PRINTER'S NO. 588
No. 555 Session of 1995
INTRODUCED BY CORRIGAN, JAROLIN, TRELLO AND THOMAS,
FEBRUARY 2, 1995
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 2, 1995
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 defining "tangible personal property"
11 with respect to new manufactured housing; and further
12 providing for the imposition of certain taxes thereon.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 201(m) of the act of March 4, 1971
16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
17 December 13, 1991 (P.L.373, No.40), is amended to read:
18 Section 201. Definitions.--The following words, terms and
19 phrases when used in this Article II shall have the meaning
20 ascribed to them in this section, except where the context
21 clearly indicates a different meaning:
22 * * *
1 (m) "Tangible personal property." Corporeal personal
2 property including, but not limited to, goods, wares,
3 merchandise, steam and natural and manufactured and bottled gas
4 for non-residential use, electricity for non-residential use,
5 premium cable service, spirituous or vinous liquor and malt or
6 brewed beverages and soft drinks, interstate telephone,
7 telegraph and telecommunications service originating or
8 terminating in the Commonwealth and charged to a service address
9 in this Commonwealth, intrastate telephone, telegraph and
10 telecommunications service with the exception of subscriber line
11 charges and basic local telephone service for residential use,
12 provided further, the service address of any intrastate
13 telephone, telegraph or telecommunications service is deemed to
14 be within this Commonwealth or within a political subdivision,
15 regardless of how or where billed or paid. In the case of any
16 such interstate or intrastate telephone, telegraph and
17 telecommunications service, any charge paid through a credit or
18 payment mechanism which does not relate to a service address,
19 such as a bank, travel, credit or debit card, is deemed
20 attributable to the address of origination of the telephone,
21 telegraph or telecommunications service. Manufactured housing or
22 a new mobilehome which bears a label, as required by and
23 referred to in the act of November 17, 1982 (P.L.676, No.192),
24 known as the "Manufactured Housing Construction and Safety
25 Standards Authorization Act," which certifies that it conforms
26 to Federal construction and safety standards adopted pursuant to
27 the National Manufactured Housing Construction and Safety
28 Standards Act of 1974 (Public Law 93-383, 42 U.S.C § 5401 et
29 seq.), shall be deemed to be tangible personal property only
30 when there is a transfer of the ownership, custody or possession
19950H0555B0588 - 2 -
1 of such housing for a consideration, from a manufacturer to a
2 dealer, for further transfer by that dealer to an ultimate
3 consumer or, when there is no dealer, from a manufacturer to an
4 ultimate consumer, for any use, including use as living quarters
5 or for commercial or rental purposes. Used prebuilt, sectional,
6 modular or manufactured housing or used mobilehomes shall not be
7 deemed to be tangible personal property.
8 * * *
9 Section 2. Section 202 of the act is amended by adding a
10 subsection to read:
11 Section 202. Imposition of Tax.--* * *
12 (e) Notwithstanding any other provisions of this article,
13 the tax with respect to the sale or use of new manufactured
14 housing or mobilehomes as defined in section 201(m) of this
15 article shall be imposed at the time such housing is transferred
16 from the manufacturer to a dealer or, if there is no dealer,
17 from a manufacturer to the ultimate consumer, and shall be
18 computed on the total amount billed by the manufacturer to the
19 dealer or, if there is no dealer, to the ultimate consumer. The
20 tax shall be reported and paid to the Commonwealth by the
21 manufacturer who transfers the ownership, custody or possession
22 of the housing to the dealer or to the ultimate consumer and
23 shall be collected from the dealer or, if there is no dealer,
24 from the ultimate consumer: Provided, however, That if the tax
25 is not reported and paid by the manufacturer who transfers the
26 housing, and such tax cannot be assessed against and collected
27 from the manufacturer because that manufacturer is not doing
28 business within this Commonwealth, then the dealer or, if there
29 is no dealer, the ultimate consumer shall be responsible for
30 payment of the tax.
19950H0555B0588 - 3 -
1 Section 3. Section 237(b)(1) of the act, amended December
2 28, 1972 (P.L.1633, No.340), is amended to read:
3 Section 237. Collection of Tax.--* * *
4 (b) Collection by Persons Maintaining a Place of Business in
5 the Commonwealth. (1) Every person maintaining a place of
6 business in this Commonwealth and selling or leasing tangible
7 personal property or services, [including the selling or leasing
8 as tangible personal property mobilehomes as defined in "The
9 Vehicle Code" whether or not a certificate of title is issued by
10 the department,] the sale or use of which is subject to tax
11 shall collect the tax from the purchaser or lessee at the time
12 of making the sale or lease, and shall remit the tax to the
13 department, unless such collection and remittance is otherwise
14 provided in this act.
15 * * *
16 Section 4. Section 1101-C of the act is amended by adding a
17 definition to read:
18 Section 1101-C. Definitions.--The following words when used
19 in this article shall have the meanings ascribed to them in this
20 section:
21 * * *
22 "Prebuilt housing." The term shall include a manufactured
23 housing unit or mobilehome which bears a label, as required by
24 and referred to in the act of November 17, 1982 (P.L.676,
25 No.192), known as the "Manufactured Housing Construction and
26 Safety Standards Authorization Act," which certifies that it
27 conforms to Federal construction and safety standards adopted
28 pursuant to the National Manufactured Housing Construction and
29 Safety Standards Act of 1974 (Public Law 93-383, 42 U.S.C. §
30 5401 et seq.).
19950H0555B0588 - 4 -
1 * * *
2 Section 5. The act is amended by adding a section to read:
3 Section 1102-C.1. Imposition of Tax on Prebuilt Housing.--
4 (a) Every person, including a dealer not otherwise subject to
5 tax pursuant to section 1102-C of this article, who transfers
6 the ownership, custody or possession of prebuilt housing for a
7 consideration, shall collect from the purchaser thereof a State
8 tax at the rate of two per cent of the value of the prebuilt
9 housing, which value shall be determined by the total amount
10 billed by the person transferring the ownership, custody or
11 possession. This State tax shall be collected at the time of the
12 transfer of the ownership, custody or possession of the prebuilt
13 housing and shall be payable to the department. Payment of the
14 tax imposed by this section may, but need not, be evidenced by
15 the affixing of a documentary stamp or stamps.
16 (b) Within thirty days of the receipt of the amount of the
17 tax imposed by this section, the department shall transmit one-
18 half of such amount to the recorder of deeds in the county in
19 which is located the political subdivision where the prebuilt
20 housing will be permanently attached to land or connected with
21 water, gas, electric or sewage facilities. As required by
22 section 6(c) of the act of November 1, 1971 (P.L.495, No.113),
23 entitled, as amended, "An act providing for the compensation of
24 county officers in counties of the second through eighth
25 classes, for compensation of district attorneys in cities and
26 counties of the first class, for the disposition of fees, for
27 filing of bonds in certain cases and for duties of certain
28 officers," the recorder of deeds shall be the collection agent
29 for the political subdivision levying a local realty transfer
30 tax. If the political subdivision does not levy a local realty
19950H0555B0588 - 5 -
1 transfer tax, the recorder of deeds shall deposit the amount of
2 the tax in the general fund of the county.
3 (c) Prebuilt housing to which this section applies, and
4 pursuant to which the tax provided for by this section has been
5 collected and paid, shall not be subject to local real estate
6 transfer taxes or deed transfer taxes pursuant to Article XI-D
7 of this act or to section 2(1) of the act of December 31, 1965
8 (P.L.1257, No.511), known as "The Local Tax Enabling Act."
9 Section 6. Section 1102-C.3 of the act is amended by adding
10 a clause to read:
11 Section 1102-C.3. Excluded Transactions.--The tax imposed by
12 section 1102-C shall not be imposed upon:
13 * * *
14 (23) The first sale of prebuilt housing which is not real
15 estate.
16 Section 7. This act shall apply on July 1, 1995, with
17 respect to new housing transferred from a manufacturer to a
18 dealer or, if there is no dealer, to an ultimate consumer on or
19 after that date. This act shall apply on July 1, 1995, with
20 respect to used housing transferred to an ultimate consumer on
21 or after that date. Housing transferred prior to that date shall
22 be subject to tax as provided for under existing law.
23 Section 8. This act shall take effect immediately.
A26L72JLW/19950H0555B0588 - 6 -