PENNSYLVANIA, September 7 - three and seven hundredths per cent.

(b) [Every] Except as provided in subsection (c), every

nonresident individual, estate or trust shall be subject to, and

shall pay for the privilege of receiving each of the classes of

income hereinafter enumerated in section 303 from sources within

this Commonwealth, a tax upon each dollar of income received by

that nonresident during that nonresident's taxable year at the

rate of three and seven hundredths per cent.

(c) The classes of income under section 303 received by a

resident trust, and the classes of income received by a

nonresident trust from sources within this Commonwealth, shall

be taxable to the grantor of the trust or another person to the

extent the grantor or other person is treated as the owner of

the trust under sections 671, 672, 673, 674, 675, 676, 677, 678

and 679 of the Internal Revenue Code of 1986 (Public Law 99-514,

26 U.S.C. § 1 et seq.) whether or not such income is distributed

or distributable to the beneficiaries of the trust or

accumulated.

Section 305. Taxability of Estates, Trusts and Their

Beneficiaries.--[The] (a) Except as provided in subsection (b),

the income of a beneficiary of an estate or trust in respect of

such estate or trust shall consist of that part of the income or

gains received by the estate or trust for its taxable year

ending within or with the beneficiary's taxable year which,

under the governing instrument and applicable State law, is

required to be distributed currently or is in fact paid or

credited to said beneficiary. The income or gains of the estate

or trust, if any, taxable to such estate or trust shall consist

of the income or gains received by it which has not been

distributed or credited to its beneficiaries.

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