PRINTER'S NO. 495
No. 471 Session of 1989
INTRODUCED BY GREENLEAF, FEBRUARY 8, 1989
REFERRED TO FINANCE, FEBRUARY 8, 1989
AN ACT
1 Amending the act of June 20, 1947 (P.L.733, No.319), entitled,
2 as amended, "An act to provide revenue in school districts of
3 the first class A by imposing a temporary tax upon certain
4 classes of personal property; providing for its levy and
5 collection; conferring and imposing powers and duties on the
6 county assessing authority, board of revision of taxes,
7 receiver of school taxes, school treasurer, board of public
8 education in such districts and courts; providing for
9 compensation to certain officers, and employes and imposing
10 penalties," providing for the method of determining the
11 actual value of personal property.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 2 of the act of June 20, 1947 (P.L.733,
15 No.319), entitled, as amended, "An act to provide revenue in
16 school districts of the first class A by imposing a temporary
17 tax upon certain classes of personal property; providing for its
18 levy and collection; conferring and imposing powers and duties
19 on the county assessing authority, board of revision of taxes,
20 receiver of school taxes, school treasurer, board of public
21 education in such districts and courts; providing for
22 compensation to certain officers, and employes and imposing
1 penalties," amended July 25, 1963 (P.L.285, No.155), is amended
2 to read:
3 Section 2. Tax on Mortgages, Judgments, etc.; Imposition and
4 Rate of Tax; Exceptions.--All personal property of the classes
5 hereinafter enumerated, owned, held, or possessed by any
6 resident, whether such personal property be owned, held, or
7 possessed by such resident in his, her, their or its own right,
8 or as active trustee, agent, attorney-in-fact, or in any other
9 capacity, or by any resident as trustee, agent or attorney-in-
10 fact, jointly with one or more trustees, agents, or attorney-in-
11 fact, domiciled in another state; or within this Commonwealth,
12 but outside the school district levying the tax, where such
13 personal property is held and managed in such school district of
14 the first class A, except as executor or administrator of the
15 estate of a non-resident decedent, and except as trustee for a
16 resident or non-resident religious, charitable or educational
17 organization, no part of the net earnings of which inures to the
18 benefit of any private stockholder or individuals for the use,
19 benefit or advantage of any other person, copartnership,
20 unincorporated association, company, joint-stock company or
21 association, limited partnership, bank or corporation; and the
22 equitable interest in any such personal property of the classes
23 hereinafter enumerated, owned, held or possessed by any
24 resident, where the legal title to such personal property is
25 vested in a trustee, agent, or attorney-in-fact domiciled in
26 another state, or within this Commonwealth, but outside the
27 school district levying the tax; or where the legal title to
28 such personal property is vested in more than one trustee, agent
29 or attorney-in-fact, one or more of whom are domiciled in
30 another state, or within this Commonwealth, but outside the
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1 school district levying the tax, and one or more of whom are
2 domiciled within such school district, such personal property is
3 held and managed in another state, or within this Commonwealth
4 but outside the school district levying the tax, and where such
5 resident is entitled to receive all or part of the income
6 therefrom, is hereby made taxable annually for the year one
7 thousand nine hundred forty-eight, and annually thereafter for
8 public school purposes in school districts of the first class A,
9 and shall be levied upon annually by the board of public
10 education in every such school district at the rate of not less
11 than one (1) nor more than four (4) mills on each dollar of the
12 value thereof, and no failure to assess or return the same shall
13 discharge such owner or holder thereof from liability therefor
14 that is to say:
15 All mortgages, all moneys owing by solvent debtors, whether
16 by promissory note or penal or single bill, bond or judgment,
17 all articles of agreement and accounts bearing interest, all
18 public loans whatsoever, except those issued by this
19 Commonwealth or the United States, and except the public loans
20 and obligations of any county, city, borough, town, township,
21 school district, and incorporated district of this Commonwealth,
22 and except the bonds and obligations of bodies corporate and
23 politic of this Commonwealth known as municipal authorities, all
24 loans issued by any corporation, association, company, or
25 limited partnership, created or formed under the laws of this
26 Commonwealth, or of the United States or of any other state or
27 government, including car-trust securities, and loans secured by
28 bonds or any other form of certificate or evidence of
29 indebtedness, whether the interest be included in the principal
30 of the obligation or payable by the terms thereof, except such
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1 loans as are made taxable for state purposes by section 17 of
2 the act, approved the twenty-second day of June, one thousand
3 nine hundred thirty-five (Pamphlet Laws 414), as reenacted and
4 amended, all shares of stock in any bank, corporation,
5 association, company, or limited partnership created or formed
6 under the laws of this Commonwealth or of the United States or
7 of any other state or government, except shares of stock in any
8 bank, bank and trust company, national banking association,
9 savings institution, corporation, or limited partnership liable
10 to a tax on its shares, or a gross premiums tax, or liable to or
11 relieved from the capital stock or franchise tax for State
12 purposes under the laws of this Commonwealth, and all moneys
13 loaned or invested in other states, territories, the District of
14 Columbia, or foreign countries, all other moneyed capital owing
15 to individual citizens of the school district levying the tax:
16 Provided, That this section shall not apply to bank notes or
17 notes discounted or negotiated by any bank or banking
18 institution, savings institution, or trust company, nor to
19 loans, shares of stock, or other securities held by bankers or
20 brokers solely for trading purposes, nor to accounts or debit
21 balances owing by customers of bankers or brokers in the usual
22 courses of business, nor to interest bearing accounts in any
23 bank or banking institution, savings institution, employes'
24 thrift or savings association, whether operated by employes or
25 the employer or trust company, nor to personal property held in
26 the commercial department and owned in its own right by a
27 banking institution, savings institution, or trust company in
28 liquidation by a receiver, trustee, or other fiduciary, nor to
29 personal property formerly held by a banking institution in its
30 own right but assigned by it to one or more trustees for
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1 liquidation and payment to the creditors, and stockholders of
2 such banking institutions, nor shall this act apply to the
3 proceeds of any life insurance policy held in whole or part by
4 the insurer, nor the principal value of annuities, nor to any
5 personal property held in any trust forming part of a stock,
6 bonus, pension or profit sharing plan of an employer for the
7 exclusive benefit of his employes or their beneficiaries, which
8 trust under the latest ruling of the Commissioner of Internal
9 Revenue is exempted from Federal income tax nor to any personal
10 property held under the provisions of a plan established by or
11 for an individual or individuals for retirement purposes if such
12 plan meets the requirements for exemption from Federal income
13 tax of income earned on investments held under its provisions:
14 And provided further, That the provisions of this act shall not
15 apply to building and loan associations, or to shares of stock
16 issued by building and loan associations, or to savings
17 institutions having no capital stock, and if at any time, either
18 now or hereafter, any persons, individuals or bodies corporate
19 have agreed, or shall hereafter agree, to issue his, their or
20 its securities, bonds or other evidences of indebtedness clear
21 of, and free from, the tax herein provided for, or any part
22 thereof, or have agreed or shall hereafter agree to pay the
23 same, nothing herein contained shall be so construed as to
24 relieve or exempt him, it, or them, from paying the tax on any
25 of such securities, bonds or other evidences of indebtedness as
26 may be held, owned by, or owing to, the said savings institution
27 having no capital stock: And provided further, That the
28 provisions of this act shall not apply to fire companies,
29 firemen's relief associations, life, casualty or fire insurance
30 corporations having no capital stock, secret and beneficial
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1 societies, labor unions, and labor union relief associations,
2 and all beneficial organizations paying sick or death benefits,
3 or either or both, from funds received from voluntary
4 contributions or assessments upon members of such associations,
5 societies or unions: And provided, further, That corporations,
6 limited partnerships, and joint-stock associations liable to tax
7 on their shares, or the aforesaid capital stock or franchise tax
8 for State purposes, shall not be required to make any report, or
9 pay any further tax under this section on the mortgages, bonds
10 and other securities owned by them in their own right, but
11 corporations, limited partnerships, and joint-stock associations
12 holding such securities as trustees, executors, administrators,
13 guardians, or in any other manner, except as mere custodian for
14 the real owner, and except as executor or administrator of the
15 estate of a nonresident decedent, and except as trustee for a
16 resident or nonresident religious, charitable, or educational
17 organization, no part of the net earnings which inures to the
18 benefit of any private stockholder or individual shall return
19 and pay the tax imposed by this section upon all securities so
20 held by them as in the case of individuals: And provided,
21 further, That the provisions of this section shall not apply to
22 personal property of the classes hereinabove enumerated,
23 received or acquired with proceeds of money or property received
24 from any person or persons, copartnership or unincorporated
25 association, or company nonresident in, or not located within
26 such school district, or from any joint-stock company or
27 association, limited partnership, bank or corporation, formed,
28 erected or incorporated by, under, or in pursuance of any law of
29 the United States or of any state or government other than this
30 Commonwealth by any person or persons, copartnership,
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1 unincorporated association, company, joint-stock company, or
2 association, limited partnership, bank or corporation, as active
3 trustee, agent, attorney-in-fact, or in any other capacity for
4 the use, benefit, or advantage of any person or persons,
5 copartnership, or unincorporated association or company,
6 nonresident in, or not located within, such school district, or
7 for the use, benefit, or advantage of any joint-stock company or
8 association, limited partnership, bank, or corporation formed,
9 erected or incorporated by, under, or in pursuance of any law of
10 the United States or of any state or government other than this
11 Commonwealth, nor shall the provisions of this section apply to
12 personal property held for the use, benefit or advantage of any
13 resident who shall have, in each of the ten preceding calendar
14 years, given or contributed all of his net income to any
15 corporation organized or operated exclusively for religious,
16 charitable, scientific, literary or educational purposes.
17 The value of the equitable interest in any personal property,
18 made subject to tax by this section, shall be measured by
19 ascertaining the value of the personal property in which such
20 resident has the sole equitable interest or in case of divided
21 equitable interests in the same personal property, then by
22 ascertaining such part of the value of the whole of such
23 personal property as represents the equitable interest of such
24 resident therein.
25 The value of any taxable shares of stock issued by any
26 regulated investment company, as defined under the provisions of
27 the Federal Internal Revenue Code in effect during the year for
28 which the tax return is filed, shall be that part of the current
29 value of said shares to be determined by multiplying said
30 current value by a fraction the numerator of which shall be the
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1 total value of so much of the personal property owned by the
2 regulated investment company as would be taxable by this act if
3 owned by a resident of Pennsylvania and the denominator of which
4 shall be the total value of all of the personal property owned
5 by the regulated investment company.
6 Notwithstanding any other provision of law to the contrary,
7 the actual value of personal property for purposes of computing
8 the tax due under this act shall be the assessed value or
9 current market value of the personal property, less the amount
10 of any lien or encumbrance existing against the personal
11 property.
12 Section 2. This act shall take effect in 60 days.
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