Pennsylvania Act 2002-237 — FIRST CLASS CITY BUSINESS TAX REFORM ACT - AMEND TAX MEASUREMENT YEAR, TAX PAYMENT, PERIOD USED IN COMPUTATION OF TAX AND CONTINUATION OF TAX

Act text

FIRST CLASS CITY BUSINESS TAX REFORM ACT - AMEND TAX MEASUREMENT YEAR,
  TAX PAYMENT, PERIOD USED IN COMPUTATION OF TAX AND CONTINUATION OF TAX
                 Act of Dec. 30, 2002, P.L. 2089, No. 237             Cl. 11
                             Session of 2002
                               No. 2002-237

     HB 2892

                                  AN ACT

     Amending the act of May 30, 1984 (P.L.345, No.69), entitled "An
        act to provide revenue for cities of the first class by
        authorizing and imposing a tax on persons engaging in certain
        businesses, professions, occupations, trades, vocations and
        commercial activities therein; providing for its levy and
        collection at the option of cities of the first class;
        conferring and imposing powers and duties on cities of the
        first class and the collector of city taxes in such cities;
        and prescribing penalties," defining "tax measurement year";
        further providing for period used in computation of tax and
        for tax payment; and providing for continuation of tax.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Section 2 of the act of May 30, 1984 (P.L.345,
     No.69), known as the First Class City Business Tax Reform Act,
     is amended by adding a definition to read:
      Section 2.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        * * *
        "Tax measurement year."  The fiscal or calendar year by which
     the person engaging in business keeps its books and records for
     Federal tax purposes.
        * * *
        Section 2.  Sections 5 and 7 of the act are amended to read:
      Section 5.  Period used in computation of tax.
        [(a)  Ongoing businesses.--Every person subject to the
     payment of the tax hereby imposed who has commenced his business
     at least one full year prior to the beginning of any tax year
     shall compute his annual receipts upon the actual receipts
     received by him during the preceding calendar year.
        (b)  Partial tax year.--Every person subject to the payment
     of the tax imposed hereunder, who has commenced his business
     subsequent to the beginning of any tax year, shall compute his
     annual receipts for such tax year upon the actual receipts
     received by him during the part of such tax year remaining.
        (c)  New businesses.--Every person subject to the payment of
     the tax imposed hereunder, who has commenced his business less
     than one full year prior to the beginning of any tax year, shall
     compute his annual receipts for such tax year upon the actual
     receipts received by him during his first 365 days in business.
        (d)  Seasonal businesses.--Every person subject to the
     payment of the tax hereby imposed, who engages in a business,
     temporary, seasonal or itinerant by its nature, shall compute
     his annual receipts upon the actual receipts received by him
     during such license year.]
        (a)  General rule.--Every period in which a person engages in
     business shall be subject to the tax imposed under this act.
     Every person subject to the payment of the tax imposed under
     this act shall compute the person's taxable receipts using the
     receipts received for the tax measurement year ending in the tax
     year. Every person subject to the payment of the tax imposed
     under this act shall compute the person's net income using the
     net income for the tax measurement year ending in the tax year.
        (b)  Certain new business.--Every person engaging in business
     who does not have a tax measurement year ending in the tax year
     shall file a return stating that no tax is due for the tax year.
        (c)  Terminating businesses.--Every person that has
     terminated the person's business during the tax year shall
     compute its receipts and net income using the period which
     begins on the beginning date of the tax measurement year ending
     in the tax year and which ends on the date the business is
     terminated.
        (d)  Changes in tax measurement year.--The collector shall
     prescribe regulations to ensure that every person that changes
     the person's tax measurement year, including a person that may
     have multiple tax measurement years within a tax year, shall pay
     the tax hereby imposed for all periods in business.
      Section 7.  Payment [at the time of filing the return].
        [The person] A person engaging in business subject to the tax
     shall pay an estimated tax payment at such time or times and in
     such manner as provided by regulations promulgated by the
     collector and upon making the return shall pay the amount of tax
     shown as due to the collector less any estimated tax payments
     paid for the tax year.
        Section 3.  Any payment made by a person subject to the tax
     imposed under the act for the transition year that was received
     by the collector prior to the enactment of this act shall be
     treated by the collector as an estimated tax payment for the
     transition year. If the city council of a city of the first
     class enacts an ordinance implementing the provisions of this
     act by November 30, 2002, then the transition year shall be tax
     year 2002; otherwise, the transition year shall be tax year
     2003.
        Section 3.1.  Any tax enacted pursuant to the former act of
     June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
     Convention Center Authority Act, is specifically continued and
     is not repealed or modified in any way by the repeal of that act
     or the addition of 53 Pa.C.S. Ch. 59.
        Section 4.  This act shall apply as follows:
            (1)  Except as provided in paragraph (2), sections 1, 2
        and 3 of this act and the rules set forth in those provisions
        shall apply to tax years beginning after December 31, 2001.
            (2)  If the city council of a city of the first class
        shall not have enacted an ordinance implementing the
        provisions of sections 1, 2 and 3 of this act by November 30,
        2002, this act and the rules set forth in those provisions
        shall apply to tax years beginning after December 31, 2002.
        Section 5.  This act shall take effect immediately.

     APPROVED--The 30th day of December, A. D. 2002.

     MARK S. SCHWEIKER