Section 10003.13 - Corporate tax treatment of certain automobile clubs(a) Notwithstanding any other provision of law, the "taxable income" of an automobile club for purposes of the tax imposed by Article IV of this act shall be separately computed and limited to income from the following activities: (1) The conduct of the business of insurance by the automobile club, or subsidiary or affiliate thereof, in the capacity of an insurance company, association or exchange, insurance agency or brokerage, as these terms are defined in the act of May 17, 1921 (P.L. 789, No. 285), known as "The Insurance Department Act of 1921."(2) The conduct of a travel agency business.(b) Notwithstanding any other provision of law, the "capital stock value" of an automobile club for purposes of the tax imposed by Article VI of this act shall be separately computed and limited to the value attributed to the following activities:(1) The conduct of the business of insurance by the automobile club, or subsidiary or affiliate thereof, in the capacity of an insurance company, association or exchange, insurance agency or brokerage, as these terms are defined in "The Insurance Department Act of 1921."(2) The conduct of a travel agency business.(c) For purposes of the taxes imposed by Articles IV and VI of this act, an automobile club shall be deemed not to be a membership organization subject to the Federal limitations on deductions from taxable income under section 277 of the Internal Revenue Code of 1986 ( Public Law 99-514, 26 U.S.C. § 277 ).(d) The following words, terms and phrases, when used in this section, shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning: "Automobile club." A nonprofit corporation, trust or other entity whose membership is open to the general public, and that provides services and conducts activities on behalf of its members, including all of the following:
(1) Motor vehicle registration, title transfer and license application and renewal services.(2) Motor vehicle travel assistance, including road maps, trip itineraries, tour guides and emergency roadside assistance.(3) Promotion of the development and provision of safe and convenient motor vehicle travel conditions, services and facilities.(4) Promotion of the construction, maintenance and use of efficient, adequate and safe highway systems.(5) Education of motorists and the traveling public in the principles of traffic and motor vehicle safety and related matters. "Travel agency business." The arrangement, in exchange for a fee, commission or salary, of vacation or travel packages or services, sightseeing tours, travel reservations or accommodations, tickets for domestic or foreign travel by air, rail, ship, bus or other mode of transportation or hotel or other accommodations.
1971, March 4, P.L. 6, No. 2, art. XXX, § 3003.13, added 1999, May 12, P.L. 26, No. 4, § 28, imd. effective.