PRINTER'S NO. 476
No. 412 Session of 2007
INTRODUCED BY PETRI, ADOLPH, BAKER, BARRAR, BASTIAN, BEYER,
BIANCUCCI, BOYD, CALTAGIRONE, CAPPELLI, CLYMER, COX,
CREIGHTON, DePASQUALE, FAIRCHILD, GALLOWAY, GEIST, GILLESPIE,
HARPER, HENNESSEY, HERSHEY, HESS, HICKERNELL, HUTCHINSON,
KAUFFMAN, M. KELLER, KILLION, MACKERETH, MARSHALL, MARSICO,
McILHATTAN, MENSCH, MILLARD, MUSTIO, NAILOR, PETRARCA,
PHILLIPS, PYLE, RAPP, RAYMOND, READSHAW, REICHLEY, ROHRER,
SCAVELLO, SCHRODER, PICKETT, SOLOBAY, STERN, SWANGER, TURZAI
AND WATSON, FEBRUARY 13, 2007
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 13, 2007
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 imposition of the corporate
11 net income tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 402 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, amended June 29,
16 2002 (P.L.559, No.89), is amended to read:
17 Section 402. Imposition of Tax.--(a) A corporation shall be
18 subject to and shall pay an excise tax for exercising, whether
19 in its own name or through any person, association, business
1 trust, corporation, joint venture, limited liability company,
2 limited partnership, partnership or other entity, any of the
3 following privileges:
4 (1) Doing business in this Commonwealth.
5 (2) Carrying on activities in this Commonwealth, including
6 solicitation which is not protected activity under the act of
7 September 14, 1959 (Public Law 86-272, 15 U.S.C. § 381 et seq.).
8 (3) Having capital or property employed or used in this
9 Commonwealth.
10 (4) Owning property in this Commonwealth.
11 (b) The annual rate of tax on corporate net income imposed
12 by subsection (a) for taxable years beginning for the calendar
13 year or fiscal year on or after the dates set forth shall be as
14 follows:
15 Taxable Year Tax Rate
16 January 1, 1995, and
17 each taxable year
18 [thereafter] through
19 December 31, 2006 9.99%
20 January 1, 2007, and
21 each taxable year through
22 December 31, 2007 8.99%
23 January 1, 2008, and
24 each taxable year through
25 December 31, 2008 7.99%
26 January 1, 2009, and
27 each taxable year through
28 December 31, 2009 6.99%
29 January 1, 2010, and
30 each taxable year
20070H0412B0476 - 2 -
1 thereafter 6.25%
2 (c) An entity subject to taxation under Article VII, VIII,
3 IX or XV shall not be subject to the tax imposed by this
4 article.
5 Section 2. This act shall take effect in 60 days.
L29L72MSP/20070H0412B0476 - 3 -