PRINTER'S NO. 957

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

758

Session of

2019

INTRODUCED BY HAYWOOD, HUGHES, MUTH, STREET, COSTA, TARTAGLIONE,

LEACH AND KEARNEY, JUNE 12, 2019

REFERRED TO FINANCE, JUNE 12, 2019

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 and for amount of withholding tax.

The General Assembly finds and declares as follows:

Pennsylvania requires that all taxes be uniform upon the same

class of subjects.

with constitutional standards.

and imposes different tax rates on each class.

the imposition of different tax rates complies with section 1

of Article VIII of the Constitution of Pennsylvania insofar

as those tax rates are uniform on each class.

of the Constitution of Pennsylvania by imposing different tax

rates on different classes of subjects because the uniformity

clause prohibition on disparate tax rates is not implicated

Section 302. Imposition of Tax.--(a) [Every] For tax years

beginning after December 31, 2003, and ending on December 31,

2019, 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.

(b) [Every] For tax years beginning after December 31, 2003,

and ending on December 31, 2019, every nonresident individual,

during that nonresident's taxable year at the rate of three and

seven hundredths per cent.

(c) For tax years beginning after December 31, 2019, every

resident individual, estate or trust shall be subject to and

shall pay a tax upon each dollar of income received by that

resident during that resident's taxable year at the rate of two

and eight-tenths per cent for the privilege of receiving the

following classes of income as enumerated in section 303:

(1) Compensation.

(2) Interest derived from obligations which are not

Account (Archer MSA) or health savings account that is

includable in the gross income of an account beneficiary for

Federal income tax purposes.

(d) For tax years beginning after December 31, 2019, every

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

shall pay a tax upon each dollar of income received by that

resident during that resident's taxable year at the rate of six

and five-tenths per cent for the privilege of receiving the

following classes of income as enumerated in section 303:

(1) Net profits.

(5) Gambling and lottery winnings other than noncash prizes

of the Pennsylvania State Lottery.

(6) Net gains or income derived through estates or trusts.

To the extent that income or gain is subject to tax under one of

the classes of income enumerated in this section such income or

gain shall not be subject to tax under another of such

enumerated classes.

(e) For tax years beginning after December 31, 2019, every

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

shall pay a tax upon each dollar of income received by that

act of the General Assembly of the Commonwealth of Pennsylvania

or under the laws of the United States, any amount paid under

contract of life insurance or endowment or annuity contract

which is includable in gross income for Federal income tax

purposes and any amount paid out of the Archer Medical Savings

Account (Archer MSA) or health savings account that is

includable in the gross income of an account beneficiary for

Federal income tax purposes.

(f) For tax years beginning after December 31, 2019, every

nonresident individual, estate or trust shall be subject to and

(1) Net profits.

(2) Net gains or income from disposition of property.

(3) Net gains or income derived from or in the form of

rents, royalties, patents and copyrights.

(4) Dividends.

(5) Gambling and lottery winnings other than noncash prizes

of the Pennsylvania State Lottery.

(6) Net gains or income derived through estates or trusts.

To the extent that income or gain is subject to tax under one of

the classes of income enumerated in this section such income or

association or Pennsylvania S corporation which is allocable to

nonresident partners, members or shareholders multiplied by the

tax rate specified in section [302(b)] 302 (f) .

* * *

Section 2. The amendment of sections 302 and 324.1(a) of the

act shall apply to taxable years beginning after December 31,

2019.