Bill Text: PA SB355 | 2009-2010 | Regular Session | Introduced

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Bill Title: In personal income tax, further providing for classes of income and for spousal income tax returns; and abrogating regulations.

Sponsorship: Slight Partisan Bill (Democrat 4-2)

Status: (Introduced - Dead) 2009-02-20 - Referred to FINANCE [SB355 Detail]

Download: Pennsylvania-2009-SB355-Introduced.html

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PRINTER'S NO. 353
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 355 Session of2009
INTRODUCED BY GREENLEAF, KITCHEN, TARTAGLIONE, WASHINGTON, STACK AND EARLL, FEBRUARY 20, 2009
REFERRED TO FINANCE, FEBRUARY 20, 2009
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," in personal income tax, further providing for
classes of income and for spousal income tax returns; and
abrogating regulations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 303 of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is amended by
adding a subsection to read:
Section 303. Classes of Income.--* * *
(a.8) A taxpayer may offset a gain in one class of income
with a loss in another class of income.
Section 2. Section 331 of the act, added August 31, 1971
(P.L.362, No.93), is amended to read:
Section 331. Returns of Married Individuals, Deceased or
Disabled Individuals and Fiduciaries.--(a) If the income tax
liability of husband or wife is determined on a separate return,
their income tax liabilities under this article shall be
separate.
(b) If the income tax liabilities of husband and wife are
determined on a joint return, [their] all of the following
apply:
(1) Their tax liabilities shall be joint and several.
(2) A spouse may offset a gain in a class of income with a
loss of the other spouse in the same class of income.
(3) A spouse may offset a gain in one class of income with a
loss of the other spouse in another class of income.
(c) If either husband or wife is a resident and the other is
a nonresident, they shall file separate tax returns under this
article on such single or separate forms as may be required by
the department, in which event their tax liabilities shall be
separate except as provided in subsection (d) unless both elect
to determine their joint taxable income as if both were
residents, in which event their tax liabilities shall be joint
and several.
(d) If husband and wife file separate tax returns under this
article on a single form pursuant to subsections (b) or (c) and:
(1) If the sum of the payments by either spouse, including
withheld and estimated taxes, exceeds the amount of the tax for
which such spouse is separately liable, the excess may be
applied by the department to the credit of the other spouse if
the sum of the payments by such other spouse, including withheld
and estimated taxes, is less than the amount of the tax for
which such other spouse is separately liable.
(2) If the sum of the payments made by both spouses with
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respect to the taxes for which they are separately liable,
including withheld and estimated taxes, exceeds the total of the
taxes due, refund of the excess may be made payable to both
spouses, or if either is deceased, to the survivor.
Provided, however, That the provisions of this subsection (d)
shall not apply if the return of either spouse includes a demand
that any overpayment made by him or her shall be applied only on
account of his or her separate liability.
(e) The return for any deceased individual shall be made and
filed by his executor, administrator, or other person charged
with his property.
(f) The return for an individual who is unable to make a
return by reason of minority or other disability shall be made
and filed by his guardian, committee, fiduciary or other person
charged with the care of his person or property, or by his duly
authorized agent.
(g) The return for an estate or trust shall be made and
filed by the fiduciary. If two or more fiduciaries are acting
jointly, the return may be made by any one of them.
Section 3. The following provisions of 61 Pa. Code are
abrogated:
(1) Section 115.5(d).
(2) Section 121.15(c) and (d).
Section 4. The following provisions shall apply to taxable
years beginning after December 31, 2008:
(1) The addition of section 303(a.4) of the act.
(2) The amendment of section 331(b) of the act.
(3) Section 3 of this act.
Section 5. This act shall take effect immediately.
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