PRINTER'S NO. 2788
No. 2135 Session of 1999
INTRODUCED BY COLAFELLA, MICOZZIE, MANDERINO, BELFANTI, BEBKO-
JONES, BELARDI, BUXTON, CALTAGIRONE, CAWLEY, CORRIGAN, CURRY,
DALEY, FEESE, GEORGE, HANNA, HARHAI, HESS, JAMES, LaGROTTA,
LAUGHLIN, LYNCH, MICHLOVIC, OLIVER, ROONEY, STABACK AND
YOUNGBLOOD, DECEMBER 8, 1999
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 8, 1999
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," imposing an additional tax on personal income;
11 establishing the Educational Equity Fund; and providing for
12 transfers to the Educational Equity Fund.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
16 the Tax Reform Code of 1971, is amended by adding a section to
17 read:
18 Section 302.3. Imposition of Tax for Educational Equity.--
19 (a) In addition to such taxes as are imposed in section 302,
20 every resident individual, estate or trust shall be subject to,
21 and shall pay for the privilege of receiving each of the classes
1 of income hereinafter enumerated in section 303, a tax upon each
2 dollar of income received by that resident during that
3 resident's taxable year at the following rates:
4 (1) Five-tenths of one per cent for taxable year commencing
5 with or within calendar year 2000.
6 (2) One per cent for the taxable year commencing with or
7 within calendar year 2001 through the calendar year 2002.
8 (3) One and five-tenths per cent for the taxable year
9 commencing with or within calendar year 2002 through the
10 calendar year 2003.
11 (b) In addition to such taxes as are imposed in section 302,
12 every nonresident individual, estate or trust shall be subject
13 to, and shall pay for the privilege of receiving each of the
14 classes of income hereinafter enumerated in section 303, a tax
15 upon each dollar of income received by that nonresident during
16 that nonresident's taxable year at the following rates:
17 (1) Five-tenths of one per cent for taxable year commencing
18 with or within calendar year 2000.
19 (2) One per cent for the taxable year commencing with or
20 within calendar year 2001 through the calendar year 2002.
21 (3) One and five-tenths per cent for the taxable year
22 commencing with or within calendar year 2002 through the
23 calendar year 2003.
24 (c) There is hereby established within the State Treasury a
25 restricted receipts account to be known as the Educational
26 Equity Fund for the purpose of providing revenues to finance the
27 Keystone Equity and Educational Performance System under section
28 2502.37 of the act of March 10, 1949 (P.L.30, No.14), known as
29 the "Public School Code of 1949." All revenues received on or
30 after January 1, 2000, from the imposition of the tax under this
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1 section shall be transferred by the Secretary of Revenue to the
2 State Treasurer for deposit in the Educational Equity Fund for
3 the purpose of providing revenues to finance the Keystone Equity
4 and Educational Performance System under section 2502.37 of the
5 "Public School Code of 1949."
6 Section 2. This act shall take effect immediately.
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