§ 155.25. Capital stock value—fixed formula.
(a) For calendar years 1984, 1985 and 1986 and fiscal years beginning in 1984, 1985 and 1986:
Capital Stock Value is the amount computed under the following formula: one-half times the sum of the average net income capitalized at the rate of 9 1/2% plus 75% of net worth, the algebraic equivalent of which is:
.5 x (average net income/.095 + (.75) (net worth)).
(b) For calendar year 1987 and fiscal years beginning in 1987 and each year thereafter:
Capital Stock Value is the amount computed under the following formula: the product of one-half times the sum of the average net income capitalized at the rate of 9 1/2% plus 75% of net worth from which product shall be subtracted $50,000, the algebraic equivalent of which is:
(.5 x (average net income/.095 + (.75) (net worth))) - 50,000
Authority The provisions of this § 155.25 issued under section 408 of the Tax Reform Code of 1971 (72 P. S. § 7408).
Source The provisions of this § 155.25 adopted January 16, 1987, effective January 17, 1987, 17 Pa.B. 273.
Cross References This section cited in 61 Pa. Code § 155.21 (relating to general).
No part of the information on this site may be reproduced for profit or sold for profit.
This material has been drawn directly from the official Pennsylvania Code full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
