Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 7801.1. Ascertainment of taxable amount;  exclusion of United States obligations

(a) The taxable amount of shares shall be ascertained and fixed by adding together the value determined under subsection (b) for the current and preceding five years and dividing the resulting sum by six.  If a company has not been in existence for a period of six years, the taxable amount of shares shall be ascertained and fixed by adding together the value determined under subsection (b) for the number of years the company has been in existence and dividing the resulting sum by such number of years.

(b) The value for each year required by subsection (a) shall be determined by adding together the book value of capital stock paid in, the book value of the surplus, the book value of undivided profits and the book value of the unearned premium reserve with a deduction from the total thereof of an amount equal to the same percentage of such total as the book value of obligations of the United States bears to the book value of the total assets.  For purposes of this subsection, in the case of title insurance companies, book values and the deduction for United States obligations for each year shall be determined by generally accepted accounting principles as of the end of each calendar quarter in the preceding calendar year and book values shall in all cases be averaged as calculated by averaging book values as determined at the end of each calendar quarter.  For the purposes of this article, United States obligations shall be obligations coming within the scope of 31 U.S.C. § 3124.  For any year in which a bank or bank and trust company does not file four quarterly Reports of Condition, book values and deductions for United States obligations shall be determined by adding together the book values and deductions for United States obligations from each quarterly Reports of Condition filed for such year and dividing the resulting sums by the number of such Reports of Condition.  For any year in which a title insurance company is not in existence for the full year, book values and deductions for United States obligations shall be determined by adding together the book values and deductions for United States obligations as of the end of each calendar quarter in which the company was in existence at the end of such calendar quarter and dividing the resulting sums by the number of such calendar quarters.  For purposes of this section, a partial year shall be treated as a full year.

(c) For purposes of this section: