May 24, 1991
TO: TAX COMMITTEE NO. 13-91
RE: PASS-THROUGH LEGISLATION INTRODUCED IN PENNSYLVANIA
__________________________________________________________
As you may know, the Institute has retained local counsel in
Pennsylvania to seek legislation to exempt from state income tax
those mutual fund dividends attributable to interest derived from
federal obligations. We are pleased to inform you that the
attached pass-through bill was recently introduced in the state
legislature by Senator Gibson Armstrong, Chairman of the
Pennsylvania Senate Finance Committee. As drafted, the bill
reflects comments made by personnel at the Department of Revenue,
which has yet to take a position on the bill. However, because
of industry concerns with certain provisions suggested by the
Department's staff, the Institute is drafting suggested
amendments to the bill.
We will keep you informed of developments.
Keith D. Lawson
Associate Counsel - Tax
Attachment