PRINTER'S NO. 595
No. 524 Session of 2007
INTRODUCED BY HICKERNELL, BAKER, BOYD, CALTAGIRONE, COHEN,
CUTLER, DeWEESE, FABRIZIO, FLECK, FREEMAN, GEIST, GRUCELA,
HARHAI, HENNESSEY, HUTCHINSON, JAMES, KAUFFMAN, M. KELLER,
KILLION, KORTZ, MACKERETH, MANN, MARSHALL, METCALFE,
M. O'BRIEN, PETRARCA, PHILLIPS, PYLE, REICHLEY, SAINATO,
SAYLOR, STABACK, STURLA, TRUE, VULAKOVICH, WALKO, WHEATLEY,
YOUNGBLOOD, TURZAI AND SIPTROTH, MARCH 6, 2007
REFERRED TO COMMITTEE ON FINANCE, MARCH 6, 2007
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, in sales and use tax, for
11 exclusions.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 204(49) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 April 23, 1998 (P.L.239, No.45), is amended to read:
17 Section 204. Exclusions from Tax.--The tax imposed by
18 section 202 shall not be imposed upon any of the following:
19 * * *
20 (49) The sale at retail or use of food and beverages by
1 nonprofit associations which support sports programs or youth
2 centers. For purposes of this clause, the phrases:
3 (i) "nonprofit association" means an entity which is
4 organized as a nonprofit corporation or nonprofit unincorporated
5 association under the laws of this Commonwealth or the United
6 States or any entity which is authorized to do business in this
7 Commonwealth as a nonprofit corporation or unincorporated
8 association under the laws of this Commonwealth, including, but
9 not limited to, youth or athletic associations, volunteer fire,
10 ambulance, religious, charitable, fraternal, veterans, civic, or
11 any separately chartered auxiliary of the foregoing, if
12 organized and operated on a nonprofit basis;
13 (iv) "sports program" means baseball (including softball),
14 football, basketball, soccer and any other competitive sport
15 formally recognized as a sport by the United States Olympic
16 Committee as specified by and under the jurisdiction of the
17 Amateur Sports Act of 1978 (Public Law 95-606, 36 U.S.C. § 371
18 et seq.), the Amateur Athletic Union or the National Collegiate
19 Athletic Association. The term shall be limited to a program or
20 that portion of a program that is organized for recreational
21 purposes and whose activities are substantially for such
22 purposes and which is primarily for participants who are 18
23 years of age or younger or whose 19th birthday occurs during the
24 year of participation or the competitive season, whichever is
25 longer. There shall, however, be no age limitation for programs
26 operated for persons with physical handicaps or persons with
27 mental retardation;
28 (v) "support" means:
29 (A) the funds raised from sales are used to pay the expenses
30 of a sports program or a youth center; or
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1 (B) the nonprofit association sells the food and beverages
2 at a youth center or a location where a sports program is being
3 conducted under this act[.];
4 (vi) "youth center" means a fixed location used primarily
5 for programs for individuals under the age of 19 as long as the
6 programs are:
7 (A) conducted primarily by volunteers;
8 (B) designed to advance recreational, civic or moral
9 objectives; and
10 (C) conducted by an organization that is qualified under
11 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
12 Law 99-514, 26 U.S.C. § 501(c)(3)) and that has obtained an
13 exemption number from the department as a charitable
14 organization under clause (10).
15 * * *
16 Section 2. The amendment of section 204(49) of the act shall
17 apply to sales at retail or uses after December 31, 2007.
18 Section 3. This act shall take effect immediately.
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