PDF TAXREFORMCODEOF1971 AN ACT Relating to tax reform and State ...

[Pages:633]TAX REFORM CODE OF 1971 Act of Mar. 4, 1971, P.L. 6, No. 2

AN ACT

Cl. 72

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.

TABLE OF CONTENTS

Article I. Short Title

Section 101. Short Title.

Article II. Tax For Education

Part I. Definitions

Section 201. Definitions.

Part II. Imposition of Tax

Section 202. Imposition of Tax. Section 203. Computation of Tax.

Part III. Exclusions From Tax

Section 204. Exclusions from Tax. Section 205. Alternate Imposition of Tax; Credits. Section 206. Credit Against Tax.

Part IV. Licenses

Section 208. Licenses.

Part V. Hotel Occupancy Tax

Section 209. Section 210. Section 211. Section 212.

Definitions. Imposition of Tax. Seasonal Tax Returns. Tourism Promotion Fund.

Part V-A. Marketplace Sales

Section 213. Definitions. Section 213.1. Election. Section 213.2. Notice Requirements. Section 213.3. Reports to Purchasers and Marketplace Sellers. Section 213.4. Reports to Department. Section 213.5. Liability and Penalties. Section 213.6. Application.

Part VI. Procedure and Administration

Chapter I. Returns

Section 215. Persons Required to Make Returns.

Section 216. Form of Returns.

Chapter II. Time and Place for Filing Returns

Section 217. Section 218. Section 219. Section 220.

Time for Filing Returns. Extension of Time for Filing Returns. Place for Filing Returns. Timely Mailing Treated as Timely Filing and Payment.

Chapter III. Payment of Tax

Section 221. Section 222. Section 223. Section 224. Section 225. Section 226. Section 227.

Payment. Time of Payment. Other Times for Payment. Place for Payment. Tax Held in Trust for the Commonwealth. Local Receivers of Use Tax (Repealed). Discount.

Chapter IV. Assessment and Collection of Tax

Section 230. Assessment. Section 231. Mode and Time of Assessment. Section 232. Reassessment. Section 233. Assessment to Recover Erroneous Refunds. Section 234. Review by Board of Finance and Revenue (Deleted

by amendment). Section 235. Appeal to Commonwealth Court (Deleted by

amendment). Section 236. Burden of Proof. Section 237. Collection of Tax. Section 238. Collection of Tax on Motor Vehicles, Trailers and

Semi-Trailers. Section 239. Precollection of Tax. Section 240. Bulk and Auction Sales. Section 241. Collection upon Failure to Request Reassessment,

Review or Appeal. Section 242. Lien for Taxes. Section 243. Suit for Taxes. Section 244. Tax Suit Comity. Section 245. Service. Section 246. Collection and Payment of Tax on Credit Sales. Section 247. Prepayment of Tax. Section 247.1. Refund of Sales Tax Attributed to Bad Debt. Section 248. Registration of Transient Vendors. Section 248.1. Bond. Section 248.2. Notification to Department; Inspection of

Records. Section 248.3. Seizure of Property. Section 248.4. Fines. Section 248.5. Transient Vendors Subject to Article. Section 248.6. Promoters.

Chapter V. Refunds and Credits

Section 250.

Section 251. Section 252. Section 253.

Refund or Credit for Overpayment (Deleted by amendment). Restriction on Refunds (Deleted by amendment). Refunds. Refund Petition.

Section 254. Section 255. Section 256.

Review by Board of Finance and Revenue (Deleted by amendment). Appeal to the Commonwealth Court (Deleted by amendment). Extended Time for Filing Special Petition for Refund.

Chapter VI. Limitations

Section 258. Section 259. Section 260. Section 261.

Limitation on Assessment and Collection. Failure to File Return. False or Fraudulent Return. Extension of Limitation Period.

Chapter VII. Interest, Additions, Penalties and Crimes

Section 265. Section 266. Section 267. Section 268. Section 269.

Interest. Additions to Tax. Penalties. Crimes. Abatement of Additions or Penalties.

Chapter VIII. Enforcement and Examinations

Section 270. Rules and Regulations. Section 271. Keeping of Records. Section 271.1. Reports and Records of Promoters. Section 272. Examinations. Section 273. Records and Examinations of Delivery Agents. Section 274. Unauthorized Disclosure. Section 275. Cooperation with Other Governments. Section 276. Interstate Compacts. Section 277. Bonds. Section 278. Remote Sales Reports. Section 279. Class Actions.

Part VII. Repealer; Appropriation; Effective Date

Section 280. Repeal. Section 281. Appropriation for Refunds, Etc. Section 281.1. Construction of Article. Section 281.2. Transfers to Public Transportation Assistance

Fund. Section 282. Effective Date.

Article II-A. Special Situs for Local Sales Tax

Section 201-A. Situs of Local Sales Tax on Certain Leased or Rental Vehicles or Crafts.

Section 202-A. Situs for Certain Construction Materials. Section 203-A. Situs of Local Sales Tax on Mobile

Telecommunications Services.

Article II-B. Special Taxing Authority

Section 201-B. Special taxing authority.

Article III. (Original Article III Repealed)

Article III. Personal Income Tax

Part I. Definitions

Section 301. Definitions.

Part II. Imposition of Tax

Section 302. Imposition of Tax. Section 302.1. Rate Changes Occurring During the Taxable Year. Section 302.2. Imposition of Tax (Repealed). Section 303. Classes of Income. Section 304. Special Tax Provisions for Poverty. Section 304.1. Alternative Special Tax Provision for Poverty

Study. Section 304.2. Pennsylvania ABLE Savings Program Tax Exemption.

Part III. Estates and Trusts

Section 305. Taxability of Estates, Trusts and Their Beneficiaries.

Part IV. Partnerships

Section 306. Taxability of Partners. Section 306.1. Tax Treatment Determined at Partnership Level. Section 306.2. Tax Imposed at Partnership Level.

Part IV-A. Pennsylvania S Corporations

Section 307. Election by Small Corporation. Section 307.1. Manner of Making Election. Section 307.2. Effective Years of Election. Section 307.3. Revocation of Election. Section 307.4. Termination by Corporation Ceasing to be a Small

Corporation. Section 307.5. Termination Year. Section 307.6. Election after Revocation or Termination (Deleted

by amendment). Section 307.7. Taxable Year of a Pennsylvania S Corporation. Section 307.8. Income of a Pennsylvania S Corporation. Section 307.9. Income of Pennsylvania S Corporations Taxed to

Shareholders. Section 307.10. Limitation on Pass-thru of Losses to

Shareholders. Section 307.11. Adjustments to the Basis of the Stock of

Shareholders. Section 307.12. Distributions.

Part IV-B. Other Entities

Section 307.21. Treatment of Unincorporated Entities With Single Owners.

Part V. Nonresident Individuals

Section 308. Nonresident Individuals; Taxable Income. Section 309. Husband and Wife. Section 310. Allocation of Income of Nonresident.

Part VI. Credits Against Tax

Section 312. Tax Withheld. Section 313. Tax Paid Under Previous Act. Section 314. Income Taxes Imposed by Other States.

Section 315. Space on Form for Contributions (Repealed).

Part VI-A. Contributions of Refunds by Checkoff

Section 315.1. Definitions. Section 315.2. Contributions to Breast and Cervical Cancer

Research. Section 315.3. Contributions for Wild Resource Conservation. Section 315.4. Contributions for Organ and Tissue Donation

Awareness. Section 315.5. Contributions for Olympics (Deleted by

amendment). Section 315.6. Contribution for Korea/Vietnam Memorial National

Education Center (Repealed). Section 315.7. Contributions for Juvenile Diabetes Cure

Research. Section 315.8. Contributions for Military Family Relief

Assistance. Section 315.9. Operational Provisions. Section 315.10. Contributions for the Children's Trust Fund. Section 315.11. Contributions for American Red Cross. Section 315.12. Contributions for Tuition Account Programs. Section 315.13. Contributions for Pediatric Cancer Research. Section 315.14. Contribution for Veterans' Trust Fund.

Part VII. Withholding of Tax

Section 316. Definitions. Section 316.1. Requirement of Withholding Tax. Section 316.2. Withholding Tax Requirement for Nonemployer

Payors. Section 317. Information Statement. Section 317.1. Information Statement for Nonemployer Payors. Section 317.2. Information Statement for Payees. Section 318. Time for Filing Withholding Returns. Section 318.1. Time for Filing Payors' Returns. Section 319. Payment of Taxes Withheld. Section 319.1. Payment of Taxes Withheld for Nonemployer Payors. Section 320. Liability for Withheld Taxes. Section 320.1. Payor's Liability for Withheld Taxes. Section 321. Failure to Withhold. Section 321.1. Bulk and Auction Sales and Transfers, Notice. Section 321.2. Payor's Failure to Withhold. Section 322. Designation of Third Parties to Perform Acts

Required of Employers. Section 323. When Withholding Not Required.

Part VII-A. Withholding Tax on Income from Sources Within This Commonwealth

Section 324. General Rule. Section 324.1. Amount of Withholding Tax. Section 324.2. Treatment of Nonresident Partners, Members or

Shareholders. Section 324.3. Liability for Tax, Interest, Penalties and

Additions. Section 324.4. Withholding on Income. Section 324.5. Annual Withholding Statement.

Part VIII. Estimated Tax

Section 325. Declarations of Estimated Tax. Section 326. Payments of Estimated Tax.

Part IX. Returns and Payment of Tax

Section 330. Returns and Liability. Section 330.1. Return of Pennsylvania S Corporation. Section 330.2. COVID-19 Emergency Finance and Tax Provision

(Repealed). Section 331. Returns of Married Individuals, Deceased or

Disabled Individuals and Fiduciaries. Section 332. Time and Place for Filing Returns and Paying Tax. Section 332.1. Electronic Payment. Section 333. Signing of Returns and Other Documents. Section 334. Extension of Time. Section 335. Requirements Concerning Returns, Notices, Records

and Statements. Section 336. Timely Mailing Treated as Timely Filing and

Payment. Section 336.1. Procedure for Claiming Special Tax Provisions. Section 336.2. Proof of Eligibility. Section 336.3. Paid Tax Return Preparers; Required Information

on Personal Income Tax Returns.

Part X. Procedure and Administration

Section 337. Payment on Notice and Demand. Section 338. Assessment. Section 339. Jeopardy Assessments. Section 340. Procedure for Reassessment. Section 341. Review by Board of Finance and Revenue (Deleted

by amendment). Section 342. Appeal to the Commonwealth Court (Deleted by

amendment). Section 343. Collection of Tax. Section 344. Collection upon Failure to Request

Reassessment, Review or Appeal. Section 345. Lien for Tax. Section 346. Refund or Credit of Overpayment. Section 347. Restrictions on Refunds. Section 348. Limitations on Assessment and Collection. Section 349. Extension of Limitation Period. Section 350. Limitations on Refund or Credit. Section 351. Interest. Section 352. Additions, Penalties and Fees. Section 352.1. Abatement of Additions or Penalties. Section 352.2. Citation Authority. Section 353. Crimes. Section 354. Rules and Regulations. Section 355. Examination. Section 356. Cooperation with Other Governmental Agencies. Section 357. Appropriation for Refunds.

Part XI. Miscellaneous Provisions

Section 358. Section 359. Section 360. Section 361.

Constitutional Construction. Saving Clause and Limitations. Transfer of Funds (Deleted by amendment). Effective Date.

Article IV. Corporate Net Income Tax

Part I. Definitions

Section 401. Definitions.

Part II. Imposition of Tax

Section 402. Imposition of Tax. Section 402.1. Allocation of Tax (Repealed). Section 402.2. Interests in Unincorporated Entities.

Part III. Reports and Payment of Tax

Section 403. Reports and Payment of Tax. Section 403.1. Timely Mailing Treated as Timely Filing and

Payment. Section 403.2. Additional Withholding Requirements. Section 404. Consolidated Reports. Section 405. Extension of Time to File Reports. Section 406. Changes Made by Federal Government. Section 406.1. Amended Reports.

Part IV. Assessment and Collection of Tax

Section 407. Settlement and Resettlement. Section 407.1. Assessments. Section 407.2. Jeopardy Assessments. Section 407.3. Limitations on Assessments. Section 407.4. Extension of Limitation Period. Section 407.5. Audit by Auditor General; Determination of Tax.

Part IV-A. Qualified Manufacturing Innovation and Reinvestment Deduction

Section 407.6. Definitions. Section 407.7. Manufacturing Innovation and Reinvestment

Deduction.

Part V. Enforcement: Rules and Regulations; Inquisitorial Powers of the Department

Section 408. Enforcement; Rules and Regulations; Inquisitorial Powers of the Department.

Section 408.1. Collection of Tax.

Part VI. Retention of Records by Corporation

Section 409. Retention of Records.

Part VII. Penalties

Section 410. Penalties.

Part VIII. Repealer; Effective Date

Section 411. Repeal. Section 412. Effective Date.

Article V. Corporation Income Tax

Part I. Definitions

Section 501. Definitions (Repealed).

Part II. Imposition of Tax

Section 502. Imposition of Tax (Repealed).

Part III. Procedure; Enforcement; Penalties

Section 503. Procedure; Enforcement; Penalties (Repealed).

Part IV. Repealer; Effective Date

Section 505. Repeal (Repealed). Section 506. Effective Date (Repealed).

Article VI. Capital Stock--Franchise Tax

Part I. Valuation of Capital Stock

Section 601. Definitions and Reports.

Part II. Imposition of Tax

Section 602. Imposition of Tax. Section 602.1. Pollution Control Devices. Section 602.2. Family Farm Corporation Exemption. Section 602.3. Hazardous Sites Cleanup Fund. Section 602.4. Separate Entities. Section 602.5. Shows and Flea Markets. Section 602.6. Interest in Unincorporated Entities.

Part III. Procedure; Enforcement; Penalties

Section 603. Procedure; Enforcement; Penalties.

Part IV. Repeal; Applicability; Expiration

Section 605. Repeal. Section 606. Applicability. Section 607. Expiration.

Article VII. Bank and Trust Company Shares Tax

Part I. Imposition of Tax

Section 701. Imposition of Tax. Section 701.1. Ascertainment of Taxable Amount; Exclusion of

United States Obligations. Section 701.2. Reserve for Loan Losses (Repealed). Section 701.3. Amended Report for 1989. Section 701.4. Apportionment. Section 701.5. Definitions.

Part II. Procedure; Enforcement; Penalties

Section 702. Procedure; Enforcement; Penalties.

Part III. Repealer; Effective Date

Section 705. Repeal. Section 706. Effective Date.

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