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§ 8502.1. Apportionment

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 72 P.S. Taxation and Fiscal Affairs

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 72 P.S. Taxation and Fiscal Affairs
Chapter 5. Tax Reform Code of 1971 (Refs & Annos)
Article XV. Mutual Thrift Institutions Tax (Refs & Annos)
72 P.S. § 8502.1
§ 8502.1. Apportionment
Currentness
(a) Net income or net loss shall be apportioned in accordance with this section. An institution may apportion its net income or net loss if the institution is subject to tax in another state based on or measured by net worth, gross receipts, net income or some similar base of taxation, or if it could be subject to such a tax, whether or not such a tax has in fact been enacted.
(b) Income or loss shall be apportioned in accordance with a fraction, the numerator of which is the sum of the payroll factor, the receipts factor and the deposits factor, and the denominator of which is three.
(c) The payroll factor is a fraction, the numerator of which is the total wages paid in this State and the denominator of which is the total wages paid in all states. Wages are paid in a state if paid to an employe having a regular presence therein.
(d) The receipts factor is a fraction, the numerator of which is total receipts located in this State and the denominator of which is the total receipts located in all states. Receipts do not include principal repayments on loans or credit, travel and entertainment cards. Receipts from sale or disposition of intangible and tangible property include only the net gain therefrom. The location of receipts shall be determined as follows:
(1) Receipts from loans are located at the place of origination.
(2) All receipts from performance of services are located in a state to the extent the services are performed in the state. If services are performed partly within two or more states, the receipts located in each state shall be measured by the ratio which the time spent in performing such services in the state bears to the total time spent in performing such services in all states. Time spent in performing services in a state is the time spent by employes having a regular presence in the state in performing such services.
(3) Receipts from lease transactions are located in the state in which the leased property is deemed located.
(4) Interest or service charges (excluding merchant discounts) from credit, travel and entertainment card receivables and credit card holders' fees are located in the state in which the credit card holder resides in the case of an individual or, if a corporation, in the state of the cardholder's commercial domicile if, in either case, the institution maintains an office in such state. Otherwise, the receipts are located in the state in which the institution maintains an office which treats such receivables as assets on its books or records.
(5) Interest, dividends and net gains from the sale or disposition of intangibles, exclusive of those receipts described elsewhere in this section, are located in the state in which the depository maintains an office which treats such intangibles as assets on its books or records.
(6) Fees or charges from the issuance of traveler's checks and money orders are located in the state in which such traveler's checks or money orders are issued.
(7) Receipts from sales of tangible property are located in the state in which the property is delivered or shipped to a purchaser, regardless of the f.o.b. point or other conditions of the sale.
(8) All receipts not specifically treated under this subsection are located in the state where the greatest portion of the income-producing activities are performed, based on costs of performance.
(e) The deposits factor is a fraction, the numerator of which is the average value of deposits located in this State during the taxable year and the denominator of which is the average value of total deposits during the taxable year. The average value of deposits is to be computed on a quarterly basis. The location of deposits shall be determined as follows:
(1) Deposits received from individuals are located in the state in which the individual resides, if the institution maintains an office in that state.
(2) Deposits received from a corporation are located in the state of the corporation's commercial domicile, if the institution maintains an office in that state.
(3) Deposits received from a state government, its political subdivisions, agencies and instrumentalities are located in such state, if the institution maintains an office in that state.
(4) In all other cases, deposits are located in the state in which the institution maintains an office which treats the deposits as liabilities on its books or records.

Credits

1971, March 4, P.L. 6, No. 2, art. XV, § 1502.1, added 1988, Oct. 14, P.L. 737, No. 106, § 4, imd. effective.
72 P.S. § 8502.1, PA ST 72 P.S. § 8502.1
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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