Example. The taxpayer owns the following exempt and taxable assets:
Beginning of Year | End of Year | Average | |
Book value of taxable assets | $100,000 | $150,000 | $125,000 |
Book value of exempt assets | $400,000 | $600,000 | $500,000 |
Book value of total assets | $500,000 | $750,000 | $625,000 |
The taxpayer's taxable fraction | |||
is $125,000 | |||
$625,000 |
The decimal equivalent, .200000, which represents the proportion of taxable assets, is then multiplied by the capital stock value to determine the taxable value of the taxpayer's capital stock.
Example. The taxpayer owns the following exempt and taxable assets:
Average book value of total | |
assets: | $1 million |
Less: Average book value of | |
exempt assets: | |
(a) Tangible property outside | |
this Commonwealth ($40,000 at | |
beginning of year and $20,000 at | |
end of year) | $30,000 |
(b) Stocks of other Common- | |
wealth corporations ($150,000 | |
held for 122/365 of year) | $50,000 |
(c) United States Securities of | |
$20,000 held for the entire year | $ 20,000 |
$ 100,000 | |
Average book value of taxable | |
assets | $ 900,000 |
The taxpayer's taxable assets | |
fraction is: | $ 900,000 |
$1,000,000 |
The decimal equivalent, .900000, which represents the proportion of taxable assets, is then multiplied by the capital stock value to determine the taxable value of the taxpayer's capital stock.
61 Pa. Code § 155.10
The provisions of this § 155.10 issued under section 408 of the Tax Reform Code of 1971 (72 P. S. § 7408); amended under sections 408 and 603 of the Tax Reform Code of 1971 (72 P. S. §§ 7408 and 7603).