PRIOR PRINTER'S NOS. 1804, 1857, 1868, PRINTER'S NO. 1966
1901, 1910
No. 2 Session of 2000
INTRODUCED BY SALVATORE, LOEPER, JUBELIRER, TILGHMAN, WAUGH,
RHOADES, LEMMOND, THOMPSON, DENT, HOLL, WENGER, BRIGHTBILL,
ROBBINS, WAGNER AND BOSCOLA, MARCH 20, 2000
SENATE AMENDMENTS TO HOUSE AMENDMENTS, MAY 16, 2000
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 sales and use tax
11 definitions and exclusions, for personal income tax
12 definitions and poverty provisions, for corporate net income
13 tax definitions and for capital stock franchise tax
14 imposition and small shows; providing credits against bank
15 shares tax and mutual thrift institutions tax; further
16 providing for limitation of economic revitalization tax
17 credits; providing for emergency technology and biotechnology
18 tax benefit transfers, for family caregiver tax credits and
19 for child-care tax credits; further providing for inheritance
20 tax imposition, exclusions and estate tax provisions;
21 providing for homeowners tax rebates; making an
22 appropriation; and making a repeal.
23 AMENDING THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN <--
24 ACT RELATING TO TAX REFORM AND STATE TAXATION BY CODIFYING
25 AND ENUMERATING CERTAIN SUBJECTS OF TAXATION AND IMPOSING
26 TAXES THEREON; PROVIDING PROCEDURES FOR THE PAYMENT,
27 COLLECTION, ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING
28 FOR TAX CREDITS IN CERTAIN CASES; CONFERRING POWERS AND
29 IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN
30 EMPLOYERS, FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS
31 AND OTHER ENTITIES; PRESCRIBING CRIMES, OFFENSES AND
32 PENALTIES," AMENDING AND ADDING DEFINITIONS RELATED TO SALES
1 TAX; FURTHER PROVIDING FOR THE IMPOSITION OF, EXCLUSIONS FROM
2 AND THE REFUND OF SALES TAX; EXPANDING ELIGIBILITY FOR THE
3 SPECIAL POVERTY PROVISIONS FOR PERSONAL INCOME TAX; REVISING
4 CAPITAL STOCK FRANCHISE TAX PROVISIONS TO REDUCE THE RATES OF
5 TAXATION, TO ELIMINATE THE MINIMUM TAX, TO CONTINUE THE
6 PROVISIONS FOR THE CALCULATION OF THE MANUFACTURING,
7 PROCESSING, RESEARCH AND DEVELOPMENT EXEMPTIONS, TO FURTHER
8 PROVIDE FOR CAPITAL STOCK FRANCHISE TAX EXEMPTIONS AND
9 EXCLUSIONS AND TO PROVIDE FOR ITS PHASE OUT; FURTHER
10 PROVIDING FOR CREDITS AGAINST THE INSURANCE PREMIUMS TAX
11 ASSESSMENTS; PROVIDING FOR THE GROSS RECEIPTS TAX RELATING TO
12 CERTAIN TELEPHONE SALES AND SERVICES AND FOR PUBLIC UTILITY
13 REALTY TAX TRANSITION IMPACT LIMITATIONS; FURTHER PROVIDING
14 FOR ELIGIBILITY FOR MALT BEVERAGE TAX CREDITS; ADDING AN
15 INHERITANCE TAX DEFINITION; REDUCING AND REVISING THE RATES
16 OF INHERITANCE TAX; PROVIDING A LIMITED REBATE PROGRAM FOR
17 HOMEOWNERS; CHANGING THE DISTRIBUTION OF TAX REVENUE RECEIVED
18 BY THE STATE RACING FUND; AND MAKING REPEALS.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 201(k), (o) and (jj) of the act of March <--
22 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
23 amended or added August 4, 1991 (P.L.97, No.22), May 7, 1997
24 (P.L.85, No.7) and April 23, 1998 (P.L.239, No.45), are amended
25 to read:
26 Section 201. Definitions.--The following words, terms and
27 phrases when used in this Article II shall have the meaning
28 ascribed to them in this section, except where the context
29 clearly indicates a different meaning:
30 * * *
31 (k) "Sale at retail."
32 (1) Any transfer, for a consideration, of the ownership,
33 custody or possession of tangible personal property, including
34 the grant of a license to use or consume whether such transfer
35 be absolute or conditional and by whatsoever means the same
36 shall have been effected.
37 (2) The rendition of the service of printing or imprinting
38 of tangible personal property for a consideration for persons
20000S0002B1966 - 2 -
1 who furnish, either directly or indirectly the materials used in
2 the printing or imprinting.
3 (3) The rendition for a consideration of the service of--
4 (i) Washing, cleaning, waxing, polishing or lubricating of
5 motor vehicles of another, whether or not any tangible personal
6 property is transferred in conjunction therewith; and
7 (ii) Inspecting motor vehicles pursuant to the mandatory
8 requirements of "The Vehicle Code."
9 (4) The rendition for a consideration of the service of
10 repairing, altering, mending, pressing, fitting, dyeing,
11 laundering, drycleaning or cleaning tangible personal property
12 other than wearing apparel or shoes, or applying or installing
13 tangible personal property as a repair or replacement part of
14 other tangible personal property except wearing apparel or shoes
15 for a consideration, whether or not the services are performed
16 directly or by any means other than by coin-operated self-
17 service laundry equipment for wearing apparel or household goods
18 and whether or not any tangible personal property is transferred
19 in conjunction therewith, except such services as are rendered
20 in the construction, reconstruction, remodeling, repair or
21 maintenance of real estate: Provided, however, That this
22 subclause shall not be deemed to impose tax upon such services
23 in the preparation for sale of new items which are excluded from
24 the tax under clause (26) of section 204, or upon diaper
25 service.
26 (8) Any retention of possession, custody or a license to use
27 or consume tangible personal property or any further obtaining
28 of services described in subclauses (2), (3) and (4) of this
29 clause pursuant to a rental or service contract or other
30 arrangement (other than as security).
20000S0002B1966 - 3 -
1 The term "sale at retail" shall not include (i) any such
2 transfer of tangible personal property or rendition of services
3 for the purpose of resale, or (ii) such rendition of services or
4 the transfer of tangible personal property including, but not
5 limited to, machinery and equipment and parts therefor and
6 supplies to be used or consumed by the purchaser directly in the
7 operations of--
8 (A) The manufacture of tangible personal property.
9 (B) Farming, dairying, agriculture, horticulture or
10 floriculture when engaged in as a business enterprise. The term
11 "farming" shall include the propagation and raising of ranch
12 raised fur-bearing animals and the propagation of game birds for
13 commercial purposes by holders of propagation permits issued
14 under 34 Pa.C.S. (relating to game) and the propagation and
15 raising of horses to be used exclusively for commercial racing
16 activities.
17 (C) The producing, delivering or rendering of a public
18 utility service, or in constructing, reconstructing, remodeling,
19 repairing or maintaining the facilities which are directly used
20 in producing, delivering or rendering such service.
21 (D) Processing as defined in clause (d) of this section.
22 The exclusions provided in paragraphs (A), (B), (C) and (D)
23 shall not apply to any vehicle required to be registered under
24 The Vehicle Code, except those vehicles used directly by a
25 public utility engaged in business as a common carrier; to
26 maintenance facilities; or to materials, supplies or equipment
27 to be used or consumed in the construction, reconstruction,
28 remodeling, repair or maintenance of real estate other than
29 directly used machinery, equipment, parts or foundations
30 therefor that may be affixed to such real estate.
20000S0002B1966 - 4 -
1 The exclusions provided in paragraphs (A), (B), (C) and (D)
2 shall not apply to tangible personal property or services to be
3 used or consumed in managerial sales or other nonoperational
4 activities, nor to the purchase or use of tangible personal
5 property or services by any person other than the person
6 directly using the same in the operations described in
7 paragraphs (A), (B), (C) and (D) herein.
8 The exclusion provided in paragraph (C) shall not apply to
9 (i) construction materials, supplies or equipment used to
10 construct, reconstruct, remodel, repair or maintain facilities
11 not used directly by the purchaser in the production, delivering
12 or rendition of public utility service, (ii) construction
13 materials, supplies or equipment used to construct, reconstruct,
14 remodel, repair or maintain a building, road or similar
15 structure, or (iii) tools and equipment used but not installed
16 in the maintenance of facilities used directly in the
17 production, delivering or rendition of a public utility service.
18 The exclusions provided in paragraphs (A), (B), (C) and (D)
19 shall not apply to the services enumerated in clauses (k)(11)
20 through (18) and (w) through (kk), except that the exclusion
21 provided in this subclause for farming, dairying and agriculture
22 shall apply to the service enumerated in clause (z).
23 (9) Where tangible personal property or services are
24 utilized for purposes constituting a "sale at retail" and for
25 purposes excluded from the definition of "sale at retail," it
26 shall be presumed that such tangible personal property or
27 services are utilized for purposes constituting a "sale at
28 retail" and subject to tax unless the user thereof proves to the
29 department that the predominant purposes for which such tangible
30 personal property or services are utilized do not constitute a
20000S0002B1966 - 5 -
1 "sale at retail."
2 (10) The term "sale at retail" with respect to "liquor" and
3 "malt or brewed beverages" shall include the sale of "liquor" by
4 any "Pennsylvania liquor store" to any person for any purpose,
5 and the sale of "malt or brewed beverages" by a "manufacturer of
6 malt or brewed beverages," "distributor" or "importing
7 distributor" to any person for any purpose, except sales by a
8 "manufacturer of malt or brewed beverages" to a "distributor" or
9 "importing distributor" or sales by an "importing distributor"
10 to a "distributor" within the meaning of the "Liquor Code." The
11 term "sale at retail" shall not include any sale of "malt or
12 brewed beverages" by a "retail dispenser" or any sale of
13 "liquor" or "malt or brewed beverages" by a person holding a
14 "retail liquor license" within the meaning of and pursuant to
15 the provisions of the "Liquor Code," but shall include any sale
16 of "liquor" or "malt or brewed beverages" other than pursuant to
17 the provisions of the "Liquor Code."
18 (11) The rendition for a consideration of lobbying services.
19 (12) The rendition for a consideration of adjustment
20 services, collection services or credit reporting services.
21 (13) The rendition for a consideration of secretarial or
22 editing services.
23 (14) The rendition for a consideration of disinfecting or
24 pest control services, building maintenance or cleaning
25 services.
26 (15) The rendition for a consideration of employment agency
27 services or help supply services.
28 [(17) The rendition for a consideration of lawn care
29 service.]
30 (18) The rendition for a consideration of self-storage
20000S0002B1966 - 6 -
1 service.
2 * * *
3 (o) "Use."
4 (1) The exercise of any right or power incidental to the
5 ownership, custody or possession of tangible personal property
6 and shall include, but not be limited to transportation, storage
7 or consumption.
8 (2) The obtaining by a purchaser of the service of printing
9 or imprinting of tangible personal property when such purchaser
10 furnishes, either directly or indirectly, the articles used in
11 the printing or imprinting.
12 (3) The obtaining by a purchaser of the services of (i)
13 washing, cleaning, waxing, polishing or lubricating of motor
14 vehicles whether or not any tangible personal property is
15 transferred to the purchaser in conjunction with such services,
16 and (ii) inspecting motor vehicles pursuant to the mandatory
17 requirements of "The Vehicle Code."
18 (4) The obtaining by a purchaser of the service of
19 repairing, altering, mending, pressing, fitting, dyeing,
20 laundering, drycleaning or cleaning tangible personal property
21 other than wearing apparel or shoes or applying or installing
22 tangible personal property as a repair or replacement part of
23 other tangible personal property other than wearing apparel or
24 shoes, whether or not the services are performed directly or by
25 any means other than by means of coin-operated self-service
26 laundry equipment for wearing apparel or household goods, and
27 whether or not any tangible personal property is transferred to
28 the purchaser in conjunction therewith, except such services as
29 are obtained in the construction, reconstruction, remodeling,
30 repair or maintenance of real estate: Provided, however, That
20000S0002B1966 - 7 -
1 this subclause shall not be deemed to impose tax upon such
2 services in the preparation for sale of new items which are
3 excluded from the tax under clause (26) of section 204, or upon
4 diaper service: And provided further, That the term "use" shall
5 not include--
6 (A) Any tangible personal property acquired and kept,
7 retained or over which power is exercised within this
8 Commonwealth on which the taxing of the storage, use or other
9 consumption thereof is expressly prohibited by the Constitution
10 of the United States or which is excluded from tax under other
11 provisions of this article.
12 (B) The use or consumption of tangible personal property,
13 including but not limited to machinery and equipment and parts
14 therefor, and supplies or the obtaining of the services
15 described in subclauses (2), (3) and (4) of this clause directly
16 in the operations of--
17 (i) The manufacture of tangible personal property.
18 (ii) Farming, dairying, agriculture, horticulture or
19 floriculture when engaged in as a business enterprise. The term
20 "farming" shall include the propagation and raising of ranch-
21 raised furbearing animals and the propagation of game birds for
22 commercial purposes by holders of propagation permits issued
23 under 34 Pa.C.S. (relating to game) and the propagation and
24 raising of horses to be used exclusively for commercial racing
25 activities.
26 (iii) The producing, delivering or rendering of a public
27 utility service, or in constructing, reconstructing, remodeling,
28 repairing or maintaining the facilities which are directly used
29 in producing, delivering or rendering such service.
30 (iv) Processing as defined in subclause (d) of this section.
20000S0002B1966 - 8 -
1 The exclusions provided in subparagraphs (i), (ii), (iii) and
2 (iv) shall not apply to any vehicle required to be registered
3 under The Vehicle Code except those vehicles directly used by a
4 public utility engaged in the business as a common carrier; to
5 maintenance facilities; or to materials, supplies or equipment
6 to be used or consumed in the construction, reconstruction,
7 remodeling, repair or maintenance of real estate other than
8 directly used machinery, equipment, parts or foundations
9 therefor that may be affixed to such real estate. The exclusions
10 provided in subparagraphs (i), (ii), (iii) and (iv) shall not
11 apply to tangible personal property or services to be used or
12 consumed in managerial sales or other nonoperational activities,
13 nor to the purchase or use of tangible personal property or
14 services by any person other than the person directly using the
15 same in the operations described in subparagraphs (i), (ii),
16 (iii) and (iv).
17 The exclusion provided in subparagraph (iii) shall not apply
18 to (A) construction materials, supplies or equipment used to
19 construct, reconstruct, remodel, repair or maintain facilities
20 not used directly by the purchaser in the production, delivering
21 or rendition of public utility service or (B) tools and
22 equipment used but not installed in the maintenance of
23 facilities used directly in the production, delivering or
24 rendition of a public utility service.
25 The exclusion provided in subparagraphs (i), (ii), (iii) and
26 (iv) shall not apply to the services enumerated in clauses
27 (o)(9) through (16) and (w) through (kk), except that the
28 exclusion provided in subparagraph (ii) for farming, dairying
29 and agriculture shall apply to the service enumerated in clause
30 (z).
20000S0002B1966 - 9 -
1 (5) Where tangible personal property or services are
2 utilized for purposes constituting a "use," as herein defined,
3 and for purposes excluded from the definition of "use," it shall
4 be presumed that such property or services are utilized for
5 purposes constituting a "sale at retail" and subject to tax
6 unless the user thereof proves to the department that the
7 predominant purposes for which such property or services are
8 utilized do not constitute a "sale at retail."
9 (6) The term "use" with respect to "liquor" and "malt or
10 brewed beverages" shall include the purchase of "liquor" from
11 any "Pennsylvania liquor store" by any person for any purpose
12 and the purchase of "malt or brewed beverages" from a
13 "manufacturer of malt or brewed beverages," "distributor" or
14 "importing distributor" by any person for any purpose, except
15 purchases from a "manufacturer of malt or brewed beverages" by a
16 "distributor" or "importing distributor," or purchases from an
17 "importing distributor" by a "distributor" within the meaning of
18 the "Liquor Code." The term "use" shall not include any purchase
19 of "malt or brewed beverages" from a "retail dispenser" or any
20 purchase of "liquor" or "malt or brewed beverages" from a person
21 holding a "retail liquor license" within the meaning of and
22 pursuant to the provisions of the "Liquor Code," but shall
23 include the exercise of any right or power incidental to the
24 ownership, custody or possession of "liquor" or "malt or brewed
25 beverages" obtained by the person exercising such right or power
26 in any manner other than pursuant to the provisions of the
27 "Liquor Code."
28 (7) The use of tangible personal property purchased at
29 retail upon which the services described in subclauses (2), (3)
30 and (4) of this clause have been performed shall be deemed to be
20000S0002B1966 - 10 -
1 a use of said services by the person using said property.
2 (8) The term "use" shall not include the providing of a
3 motor vehicle to a nonprofit private or public school to be used
4 by such a school for the sole purpose of driver education.
5 (9) The obtaining by the purchaser of lobbying services.
6 (10) The obtaining by the purchaser of adjustment services,
7 collection services or credit reporting services.
8 (11) The obtaining by the purchaser of secretarial or
9 editing services.
10 (12) The obtaining by the purchaser of disinfecting or pest
11 control services, building maintenance or cleaning services.
12 (13) The obtaining by the purchaser of employment agency
13 services or help supply services.
14 [(15) The obtaining by the purchaser of lawn care service.]
15 (16) The obtaining by the purchaser of self-storage service.
16 (17) The obtaining by a construction contractor of tangible
17 personal property or services provided to tangible personal
18 property which will be used pursuant to a construction contract
19 whether or not the tangible personal property or services are
20 transferred.
21 * * *
22 [(jj) "Lawn care service." Providing services for lawn
23 upkeep, including, but not limited to, fertilizing, lawn mowing,
24 shrubbery trimming or other lawn treatment services.]
25 * * *
26 Section 2. Section 204(50) of the act, added June 16, 1994
27 (P.L.279, No.48), is amended and the section is amended by
28 adding clauses to read:
29 Section 204. Exclusions from Tax.--The tax imposed by
30 section 202 shall not be imposed upon
20000S0002B1966 - 11 -
1 * * *
2 (50) The sale at retail or use of [subscriptions for]
3 magazines. The term "magazine" refers to a periodical published
4 at regular intervals not exceeding three months and which are
5 circulated among the general public, containing matters of
6 general interest and reports of current events published for the
7 purpose of disseminating information of a public character or
8 devoted to literature, the sciences, art or some special
9 industry. This exclusion shall also include any printed
10 advertising material circulated with the periodical or
11 publication regardless of where or by whom the printed
12 advertising material was produced.
13 * * *
14 (58) The sale at retail or use of books. The term "book"
15 refers to any written or printed work of fiction or nonfiction
16 which has been published and circulated among the general public
17 containing matters of general interest and published for the
18 purpose of disseminating information of a public character or
19 devoted to literature, the sciences, art or some special
20 industry. The term "book" shall include, but is not limited to,
21 comic books, game books, dictionaries and instruction books.
22 (59) The sale at retail or use of a personal computer to an
23 individual purchaser during the exclusion period for non-
24 business use, but not including computer leasing, rental, repair
25 or alteration. For purposes of this clause, the phrase
26 "exclusion period" means the period of time from August 6, 2000,
27 to and including, August 13, 2000, and from February 18, 2001,
28 to and including, February 25, 2001. For purposes of this
29 clause, the phrase "personal computer" means a laptop, desktop,
30 or tower computer system, including all hardware and software
20000S0002B1966 - 12 -
1 sold together in the same transaction, where the computer system
2 includes, at a minimum, a central processing unit, random access
3 memory, a storage drive, a display monitor and a keyboard,
4 except that the term shall not include minicomputers, mainframe
5 computers, network servers, local area network hubs, routers and
6 cabling, hardware word processors, personal digital assistants,
7 graphical calculators, hand-held computers, game consoles, Web
8 TV consoles, network operating systems, multiple-user licensed
9 software and hardware, separate sales at retail or use of
10 internal or external components and separate sales of add-on
11 components. For purposes of this clause, "purchaser" means an
12 individual who pays the purchase price and takes delivery during
13 the exclusion period or who places an order and pays the
14 purchase price, even if delivery takes place after the exclusion
15 period. This clause expires on March 1, 2001.
16 Section 3. Section 301(d) of the act, amended April 23, 1998
17 (P.L.239, No.45), is amended and the section is amended by
18 adding a subsection to read:
19 Section 301. Definitions.--The following words, terms and
20 phrases when used in this article shall have the meaning
21 ascribed to them in this section except where the context
22 clearly indicates a different meaning. Unless specifically
23 provided otherwise, any reference in this article to the
24 Internal Revenue Code shall include the Internal Revenue Code of
25 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.), as amended to
26 January 1, 1997:
27 * * *
28 (c.1a) "Child and dependent care expenses" means the total
29 of the amounts calculated under subclauses (i) and (ii) as
30 follows:
20000S0002B1966 - 13 -
1 (i) Unreimbursed employment-related expenses that are used
2 in calculating the Federal child and dependent care credit under
3 section 21 of the Internal Revenue Code of 1986 (Public Law 99-
4 514, 26 U.S.C. § 1 et seq.), without regard to the limitations
5 in section 21(c) of the Internal Revenue Code of 1986.
6 (ii) Amounts deemed to be unreimbursed child and dependent
7 care expenses for qualified individuals described in section
8 21(b)(1) of the Internal Revenue Code of 1986: Provided, That
9 the amount deemed to be unreimbursed child and dependent care
10 expenses shall be equal to one hundred fifty dollars ($150) per
11 month for each qualified individual, reduced by any child and
12 dependent care expenses included in calculating the amount under
13 subclause (i).
14 * * *
15 (d) "Compensation" means and shall include salaries, wages,
16 commissions, bonuses and incentive payments whether based on
17 profits or otherwise, fees, tips and similar remuneration
18 received for services rendered, whether directly or through an
19 agent, and whether in cash or in property.
20 The term "compensation" shall not mean or include: (i)
21 periodic payments for sickness and disability other than regular
22 wages received during a period of sickness or disability; or
23 (ii) disability, retirement or other payments arising under
24 workmen's compensation acts, occupational disease acts and
25 similar legislation by any government; or (iii) payments
26 commonly recognized as old age or retirement benefits paid to
27 persons retired from service after reaching a specific age or
28 after a stated period of employment; or (iv) payments commonly
29 known as public assistance, or unemployment compensation
30 payments by any governmental agency; or (v) payments to
20000S0002B1966 - 14 -
1 reimburse actual expenses; or (vi) payments made by employers or
2 labor unions, including payments made pursuant to a cafeteria
3 plan qualifying under section 125 of the Internal Revenue Code
4 of 1986 (Public Law 99-514, 26 U.S.C. § 125), for employe
5 benefit programs covering hospitalization, sickness, disability
6 or death, supplemental unemployment benefits or strike benefits:
7 Provided, That the program does not discriminate in favor of
8 highly compensated individuals as to eligibility to participate,
9 payments or program benefits; or (vii) any compensation received
10 by United States servicemen serving in a combat zone; or (viii)
11 payments received by a foster parent for in-home care of foster
12 children from an agency of the Commonwealth or a political
13 subdivision thereof or an organization exempt from Federal tax
14 under section 501(c)(3) of the Internal Revenue Code of 1954
15 which is licensed by the Commonwealth or a political subdivision
16 thereof as a placement agency; or (ix) payments made by
17 employers or labor unions for employe benefit programs covering
18 social security or retirement; or (x) personal use of an
19 employer's owned or leased property or of employer-provided
20 services; or (xi) any fringe benefit that qualifies as a
21 qualified transportation fringe under section 132(f) of the
22 Internal Revenue Code of 1986, as amended at any time: Provided,
23 That the limits on exclusion from compensation shall be the same
24 limits imposed for Federal tax purposes.
25 * * *
26 Section 4. Section 304(d)(1) of the act, amended May 12,
27 1999 (P.L.26, No.4), is amended to read:
28 Section 304. Special Tax Provisions for Poverty.--* * *
29 (d) Any claim for special tax provisions hereunder shall be
30 determined in accordance with the following:
20000S0002B1966 - 15 -
1 (1) If the poverty income of the claimant during an entire
2 taxable year is [six thousand five hundred dollars ($6,500)]
3 seven thousand dollars ($7,000) or less, or, in the case of a
4 married claimant, if the joint poverty income of the claimant
5 and the claimant's spouse during an entire taxable year is
6 [thirteen thousand dollars ($13,000)] fourteen thousand dollars
7 (14,000) or less, the claimant shall be entitled to a refund or
8 forgiveness of any moneys which have been paid over to (or would
9 except for the provisions of this act be payable to) the
10 Commonwealth under the provisions of this article, with an
11 additional income allowance of [six thousand five hundred
12 dollars ($6,500) if claimed by married claimants or of six
13 thousand five hundred dollars ($6,500) if claimed by a single
14 claimant for the first additional dependent and an additional
15 income allowance of six thousand five hundred dollars ($6,500)]
16 seven thousand dollars ($7,000) for each additional dependent of
17 the claimant. For purposes of this subsection, a claimant shall
18 not be considered to be married if:
19 (i) The claimant and the claimant's spouse file separate
20 returns; and
21 (ii) The claimant and the claimant's spouse live apart at
22 all times during the last six months of the taxable year or are
23 separated pursuant to a written separation agreement.
24 * * *
25 Section 5. The act is amended by adding a section to read:
26 Section 314.1. Child and Dependent Care Tax Credit.--(a) A
27 taxpayer shall be allowed a credit against the tax due under
28 this article for child and dependent care expenses as calculated
29 under this section.
30 (b) The credit shall be equal to the child and dependent
20000S0002B1966 - 16 -
1 care expenses incurred by the taxpayer or the taxpayer's spouse
2 multiplied by the rate of tax specified in section 302.
3 (c) The credit provided by this section shall not exceed the
4 amount of tax otherwise due under this article.
5 Section 6. Section 401(3)2(a)(9) of the act, amended May 12,
6 1999 (P.L.26, No.4), is amended to read:
7 Section 401. Definitions.--The following words, terms, and
8 phrases, when used in this article, shall have the meaning
9 ascribed to them in this section, except where the context
10 clearly indicates a different meaning:
11 * * *
12 (3) "Taxable income." * * *
13 2. In case the entire business of any corporation, other
14 than a corporation engaged in doing business as a regulated
15 investment company as defined by the Internal Revenue Code of
16 1954, as amended, is not transacted within this Commonwealth,
17 the tax imposed by this article shall be based upon such portion
18 of the taxable income of such corporation for the fiscal or
19 calendar year, as defined in subclause 1 hereof, and may be
20 determined as follows:
21 (a) Division of Income.
22 * * *
23 (9) (A) Except as provided in subparagraph (B)[, all]:
24 (i) All business income shall be apportioned to this State
25 by multiplying the income by a fraction, the numerator of which
26 is the property factor plus the payroll factor plus three times
27 the sales factor, and the denominator of which is five.
28 (ii) For tax years beginning after December 31, 2000, all
29 business income shall be apportioned to this State by
30 multiplying the income by the sales factor.
20000S0002B1966 - 17 -
1 (B) For purposes of apportionment of the capital stock -
2 franchise tax as provided in section 602 of Article VI of this
3 act, the apportionment fraction shall be the property factor
4 plus the payroll factor plus the sales factor as the numerator,
5 and the denominator shall be three.
6 * * *
7 Section 7. Section 602(a), (b), (e), (f), (g), (h) and (i)
8 of the act, amended May 12, 1999 (P.L.26, No.4) and December 15,
9 1999 (P.L.926, No.63), are amended to read:
10 Section 602. Imposition of Tax.--(a) That every domestic
11 entity from which a report is required under section 601 hereof,
12 shall be subject to, and pay to the department annually, a tax
13 which is [the greater of (i)] the amount computed by multiplying
14 each dollar of the capital stock value as defined in section
15 601(a) by the appropriate rate of tax as set forth in subsection
16 (h); [or (ii) the minimum tax set forth in subsection (i),]
17 except that any domestic entity or company subject to the tax
18 prescribed herein may elect to compute and pay its tax under and
19 in accordance with the provisions of subsection (b) of this
20 section 602: Provided, That[, except for the imposition of the
21 minimum tax set forth in subsection (i),] the provisions of this
22 section shall not apply to the taxation of the capital stock of
23 entities organized for manufacturing, processing, research or
24 development purposes, which is invested in and actually and
25 exclusively employed in carrying on manufacturing, processing,
26 research or development within the State, except such entities
27 as enjoy and exercise the right of eminent domain, but every
28 entity organized for the purpose of manufacturing, processing,
29 research or development except such entities as enjoy and
30 exercise the right of eminent domain shall pay the State tax of
20000S0002B1966 - 18 -
1 [the greater of (i)] the amount computed by multiplying each
2 dollar of the capital stock value as defined in section 601(a)
3 by the appropriate rate of tax as set forth in subsection (h)[;
4 or (ii) the minimum tax set forth in subsection (i),] upon such
5 proportion of its capital stock, if any, as may be invested in
6 any property or business not strictly incident or appurtenant to
7 the manufacturing, processing, research or development business,
8 in addition to the local taxes assessed upon its property in the
9 district where located, it being the object of this provision to
10 relieve from State taxation[, except for imposition of the
11 minimum tax set forth in subsection (i),] only so much of the
12 capital stock as is invested purely in the manufacturing,
13 processing, research or development plant and business: and
14 Provided further, That[, except for the imposition of the
15 minimum tax set forth in subsection (i),] the provisions of this
16 section shall not apply to the taxation of so much of the
17 capital stock value attributable to student loan assets owned or
18 held by an entity created for the securitization of student
19 loans or by a trustee on its behalf.
20 (b) (1) Every foreign entity from which a report is
21 required under section 601 hereof, shall be subject to and pay
22 to the department annually, a franchise tax which is [the
23 greater of (i)] the amount computed by multiplying each dollar
24 of the capital stock value as defined in section 601(a) by the
25 appropriate rate of tax as set forth in subsection (h)[; or (ii)
26 the minimum tax set forth in subsection (i),] upon a taxable
27 value to be determined in the following manner. The capital
28 stock value shall be ascertained in the manner prescribed in
29 section 601(a) of this article. The taxable value shall then be
30 determined by employing the relevant apportionment factors set
20000S0002B1966 - 19 -
1 forth in Article IV: Provided, That the manufacturing,
2 processing, research and development exemptions contained under
3 section 602(a) shall also apply to foreign corporations. In
4 determining the relevant apportionment factors, the following
5 shall apply:
6 (i) for [all] taxable years [other than specifically set
7 forth in subclause (ii)] beginning before January 1, 1999, the
8 numerator of the property, payroll or sales factors shall not
9 include any property, payroll or sales attributable to
10 manufacturing, processing, research or development activities in
11 the Commonwealth;
12 (ii) for [the] taxable years beginning after December 31,
13 1998, [and beginning before January 1, 2001,] the numerator of
14 the property or payroll factors shall not include any property
15 or payroll attributable to manufacturing, processing, research
16 or development activities in the Commonwealth, and any property
17 or payroll attributable to manufacturing, processing, research
18 or development activities outside of the Commonwealth shall also
19 be excluded from the numerator of the property or payroll
20 factors. [Except for the imposition of the minimum tax set forth
21 in subsection (i), the] The provisions of this section shall not
22 apply to the taxation of so much of the capital stock value
23 attributable to student loan assets owned or held by an entity
24 created for the securitization of student loans or by a trustee
25 on its behalf. Any foreign corporation, joint-stock association,
26 limited partnership or company subject to the tax prescribed
27 herein may elect to compute and pay its tax under section
28 602(a): Provided, That any foreign corporation, joint-stock
29 association, limited partnership or company electing to compute
30 and pay its tax under section 602(a) shall be treated as if it
20000S0002B1966 - 20 -
1 were a domestic corporation for the purpose of determining which
2 of its assets are exempt from taxation and for the purpose of
3 determining the proportion of the value of its capital stock
4 which is subject to taxation.
5 (2) The provisions of this article shall apply to the
6 taxation of entities organized for manufacturing, processing,
7 research or development purposes, but shall not apply to such
8 entities as enjoy and exercise the right of eminent domain.
9 * * *
10 (e) Any holding company subject to the capital stock tax or
11 the franchise tax imposed by this section may elect to compute
12 the capital stock or franchise tax by applying the rate of tax
13 provided in subsection (h) to ten per cent of the capital stock
14 value as defined in section 601(a)[, but in no case shall the
15 tax so computed be less than the minimum tax set forth in
16 subsection (i)]. If exercised, this election shall be in lieu of
17 any other apportionment or allocation to which such company
18 would otherwise be entitled.
19 (f) Every domestic corporation and every foreign corporation
20 (i) registered to do business in Pennsylvania; (ii) which
21 maintains an office in Pennsylvania; (iii) which has filed a
22 timely election to be taxed as a regulated investment company
23 with the Federal Government; and (iv) which duly qualifies to be
24 taxed as a regulated investment company under the provisions of
25 the Internal Revenue Code of 1954 as amended, shall be taxed as
26 a regulated investment company and shall be subject to the
27 capital stock or franchise tax imposed by section 602, except as
28 provided in clause (2)(E) in either case for the privilege of
29 having an office in Pennsylvania, which tax shall be computed
30 pursuant to the provisions of this subsection in lieu of all
20000S0002B1966 - 21 -
1 other provisions of this section 602. The tax shall be in an
2 amount which is [the greater of the minimum tax set forth in
3 subsection (i) or] the sum of the amounts determined pursuant to
4 clauses (1) and (2):
5 (1) The amount determined pursuant to this clause shall be
6 seventy-five dollars ($75) times that number which is the result
7 of dividing the net asset value of the regulated investment
8 company by one million, rounded to the nearest multiple of
9 seventy-five dollars ($75). Net asset value shall be determined
10 by adding the monthly net asset values as of the last day of
11 each month during the taxable period and dividing the total sum
12 by the number of months involved. Each such monthly net asset
13 value shall be the actual market value of all assets owned
14 without any exemptions or exclusions, less all liabilities,
15 debts and other obligations.
16 (2) The amount determined pursuant to this clause shall be
17 the amount which is the result of multiplying the rate of
18 taxation applicable for purposes of the personal income tax
19 during the same taxable year times the apportioned undistributed
20 personal income tax income of the regulated investment company.
21 For the purposes of this clause:
22 (A) Personal income tax income shall mean income to the
23 extent enumerated and classified in section 303.
24 (B) Undistributed personal income tax income shall mean all
25 personal income tax income other than personal income tax income
26 undistributed on account of the capital stock or foreign
27 franchise tax, less all personal income tax income distributed
28 to shareholders. At the election of the company, income
29 distributed after the close of a taxable year, but deemed
30 distributed during the taxable year for Federal income tax
20000S0002B1966 - 22 -
1 purposes, shall be deemed distributed during that year for
2 purposes of this clause. If a company in a taxable year has both
3 current income and income accumulated from a prior year,
4 distributions during the year shall be deemed to have been made
5 first from current income.
6 (C) Undistributed personal income tax income shall be
7 apportioned to Pennsylvania by a fraction, the numerator of
8 which is all income distributed during the taxable period to
9 shareholders who are resident individuals, estates or trusts and
10 the denominator of which is all income distributed during the
11 taxable period. Resident trusts shall not include charitable,
12 pension or profit-sharing, or retirement trusts.
13 (D) Personal income tax income and other income of a company
14 shall each be deemed to be either distributed to shareholders or
15 undistributed in the proportion each category bears to all
16 income received by the company during the taxable year.
17 (E) No tax shall be imposed under this subsection for
18 taxable years beginning on or after January 1, 2004.
19 (g) In the event that a domestic or foreign entity is
20 required to file a report pursuant to section 601(b) on other
21 than an annual basis, the tax imposed by this section[,
22 including the minimum tax set forth in subsection (i),] shall be
23 prorated to reflect the portion of a taxable year for which the
24 report is filed by multiplying the tax liability by a fraction
25 equal to the number of days in the taxable year divided by three
26 hundred sixty-five days.
27 (h) The rate of tax for purposes of the capital stock and
28 franchise tax for taxable years beginning within the dates set
29 forth shall be as follows:
30 Taxable Year Regular Rate Surtax Total Rate
20000S0002B1966 - 23 -
1 January 1, 1971, to
2 December 31, 1986 10 mills 0 10 mills
3 January 1, 1987, to
4 December 31, 1987 9 mills 0 9 mills
5 January 1, 1988, to
6 December 31, 1990 9.5 mills 0 9.5 mills
7 January 1, 1991, to
8 December 31, 1991 11 mills 2 mills 13 mills
9 January 1, 1992, to
10 December 31, 1997 11 mills 1.75 mills 12.75 mills
11 January 1, 1998,
12 to December 31, 1998 11 mills .99 mills 11.99 mills
13 January 1, 1999, [and each
14 year thereafter]
15 to December 31, 1999 10.99 mills 0 10.99 mills
16 January 1, 2000,
17 to December 31, 2000 8.75 mills 0 8.75 mills
18 January 1, 2001,
19 to December 31, 2001 6.50 mills 0 6.50 mills
20 January 1, 2002,
21 to December 31, 2002 4.25 mills 0 4.25 mills
22 January 1, 2003,
23 to December 31, 2003 2 mills 0 2 mills
24 January 1, 2004, and
25 each year thereafter 0 0 0
26 (i) The minimum amount of capital stock and franchise tax
27 for the taxable years beginning within the dates set forth shall
28 be as follows:
29 Taxable Year Beginning Minimum Tax
30 January 1, 1971, to December 31, 1983 No minimum tax imposed
20000S0002B1966 - 24 -
1 January 1, 1984, to December 31, 1990 $75 minimum tax
2 January 1, 1991, to December 31, 1998 $300 minimum tax
3 January 1, 1999, [and each taxable year
4 thereafter]
5 to December 31, 1999 $200 minimum tax
6 January 1, 2000, and each taxable year
7 thereafter No minimum tax imposed
8 Section 8. Section 602.5 of the act, amended May 12, 1999
9 (P.L.26, No.4), is amended to read:
10 [Section 602.5. Shows and Flea Markets.--A corporation that
11 confines its activities in this Commonwealth during the course
12 of a calendar year to attendance at an organized "show" or "flea
13 market" for the purpose of exhibiting its goods and making sales
14 therefrom shall not be subject to the minimum tax imposed under
15 this article, based solely upon such attendance if limited to no
16 more than twenty days during the year, with no more than seven
17 days being consecutive.]
18 Section 9. The act is amended by adding a section to read:
19 Section 701.5. Qualified Businesses.--(a) For taxable years
20 that begin after December 31, 1998, an institution is a
21 qualified business under section 307 of the act of October 6,
22 1998 (P.L.705, No.92), known as the "Pennsylvania Keystone
23 Opportunity Zone Act"; and an institution may claim a credit
24 against the tax imposed by this article for the taxable year to
25 the extent of the tax liability for the amount of the taxable
26 shares attributable to a keystone opportunity zone in the
27 taxable year.
28 (b) The institution's tax liability for the amount of the
29 taxable shares attributable to a keystone opportunity zone shall
30 be determined by multiplying the amount of the taxable shares
20000S0002B1966 - 25 -
1 attributable to the keystone opportunity zone by the rate of tax
2 imposed under this article for the taxable year. The institution
3 shall compute the Pennsylvania taxable amount of its shares in
4 conformity with this article with no adjustments or subtractions
5 for the taxable amount of shares attributable to the keystone
6 opportunity zone.
7 (c) The determination of the amount of an institution's
8 taxable shares attributable to a keystone opportunity zone shall
9 be determined in conformity with this article and with specific
10 reference to the following:
11 (1) If the entire business of the institution in this
12 Commonwealth is transacted wholly within a keystone opportunity
13 zone, the amount of the taxable shares attributable to a
14 keystone opportunity zone shall consist of the Pennsylvania
15 taxable amount as determined under this article.
16 (2) If the entire business of the institution in this
17 Commonwealth is not wholly transacted within a keystone
18 opportunity zone, the amount of the taxable shares attributable
19 to a keystone opportunity zone shall be determined by
20 apportionment in accordance with a fraction, the numerator of
21 which is the sum of the payroll factor, the receipts factor and
22 the deposits factor, and the denominator of which is three.
23 (3) The payroll factor is a fraction, the numerator of which
24 is the total wages paid in a keystone opportunity zone during
25 the tax period and the denominator of which is the total wages
26 paid in this Commonwealth during the tax period. Wages are paid
27 in a keystone opportunity zone if paid to an employe having a
28 regular presence therein.
29 (4) The receipts factor is a fraction, the numerator of
30 which is total receipts located in a keystone opportunity zone
20000S0002B1966 - 26 -
1 and the denominator of which is the total receipts located in
2 this Commonwealth. Receipts do not include principal repayments
3 on loans or credit, travel and entertainment cards. Receipts
4 from sale or disposition of intangible and tangible property
5 include only the net gain therefrom. The location of receipts
6 shall be determined as follows:
7 (i) Receipts from loans are located in a keystone
8 opportunity zone if the place of origination of the loan is in a
9 keystone opportunity zone, or if the proceeds of the loan will
10 be used by the borrower to conduct activity within a keystone
11 opportunity zone, including, but not limited to, the conduct of
12 business activities in a keystone opportunity zone; the
13 construction, alteration or repair of real property located in a
14 keystone opportunity zone; or for the personal use of
15 individuals residing in a keystone opportunity zone.
16 (ii) All receipts from performance of services are located
17 in a keystone opportunity zone to the extent the services are
18 performed in the keystone opportunity zone. If services are
19 performed partly within a keystone opportunity zone and partly
20 outside a keystone opportunity zone, the receipts located in
21 each area shall be measured by the ratio which the time spent in
22 performing such services in a keystone opportunity zone bears to
23 the total time spent in performing such services in this
24 Commonwealth. Time spent in performing services in a keystone
25 opportunity zone is the time spent by employes having a regular
26 presence in the keystone opportunity zone in performing such
27 services.
28 (iii) Receipts from lease transactions are located in a
29 keystone opportunity zone if the leased property is deemed
30 located in a keystone opportunity zone.
20000S0002B1966 - 27 -
1 (iv) Interest or service charges, excluding merchant
2 discounts, from credit, travel and entertainment card
3 receivables and credit card holders' fees are located in a
4 keystone opportunity zone if the credit card holder, in the case
5 of an individual, resides in a keystone opportunity zone or, if
6 a corporation, if the corporation's commercial domicile is
7 located in a keystone opportunity zone.
8 (v) Interest, dividends and net gains from the sale or
9 disposition of intangibles, exclusive of those receipts
10 described elsewhere in this section, are located in a keystone
11 opportunity zone if the institution maintains an office in a
12 keystone opportunity zone which treats such intangibles as
13 assets on its books or records.
14 (vi) Fees or charges from the issuance of traveler's checks
15 and money orders are located in a keystone opportunity zone if
16 such traveler's checks or money orders are issued in a keystone
17 opportunity zone.
18 (vii) Receipts from sales of tangible property are located
19 in a keystone opportunity zone if the property is delivered or
20 shipped to a purchaser located in a keystone opportunity zone,
21 regardless of the F.O.B. point or other conditions of the sale.
22 (viii) All receipts not specifically treated under this
23 subsection are located in a keystone opportunity zone if the
24 greatest portion of the income-producing activities are
25 performed in a keystone opportunity zone, based on costs of
26 performance.
27 (5) The deposits factor is a fraction, the numerator of
28 which is the average value of deposits located in a keystone
29 opportunity zone during the taxable year and the denominator of
30 which is the average value of the total deposits in this
20000S0002B1966 - 28 -
1 Commonwealth during the taxable year. The average value of
2 deposits is to be computed on a quarterly basis. Deposits are
3 located in a keystone opportunity zone if the institution
4 maintains an office in a keystone opportunity zone which
5 properly treats the deposits as a liability on its books or
6 records. A deposit is considered to be properly treated as a
7 liability on the books or records of the office with which it
8 has a greater portion of contact. In determining whether a
9 deposit has a greater portion of contact with a particular
10 office, consideration is given to:
11 (i) Whether the deposit account was opened at or transferred
12 to that office by or at the direction of the depositor,
13 regardless of where subsequent deposits or withdrawals are made.
14 (ii) Whether employes regularly connected with that office
15 are primarily responsible for servicing the depositor's general
16 banking and other financial needs.
17 (iii) Whether the deposit was solicited by an employe
18 regularly connected with that office, regardless of where such
19 deposit was actually solicited.
20 (iv) Whether the terms governing the deposit were negotiated
21 by employes regularly connected with that office, regardless of
22 where the negotiations were actually conducted.
23 (v) Whether essential records relating to the deposit are
24 kept at that office and whether the deposit is serviced at that
25 office.
26 (d) The credit allowed under this section shall not exceed
27 the tax liability of the taxpayer under this article for the tax
28 year.
29 Section 10. Section 701.5 of the act, added June 16, 1994
30 (P.L.279, No.48), is renumbered to read:
20000S0002B1966 - 29 -
1 Section [701.5] 701.30. Definitions.--* * *
2 Section 11. The act is amended by adding sections to read:
3 Section 703-A. Qualified Businesses.--(a) For taxable years
4 that begin after December 31, 1998, an institution is a
5 qualified business under section 307 of the act of October 6,
6 1998 (P.L.705, No.92), known as the "Pennsylvania Keystone
7 Opportunity Zone Act"; and an institution may claim a credit
8 against the tax imposed by this article for the taxable year to
9 the extent of the tax liability for the amount of the taxable
10 shares attributable to a keystone opportunity zone in the
11 taxable year.
12 (b) The institution's tax liability for the amount of the
13 taxable shares attributable to a keystone opportunity zone shall
14 be determined by multiplying the amount of the taxable shares
15 attributable to the keystone opportunity zone by the rate of tax
16 imposed under this article for the taxable year. The institution
17 shall compute the Pennsylvania taxable amount of its shares in
18 conformity with this article with no adjustments or subtractions
19 for the taxable amount of shares attributable to the keystone
20 opportunity zone.
21 (c) The determination of the amount of an institution's
22 taxable shares attributable to a keystone opportunity zone shall
23 be determined in conformity with this article and with specific
24 reference to the following:
25 (1) If the entire business of the institution in this
26 Commonwealth is transacted wholly within a keystone opportunity
27 zone, the amount of the taxable shares attributable to a
28 keystone opportunity zone shall consist of the Pennsylvania
29 taxable amount as determined under this article.
30 (2) If the entire business of the institution in this
20000S0002B1966 - 30 -
1 Commonwealth is not wholly transacted within a keystone
2 opportunity zone, the amount of the taxable shares attributable
3 to a keystone opportunity zone shall be determined by
4 apportionment in accordance with a fraction, the numerator of
5 which is the sum of the payroll factor, the receipts factor and
6 the deposits factor, and the denominator of which is three.
7 (3) The payroll factor is a fraction, the numerator of which
8 is the total wages paid in a keystone opportunity zone during
9 the tax period and the denominator of which is the total wages
10 paid in this Commonwealth during the tax period. Wages are paid
11 in a keystone opportunity zone if paid to an employe having a
12 regular presence therein.
13 (4) The receipts factor is a fraction, the numerator of
14 which is total receipts located in a keystone opportunity zone
15 and the denominator of which is the total receipts located in
16 this Commonwealth. Receipts do not include principal repayments
17 on loans or credit, travel and entertainment cards. Receipts
18 from sale or disposition of intangible and tangible property
19 include only the net gain therefrom. The location of receipts
20 shall be determined as follows:
21 (i) Receipts from loans are located in a keystone
22 opportunity zone if the place of origination of the loan is in a
23 keystone opportunity zone, or if the proceeds of the loan will
24 be used by the borrower to conduct activity within a keystone
25 opportunity zone, including, but not limited to, the conduct of
26 business activities in a keystone opportunity zone; the
27 construction, alteration or repair of real property located in a
28 keystone opportunity zone; or for the personal use of
29 individuals residing in a keystone opportunity zone.
30 (ii) All receipts from performance of services are located
20000S0002B1966 - 31 -
1 in a keystone opportunity zone to the extent the services are
2 performed in the keystone opportunity zone. If services are
3 performed partly within a keystone opportunity zone and partly
4 outside a keystone opportunity zone, the receipts located in
5 each area shall be measured by the ratio which the time spent in
6 performing such services in a keystone opportunity zone bears to
7 the total time spent in performing such services in this
8 Commonwealth. Time spent in performing services in a keystone
9 opportunity zone is the time spent by employes having a regular
10 presence in the keystone opportunity zone in performing such
11 services.
12 (iii) Receipts from lease transactions are located in a
13 keystone opportunity zone if the leased property is deemed
14 located in a keystone opportunity zone.
15 (iv) Interest or service charges, excluding merchant
16 discounts, from credit, travel and entertainment card
17 receivables and credit card holders' fees are located in a
18 keystone opportunity zone if the credit card holder, in the case
19 of an individual, resides in a keystone opportunity zone or, if
20 a corporation, if the corporation's commercial domicile is
21 located in a keystone opportunity zone.
22 (v) Interest, dividends and net gains from the sale or
23 disposition of intangibles, exclusive of those receipts
24 described elsewhere in this section, are located in a keystone
25 opportunity zone if the institution maintains an office in a
26 keystone opportunity zone which treats such intangibles as
27 assets on its books or records.
28 (vi) Fees or charges from the issuance of traveler's checks
29 and money orders are located in a keystone opportunity zone if
30 such traveler's checks or money orders are issued in a keystone
20000S0002B1966 - 32 -
1 opportunity zone.
2 (vii) Receipts from sales of tangible property are located
3 in a keystone opportunity zone if the property is delivered or
4 shipped to a purchaser located in a keystone opportunity zone,
5 regardless of the F.O.B. point or other conditions of the sale.
6 (viii) All receipts not specifically treated under this
7 subsection are located in a keystone opportunity zone if the
8 greatest portion of the income-producing activities are
9 performed in a keystone opportunity zone, based on costs of
10 performance.
11 (5) The deposits factor is a fraction, the numerator of
12 which is the average value of deposits located in a keystone
13 opportunity zone during the taxable year and the denominator of
14 which is the average value of the total deposits in this
15 Commonwealth during the taxable year. The average value of
16 deposits is to be computed on a quarterly basis. Deposits are
17 located in a keystone opportunity zone if the institution
18 maintains an office in a keystone opportunity zone which
19 properly treats the deposits as a liability on its books or
20 records. A deposit is considered to be properly treated as a
21 liability on the books or records of the office with which it
22 has a greater portion of contact. In determining whether a
23 deposit has a greater portion of contact with a particular
24 office, consideration is given to:
25 (i) Whether the deposit account was opened at or transferred
26 to that office by or at the direction of the depositor,
27 regardless of where subsequent deposits or withdrawals are made.
28 (ii) Whether employes regularly connected with that office
29 are primarily responsible for servicing the depositor's general
30 banking and other financial needs.
20000S0002B1966 - 33 -
1 (iii) Whether the deposit was solicited by an employe
2 regularly connected with that office, regardless of where such
3 deposit was actually solicited.
4 (iv) Whether the terms governing the deposit were negotiated
5 by employes regularly connected with that office, regardless of
6 where the negotiations were actually conducted.
7 (v) Whether essential records relating to the deposit are
8 kept at that office and whether the deposit is serviced at that
9 office.
10 (d) The credit allowed under this section shall not exceed
11 the tax liability of the taxpayer under this article for the tax
12 year.
13 Section 1507. Qualified Businesses.--(a) For taxable years
14 that begin after December 31, 1998, an institution is a
15 qualified business under section 307 of the act of October 6,
16 1998 (P.L.705, No.92), known as the "Pennsylvania Keystone
17 Opportunity Zone Act"; and an institution may claim a credit
18 against the tax imposed by this article for the taxable year to
19 the extent of the tax liability for the amount of the taxable
20 income attributable to a keystone opportunity zone in the
21 taxable year.
22 (b) The institution's tax liability for the amount of the
23 taxable income attributable to a keystone opportunity zone shall
24 be determined by multiplying the amount of the taxable income
25 attributable to the keystone opportunity zone by the rate of tax
26 imposed under this article for the taxable year. The institution
27 shall compute the Pennsylvania taxable amount of its shares in
28 conformity with this article with no adjustments or subtractions
29 for the taxable amount of income attributable to the keystone
30 opportunity zone.
20000S0002B1966 - 34 -
1 (c) The determination of the amount of an institution's
2 taxable income attributable to a keystone opportunity zone shall
3 be determined in conformity with this article and with specific
4 reference to the following:
5 (1) If the entire business of the institution in this
6 Commonwealth is transacted wholly within a keystone opportunity
7 zone, the amount of the taxable income attributable to a
8 keystone opportunity zone shall consist of the Pennsylvania
9 taxable amount as determined under this article.
10 (2) If the entire business of the institution in this
11 Commonwealth is not wholly transacted within a keystone
12 opportunity zone, the amount of the taxable income attributable
13 to a keystone opportunity zone shall be determined by
14 apportionment in accordance with a fraction, the numerator of
15 which is the sum of the payroll factor, the receipts factor and
16 the deposits factor, and the denominator of which is three.
17 (3) The payroll factor is a fraction, the numerator of which
18 is the total wages paid in a keystone opportunity zone during
19 the tax period and the denominator of which is the total wages
20 paid in this Commonwealth during the tax period. Wages are paid
21 in a keystone opportunity zone if paid to an employe having a
22 regular presence therein.
23 (4) The receipts factor is a fraction, the numerator of
24 which is total receipts located in a keystone opportunity zone
25 and the denominator of which is the total receipts located in
26 this Commonwealth. Receipts do not include principal repayments
27 on loans or credit, travel and entertainment cards. Receipts
28 from sale or disposition of intangible and tangible property
29 include only the net gain therefrom. The location of receipts
30 shall be determined as follows:
20000S0002B1966 - 35 -
1 (i) Receipts from loans are located in a keystone
2 opportunity zone if the place of origination of the loan is in a
3 keystone opportunity zone, or if the proceeds of the loan will
4 be used by the borrower to conduct activity within a keystone
5 opportunity zone, including, but not limited to, the conduct of
6 business activities in a keystone opportunity zone; the
7 construction, alteration or repair of real property located in a
8 keystone opportunity zone; or for the personal use of
9 individuals residing in a keystone opportunity zone.
10 (ii) All receipts from performance of services are located
11 in a keystone opportunity zone to the extent the services are
12 performed in the keystone opportunity zone. If services are
13 performed partly within a keystone opportunity zone and partly
14 outside a keystone opportunity zone, the receipts located in
15 each area shall be measured by the ratio which the time spent in
16 performing such services in a keystone opportunity zone bears to
17 the total time spent in performing such services in this
18 Commonwealth. Time spent in performing services in a keystone
19 opportunity zone is the time spent by employes having a regular
20 presence in the keystone opportunity zone in performing such
21 services.
22 (iii) Receipts from lease transactions are located in a
23 keystone opportunity zone if the leased property is deemed
24 located in a keystone opportunity zone.
25 (iv) Interest or service charges, excluding merchant
26 discounts, from credit, travel and entertainment card
27 receivables and credit card holders' fees are located in a
28 keystone opportunity zone if the credit card holder, in the case
29 of an individual, resides in a keystone opportunity zone or, if
30 a corporation, if the corporation's commercial domicile is
20000S0002B1966 - 36 -
1 located in a keystone opportunity zone.
2 (v) Interest, dividends and net gains from the sale or
3 disposition of intangibles, exclusive of those receipts
4 described elsewhere in this section, are located in a keystone
5 opportunity zone if the institution maintains an office in a
6 keystone opportunity zone which treats such intangibles as
7 assets on its books or records.
8 (vi) Fees or charges from the issuance of traveler's checks
9 and money orders are located in a keystone opportunity zone if
10 such traveler's checks or money orders are issued in a keystone
11 opportunity zone.
12 (vii) Receipts from sales of tangible property are located
13 in a keystone opportunity zone if the property is delivered or
14 shipped to a purchaser located in a keystone opportunity zone,
15 regardless of the F.O.B. point or other conditions of the sale.
16 (viii) All receipts not specifically treated under this
17 subsection are located in a keystone opportunity zone if the
18 greatest portion of the income-producing activities are
19 performed in a keystone opportunity zone, based on costs of
20 performance.
21 (5) The deposits factor is a fraction, the numerator of
22 which is the average value of deposits located in a keystone
23 opportunity zone during the taxable year and the denominator of
24 which is the average value of the total deposits in this
25 Commonwealth during the taxable year. The average value of
26 deposits is to be computed on a quarterly basis. Deposits are
27 located in a keystone opportunity zone if the institution
28 maintains an office in a keystone opportunity zone which
29 properly treats the deposits as a liability on its books or
30 records. A deposit is considered to be properly treated as a
20000S0002B1966 - 37 -
1 liability on the books or records of the office with which it
2 has a greater portion of contact. In determining whether a
3 deposit has a greater portion of contact with a particular
4 office, consideration is given to:
5 (i) Whether the deposit account was opened at or transferred
6 to that office by or at the direction of the depositor,
7 regardless of where subsequent deposits or withdrawals are made.
8 (ii) Whether employes regularly connected with that office
9 are primarily responsible for servicing the depositor's general
10 banking and other financial needs.
11 (iii) Whether the deposit was solicited by an employe
12 regularly connected with that office, regardless of where such
13 deposit was actually solicited.
14 (iv) Whether the terms governing the deposit were negotiated
15 by employes regularly connected with that office, regardless of
16 where the negotiations were actually conducted.
17 (v) Whether essential records relating to the deposit are
18 kept at that office and whether the deposit is serviced at that
19 office.
20 (d) The credit allowed under this section shall not exceed
21 the tax liability of the taxpayer under this article for the tax
22 year.
23 Section 12. Section 1709-B of the act, added May 7, 1997
24 (P.L.85, No.7), is amended to read:
25 Section 1709-B. Limitation on Credits.--(a) The total
26 amount of credits approved by the department shall not exceed
27 [fifteen million dollars ($15,000,000)] sixty million dollars
28 ($60,000,000) in any fiscal year. Of that amount, [three million
29 dollars ($3,000,000)] five million dollars ($5,000,000) shall be
30 allocated exclusively for small businesses. However, if the
20000S0002B1966 - 38 -
1 total amounts allocated to either the group of applicants
2 exclusive of small businesses or the group of small business
3 applicants is not approved in any fiscal year, the unused
4 portion will become available for use by the other group of
5 qualifying taxpayers.
6 (b) If the total amount of research and development tax
7 credits applied for by all taxpayers, exclusive of small
8 businesses, exceeds the amount allocated for those credits, then
9 the research and development tax credit to be received by each
10 applicant shall be the product of the allocated amount
11 multiplied by the quotient of the research and development tax
12 credit applied for by the applicant divided by the total of all
13 research and development credits applied for by all applicants,
14 the algebraic equivalent of which is:
15 taxpayer's research and development tax credit=amount
16 allocated for those credits X (research and development
17 tax credit applied for by the applicant/total of all
18 research and development tax credits applied for by all
19 applicants).
20 (c) If the total amount of research and development tax
21 credits applied for by all small business taxpayers exceeds the
22 amount allocated for those credits, then the research and
23 development tax credit to be received by each small business
24 applicant shall be the product of the allocated amount
25 multiplied by the quotient of the research and development tax
26 credit applied for by the small business applicant divided by
27 the total of all research and development credits applied for by
28 all small business applicants, the algebraic equivalent of which
29 is:
30 taxpayer's research and development tax credit=amount
20000S0002B1966 - 39 -
1 allocated for those credits X (research and development
2 tax credit applied for by the small business/total of all
3 research and development tax credits applied for by all
4 small business applicants).
5 Section 13. The act is amended by adding articles to read:
6 ARTICLE XVII-C
7 EMERGING TECHNOLOGY AND BIOTECHNOLOGY
8 TAX BENEFIT TRANSFER PROGRAM
9 Section 1701-C. Legislative Findings.--The General Assembly
10 hereby finds and declares that:
11 (1) The emerging economy of the Commonwealth will, in large
12 part, be based on high technology industries and the companies
13 that serve them. Pennsylvania is already emerging as a national
14 leader in the biotechnology industry and is rapidly becoming a
15 center for other emerging technologies. These companies have the
16 potential to become significant employers and important
17 contributors to the economy and quality of life in this
18 Commonwealth.
19 (2) Often the biotechnology industry and other emerging
20 technology industries require a significant time to bring new
21 products to the market. Federal approvals often mean that a
22 biotechnology company need ten years or more before it has a
23 commercially viable product. During that time, these businesses
24 often incur losses and often have high capital needs.
25 (3) Under existing State tax laws, these companies can carry
26 these operating losses forward for up to ten years to offset
27 future taxes.
28 (4) Allowing the State to repurchase these operating losses
29 provides these emerging technology and biotechnology companies
30 with vital capital when they most require it, while at the same
20000S0002B1966 - 40 -
1 time reducing the impact that the use of net operating loss
2 allowances would have on future State tax revenues.
3 (5) Fostering the development of emerging technology and
4 biotechnology companies through this repurchase program will
5 provide substantial economic and health benefits for the
6 citizens of this Commonwealth.
7 Section 1702-C. Definitions.--The following words and
8 phrases, when used in this article, shall have the meanings
9 given to them in this section, except where the context clearly
10 indicates a different meaning:
11 "Biotechnology." The continually expanding body of
12 fundamental knowledge about the structure and function of
13 biological systems which seeks, through research, to use that
14 knowledge of naturally occurring processes to develop human,
15 animal and agricultural products, services and technologies to
16 address medical problems, prolong life, prevent and treat
17 disease, remediate environmental problems and improve
18 agricultural products.
19 "Biotechnology company." A person whose headquarters or base
20 of operations is located in this Commonwealth, engaged in the
21 research, development, production or provision of biotechnology
22 for the purpose of developing or providing products, processes
23 or technologies for specific commercial or public purposes,
24 including, but not limited to, medical, pharmaceutical,
25 nutritional and other health-related purposes, agricultural
26 purposes and environmental purposes, or a person whose
27 headquarters or base of operations is located in this
28 Commonwealth who is engaged in providing services or products
29 necessary for such research, development, product or provision
30 of service. The term shall include bioinformatics, biomedicine,
20000S0002B1966 - 41 -
1 biopharmacogenomics, biopharmaceuticals, biorobotics, bioscience
2 and genome research.
3 "Department." The Department of Community and Economic
4 Development of the Commonwealth.
5 "Emerging technology company." A person whose headquarters
6 or base of operations is located in this Commonwealth and who
7 employs some combination of the following: highly educated or
8 trained managers and workers who use sophisticated scientific
9 research or production equipment, processes or knowledge to
10 discover, develop, test, transfer or manufacture a product or
11 service.
12 "Net operating loss carryforward allowance." The provisions
13 for applying certain losses against future tax liability as
14 provided for in Article IV of this act, which taxpayers can make
15 against a tax liability under Article III, IV or VI of this act.
16 "Qualified applicant." An emerging technology or
17 biotechnology company that qualifies to participate in the tax
18 benefit transfer program and includes emerging technology
19 companies and biotechnology companies which are liable for taxes
20 imposed under Article IV or VI of this act or for taxes imposed
21 under Article III of this act or a shareholder of a Pennsylvania
22 S corporation or owner of a limited liability company.
23 "Tax benefit payment." The amount paid by the Department of
24 Community and Economic Development to repurchase net operating
25 loss carryforward allowances from a qualified emerging
26 technology or biotechnology company.
27 "Tax benefit transfer program." The Pennsylvania Emerging
28 Technology and Biotechnology Tax Benefit Transfer Program
29 established under this article.
30 Section 1703-C. Pennsylvania Emerging Technology and
20000S0002B1966 - 42 -
1 Biotechnology Tax Benefit Transfer Program Established.--The
2 Pennsylvania Emerging Technology and Biotechnology Tax Benefit
3 Transfer Program is established within the Department of
4 Community and Economic Development. The department shall
5 administer the Pennsylvania Emerging Technology and
6 Biotechnology Tax Benefit Transfer Program. In conjunction with
7 the Department of Revenue, the department shall have the
8 authority to annually repurchase unused net operating loss
9 carryforward allowances from qualifying emerging industries and
10 biotechnology companies. Emerging technology and biotechnology
11 companies may submit an application to the department by
12 September 15 of each year requesting that the department
13 repurchase unused net operating loss carryforward allowances.
14 The department shall provide the Department of Revenue with a
15 list of applicants. The Department of Revenue shall issue a
16 statement to the department certifying the amount of unused net
17 loss carryforward allowances available for repurchase from each
18 applicant.
19 Section 1704-C. Tax Benefit Payment.--The department shall
20 have the authority to make tax benefit payments to qualified
21 applicants. The amount of each tax benefit payment shall be
22 calculated by multiplying the net operating loss carryforward
23 allowance for each applicant times the tax rate for the
24 applicable tax against which the allowance would be credited
25 times eight-tenths (.8). The tax rate shall be the rate in
26 effect at the time the tax benefit payment is made. If the
27 amount of requests for repurchases of allowances exceeds the
28 amount of funds available to the department in any given year,
29 the department shall have the authority to either deny
30 applications for repurchase or reduce the amount of allowances
20000S0002B1966 - 43 -
1 it will repurchase from each applicant. Preference in
2 repurchasing allowances shall be given to applicants who have
3 been operating for less than five years, employ fewer than ten
4 employes, or have had no sales in the prior two tax years. Tax
5 benefit payments shall be made no later than December 31 of each
6 year.
7 Section 1705-C. Surrender of Net Operating Loss Carryforward
8 Allowances.--As a condition of receiving a tax benefit payment
9 from the department, each qualified applicant shall surrender
10 its right to use the full amount of any allowance for which it
11 has received a payment to offset any future tax liability. The
12 department shall provide the Department of Revenue with the
13 names of the qualified applicants and amounts of net operating
14 loss carryforward allowances that it has repurchased.
15 Section 1706-C. Rules and Regulations.--The department and
16 the Department of Revenue shall have the authority to promulgate
17 such rules and regulations and to adopt such forms and
18 procedures as may be necessary to implement this article.
19 Section 1707-C. State Tax Liability.--Tax benefit payments
20 shall not be classified as income for State tax purposes.
21 Section 1708-C. Annual Appropriation and Audit.--The General
22 Assembly shall annually appropriate funds to the department to
23 make tax benefit payments. The Pennsylvania Emerging Technology
24 and Biotechnology Tax Benefit Transfer Program shall be subject
25 to the same fiscal and performance audit requirements as apply
26 to the department.
27 Section 1709-C. Expiration of Article.--This article shall
28 expire on December 31, 2009, unless otherwise reauthorized by
29 the General Assembly.
30 ARTICLE XIX-B
20000S0002B1966 - 44 -
1 FAMILY CAREGIVER TAX CREDIT
2 Section 1901-B. Short Title.--This article shall be known
3 and may be cited as the "Family Caregiver Tax Credit Act."
4 Section 1902-B. Definitions.--The following words, terms and
5 phrases, when used in this article, shall have the meanings
6 ascribed to them in this section, except where the context
7 clearly indicates a different meaning:
8 "Activities of daily living." Any or all of the following:
9 eating; bathing; dressing; toileting; transferring in and out of
10 bed or in and out of a chair; and personal hygiene.
11 "Assisted living services." Any combination of support
12 services, personal care services, personalized assistance
13 services, assistive technology and health-related services
14 designed to respond to the needs of those who need such
15 assistance to perform activities of daily living. The term may
16 also include assistance with the instrumental activities of
17 daily living.
18 "Cognitive support services." Services provided as a part of
19 a coordinated care plan to individuals who have memory
20 impairments or other cognitive problems that significantly
21 interfere with or impair their ability to conduct activities of
22 daily living without assistance or monitoring.
23 "Eligible caregiver." A taxpayer who provides, arranges for
24 the provision of or pays for assisted living, cognitive support
25 or personal care services for a qualified beneficiary.
26 "Instrumental activities of daily living." Includes, but is
27 not limited to, services such as meal preparation, assistance in
28 taking medications, handling finances, shopping, light
29 housekeeping and keeping physician appointments.
30 "Personal care services." Assistance or supervision in
20000S0002B1966 - 45 -
1 matters such as dressing, bathing, diet, financial management or
2 assistance with self-administered medications.
3 "Qualified beneficiary." An individual who:
4 (1) has been certified by a physician as requiring assisted
5 living, cognitive support or personal care services for at least
6 one hundred eighty consecutive days;
7 (2) is at least sixty years of age;
8 (3) received such services in one's home, in the home of an
9 eligible caregiver or in an approved adult day-care center; and
10 (4) is the spouse, parent, grandparent, step parent, step
11 grandparent or and individual with respect to whom the taxpayer
12 is allowed a deduction under section 151 of the Internal Revenue
13 Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et. seq.) for the
14 taxable year.
15 Section 1903-B. Family Caregiver Tax Credit.--There shall be
16 allowed a credit against the tax imposed by Article III on
17 eligible caregivers for the costs of providing assisted living,
18 cognitive support or personal care services to a qualified
19 beneficiary. The amount of the credit under this section shall
20 be the per cent specified in section 302(a)(2) or (b)(2) times
21 the amount spent by the eligible caregiver in providing such
22 services provided such amount does not exceed ten thousand
23 dollars ($10,000). Only expenditures for services provided in
24 the home of the qualified beneficiary, the home of a taxpayer
25 serving as an eligible caregiver for that recipient or in an
26 approved adult day-care facility shall be included in
27 calculating the credit.
28 Section 1904-B. Multiple Caregivers.--If more than one
29 taxpayer is an eligible caregiver with respect to the same
30 applicable individual for taxable years ending with or within
20000S0002B1966 - 46 -
1 the same calendar year, the taxpayer with the highest modified
2 adjusted gross income shall be treated as the eligible
3 caregiver. In the case of married individuals filing separately,
4 only one of the individuals shall qualify for the credit
5 authorized by this article. In the event that they can not agree
6 as to who shall qualify as the family caregiver, the
7 determination shall be made that the individual who has the most
8 immediate relationship with the qualified beneficiary shall be
9 the family caregiver for purposes of this article.
10 Section 1905-B. Identification Requirements.--No tax credit
11 shall be allowed under this article to a taxpayer with respect
12 to any applicable individual unless the taxpayer includes the
13 name and taxpayer identification number of such individual, the
14 name of the physician certifying the need for such services and
15 the taxpayer identification number of the entity or entities
16 providing such services.
17 ARTICLE XIX-C
18 CHILD-CARE TAX CREDIT
19 Section 1901-C. Short Title of Article.--This article shall
20 be known and may be cited as the "Child-care Tax Credit Act."
21 Section 1902-C. Definitions.--The following words and
22 phrases when used in this article shall have the meanings
23 ascribed to them in this section except where the context
24 clearly indicates a different meaning:
25 "Business firm." A corporation, partnership, sole
26 proprietorship or other entity authorized to do business in this
27 Commonwealth and subject to any of the taxes imposed by Article
28 III, IV, VI, VII, VIII, IX or XV of this act.
29 "Contributions." Payments made to a child-care facility not
30 owned or operated by the business firm for child-care services
20000S0002B1966 - 47 -
1 for the children of employes of the business firm.
2 "Credit." The child-care tax credit.
3 "Net costs." Amounts expended for the operation of a child-
4 care facility reduced by the fees or charges paid by the users
5 of the child-care facility services.
6 Section 1903-C. Authorization of Credit.--(a) A business
7 firm that operates its own child-care facility which meets the
8 following requirements shall be eligible for the tax credit:
9 (1) The child-care facility has been issued a valid license
10 by the Department of Public Welfare.
11 (2) Children of the business firm's employes utilize the
12 facility on a regular basis.
13 (3) At least fifty per cent of the employes utilizing the
14 child-care facility are not individuals who own more than ten
15 per cent of the business firm.
16 (4) The child-care program equitably benefits groups of
17 employes who qualify under a classification set up by the
18 business firm which is not discriminatory in favor of officers,
19 shareholders, owners or their dependents.
20 (5) At least eighty per cent of the children utilizing the
21 child-care facility are children of the business firm's
22 employes.
23 (b) A business firm which makes contributions to a child-
24 care facility not owned or operated by the business firm shall
25 be eligible for the tax credit if the following requirements are
26 met:
27 (1) The child-care facility has been issued a valid license
28 by the Department of Public Welfare.
29 (2) At least fifty per cent of the employes utilizing the
30 child-care facility are not individuals who own more than ten
20000S0002B1966 - 48 -
1 per cent of the business firm.
2 (3) The child-care program equitably benefits groups of
3 employes who qualify under a classification set up by the
4 business firm which is not discriminatory in favor of officers,
5 shareholders, owners or their dependents.
6 Section 1904-C. Calculation of Credit.--(a) The amount of
7 the tax credit available to a business firm which qualifies
8 under this article and operates its own not-for-profit child-
9 care facility shall be equal to twenty-five per cent of the net
10 costs of the child-care facility.
11 (b) The amount of the tax credit available to a business
12 firm which qualifies under this article and contributes to a
13 child-care facility not owned or operated by the business firm
14 shall be equal to twenty-five per cent of the contributions made
15 by the business firm to the child-care facility.
16 (c) The annual credit allowed under this section shall not
17 exceed twenty-five thousand dollars ($25,000) per business firm.
18 Section 1905-C. Taxes Against Which Credit May Be Taken.--
19 (a) Except as provided in subsection (b), the tax credits
20 provided for in this article may be applied against any tax due
21 under Article III, IV, VI, VII, VIII, IX or XV of this act.
22 (b) The tax credits provided for in this article shall not
23 be applied against employer withholding taxes required under
24 Article III of this act.
25 Section 1906-C. Powers and Duties.--(a) The Department of
26 Revenue, in cooperation with the Department of Public Welfare,
27 shall administer the provisions of this article, promulgate
28 appropriate rules, regulations and forms for that purpose and
29 make such determinations as may be required.
30 (b) Child-care tax credits may be claimed only upon
20000S0002B1966 - 49 -
1 presentation of an authorizing certificate. Certificates will be
2 issued to a business firm upon presentation to the Department of
3 Public Welfare of evidence of eligibility under this article.
4 (c) The Secretary of Public Welfare and the Secretary of
5 Revenue shall submit an annual report to the General Assembly
6 indicating the effectiveness of the credit provided by this act
7 no later than March 15 following the year in which the credits
8 were issued. The report shall include the number of taxpayers
9 utilizing the credit as of the date of the report and the amount
10 of credits issued and utilized. The report may also include any
11 recommendations for changes in the calculation or administration
12 of the credit.
13 Section 1907-C. Limitations.--The total amount of child-care
14 credits authorized by this article shall not exceed twenty-five
15 million dollars ($25,000,000) in any fiscal year. The Department
16 of Public Welfare shall promulgate regulations to issue
17 certificates and avoid certificate issuances in excess of the
18 maximum authorized amount for any fiscal year.
19 Section 1908-C. Time Periods for Earning and Using
20 Credits.--Child-care credits may be issued for net costs or
21 contributions occurring on or after January 1, 2000, and before
22 January 1, 2005. Child-care credits issued may be claimed
23 against taxes payable for tax years beginning on or after
24 January 1, 2001, and before January 1, 2007.
25 Section 14. Section 2106 of the act, added August 4, 1991
26 (P.L.97, No.22), is amended to read:
27 Section 2106. Imposition of Tax.--[An]
28 (1) Except as provided in paragraph (2), an inheritance tax
29 for the use of the Commonwealth is imposed upon every transfer
30 subject to tax under this article at the rates specified in
20000S0002B1966 - 50 -
1 section 2116.
2 (2) The transfer of property for estates of decedents dying
3 after June 30, 2000, is not subject to the inheritance tax.
4 Section 15. Section 2111 of the act is amended by adding a
5 subsection to read:
6 Section 2111. Transfers Not Subject to Tax.--* * *
7 (s) Transfers of property from a child twenty-one years of
8 age or younger to the parent of the child.
9 Section 16. Section 2116(a) of the act, amended June 16,
10 1994 (P.L.279, No.48) and June 30, 1995 (P.L.139, No.21), is
11 amended to read:
12 Section 2116. Inheritance Tax.--(a) (1) Inheritance tax
13 upon the transfer of property passing to or for the use of any
14 of the following shall be at the rate of six per cent[:] for the
15 estate of a decedent dying before July 1, 2000, and at a rate of
16 zero per cent for the estate of a decedent dying on or after
17 July 1, 2000:
18 (i) grandfather, grandmother, father, mother, except
19 transfers under section 2111(s), and lineal descendants; or
20 (ii) wife or widow and husband or widower of a child.
21 (1.1) Inheritance tax upon the transfer of property passing
22 to or for the use of a husband or wife shall be:
23 (i) At the rate of three per cent for estates of decedents
24 dying on or after July 1, 1994, and before January 1, 1995.
25 (ii) At a rate of zero per cent for estates of decedents
26 dying on or after January 1, 1995.
27 (1.2) Inheritance tax upon the transfer of property passing
28 to or for the use of a parent from a child under eighteen years
29 of age or if that child is a student, under twenty-two years of
30 age shall be at a rate of zero per cent for estates of
20000S0002B1966 - 51 -
1 decendents dying on or after January 1, 2000.
2 (2) Inheritance tax upon the transfer of property passing to
3 or for the use of all persons other than those designated in
4 subclause (1) [or], (1.1) or (1.2) or exempt under section
5 2111(m) shall be at the rate of fifteen per cent[.] for a
6 decedent dying before July 1, 2000, and at a rate of zero per
7 cent for the estate of a decedent dying on or after July 1,
8 2000.
9 (3) When property passes to or for the use of a husband and
10 wife with right of survivorship, one of whom is taxable at a
11 rate lower than the other, the lower rate of tax shall be
12 applied to the entire interest.
13 * * *
14 Section 17. Section 2117 of the act is repealed.
15 Section 18. The act is amended by adding an article to read:
16 ARTICLE XXIX-B
17 HOMEOWNERS' TAX REBATE
18 Section 2901-B. Short Title of Article.--This article shall
19 be known and may be cited as the "Homeowners' Century Tax Rebate
20 Act."
21 Section 2902-B. Definitions.--The following words, terms and
22 phrases, when used in this article, shall have the meanings
23 ascribed to them in this section, except where the context
24 clearly indicates a different meaning:
25 "Assessor." The chief assessor of a county, the equivalent
26 position in a home rule county or the equivalent position in a
27 city of the third class that performs its own assessments of
28 real property.
29 "Department." The Department of Revenue of the Commonwealth
30 or its designee.
20000S0002B1966 - 52 -
1 "Homeowner." Any owner of a homestead who is:
2 (1) an individual who is a natural person domiciled in this
3 Commonwealth;
4 (2) a grantor who has placed real property in a revocable
5 trust, provided that the grantor is a natural person domiciled
6 in this Commonwealth; or
7 (3) a partner of a family farm partnership or a shareholder
8 of a family farm corporation as the terms are defined in section
9 1101-C, provided that the partner or shareholder is a natural
10 person domiciled in this Commonwealth.
11 "Homestead." The owner-occupied, primary residence and the
12 parcel of land within this Commonwealth on which the residence
13 is located and other improvements located on the parcel. If a
14 portion of the structure is used for a nonresidential purpose,
15 the homestead is equal to that portion of the property used as
16 the primary residence of the owner-occupant. This definition of
17 "homestead" shall have no effect, evidentiary or otherwise,
18 concerning the issue of whether the property constitutes a
19 homestead or homestead property under any other act.
20 "Real property tax." The total real property tax imposed by
21 a school district on a homestead for the tax year. The term does
22 not include payments made in lieu of taxes or any penalties or
23 interest paid in connection with the tax.
24 "Rebate." An amount equal to one hundred per cent of the
25 real property tax paid on the assessed value of a homestead to a
26 school district for the tax year, except that no rebate paid
27 pursuant to this article shall exceed one hundred dollars
28 ($100).
29 "Residence." A structure used as a place of habitation by
30 the owner of the structure.
20000S0002B1966 - 53 -
1 "School district." A school district of the first class,
2 first class A, second class, third class or fourth class,
3 including any independent school district.
4 "Tax year." The school district's fiscal year 1999-2000
5 during which real property tax is due and payable.
6 Section 2903-B. Rebate Qualifications.--(a) Subject to
7 section 2904-B, a rebate shall be issued on account of school
8 real property taxes for a homestead if all of the following
9 apply:
10 (1) The homeowner occupied the homestead during the tax
11 year.
12 (2) The homeowner has paid real property tax owed on the
13 homestead to the school district for the tax year.
14 (3) The homeowner is the owner of record as of July 1, 1999.
15 (4) The homeowner applies in a form and time prescribed by
16 the department.
17 No homeowner shall be eligible to receive more than one rebate.
18 (b) If title to a homestead is held by more than one
19 individual, a rebate shall be issued in the names appearing on
20 the school property tax record.
21 Section 2904-B. Rebate Administration.--(a) The department
22 shall establish any administrative and application procedures
23 and deadlines necessary to implement and administer this
24 article. To facilitate the timely implementation of this
25 article, the provisions of Article III Pt. X of this act and
26 Article VII of the act of April 9, 1929 (P.L.343, No.176), known
27 as "The Fiscal Code," shall not apply to this article. The
28 department may enter into any contracts which are necessary to
29 administer this article.
30 (b) Within thirty days of the effective date of this
20000S0002B1966 - 54 -
1 article, every assessor shall submit to the department a
2 certified list, categorized by school district, of all
3 residential and farm real property and owners of record as of
4 July 1, 1999, within its jurisdiction. The certified list shall
5 include only those homeowners of record who have fully paid
6 their 1999-2000 school real property taxes owed on their
7 respective homesteads.
8 (c) Only certified lists submitted by or within thirty days
9 of the effective date of this article shall be reviewed by the
10 department. The department shall make the initial determination
11 of homeowner rebate eligibility from information submitted by
12 the homeowner. The department shall thereafter forward the list
13 of eligible homeowners to the respective assessor.
14 (d) Within thirty days after receipt of the list of eligible
15 homeowners, the assessor shall verify the list and report to the
16 department any corrections to the list.
17 (e) The department shall finalize the list and authorize
18 rebates which shall be issued and mailed to all homeowners on
19 the final verified list by October 20, 2000. If the assessor
20 fails to verify the list or notify the department of any
21 corrections within the time limitation set forth under
22 subsection (d), the department shall authorize rebates to all
23 homeowners on the list developed by the department pursuant to
24 subsection (c).
25 Section 2905-B. Petitions for Review.--A homeowner whose
26 rebate is either denied, corrected or otherwise adversely
27 affected by either the department or the assessor may petition
28 for administrative review in the manner prescribed by the
29 department. An individual aggrieved by the department's action
30 in connection with the administrative review may petition for
20000S0002B1966 - 55 -
1 review in the manner specified in sections 11.1 and 11.2 of the
2 act of March 11, 1971 (P.L.104, No.3), known as the "Senior
3 Citizens Rebate and Assistance Act."
4 Section 2906-B. Penalties.--(a) Any homeowner who receives
5 a rebate through false or misleading information or who
6 otherwise improperly receives a rebate may be required to do the
7 following:
8 (1) refund to the department the amount of rebate received;
9 (2) pay a civil penalty of fifty dollars ($50) to the
10 department; or
11 (3) both paragraphs (1) and (2).
12 (b) The department may offset any rebate due to a homeowner
13 against collectible liabilities owed to the Commonwealth by the
14 homeowner for taxes imposed under Article III of this act.
15 Section 2907-B. Erroneous Rebates.--(a) If the department
16 determines or finds a rebate to have been incorrectly or
17 erroneously paid, it shall redetermine the correct amount of the
18 rebate, if any, and notify the homeowner of the reason for the
19 correction and the amount of the rebate.
20 (b) If a rebate has been issued in error and the homeowner
21 fails to refund the rebate upon the department's request, the
22 rebate shall be recoverable by the department in the same manner
23 as assessments as provided for in the act of March 11, 1971
24 (P.L.104, No.3), known as the "Senior Citizens Rebate and
25 Assistance Act."
26 Section 2908-B. Construction.--Notwithstanding any other
27 provision of law to the contrary, any property tax rebate
28 received under this article shall not be considered "income" for
29 purposes of determining eligibility for any State government
30 program, including, but not limited to, those programs
20000S0002B1966 - 56 -
1 authorized by the act of March 11, 1971 (P.L.104, No.3), known
2 as the "Senior Citizens Rebate and Assistance Act," or Chapter 5
3 of the act of August 26, 1971 (P.L.351, No.91), known as the
4 "State Lottery Law."
5 Section 2909-B. Real Property Tax Prohibition.--School
6 districts shall not levy real property tax for any purpose.
7 Section 19. The Department of Community and Economic
8 Development shall have the authority to implement emergency
9 regulations and procedures so that it can accept applications
10 for tax benefit payments as provided in sections 1703-C and
11 1704-C of the act. Emerging technology and biotechnology
12 companies can apply for repurchase of any net operating loss
13 allowances to which they are entitled on the effective date of
14 this act.
15 Section 20. The sum of $10,000,000 is hereby appropriated to
16 the Department of Community and Economic Development for the
17 fiscal year July 1, 2000, to June 30, 2001, to carry out the
18 purposes of Article XVII-C of the act.
19 Section 21. Section 1303 of the act of October 18, 1988
20 (P.L.756, No.108), known as the Hazardous Sites Cleanup Act, is
21 repealed.
22 Section 22. This act shall apply as follows:
23 (1) The amendment of section 301(d) of the act shall
24 apply to taxable years beginning after December 31, 1998.
25 (2) The following provisions shall apply to taxable
26 years beginning after December 31, 1999:
27 (i) The addition of section 301(c.1a) of the act.
28 (ii) The amendment of section 304(d)(1) of the act.
29 (iii) The addition of section 314.1 of the act.
30 (iv) The amendment of section 401(3)2(a)(9) of the
20000S0002B1966 - 57 -
1 act.
2 (v) The amendment of section 602(a), (b), (e), (f),
3 (g), (h) and (i) of the act.
4 (vi) The amendment of section 602.5 of the act.
5 (vii) The amendment of section 1709-B of the act.
6 (viii) The addition of Article XIX-B of the act.
7 (3) The addition of section 2116(a)(1.2) of the act
8 shall apply to the estates of decedents dying after December
9 31, 1999.
10 (4) The following provisions shall apply to the estates
11 of decedents dying after June 30, 2000:
12 (i) The addition of section 2111(s) of the act.
13 (ii) The repeal of section 2117 of the act.
14 (5) The addition of section 2111(s) of the act shall
15 apply to transfers made by decedents dying after June 30,
16 2000, regardless of the date of transfer.
17 Section 23. This act shall take effect as follows:
18 (1) The addition of Article XIX-B of the act shall take
19 effect in 60 days.
20 (1.1) The addition of section 2909-B of the act shall
21 take effect June 30, 2002.
22 (2) The following provisions shall take effect July 1,
23 2000, or immediately, whichever is later:
24 (i) The amendment of section 2106 of the act.
25 (ii) The addition of section 2111(s) of the act.
26 (3) The remainder of this act shall take effect
27 immediately.
28 SECTION 1. SECTION 201(D), (G), (M) AND (AA) OF THE ACT OF <--
29 MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF
30 1971, AMENDED DECEMBER 13, 1991 (P.L.373, NO.40), MAY 7, 1997
20000S0002B1966 - 58 -
1 (P.L.85, NO.7) AND APRIL 23, 1998 (P.L.239, NO.45), ARE AMENDED
2 AND THE SECTION IS AMENDED BY ADDING CLAUSES TO READ:
3 SECTION 201. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
4 PHRASES WHEN USED IN THIS ARTICLE II SHALL HAVE THE MEANING
5 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
6 CLEARLY INDICATES A DIFFERENT MEANING:
7 * * *
8 (D) "PROCESSING." THE PERFORMANCE OF THE FOLLOWING
9 ACTIVITIES WHEN ENGAGED IN AS A BUSINESS ENTERPRISE:
10 * * *
11 (15) THE PREPARATION OF DRY OR LIQUID FERTILIZER FOR SALE.
12 * * *
13 (G) "PURCHASE PRICE."
14 * * *
15 (8) THE PURCHASE PRICE OF PREBUILT HOUSING SHALL BE SIXTY
16 PER CENT OF THE MANUFACTURER'S SELLING PRICE: PROVIDED, HOWEVER,
17 THAT A MANUFACTURER OF PREBUILT HOUSING WHO PRECOLLECTS TAX FROM
18 A PREBUILT HOUSING BUILDER AT THE TIME OF THE SALE TO THE
19 PREBUILT HOUSING BUILDER SHALL HAVE THE OPTION TO COLLECT TAX ON
20 SIXTY PER CENT OF THE SELLING PRICE OR ON ONE HUNDRED PER CENT
21 OF THE ACTUAL COST OF THE SUPPLIES AND MATERIALS USED IN THE
22 MANUFACTURE OF THE PREBUILT HOUSING.
23 * * *
24 (M) "TANGIBLE PERSONAL PROPERTY." CORPOREAL PERSONAL
25 PROPERTY INCLUDING, BUT NOT LIMITED TO, GOODS, WARES,
26 MERCHANDISE, STEAM AND NATURAL AND MANUFACTURED AND BOTTLED GAS
27 FOR NON-RESIDENTIAL USE, ELECTRICITY FOR NON-RESIDENTIAL USE,
28 PREPAID TELECOMMUNICATIONS, PREMIUM CABLE OR PREMIUM VIDEO
29 PROGRAMMING SERVICE, SPIRITUOUS OR VINOUS LIQUOR AND MALT OR
30 BREWED BEVERAGES AND SOFT DRINKS, INTERSTATE TELECOMMUNICATIONS
20000S0002B1966 - 59 -
1 SERVICE ORIGINATING OR TERMINATING IN THE COMMONWEALTH AND
2 CHARGED TO A SERVICE ADDRESS IN THIS COMMONWEALTH, INTRASTATE
3 TELECOMMUNICATIONS SERVICE WITH THE EXCEPTION OF (I) SUBSCRIBER
4 LINE CHARGES AND BASIC LOCAL TELEPHONE SERVICE FOR RESIDENTIAL
5 USE AND (II) CHARGES FOR TELEPHONE CALLS PAID FOR BY INSERTING
6 MONEY INTO A TELEPHONE ACCEPTING DIRECT DEPOSITS OF MONEY TO
7 OPERATE, PROVIDED FURTHER, THE SERVICE ADDRESS OF ANY INTRASTATE
8 TELECOMMUNICATIONS SERVICE IS DEEMED TO BE WITHIN THIS
9 COMMONWEALTH OR WITHIN A POLITICAL SUBDIVISION, REGARDLESS OF
10 HOW OR WHERE BILLED OR PAID. IN THE CASE OF ANY SUCH INTERSTATE
11 OR INTRASTATE TELECOMMUNICATIONS SERVICE, ANY CHARGE PAID
12 THROUGH A CREDIT OR PAYMENT MECHANISM WHICH DOES NOT RELATE TO A
13 SERVICE ADDRESS, SUCH AS A BANK, TRAVEL, CREDIT OR DEBIT CARD,
14 BUT NOT INCLUDING PREPAID TELECOMMUNICATIONS, IS DEEMED
15 ATTRIBUTABLE TO THE ADDRESS OF ORIGINATION OF THE
16 TELECOMMUNICATIONS SERVICE.
17 * * *
18 (AA) "BUILDING MAINTENANCE OR CLEANING SERVICES." PROVIDING
19 SERVICES WHICH INCLUDE, BUT ARE NOT LIMITED TO, JANITORIAL, MAID
20 OR HOUSEKEEPING SERVICE, OFFICE OR INTERIOR BUILDING CLEANING OR
21 MAINTENANCE SERVICE, WINDOW CLEANING SERVICE, FLOOR WAXING
22 SERVICE, LIGHTING MAINTENANCE SERVICE SUCH AS BULB REPLACEMENT,
23 CLEANING, CHIMNEY CLEANING SERVICE, ACOUSTICAL TILE CLEANING
24 SERVICE, VENETIAN BLIND CLEANING, CLEANING AND MAINTENANCE OF
25 TELEPHONE BOOTHS OR CLEANING AND DEGREASING OF SERVICE STATIONS.
26 THIS TERM SHALL NOT INCLUDE REPAIRS ON BUILDINGS AND OTHER
27 STRUCTURES; NOR SHALL THIS TERM INCLUDE THE MAINTENANCE OR
28 REPAIR OF BOILERS, FURNACES AND RESIDENTIAL AIR CONDITIONING
29 EQUIPMENT OR PARTS THEREOF; THE PAINTING, WALLPAPERING OR
30 APPLYING OTHER LIKE COVERINGS TO INTERIOR WALLS, CEILINGS OR
20000S0002B1966 - 60 -
1 FLOORS; OR THE EXTERIOR PAINTING OF BUILDINGS.
2 * * *
3 (UU) "PREPAID TELECOMMUNICATIONS." A TANGIBLE ITEM
4 CONTAINING A PREPAID AUTHORIZATION NUMBER THAT CAN BE USED
5 SOLELY TO OBTAIN TELECOMMUNICATIONS SERVICE, INCLUDING ANY
6 RENEWAL OR INCREASES IN THE PREPAID AMOUNT.
7 (VV) "PREBUILT HOUSING." EITHER OF THE FOLLOWING:
8 (1) MANUFACTURED HOUSING, INCLUDING MOBILE HOMES, WHICH
9 BEARS A LABEL AS REQUIRED BY AND REFERRED TO IN THE ACT OF
10 NOVEMBER 17, 1982 (P.L.676, NO.192), KNOWN AS THE "MANUFACTURED
11 HOUSING CONSTRUCTION AND SAFETY STANDARDS AUTHORIZATION ACT."
12 (2) INDUSTRIALIZED HOUSING AS DEFINED IN THE ACT OF MAY 11,
13 1972 (P.L.286, NO.70), KNOWN AS THE "INDUSTRIALIZED HOUSING
14 ACT."
15 (WW) "USED PREBUILT HOUSING." PREBUILT HOUSING THAT WAS
16 PREVIOUSLY SUBJECT TO A SALE TO A PREBUILT HOUSING PURCHASER.
17 (XX) "PREBUILT HOUSING BUILDER." A PERSON WHO MAKES A
18 PREBUILT HOUSING SALE TO A PREBUILT HOUSING PURCHASER.
19 (YY) "PREBUILT HOUSING SALE." A SALE OF PREBUILT HOUSING TO
20 A PREBUILT HOUSING PURCHASER, INCLUDING A SALE TO A LANDLORD,
21 WITHOUT REGARD TO WHETHER THE PERSON MAKING THE SALE IS
22 RESPONSIBLE FOR INSTALLING THE PREBUILT HOUSING OR WHETHER THE
23 PREBUILT HOUSING BECOMES A REAL ESTATE STRUCTURE UPON
24 INSTALLATION. TEMPORARY INSTALLATION BY A PREBUILT HOUSING
25 BUILDER FOR DISPLAY PURPOSES OF A UNIT HELD FOR RESALE SHALL NOT
26 BE CONSIDERED OCCUPANCY FOR RESIDENTIAL PURPOSES.
27 (ZZ) "PREBUILT HOUSING PURCHASER." A PERSON WHO PURCHASES
28 PREBUILT HOUSING IN A TRANSACTION AND WHO INTENDS TO OCCUPY THE
29 UNIT FOR RESIDENTIAL PURPOSES IN THIS COMMONWEALTH.
30 SECTION 2. SECTION 202 OF THE ACT IS AMENDED BY ADDING
20000S0002B1966 - 61 -
1 SUBSECTIONS TO READ:
2 SECTION 202. IMPOSITION OF TAX.--* * *
3 (E) NOTWITHSTANDING ANY PROVISIONS OF THIS ARTICLE, THE SALE
4 OR USE OF PREPAID TELECOMMUNICATIONS EVIDENCED BY THE TRANSFER
5 OF TANGIBLE PERSONAL PROPERTY SHALL BE SUBJECT TO THE TAX
6 IMPOSED BY SUBSECTIONS (A) AND (B). THE SALE OR USE OF PREPAID
7 TELECOMMUNICATIONS NOT EVIDENCED BY THE TRANSFER OF TANGIBLE
8 PERSONAL PROPERTY SHALL BE DEEMED TO OCCUR AT THE PURCHASER'S
9 BILLING ADDRESS.
10 (F) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, TAX
11 WITH RESPECT TO SALES OF PREBUILT HOUSING SHALL BE IMPOSED ON
12 THE PREBUILT HOUSING BUILDER AT THE TIME OF THE PREBUILT HOUSING
13 SALE WITHIN THIS COMMONWEALTH AND SHALL BE PAID AND REPORTED BY
14 THE PREBUILT HOUSING BUILDER TO THE DEPARTMENT IN THE TIME AND
15 MANNER PROVIDED IN THIS ARTICLE: PROVIDED, HOWEVER, THAT A
16 MANUFACTURER OF PREBUILT HOUSING MAY, AT ITS OPTION, PRECOLLECT
17 THE TAX FROM THE PREBUILT HOUSING BUILDER AT THE TIME OF SALE TO
18 THE PREBUILT HOUSING BUILDER. IN ANY CASE WHERE PREBUILT HOUSING
19 IS PURCHASED AND THE TAX IS NOT PAID BY THE PREBUILT HOUSING
20 BUILDER OR PRECOLLECTED BY THE MANUFACTURER, THE PREBUILT
21 HOUSING PURCHASER SHALL REMIT TAX DIRECTLY TO THE DEPARTMENT IF
22 THE PREBUILT HOUSING IS USED IN THIS COMMONWEALTH WITHOUT REGARD
23 TO WHETHER THE PREBUILT HOUSING BECOMES A REAL ESTATE STRUCTURE.
24 SECTION 3. SECTION 204(26) OF THE ACT IS AMENDED AND THE
25 SECTION IS AMENDED BY ADDING CLAUSES TO READ:
26 SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY
27 SECTION 202 SHALL NOT BE IMPOSED UPON
28 * * *
29 (26) THE SALE AT RETAIL OR USE OF ALL VESTURE, WEARING
30 APPAREL, RAIMENTS, GARMENTS, FOOTWEAR AND OTHER ARTICLES OF
20000S0002B1966 - 62 -
1 CLOTHING, INCLUDING CLOTHING PATTERNS AND ITEMS THAT ARE TO BE A
2 COMPONENT PART OF CLOTHING, WORN OR CARRIED ON OR ABOUT THE
3 HUMAN BODY BUT ALL ACCESSORIES, ORNAMENTAL WEAR, FORMAL DAY OR
4 EVENING APPAREL, AND ARTICLES MADE OF FUR ON THE HIDE OR PELT OR
5 ANY MATERIAL IMITATIVE OF FUR AND ARTICLES OF WHICH SUCH FUR,
6 REAL, IMITATION OR SYNTHETIC, IS THE COMPONENT MATERIAL OF CHIEF
7 VALUE, BUT ONLY IF SUCH VALUE IS MORE THAN THREE TIMES THE VALUE
8 OF THE NEXT MOST VALUABLE COMPONENT MATERIAL, AND SPORTING GOODS
9 AND CLOTHING NOT NORMALLY USED OR WORN WHEN NOT ENGAGED IN
10 SPORTS SHALL NOT BE EXCLUDED FROM THE TAX.
11 * * *
12 (58) THE SALE AT RETAIL OR USE OF A PERSONAL COMPUTER TO AN
13 INDIVIDUAL PURCHASER DURING THE EXCLUSION PERIOD FOR NON-
14 BUSINESS USE, BUT NOT INCLUDING COMPUTER LEASING, RENTAL, REPAIR
15 OR ALTERATION. FOR PURPOSES OF THIS CLAUSE, THE PHRASE
16 "EXCLUSION PERIOD" MEANS THE PERIOD OF TIME FROM AUGUST 6, 2000,
17 TO AND INCLUDING, AUGUST 13, 2000, AND FROM FEBRUARY 18, 2001,
18 TO AND INCLUDING, FEBRUARY 25, 2001. FOR PURPOSES OF THIS
19 CLAUSE, THE PHRASE "PERSONAL COMPUTER" MEANS A LAPTOP, DESKTOP,
20 OR TOWER COMPUTER SYSTEM, INCLUDING ALL COMPUTER HARDWARE AND
21 SOFTWARE SOLD TOGETHER IN THE SAME SALE AT RETAIL, WHERE THE
22 COMPUTER SYSTEM INCLUDES, AT A MINIMUM, A CENTRAL PROCESSING
23 UNIT, RANDOM ACCESS MEMORY, A STORAGE DRIVE, A DISPLAY MONITOR
24 AND A KEYBOARD, EXCEPT THAT THE TERM SHALL NOT INCLUDE
25 MINICOMPUTERS, MAINFRAME COMPUTERS, NETWORK SERVERS, LOCAL AREA
26 NETWORK HUBS, ROUTERS AND CABLING, HARDWARE WORD PROCESSORS,
27 PERSONAL DIGITAL ASSISTANTS, GRAPHICAL CALCULATORS, HAND-HELD
28 COMPUTERS, GAME CONSOLES, INTERNET TV DEVICES, NETWORK OPERATING
29 SYSTEMS, MULTIPLE-USER LICENSED SOFTWARE AND HARDWARE, SEPARATE
30 SALES AT RETAIL OR USE OF INTERNAL OR EXTERNAL COMPONENTS AND
20000S0002B1966 - 63 -
1 SEPARATE SALES OF ADD-ON COMPONENTS. FOR PURPOSES OF THIS
2 CLAUSE, "PURCHASER" MEANS AN INDIVIDUAL WHO PAYS THE PURCHASE
3 PRICE AND TAKES DELIVERY DURING THE EXCLUSION PERIOD OR WHO
4 PLACES AN ORDER AND PAYS THE PURCHASE PRICE, EVEN IF DELIVERY
5 TAKES PLACE AFTER THE EXCLUSION PERIOD.
6 (59) THE SALE AT RETAIL OR USE OF MOLDS AND RELATED MOLD
7 EQUIPMENT USED DIRECTLY AND PREDOMINANTLY IN THE MANUFACTURE OF
8 PRODUCTS, REGARDLESS OF WHETHER THE PERSON THAT HOLDS TITLE TO
9 THE EQUIPMENT MANUFACTURES A PRODUCT.
10 (60) THE SALE OR USE OF USED PREBUILT HOUSING.
11 SECTION 4. SECTION 237(B)(1) OF THE ACT, AMENDED DECEMBER
12 28, 1972 (P.L.1633, NO.340), IS AMENDED TO READ:
13 SECTION 237. COLLECTION OF TAX.--* * *
14 (B) COLLECTION BY PERSONS MAINTAINING A PLACE OF BUSINESS IN
15 THE COMMONWEALTH. (1) EVERY PERSON MAINTAINING A PLACE OF
16 BUSINESS IN THIS COMMONWEALTH AND SELLING OR LEASING TANGIBLE
17 PERSONAL PROPERTY OR SERVICES, [INCLUDING THE SELLING OR LEASING
18 AS TANGIBLE PERSONAL PROPERTY MOBILEHOMES AS DEFINED IN "THE
19 VEHICLE CODE" WHETHER OR NOT A CERTIFICATE OF TITLE IS ISSUED BY
20 THE DEPARTMENT,] THE SALE OR USE OF WHICH IS SUBJECT TO TAX
21 SHALL COLLECT THE TAX FROM THE PURCHASER OR LESSEE AT THE TIME
22 OF MAKING THE SALE OR LEASE, AND SHALL REMIT THE TAX TO THE
23 DEPARTMENT, UNLESS SUCH COLLECTION AND REMITTANCE IS OTHERWISE
24 PROVIDED FOR IN THIS ARTICLE.
25 * * *
26 SECTION 5. SECTIONS 247.1(B) AND 304(D)(1) OF THE ACT,
27 AMENDED OR ADDED MAY 12, 1999 (P.L.26, NO.4), ARE AMENDED TO
28 READ:
29 SECTION 247.1. PARTIAL REFUND OF SALES TAX ATTRIBUTED TO BAD
30 DEBT.--* * *
20000S0002B1966 - 64 -
1 (B) THE REFUND AUTHORIZED BY THIS SECTION SHALL BE LIMITED
2 TO [ONE-THIRD] TWO-THIRDS OF THE SALES TAX PAID TO THE
3 DEPARTMENT THAT IS ATTRIBUTED TO THE BAD DEBT, LESS [ONE-THIRD]
4 TWO-THIRDS OF ANY DISCOUNT UNDER SECTION 227 OF THIS ACT.
5 PARTIAL PAYMENTS BY THE PURCHASER TO THE VENDOR SHALL BE
6 PRORATED BETWEEN THE ORIGINAL PURCHASE PRICE AND THE SALES TAX
7 DUE ON THE SALE. PAYMENTS MADE TO A VENDOR ON ANY TRANSACTION
8 WHICH INCLUDES BOTH TAXABLE AND NONTAXABLE COMPONENTS SHALL BE
9 ALLOCATED PROPORTIONALLY BETWEEN THE TAXABLE AND NONTAXABLE
10 COMPONENTS.
11 * * *
12 SECTION 304. SPECIAL TAX PROVISIONS FOR POVERTY.--* * *
13 (D) ANY CLAIM FOR SPECIAL TAX PROVISIONS HEREUNDER SHALL BE
14 DETERMINED IN ACCORDANCE WITH THE FOLLOWING:
15 (1) IF THE POVERTY INCOME OF THE CLAIMANT DURING AN ENTIRE
16 TAXABLE YEAR IS SIX THOUSAND FIVE HUNDRED DOLLARS ($6,500) OR
17 LESS, OR, IN THE CASE OF A MARRIED CLAIMANT, IF THE JOINT
18 POVERTY INCOME OF THE CLAIMANT AND THE CLAIMANT'S SPOUSE DURING
19 AN ENTIRE TAXABLE YEAR IS THIRTEEN THOUSAND DOLLARS ($13,000) OR
20 LESS, THE CLAIMANT SHALL BE ENTITLED TO A REFUND OR FORGIVENESS
21 OF ANY MONEYS WHICH HAVE BEEN PAID OVER TO (OR WOULD EXCEPT FOR
22 THE PROVISIONS OF THIS ACT BE PAYABLE TO) THE COMMONWEALTH UNDER
23 THE PROVISIONS OF THIS ARTICLE, WITH AN ADDITIONAL INCOME
24 ALLOWANCE OF [SIX THOUSAND FIVE HUNDRED DOLLARS ($6,500) IF
25 CLAIMED BY MARRIED CLAIMANTS OR OF SIX THOUSAND FIVE HUNDRED
26 DOLLARS ($6,500) IF CLAIMED BY A SINGLE CLAIMANT FOR THE FIRST
27 ADDITIONAL DEPENDENT AND AN ADDITIONAL INCOME ALLOWANCE OF SIX
28 THOUSAND FIVE HUNDRED DOLLARS ($6,500)] SEVEN THOUSAND FIVE
29 HUNDRED DOLLARS ($7,500) FOR EACH [ADDITIONAL] DEPENDENT OF THE
30 CLAIMANT. FOR PURPOSES OF THIS SUBSECTION, A CLAIMANT SHALL NOT
20000S0002B1966 - 65 -
1 BE CONSIDERED TO BE MARRIED IF:
2 (I) THE CLAIMANT AND THE CLAIMANT'S SPOUSE FILE SEPARATE
3 RETURNS; AND
4 (II) THE CLAIMANT AND THE CLAIMANT'S SPOUSE LIVE APART AT
5 ALL TIMES DURING THE LAST SIX MONTHS OF THE TAXABLE YEAR OR ARE
6 SEPARATED PURSUANT TO A WRITTEN SEPARATION AGREEMENT.
7 * * *
8 SECTION 6. THE DEFINITIONS OF "DOMESTIC ENTITY," "FOREIGN
9 ENTITY" AND "PROCESSING" IN SECTION 601 OF THE ACT ARE AMENDED
10 BY ADDING CLAUSES TO READ:
11 SECTION 601. DEFINITIONS AND REPORTS.--(A) THE FOLLOWING
12 WORDS, TERMS AND PHRASES WHEN USED IN THIS ARTICLE VI SHALL HAVE
13 THE MEANING ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE
14 CONTEXT CLEARLY INDICATES A DIFFERENT MEANING:
15 * * *
16 "DOMESTIC ENTITY." EVERY CORPORATION ORGANIZED OR
17 INCORPORATED BY OR UNDER ANY LAWS OF THE COMMONWEALTH, OTHER
18 THAN CORPORATIONS OF THE FIRST CLASS AND COOPERATIVE
19 AGRICULTURAL ASSOCIATIONS NOT HAVING CAPITAL STOCK AND NOT
20 CONDUCTED FOR PROFIT, BANKS, SAVINGS INSTITUTIONS, TITLE
21 INSURANCE OR TRUST COMPANIES, BUILDING AND LOAN ASSOCIATIONS AND
22 INSURANCE COMPANIES IS A DOMESTIC ENTITY. THE TERM "DOMESTIC
23 ENTITY" SHALL NOT INCLUDE:
24 * * *
25 (5) A DOMESTIC BUSINESS TRUST PROVIDED:
26 (I) THE TRUST IS CREATED OR MANAGED BY AN ENTITY SUBJECT TO
27 THE TAX IMPOSED BY ARTICLES VII, VII-A OR XV OR BY AN AFFILIATE
28 OF THAT ENTITY THAT SHARES AT LEAST EIGHTY PER CENT COMMON
29 OWNERSHIP;
30 (II) THE TRUST IS CREATED AND MANAGED FOR THE PURPOSE OF
20000S0002B1966 - 66 -
1 FACILITATING THE SECURITIZATION OF INTANGIBLE ASSETS; AND
2 (III) THE TRUST IS CLASSIFIED AS A PARTNERSHIP OR A
3 DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES.
4 * * *
5 "FOREIGN ENTITY." EVERY CORPORATION INCORPORATED OR
6 ORGANIZED BY OR UNDER THE LAWS OF ANY JURISDICTION OTHER THAN
7 THE COMMONWEALTH, AND DOING BUSINESS IN AND LIABLE TO TAXATION
8 WITHIN THE COMMONWEALTH OR CARRYING ON ACTIVITIES IN THE
9 COMMONWEALTH, INCLUDING SOLICITATION OR EITHER OWNING OR HAVING
10 CAPITAL OR PROPERTY EMPLOYED OR USED IN THE COMMONWEALTH BY OR
11 IN THE NAME OF ANY LIMITED PARTNERSHIP OR JOINT-STOCK
12 ASSOCIATION, COPARTNERSHIP OR COPARTNERSHIPS, PERSON OR PERSONS,
13 OR IN ANY OTHER MANNER DOING BUSINESS WITHIN AND LIABLE TO
14 TAXATION WITHIN THE COMMONWEALTH OTHER THAN BANKS, SAVINGS
15 INSTITUTIONS, TITLE INSURANCE OR TRUST COMPANIES, BUILDING AND
16 LOAN ASSOCIATIONS AND INSURANCE COMPANIES IS A FOREIGN ENTITY.
17 THE TERM "FOREIGN ENTITY" SHALL NOT INCLUDE:
18 * * *
19 (5) A FOREIGN BUSINESS TRUST PROVIDED:
20 (I) THE TRUST IS CREATED OR MANAGED BY AN ENTITY SUBJECT TO
21 THE TAX IMPOSED BY ARTICLES VII, VII-A OR XV OR BY AN AFFILIATE
22 OF THAT ENTITY THAT SHARES AT LEAST EIGHTY PER CENT COMMON
23 OWNERSHIP;
24 (II) THE TRUST IS CREATED AND MANAGED FOR THE PURPOSE OF
25 FACILITATING THE SECURITIZATION OF INTANGIBLE ASSETS; AND
26 (III) THE TRUST IS CLASSIFIED AS A PARTNERSHIP OR A
27 DISREGARDED ENTITY FOR FEDERAL INCOME TAX PURPOSES.
28 * * *
29 "PROCESSING." THE FOLLOWING ACTIVITIES WHEN ENGAGED IN AS A
30 BUSINESS ENTERPRISE:
20000S0002B1966 - 67 -
1 * * *
2 (18) THE PREPARATION OF DRY OR LIQUID FERTILIZER FOR SALE.
3 * * *
4 SECTION 7. SECTION 602(A), (B), (E), (F), (G), (H) AND (I)
5 OF THE ACT, AMENDED MAY 12, 1999 (P.L.26, NO.4) AND DECEMBER 15,
6 1999 (P.L.926, NO.63), ARE AMENDED TO READ:
7 SECTION 602. IMPOSITION OF TAX.--(A) THAT EVERY DOMESTIC
8 ENTITY FROM WHICH A REPORT IS REQUIRED UNDER SECTION 601 HEREOF,
9 SHALL BE SUBJECT TO, AND PAY TO THE DEPARTMENT ANNUALLY, A TAX
10 WHICH IS [THE GREATER OF (I)] THE AMOUNT COMPUTED BY MULTIPLYING
11 EACH DOLLAR OF THE CAPITAL STOCK VALUE AS DEFINED IN SECTION
12 601(A) BY THE APPROPRIATE RATE OF TAX AS SET FORTH IN SUBSECTION
13 (H); [OR (II) THE MINIMUM TAX SET FORTH IN SUBSECTION (I),]
14 EXCEPT THAT ANY DOMESTIC ENTITY OR COMPANY SUBJECT TO THE TAX
15 PRESCRIBED HEREIN MAY ELECT TO COMPUTE AND PAY ITS TAX UNDER AND
16 IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (B) OF THIS
17 SECTION 602: PROVIDED, THAT[, EXCEPT FOR THE IMPOSITION OF THE
18 MINIMUM TAX SET FORTH IN SUBSECTION (I),] THE PROVISIONS OF THIS
19 SECTION SHALL NOT APPLY TO THE TAXATION OF THE CAPITAL STOCK OF
20 ENTITIES ORGANIZED FOR MANUFACTURING, PROCESSING, RESEARCH OR
21 DEVELOPMENT PURPOSES, WHICH IS INVESTED IN AND ACTUALLY AND
22 EXCLUSIVELY EMPLOYED IN CARRYING ON MANUFACTURING, PROCESSING,
23 RESEARCH OR DEVELOPMENT WITHIN THE STATE, EXCEPT SUCH ENTITIES
24 AS ENJOY AND EXERCISE THE RIGHT OF EMINENT DOMAIN, BUT EVERY
25 ENTITY ORGANIZED FOR THE PURPOSE OF MANUFACTURING, PROCESSING,
26 RESEARCH OR DEVELOPMENT EXCEPT SUCH ENTITIES AS ENJOY AND
27 EXERCISE THE RIGHT OF EMINENT DOMAIN SHALL PAY THE STATE TAX OF
28 [THE GREATER OF (I)] THE AMOUNT COMPUTED BY MULTIPLYING EACH
29 DOLLAR OF THE CAPITAL STOCK VALUE AS DEFINED IN SECTION 601(A)
30 BY THE APPROPRIATE RATE OF TAX AS SET FORTH IN SUBSECTION (H)[;
20000S0002B1966 - 68 -
1 OR (II) THE MINIMUM TAX SET FORTH IN SUBSECTION (I),] UPON SUCH
2 PROPORTION OF ITS CAPITAL STOCK, IF ANY, AS MAY BE INVESTED IN
3 ANY PROPERTY OR BUSINESS NOT STRICTLY INCIDENT OR APPURTENANT TO
4 THE MANUFACTURING, PROCESSING, RESEARCH OR DEVELOPMENT BUSINESS,
5 IN ADDITION TO THE LOCAL TAXES ASSESSED UPON ITS PROPERTY IN THE
6 DISTRICT WHERE LOCATED, IT BEING THE OBJECT OF THIS PROVISION TO
7 RELIEVE FROM STATE TAXATION[, EXCEPT FOR IMPOSITION OF THE
8 MINIMUM TAX SET FORTH IN SUBSECTION (I),] ONLY SO MUCH OF THE
9 CAPITAL STOCK AS IS INVESTED PURELY IN THE MANUFACTURING,
10 PROCESSING, RESEARCH OR DEVELOPMENT PLANT AND BUSINESS: AND
11 PROVIDED FURTHER, THAT[, EXCEPT FOR THE IMPOSITION OF THE
12 MINIMUM TAX SET FORTH IN SUBSECTION (I),] THE PROVISIONS OF THIS
13 SECTION SHALL NOT APPLY TO THE TAXATION OF SO MUCH OF THE
14 CAPITAL STOCK VALUE ATTRIBUTABLE TO STUDENT LOAN ASSETS OWNED OR
15 HELD BY AN ENTITY CREATED FOR THE SECURITIZATION OF STUDENT
16 LOANS OR BY A TRUSTEE ON ITS BEHALF.
17 (B) (1) EVERY FOREIGN ENTITY FROM WHICH A REPORT IS
18 REQUIRED UNDER SECTION 601 HEREOF, SHALL BE SUBJECT TO AND PAY
19 TO THE DEPARTMENT ANNUALLY, A FRANCHISE TAX WHICH IS [THE
20 GREATER OF (I)] THE AMOUNT COMPUTED BY MULTIPLYING EACH DOLLAR
21 OF THE CAPITAL STOCK VALUE AS DEFINED IN SECTION 601(A) BY THE
22 APPROPRIATE RATE OF TAX AS SET FORTH IN SUBSECTION (H)[; OR (II)
23 THE MINIMUM TAX SET FORTH IN SUBSECTION (I),] UPON A TAXABLE
24 VALUE TO BE DETERMINED IN THE FOLLOWING MANNER. THE CAPITAL
25 STOCK VALUE SHALL BE ASCERTAINED IN THE MANNER PRESCRIBED IN
26 SECTION 601(A) OF THIS ARTICLE. THE TAXABLE VALUE SHALL THEN BE
27 DETERMINED BY EMPLOYING THE RELEVANT APPORTIONMENT FACTORS SET
28 FORTH IN ARTICLE IV: PROVIDED, THAT THE MANUFACTURING,
29 PROCESSING, RESEARCH AND DEVELOPMENT EXEMPTIONS CONTAINED UNDER
30 SECTION 602(A) SHALL ALSO APPLY TO FOREIGN CORPORATIONS. IN
20000S0002B1966 - 69 -
1 DETERMINING THE RELEVANT APPORTIONMENT FACTORS, THE FOLLOWING
2 SHALL APPLY:
3 (I) FOR [ALL] TAXABLE YEARS [OTHER THAN SPECIFICALLY SET
4 FORTH IN SUBCLAUSE (II)] BEGINNING BEFORE JANUARY 1, 1999, THE
5 NUMERATOR OF THE PROPERTY, PAYROLL OR SALES FACTORS SHALL NOT
6 INCLUDE ANY PROPERTY, PAYROLL OR SALES ATTRIBUTABLE TO
7 MANUFACTURING, PROCESSING, RESEARCH OR DEVELOPMENT ACTIVITIES IN
8 THE COMMONWEALTH;
9 (II) FOR [THE] TAXABLE YEARS BEGINNING AFTER DECEMBER 31,
10 1998, [AND BEGINNING BEFORE JANUARY 1, 2001,] THE NUMERATOR OF
11 THE PROPERTY OR PAYROLL FACTORS SHALL NOT INCLUDE ANY PROPERTY
12 OR PAYROLL ATTRIBUTABLE TO MANUFACTURING, PROCESSING, RESEARCH
13 OR DEVELOPMENT ACTIVITIES IN THE COMMONWEALTH, AND ANY PROPERTY
14 OR PAYROLL ATTRIBUTABLE TO MANUFACTURING, PROCESSING, RESEARCH
15 OR DEVELOPMENT ACTIVITIES OUTSIDE OF THE COMMONWEALTH SHALL ALSO
16 BE EXCLUDED FROM THE NUMERATOR OF THE PROPERTY OR PAYROLL
17 FACTORS. [EXCEPT FOR THE IMPOSITION OF THE MINIMUM TAX SET FORTH
18 IN SUBSECTION (I), THE] THE PROVISIONS OF THIS SECTION SHALL NOT
19 APPLY TO THE TAXATION OF SO MUCH OF THE CAPITAL STOCK VALUE
20 ATTRIBUTABLE TO STUDENT LOAN ASSETS OWNED OR HELD BY AN ENTITY
21 CREATED FOR THE SECURITIZATION OF STUDENT LOANS OR BY A TRUSTEE
22 ON ITS BEHALF. ANY FOREIGN CORPORATION, JOINT-STOCK ASSOCIATION,
23 LIMITED PARTNERSHIP OR COMPANY SUBJECT TO THE TAX PRESCRIBED
24 HEREIN MAY ELECT TO COMPUTE AND PAY ITS TAX UNDER SECTION
25 602(A): PROVIDED, THAT ANY FOREIGN CORPORATION, JOINT-STOCK
26 ASSOCIATION, LIMITED PARTNERSHIP OR COMPANY ELECTING TO COMPUTE
27 AND PAY ITS TAX UNDER SECTION 602(A) SHALL BE TREATED AS IF IT
28 WERE A DOMESTIC CORPORATION FOR THE PURPOSE OF DETERMINING WHICH
29 OF ITS ASSETS ARE EXEMPT FROM TAXATION AND FOR THE PURPOSE OF
30 DETERMINING THE PROPORTION OF THE VALUE OF ITS CAPITAL STOCK
20000S0002B1966 - 70 -
1 WHICH IS SUBJECT TO TAXATION.
2 (2) THE PROVISIONS OF THIS ARTICLE SHALL APPLY TO THE
3 TAXATION OF ENTITIES ORGANIZED FOR MANUFACTURING, PROCESSING,
4 RESEARCH OR DEVELOPMENT PURPOSES, BUT SHALL NOT APPLY TO SUCH
5 ENTITIES AS ENJOY AND EXERCISE THE RIGHT OF EMINENT DOMAIN.
6 * * *
7 (E) ANY HOLDING COMPANY SUBJECT TO THE CAPITAL STOCK TAX OR
8 THE FRANCHISE TAX IMPOSED BY THIS SECTION MAY ELECT TO COMPUTE
9 THE CAPITAL STOCK OR FRANCHISE TAX BY APPLYING THE RATE OF TAX
10 PROVIDED IN SUBSECTION (H) TO TEN PER CENT OF THE CAPITAL STOCK
11 VALUE AS DEFINED IN SECTION 601(A)[, BUT IN NO CASE SHALL THE
12 TAX SO COMPUTED BE LESS THAN THE MINIMUM TAX SET FORTH IN
13 SUBSECTION (I)]. IF EXERCISED, THIS ELECTION SHALL BE IN LIEU OF
14 ANY OTHER APPORTIONMENT OR ALLOCATION TO WHICH SUCH COMPANY
15 WOULD OTHERWISE BE ENTITLED.
16 (F) EVERY DOMESTIC CORPORATION AND EVERY FOREIGN CORPORATION
17 (I) REGISTERED TO DO BUSINESS IN PENNSYLVANIA; (II) WHICH
18 MAINTAINS AN OFFICE IN PENNSYLVANIA; (III) WHICH HAS FILED A
19 TIMELY ELECTION TO BE TAXED AS A REGULATED INVESTMENT COMPANY
20 WITH THE FEDERAL GOVERNMENT; AND (IV) WHICH DULY QUALIFIES TO BE
21 TAXED AS A REGULATED INVESTMENT COMPANY UNDER THE PROVISIONS OF
22 THE INTERNAL REVENUE CODE OF 1954 AS AMENDED, SHALL BE TAXED AS
23 A REGULATED INVESTMENT COMPANY AND SHALL BE SUBJECT TO THE
24 CAPITAL STOCK OR FRANCHISE TAX IMPOSED BY SECTION 602, IN EITHER
25 CASE FOR THE PRIVILEGE OF HAVING AN OFFICE IN PENNSYLVANIA,
26 WHICH TAX SHALL BE COMPUTED PURSUANT TO THE PROVISIONS OF THIS
27 SUBSECTION IN LIEU OF ALL OTHER PROVISIONS OF THIS SECTION 602.
28 THE TAX SHALL BE IN AN AMOUNT WHICH IS [THE GREATER OF THE
29 MINIMUM TAX SET FORTH IN SUBSECTION (I) OR] THE SUM OF THE
30 AMOUNTS DETERMINED PURSUANT TO CLAUSES (1) AND (2):
20000S0002B1966 - 71 -
1 (1) THE AMOUNT DETERMINED PURSUANT TO THIS CLAUSE SHALL BE
2 SEVENTY-FIVE DOLLARS ($75) TIMES THAT NUMBER WHICH IS THE RESULT
3 OF DIVIDING THE NET ASSET VALUE OF THE REGULATED INVESTMENT
4 COMPANY BY ONE MILLION, ROUNDED TO THE NEAREST MULTIPLE OF
5 SEVENTY-FIVE DOLLARS ($75). NET ASSET VALUE SHALL BE DETERMINED
6 BY ADDING THE MONTHLY NET ASSET VALUES AS OF THE LAST DAY OF
7 EACH MONTH DURING THE TAXABLE PERIOD AND DIVIDING THE TOTAL SUM
8 BY THE NUMBER OF MONTHS INVOLVED. EACH SUCH MONTHLY NET ASSET
9 VALUE SHALL BE THE ACTUAL MARKET VALUE OF ALL ASSETS OWNED
10 WITHOUT ANY EXEMPTIONS OR EXCLUSIONS, LESS ALL LIABILITIES,
11 DEBTS AND OTHER OBLIGATIONS.
12 (2) THE AMOUNT DETERMINED PURSUANT TO THIS CLAUSE SHALL BE
13 THE AMOUNT WHICH IS THE RESULT OF MULTIPLYING THE RATE OF
14 TAXATION APPLICABLE FOR PURPOSES OF THE PERSONAL INCOME TAX
15 DURING THE SAME TAXABLE YEAR TIMES THE APPORTIONED UNDISTRIBUTED
16 PERSONAL INCOME TAX INCOME OF THE REGULATED INVESTMENT COMPANY.
17 FOR THE PURPOSES OF THIS CLAUSE:
18 (A) PERSONAL INCOME TAX INCOME SHALL MEAN INCOME TO THE
19 EXTENT ENUMERATED AND CLASSIFIED IN SECTION 303.
20 (B) UNDISTRIBUTED PERSONAL INCOME TAX INCOME SHALL MEAN ALL
21 PERSONAL INCOME TAX INCOME OTHER THAN PERSONAL INCOME TAX INCOME
22 UNDISTRIBUTED ON ACCOUNT OF THE CAPITAL STOCK OR FOREIGN
23 FRANCHISE TAX, LESS ALL PERSONAL INCOME TAX INCOME DISTRIBUTED
24 TO SHAREHOLDERS. AT THE ELECTION OF THE COMPANY, INCOME
25 DISTRIBUTED AFTER THE CLOSE OF A TAXABLE YEAR, BUT DEEMED
26 DISTRIBUTED DURING THE TAXABLE YEAR FOR FEDERAL INCOME TAX
27 PURPOSES, SHALL BE DEEMED DISTRIBUTED DURING THAT YEAR FOR
28 PURPOSES OF THIS CLAUSE. IF A COMPANY IN A TAXABLE YEAR HAS BOTH
29 CURRENT INCOME AND INCOME ACCUMULATED FROM A PRIOR YEAR,
30 DISTRIBUTIONS DURING THE YEAR SHALL BE DEEMED TO HAVE BEEN MADE
20000S0002B1966 - 72 -
1 FIRST FROM CURRENT INCOME.
2 (C) UNDISTRIBUTED PERSONAL INCOME TAX INCOME SHALL BE
3 APPORTIONED TO PENNSYLVANIA BY A FRACTION, THE NUMERATOR OF
4 WHICH IS ALL INCOME DISTRIBUTED DURING THE TAXABLE PERIOD TO
5 SHAREHOLDERS WHO ARE RESIDENT INDIVIDUALS, ESTATES OR TRUSTS AND
6 THE DENOMINATOR OF WHICH IS ALL INCOME DISTRIBUTED DURING THE
7 TAXABLE PERIOD. RESIDENT TRUSTS SHALL NOT INCLUDE CHARITABLE,
8 PENSION OR PROFIT-SHARING, OR RETIREMENT TRUSTS.
9 (D) PERSONAL INCOME TAX INCOME AND OTHER INCOME OF A COMPANY
10 SHALL EACH BE DEEMED TO BE EITHER DISTRIBUTED TO SHAREHOLDERS OR
11 UNDISTRIBUTED IN THE PROPORTION EACH CATEGORY BEARS TO ALL
12 INCOME RECEIVED BY THE COMPANY DURING THE TAXABLE YEAR.
13 (G) IN THE EVENT THAT A DOMESTIC OR FOREIGN ENTITY IS
14 REQUIRED TO FILE A REPORT PURSUANT TO SECTION 601(B) ON OTHER
15 THAN AN ANNUAL BASIS, THE TAX IMPOSED BY THIS SECTION[,
16 INCLUDING THE MINIMUM TAX SET FORTH IN SUBSECTION (I),] SHALL BE
17 PRORATED TO REFLECT THE PORTION OF A TAXABLE YEAR FOR WHICH THE
18 REPORT IS FILED BY MULTIPLYING THE TAX LIABILITY BY A FRACTION
19 EQUAL TO THE NUMBER OF DAYS IN THE TAXABLE YEAR DIVIDED BY THREE
20 HUNDRED SIXTY-FIVE DAYS.
21 (H) THE RATE OF TAX FOR PURPOSES OF THE CAPITAL STOCK AND
22 FRANCHISE TAX FOR TAXABLE YEARS BEGINNING WITHIN THE DATES SET
23 FORTH SHALL BE AS FOLLOWS:
24 TAXABLE YEAR REGULAR RATE SURTAX TOTAL RATE
25 JANUARY 1, 1971, TO
26 DECEMBER 31, 1986 10 MILLS 0 10 MILLS
27 JANUARY 1, 1987, TO
28 DECEMBER 31, 1987 9 MILLS 0 9 MILLS
29 JANUARY 1, 1988, TO
30 DECEMBER 31, 1990 9.5 MILLS 0 9.5 MILLS
20000S0002B1966 - 73 -
1 JANUARY 1, 1991, TO
2 DECEMBER 31, 1991 11 MILLS 2 MILLS 13 MILLS
3 JANUARY 1, 1992, TO
4 DECEMBER 31, 1997 11 MILLS 1.75 MILLS 12.75 MILLS
5 JANUARY 1, 1998, TO
6 DECEMBER 31, 1998 11 MILLS .99 MILLS 11.99 MILLS
7 [JANUARY 1, 1999, AND
8 EACH YEAR THEREAFTER 10.99 MILLS 0 10.99 MILLS]
9 JANUARY 1, 1999, TO
10 DECEMBER 31, 1999 10.99 MILLS 0 10.99 MILLS
11 JANUARY 1, 2000, TO
12 DECEMBER 31, 2000 8.99 MILLS 0 8.99 MILLS
13 JANUARY 1, 2001, TO
14 DECEMBER 31, 2001 7.49 MILLS 0 7.49 MILLS
15 JANUARY 1, 2002, TO
16 DECEMBER 31, 2002 6.49 MILLS 0 6.49 MILLS
17 JANUARY 1, 2003, TO
18 DECEMBER 31, 2003 5.49 MILLS 0 5.49 MILLS
19 JANUARY 1, 2004, TO
20 DECEMBER 31, 2004 4.49 MILLS 0 4.49 MILLS
21 JANUARY 1, 2005, TO
22 DECEMBER 31, 2005 3.49 MILLS 0 3.49 MILLS
23 JANUARY 1, 2006, TO
24 DECEMBER 31, 2006 2.49 MILLS 0 2.49 MILLS
25 JANUARY 1, 2007, TO
26 DECEMBER 31, 2007 1.49 MILLS 0 1.49 MILLS
27 JANUARY 1, 2008, TO
28 DECEMBER 31, 2008 .49 MILLS 0 .49 MILLS
29 [(I) THE MINIMUM AMOUNT OF CAPITAL STOCK AND FRANCHISE TAX
30 FOR THE TAXABLE YEARS BEGINNING WITHIN THE DATES SET FORTH SHALL
20000S0002B1966 - 74 -
1 BE AS FOLLOWS:
2 TAXABLE YEAR BEGINNING MINIMUM TAX
3 JANUARY 1, 1971, TO DECEMBER 31, 1983 NO MINIMUM TAX IMPOSED
4 JANUARY 1, 1984, TO DECEMBER 31, 1990 $75 MINIMUM TAX
5 JANUARY 1, 1991, TO DECEMBER 31, 1998 $300 MINIMUM TAX
6 JANUARY 1, 1999, AND EACH TAXABLE YEAR
7 THEREAFTER $200 MINIMUM TAX]
8 SECTION 8. SECTION 602.5 OF THE ACT, AMENDED MAY 12, 1999
9 (P.L.26, NO.4), IS AMENDED TO READ:
10 [SECTION 602.5. SHOWS AND FLEA MARKETS.--A CORPORATION THAT
11 CONFINES ITS ACTIVITIES IN THIS COMMONWEALTH DURING THE COURSE
12 OF A CALENDAR YEAR TO ATTENDANCE AT AN ORGANIZED "SHOW" OR "FLEA
13 MARKET" FOR THE PURPOSE OF EXHIBITING ITS GOODS AND MAKING SALES
14 THEREFROM SHALL NOT BE SUBJECT TO THE MINIMUM TAX IMPOSED UNDER
15 THIS ARTICLE, BASED SOLELY UPON SUCH ATTENDANCE IF LIMITED TO NO
16 MORE THAN TWENTY DAYS DURING THE YEAR, WITH NO MORE THAN SEVEN
17 DAYS BEING CONSECUTIVE.]
18 SECTION 9. SECTION 606 OF THE ACT IS AMENDED TO READ:
19 SECTION 606. EFFECTIVE DATE.--[THIS] (A) EXCEPT AS PROVIDED
20 IN SUBSECTION (B), THIS ARTICLE SHALL TAKE EFFECT IMMEDIATELY,
21 AND THE TAX IMPOSED SHALL APPLY TO TAXABLE YEARS BEGINNING
22 JANUARY 1, 1971 AND THEREAFTER.
23 (B) THIS ARTICLE SHALL EXPIRE FOR TAXABLE YEARS BEGINNING
24 AFTER DECEMBER 31, 2008.
25 SECTION 10. SECTION 901 OF THE ACT IS AMENDED BY ADDING
26 DEFINITIONS TO READ:
27 SECTION 901. DEFINITIONS.--THE FOLLOWING TERMS, WHEN USED IN
28 THIS ACT, SHALL HAVE THE MEANING ASCRIBED TO THEM IN THIS
29 SECTION:
30 * * *
20000S0002B1966 - 75 -
1 (4) "ASSESSMENT" MEANS AN ASSESSMENT IMPOSED BY THE GUARANTY
2 ASSOCIATION PURSUANT TO SECTION 1808 OF THE ACT OF MAY 17, 1921
3 (P.L.682, NO.284), KNOWN AS "THE INSURANCE COMPANY LAW OF 1921."
4 (5) "GUARANTY ASSOCIATION" MEANS THE PENNSYLVANIA PROPERTY
5 AND CASUALTY INSURANCE GUARANTY ASSOCIATION CREATED PURSUANT TO
6 SECTION 1803 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN
7 AS "THE INSURANCE COMPANY LAW OF 1921."
8 (6) "MEMBER INSURER" MEANS AN INSURANCE COMPANY, ASSOCIATION
9 OR EXCHANGE WHICH IS REQUIRED TO PARTICIPATE IN THE GUARANTY
10 ASSOCIATION PURSUANT TO ARTICLE XVIII OF THE ACT OF MAY 17, 1921
11 (P.L.682, NO.284), KNOWN AS "THE INSURANCE COMPANY LAW OF 1921."
12 SECTION 11. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
13 SECTION 902.1. CREDITS FOR ASSESSMENTS PAID.--(A) A MEMBER
14 INSURER THAT HAS PAID ASSESSMENTS TO THE GUARANTY ASSOCIATION
15 SHALL BE ENTITLED TO A CREDIT AS AUTHORIZED BY THIS SECTION. THE
16 CREDIT SHALL BE EQUAL TO THE AMOUNT BY WHICH THE ASSESSMENT PAID
17 TO THE GUARANTY ASSOCIATION EXCEEDS ONE PER CENT OF THE MEMBER
18 INSURER'S "NET DIRECT WRITTEN PREMIUMS," AS DEFINED IN SECTION
19 1802 OF THE ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE
20 INSURANCE COMPANY LAW OF 1921," AS CALCULATED FOR THE PRECEDING
21 CALENDAR YEAR. EXCEPT AS PROVIDED IN SUBSECTION (E), THE CREDIT
22 AUTHORIZED BY THIS SECTION SHALL BE APPLIED AGAINST THE TAXES
23 DUE UNDER THIS ARTICLE IN EQUAL PORTIONS FOR EACH OF THE FIVE
24 CALENDAR YEARS FOLLOWING PAYMENT OF THE ASSESSMENT. IN THE EVENT
25 A MEMBER INSURER SHOULD CEASE DOING BUSINESS, ALL UNUSED CREDITS
26 MAY BE APPLIED AGAINST ITS PREMIUM TAX LIABILITY FOR THE YEAR IT
27 CEASES DOING BUSINESS. A MEMBER INSURER IS NOT ENTITLED TO A
28 REFUND OF ANY UNUSED CREDIT.
29 (B) ANY SUMS WHICH ARE ACQUIRED BY A MEMBER INSURER FROM THE
30 GUARANTY ASSOCIATION EITHER BY REFUND OR BY RECEIPT OF AN OFFSET
20000S0002B1966 - 76 -
1 WHICH MAY BE USED AGAINST AN ASSESSMENT AND WHICH HAVE BEEN USED
2 IN CALCULATING A CREDIT UNDER SUBSECTION (A) SHALL REDUCE THE
3 AMOUNT OF UNUSED CREDITS OR SHALL BE PAID BY SUCH INSURER TO THE
4 COMMONWEALTH, AS THE DEPARTMENT OF REVENUE MAY REQUIRE. THE
5 GUARANTY ASSOCIATION SHALL NOTIFY THE DEPARTMENT AND THE
6 INSURANCE COMMISSIONER THAT SUCH SUMS HAVE BEEN ACQUIRED BY THE
7 MEMBER INSURER.
8 (C) NO CREDIT AGAINST PREMIUM TAX LIABILITY SHALL BE
9 PERMITTED TO THE EXTENT THAT A MEMBER INSURER'S RATES AND
10 PREMIUMS HAVE BEEN ADJUSTED AS PERMITTED IN SECTION 1810 OF THE
11 ACT OF MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE INSURANCE
12 COMPANY LAW OF 1921."
13 (D) THE CREDITS ALLOWED BY THIS SECTION SHALL NOT REDUCE THE
14 AMOUNTS WHICH WOULD OTHERWISE BE PAYABLE FOR FIREMEN'S RELIEF
15 PENSION OR RETIREMENT PURPOSES OR FOR POLICE PENSION, RETIREMENT
16 OR DISABILITY PURPOSES. THE DEPARTMENT SHALL TRANSFER BY JUNE 30
17 OF EACH FISCAL YEAR AN AMOUNT EQUAL TO THE CREDITS TAKEN UNDER
18 THIS SECTION BY FOREIGN FIRE AND CASUALTY INSURANCE COMPANIES
19 FROM THE GENERAL FUND TO THE MUNICIPAL PENSION AID FUND AND THE
20 FIRE INSURANCE TAX FUND, AS APPROPRIATE.
21 (E) CREDITS TAKEN BY AN INSURER UNDER THIS SECTION SHALL NOT
22 BE INCLUDED IN DETERMINING LIABILITY FOR RETALIATORY TAXES
23 IMPOSED UNDER SECTION 212 OF THE ACT OF MAY 17, 1921 (P.L.789,
24 NO.285), KNOWN AS "THE INSURANCE DEPARTMENT ACT OF 1921."
25 SECTION 12. SECTION 1101(A) OF THE ACT, AMENDED MAY 12, 1999
26 (P.L.26, NO.4), IS AMENDED TO READ:
27 SECTION 1101. IMPOSITION OF TAX.--(A) GENERAL RULE.--EVERY
28 PIPELINE COMPANY, CONDUIT COMPANY, STEAMBOAT COMPANY, CANAL
29 COMPANY, SLACK WATER NAVIGATION COMPANY, TRANSPORTATION COMPANY,
30 AND EVERY OTHER COMPANY, ASSOCIATION, JOINT-STOCK ASSOCIATION,
20000S0002B1966 - 77 -
1 OR LIMITED PARTNERSHIP, NOW OR HEREAFTER INCORPORATED OR
2 ORGANIZED BY OR UNDER ANY LAW OF THIS COMMONWEALTH, OR NOW OR
3 HEREAFTER ORGANIZED OR INCORPORATED BY ANY OTHER STATE OR BY THE
4 UNITED STATES OR ANY FOREIGN GOVERNMENT, AND DOING BUSINESS IN
5 THIS COMMONWEALTH, AND EVERY COPARTNERSHIP, PERSON OR PERSONS
6 OWNING, OPERATING OR LEASING TO OR FROM ANOTHER CORPORATION,
7 COMPANY, ASSOCIATION, JOINT-STOCK ASSOCIATION, LIMITED
8 PARTNERSHIP, COPARTNERSHIP, PERSON OR PERSONS, ANY PIPELINE,
9 CONDUIT, STEAMBOAT, CANAL, SLACK WATER NAVIGATION, OR OTHER
10 DEVICE FOR THE TRANSPORTATION OF FREIGHT, PASSENGERS, BAGGAGE,
11 OR OIL, EXCEPT MOTOR VEHICLES AND RAILROADS, AND EVERY LIMITED
12 PARTNERSHIP, ASSOCIATION, JOINT-STOCK ASSOCIATION, CORPORATION
13 OR COMPANY ENGAGED IN, OR HEREAFTER ENGAGED IN, THE
14 TRANSPORTATION OF FREIGHT OR OIL WITHIN THIS STATE, AND EVERY
15 TELEPHONE COMPANY AND TELEGRAPH COMPANY NOW OR HEREAFTER
16 INCORPORATED OR ORGANIZED BY OR UNDER ANY LAW OF THIS
17 COMMONWEALTH, OR NOW OR HEREAFTER ORGANIZED OR INCORPORATED BY
18 ANY OTHER STATE OR BY THE UNITED STATES OR ANY FOREIGN
19 GOVERNMENT AND DOING BUSINESS IN THIS COMMONWEALTH, AND EVERY
20 LIMITED PARTNERSHIP, ASSOCIATION, JOINT-STOCK ASSOCIATION,
21 COPARTNERSHIP, PERSON OR PERSONS, ENGAGED IN TELEPHONE OR
22 TELEGRAPH BUSINESS IN THIS COMMONWEALTH, SHALL PAY TO THE STATE
23 TREASURER, THROUGH THE DEPARTMENT OF REVENUE, A TAX OF FORTY-
24 FIVE MILLS WITH A SURTAX EQUAL TO FIVE MILLS UPON EACH DOLLAR OF
25 THE GROSS RECEIPTS OF THE CORPORATION, COMPANY OR ASSOCIATION,
26 LIMITED PARTNERSHIP, JOINT-STOCK ASSOCIATION, COPARTNERSHIP,
27 PERSON OR PERSONS, RECEIVED FROM:
28 (1) PASSENGERS, BAGGAGE, OIL, AND FREIGHT TRANSPORTED WHOLLY
29 WITHIN THIS STATE[, FROM]; AND
30 (2) TELEGRAPH OR TELEPHONE MESSAGES TRANSMITTED WHOLLY
20000S0002B1966 - 78 -
1 WITHIN THIS STATE, EXCEPT GROSS RECEIPTS DERIVED FROM:
2 (I) THE SALES OF ACCESS TO THE INTERNET, AS SET FORTH IN
3 ARTICLE II, MADE TO THE ULTIMATE CONSUMER [AND FROM THE
4 TRANSPORTATION OF OIL DONE WHOLLY WITHIN THIS STATE]; AND
5 (II) THE SALES FOR RESALE TO PERSONS, PARTNERSHIPS,
6 ASSOCIATIONS, CORPORATIONS OR POLITICAL SUBDIVISIONS SUBJECT TO
7 THE TAX IMPOSED BY THIS ARTICLE UPON GROSS RECEIPTS DERIVED FROM
8 SUCH RESALE OF TELECOMMUNICATIONS SERVICES INCLUDING:
9 (A) TELECOMMUNICATIONS EXCHANGE ACCESS TO INTERCONNECT WITH
10 A LOCAL EXCHANGE CARRIER'S NETWORK; AND
11 (B) NETWORK ELEMENTS ON AN UNBUNDLED BASIS.
12 * * *
13 SECTION 13. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
14 SECTION 1110-A. TAX TRANSITIONS IMPACT LIMITATIONS.--(A)
15 NOTWITHSTANDING ANY PROVISION OF THIS ARTICLE TO THE CONTRARY:
16 (1) THE TOTAL TAX IMPOSED ON THE UTILITY REALTY OF A PUBLIC
17 UTILITY FOR TAXABLE YEAR 1998 SHALL NOT EXCEED TWO HUNDRED FIFTY
18 PER CENT OF THE TOTAL TAX IMPOSED UPON SUCH UTILITY REALTY FOR
19 TAXABLE YEAR 1997. THIS CLAUSE SHALL NOT APPLY TO THE
20 CALCULATION OF THE MILLAGE RATE UNDER SECTIONS 1102-A(B) AND
21 1104-A(B).
22 (2) THE TOTAL TAX IMPOSED ON THE UTILITY REALTY OF A PUBLIC
23 UTILITY FOR TAXABLE YEAR 1999 SHALL NOT EXCEED TWO HUNDRED FIFTY
24 PER CENT OF THE TOTAL TAX IMPOSED UPON SUCH UTILITY REALTY FOR
25 TAXABLE YEAR 1998.
26 (3) THE TOTAL TAX IMPOSED ON THE UTILITY REALTY OF A PUBLIC
27 UTILITY FOR TAXABLE YEAR 2000 SHALL NOT EXCEED TWO HUNDRED FIFTY
28 PER CENT OF THE TOTAL TAX IMPOSED UPON SUCH UTILITY REALTY FOR
29 TAXABLE YEAR 1999.
30 (4) THE TOTAL TAX IMPOSED ON THE UTILITY REALTY OF A PUBLIC
20000S0002B1966 - 79 -
1 UTILITY FOR TAXABLE YEAR 2001 SHALL NOT EXCEED TWO HUNDRED FIFTY
2 PER CENT OF THE TOTAL TAX IMPOSED UPON SUCH UTILITY REALTY FOR
3 TAXABLE YEAR 2000.
4 (5) FOR PURPOSES OF THIS SUBSECTION, ANY REDUCTION IN A
5 PUBLIC UTILITY'S TOTAL TAX LIABILITY AS A RESULT OF THE TWO
6 HUNDRED FIFTY PER CENT LIMITATION SHALL NOT EXCEED ONE HUNDRED
7 THOUSAND DOLLARS ($100,000) IN EACH OF THE TAXABLE YEARS
8 SPECIFIED IN CLAUSES (1) THROUGH (4).
9 (B) ANY PORTION OF THE TOTAL ASSESSED VALUATIONS OF UTILITY
10 REALTY OF A PUBLIC UTILITY WHICH IS EXCLUDED UNDER SUBSECTION
11 (A) IN ANY TAXABLE YEAR SHALL NOT BE INCLUDED IN THE
12 CALCULATIONS REQUIRED UNDER THIS ARTICLE FOR THAT TAXABLE YEAR.
13 (C) THE SECRETARY OF REVENUE SHALL TRANSFER FUNDS TO THE
14 PUBLIC TRANSPORTATION ASSISTANCE FUND AS A RESULT OF ANY IMPACT
15 THIS SECTION MAY HAVE ON REVENUE RECEIVED UNDER SECTION 2301.
16 (D) AS USED IN THIS SECTION, THE TERM "TOTAL TAX" MEANS THE
17 SUM OF TAXES PAID UNDER SECTIONS 1102-A AND 1104-A.
18 SECTION 14. SECTION 2010(E) OF THE ACT, AMENDED MAY 12, 1999
19 (P.L.26, NO.4), IS AMENDED TO READ:
20 SECTION 2010. LIMITED TAX CREDITS.--* * *
21 (E) UPON RECEIPT FROM A TAXPAYER OF A CERTIFICATE FROM THE
22 SECRETARY ISSUED UNDER SUBSECTION (C), THE SECRETARY OF REVENUE
23 SHALL GRANT A TAX CREDIT OR CREDITS IN THE AMOUNT CERTIFIED
24 AGAINST ANY TAX [THEN DUE] DUE IN THE CALENDAR YEAR IN WHICH THE
25 EXPENDITURES WERE FIRST INCURRED OR THEREAFTER BECOMING DUE FROM
26 THE TAXPAYER UNDER THIS ARTICLE. NO CREDIT SHALL BE ALLOWED
27 AGAINST ANY TAX DUE FOR ANY TAXABLE PERIOD ENDING AFTER DECEMBER
28 31, 2003.
29 SECTION 15. SECTION 2102 OF THE ACT IS AMENDED BY ADDING A
30 DEFINITION TO READ:
20000S0002B1966 - 80 -
1 SECTION 2102. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
2 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANINGS
3 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
4 CLEARLY INDICATES A DIFFERENT MEANING:
5 * * *
6 "SIBLING." AN INDIVIDUAL WHO HAS AT LEAST ONE PARENT IN
7 COMMON WITH THE DECEDENT, WHETHER BY BLOOD OR BY ADOPTION.
8 * * *
9 SECTION 16. SECTION 2116(A) AND (C) OF THE ACT, AMENDED OR
10 ADDED AUGUST 4, 1991 (P.L.97, NO.22) AND JUNE 16, 1994 (P.L.279,
11 NO.48), IS AMENDED TO READ:
12 SECTION 2116. INHERITANCE TAX.--(A) (1) INHERITANCE TAX
13 UPON THE TRANSFER OF PROPERTY PASSING TO OR FOR THE USE OF ANY
14 OF THE FOLLOWING SHALL BE AT THE RATE OF [SIX] FOUR AND ONE-HALF
15 PER CENT:
16 (I) GRANDFATHER, GRANDMOTHER, FATHER, MOTHER, EXCEPT
17 TRANSFERS UNDER SUBCLAUSE (1.2), AND LINEAL DESCENDANTS; OR
18 (II) WIFE OR WIDOW AND HUSBAND OR WIDOWER OF A CHILD.
19 (1.1) INHERITANCE TAX UPON THE TRANSFER OF PROPERTY PASSING
20 TO OR FOR THE USE OF A HUSBAND OR WIFE SHALL BE:
21 (I) AT THE RATE OF THREE PER CENT FOR ESTATES OF DECEDENTS
22 DYING ON OR AFTER JULY 1, 1994, AND BEFORE JANUARY 1, 1995.
23 (II) AT A RATE OF ZERO PER CENT FOR ESTATES OF DECEDENTS
24 DYING ON OR AFTER JANUARY 1, 1995.
25 (1.2) INHERITANCE TAX UPON THE TRANSFER OF PROPERTY FROM A
26 CHILD TWENTY-ONE YEARS OF AGE OR YOUNGER TO OR FOR THE USE OF A
27 NATURAL PARENT, AN ADOPTIVE PARENT OR A STEPPARENT OF THE CHILD
28 SHALL BE AT THE RATE OF ZERO PER CENT.
29 (1.3) INHERITANCE TAX UPON THE TRANSFER OF PROPERTY PASSING
30 TO OR FOR THE USE OF A SIBLING SHALL BE AT THE RATE OF TWELVE
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1 PER CENT.
2 (2) INHERITANCE TAX UPON THE TRANSFER OF PROPERTY PASSING TO
3 OR FOR THE USE OF ALL PERSONS OTHER THAN THOSE DESIGNATED IN
4 SUBCLAUSE (1) [OR], (1.1), (1.2) OR (1.3) OR EXEMPT UNDER
5 SECTION 2111(M) SHALL BE AT THE RATE OF FIFTEEN PER CENT.
6 (3) WHEN PROPERTY PASSES TO OR FOR THE USE OF A HUSBAND AND
7 WIFE WITH RIGHT OF SURVIVORSHIP, ONE OF WHOM IS TAXABLE AT A
8 RATE LOWER THAN THE OTHER, THE LOWER RATE OF TAX SHALL BE
9 APPLIED TO THE ENTIRE INTEREST.
10 * * *
11 (C) WHEN ANY PERSON ENTITLED TO A DISTRIBUTIVE SHARE OF AN
12 ESTATE, WHETHER UNDER AN INTER VIVOS TRUST, A WILL OR THE
13 INTESTATE LAW, RENOUNCES HIS RIGHT TO RECEIVE THE DISTRIBUTIVE
14 SHARE RECEIVING THEREFOR NO CONSIDERATION, OR EXERCISES HIS
15 ELECTIVE RIGHTS UNDER 20 PA.C.S. CH. 22 (RELATING TO ELECTIVE
16 SHARE OF SURVIVING SPOUSE) RECEIVING THEREFOR NO CONSIDERATION
17 OTHER THAN THE INTEREST IN ASSETS PASSING TO HIM AS THE ELECTING
18 SPOUSE, THE TAX SHALL BE COMPUTED AS THOUGH THE PERSONS WHO
19 BENEFIT BY SUCH RENUNCIATION OR ELECTION WERE ORIGINALLY
20 DESIGNATED TO BE THE DISTRIBUTEES, CONDITIONED UPON AN
21 ADJUDICATION OR DECREE OF DISTRIBUTION EXPRESSLY CONFIRMING
22 DISTRIBUTION TO SUCH DISTRIBUTEES. THE RENUNCIATION SHALL BE
23 MADE WITHIN NINE MONTHS AFTER THE DEATH OF THE DECEDENT [OR,
24 IN]. IN THE CASE OF A SURVIVING SPOUSE[,] TAKING HIS ELECTIVE
25 SHARE OF AN ESTATE, THE RENUNCIATION SHALL BE MADE WITHIN THE
26 TIME FOR ELECTION AND ANY EXTENSION THEREOF UNDER 20 PA.C.S. §
27 2210(B) (RELATING TO PROCEDURE FOR ELECTION; TIME LIMIT). NOTICE
28 OF THE FILING OF THE ACCOUNT AND OF ITS CALL FOR AUDIT OR
29 CONFIRMATION SHALL INCLUDE NOTICE OF THE RENUNCIATION OR
30 ELECTION TO THE DEPARTMENT. WHEN AN UNCONDITIONAL VESTING OF A
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1 FUTURE INTEREST DOES NOT OCCUR AT THE DECEDENT'S DEATH, THE
2 RENUNCIATION SPECIFIED IN THIS SUBSECTION OF THE FUTURE INTEREST
3 MAY BE MADE WITHIN THREE MONTHS AFTER THE OCCURRENCE OF THE
4 EVENT OR CONTINGENCY WHICH RESOLVES THE VESTING OF THE INTEREST
5 IN POSSESSION AND ENJOYMENT.
6 * * *
7 SECTION 17. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
8 ARTICLE XXIX-B
9 HOMEOWNERS' CENTURY TAX REBATE
10 SECTION 2901-B. SHORT TITLE OF ARTICLE.--THIS ARTICLE SHALL
11 BE KNOWN AND MAY BE CITED AS THE "HOMEOWNERS' CENTURY TAX REBATE
12 ACT."
13 SECTION 2902-B. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
14 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANINGS
15 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
16 CLEARLY INDICATES A DIFFERENT MEANING:
17 "ASSESSOR." THE CHIEF ASSESSOR OF A COUNTY, THE EQUIVALENT
18 POSITION IN A HOME RULE COUNTY OR THE EQUIVALENT POSITION IN A
19 CITY OF THE THIRD CLASS THAT PERFORMS ITS OWN ASSESSMENTS OF
20 REAL PROPERTY.
21 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH
22 OR ITS DESIGNEE.
23 "HOMEOWNER." ANY OWNER OF A HOMESTEAD WHO IS:
24 (1) AN INDIVIDUAL WHO IS A NATURAL PERSON DOMICILED IN THIS
25 COMMONWEALTH;
26 (2) A GRANTOR WHO HAS PLACED REAL PROPERTY IN A REVOCABLE
27 TRUST, PROVIDED THAT THE GRANTOR IS A NATURAL PERSON DOMICILED
28 IN THIS COMMONWEALTH; OR
29 (3) A PARTNER OF A FAMILY FARM PARTNERSHIP OR A SHAREHOLDER
30 OF A FAMILY FARM CORPORATION AS THE TERMS ARE DEFINED IN SECTION
20000S0002B1966 - 83 -
1 1101-C, PROVIDED THAT THE PARTNER OR SHAREHOLDER IS A NATURAL
2 PERSON DOMICILED IN THIS COMMONWEALTH.
3 "HOMESTEAD." THE OWNER-OCCUPIED, PRIMARY RESIDENCE AND THE
4 PARCEL OF LAND WITHIN THIS COMMONWEALTH ON WHICH THE RESIDENCE
5 IS LOCATED AND OTHER IMPROVEMENTS LOCATED ON THE PARCEL. IF A
6 PORTION OF THE STRUCTURE IS USED FOR A NONRESIDENTIAL PURPOSE,
7 THE HOMESTEAD IS EQUAL TO THAT PORTION OF THE PROPERTY USED AS
8 THE PRIMARY RESIDENCE OF THE OWNER-OCCUPANT. THIS DEFINITION OF
9 "HOMESTEAD" SHALL HAVE NO EFFECT, EVIDENTIARY OR OTHERWISE,
10 CONCERNING THE ISSUE OF WHETHER THE PROPERTY CONSTITUTES A
11 HOMESTEAD OR HOMESTEAD PROPERTY UNDER ANY OTHER ACT.
12 "REAL PROPERTY TAX." THE TOTAL REAL PROPERTY TAX IMPOSED BY
13 A SCHOOL DISTRICT ON A HOMESTEAD FOR THE TAX YEAR. REAL PROPERTY
14 TAX IMPOSED BY A CITY OF THE FIRST CLASS SHALL CONSTITUTE TAXES
15 IMPOSED BY A SCHOOL DISTRICT FOR THE PURPOSES OF THIS
16 DEFINITION. THE TERM DOES NOT INCLUDE PAYMENTS MADE IN LIEU OF
17 TAXES OR ANY PENALTIES OR INTEREST PAID IN CONNECTION WITH THE
18 TAX.
19 "REBATE." AN AMOUNT EQUAL TO ONE HUNDRED PER CENT OF THE
20 REAL PROPERTY TAX PAID ON THE ASSESSED VALUE OF A HOMESTEAD TO A
21 SCHOOL DISTRICT FOR THE TAX YEAR, EXCEPT THAT NO REBATE PAID
22 PURSUANT TO THIS ARTICLE SHALL EXCEED ONE HUNDRED DOLLARS
23 ($100).
24 "RESIDENCE." A STRUCTURE USED AS A PLACE OF HABITATION BY
25 THE OWNER OF THE STRUCTURE.
26 "SCHOOL DISTRICT." A SCHOOL DISTRICT OF THE FIRST CLASS,
27 FIRST CLASS A, SECOND CLASS, THIRD CLASS OR FOURTH CLASS,
28 INCLUDING ANY INDEPENDENT SCHOOL DISTRICT.
29 "TAX YEAR." THE SCHOOL DISTRICT'S FISCAL YEAR 1999-2000
30 DURING WHICH REAL PROPERTY TAX IS DUE AND PAYABLE.
20000S0002B1966 - 84 -
1 SECTION 2903-B. REBATE QUALIFICATIONS.--(A) SUBJECT TO
2 SECTION 2904-B, A REBATE SHALL BE ISSUED ON ACCOUNT OF SCHOOL
3 REAL PROPERTY TAXES FOR A HOMESTEAD IF ALL OF THE FOLLOWING
4 APPLY:
5 (1) THE HOMEOWNER OCCUPIED THE HOMESTEAD DURING THE TAX
6 YEAR.
7 (2) THE HOMEOWNER HAS PAID SCHOOL REAL PROPERTY TAX OWED ON
8 THE HOMESTEAD FOR THE TAX YEAR.
9 (3) THE HOMEOWNER IS THE OWNER OF RECORD AS OF JULY 1, 1999.
10 (4) THE HOMEOWNER APPLIES IN A FORM AND TIME PRESCRIBED BY
11 THE DEPARTMENT.
12 NO HOMEOWNER SHALL BE ELIGIBLE TO RECEIVE MORE THAN ONE REBATE.
13 (B) IF TITLE TO A HOMESTEAD IS HELD BY MORE THAN ONE
14 INDIVIDUAL, A REBATE SHALL BE ISSUED IN THE NAMES APPEARING ON
15 THE SCHOOL PROPERTY TAX RECORD.
16 SECTION 2904-B. REBATE ADMINISTRATION.--(A) THE DEPARTMENT
17 SHALL ESTABLISH ANY ADMINISTRATIVE AND APPLICATION PROCEDURES
18 AND DEADLINES NECESSARY TO IMPLEMENT AND ADMINISTER THIS
19 ARTICLE. TO FACILITATE THE TIMELY IMPLEMENTATION OF THIS
20 ARTICLE, THE PROVISIONS OF ARTICLE III PT. X OF THIS ACT AND
21 ARTICLE VII OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN
22 AS "THE FISCAL CODE," SHALL NOT APPLY TO THIS ARTICLE. THE
23 DEPARTMENT MAY ENTER INTO ANY CONTRACTS WHICH ARE NECESSARY TO
24 ADMINISTER THIS ARTICLE.
25 (B) EVERY ASSESSOR SHALL SUBMIT TO THE DEPARTMENT A LIST,
26 CATEGORIZED BY SCHOOL DISTRICT, OF ALL RESIDENTIAL AND FARM REAL
27 PROPERTY AND OWNERS OF RECORD AS OF JULY 1, 1999, WITHIN ITS
28 JURISDICTION. THE LIST SHALL INCLUDE ONLY THOSE HOMEOWNERS OF
29 RECORD WHO HAVE FULLY PAID THEIR 1999-2000 SCHOOL REAL PROPERTY
30 TAXES OWED ON THEIR RESPECTIVE HOMESTEADS.
20000S0002B1966 - 85 -
1 (C) ONLY LISTS SUBMITTED BY OR WITHIN THIRTY DAYS OF THE
2 EFFECTIVE DATE OF THIS ARTICLE SHALL BE REVIEWED BY THE
3 DEPARTMENT. THE DEPARTMENT SHALL MAKE THE INITIAL DETERMINATION
4 OF HOMEOWNER REBATE ELIGIBILITY FROM INFORMATION SUBMITTED BY
5 THE HOMEOWNER. THE DEPARTMENT SHALL THEREAFTER FORWARD THE LIST
6 OF ELIGIBLE HOMEOWNERS TO THE RESPECTIVE ASSESSOR.
7 (D) WITHIN THIRTY DAYS AFTER RECEIPT OF THE LIST OF ELIGIBLE
8 HOMEOWNERS, THE ASSESSOR SHALL VERIFY THE LIST AND REPORT TO THE
9 DEPARTMENT ANY CORRECTIONS TO THE LIST.
10 (E) THE DEPARTMENT SHALL FINALIZE THE LIST AND AUTHORIZE
11 REBATES WHICH SHALL BE ISSUED AND MAILED TO ALL HOMEOWNERS ON
12 THE FINAL VERIFIED LIST BY OCTOBER 20, 2000. IF THE ASSESSOR
13 FAILS TO VERIFY THE LIST OR NOTIFY THE DEPARTMENT OF ANY
14 CORRECTIONS WITHIN THE TIME LIMITATION SET FORTH UNDER
15 SUBSECTION (D), THE DEPARTMENT SHALL AUTHORIZE REBATES TO ALL
16 HOMEOWNERS ON THE LIST DEVELOPED BY THE DEPARTMENT PURSUANT TO
17 SUBSECTION (C).
18 SECTION 2905-B. PETITIONS FOR REVIEW.--A HOMEOWNER WHOSE
19 REBATE IS EITHER DENIED, CORRECTED OR OTHERWISE ADVERSELY
20 AFFECTED BY EITHER THE DEPARTMENT OR THE ASSESSOR MAY PETITION
21 FOR ADMINISTRATIVE REVIEW IN THE MANNER PRESCRIBED BY THE
22 DEPARTMENT. AN INDIVIDUAL AGGRIEVED BY THE DEPARTMENT'S ACTION
23 IN CONNECTION WITH THE ADMINISTRATIVE REVIEW MAY PETITION FOR
24 REVIEW IN THE MANNER SPECIFIED IN SECTIONS 11.1 AND 11.2 OF THE
25 ACT OF MARCH 11, 1971 (P.L.104, NO.3), KNOWN AS THE "SENIOR
26 CITIZENS REBATE AND ASSISTANCE ACT."
27 SECTION 2906-B. PENALTIES.--(A) ANY HOMEOWNER WHO RECEIVES
28 A REBATE THROUGH FALSE OR MISLEADING INFORMATION OR WHO
29 OTHERWISE IMPROPERLY RECEIVES A REBATE MAY BE REQUIRED TO DO THE
30 FOLLOWING:
20000S0002B1966 - 86 -
1 (1) REFUND TO THE DEPARTMENT THE AMOUNT OF REBATE RECEIVED;
2 (2) PAY A CIVIL PENALTY OF FIFTY DOLLARS ($50) TO THE
3 DEPARTMENT; OR
4 (3) BOTH PARAGRAPHS (1) AND (2).
5 (B) THE DEPARTMENT MAY OFFSET ANY REBATE DUE TO A HOMEOWNER
6 AGAINST COLLECTIBLE LIABILITIES OWED TO THE COMMONWEALTH BY THE
7 HOMEOWNER FOR TAXES IMPOSED UNDER ARTICLE III OF THIS ACT.
8 SECTION 2907-B. ERRONEOUS REBATES.--(A) IF THE DEPARTMENT
9 DETERMINES OR FINDS A REBATE TO HAVE BEEN INCORRECTLY OR
10 ERRONEOUSLY PAID, IT SHALL REDETERMINE THE CORRECT AMOUNT OF THE
11 REBATE, IF ANY, AND NOTIFY THE HOMEOWNER OF THE REASON FOR THE
12 CORRECTION AND THE AMOUNT OF THE REBATE.
13 (B) IF A REBATE HAS BEEN ISSUED IN ERROR AND THE HOMEOWNER
14 FAILS TO REFUND THE REBATE UPON THE DEPARTMENT'S REQUEST, THE
15 REBATE SHALL BE RECOVERABLE BY THE DEPARTMENT IN THE SAME MANNER
16 AS ASSESSMENTS AS PROVIDED FOR IN THE ACT OF MARCH 11, 1971
17 (P.L.104, NO.3), KNOWN AS THE "SENIOR CITIZENS REBATE AND
18 ASSISTANCE ACT."
19 SECTION 2908-B. CONSTRUCTION.--NOTWITHSTANDING ANY OTHER
20 PROVISION OF LAW TO THE CONTRARY, ANY PROPERTY TAX REBATE
21 RECEIVED UNDER THIS ARTICLE SHALL NOT BE CONSIDERED "INCOME"
22 UNDER ARTICLE III OR FOR PURPOSES OF DETERMINING ELIGIBILITY FOR
23 ANY STATE GOVERNMENT PROGRAM, INCLUDING, BUT NOT LIMITED TO,
24 THOSE PROGRAMS AUTHORIZED BY THE ACT OF MARCH 11, 1971 (P.L.104,
25 NO.3), KNOWN AS THE "SENIOR CITIZENS REBATE AND ASSISTANCE ACT,"
26 OR CHAPTER 5 OF THE ACT OF AUGUST 26, 1971 (P.L.351, NO.91),
27 KNOWN AS THE "STATE LOTTERY LAW."
28 SECTION 2909-B. EXPIRATION.--THIS ARTICLE SHALL EXPIRE ON
29 DECEMBER 31, 2001.
30 SECTION 18. THE FOLLOWING ACTS AND PARTS OF ACTS ARE
20000S0002B1966 - 87 -
1 REPEALED:
2 (1) AS MUCH AS READS "SEVEN-TENTHS OF" IN SECTION
3 222(B)(5)(I) OF THE ACT OF DECEMBER 17, 1981 (P.L.435,
4 NO.135), KNOWN AS THE RACE HORSE INDUSTRY REFORM ACT, AND AS
5 MUCH AS READS ", BEGINNING ON JULY 1, 1983" IN SECTION
6 222(B)(5)(I) OF THE RACE HORSE INDUSTRY REFORM ACT.
7 (2) SECTION 221(D) OF THE RACE HORSE INDUSTRY REFORM
8 ACT.
9 (3) SECTION 1303 OF THE ACT OF OCTOBER 18, 1988
10 (P.L.756, NO.108), KNOWN AS THE HAZARDOUS SITES CLEANUP ACT.
11 SECTION 19. THIS ACT SHALL APPLY AS FOLLOWS:
12 (1) THE FOLLOWING PROVISIONS SHALL APPLY TO TRANSACTIONS
13 FOR WHICH PURCHASE AGREEMENTS ARE EXECUTED AFTER JUNE 30,
14 2000:
15 (I) THE ADDITION OF SECTION 201(G)(8), (VV), (WW),
16 (XX), (YY) AND (ZZ) OF THE ACT.
17 (II) THE ADDITION OF SECTION 202(F) OF THE ACT.
18 (III) THE ADDITION OF SECTION 204(60) OF THE ACT.
19 (IV) THE AMENDMENT OF SECTION 237(B)(1) OF THE ACT.
20 (2) THE AMENDMENT OF SECTION 247.1(B) OF THE ACT SHALL
21 APPLY TO AMOUNTS DEDUCTED AS BAD DEBT ON FEDERAL INCOME TAX
22 RETURNS REQUIRED TO BE FILED AFTER JANUARY 1, 2000.
23 (3) THE FOLLOWING PROVISIONS SHALL APPLY TO TAXABLE
24 YEARS BEGINNING AFTER DECEMBER 31, 1999:
25 (I) THE AMENDMENT OF SECTION 304(D)(1) OF THE ACT.
26 (II) THE AMENDMENT OF SECTION 601 OF THE ACT.
27 (III) THE AMENDMENT OF SECTION 602(A), (B), (E),
28 (F), (G), (H) AND (I) OF THE ACT.
29 (IV) THE AMENDMENT OF SECTION 602.5 OF THE ACT.
30 (V) THE AMENDMENT OF SECTION 1101(A) OF THE ACT.
20000S0002B1966 - 88 -
1 (4) THE FOLLOWING PROVISIONS SHALL APPLY TO ASSESSMENTS
2 PAID AFTER DECEMBER 31, 1998:
3 (I) THE ADDITION OF SECTION 901(4), (5) AND (6) OF
4 THE ACT.
5 (II) THE ADDITION OF SECTION 902.1 OF THE ACT.
6 (5) THE FOLLOWING PROVISIONS SHALL APPLY TO TAXES PAID
7 FOR CALENDAR YEAR 2000 AND THEREAFTER:
8 (I) THE ADDITION OF SECTION 901(4), (5) AND (6) OF
9 THE ACT.
10 (II) THE ADDITION OF SECTION 902.1 OF THE ACT.
11 (6) THE AMENDMENT OF SECTION 2010(E) OF THE ACT SHALL
12 APPLY RETROACTIVELY TO TAX CREDITS AUTHORIZED AFTER DECEMBER
13 31, 1998.
14 (7) THE FOLLOWING PROVISIONS SHALL APPLY TO THE ESTATES
15 OF DECEDENTS DYING AFTER JUNE 30, 2000:
16 (I) THE ADDITION OF THE DEFINITION OF "SIBLING" IN
17 SECTION 2102 OF THE ACT.
18 (II) THE AMENDMENT OF SECTION 2116(A) AND (C) OF THE
19 ACT.
20 (8) THE FOLLOWING PROVISIONS SHALL APPLY TO INTER VIVOS
21 TRANSFERS MADE BY DECEDENTS DYING AFTER JUNE 30, 2000,
22 REGARDLESS OF THE DATE OF THE TRANSFER:
23 (I) THE ADDITION OF THE DEFINITION OF "SIBLING" IN
24 SECTION 2102 OF THE ACT.
25 (II) THE AMENDMENT OF SECTION 2116(A) AND (C) OF THE
26 ACT.
27 (9) THE ADDITION OF SECTION 1110-A OF THE ACT SHALL
28 APPLY TO TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1997.
29 SECTION 20. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
30 (1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT
20000S0002B1966 - 89 -
1 IMMEDIATELY:
2 (I) THE ADDITION OF SECTION 204(58) OF THE ACT.
3 (II) THE AMENDMENT OF SECTION 247.1(B) OF THE ACT.
4 (III) THE AMENDMENT OF SECTION 304(D)(1) OF THE ACT.
5 (IV) THE AMENDMENT OF SECTION 601 OF THE ACT.
6 (V) THE AMENDMENT OF SECTION 602(A), (B), (E), (F),
7 (G), (H) AND (I) OF THE ACT.
8 (VI) THE AMENDMENT OF SECTION 602.5 OF THE ACT.
9 (VII) THE AMENDMENT OF SECTION 606 OF THE ACT.
10 (VIII) THE AMENDMENT OF SECTION 901 OF THE ACT.
11 (IX) THE ADDITION OF SECTION 902.1 OF THE ACT.
12 (X) THE AMENDMENT OF SECTION 1101(A) OF THE ACT.
13 (XI) THE ADDITION OF SECTION 1110-A OF THE ACT.
14 (XII) THE AMENDMENT OF SECTION 2010(E) OF THE ACT.
15 (XIII) THE ADDITION OF THE DEFINITION OF "SIBLING"
16 IN SECTION 2102 OF THE ACT.
17 (XIV) THE ADDITION OF ARTICLE XXIX-B OF THE ACT.
18 (XV) SECTION 19 OF THIS ACT.
19 (XVI) THIS SECTION.
20 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT JULY 1,
21 2000, OR IMMEDIATELY, WHICHEVER IS LATER.
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