For Immediate Release
7/26/07

Contact:

Joe Pittman
(724) 357-0151  Cell (724) 541-0552
 

Senator White's "Goodwill" Bill Signed by Governor

Senate Bill 97 will "even the playing field"

Senator Don White's bill revising Pennsylvania's tax laws with regard to taxes paid as a result of bank mergers was signed into law Wednesday (July 25) by Governor Ed Rendell.

Senate Bill 97 (enacted as Act 55 of 2007) changes Pennsylvania's tax provisions, bringing  them in line with the formula used by neighboring states to calculate the state's bank shares tax by removing "goodwill." Goodwill is the difference between the book value and the actual price paid when one company acquires another and pays more than book value for the stock.

"I am pleased the Governor signed this very important legislation into law," said Senator White, Chairman of the Senate Banking and Insurance Committee.  "This initiative was my top priority during this year's budget negotiations and I am honored it was achieved."

"Many other states have already excluded goodwill from their tax calculations.  SB97 simply evens up the playing field.  For years, Pennsylvania banks have been at a disadvantage because of the inclusion of goodwill in the tax formula.  By removing it, we are taking an important step toward persuading banks to not only maintain their headquarters in Pennsylvania, but also encourage future growth," said Senator White.

"First Commonwealth and S&T banks are both headquartered in Indiana County, and this change will provide significant benefits to two of the largest employers in the 41st District," Senator White continued.

"The provisions of SB 97 enhance the ability of Pennsylvania banks to better adapt to the ever-changing global marketplace.  Such changes in tax policy are essential for our local banks as they strive to compete at a higher level," Senator White concluded.

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