Title 61--REVENUE DEPARTMENT OF REVENUE [61 PA. CODE CH. 11] Organ and Bone Marrow Donor Tax Credit [36 Pa.B. 7252]
[Saturday, December 2, 2006]The Secretary of Revenue (Secretary), under section 506 of The Administrative Code of 1929 (71 P. S. § 186) and sections 3 and 4 of the Organ and Bone Marrow Donor Act (act) (35 P. S. §§ 6120.3 and 6120.4), adds Chapter 11 (relating to organ and bone marrow donor tax credit) to read as set forth in Annex A. The Department of Revenue (Department) is adopting this final-omitted rulemaking to facilitate its responsibilities under sections 3(b)(1) and 4 of the act.
Because of time constraints associated with this statutory change for Pennsylvania taxpayers in the current fiscal year, the Department, under section 204 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1204), known as the Commonwealth Documents Law (CDL), and the regulation thereunder, 1 Pa. Code § 7.4 (relating to omission of notice of proposed rulemaking), finds that notice of proposed rulemaking is under the circumstances impracticable and, therefore, may be omitted.
The Department's justification for utilizing the final-omitted rulemaking process is that it is in the public interest to implement by January 1, 2007, the regulation for the organ and bone marrow donor tax credit. The timely adoption of this regulation will provide multistate taxpayers a method to apportion the credit available to be applied against their 2006 tax liabilities.
Purpose of Final-Omitted Rulemaking
This final-omitted rulemaking implements a regulation to reflect a statutory change made by the Legislature that created the organ and bone marrow donor tax credit.
Explanation of Regulatory Requirements
The Department is adding Chapter 11 to implement the organ and bone marrow donor tax credit under section 4 of the act.
Fiscal Impact
The Department has determined that the final-omitted rulemaking will have no adverse fiscal impact on the Commonwealth.
Paperwork
The final-omitted rulemaking will not generate substantial paperwork for the public or the Commonwealth.
Effectiveness/Sunset Date
The final-omitted rulemaking will be effective upon publication in the Pennsylvania Bulletin. The regulation is scheduled for review within 5 years of publication. No sunset date has been assigned.
Contact Person
The contact person for an explanation of the final-omitted rulemaking is Mary R. Sprunk, Office of Chief Counsel, Department of Revenue, Dept. 281061, Harrisburg, PA 17128-1061.
Regulatory Review
Under section 5.1(a) of the Regulatory Review Act (71 P. S. § 745.5a(a)), on October 18, 2006, the Department submitted a copy of the final-omitted rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance. On the same date, the regulation was submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506).
Under section 5.1(j.2) of the Regulatory Review Act, on November 15, 2006, the final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act, IRRC met on November 16, 2006, and approved the final-omitted rulemaking.
Findings
The Department finds that the regulation is necessary and appropriate for the administration and enforcement of the authorizing statute. Under section 204 of the CDL, the Department also finds that the proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are unnecessary because it is in the public interest to expedite this regulation that reduces the burden to the taxpayer.
Order
The Department, acting under the authorizing statute, orders that:
(a) The regulations of the Department, 61 Pa. Code, are amended by adding § 11.1 to read as set forth in Annex A.
(b) The Secretary shall submit this order and Annex A to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.
(c) The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon publication in the Pennsylvania Bulletin.
GREGORY C. FAJT,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 36 Pa.B. 7358 (December 2, 2006).)
Fiscal Note: 15-440. No fiscal impact; (8) recommends adoption.
Annex A TITLE 61. REVENUE PART I. DEPARTMENT OF REVENUE Subpart A. GENERAL PROVISIONS CHAPTER 11. ORGAN AND BONE MARROW DONOR TAX CREDIT Sec.
11.1. Organ and bone marrow donor tax credit. § 11.1. Organ and bone marrow donor tax credit.
(a) Applicable taxes. The Organ and Bone Marrow Donor Act (35 P. S. §§ 6120.1--6120.6) provides for an organ or bone marrow donor tax credit to be claimed by a business firm against the taxes imposed under Article III, IV, VI, VII, VIII or XV of the Tax Reform Code of 1971.
(b) Apportionment of credit of multistate business firms. The organ or bone marrow donor tax credit that may be claimed against the taxes in subsection (a) by a business firm subject to tax in more than one state shall be apportioned to Pennsylvania by multiplying the credit by a fraction, the numerator of which is the total amount paid in this Commonwealth during the tax period by the business firm for compensation and the denominator of which is the total compensation paid everywhere during the tax period.
[Pa.B. Doc. No. 06-2343. Filed for public inspection December 1, 2006, 9:00 a.m.]
