72 Pa. Stat. § 7701.5
The following words, terms and phrases when used in this article shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning:
"Billing address." The location indicated in the books and records of an institution on the first day of the taxable year or on a later date in the taxable year when the customer relationship began, as the address where a notice, statement and bill relating to a customer's account is mailed.
"Commercial domicile." As follows:
(1) the place from which a trade or business is principally managed and directed; or
(2) if a trade or business is organized under the laws of a foreign country, the person's commercial domicile shall be deemed to be the state of the United States or the District of Columbia from which the institution's trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which a trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employes are regularly connected or out of which they are working, notwithstanding where the services of the employes are performed, as of the last day of the taxable year.
"Card issuer's reimbursement fee." The fee an institution receives from a merchant's bank because one of the persons to whom the institution has issued a credit, debit or similar type of card has charged merchandise or services to the card.
"Credit card." A card, or other means of providing information, that entitles the holder to charge the cost of purchases or a cash advance, against a line of credit.
"Debit card." A card, or other means of providing information, that enables the holder to charge the cost of purchases or cash withdrawal, against the holder's bank account or a remaining balance on the card.
"Deposits." Deposits consist of those items specified for inclusion as such in quarterly Reports of Condition, but do not include deposits made by the Federal Government, its agencies or instrumentalities.
"Doing business in this Commonwealth." As follows:
(1) An institution is engaged in doing business in this Commonwealth and is subject to the tax imposed under this article if it satisfies any of the following requirements:
(i) The institution has an office or branch in this Commonwealth.
(ii) One or more employes, representatives, independent contractors or agents of the institution conduct business activities of the institution in this Commonwealth.
(iii) A person, including an employe, representative, independent contractor, agent or affiliate of the institution, or an employe, representative, independent contractor or agent of an affiliate of the institution, directly or indirectly solicits business in this Commonwealth by or for the benefit of the institution, through:
(A) person-to-person contact, mail, telephone or other electronic means; or
(B) the use of advertising published, produced or distributed in this Commonwealth.
(iv) The institution owns, leases or uses real or personal property in this Commonwealth to conduct its business activities.
(v) The institution holds a security interest, mortgage or lien in real or personal property located in this Commonwealth.
(vi) A basis exists under section 701.4 to apportion the institution's receipts to this Commonwealth.
(vii) The institution has a physical presence in this Commonwealth for a period of more than one day during the tax year or conducts an activity sufficient to create a nexus in this Commonwealth for tax purposes under the Constitution of the United States.
(2) The term shall not include:
(i) The use by the institution of a professional performing a service on behalf of the institution in this Commonwealth if the services are not significantly associated with the institution's ability to establish and maintain a market in this Commonwealth.
(ii) The mere use of financial intermediaries in this Commonwealth by an institution for the processing or transfer of checks, credit card receivables, commercial paper and similar items.
"Employe." Any individual to whom wages are paid within the meaning of 26 U.S.C. § 3401.
"Institution." As follows:
(1) The term shall mean:
(i) Every bank operating as such and having capital stock which is incorporated under any law of this Commonwealth, under the law of the United States or under the law of any other jurisdiction.
(ii) Every operating company having capital stock and having any of the powers of companies entitled to the benefits of an act, entitled "An act conferring upon certain fidelity, insurance, safety deposit, trust, and savings companies, the powers and privileges of companies incorporated under the provisions of section 29 of an act, entitled An act to provide for the incorporation and regulation of certain corporations,' approved April 29, 1874, and of the supplements thereto," approved June 27, 1895, commonly known as trust companies.
(iii) Every company organized and operating as a bank and trust company or as trust company having capital stock, whether the institution is incorporated under any law of this Commonwealth, the law of the United States or any law of any jurisdiction. The term shall not include any of such companies, all of the shares of capital stock of which, other than shares necessary to qualify directors, are owned by a company which is liable to pay to the Commonwealth a tax pursuant to this article.
(iv) A corporation organized under 12 U.S.C. Ch. 6 Subch. II (relating to organization of corporations to do foreign banking).
(v) An agency or branch of a foreign depository as defined in 12 U.S.C. § 3101 (relating to definitions).
(2) The term shall not include a "mutual thrift institution" or "institution," as defined in section 1501, which is subject to the tax imposed under Article XV.
Lease." Any leasing transaction in which the lessor would be treated as owner of the leased property under generally accepted accounting principles. All other transactions purporting to be leases shall be treated as loans for purposes of this article.
"Loan." As follows:
(1) The term shall mean any of the following:
(i) An extension of credit resulting from direct negotiations between the institution and its customer.
(ii) The purchase, in whole or in part, of the extension of credit under subparagraph (i) from another person.
(2) The term shall include a participation, syndication and lease treated as a loan for Federal income tax purposes.
(3) The term shall not include:
(i) Futures or forward contracts.
(ii) An option.
(iii) A notional principal contract such as swaps.
(iv) A credit card receivable, including a purchased credit card relationship.
(v) A noninterest bearing balance due from a depository institution.
(vi) A cash item in the process of collection.
(vii) A Federal fund sold.
(viii) A security purchased under an agreement to resell.
(ix) An asset held in a trading account.
(x) A security.
(xi) An interest in a real estate mortgage investment conduit or other mortgage-backed or asset-backed security.
(xii) An item similar to an item listed under this paragraph.
"Loan secured by real property." A loan for which at least fifty per cent of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property.
"Merchant discount." The fee or negotiated discount charged to a merchant by an institution for the privilege of participating in a program by which a credit, debit or similar type of card is accepted in payment for merchandise or services sold to the cardholder, net of any cardholder charge-back and unreduced by any interchange transaction or issuer reimbursement fee paid to another for a charge or purchase made by its cardholder.
"Origination of loans." A loan is deemed to have originated in the state in which the office is located which properly treats the loan as an asset on its books or records. However, if an institution maintains an office in a state, the following rules apply:
(1) Loans secured primarily by real property are deemed to have originated at an office within the state in which the predominant part of the security real property is or will be located, if at least one of the following activities occurs at an office in the state:
(i) application for the loan;
(ii) negotiation for the loan;
(iii) approval of the loan; or
(iv) administrative responsibility for the loan.
(2) All other loans made to borrowers residing or having their commercial domicile within the state are deemed to have originated at an office within the state, if at least one of the following activities occurs at an office in the state:
(i) application for the loan;
(ii) negotiation for the loan;
(iii) approval of the loan; or
(iv) administrative responsibility for the loan.
"Principal base of operations." As follows:
(1) With respect to transportation property, the place from which the property is regularly directed or controlled.
(2) With respect to an employe, the place of more or less permanent nature from which the employe regularly:
(i) starts work and to which the employe customarily returns in order to receive instructions from the employe's employer;
(ii) communicates with customers or other people; or
(iii) performs any other function necessary to the exercise of the employe's trade or profession at some other point.
"Property located in a state."
(1) Except as otherwise provided in this definition, tangible property, including leased property, shall be deemed to be located in the state in which the property is physically situated.
(2) Tangible personal property which is characteristically moving property, such as motor vehicles, rolling stock, aircraft, vessels, mobile equipment and the like, shall be deemed to be located in a state if:
(i) the operation of the property is entirely within the state or the operation outside of the state is occasional or incidental to its operation within the state;
(ii) the operation of the property is in two or more states, but the principal base of operations from which the property is sent out is in the state; or
(iii) the state is the residence or commercial domicile of the lessee or other user of the property, where there is no principal base of operations and the operation of the property is in two or more states.
"Real property owned" and "tangible property owned." As follows:
(1) Real and tangible personal property, respectively,:
(i) on which the institution may claim depreciation for Federal income tax purposes; or
(ii) property to which the institution holds legal title and on which no other person may claim depreciation for Federal income tax purposes, or could claim depreciation if subject to Federal income tax.
(2) The term does not include coin, currency or property acquired in lieu of or pursuant to a foreclosure.
"Receipts." The total of all items of income reported on the income statement of the institution's Reports of Condition at the end of the preceding calendar year. If there is a combination of two or more institutions into one, the total of all items of income that would be reported on the income statements of the Reports of Condition of the constituent institutions shall be combined as if a single institution had been in existence for the year. For purposes of this definition, a combination shall include any acquisition required to be accounted for by using the purchase method in accordance with generally accepted accounting principles or a statutory merger or consolidation. If the institution does not file quarterly Reports of Condition, the term shall include all items of income included on an income statement determined in accordance with generally accepted accounting principles for the preceding calendar year.
"Regular place of business." An office at which an institution carries on its business in a regular and systematic manner and which is continuously maintained, occupied and used by employes of an institution.
"Regular presence of employes." An employe shall be deemed to have a regular presence in a state if:
(1) a majority of the employe's service is performed within the state; or
(2) the office from which his activities are directed or controlled is located in the state, where a majority of the employe's service is not performed in any one state.
"State." Any of the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States and any foreign country.
"Syndication." An extension of credit in which two or more people provide funds and each person is at risk for up to a specified percentage of the total extension of credit or for up to a specified dollar amount.
"Transportation property." A vehicle and vessel capable of moving under its own power, such as an aircraft, a train, a water vessel and a motor vehicle. The term includes equipment or a container attached to the property, such as rolling stock, a barge, a trailer or similar equipment or container.
72 P.S. § 7701.5