PRINTER'S NO. 2431
No. 1969 Session of 1991
INTRODUCED BY MRKONIC, HERMAN, PISTELLA, JOHNSON, GODSHALL AND
RICHARDSON, AUGUST 3, 1991
REFERRED TO COMMITTEE ON FINANCE, AUGUST 3, 1991
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," excluding food purchased in restaurants and from
11 vending machines from a sales tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 202 of the act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, amended October 4,
16 1978 (P.L.987, No.201), is amended to read:
17 Section 202. Imposition of Tax.--(a) There is hereby
18 imposed upon each separate sale at retail of tangible personal
19 property or services, as defined herein, within this
20 Commonwealth a tax of six per cent of the purchase price, which
21 tax shall be collected by the vendor from the purchaser, and
22 shall be paid over to the Commonwealth as herein provided.
1 (b) There is hereby imposed upon the use, on and after the
2 effective date of this article, within this Commonwealth of
3 tangible personal property purchased at retail on or after the
4 effective date of this article, and on those services described
5 herein purchased at retail on and after the effective date of
6 this article, a tax of six per cent of the purchase price, which
7 tax shall be paid to the Commonwealth by the person who makes
8 such use as herein provided, except that such tax shall not be
9 paid to the Commonwealth by such person where he has paid the
10 tax imposed by subsection (a) of this section or has paid the
11 tax imposed by this subsection (b) to the vendor with respect to
12 such use. The tax at the rate of six per cent imposed by this
13 subsection shall not be deemed applicable where the tax has been
14 incurred under the provisions of the "Tax Act of 1963 for
15 Education."
16 (c) Notwithstanding any other provisions of this article,
17 the tax with respect to non-residential intrastate telephone
18 service and intrastate telegraph service within the meaning of
19 clause (m) of section 201 of this article shall, except for
20 telegrams paid for in cash at telegraph offices, be computed at
21 the rate of six per cent upon the total amount billed to
22 customers periodically for such services, irrespective of
23 whether such billing is based upon a flat rate or upon a message
24 unit charge.
25 (d) Notwithstanding any other provisions of this article,
26 the sale [or use of food and] of beverages dispensed by means of
27 coin operated vending machines shall be taxed at the rate of six
28 per cent of the receipts collected from any such machine which
29 dispenses [food and] beverages heretofore taxable.
30 Section 2. Section 204(29) of the act is amended to read:
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1 Section 204. Exclusions from Tax.--The tax imposed by
2 section 202 shall not be imposed upon
3 * * *
4 (29) The sale at retail or use of food and beverages for
5 human consumption including candy, gum and similar confections,
6 except that this exclusion shall not apply with respect to--
7 (i) Soft drinks;
8 (ii) Malt and brewed beverages and spirituous and vinous
9 liquors;
10 (iii) [Food and beverages] Beverages (except when purchased
11 at, or from a school or church in the ordinary course of
12 activities of such organization) when the purchase price of the
13 total transaction is more than ten cents (10¢), when purchased
14 (i) from persons engaged in the business of catering, or (ii)
15 from persons engaged in the business of operating restaurants,
16 cafes, lunch counters, private and social clubs, taverns, dining
17 cars, hotels and other eating places. For the purpose of this
18 subclause (iii), beverages shall not include malt and brewed
19 beverages and spirituous and vinous liquors, but shall include
20 soft drinks, and the price of such soft drinks shall be
21 considered together with the price of other beverages [and food]
22 in determining whether the purchase price of the total
23 transaction is more than ten cents (10¢). This exclusion shall
24 apply to food purchased from persons engaged in the business of
25 catering or from persons engaged in the business of operating
26 restaurants, cafes, lunch counters, private and social clubs,
27 taverns, dining cars, hotels and other eating places.
28 * * *
29 Section 3. This act shall take effect in 60 days.
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