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§ 4821. Four mill tax on loans, credits, securities, etc., for county and city purposes; except...

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 4. Local Taxation (Refs & Annos)
Subjects and Rates of County Taxation in General (Refs & Annos)
Tax on Credits, Loans, Moneys, Etc., for County and City Purposes and Their Assessment (Refs & Annos)
Imposition of Tax
72 P.S. § 4821
§ 4821. Four mill tax on loans, credits, securities, etc., for county and city purposes; exceptions
All personal property of the classes hereinafter enumerated, owned, held or possessed by any resident, which, as used in this section, shall mean any person, persons, copartnership, or unincorporated association or company, resident, located, or liable to taxation within this Commonwealth, or by any joint-stock company or association, limited partnership, bank or corporation whatsoever, formed, erected or incorporated by, under, or in pursuance of any law of this Commonwealth or of the United States, or of any other state or government, and liable to taxation within this Commonwealth, whether such personal property be owned, held, or possessed by such resident in his, her, their, or its own right, or as active trustee, agent, attorney-in-fact, or in any other capacity, or by any resident as trustee, agent or attorney-in-fact, jointly with one or more trustees, agents or attorney-in-fact, domiciled in another state, where such personal property is held and managed in this Commonwealth, except as executor or administrator of the estate of a non-resident decedent, and except as trustee for a resident or non-resident religious, charitable or educational organization, no part of the net earnings of which inures to the benefit of any private stockholder or individual for the use, benefit, or advantage of any other person, copartnership, unincorporated association, company, joint-stock company or association, limited partnership, bank or corporation, and the equitable interest in any such personal property of the classes hereinafter enumerated, owned, held or possessed by any resident, where the legal title to such personal property is vested in a trustee, agent, or attorney-in-fact, domiciled in another state, or where the legal title to such personal property is vested in more than one trustee, agent or attorney-in-fact, one or more of whom are domiciled in another state, and one or more of whom are domiciled within this Commonwealth, and such personal property is held and managed in another state, and where such resident is entitled to receive all or any part of the income therefrom--is hereby made taxable annually for county purposes, and, in cities coextensive with counties, for city and county purposes, at a rate not to exceed four mills of each dollar of the value thereof, and no failure to assess or return the same shall discharge such owner or holder thereof, from liability therefor, that is to say,--
All mortgages; all moneys owing by solvent debtors, whether by promissory note, or penal or single bill, bond, or judgment; all articles of agreement and accounts bearing interest; all public loans whatsoever, except those issued by this Commonwealth or the United States, and except the public loans and obligations of any county, city, borough, town, township, school district, and incorporated district of this Commonwealth, and except the bonds and obligations of bodies corporate and politic of this Commonwealth, known as municipal authorities; all loans issued by any corporation, association, company, or limited partnership, created or formed under the laws of this Commonwealth or of the United States, or of any other state or government, including car-trust securities and loans secured by bonds or any other form of certificate or evidence of indebtedness, whether the interest be included in the principal of the obligation or payable by the terms thereof, except such loans as are made taxable for State purposes by section seventeen of the act, approved the twenty-second day of June, one thousand nine hundred thirty-five (Pamphlet Laws 414), as reenacted and amended;1 all shares of stock in any bank, corporation, association, company, or limited partnership, created or formed under the laws of this Commonwealth or of the United States, or of any other state or government, except shares of stock in any bank, bank and trust company, national banking association, savings institution, corporation, or limited partnership liable to a tax on its shares or a gross premiums tax, or liable to or relieved from the capital stock or franchise tax for State purposes under the laws of this Commonwealth; and all moneys loaned or invested in other states, territories, the District of Columbia, or foreign countries; all other moneyed capital owing to individual citizens of the State: Provided, That this section shall not apply to bank notes, or notes discounted or negotiated by any bank or banking institution, savings institution, or trust company, nor to loans, shares of stock, or other securities, held by bankers or brokers solely for trading purposes; nor to accounts or debit balances owing by customers of bankers or brokers in the usual courses of business; nor to interest bearing accounts in any bank or banking institution, savings institution, employes' thrift or savings association, whether operated by employes or the employer, or trust company; nor to personal property held in the commercial department and owned in its own right by a banking institution, savings institution, or trust company, in liquidation by a receiver, trustee, or other fiduciary, nor to personal property formerly held by a banking institution in its own right, but assigned by it to one or more trustees for liquidation and payment to the creditors and stockholders of such banking institutions, it being the intent and purpose of this proviso that no tax be assessed or collected for the years one thousand nine hundred and thirty-five, one thousand nine hundred and thirty-six, one thousand nine hundred and thirty-seven, one thousand nine hundred and thirty-eight, one thousand nine hundred and thirty-nine, one thousand nine hundred and forty, and thereafter upon the personal property enumerated herein, nor shall this act apply to the proceeds of any life insurance policy held in whole or in part by the insurer, nor the principal value of annuities nor to any personal property held in any trust, forming part of a stock, bonus, pension or profit sharing plan of an employer for the exclusive benefit of his employes, or their beneficiaries, which trust under the latest ruling of the Commissioner of Internal Revenue is exempted from Federal income tax, nor to any personal property held under the provisions of a plan established by or for an individual or individuals for retirement purposes if such plan meets the requirements for exemption from Federal income tax of income earned on investments held under its provisions, nor to any personal property that is held by an employe for retirement purposes under the provisions of a stock purchase plan established by the employer for the exclusive benefit of his or her employes: And provided further, That the provisions of this act shall not apply to building and loan associations, or to shares of stock issued by building and loan associations, or to savings institutions having no capital stock; and, if at any time, either now or hereafter, any persons, individuals, or bodies corporate have agreed or shall hereafter agree to issue his, their, or its securities, bonds or other evidences of indebtedness, clear of and free from the said tax, whose rate may not exceed four mills, herein provided for, or any part thereof, or have agreed or shall hereafter agree to pay the same, nothing herein contained shall be so construed as to relieve or exempt him, it, or them from paying the said tax, whose rate may not exceed four mills, on any of the said such securities, bonds, or other evidences of indebtedness, as may be held, owned by, or owing to the said savings institution having no capital stock: And provided further, That the provisions of this act shall not apply to fire companies, firemen's relief associations, life, casualty or fire insurance corporations having no capital stock, secret and beneficial societies, labor unions and labor union relief associations, and all beneficial organizations paying sick or death benefits, or either or both, from funds received from voluntary contributions or assessments upon members of such associations, societies, or unions: And provided further, That corporations, limited partnerships, and joint-stock associations, liable to tax on their shares or the aforesaid capital stock or franchise tax for State purposes, shall not be required to make any report or pay any further tax, under this section, on the mortgages, bonds, and other securities owned by them in their own right; but corporations, limited partnerships, and joint-stock associations, holding such securities as trustees, executors, administrators, guardians, or in any other manner, except as mere custodian for the real owner, and except as executor or administrator of the estate of a nonresident decedent, and except as trustee for a resident or nonresident religious, charitable or educational organization, no part of the net earnings of which inures to the benefit of any private stockholder or individual, shall return and pay the tax imposed by this section upon all securities so held by them as in the case of individuals: And provided further, That none of the classes of property made taxable by this section for county purposes, and, in cities coextensive with counties, for city and county purposes, shall be taxed or taxable for any other local purpose, under the laws of this Commonwealth: And provided further, That the provisions of this section shall not apply to personal property, of the class hereinabove enumerated, received or acquired with proceeds of money or property received from any person or persons, copartnership, or unincorporated association or company, nonresident in or not located within this Commonwealth, or from any joint-stock company or association, limited partnership, bank or corporation formed, erected, or incorporated by, under or in pursuance of, any law of the United States, or of any state or government other than this Commonwealth, by any person or persons, copartnership, unincorporated association, company, joint-stock company or association, limited partnership, bank, or corporation as active trustee, agent, attorney-in-fact, or in any other capacity, for the use, benefit, or advantage of any person or persons, copartnership, or unincorporated association or company, nonresident in or not located within this Commonwealth, or for the use, benefit or advantage of any joint-stock company or association, limited partnership, bank or corporation formed, erected, or incorporated by, under, or in pursuance of any law of the United States, or of any state or government other than this Commonwealth; nor shall the provisions of this section apply to personal property held for the use, benefit or advantage of any resident who shall have in each of the ten preceding calendar years given or contributed all of his net income to any corporation organized or operated exclusively for religious, charitable, scientific, literary, or educational purposes.
The value of the equitable interest in any personal property made subject to tax by this section shall be measured by ascertaining the value of the personal property in which such resident has the sole equitable interest, or in case of divided equitable interests in the same personal property, then by ascertaining such part of the value of the whole of such personal property as represents the equitable interest of such resident therein.
For the purposes of this act, the value of any taxable shares of stock issued by any regulated investment company as defined under the provisions of the Federal Internal Revenue Code of 1948,2 shall be that part of the current value of such shares, to be determined by multiplying said current value by a fraction, the numerator of which shall be the total value of so much of the personal property owned by the regulated investment company as would be taxable by this act if owned by a resident of Pennsylvania and the denominator of which shall be the total value of all of the personal property owned by the regulated investment company.

Credits

1913, June 17, P.L. 507, § 1. Amended 1929, April 30, P.L. 871, § 1; 1929, May 2, P.L. 1509, § 1; 1933, April 21, P.L. 54, § 1; 1939, June 19, P.L. 413, § 1; 1941, July 29, P.L. 548, § 1; 1941, July 29, P.L. 552, § 1; 1941, July 29, P.L. 556, § 1; 1945, May 11, P.L. 447, § 1; 1947, June 28, P.L. 1008, § 1; 1952, Jan. 14, P.L. (1951) 2035, § 1; 1963, July 25, P.L. 294, § 1; 1995, Oct. 31, P.L. 335, No. 54, § 1, effective in 60 days.
HISTORICAL AND STATUTORY NOTES
The history of the state tax on personal property is to be found in the following acts: 1831, March 25, P.L. 206 (repealed); 1840, June 11, P.L. 612, § 2; 1841, May 4, P.L. 307, § 9; 1842, July 27, P.L. 441, §§ 7, 16; 1844, April 29, P.L. 486, § 32 (repealed); 1845, April 16, P.L. 532, § 4 (repealed); 1846, April 22, P.L. 486, § 1 (repealed); 1847, March 15, P.L. 396, § 1 (repealed); 1850, April 25, P.L. 569, § 22 (repealed); 1857, May 18, P.L. 559, § 86; 1868, April 4, P.L. 61, § 1 (§ 4731, of this title); 1871, June 2, P.L. 281, § 1; 1873, March 21, P.L. 46, § 1 (§ 3251, of this title); 1873, April 9, P.L. 68, § 1 (§ 2125 of this title); 1877, March 24, P.L. 44, § 1 (§ 2124 of this title); 1879, June 7, P.L. 112, § 17 (repealed); 1881, June 10, P.L. 99, § 1; 1885, June 30, P.L. 193, §§ 1, 2; 1887, May 13, P.L. 114, § 1 (§ 4782 of this title); 1889, June 1, P.L. 420, § 1 (repealed); and 1891, June 8, P.L. 229, § 1 (repealed).
The acts 1889, June 1, P.L. 420, and 1891, June 8, P.L. 229, mentioned above, related to the taxation of personal property for state purposes. Section 1 of the act of 1846, April 22, P.L. 486 (repealed), required the county commissioners to levy a specified tax for the use of the Commonwealth upon all stages, omnibuses, hacks, cabs and other vehicles used for transporting passengers for hire, all annuities over $200 with specified exceptions, and on all property, real or personal not taxed under existing laws, held in trust for the use of any other person, company or corporation, except such as should be held in trust for religious purposes.
Section 2 of the act of 1846 read as follows: “The commissioners of each and every county, shall include in the precepts they shall hereafter issue to the ward, district or township assessors, the several objects of taxation mentioned in the preceding section, and shall require said assessors to ascertain the amount, description and value thereof, and make return to them as is now required by law; and the taxes on said property shall be assessed, levied, and collected in the same manner and the same proceeding shall be had in relation thereto, as is required by law in the assessment, levy, and collection of state tax, on real and personal property, in the several counties respectively.”
Act of 1913 and its amendments saved from repeal by Fourth to Eighth Class County Assessment Law, see § 5453.105 of this title.
Section 19 of act 1913, June 17, P.L. 507, repealed act 1887, May 24, P.L. 187; act 1889, June 1, P.L. 420, §§ 1 to 18, inclusive; act 1891, June 8, P.L. 229, §§ 1 to 3, inclusive; act 1905, April 17, P.L. 186; act 1909, May 1, P.L. 908; the act of 1911, May 11, P.L. 265; and all other sections and parts of said acts inconsistent herewith or substantially reenacted hereby, saving unto the Commonwealth the right to collect any taxes and penalties accrued or owing under said acts or any of them prior to the date the act went into effect, and also reserving the right to assess and collect all taxes for the year 1913 under existing legislation.
The amendment by act 1929, May 2, P.L. 1509, § 1, added to the first proviso “nor to loans, shares of stock, or other securities, held by bankers or brokers solely for trading purposes, nor to accounts or debit balances owing by customers of bankers or brokers in the usual courses of business.” The amendment by act 1929, April 30, P.L. 871, § 1, added the last proviso.
Interest bearing accounts in any bank or banking institution, savings institution, or trust company were added to the first proviso, and a clause in the second proviso as to individual depositors in savings institutions having no capital stock was omitted, by the act of 1933.
Section 2 of act of 1933, provided that the act should become effective on June 1, 1933; but that its provisions should not preclude the collection of any tax assessed on accounts exempted from the provisions of the act for the year 1933, or any previous year.
Saved from repeal, except where inconsistent with act 1937, April 28, P.L. 480 (now repealed) by § 11 of that act.
Numerous changes and additions were made by the act of 1939, including the addition of new provisions concerning executors and administrators of the estates of nonresident decedents, trustees for religious, charitable or educational organizations the net earnings of which do not inure to the benefit of any private stockholder or individual, the equitable interest in property of a resident where the legal title is in a non-resident trustee, agent, or attorney in fact, employees thrift or savings associations, banking institutions in liquidation, residents giving or contributing all of the net income of property to corporations organized or operated exclusively for religious, charitable, scientific, literary or educational purposes, and the manner of measuring the value of equitable interests.
Section 3 of the amendatory act of 1939 provided as follows: “The provisions of this act shall become effective immediately upon its final enactment, and shall apply to all taxes payable during the year one thousand nine hundred and thirty-nine, except to such as may already have been paid on the effective date of this act. In all cases where any executor, administrator, or trustee has not made a return for the purposes of the tax payable during the year one thousand nine hundred and thirty-nine, as required by this act, such return shall be made within thirty days of the effective date of this act, and the tax shall be levied by and paid to such county and as herein provided.”
Provisions concerning property held by resident trustees, agents or attorneys in fact jointly with non-resident trustees, agents or attorneys in fact, were added, and the proviso concerning life or fire insurance corporations having no capital stock was extended to casualty insurance corporations, by the act of 1941, P.L. 548.
The exception of personal property formerly held by a banking institution but assigned to trustees for liquidation was added by the act of 1941, P.L. 552.
The exception of the proceeds of any life insurance policy held in whole or in part by the insurer, was added by the act of 1941, P.L. 556.
Various changes were made by the act of 1945, including the exception of public loans and obligations of counties, cities, etc., and the bonds and obligations of municipal authorities; the omission of an exception of loans made taxable by § 3250-10 of this title; the exception of banks, etc., subject to a gross premiums tax or liable to, or relieved from the capital stock or franchise tax for state purposes, instead of an exception of those subject to the capital stock or franchise tax imposed by §§ 1871, 1891, and 1892 (repealed; see § 7601 et seq.) of this title; the exception of the principal value of annuities, only those yielding over $200 annually having been previously excepted; the exception of property forming part of a stock, bonus, pension or profit sharing plan of an employer, and the extension of the proviso concerning property received from nonresidents for the use or benefit of nonresidents, to property acquired with the proceeds of money or property so received.
The exception of corporations, etc., holding property as a mere custodian for the real owner from the duty to return and pay the tax was added by the act of 1947.
The act of 1952 added the last paragraph.
The act of 1963 added the exception of personal property held under provisions of a plan for retirement purposes if the income is exempt from Federal income tax.
1995 Legislation
The 1995 amendment, at the end of the first paragraph, preceding “four mills of each dollar”, substituted “a rate not to exceed” for “the rate of”; and, in the middle of the second paragraph, preceding “: And provided further,”, inserted “, nor to any personal property that is held by an employe for retirement purposes under the provisions of a stock purchase plan established by the employer for the exclusive benefit of his or her employes”, and, in two places, substituted “tax, whose rate may not exceed four mills,” for “four mills tax”.
Section 3 of Act 1995, Oct. 31, P.L. 335, No. 54 provides that the amendment to this section shall apply to the tax year beginning January 1, 1996, and each tax year thereafter.

Footnotes

72 P.S. § 3250-10.
26 U.S.C.A. generally.
72 P.S. § 4821, PA ST 72 P.S. § 4821
Current through 2020 Regular Session Act 35. Some statute sections may be more current, see credits for details.
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