Pennsylvania HB 1815: An Act repealing the act of July 12, 1935 (P.L.970, No.314), known as the Individual Net Income Tax Act.

Bill Text

PRINTER'S NO. 2235
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1815
Session of
2025
INTRODUCED BY ROWE, SCHEUREN, HAMM, GAYDOS AND BERNSTINE,
AUGUST 21, 2025
REFERRED TO COMMITTEE ON FINANCE, AUGUST 22, 2025
AN ACT
Repealing the act of July 12, 1935 (P.L.970, No.314), entitled
"An act imposing a graduated income tax for school purposes
on residents of Pennsylvania including fiduciaries and on
income of nonresidents derived from property or business in
Pennsylvania; defining taxable income and requiring filing of
returns thereof; providing for the assessment, collection and
lien of said tax and for the disposition of proceeds thereof;
providing for administration and enforcement of the act by
the Department of Revenue; conferring powers and imposing
duties on certain persons, partnerships, associations,
corporations, school districts, State officers, employes and
departments; imposing penalties; and appropriating the
revenues derived from said tax."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of July 12, 1935 (P.L.970, No.314), known
as the Individual Net Income Tax Act, is repealed:
[AN ACT
Imposing a graduated income tax for school purposes on residents
of Pennsylvania including fiduciaries and on income of
nonresidents derived from property or business in
Pennsylvania; defining taxable income and requiring filing of
returns thereof; providing for the assessment, collection and
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lien of said tax and for the disposition of proceeds thereof;
providing for administration and enforcement of the act by
the Department of Revenue; conferring powers and imposing
duties on certain persons, partnerships, associations,
corporations, school districts, State officers, employes and
departments; imposing penalties; and appropriating the
revenues derived from said tax.
ARTICLE I
SHORT TITLE AND DEFINITIONS
Section 1. Short Title.--Be it enacted, &c., That this act
shall be known and may be cited as the "Individual Net Income
Tax Act."
Section 2. Definitions.--The following words, terms and
phrases when used in this act shall have the meaning ascribed to
them in this section, except where the context clearly indicates
a different meaning.
"Association." A partnership, limited partnership, or any
other form of unincorporated enterprise owned by two or more
persons.
"Corporation." A corporation or joint stock association
organized under the laws of this Commonwealth, the United
States, or any other state, territory, or foreign country or
dependency.
"Department." The Department of Revenue of this
Commonwealth.
"Dividend." Any distribution made by a corporation or
association, subject, or not subject, to the payment of a tax on
capital stock under the laws of the Commonwealth, out of its net
earnings or profits, accumulated after December thirty-first,
one thousand nine hundred and thirty-four, to its stockholders
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or members, whether in cash or in other property or in stock,
other than stock dividends as hereinafter defined.
"Fiduciary." A guardian, committee, trustee, executor,
administrator, receiver, conservator, or any person, whether
individual or corporate, acting in any fiduciary capacity for
any person, estate or trust.
"Individual." A natural person.
"Paid." For the purposes of the deductions under this act,
means "paid or accrued" or "paid or incurred," and the words
"paid or accrued," "paid or incurred" and "incurred" shall be
construed according to the method of accounting upon the basis
of which the net income is computed under this act.
"Person." Every natural person, fiduciary, association, or
corporation. Whenever used in any clause prescribing and
imposing a fine or imprisonment, or both, the term "person," as
applied to associations, shall mean the partners or members
thereof, and as applied to corporations, the officers thereof.
"Received." For the purpose of the computation of the net
income under this act, means "received or accrued" and the words
"received or accrued" shall be construed according to the method
of accounting upon the basis of which the net income is computed
under this act.
"Resident." As applied to an individual, means any person
domiciled in the Commonwealth of Pennsylvania and any person who
maintains a permanent place of abode within this Commonwealth.
"Stock dividends." New stock for surplus or profits
capitalized, issued to stockholders in proportion to their
previous holdings.
"Tax year." The calendar year upon the basis of which the
net income of a taxpayer is computed under this act.
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"Taxpayer." Any individual, trust or estate required to pay
a tax under the provisions of this act.
The singular shall include the plural, and the masculine
shall incl