PRIOR PRINTER'S NOS. 1164, 2133, 3330, PRINTER'S NO. 3998 3584, 3611, 3803
No. 1080 Session of 1993
INTRODUCED BY MARKOSEK, KUKOVICH, DURHAM, MERRY, FAJT, SCHEETZ, TRELLO, NAILOR, CLARK, CORRIGAN, MIHALICH, PRESTON, GEIST, VEON, STURLA, DERMODY AND CIVERA, MARCH 29, 1993
AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES, JUNE 20, 1994
AN ACT 1 Amending the act of May 21, 1931 (P.L.149, No.105), entitled, as 2 amended, "An act imposing a State tax, payable by those 3 herein defined as distributors, on liquid fuels used or sold 4 and delivered within the Commonwealth, which are practically, 5 and commercially suitable for use in internal combustion 6 engines for the generation of power; providing for the 7 collection and lien of the tax, and the distribution and use 8 of the proceeds thereof; requiring such distributors to 9 secure permits, to file corporate surety bonds and reports, 10 and to retain certain records; imposing duties on retail 11 dealers, common carriers, county commissioners, and such 12 distributors; providing for rewards; imposing certain costs 13 on counties; conferring powers and imposing duties on certain 14 State officers and departments; providing for refunds; 15 imposing penalties; and making an appropriation," further 16 providing for the use of liquid fuels tax revenues and for 17 the calculation and utilization of liquid fuels tax money 18 collected from fuels used in off-highway recreational 19 vehicles; and making editorial changes. 20 The General Assembly of the Commonwealth of Pennsylvania 21 hereby enacts as follows: 22 Section 1. Section 10(a) of the act of May 21, 1931 23 (P.L.149, No.105), known as The Liquid Fuels Tax Act, amended 24 July 30, 1975 (P.L.124, No.61), is amended to read:
1 Section 10. Disposition and Use of Tax.--(a) One-half cent 2 per gallon of the permanent tax collected under the provisions 3 of this act shall be paid into the Liquid Fuels Tax Fund of the 4 State Treasury; and such moneys, paid into said fund, are hereby 5 specifically appropriated for the purposes hereinafter set 6 forth. 7 The moneys so paid into the Liquid Fuels Tax Fund, except 8 those that are refunded as hereinafter provided, shall be paid 9 to the respective counties of this Commonwealth, less such 10 amounts as represent the difference between the annual fees 11 prescribed in sections 709 and 710 of "The Vehicle Code" and 12 those fees charged pursuant to section 710.1 of "The Vehicle 13 Code" for annual registration of each motor vehicle operated by 14 mass transportation systems, on the first day of June and 15 December of each year, in the ratio that average return made 16 during the three (3) preceding years to each county bears to the 17 average amount returned to all counties for the three preceding 18 years: Provided, That the distribution of tax to the counties 19 from the Liquid Fuels Tax Fund that is payable the first day of 20 August, one thousand nine hundred and thirty-one, shall be made 21 under the provisions of the acts of Assembly repealed by this 22 act. Such amounts as represent the difference between the annual 23 fees prescribed in sections 709 and 710 of "The Vehicle Code" 24 and those fees charged pursuant to section 710.1 of "The Vehicle 25 Code" shall be paid into the Motor License Fund. 26 All moneys received by the counties hereunder shall be 27 deposited and maintained in a special fund designated as the 28 "County Liquid Fuels Tax Fund" into which no other moneys shall 29 be deposited and commingled, except in any county which does not 30 have sufficient money in such special fund to provide for 19930H1080B3998 - 2 -
1 payments designated in the current annual budget for payment 2 from such special fund for the purposes of construction, 3 reconstruction, maintenance and repair of roads, highways [and], 4 bridges and curb ramps from a road or highway to provide for 5 access by individuals with disabilities consistent with Federal 6 and State law, property damages, compensation of viewers for 7 services in eminent domain proceedings involving roads, highways 8 and bridges, and for the construction, reconstruction, operation 9 and maintenance of publicly owned ferryboat operations, interest 10 and principal payments on road, bridge or publicly owned 11 ferryboat operation bonds, or sinking fund charges for such 12 bonds becoming due within the current calendar year and for the 13 acquisition, maintenance, repair and operation of traffic signs 14 and traffic signals, and for the erection and maintenance of 15 stop and go signal lights, blinkers or other like traffic 16 control devices[.]: Provided, That payments may be made from the 17 fund for purposes of indirect costs including benefit costs, 18 overhead and other administrative charges for those county 19 employes directly engaged in eligible projects and for purposes 20 of vehicle liability insurance for equipment purchased under the 21 fund: And provided further, That indirect costs shall not exceed 22 ten per centum of the yearly allocation to the county. The 23 county, for the purpose of such payments and such payments only, 24 may borrow and place in such special fund moneys, not in excess 25 of the liquid fuels tax funds to be received during the current 26 calendar year, and all such loans shall be repaid from such 27 special fund before the expiration of the current calendar year 28 and not thereafter. Moneys so received and deposited shall be 29 used only for the purpose of construction, reconstruction, 30 maintenance, and repair of roads, highways [and], bridges and 19930H1080B3998 - 3 -
1 curb ramps from a road or highway to provide for access by 2 individuals with disabilities consistent with Federal and State 3 law, including the payment of property damage and compensation 4 of viewers for services in eminent domain proceedings involving 5 such roads, highways and bridges, now due or hereafter to become 6 due, occasioned by or the relocation or construction of highways 7 and bridges, and for the construction, reconstruction, operation 8 and maintenance of publicly owned ferryboat operations, and for 9 the payment of interest and sinking fund charges on bonds issued 10 or used for highways and bridge purposes and publicly owned 11 ferryboat operations, or on so much of any bonds as have been 12 used for such purposes and for the acquisition, maintenance, 13 repair and operation of traffic signs and traffic signals and 14 all payments made by any county, either directly or indirectly, 15 prior to the first day of January, one thousand nine hundred and 16 forty-six, for any or all such purposes are hereby validated: 17 Provided, That no expenditures from the county liquid fuels tax 18 fund shall be made by the county commissioners for new 19 construction on roads, bridges, curb ramps or publicly owned 20 ferryboat operations without first having obtained the approval 21 of the plans for such construction from the Department of 22 Transportation: And provided further, That the county 23 commissioners shall not allocate moneys from the county liquid 24 fuels tax fund to any political subdivision within the county, 25 until the application and the contracts or plans for the 26 proposed expenditures have been made on forms, prescribed, 27 prepared and furnished, and first approved by the Department of 28 Transportation. The county commissioners of each county shall 29 make to the Department of Transportation, on or before the 30 fifteenth day of January for the period ending December thirty- 19930H1080B3998 - 4 -
1 first of each year, on forms prescribed, prepared, and furnished 2 by the Department of Transportation, a report showing the 3 receipts and expenditures of such moneys received by the county, 4 from the Commonwealth under the provisions of this section. 5 Copies of such report shall be transmitted to the department and 6 to the Department of the Auditor General for audit. Upon the 7 failure of the county commissioners to file such report, or to 8 make any payments, allocations or expenditures, in compliance 9 with the provisions of this section, the department shall 10 withhold further payments to the county out of the Liquid Fuels 11 Tax Fund until the delinquent report is filed, transmitted, or 12 said moneys allocated, or said expenditures for the prior twelve 13 months are approved by the Department of Transportation. 14 * * * 15 Section 2. Section 17 of the act, amended March 12, 1957 16 (P.L.8, No.3), July 15, 1969 (P.L.161, No.65) and December 19, 17 1975 (P.L.556, No.156), is amended to read: 18 Section 17. Refunds.--(a) The Board of Finance and Revenue 19 may refund to distributors taxes, penalties, and interest paid 20 by them on liquid fuels delivered to the United States 21 government, or paid as the result of an error of law or of fact 22 or of both law and fact. Claims for such refunds shall be made 23 under the procedure prescribed by The Fiscal Code. 24 (b) Any person who shall use or buy liquid fuels on which 25 the tax imposed by this act shall have been paid and shall 26 consume the same (i) in the operation of any nonlicensed farm 27 tractor or licensed farm tractor when used off the highways for 28 agricultural purposes or nonlicensed powered farm machinery for 29 purposes relating to the actual production of farm products or 30 (ii) in the operation of a vehicle of a volunteer fire company, 19930H1080B3998 - 5 -
1 volunteer ambulance service or volunteer rescue squad shall be 2 reimbursed the full amount of such tax. 3 (c) (1) When the tax imposed by this act shall have been 4 paid and the fuel on which such tax has been imposed shall have 5 been consumed in the operation of motorboats or watercraft upon 6 the waters of the Commonwealth, including waterways bordering on 7 the Commonwealth, the full amount of such tax shall be refunded 8 to the [Boating Fund of the Fish Commission] Boat Fund of the 9 Pennsylvania Fish and Boat Commission on petition to the Board 10 of Finance and Revenue in accordance with prescribed procedures. 11 (2) In accordance with such procedures, the Pennsylvania 12 Fish and Boat Commission shall biannually calculate the amount 13 of liquid fuels tax consumed by said motorcraft and furnish such 14 information relating to its calculations and data as may be 15 prescribed or required by the Board of Finance and Revenue. This 16 board shall review the petition and motorboat fuel consumption 17 calculations of the Pennsylvania Fish and Boat Commission and 18 then determine the amount of liquid fuels tax paid on liquid 19 fuels consumed in the propulsion of motorboats and other 20 motorcraft on the waters of the Commonwealth, including 21 waterways bordering on the Commonwealth, and shall certify to 22 the State Treasurer to refund annually to the [Boating Fund of 23 the Fish Commission] Boat Fund of the Pennsylvania Fish and Boat 24 Commission the amount so determined. The Department of 25 [Highways] Transportation shall be accorded the right to appear 26 at such proceedings and make its views known. 27 (3) Said moneys shall be used by the Pennsylvania Fish and 28 Boat Commission acting by itself or by agreement with other 29 State and Federal agencies including, but not limited to, the 30 Navigation Commission for the Delaware River, the Department of 19930H1080B3998 - 6 -
1 [Forests and Waters] Environmental Resources, the Department of 2 Health, and the Federal Bureau of Outdoor Recreation, only for 3 the improvement of the waters of Pennsylvania on which 4 motorboats are permitted to operate and may be used, including 5 but not limited to the development and construction of motorboat 6 areas; the dredging and clearing of water areas where motorboats 7 can be used; the placement and replacement of navigational aids; 8 the purchase, development and maintenance of public access sites 9 and facilities to and on waters where motorboating is permitted; 10 the patrolling of motorboating waters; the publishing of 11 nautical charts in those areas of Pennsylvania not covered by 12 nautical charts published by the United States Coast and 13 Geodetic Survey or the United States Army Engineers; and the 14 administrative expenses arising out of such activities. 15 (d) (1) When the tax imposed by this act shall have been 16 paid on fuel used in off-highway recreational vehicles within 17 the Commonwealth, an amount equal to the revenue generated by 18 the tax, but not derived therefrom, may be appropriated through 19 the General Fund to the Department of Environmental Resources. 20 It is the express intent of this act that all proceeds from the 21 tax paid on fuel used in off-highway recreational vehicles 22 within this Commonwealth be paid without diminution of the Motor 23 License Fund. 24 (2) The Department of Environmental Resources shall 25 biennially calculate the amount of liquid fuel consumed by off- 26 highway recreational vehicles and furnish such information 27 relating to its calculations and data as may be required by the 28 Appropriations Committee of the Senate and the Appropriations 29 Committee of the House of Representatives. 30 (3) The General Assembly shall review the fuel consumption 19930H1080B3998 - 7 -
1 calculations of the Department of Transportation ENVIRONMENTAL <-- 2 RESOURCES to determine the amount of liquid fuels tax paid on 3 liquid fuels consumed in the propulsion of off-highway 4 recreational vehicles in the Commonwealth and may annually 5 appropriate to the Department of Environmental Resources the 6 amount so determined. 7 (4) Said moneys shall be used for the benefit of motorized 8 and nonmotorized recreational trails by the Department of 9 Environmental Resources as provided in the Intermodal Surface 10 Transportation Efficiency Act of 1991 (Public Law 102-240, 105 11 Stat. 1914). 12 (e) Any person who shall use or buy any liquid fuel on which 13 a tax imposed by this act in excess of one and one-half cents a 14 gallon shall have been paid and shall use such liquid fuel in 15 propeller-driven aircraft or aircraft engines, or who shall use 16 or buy any liquid fuel on which a tax imposed by this act in 17 excess of one and one-half cents per gallon shall have been paid 18 and shall use such liquid fuel in jet or turbo-jet propelled 19 aircraft or aircraft engines, shall be reimbursed in the amount 20 of such excess. 21 (f) All such claims for reimbursement shall be made upon a 22 form to be furnished by the Board of Finance and Revenue and 23 shall include, in addition to such other information as the 24 board may by regulation prescribe, the name and address of the 25 claimant, the period of time and the number of gallons of liquid 26 fuels used for which reimbursement is claimed, a description of 27 the farm machinery, aircraft or aircraft engine in which such 28 liquid fuels have been used and the purposes for which such 29 machinery, aircraft or aircraft engine has been used, the size 30 of the farm and part thereof in cultivation on which such liquid 19930H1080B3998 - 8 -
1 fuels have been used. Each such claim shall contain statements 2 that the liquid fuels for which reimbursement is claimed have 3 been used only for purposes for which reimbursements are 4 permitted, that records of the amounts of such fuels used in 5 each piece of farm machinery, aircraft or aircraft engine have 6 been kept, and that no part of such claim has been paid except 7 as stated. Each such claim shall contain a declaration that it 8 and accompanying receipts are true and correct to the best of 9 claimant's knowledge and shall be signed by the claimant or the 10 person claiming on his behalf. Every claim shall be accompanied 11 by receipts indicating that the liquid fuels or excess liquid 12 fuels tax was paid on the liquid fuels for which reimbursement 13 is claimed. All records of purchases of liquid fuels and use in 14 each tractor or powered machinery, aircraft or aircraft engine 15 shall be kept for a period of two years. Every such claim shall 16 be made annually for the preceding year ending on the thirtieth 17 day of June and shall be submitted to the Board of Finance and 18 Revenue not later than the thirtieth day of September of each 19 year and the board shall refuse to consider any claim received 20 or postmarked later than such date. The claimant shall satisfy 21 the board that he has paid the tax and that the liquid fuels 22 have been consumed by him for purposes for which reimbursements 23 are permitted under this section. The board may require any 24 claimant to furnish such further information, proof, or fuller 25 explanation as it shall deem necessary. The action of the Board 26 of Finance and Revenue in granting or refusing reimbursement 27 shall be final. The board shall deduct the sum of one dollar and 28 fifty cents ($1.50), which shall be considered as a filing fee, 29 from every claim for reimbursement granted. Such filing fees are 30 hereby specifically appropriated to the Board of Finance and 19930H1080B3998 - 9 -
1 Revenue and to the Department of Revenue for expenses of any 2 nature whatsoever incurred in the administration of the 3 reimbursement provisions of this act. The Board of Finance and 4 Revenue shall have the power to refer to the Department of 5 Revenue, for investigation, any claim for reimbursement filed 6 under the provisions of this act and it shall be the duty of the 7 Department of Revenue to investigate such application and report 8 to the Board of Finance and Revenue relative thereto. Any person 9 making any false or fraudulent statement for the purpose of 10 obtaining reimbursement shall be guilty of a misdemeanor, and, 11 upon conviction thereof, shall be sentenced to pay a fine of not 12 more than one thousand dollars ($1000) or to undergo 13 imprisonment for not more than six (6) months, or both. 14 (g) All refunds and reimbursements of moneys allowed 15 hereunder shall be paid from the Motor License Fund and the 16 Liquid Fuels Tax Fund in amounts equal to the original 17 distribution and payment of such moneys into said funds: 18 Provided, That reimbursement for taxes paid on liquid fuels 19 consumed in the operation of tractors and powered machinery for 20 purposes relating to the actual production of farm products and 21 reimbursement for taxes paid on liquid fuels used in aircraft or 22 aircraft engines shall be paid out of the Motor License Fund. 23 (h) As much of the moneys, from time to time, in the Motor 24 License Fund and the Liquid Fuels Tax Fund, as may be necessary, 25 is hereby appropriated to the Board of Finance and Revenue for 26 the purpose of making refunds and reimbursements as herein 27 authorized. Estimates of the amounts to be expended from these 28 funds for refunds and reimbursements, from time to time, by the 29 board shall be submitted to the Governor for his approval or 30 disapproval as in the case of other appropriations to 19930H1080B3998 - 10 -
1 administrative departments, boards and commissions; and it shall 2 be unlawful [for the Auditor General] to honor any requisition 3 of the Board of Finance and Revenue for the expenditure of 4 moneys hereunder in excess of the estimates approved by the 5 Governor. 6 (i) The provisions of this section relating to reimbursement 7 of taxes paid on liquid fuels consumed in the operation of 8 tractors and powered machines for purposes relating to the 9 actual production of farm products shall apply only to liquid 10 fuels purchased on and after the first day of July, one thousand 11 nine hundred fifty-five. 12 (j) The [Pennsylvania Aeronautics Commission] Department of 13 Transportation is authorized to make allocations of taxes 14 collected under this act to airports in proportion to the 15 average of their allocations received from the [Pennsylvania 16 Aeronautics Commission] Department of Transportation during the 17 period for which they have received such allocations not to 18 exceed five years or, in the case of airports having no such 19 allocation experience, in equal proportion with other airports 20 based upon comparative collections under this tax. In no case 21 shall the amount apportioned to the airport be less than the 22 highest amount apportioned in any one of the previous five 23 years. 24 Section 3. This act shall take effect as follows: 25 (1) The amendment of section 17 of the act shall take 26 effect July 1, 1994. 27 (2) The remainder of this act shall take effect 28 immediately. A27L72RZ/19930H1080B3998 - 11 -