VALUATION OF CAPITAL STOCK
§ 155.21. General.
(a) Taxable years prior to calendar year 1984. The Department recognizes and understands that the determination of the capital stock value of a taxpayer is not precise or constant in every instance, and that the determination depends upon the pertinent factors relating to each taxpayer. This section and § § 155.22—155.30 (relating to valuation of capital stock) are not intended to establish fixed or inflexible rules for the determination of the capital stock value in every instance. These sections provide general guidelines that are to be used as a general basis upon which, if necessary, adjustments can be made in determining the capital stock value of the taxpayer.
(b) Calendar year 1984 and years thereafter. The act of December 23, 1983 (P. L. 360, No. 89) that amended Article VI of the TRC (72 P. S. § § 7601—7606) made certain important changes to the Capital Stock and Foreign Franchise Taxes. Commencing with calendar year 1984 and fiscal years beginning in 1984 and each year thereafter, ‘‘actual value’’ as the standard in determining the value of a corporation’s capital stock has been eliminated. ‘‘Capital stock value’’ is now determined under the act by application of a defined and fixed formula, making the general guidelines set forth by § § 155.22—155.24 (relating to definitions; determination of valuation factors; and valuation methods) inapplicable to the determination of fixed formula capital stock value. Rules applicable to the determination of fixed formula capital stock value are set forth in § § 155.25—155.28 (relating to capital stock value—fixed formula; average net income—fixed formula; net worth—fixed formula; and capital stock value methods—fixed formula).
(c) Calendar year 1983 and years thereafter. The act of December 23, 1983 (P. L. 370, No. 90) provides for a minimum Capital Stock and Foreign Franchise Tax of $75. Reference should be made to § § 155.28(c) and 155.30 (relating to minimum tax).
Authority The provisions of this § 155.21 amended under section 408 of the Tax Reform Code of 1971 (72 P. S. § 7408).
Source The provisions of this § 155.21 adopted September 1, 1982, effective September 2, 1982, 8 Pa.B. 2457; amended January 16, 1987, effective January 17, 1987, 17 Pa.B. 273. Immediately preceding text appears at serial pages (94426) and (40509).
Cross References This section cited in 61 Pa. Code § 155.22 (relating to definitions); and 61 Pa. Code § 155.28 (relating to capital stock value methods—fixed formula).
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