PRINTER'S NO. 2869
No. 2079 Session of 2005
INTRODUCED BY PETRI, ALLEN, ARMSTRONG, BAKER, BALDWIN, BARRAR, BEYER, BOYD, BUNT, CALTAGIRONE, CAPPELLI, CLYMER, CRAHALLA, CREIGHTON, FORCIER, GOOD, GOODMAN, HARHART, HARRIS, HESS, HUTCHINSON, M. KELLER, KILLION, MACKERETH, MAHER, MARKOSEK, MARSICO, McILHATTAN, MILLARD, RAPP, RAYMOND, REED, REICHLEY, RUBLEY, SCAVELLO, SCHRODER, SEMMEL, SONNEY, R. STEVENSON, T. STEVENSON, E. Z. TAYLOR, WATSON, WILT, WRIGHT AND ZUG, OCTOBER 19, 2005
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 19, 2005
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, 2004 9.99% 20 January 1, 2005, and 21 each taxable year through 22 December 31, 2005 6.99% 23 January 1, 2006, and 24 each taxable year 25 thereafter 6.25% 26 (c) An entity subject to taxation under Article VII, VIII, 27 IX or XV shall not be subject to the tax imposed by this 28 article. 29 Section 2. This act shall take effect in 60 days. H31L72MSP/20050H2079B2869 - 2 -