PRINTER'S NO. 482
No. 431 Session of 1993
INTRODUCED BY KUKOVICH, RICHARDSON, MIHALICH, THOMAS, CAWLEY,
MUNDY, BELFANTI, DALEY, MELIO, PRESTON, VAN HORNE, JAROLIN,
FEE, CARN, PISTELLA, TRELLO, OLASZ, STABACK, DeLUCA, JOSEPHS,
HUGHES AND STEELMAN, MARCH 15, 1993
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, MARCH 15, 1993
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," imposing duties on the Department of Public
11 Welfare; and providing funding from gross receipts tax for
12 the Pennsylvania Heating Energy Assistance Fund.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 1101(a) and (f) of the act of March 4,
16 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
17 amended December 11, 1979 (P.L.499, No.107) and August 4, 1991
18 (P.L.97, No.22), are amended and the section is amended by
19 adding a subsection to read:
20 Section 1101. Imposition of Tax.--(a) General Rule.--Every
21 railroad company, pipeline company, conduit company, steamboat
22 company, canal company, slack water navigation company,
1 transportation company, and every other company, association,
2 joint-stock association, or limited partnership, now or
3 hereafter incorporated or organized by or under any law of this
4 Commonwealth, or now or hereafter organized or incorporated by
5 any other state or by the United States or any foreign
6 government, and doing business in this Commonwealth, and every
7 copartnership, person or persons owning, operating or leasing to
8 or from another corporation, company, association, joint-stock
9 association, limited partnership, copartnership, person or
10 persons, any railroad, pipeline, conduit, steamboat, canal,
11 slack water navigation, or other device for the transportation
12 of freight, passengers, baggage, or oil, except taxicabs, motor
13 buses and motor omnibuses, and every limited partnership,
14 association, joint-stock association, corporation or company
15 engaged in, or hereafter engaged in, the transportation of
16 freight or oil within this State, and every telephone company,
17 telegraph company, express company, gas company, liquefied
18 petroleum gas company, oil company, kerosene company, palace car
19 company and sleeping car company, now or hereafter incorporated
20 or organized by or under any law of this Commonwealth, or now or
21 hereafter organized or incorporated by any other state or by the
22 United States or any foreign government and doing business in
23 this Commonwealth, and every limited partnership, association,
24 joint-stock association, copartnership, person or persons,
25 engaged in telephone, telegraph, express, palace car or sleeping
26 car business in this Commonwealth shall pay to the State
27 Treasurer, through the Department of Revenue, a tax of forty-
28 five mills with a surtax equal to five mills upon each dollar of
29 the gross receipts of the corporation, company or association,
30 limited partnership, joint-stock association, copartnership,
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1 person or persons, received from passengers, baggage, and
2 freight transported wholly within this State, from telegraph or
3 telephone messages transmitted wholly within this State, from
4 express, palace car or sleeping car business done wholly within
5 this State, from the sales of liquefied petroleum gas, oil or
6 kerosene to the public for heating purposes, or from the sales
7 of gas to the public from a public utility except gross receipts
8 derived from sales to any municipality owned or operated public
9 utility and except gross receipts derived from the sales for
10 resale, to persons, partnerships, associations, corporations or
11 political subdivisions subject to the tax imposed by this act
12 upon gross receipts derived from such resale and from the
13 transportation of oil done wholly within this State. [The gross
14 receipts of gas companies shall include the gross receipts from
15 the sale of artificial and natural gas, but shall not include
16 gross receipts from the sale of liquefied petroleum gas.]
17 * * *
18 (e.1) Special Fund.--(1) During fiscal year 1993-1994 and
19 in each fiscal year thereafter, the Secretary of Revenue shall,
20 from funds raised by the tax imposed by this article during that
21 fiscal year, deposit in a special fund, to be known as the
22 Pennsylvania Heating Energy Assistance Fund an amount as
23 specified in clauses (2) and (3). These funds shall be
24 appropriated only for low income energy assistance and
25 weatherization programs. All remaining funds raised by this tax
26 shall be deposited in the General Fund.
27 (2) The amount of money deposited in the fund each fiscal
28 year for distribution during that year shall be equal to a
29 designated amount less any Federal Low Income Home Energy
30 Assistance Program (LIHEAP) funding appropriated to this
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1 Commonwealth during that prior Federal fiscal year. In fiscal
2 year 1993-1994 the designated amount shall equal one hundred
3 thirty-five million dollars ($135,000,000). In each subsequent
4 year the designated amount shall equal one hundred thirty-five
5 million dollars ($135,000,000) escalated on a compounded annual
6 basis by the Consumer Price Index as published in the
7 Pennsylvania Bulletin by the Department of Commerce for the
8 previous calendar year.
9 (3) In addition to the funding in clause (2), in fiscal year
10 1993-1994 a one time deposit shall be made in the amount of
11 seven million five hundred thousand dollars ($7,500,000) to be
12 used as matching funds for Federal Title IV-A (aid to families
13 with dependent children), or other Federal energy assistance
14 matching funds. The funding shall be maintained in escrow in an
15 interest bearing account. Interest earned on the account shall
16 be first used to attract additional Federal matching funds if
17 available. If no additional Federal matching funds are
18 available, all interest will be distributed yearly for energy
19 assistance along with the fund distribution in clause (2).
20 (4) The Department of Public Welfare shall administer the
21 fund created in clause (1), LIHEAP funds and any other funds
22 made available by and received from the Federal Government or
23 the Commonwealth for low-income heating assistance. The
24 following criteria shall apply to the administration of funds
25 managed by the department.
26 (i) Escrow interest as designated by the Secretary of Public
27 Welfare, LIHEAP, and the Pennsylvania Heating Energy Assistance
28 Fund, shall be distributed annually as one coordinated funding
29 source.
30 (ii) Funds distributed on behalf of recipients shall be paid
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1 directly to the recipient's heating vendor.
2 (iii) Funds may be allocated annually to weatherization at
3 the discretion of the Secretary of Public Welfare but shall not
4 exceed fifteen per cent of the annual fund distribution in
5 clause (2).
6 (iv) Funds are to be distributed on a year-round basis,
7 beginning July 1 through June 30.
8 (f) Application to Municipalities.--This article shall be
9 construed to apply to municipalities, and to impose a tax upon
10 the gross receipts derived from any municipality owned or
11 operated public utility or from any public utility service
12 furnished by any municipality[, except that gross receipts shall
13 be exempt from the tax, to the extent that such gross receipts
14 are derived from business done inside the limits of the
15 municipality, owning or operating the public utility or
16 furnishing the public utility service].
17 * * *
18 Section 2. The definition of "gas companies" in section 1104
19 of the act, added August 4, 1991 (P.L.97, No.22), is amended to
20 read:
21 Section 1104. Definitions.--As used in this article:
22 "Gas companies." Only those gas companies whose rates and
23 conditions of service are regulated by the Pennsylvania Public
24 Utility Commission or which are owned or operated by a
25 municipality.
26 Section 3. This act shall take effect in 60 days.
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