Bill Text: PA HB323 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further defining "installment sales method of reporting" for purposes of the personal income tax; and further providing for excluded transactions.

Spectrum: Moderate Partisan Bill (Republican 25-4)

Status: (Introduced - Dead) 2011-01-31 - Referred to FINANCE [HB323 Detail]

Download: Pennsylvania-2011-HB323-Introduced.html

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PRINTER'S NO. 278
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 323 Session of2011
INTRODUCED BY BOYD, CALTAGIRONE, CAUSER, CLYMER, DeLUCA, FLECK, GEIST, GRELL, HARRIS, HENNESSEY, HESS, HICKERNELL, HUTCHINSON, JOSEPHS, KAUFFMAN, M.K. KELLER, KILLION, KOTIK, METCALFE, MILLARD, MILLER, MUSTIO, REICHLEY, ROSS, SONNEY AND VULAKOVICH, JANUARY 31, 2011
REFERRED TO COMMITTEE ON FINANCE, JANUARY 31, 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," further defining "installment sales method of
reporting" for purposes of the personal income tax; and
further providing for excluded transactions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 301(l.1) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, added
December 23, 1983 (P.L.370, No.90), is amended to read:
Section 301. Definitions.--Any reference in this article to
the Internal Revenue Code of 1986 shall mean the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.),
as amended to January 1, 1997, unless the reference contains the
phrase "as amended" and refers to no other date, in which case
the reference shall be to the Internal Revenue Code of 1986 as
it exists as of the time of application of this article. 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:
* * *
(l.1) "Installment sales method of reporting" means the
method by which a taxpayer reports the gain upon the sale of
[tangible personal property or real property when at least one
payment is to be received in any taxable year following the
taxable year of sale, whether such property is sold or otherwise
disposed of in an isolated transaction or from the inventory of
a dealer or broker.] property when the sale of such property
qualifies for treatment as an installment sale as defined under
section 453 of the Internal Revenue Code of 1986 (Public Law
99-514, 26 U.S.C. § 453). Taxpayers may elect to allocate the
gain upon such transactions in equal proportion to each payment
to be received. Taxpayers who do not elect to allocate the gain
upon such transactions in equal proportion to each payment
received shall report all gains upon the sale in the taxable
year in which the transaction occurred. For the purposes of this
definition: (i) the gain upon the transaction shall be the
difference between the sales price and the seller's basis in the
property; and (ii) the sales price shall be the face amount of
the evidence of indebtedness given in exchange for the property
sold or otherwise disposed of together with the value of any
other consideration received by the seller. Where the evidence
of indebtedness fails to state a price, the evidence of
indebtedness will be valued at the fair market value of the
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property sold, less the value of other property or cash received
in the same transaction. The installment sales method of
reporting shall not be used for transactions the object of which
is the lending of money or the rendering of services.
* * *
Section 2. Section 1102-C.3 of the act is amended by adding
a clause to read:
Section 1102-C.3. Excluded Transactions.--The tax imposed by
section 1102-C shall not be imposed upon:
* * *
(23) A transfer between a municipality and a volunteer fire
company as defined in the act of July 15, 1976 (P.L.1036,
No.208), known as the "Volunteer Fire Company, Ambulance Service
and Rescue Squad Assistance Act."
Section 3. This act shall apply to taxable years beginning
after December 31, 2008.
Section 4. This act shall take effect immediately.
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