PRIOR PRINTER'S NO. 261 PRINTER'S NO. 689
No. 241 Session of 1977
INTRODUCED BY MESSRS. BRUNNER, MOEHLMANN, HASKELL AND VROON,
FEBRUARY 9, 1977
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, MARCH 15, 1977
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," further changing certain definitions with respect
11 to gratuities connected with certain sales and hotel
12 occupancy taxes.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Subclause (1) of clause (g) and clause (r) of
16 section 201 and clause (6) of subsection (a) of section 209, act
17 of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
18 1971," amended or added May 2, 1974 (P.L.269, No.75), are
19 amended to read:
20 Section 201. Definitions.--The following words, terms and
21 phrases when used in this Article II shall have the meaning
22 ascribed to them in this section, except where the context
1 clearly indicates a different meaning:
2 * * *
3 (g) "Purchase price."
4 (1) The total value of anything paid or delivered, or
5 promised to be paid or delivered, whether it be money or
6 otherwise, in complete performance of a sale at retail or
7 purchase at retail, as herein defined, without any deduction on
8 account of the cost or value of the property sold, cost or value
9 of transportation, cost or value of labor or service, interest
10 or discount paid or allowed after the sale is consummated, any
11 other taxes imposed by the Commonwealth of Pennsylvania or any
12 other expense except that there shall be excluded any separately
13 stated gratuity or separately stated deposit charge for
14 returnable containers.
15 * * *
16 (r) "Gratuity." Any separately stated amount paid or
17 remitted for services performed in conjunction with any sale of
18 food or beverages, or hotel or motel accommodations which amount
19 is for the entire benefit of the persons performing the services <--
20 and is in excess of the charges and the tax thereon for such
21 food, beverages or accommodations regardless of the method of
22 billing or payment.
23 Section 209. Definitions.--(a) For the purposes of this
24 part V only, the following words, terms and phrases shall have
25 the meaning ascribed to them in this subsection, except where
26 the context clearly indicates a different meaning:
27 * * *
28 (6) "Rent." The consideration received for occupancy valued
29 in money, whether received in money or otherwise, including all
30 receipts, cash, credits and property or services of any kind or
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1 nature, and also any amount for which the occupant is liable for
2 the occupancy without any deduction therefrom whatsoever. The
3 term "rent" shall not include [a] any separately stated
4 gratuity.
5 * * *
6 Section 2. This act shall take effect immediately and shall
7 apply retroactive to January 1, 1977.
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