Bill Text: PA HB72 | 2011-2012 | Regular Session | Introduced

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Bill Title: Providing for apportionment of business income.

Spectrum: Moderate Partisan Bill (Republican 71-11)

Status: (Introduced - Dead) 2011-01-19 - Referred to FINANCE [HB72 Detail]

Download: Pennsylvania-2011-HB72-Introduced.html

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PRINTER'S NO. 35
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 72 Session of2011
INTRODUCED BY REED, AUMENT, BAKER, BARRAR, BEAR, BLOOM, BOBACK, BOYD, R. BROWN, CALTAGIRONE, CAUSER, CHRISTIANA, CREIGHTON, CUTLER, DAY, DUNBAR, ELLIS, EVERETT, FLECK, GABLER, GEIST, GIBBONS, GINGRICH, GODSHALL, GOODMAN, GRELL, GROVE, HARHART, HARRIS, HESS, HORNAMAN, HUTCHINSON, KAUFFMAN, M.K. KELLER, KOTIK, LAWRENCE, LONGIETTI, MAHER, MAJOR, METCALFE, MILLARD, MILLER, MILNE, OBERLANDER, PAYNE, PEIFER, PETRI, PYLE, REESE, REICHLEY, ROSS, SAYLOR, SCAVELLO, SCHRODER, SIMMONS, M. SMITH, SONNEY, STURLA, TOEPEL, WATSON, KNOWLES, COHEN, O'NEILL, KILLION, STEVENSON AND MARSHALL, JANUARY 19, 2011
REFERRED TO COMMITTEE ON FINANCE, JANUARY 19, 2011
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for apportionment of business income.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 401(3)2(a)(9) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
October 9, 2009 (P.L.451, No.48), is amended to read:
Section 401. Definitions.--The following words, terms, and
phrases, when used in this article, shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(3) "Taxable income." * * *
2. In case the entire business of any corporation, other
than a corporation engaged in doing business as a regulated
investment company as defined by the Internal Revenue Code of
1986, is not transacted within this Commonwealth, the tax
imposed by this article shall be based upon such portion of the
taxable income of such corporation for the fiscal or calendar
year, as defined in subclause 1 hereof, and may be determined as
follows:
(a) Division of Income.
* * *
(9) (A) Except as provided in subparagraph (B):
(i) For taxable years beginning before January 1, [2007]
2006, all business income shall be apportioned to this State by
multiplying the income by a fraction, the numerator of which is
the property factor plus the payroll factor plus three times the
sales factor and the denominator of which is five.
(ii) For taxable years beginning after December 31, 2006,
all business income shall be apportioned to this State by
multiplying the income by [a fraction, the numerator of which is
the sum of fifteen times the property factor, fifteen times the
payroll factor and seventy times the sales factor and the
denominator of which is one hundred] the sales factor.
(iii) For taxable years beginning after December 31, 2008,
all business income shall be apportioned to this State by
multiplying the income by a fraction, the numerator of which is
the sum of eight and a half times the property factor, eight and
a half times the payroll factor and eighty-three times the sales
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factor and the denominator of which is one hundred.
(iv) For taxable years beginning after December 31, 2009,
all business income shall be apportioned to this State by
multiplying the income by a fraction, the numerator of which is
the sum of five times the property factor, five times the
payroll factor and ninety times the sales factor and the
denominator of which is one hundred.
(B) For purposes of apportionment of the capital stock -
franchise tax as provided in section 602 of Article VI of this
act, the apportionment fraction shall be the property factor
plus the payroll factor plus the sales factor as the numerator,
and the denominator shall be three.
* * *
Section 2. This act shall take effect in 60 days.
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