxpayer's annual report is required to be made
18 under the applicable tax statute.
19 * * *
20 Section 2. This act shall take effect January 1, 1978.
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