THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GROVE, KAUFFMAN, BAKER, AUMENT, BENNINGHOFF, BLOOM, CHRISTIANA, CUTLER, DENLINGER, GEIST, GINGRICH, HESS, HUTCHINSON, M. K. KELLER, KORTZ, MACKENZIE, METCALFE, PICKETT, PYLE, ROAE, ROCK, SAYLOR, SCHMOTZER, SIMMONS AND TALLMAN, AUGUST 23, 2012

REFERRED TO COMMITTEE ON FINANCE, AUGUST 23, 2012  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in personal income tax, further providing for

imposition of tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 302 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, amended December

23, 2003 (P.L.250, No.46), is amended to read:

Section 302.  Imposition of Tax.--(a)  Every resident

individual, estate or trust shall be subject to, and shall pay

for the privilege of receiving each of the classes of income

hereinafter enumerated in section 303, a tax upon each dollar of

income received by that resident during that resident's taxable

year at the rate [of three and seven hundredths per cent]

prescribed in subsection (c).

(b)  Every nonresident individual, estate or trust shall be

subject to, and shall pay for the privilege of receiving each of

the classes of income hereinafter enumerated in section 303 from

sources within this Commonwealth, a tax upon each dollar of

income received by that nonresident during that nonresident's

taxable year at the rate [of three and seven hundredths per

cent.] prescribed in subsection (c).

(c)  The rate of tax to be imposed under this section shall

be as follows:

(1)  Three and seven-hundredths per cent for the taxable year

beginning after December 31, 2003, through the taxable year

beginning after December 31, 2013.

(2)  Three and three-hundredths per cent for the taxable year

beginning after December 31, 2014.

(3)  Two and ninety-nine-hundredths per cent for the taxable

year beginning after December 31, 2015.

(4)  Two and ninety-five-hundredths per cent for the taxable

year beginning after December 31, 2016.

(5)  Two and ninety-one-hundredths per cent for the taxable

year beginning after December 31, 2017.

(6)  Two and eighty-seven-hundredths per cent for the taxable

year beginning after December 31, 2018, and each taxable year

thereafter.

Section 2.  This act shall take effect immediately.