PRINTER'S NO. 3667
No. 2671 Session of 1998
INTRODUCED BY DALLY, PESCI, GORDNER, ORIE, ARGALL, FEESE,
MARKOSEK, WOJNAROSKI, BARRAR, BAKER, SAINATO, STABACK,
BELARDI, LAUGHLIN, B. SMITH, McCALL, BENNINGHOFF, SEMMEL,
RUBLEY, CASORIO, YOUNGBLOOD, BOSCOLA, C. WILLIAMS,
E. Z. TAYLOR, SEYFERT, HENNESSEY, RAMOS, HASAY, ADOLPH,
D. W. SNYDER, A. H. WILLIAMS, CORRIGAN, McNAUGHTON, SCHRODER
AND LEVDANSKY, JUNE 3, 1998
REFERRED TO COMMITTEE ON FINANCE, JUNE 3, 1998
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 foreign
11 fire insurance premium tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 902 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, amended June 30,
16 1995 (P.L.139, No.21), is amended to read:
17 Section 902. (a) Imposition of Tax.--Every insurance
18 company, as herein defined, transacting business in the
19 Commonwealth of Pennsylvania, shall pay to the department, a tax
20 at the rate of two and one-half per cent of the gross premiums
1 received from business done within this Commonwealth during each
2 calendar year, except that any insurance company which was not
3 subject to this tax prior to 1971 shall be taxed at the rate of
4 one per cent for the year 1971 and thereafter at the rate of two
5 and one-half per cent.
6 (b) Disposition of Taxes.--
7 (1) The taxes paid by foreign fire insurance companies under
8 this act shall continue to be distributed and used for firemen's
9 relief pension or retirement purposes, as provided by section
10 two of the act, approved the twenty-eighth day of June, one
11 thousand eight hundred ninety-five (Pamphlet Laws 408), as
12 amended; and the taxes paid by foreign casualty insurance
13 companies under this act shall continue to be distributed and
14 used for police pension, retirement or disability purposes as
15 provided by the act, approved the twelfth day of May, one
16 thousand nine hundred forty-three (Pamphlet Laws 259), as
17 amended.
18 (2) One-half per cent of the tax imposed under this section
19 shall be deposited in a restricted account, to be known as the
20 Township Volunteer Fire Company Account, for distribution in
21 accordance with section 704 of the act of December 18, 1984
22 (P.L.1005, No.205), known as the "Municipal Pension Plan Funding
23 Standard and Recovery Act."
24 (c) Other Taxes.--All other taxes received under this act
25 shall be credited to the General Fund for general revenue
26 purposes.
27 Section 2. This act shall take effect in 60 days.
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