PRINTER'S NO. 137
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
180
Session of
2019
INTRODUCED BY BROWNE, SCARNATI, GORDNER, MENSCH, ARGALL,
K. WARD, WHITE, FOLMER, AUMENT, KILLION, MARTIN, BOSCOLA AND
YUDICHAK, FEBRUARY 1, 2019
REFERRED TO FINANCE, FEBRUARY 1, 2019
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 net
gains or income, net losses and dividends.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303(a)(5) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
and paragraph (3) is amended by adding a subparagraph to read:
Section 303. Classes of Income.--(a) The classes of income
referred to above are as follows:
* * *
(3) Net gains or income from disposition of property. Net
gains or net income, less net losses, derived from the sale,
exchange or other disposition of property, including real
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property, tangible personal property, intangible personal
property or obligations issued on or after the effective date of
this amendatory act by the Commonwealth; any public authority,
commission, board or other agency created by the Commonwealth;
any political subdivision of the Commonwealth or any public
authority created by any such political subdivision; or by the
Federal Government as determined in accordance with accepted
accounting principles and practices. For the purpose of this
article:
* * *
(viii) The term "net gains or income" and "net losses" shall
not include gains or income or loss which are excluded from
Federal taxation under section 1400Z-2 of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. ยง 1400Z-2), as
amended. Net gains or net income, less net losses, which are
excluded under this subparagraph shall be included in income to
the extent they are included in gross income under section
1400Z-2(b) of the Internal Revenue Code of 1986, as amended.
Section 1400Z-2(c) of the Internal Revenue Code of 1986, as
amended, shall apply in the computation of net gains or net
income and net losses.
* * *
(5) Dividends. The term "dividends" shall not include gains
or income or loss which are excluded from Federal taxation under
section 1400Z-2 of the Internal Revenue Code of 1986, as
amended. Gains or income or loss which are excluded under this
subparagraph shall be included in income to the extent they are
included in gross income under section 1400Z-2(b) of the
Internal Revenue Code of 1986, as amended. Section 1400Z-2(c) of
the Internal Revenue Code of 1986, as amended, shall apply in
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the computation of net gains or net income and net losses.
* * *
Section 2. The amendment or addition of section 303(a)(3)
(viii) and (5) of the act shall apply to tax years beginning on
or after January 1, 2019.
Section 3. This act shall take effect immediately.
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