Section 8501 - DefinitionsThe following words, terms and phrases when used in this article shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
"Deposits."
(1) The unpaid balance of money or its equivalent which is received or held by an institution in the usual course of business and for which it has given or is obligated to give credit, either conditionally or unconditionally, to a commercial, checking, savings, time or thrift account, or which is evidenced by its certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness or other similar name, or a check or draft drawn against a deposit account and certified by the institution or a letter of credit or a traveler's check on which the institution is primarily liable: Provided, That, without limiting the generality of the term "money or its equivalent," any such account or instrument must be regarded as evidencing the receipt of the equivalent of money when credited or issued in exchange for checks or drafts or for a promissory note upon which the person obtaining any such credit or instrument is primarily or secondarily liable, or for a charge against a deposit account, or in settlement of checks, drafts or other instruments forwarded to such institution for collection.(2) Trust funds received or held by an institution, whether held in the trust department or held or deposited in any other department of the institution.(3) Money received or held by an institution, or the credit given for money or its equivalent received or held by an institution in the usual course of business for a special or specific purpose, regardless of the legal relationship thereby established, including, without being limited to, escrow funds, funds held as security for an obligation due to the institution or others (including funds held as dealers reserves) or for securities loaned by the institution, funds deposited by a debtor to meet maturing obligations, funds deposited as advance payment on subscriptions to United States Government securities, funds held for distribution or purchase of securities, funds held to meet its acceptances or letters of credit, and withheld taxes: Provided, That there shall not be included funds which are received by the institution for immediate application to the reduction of an indebtedness to the receiving institution or under condition that the receipt thereof immediately reduces or extinguishes such an indebtedness.(4) Outstanding drafts (including advice or authorization to charge an institution's balance in another institution or bank), cashier's checks, money orders, or other officer's checks issued in the usual course of business for any purpose, but not including those issued in payment for services, dividends, or purchases or other costs or expenses of the institution itself.(5) Deposits do not include deposits made by the Federal Government, its agencies and instrumentalities. "Employe." Any individual to whom wages are paid within the meaning of 26 U.S.C. § 3401.
"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.
"Located." An institution is located in this Commonwealth in a taxable year only if any one of the following apply:
(1) Such institution maintains an office here.(2) One or more employes of the institution has or have a regular presence here.(3) Such institution has employes, representatives or independent contractors conducting business activities in its behalf in this Commonwealth.(4) Such institution engages in regular solicitation in this Commonwealth (whether at a place of business, by traveling loan officers or other representatives, by mail, by telephone or other electronic means), and the solicitation results in the creation of a depository or direct debtor/creditor relationship with a resident of this Commonwealth. For purposes of this regulation, mere processing or transfer through financial intermediaries of checks, credit card receivables, commercial paper and the like does not create a debtor/creditor relationship. A financial institution is engaged in regular solicitation within this Commonwealth if it has entered into any of the relationships listed in this clause with twenty or more residents of this Commonwealth during any tax period or if it has five million dollars ($5,000,000) or more of assets attributable to sources within this Commonwealth at any time during the tax period.(5) Such institution owns tangible property which is located here and which is leased to others for their use.(6) Such institution owns or leases tangible property which is located here and which it uses in connection with its activities here. "Maintains an office." An institution maintains an office wherever it has established a regular, continuous and fixed place of business.
"Mutual thrift institution" or "institution." Every:
(1) savings bank without capital stock;(2) building and loan association;(3) savings and loan association; and(4) savings institution having capital stock; whether the institution is incorporated under any law of this Commonwealth or under the law of the United States, or is incorporated under the law of any other jurisdiction and is located within this Commonwealth.
"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 will 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.(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.(iv) Administrative responsibility for the loan. "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 without 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. "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.
"Taxable net income." The net income of an institution after apportionment and after any deduction for a net loss carryover.
"Taxable year." The taxable year which the institution, or any consolidated group with which the institution participates in the filing of consolidated returns, actually uses in reporting taxable income to the Federal Government. For purposes of this article, the terms "year," "annual year," "fiscal year," "annual or fiscal year," "tax year" and "tax period" shall be the same as the institution's taxable year, as defined in this paragraph.
1971, March 4, P.L. 6, No. 2, art. XV, § 1501, added 1983, Dec. 1, P.L. 228, No. 66, § 7, imd. effective. Amended 1988, Oct. 14, P.L. 737, No. 106, § 2, imd. effective.