General Information For Rct-132 (Page 6 of 6) in pdf

RCT-132 – Line-by-Line Instruction

RCT-132-I (10-12)

Page 6 of 6

Line 4 - Receipts from lease transactions are located in the state where the leased property is located.

Line 5 - Interest and fees (such as service charges) – excluding merchant discounts from credit, travel and entertainment card receiv-

ables and credit card holders’ fees – are located in the state where the credit card holder resides. If the card holder is a corporation

maintaining a commercial domicile, such charges are in the state of the card holder’s commercial domicile. Otherwise, receipts are locat-

ed in the state where the institution maintains an office that treats such receivables as assets on its books or records.

Line 6 - Interest, dividends and net gains from the sale or disposition of intangibles, excluding receipts described elsewhere in this sec-

tion, are located in the state where the institution maintains an office that treats such intangibles as assets on its books or records.

Line 7 - Traveler’s checks and money order fees or charges are located in the state where the traveler’s checks or money orders are

issued.

Line 8 - Receipts from sales of tangible property are located in the state where the property is delivered or shipped, regardless of the

free on board (FOB) point or other condition of sale.

Line 9 - Receipts from the issuance of title insurance are located in the state where the insured property is located.

Line 10 - All receipts not specifically addressed above are located in the state where the greatest portion of income-producing activi-

ty is performed, based on costs of performance.

Line 11 - Enter the total receipts for Columns A and B (sum of Lines 2 through 10).

Deposits Factor

Line 12 through Line 17 - The numerator is the average value of deposits in Pennsylvania during the taxable year, and the denomi-

nator is the average value of total deposits during the taxable year. The average value of deposits is to be calculated on a quarterly basis.

Deposits are located in the state where the institution maintains an office that treats the deposits as a liability on its books or records. A

deposit is considered properly treated as a liability on the books or records of the office with which it has a greater portion of contact. In

determining whether a deposit has a greater portion of contact with a particular office, consideration is given to the following:

• Whether the deposit account was opened at or transferred to that office by or at the direction of the depositor, regardless of where

subsequent deposits or withdrawals are made.

• Whether employees regularly connected with that office are primarily responsible for servicing the depositor’s general banking and

other financial needs.

• Whether the deposit was solicited by an employee regularly connected with that office, regardless of where such deposit was actu-

ally solicited.

• Whether the terms governing the deposit were negotiated by employees regularly connected with that office, regardless of where

the negotiations were actually conducted.

• Whether essential records relating to the deposit are kept at that office and whether the deposit is serviced at that office.

Page 2 - Calculation of Shares Tax Apportionment

Line 12 - Payroll Inside PA (from Page 5, Schedule C, Line 1a)

Line 13 - Total Payroll (from Page 5, Schedule C, Line 1b)

Line 14 - Payroll Factor (Line 12 divided by Line 13); carry to six decimal places.

Line 15 - Receipts Inside PA (from Page 5, Schedule C, Line 11a)

Line 16 - Total Receipts (from Page 5, Schedule C, Line 11b)

Line 17 - Receipts Factor (Line 15 divided by Line 16); carry to six decimal places.

Line 18 - Average Deposits Inside PA (from Page 5, Schedule C, Line 17a)

Line 19 - Average Total Deposits (from Page 5, Schedule C, Line 17b)

Line 20 - Deposits Factor (Line 18 divided by Line 19); carry to six decimal places.

Line 21 - Total of Proportions (Line 14, plus Line 17, plus Line 20)

Line 22 - Apportionment Factor, if all three above factors apply, divide Line 21 by 3. If only two of the above factors apply, divide by 2.

If only one of the above factors applies, divide by 1. Carry to six decimal places. Enter this decimal on Line 22 and on Page 2, Line 9.

Page 2 - Calculation of Shares Tax

Taxable shares equal the total shares for the current year plus each of the preceding five years, divided by 6. An entity in existence fewer

than six years must total the shares for each of the years in existence and divide by that number of years. A partial year of existence is

considered a full year. The value of shares for a partial year is determined by adding the book values for each report of condition filed or

calendar quarter in existence and dividing the sum by the number of reports or quarters.

Line 1 - Current Year Value of Shares (from Page 4, Schedule B, Line 31)

Line 2 - First Prior Year Value of Shares

Line 3 - Second Prior Year Value of Shares

Line 4 - Third Prior Year Value of Shares

Line 5 - Fourth Prior Year Value of Shares

Line 6 - Fifth Prior Year Value of Shares

Line 7 - Sum of Value of Shares (total of Line 1 through Line 6)

Line 8 - Taxable Shares (Line 7 divided by 6 or the number of years in existence, if less than 6)

Line 9 - Shares Tax Apportionment (from Line 22); carry to six decimal places.

Line 10 - Total Amount of Shares Subject to Tax (Line 8 times Line 9)

Line 11 - Tax (Multiply Line 10 by 1.25 percent (0.0125). Carry the tax to RCT-132 Page 1, Line 1a.

If the taxpayer is the survivor of a merger of one or more institutions, the History of Shares would include the sum of the prior year value

of shares of each institution. Institution has been defined as a bank operating as such and having capital stock which is located within this

commonwealth. Therefore, a merger involving a non-PA bank, either as the merged company or the survivor, would not use the combined

history of shares.

General Information For Rct-132 Page 6

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