PRINTER'S NO. 3906
No. 2735 Session of 2000
INTRODUCED BY ZUG, M. COHEN, PISTELLA, SHANER, STERN, TRELLO AND
WILT, SEPTEMBER 25, 2000
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 25, 2000
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," providing for withholding of tax from certain
11 annuity payments.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17 Section 323.1. Requirement of Withholding of Tax from Third-
18 Party Annuity Payments.--A manager of a third-party retirement
19 annuity, which is not commonly recognized as an old age or
20 retirement benefit paid to a person retired from service after
21 reaching a specific age or after a stated period of employment
22 under section 301(d), making payment to a resident individual or
1 a nonresident individual taxpayer, shall deduct and withhold tax
2 from the net gain of the annuity for each quarter of the tax
3 year. The method of determining the amount to be withheld shall
4 be prescribed by regulations of the department.
5 Section 2. This act shall take effect in 60 days.
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