PRINTER'S NO. 1169
No. 1027 Session of 1989
INTRODUCED BY VROON, BUNT, NAHILL, GEIST, DIETTERICK, SAURMAN,
McVERRY, DORR, WOGAN, CARLSON, ANGSTADT, HERMAN, JOHNSON,
FLICK, HERSHEY, SEMMEL, HECKLER, CORNELL, E. Z. TAYLOR,
FARGO, NOYE, BURD, LETTERMAN, OLASZ, MERRY AND LANGTRY,
APRIL 5, 1989
REFERRED TO COMMITTEE ON FINANCE, APRIL 5, 1989
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," providing for an increase in the discount rate
11 for collecting sales tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Sections 227 and 247 of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, are amended
16 to read:
17 Section 227. Discount.--If a return is filed by a licensee
18 and the tax shown to be due thereon less any discount is paid
19 all within the time prescribed, the licensee shall be entitled
20 to credit and apply against the tax payable by him a discount of
21 [one] two per cent of the amount of the tax collected by him on
1 and after the effective date of this article, as compensation
2 for the expense of collecting and remitting the same and as a
3 consideration of the prompt payment thereof.
4 Section 247. Prepayment of Tax.--[Whenever a] If any sale
5 subject to tax pursuant to this article is wholly or partly on
6 credit or if the vendor is forbidden by law or governmental
7 regulation to charge and collect the purchase price in advance
8 of or at the time of delivery, the vendor shall prepay the tax
9 as required by section 222 of this article, but in [such] either
10 case if [the purchaser shall fail to pay to the vendor the total
11 amount of the purchase price and the tax, and such amount is
12 written off as uncollectible by the vendor, the vendor shall not
13 be liable for such tax and shall be entitled to a credit or
14 refund of such tax paid.] any portion of the purchase price of a
15 sale subject to tax pursuant to this article is written off as
16 uncollectible, the vendor shall be entitled, within three years
17 of the date the amount was written off, to a credit which may be
18 claimed on the vendor's regular returns or a refund which may be
19 filed pursuant to section 252 (other than the provision of
20 section 253 relating to the time for filing the petition) of
21 this article, in an amount equal to the tax previously paid and
22 remitted to the Commonwealth on that portion of the purchase
23 price written off. If the purchase price is thereafter
24 collected, in whole or in part, the tax attributable to the
25 amount collected shall be [first applied to the payment of the
26 entire tax portion of the bill, and shall be] remitted to the
27 department by the vendor with the first return filed after such
28 collection. [For any tax prepaid prior to the effective date of
29 this article, credit may be claimed on any returns filed for the
30 periods prior to the effective date of this article. Tax prepaid
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1 after the effective date of this article shall be subject to
2 refund upon petition to the department under the provisions of
3 section 252 of this article, filed within one hundred five days
4 of the close of the fiscal year in which such accounts are
5 written off.]
6 Section 2. This act shall take effect January 1, 1990.
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