House Co-Sponsorship Memoranda

House of Representatives
Session of 2013 - 2014 Regular Session

Posted:	May 7, 2014 01:08 PM
From:	Representative Thomas R. Caltagirone
To:	All House members
Subject:	Clarification of Sales Tax Exemption for Traffic Signals

In the near future, I plan to introduce legislation that will correct what I believe to be a significant misinterpretation of the sales and use tax provisions of the tax reform code. I recently became aware that the Department of Revenue is assessing tax on the sale of foundation material, poles and mast arms used in traffic signal construction. The tax code provides an exemption for “traffic signals” as long as the traffic signal will be transferred to a tax exempt governmental entity. The Department of Revenue is now interpreting the exemption for “traffic signal” under “building machinery and equipment” to exempt only the light assembly (the assembly that holds the red, yellow and green light). This narrow interpretation of the term “traffic signals” is causing our local municipalities to pay sales tax that we never intended that they pay and it is increasing the cost to them to install or maintain their traffic signals. I want to make certain that citizens and local municipalities are protected from this hidden tax. Please join me in sponsoring this legislation. If you have any questions, please contact my Executive Director, David Vitale.
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Introduced as HB2252