PA
Pennsylvania Senate Bill SB161

Pennsylvania 2023-2024 Regular Session

Pennsylvania Senate Bill SB161

Introduced
1/19/23  

Caption

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

Impact

The bill modifies how corporate income is defined and reported, which could significantly impact businesses that operate across state lines. By altering the methodology for determining taxable income and introducing a single sales fraction for income apportionment, the legislation aims to create a fairer taxation system that ensures corporations are held accountable for their economic activities in the state. The changes intend to simplify tax compliance while potentially increasing revenue collection efficiency for the state government. However, it may compel some companies to reassess their financial and operational strategies in Pennsylvania.

Summary

Senate Bill 161 aims to amend the Tax Reform Code of 1971 by revisiting sections related to the corporate net income tax. The bill introduces changes to what constitutes taxable income for corporations operating in Pennsylvania and clarifies the apportionment process for corporate net income among members of a unitary business. One notable change is the proposed reduction of the corporate tax rate from 9.99% to 8.99% for fiscal year 2024, gradually decreasing to 6.99% by 2026. Additionally, the bill sets forth definitions and reporting processes meant to streamline the administration of taxes for corporate entities.

Sentiment

Overall sentiment around SB 161 seems mixed. Supporters highlight the benefits of reduced tax burdens and the potential for attracting more business investments to the state. They argue that a lower corporate tax rate could facilitate job creation and stimulate the economy. Conversely, opponents caution that such tax cuts could lead to revenue shortfalls for the state, limiting funding for essential services and programs. The contention arises from the balance between incentivizing corporate presence and maintaining adequate state resources.

Contention

Points of contention in the discussions surrounding SB 161 revolve primarily around the implications of the proposed tax cuts on state revenue and the effectiveness of the definition changes in achieving their intended goals. Some lawmakers express concerns about the long-term fiscal impact, arguing that the bill favors larger corporations while potentially disadvantaging smaller enterprises. The debate also touches on the transparency of tax administration processes and whether the simplified reporting requirements might serve as a loophole for larger, multi-state corporations to minimize their taxable presence in Pennsylvania.

Latest SB161 Activity

Companion Bills

No companion bills found.

Previously Filed As

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1462

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA SB656

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1610

In personal income tax, further providing for definitions and for income taxes imposed by other states and providing for provisions for overtime pay; in corporate net income tax, further providing for definitions, for determination of net loss deduction, for imposition of tax, for reports and payment of tax, for timely mailing treated as timely filing and payment and for additional withholding requirements, repealing provisions relating to consolidated reports, further providing for extension of time to file reports, for changes made by Federal Government, for limitations on assessments, for definitions, for manufacturing innovation and reinvestment deduction, for enforcement, rules and regulations, inquisitorial powers of the department, for retention of records and for penalties; in tax credit and tax benefit administration, further providing for definitions and providing for application of tax credits or tax benefits to a unitary business; providing for working Pennsylvanians tax credit; and, in general provisions, further providing for estimated tax, for underpayment of estimated tax and for restatement of tax liability under treaties.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB2422

In corporate net income tax, further providing for definitions.

PA HB60

In corporate net income tax, further providing for definitions.

PA HB1482

In corporate net income tax, further providing for imposition of tax.

PA HB1447

In corporate net income tax, further providing for imposition of tax.

PA SB345

In corporate net income tax, further providing for imposition of tax.

Similar Bills

CA AB310

Wealth tax.

CA AB2088

Wealth tax.

PA SB656

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1550

In corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

PA HB1462

In corporate net income tax, further providing for definitions, for reports and payment of tax and for consolidated reports; and, in general provisions, further providing for underpayment of estimated tax.

MO SB1212

Modifies provisions relating to the apportionment of income for financial institutions

MA H2755

To level the playing field for Massachusetts small and medium sized businesses

CA AB1604

Charter schools: school facilities: Charter School Facility Grant Program: conduit financing.