THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BROWNE, SCARNATI, ERICKSON, GORDNER, ORIE, WAUGH, ALLOWAY, MENSCH, BAKER, M. WHITE, GREENLEAF, WARD, PIPPY, EICHELBERGER, VOGEL, D. WHITE, EARLL, BOSCOLA, TARTAGLIONE AND WOZNIAK, MARCH 4, 2010

SENATOR BROWNE, FINANCE, AS AMENDED, JUNE 30, 2010   

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in sales and use tax, further providing for time

for filing returns and for time of payment.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 217 and 222 of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, amended

October 9, 2009 (P.L.451, No.48), are amended to read:

Section 217.  Time for Filing Returns.--(a)  Quarterly[,] and 

Monthly [and Semi-monthly] Returns:

(1)  For the year in which this article becomes effective and

in each year thereafter a return shall be filed quarterly by

every licensee on or before the twentieth day of April, July,

October and January for the three months ending the last day of

March, June, September and December.

(2)  For the year in which this article becomes effective,

and in each year thereafter, subject to subclause (2.1), a

return shall be filed monthly with respect to each month by

every licensee whose total tax reported, or in the event no

report is filed, the total tax which should have been reported,

for the third calendar quarter of the preceding year equals or

exceeds six hundred dollars ($600) and is less than twenty-five

thousand dollars ($25,000). Such returns shall be filed on or

before the twentieth day of the next succeeding month with

respect to which the return is made. Any licensee required to

file monthly returns hereunder shall be relieved from filing

quarterly returns.

(2.1)  On and after the effective date of this subclause and

before June 1, 2011, every licensee whose total tax reported or

required to be reported for the third calendar quarter of the

preceding calendar year equals or exceeds twenty-five thousand

dollars ($25,000) shall file returns as provided in subclause

(2).

(3)  After May 31, 2011, [a return shall be filed semi-

monthly with respect to each month by every licensee whose total

tax reported, or in the event no report is filed, the total tax

which should have been reported, for the third calendar quarter

of the preceding year equals or exceeds twenty-five thousand

dollars ($25,000). For the period from the first day of the

month to the fifteenth day of the month, the returns shall be

filed on or before the twenty-fifth day of the month. For the

period from the sixteenth day of the month to the last day of

the month, the returns shall be filed on or before the tenth day

of the next succeeding month with respect to which the return is

made. Any licensee required to file semi-monthly returns under

this section shall be relieved from filing monthly or quarterly

returns.] with respect to every licensee whose total tax

reported or required to be reported for the third calendar

quarter of the preceding year equals or exceeds twenty-five

thousand dollars ($25,000), the licensee shall, on or before the

twentieth day of each month, file a single return consisting of

all of the following:

(A)  An amount equal to fifty per centum of the licensee's

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total reported tax liability for the same month in the preceding

calendar year or, for licensees that were not in business during

the same month in the preceding calendar year or were in

business for only a portion of that month, fifty per centum of

the average total reported tax liability for each full month the

licensee has been in business.

(A)  (i)  Except as provided in subparagraph (ii), an amount

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equal to fifty per centum of the licensee's total reported tax

liability for the same month in the preceding calendar year if

they were a monthly filer or, if the licensee was a quarterly or

semi-annual filer, fifty per centum of the licensee's average

total reported tax liability for that tax period in the

preceding calendar year. The average tax liability shall be the

reported tax liability for the tax period divided by the number

of months in that tax period. For licensees that were not in

business during the same month in the preceding calendar year or

were in business for only a portion of that month, fifty per

centum of the average total reported tax liability for each tax

period the licensee has been in business. If the licensee is

filing a tax liability for the first time with no preceding tax

periods, the amount shall be zero.

(ii)  For the return due June 20, 2011, the percentage used

in this calculation shall be fifty-five per centum.

(iii)  The amount due under this paragraph shall be due the

same day as the preceding month's tax liability.

(B)  An amount equal to the taxes due for the preceding

month, less any amounts paid in the preceding month as required

by paragraph (A).

(C)  The department shall determine whether the amounts

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reported under paragraphs (A) and (B) shall be remitted as one

combined payment or as two separate payments.

(D)  The department may require the filing of the returns and

the payments for these types of filers by electronic means

approved by the department.

(4)  Any licensee filing returns under subclause (3) shall be

relieved of filing quarterly returns.

(5)  If a licensee required to remit payments under subclause

(3)(A) fails to make a timely payment or makes a payment which

is less than the required amount, the department may, in

addition to any applicable penalties, impose an additional

penalty equal to five per centum of the amount due under

subclause (3)(A) which was not timely paid. The penalty under

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this subclause shall be determined when the tax return is filed

for the tax period.

(b)  Annual Returns. For the calendar year 1971, and for each

year thereafter, no annual return shall be filed, except as may

be required by rules and regulations of the department

promulgated and published at least sixty days prior to the end

of the year with respect to which the returns are made. Where

such annual returns are required licensees shall not be required

to file such returns prior to the twentieth day of the year

succeeding the year with respect to which the returns are made.

(c)  Other Returns. Any person, other than a licensee, liable

to pay to the department any tax under this article, shall file

a return on or before the twentieth day of the month succeeding

the month in which such person becomes liable for the tax.

(d)  Small Taxpayers. The department, by regulation, may

waive the requirement for the filing of quarterly return in the

case of any licensee whose individual tax collections do not

exceed seventy-five dollars ($75) per calendar quarter and may

provide for reporting on a less frequent basis in such cases.

Section 222.  Time of Payment.--(a)  Monthly[, Semi-monthly] 

and Quarterly Payments. The tax imposed by this article and

incurred or collected by a licensee shall be due and payable by

the licensee on the day the return is required to be filed under

the provisions of section 217 and such payment must accompany

the return [for such preceding period].

(b)  Annual Payments. If the amount of tax due for the

preceding year as shown by the annual return of any taxpayer is

greater than the amount already paid by him in connection with

his monthly[, semi-monthly] or quarterly returns he shall send

with such annual return a remittance for the unpaid amount of

tax for the year.

(c)  Other Payments. Any person other than a licensee liable

to pay any tax under this article shall remit the tax at the

time of filing the return required by this article.

Section 2.  This act shall take effect immediately.