PRINTER'S NO. 3027
No. 2370 Session of 1978
INTRODUCED BY DORR, BERSON, ANDERSON, A. C. FOSTER JR., ZWIKL,
MELUSKEY, MEBUS, YOHN, GEESEY, VROON, E. H. SMITH, MOEHLMANN
AND BRUNNER, APRIL 12, 1978
REFERRED TO COMMITTEE ON FINANCE, APRIL 12, 1978
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 additional exclusions from
11 compensation for personal income tax purposes.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Clause (d) of section 301, act of March 4, 1971
15 (P.L.6, No.2), known as the "Tax Reform Code of 1971," added
16 August 31, 1971 (P.L.362, No.93), and amended May 9, 1972
17 (P.L.273, No.66), is amended to read:
18 Section 301. Definitions.--The following words, terms and
19 phrases when used in this article shall have the meaning
20 ascribed to them in this section except where the context
21 clearly indicates a different meaning. Any reference in this
22 article to the Internal Revenue Code shall include the Internal
1 Revenue Code of 1954, as amended to the date on which this
2 article is effective.
3 * * *
4 (d) "Compensation" means and shall include salaries, wages,
5 commissions, bonuses and incentive payments whether based on
6 profits or otherwise, fees, tips and similar remuneration
7 received for services rendered, whether directly or through an
8 agent, and whether in cash or in property.
9 The term "compensation" shall not mean or include: (i)
10 periodic payments for sickness and disability other than regular
11 wages received during a period of sickness or disability; or
12 (ii) disability, retirement or other payments arising under
13 workmen's compensation acts, occupational disease acts and
14 similar legislation by any government; or (iii) payments:
15 (A) commonly recognized as old age or retirement
16 benefits paid to persons retired from service after reaching
17 a specific age or after a stated period of employment;
18 (B) made by employers to employees of all of such
19 employees' pension benefits when the employer terminates the
20 pension program; or
21 (C) made by employers to employees of pension benefits
22 when the employer terminates the employee's position; or
23 (iv) payments commonly known as public assistance, or
24 unemployment compensation payments by any governmental agency;
25 or (v) payments to reimburse actual expenses; or (vi) payments
26 made by employers or labor unions for programs covering
27 hospitalization, sickness, disability or death, supplemental
28 unemployment benefits, strike benefits, social security and
29 retirement; or (vii) any compensation received by United States
30 servicemen serving in a combat zone.
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1 * * *
2 Section 2. This act shall take effect immediately and shall
3 be retroactive to September 1, 1974.
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