PRINTER'S NO. 600
No. 571 Session of 1997
INTRODUCED BY GREENLEAF, HART, COSTA, FUMO, HECKLER, HELFRICK,
AFFLERBACH, DELP, MUSTO, SALVATORE AND WENGER,
FEBRUARY 28, 1997
REFERRED TO FINANCE, FEBRUARY 28, 1997
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 classes of income.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 303(a)(2) of the act of March 4, 1971
14 (P.L.6, No.2), known as the Tax Reform Code of 1971, added
15 August 31, 1971 (P.L.362, No.93), is amended to read:
16 Section 303. Classes of Income.--(a) The classes of income
17 referred to above are as follows:
18 * * *
19 (2) Net profits. The net income from the operation of a
20 business, profession, or other activity, after provision for all
21 costs and expenses incurred in the conduct thereof, determined
1 either on a cash or accrual basis in accordance with accepted
2 accounting principles and practices but without deduction of
3 taxes based on income. Pension plan contributions, Social
4 Security payments and health insurance premium payments made by
5 an employer, even if the taxpayer is self-employed, shall be
6 considered costs and expenses for the purposes of determining
7 taxable income under this article.
8 * * *
9 Section 2. This act shall take effect in 60 days.
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