PRIOR PRINTER'S NO. 677 PRINTER'S NO. 3489
No. 599 Session of 1985
INTRODUCED BY FLICK, TRELLO, HERMAN, LAUGHLIN, RYBAK, VROON,
HALUSKA, STEWART, GODSHALL, HAGARTY, DONATUCCI, BURD, REBER,
E. Z. TAYLOR, PETRONE, WOGAN, SEMMEL, DeLUCA, WOZNIAK,
SIRIANNI, TELEK, POTT, FREIND, FARGO, BOWSER, PRATT, TIGUE,
L. E. SMITH, NAHILL, BATTISTO, DISTLER, NOYE, AFFLERBACH,
BARLEY, PETRARCA, CAWLEY, GEIST, CIVERA, GANNON, HERSHEY,
MICOZZIE, CARN, MORRIS, LASHINGER, CIMINI, RICHARDSON AND
FOX, MARCH 18, 1985
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, MAY 27, 1986
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 providing for collection of tax on
11 vehicles AND FOR AN ADDITIONAL EXCLUSION. <--
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 SECTION 1. SECTION 204 OF THE ACT OF MARCH 4, 1971 (P.L.6, <--
15 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED BY
16 ADDING A CLAUSE TO READ:
17 SECTION 204. EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY
18 SECTION 202 SHALL NOT BE IMPOSED UPON
19 * * *
1 (46) THE SALE AT RETAIL OR USE OF TANGIBLE PERSONAL PROPERTY
2 INCLUDING ANY MOTOR VEHICLE WHICH IS PURCHASED IN A FOREIGN
3 COUNTRY BY ANY RESIDENT OF THE COMMONWEALTH WHO IS A MEMBER OF
4 THE ARMED FORCES OF THE UNITED STATES STATIONED IN A FOREIGN
5 COUNTRY OR ANY DEPENDENT OF SUCH MILITARY PERSON LIVING IN THAT
6 FOREIGN COUNTRY WHEN SUCH TANGIBLE PROPERTY, INCLUDING ANY MOTOR
7 VEHICLE, IS RETURNED TO PENNSYLVANIA AT THE END OF A TOUR OF
8 DUTY OR UPON SEPARATION FROM THE ARMED FORCES OF THE UNITED
9 STATES: PROVIDED, HOWEVER, THAT THE TANGIBLE PERSONAL PROPERTY
10 WAS PURCHASED AT LEAST SIX MONTHS PRIOR TO THE END OF A TOUR OF
11 DUTY OR SEPARATION FROM THE ARMED FORCES OF THE UNITED STATES.
12 Section 1 2. Section 205(a) of the act of March 4, 1971 <--
13 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
14 June 9, 1978 (P.L.463, No.62), is amended to read:
15 Section 205. Alternate Imposition of Tax; Credits.--(a) If
16 any person actively and principally engaged in the business of
17 selling new or used motor vehicles, trailers or semi-trailers,
18 and registered with the [department] Department of
19 Transportation in the "dealer's class," acquires a motor
20 vehicle, trailer or semi-trailer for the purpose of resale, and
21 prior to such resale, uses the motor vehicle, trailer or semi-
22 trailer for a taxable use under this act during a period not
23 exceeding one year from the date of acquisition to the date of
24 resale, such person may, upon notice to the department within
25 ten days of the commencement of such use, elect to pay a tax
26 equal to six per cent of the fair rental value of the motor
27 vehicle, trailer or semi-trailer during such use. Should such
28 motor vehicle, trailer or semi-trailer be used for a taxable use
29 after a period of one year, the taxpayer shall be liable for a
30 tax on the fair market value of such motor vehicle, trailer or
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1 semi-trailer at the time of acquisition, but shall be allowed a
2 credit equal to the tax paid pursuant to the election provided
3 for in this section. This section shall not apply to the use of
4 a vehicle as a wrecker, parts truck, delivery truck or courtesy
5 car.
6 * * *
7 Section 2 3. Section 208 of the act, amended September 9, <--
8 1971 (P.L.437, No.105), is amended to read:
9 Section 208. Licenses.--(a) Every person maintaining a
10 place of business in this Commonwealth, selling or leasing
11 services or tangible personal property, the sale or use of which
12 is subject to tax and who has not hitherto obtained a license
13 from the department shall prior to the beginning of business or
14 the collection of tax thereafter, make application to the
15 department, on a form prescribed by the department, for a
16 license. If such person maintains more than one place of
17 business in this Commonwealth, the license shall be issued for
18 the principal place of business in this Commonwealth.
19 (b) The department shall, after the receipt of an
20 application, issue the license applied for under subsection (a)
21 of this section. The license shall be nonassignable and of
22 permanent duration.
23 (c) Any person who, upon the expiration of sixty days after
24 the effective date of this article, shall maintain a place of
25 business in this Commonwealth for the purpose of selling or
26 leasing services or tangible personal property, the sale or use
27 of which is subject to tax, or who shall collect tax under color
28 of this section, without having first been licensed by the
29 department, shall be guilty of a summary offense, and upon
30 conviction thereof in a summary proceeding, shall be sentenced
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1 to pay a fine of not less than one hundred dollars ($100) nor
2 more than three hundred dollars ($300), and in default thereof,
3 to undergo imprisonment of not less than five days nor more than
4 thirty days. The penalties imposed by this section shall be in
5 addition to any other penalties imposed by this article.
6 (d) Failure of any person to obtain a license shall not
7 relieve him of liability to pay the tax imposed by this article.
8 Section 3 4. Section 227 of the act is amended to read: <--
9 Section 227. Discount.--[If] Except with respect to taxes
10 collected under color of section 238(b), if a return is filed by
11 a licensee and the tax shown to be due thereon less any discount
12 is paid all within the time prescribed, the licensee shall be
13 entitled to credit and apply against the tax payable by him a
14 discount of one per cent of the amount of the tax collected by
15 him on and after the effective date of this article, as
16 compensation for the expense of collecting and remitting the
17 same and as a consideration of the prompt payment thereof.
18 Section 4 5. Sections 237(b)(1) and 238 of the act, amended <--
19 December 28, 1972 (P.L.1633, No.340), are amended to read:
20 Section 237. Collection of Tax.--* * *
21 (b) Collection by Persons Maintaining a Place of Business in
22 the Commonwealth. (1) Every person maintaining a place of
23 business in this Commonwealth and selling or leasing tangible
24 personal property or services, including the selling or leasing
25 as tangible personal property mobilehomes as defined in ["The
26 Vehicle Code"] the act of July 25, 1977 (P.L.95, No.35), known
27 as the "Mobile Home Titling Act," whether or not a certificate
28 of title is issued by the [department] Department of
29 Transportation, the sale or use of which is subject to tax shall
30 collect the tax from the purchaser or lessee at the time of
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1 making the sale or lease, and shall remit the tax to the
2 department.
3 * * *
4 Section 238. Collection of Tax on [Motor] Vehicles[,
5 Trailers and Semi-Trailers].--
6 [Notwithstanding the provisions of clause (1) of subsection
7 (b) of section 237 of this article, tax due on the sale at
8 retail or use of a motor vehicle, trailer or semi-trailer,
9 except mobilehomes as defined in "The Vehicle Code," required by
10 law to be registered with the department under the provisions of
11 "The Vehicle Code" shall be paid by the purchaser or user
12 directly to the department upon application to the department
13 for an issuance of a certificate of title upon such motor
14 vehicle, trailer or semi-trailer. The department shall not issue
15 a certificate of title until the tax has been paid, or evidence
16 satisfactory to the department has been given to establish that
17 tax is not due. The department may cancel or suspend any record
18 of certificate of title or registration of a motor vehicle,
19 trailer or semi-trailer when the check received in payment of
20 the tax on such vehicle is not paid upon demand. Such tax shall
21 be considered as a first encumbrance against such vehicle and
22 the vehicle may not be transferred without first payment in full
23 of such tax and any interest additions or penalties which shall
24 accrue thereon in accordance with this article.]
25 (a) Payment directly to the Commonwealth. Notwithstanding
26 the provisions of clause (1) of subsection (b) of section 237 of
27 this article, and except as provided in subsection (b) of this
28 section, tax due on the sale at retail or use of a vehicle
29 required by law to be titled by the Department of Transportation
30 under the provisions of Title 75 of the Pennsylvania
19850H0599B3489 - 5 -
1 Consolidated Statutes (relating to vehicles) or by the act of
2 July 25, 1977 (P.L.95, No.35), known as the "Mobile Home Titling
3 Act," shall be paid by the purchaser or user within ten days of
4 the date of purchase or taxable use directly to the Commonwealth
5 upon application to the Department of Transportation for an
6 issuance of a certificate of title upon such vehicle. The
7 Department of Transportation shall not issue a certificate of
8 title until the tax has been paid or evidence satisfactory to
9 the Commonwealth has been given to establish that tax is not
10 due. Unpaid tax shall be a first encumbrance against such
11 vehicle and the vehicle may not be transferred without first
12 payment in full of the tax, interest, additions and penalties
13 which shall accrue thereon in accordance with this article.
14 (b) Collection by dealers and other authorized persons. (1)
15 A manufacturer or dealer licensed by the State Board of Motor
16 Vehicle Manufacturers, Dealers and Salespersons of the
17 Department of State under the act of December 22, 1983 (P.L.306,
18 No.84), known as the "Board of Vehicles Act," or a manufacturer
19 or dealer, not regulated under the "Board of Vehicles Act,"
20 because of the type of vehicles manufactured or sold, which the
21 Department of Transportation certifies as meeting the
22 requirements of its regulations pertaining to special
23 registration plates for manufacturers and dealers, or a sales
24 finance company or bank licensed under the provisions of the act
25 of June 28, 1947 (P.L.1110, No.476), known as the "Motor Vehicle
26 Sales Finance Act," or a full agent designated by the Department
27 of Transportation under 67 Pa. Code, Chapter 43, or a messenger
28 service authorized by the Department of Transportation under 67
29 Pa. Code, Chapter 253, is hereby authorized, subject to the
30 provisions of this section and the rules and regulations
19850H0599B3489 - 6 -
1 promulgated thereunder, to collect on behalf of the Commonwealth
2 tax and fees due and payable upon the sale or use and transfer
3 of any new or used vehicle.
4 (2) Each such collection of tax and fees shall be evidenced
5 by the issuance to the taxpayer of a true copy of the tax report
6 relating to the transaction. Production by the taxpayer of such
7 report or other credible evidence of payment to such a tax
8 collector shall be presumptive evidence of the time and amount
9 of the payment, rebuttable, inter alia, by evidence that the
10 taxpayer's check to the collector was returned as uncollectible.
11 (3) Each such collection of tax and fees shall be remitted
12 by the collector to the Commonwealth within ten days of the date
13 of purchase if the collector is the seller, and in all other
14 cases, within ten days of the date of collection from the
15 taxpayer, together with the tax report and such other reports or
16 documents as the Commonwealth may prescribe.
17 (4) A collector under this subsection shall be entitled to
18 assert a lien against any vehicle for any tax or fees pertaining
19 to the vehicle if a check in payment for such tax or fees is
20 returned to the collector as uncollectible.
21 (5) A collector who collects, reports and remits sales tax
22 at the time and in the manner authorized and required by this
23 subsection shall be entitled to a commission of one-half of one <--
24 per cent of the amount of tax so collected as compensation for
25 the expense of collecting, reporting and remitting the same.
26 Section 5 6. Sections 268(b) and 271(b) of the act are <--
27 amended to read:
28 Section 268. Crimes.--* * *
29 (b) Other Crimes. Except as otherwise provided by subsection
30 (a) of this section, any person maintaining a place of business
19850H0599B3489 - 7 -
1 in this Commonwealth, who advertises or holds out or states to
2 the public or to any purchaser or user, directly or indirectly,
3 that the tax or any part thereof imposed by this article will be
4 absorbed by such person, or that it will not be added to the
5 purchase price of the tangible personal property or services
6 described in subclauses (2), (3) and (4) of clause (k) of
7 section 201 of this article sold or, if added, that the tax or
8 any part thereof will be refunded, other than when such person
9 refunds the purchase price because of such property being
10 returned to the vendor, and any person maintaining a place of
11 business in this Commonwealth and selling or leasing tangible
12 personal property or said services the sale or use of which by
13 the purchaser is subject to tax hereunder, who shall wilfully
14 fail or refuse to collect the tax from the purchaser and remit
15 the same to the department, and any person who shall wilfully
16 fail, neglect or refuse to file any return or report required by
17 this article or any taxpayer who shall refuse to pay any tax,
18 penalty or interest imposed or provided for by this article, or
19 who shall wilfully fail to preserve his books, papers and
20 records as directed by the department, or any person who shall
21 refuse to permit the department or any of its authorized agents
22 to examine his books, records or papers, or who shall knowingly
23 make any incomplete, false or fraudulent return or report, or
24 who shall do, or attempt to do, anything whatever to prevent the
25 full disclosure of the amount or character of taxable sales
26 purchases or use made by himself or any other person, or shall
27 provide any person with a false statement as to the payment of
28 tax with respect to particular tangible personal property or
29 said services, or shall make, utter or issue a false or
30 fraudulent exemption certificate, or shall falsely represent
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1 himself as a collector of tax and fees on vehicles, or shall
2 issue a false or fraudulent receipt or tax report for tax or
3 fees collected, or shall fail to provide a true copy of the tax
4 report to the purchaser, or shall fail to remit at the time and
5 in the manner provided by law, any tax or fees collected by him,
6 shall be guilty of a misdemeanor, and, upon conviction thereof,
7 shall be sentenced to pay a fine not exceeding one thousand
8 dollars ($1000) and costs of prosecution, or undergo
9 imprisonment not exceeding one year, or both: Provided, however,
10 That any person maintaining a place of business outside this
11 Commonwealth may absorb the tax with respect to taxable sales
12 made in the normal course of business to customers present at
13 such place of business without being subject to the above
14 penalty and fines. The penalties imposed by this section shall
15 be in addition to any other penalties imposed by any provision
16 of this article.
17 Section 271. Keeping of Records.--* * *
18 (b) Persons Collecting Tax from Others. Any person [liable]
19 authorized or required to collect tax from another person under
20 the provisions of this article shall file reports, keep records,
21 make payments and be subject to interest and penalties as
22 provided for under this article, in the same manner as if he
23 were directly subject to the tax.
24 * * *
25 Section 6 7. This act shall take effect January 1, 1986. <--
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