PRINTER'S NO. 1761
No. 1450 Session of 1983
INTRODUCED BY LAUGHLIN, TRELLO, MANDERINO, VAN HORNE, WAMBACH, ALDERETTE, SPITZ, WILSON, BOYES, D. W. SNYDER, NOYE, MORRIS, COY, LUCYK, DORR, MRKONIC, COLAFELLA, BUNT, BELFANTI, OLASZ, CLARK, MISCEVICH, REINARD, MILLER, DeLUCA, ITKIN, McCALL, LESCOVITZ, PETRARCA, MAYERNIK, MARKOSEK, COHEN, STEWART, FREEMAN, TRUMAN, McHALE, GODSHALL, MACKOWSKI, COSLETT, GLADECK, F. E. TAYLOR, E. Z. TAYLOR AND DOMBROWSKI, SEPTEMBER 20, 1983
REFERRED TO COMMITTEE ON FINANCE, SEPTEMBER 20, 1983
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," shifting the burden of proof from vendors to the 11 Department of Revenue on questions concerning the utilization 12 of exemption certificates. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 237(c) of the act of March 4, 1971 16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended 17 March 26, 1976 (P.L.60, No.26), is amended to read: 18 Section 237. Collection of Tax.--* * * 19 (c) Exemption Certificates. If the tax does not apply to the 20 sale or lease of tangible personal property or services, the
1 purchaser or lessee shall furnish to the vendor a certificate 2 indicating that the sale is not legally subject to the tax. The 3 certificate shall be in substantially such form as the 4 department may, by regulation, prescribe. Where the tangible 5 personal property or service is of a type which is never subject 6 to the tax imposed or where the sale or lease is in interstate 7 commerce, such certificate need not be furnished. Where a series 8 of transactions are not subject to tax, a purchaser or user may 9 furnish the vendor with a single exemption certificate in 10 substantially such form and valid for such period of time as the 11 department may, by regulation, prescribe. The department shall 12 provide all school districts and intermediate units with a 13 permanent tax exemption number. An exemption certificate, which 14 is complete and regular and on its face discloses a valid basis 15 of exemption if taken in good faith, shall relieve the vendor 16 from the liability imposed by this section. An exemption 17 certificate accepted by a vendor from a natural person domiciled 18 within this Commonwealth or any association, fiduciary, 19 partnership, corporation or other entity, either authorized to 20 do business within this Commonwealth or having an established 21 place of business within this Commonwealth, in the ordinary 22 course of the vendor's business, which on its face discloses a 23 valid basis of exemption consistent with the activity of the 24 purchaser and character of the property or service being 25 purchased or which is provided to the vendor by a charitable, 26 religious, educational or volunteer firemen's organization and 27 contains the organization's charitable exemption number, shall 28 be presumed to be taken in good faith and the burden of proving 29 otherwise shall be on the Department of Revenue. 30 * * * 19830H1450B1761 - 2 -
1 Section 2. This act shall take effect immediately. G20L72JAM/19830H1450B1761 - 3 -