PRINTER'S NO. 364
No. 347 Session of 2003
INTRODUCED BY CORMAN, RAFFERTY, TARTAGLIONE, ORIE, SCARNATI,
WOZNIAK AND RHOADES, MARCH 3, 2003
REFERRED TO FINANCE, MARCH 3, 2003
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 the imposition of the
11 personal income tax and authorizing the offsetting of gains
12 and losses among the various classes of income.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 302 of the act of March 4, 1971 (P.L.6,
16 No.2), known as the Tax Reform Code of 1971, added August 4,
17 1991 (P.L.97, No.22), is amended to read:
18 Section 302. Imposition of Tax.--(a) Every resident
19 individual, estate or trust shall be subject to, and shall pay
20 for the privilege of receiving [each of the classes of] income
21 [hereinafter enumerated in section 303], a tax upon each dollar
22 of income received by that resident during that resident's
1 taxable year at the following rates:
2 (1) Two and one-tenth per cent for taxable years commencing
3 with or within calendar year 1987 through the first half of the
4 taxable year commencing with or within calendar year 1991.
5 (2) Two and eight-tenths per cent for the second half of the
6 taxable year commencing with or within calendar year 1991 and
7 each taxable year thereafter.
8 (3) A temporary assessment equal to an additional three-
9 tenths per cent for the second half of the taxable year
10 commencing with or within calendar year 1991 through the first
11 half of the taxable year commencing with or within calendar year
12 1992.
13 (b) Every nonresident individual, estate or trust shall be
14 subject to, and shall pay for the privilege of receiving [each
15 of the classes of] income [hereinafter enumerated in section
16 303] from sources within this Commonwealth, a tax upon each
17 dollar of income received by that nonresident during that
18 nonresident's taxable year at the following rates:
19 (1) Two and one-tenth per cent for taxable years commencing
20 with or within calendar year 1987 through the first half of the
21 taxable year commencing with or within calendar year 1991.
22 (2) Two and eight-tenths per cent for the second half of the
23 taxable year commencing with or within calendar year 1991 and
24 each taxable year thereafter.
25 (3) A temporary assessment equal to an additional three-
26 tenths per cent for the second half of the taxable year
27 commencing with or within calendar year 1991 through the first
28 half of the taxable year commencing with or within calendar year
29 1992.
30 Section 2. Section 303(a) introductory paragraph of the act,
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1 added August 31, 1971 (P.L.362, No.93), is amended and the
2 section is amended by adding a subsection to read:
3 Section 303. Classes of Income.--(a) The classes of income
4 [referred to above] are as follows:
5 * * *
6 (a.4) (1) Subject to the limitation under paragraph (2),
7 for the tax year beginning January 1, 2003, and each tax year
8 thereafter, a taxpayer may offset the gains or losses within one
9 class of income with the gains or losses occurring within
10 another class of income.
11 (2) Gains or losses under subsection (a)(7) shall be limited
12 solely to that class of income. Losses within this particular
13 class of income may not be used to offset any gain in any other
14 class of income.
15 * * *
16 Section 3. This act shall take effect immediately.
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