PRINTER'S NO. 796
No. 747 Session of 1981
INTRODUCED BY A. K. HUTCHINSON, MARCH 9, 1981
REFERRED TO COMMITTEE ON FINANCE, MARCH 9, 1981
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," establishing a partial exemption from sales tax
11 on certain motor vehicles.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 204, act of March 4, 1971 (P.L.6, No.2),
15 known as the "Tax Reform Code of 1971," is amended by adding a
16 clause to read:
17 Section 204. Exclusions from Tax.--The tax imposed by
18 section 202 shall not be imposed upon
19 * * *
20 (41) (1) One-half of the purchase price of qualified new
21 passenger automobiles sold in Pennsylvania within sixty days
22 after the effective date of this amendatory act.
1 (2) For the purpose of this clause, the following words and
2 phrases shall have the meaning given to them in this subclause,
3 unless the context clearly indicates a different meaning:
4 "Average fuel economy." The average fuel economy as reported
5 in the technical paper "Passenger Car and Light Truck Fuel
6 Economy Trends through 1980" presented to the Society of
7 Automotive Engineers, Inc. in June 1980.
8 "Qualified manufacturer." Any passenger automobile
9 manufacturer if the average fuel economy for passenger
10 automobiles manufactured by such manufacturer in model year 1979
11 equals or exceeds one hundred twenty per cent of the average
12 fuel economy for passenger automobiles manufactured by such
13 manufacturer for model year 1974 as determined by the Secretary
14 of Revenue.
15 "Qualified new passenger automobile." A new passenger
16 automobile for which the manufacturer offers the purchaser a
17 rebate in an amount equal to and not less than the amount of the
18 tax exempted pursuant to this section on the purchased passenger
19 automobile and for which the manufacturer has not increased,
20 after the effective date of this act, the manufacturer's list
21 price. For the purposes of this section, "qualified new
22 passenger automobile" means and includes passenger automobiles,
23 vans and pick-up trucks used on the public streets and highways
24 for the purpose of transporting persons but does not include
25 trucks other than pick-up trucks, recreational vehicles, buses
26 and other vehicles which in the determination of the Secretary
27 of Revenue are not commonly known as passenger automobiles. The
28 Bureau of Motor Vehicles, in reporting to the Secretary of
29 Revenue on the form prescribed for such purpose, shall
30 separately report the sales made with the tax reduction
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1 authorized by this section and those sales made without the
2 reduction.
3 (3) The Bureau of Motor Vehicles in the Department of
4 Transportation, in reporting to the Department of Revenue on the
5 form prescribed for such purpose, shall separately report the
6 sales made with the tax reduction or exclusion authorized by
7 this clause and those sales made without the reduction or
8 exclusion.
9 (4) Vendors with sales under the provisions of this section
10 shall report to the Department of Revenue all sales and gross
11 proceeds made under the provisions of this section, including
12 the amounts of tax exemptions, and the vendor shall show the
13 number and description by model type of the purchased passenger
14 automobiles which were sold and to which this section was
15 applied and the amount of gross proceeds that are exempt and the
16 amount of taxes exempt for such purchased passenger automobiles.
17 Such report shall be on the form prescribed by the Department of
18 Revenue for such purpose and handled in the manner set forth in
19 the instructions on such form. The Department of Revenue shall
20 compile the information submitted by vendors and transmit it
21 within thirty days of receipt to the Legislative Budget and
22 Finance Committee which shall evaluate the economic impact of
23 the provisions of this section and report to the General
24 Assembly on the economic impact of this section.
25 Section 2. This act shall take effect immediately.
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