PRINTER'S NO. 2431
No. 1735 Session of 1990
INTRODUCED BY FISHER, JULY 10, 1990
REFERRED TO FINANCE, JULY 10, 1990
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," exempting nonprofit housing cooperatives from the
11 capital stock franchise tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The definition of "domestic entity" in section
15 601 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
16 Reform Code of 1971, amended December 23, 1983 (P.L.360, No.89),
17 is amended and the section is amended by adding a definition to
18 read:
19 Section 601. Definitions and Reports.--(a) The following
20 words, terms and phrases when used in this Article VI shall have
21 the meaning ascribed to them in this section, except where the
22 context clearly indicates a different meaning:
1 * * *
2 "Domestic entity." Every corporation having capital stock,
3 every joint-stock association, limited partnership and every
4 company whatsoever, now or hereafter organized or incorporated
5 by or under any laws of the Commonwealth, other than
6 corporations of the first class, nonprofit corporations,
7 nonprofit housing cooperatives and cooperative agricultural
8 associations not having capital stock and not conducted for
9 profit, banks, savings institutions, title insurance or trust
10 companies, building and loan associations and insurance
11 companies is a domestic entity.
12 * * *
13 "Nonprofit housing cooperative corporation." Every nonprofit
14 corporation formed for the purpose of providing housing for its
15 shareholders. The term includes a corporation where shareholders
16 receive the Federal income tax benefits of ownership and the
17 benefit from any economics realized by the sharing of costs and
18 expenses of maintaining and operating their facility and are
19 entitled to earn a profit from the sale of their unit or
20 liquidation of the corporation.
21 * * *
22 Section 2. This act shall apply to tax years beginning after
23 December 31, 1990.
24 Section 3. This act shall take effect in 60 days.
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