THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY PICCOLA, ARGALL, RAFFERTY, WAUGH, ALLOWAY AND FERLO, JUNE 3, 2011

REFERRED TO FINANCE, JUNE 3, 2011  

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

definitions and for exclusions from tax.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 201(k)(4), (m) and (o)(4) and (8) of the

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code

of 1971, amended May 7, 1997 (P.L.85, No.7), April 23, 1998

(P.L.239, No.45) and May 24, 2000 (P.L.106, No.23), are amended

and subsection (k) is amended by adding a clause to read:

Section 201.  Definitions.--The following words, terms and

phrases when used in this Article II shall have the meaning

ascribed to them in this section, except where the context

clearly indicates a different meaning:

* * *

(k)  "Sale at retail."

* * *

(4)  The rendition for a consideration of the service of

repairing, altering, mending, pressing, fitting, dyeing,

laundering, drycleaning or cleaning tangible personal property

[other than] including, but not limited to, wearing apparel or

shoes, or applying or installing tangible personal property as a

repair or replacement part of other tangible personal property

[except] including, but not limited to, wearing apparel or shoes

for a consideration, whether or not the services are performed

directly or by any means other than by coin-operated self-

service laundry equipment for wearing apparel or household goods

and whether or not any tangible personal property is transferred

in conjunction therewith.[, except such services as are rendered

in the construction, reconstruction, remodeling, repair or

maintenance of real estate: Provided, however, That this

subclause shall not be deemed to impose tax upon such services

in the preparation for sale of new items which are excluded from

the tax under clause (26) of section 204, or upon diaper

service.]

* * *

(20)  (i)  The rendition for a consideration of any service,

other than a medical service, when the primary objective of the

purchaser is the receipt of any benefit of the service

performed, as distinguished from the receipt of property. In

determining what is a service, the intended use or stated

objective of the contracting parties shall not necessarily be

controlling. "Medical service" means any service obtained at or

through a health care facility as defined in section 103 of the

act of July 19, 1979 (P.L.130, No.48), known as the "Health Care

Facilities Act."

(ii)  Any service performed in this Commonwealth shall be

subject to the tax imposed under this article unless

specifically exempted in this article. With respect to services,

other than telecommunication services, such services shall be

considered to be performed in this Commonwealth if:

(A)  performed completely in this Commonwealth;

(B)  performed partially in this Commonwealth and partially

outside of this Commonwealth when the recipient or user of the

service is located in this Commonwealth and no sales or use tax

equal in rate to that imposed under this article has been paid

to another state for the service performed partially in that

state; or

(C)  the place of performance cannot be determined if the

recipient or user of the service is located in this

Commonwealth.

(iii)  With respect to services, other than telecommunication

services, such services performed partially in this Commonwealth

and partially outside of this Commonwealth shall be presumed to

have been performed completely in this Commonwealth unless the

taxpayer can show the place of performance by clear and

convincing evidence. With respect to interstate

telecommunication services, only those charges for interstate

telecommunications which originate or are received in this

Commonwealth and which are billed and charged to a service

address in this Commonwealth shall be subject to tax.

* * *

(m)  "Tangible personal property."  Corporeal personal

property including, but not limited to, goods, wares,

merchandise, steam and natural and manufactured and bottled gas

[for non-residential use], electricity [for non-residential

use], prepaid telecommunications, premium cable or premium video

programming service, spirituous or vinous liquor and malt or

brewed beverages and soft drinks, interstate telecommunications

service originating or terminating in the Commonwealth and

charged to a service address in this Commonwealth, [intrastate

telecommunications service with the exception of (i) subscriber

line charges and basic local telephone service for residential

use and (ii) charges for telephone calls paid for by inserting

money into a telephone accepting direct deposits of money to

operate,] provided further, the service address of any

intrastate telecommunications service is deemed to be within

this Commonwealth or within a political subdivision, regardless

of how or where billed or paid. In the case of any such

interstate or intrastate telecommunications service, any charge

paid through a credit or payment mechanism which does not relate

to a service address, such as a bank, travel, credit or debit

card, but not including prepaid telecommunications, is deemed

attributable to the address of origination of the

telecommunications service.

* * *

(o)  "Use."

* * *

(4)  The obtaining by a purchaser of the service of

repairing, altering, mending, pressing, fitting, dyeing,

laundering, drycleaning or cleaning tangible personal property

[other than] including, but not limited to, wearing apparel or

shoes or applying or installing tangible personal property as a

repair or replacement part of other tangible personal property

[other than] including, but not limited to, wearing apparel or

shoes, whether or not the services are performed directly or by

any means other than by means of coin-operated self-service

laundry equipment for wearing apparel or household goods, and

whether or not any tangible personal property is transferred to

the purchaser in conjunction therewith[, except such services as

are obtained in the construction, reconstruction, remodeling,

repair or maintenance of real estate: Provided, however, That

this subclause shall not be deemed to impose tax upon such

services in the preparation for sale of new items which are

excluded from the tax under clause (26) of section 204, or upon

diaper service: And provided further, That the]. The term "use"

shall not include--

(A)  Any tangible personal property acquired and kept,

retained or over which power is exercised within this

Commonwealth on which the taxing of the storage, use or other

consumption thereof is expressly prohibited by the Constitution

of the United States or which is excluded from tax under other

provisions of this article.

(B)  The use or consumption of tangible personal property,

including but not limited to machinery and equipment and parts

therefor, and supplies or the obtaining of the services

described in subclauses (2), (3) and (4) of this clause directly

in the operations of--

(i)  The manufacture of tangible personal property.

(ii)  Farming, dairying, agriculture, horticulture or

floriculture when engaged in as a business enterprise. The term

"farming" shall include the propagation and raising of ranch-

raised furbearing animals and the propagation of game birds for

commercial purposes by holders of propagation permits issued

under 34 Pa.C.S. (relating to game) and the propagation and

raising of horses to be used exclusively for commercial racing

activities.

(iii)  The producing, delivering or rendering of a public

utility service, or in constructing, reconstructing, remodeling,

repairing or maintaining the facilities which are directly used

in producing, delivering or rendering such service.

(iv)  Processing as defined in subclause (d) of this section.

The exclusions provided in subparagraphs (i), (ii), (iii) and

(iv) shall not apply to any vehicle required to be registered

under The Vehicle Code except those vehicles directly used by a

public utility engaged in the business as a common carrier; to

maintenance facilities; or to materials, supplies or equipment

to be used or consumed in the construction, reconstruction,

remodeling, repair or maintenance of real estate other than

directly used machinery, equipment, parts or foundations

therefor that may be affixed to such real estate. The exclusions

provided in subparagraphs (i), (ii), (iii) and (iv) shall not

apply to tangible personal property or services to be used or

consumed in managerial sales or other nonoperational activities,

nor to the purchase or use of tangible personal property or

services by any person other than the person directly using the

same in the operations described in subparagraphs (i), (ii),

(iii) and (iv).

The exclusion provided in subparagraph (iii) shall not apply

to (A) construction materials, supplies or equipment used to

construct, reconstruct, remodel, repair or maintain facilities

not used directly by the purchaser in the production, delivering

or rendition of public utility service or (B) tools and

equipment used but not installed in the maintenance of

facilities used directly in the production, delivering or

rendition of a public utility service.

The exclusion provided in subparagraphs (i), (ii), (iii) and

(iv) shall not apply to the services enumerated in clauses (o)

(9) through (16) and (w) through (kk), except that the exclusion

provided in subparagraph (ii) for farming, dairying and

agriculture shall apply to the service enumerated in clause (z).

* * *

[(8)  The term "use" shall not include the providing of a

motor vehicle to a nonprofit private or public school to be used

by such a school for the sole purpose of driver education.]

* * *

Section 2.  Section 204 of the act, amended, added or

repealed August 31, 1971 (P.L.362, No.93), July 20, 1974 (P.L.

535, No.183), October 17, 1974 (P.L.756, No.255), December 14,

1977 (P.L.322, No.93), October 27, 1979 (P.L.242, No.79),

December 8, 1980 (P.L.1117, No.195), December 16, 1980 (P.L.

1240, No.223), October 22, 1981 (P.L.314, No.109), June 23, 1982

(P.L.610, No.172), December 9, 1982 (P.L.1047, No.246), July 21,

1983 (P.L.63, No.29), December 19, 1985 (P.L.354, No.100), July

13, 1987 (P.L.317, No.58), August 4, 1991 (P.L.97, No.22),

December 13, 1991 (P.L.373, No.40), June 16, 1994 (P.L.279, No.

48), June 30, 1995 (P.L.139, No.21), May 7, 1997 (P.L.85, No.7),

April 23, 1998 (P.L.239, No.45), May 12, 1999 (P.L.26, No.4),

May 24, 2000 (P.L.106, No.23), December 20, 2000 (P.L.841, No.

119), June 22, 2001 (P.L.353, No.23), June 29, 2002 (P.L.559,

No.89), December 23, 2003 (P.L.250, No.46), July 6, 2006 (P.L.

319, No.67), November 29, 2006 (P.L.1630, No.189), July 25, 2007

(P.L.373, No.55) and October 9, 2009 (P.L.451, No.48), is

amended to read:

Section 204.  Exclusions from Tax.--The tax imposed by

section 202 shall not be imposed upon any of the following:

(1)  The sale at retail or use of tangible personal property

(other than motor vehicles, trailers, semi-trailers, motor

boats, aircraft or other similar tangible personal property

required under either Federal law or laws of this Commonwealth

to be registered or licensed) or services sold by or purchased

from a person not a vendor in an isolated transaction or sold by

or purchased from a person who is a vendor but is not a vendor

with respect to the tangible personal property or services sold

or purchased in such transaction: Provided, That inventory and

stock in trade so sold or purchased, shall not be excluded from

the tax by the provisions of this subsection.

(2)  The use of tangible personal property purchased by a

nonresident person outside of, and brought into this

Commonwealth for use therein for a period not to exceed seven

days, or for any period of time when such nonresident is a

tourist or vacationer and, in either case not consumed within

the Commonwealth.

(3)  The use of tangible personal property purchased outside

this Commonwealth for use outside this Commonwealth by a then

nonresident natural person or a business entity not actually

doing business within this Commonwealth, who later brings such

tangible personal property into this Commonwealth in connection

with his establishment of a permanent business or residence in

this Commonwealth: Provided, That such property was purchased

more than six months prior to the date it was first brought into

this Commonwealth or prior to the establishment of such business

or residence, whichever first occurs. This exclusion shall not

apply to tangible personal property temporarily brought into

Pennsylvania for the performance of contracts for the

construction, reconstruction, remodeling, repairing and

maintenance of real estate.

[(4)  The sale at retail or use of disposable diapers; pre-

moistened wipes; incontinence products; colostomy deodorants;

toilet paper; sanitary napkins, tampons or similar items used

for feminine hygiene; or toothpaste, toothbrushes or dental

floss.

(5)  The sale at retail or use of steam, natural and

manufactured and bottled gas, fuel oil, electricity or

intrastate subscriber line charges, basic local telephone

service or telegraph service when purchased directly by the user

thereof solely for his own residential use and charges for

telephone calls paid for by inserting money into a telephone

accepting direct deposits of money to operate.]

(10)  The sale at retail to, or use by (i) any charitable

organization, volunteer firemen's organization or nonprofit

educational institution, or (ii) a religious organization for

religious purposes of tangible personal property or services

other than pursuant to a construction contract: Provided,

however, That the exclusion of this clause shall not apply with

respect to any tangible personal property or services used in

any unrelated trade or business carried on by such organization

or institution or with respect to any materials, supplies and

equipment used and transferred to such organization or

institution in the construction, reconstruction, remodeling,

renovation, repairs and maintenance of any real estate

structure, other than building machinery and equipment, except

materials and supplies when purchased by such organizations or

institutions for routine maintenance and repairs.

(11)  The sale at retail, or use of gasoline and other motor

fuels, the sales of which are otherwise subject to excise taxes

under [the act of May 21, 1931 (P.L.194), known as the "Liquid

Fuels Tax Act," and the act of January 14, 1952 (P.L.1965),

known as the "Fuel Use Tax Act."] 75 Pa.C.S. Ch. 90 (relating to

liquid fuels and fuels tax).

(12)  The sale at retail to, or use by the United States,

this Commonwealth or its instrumentalities or political

subdivisions of tangible personal property or services.

[(13)  The sale at retail, or use of wrapping paper, wrapping

twine, bags, cartons, tape, rope, labels, nonreturnable

containers and all other wrapping supplies, when such use is

incidental to the delivery of any personal property, except that

any charge for wrapping or packaging shall be subject to tax at

the rate imposed by section 202.

(14)  Sale at retail or use of vessels designed for

commercial use of registered tonnage of fifty tons or more when

produced by the builders thereof upon special order of the

purchaser.

(15)  Sale at retail of tangible personal property or

services used or consumed in building, rebuilding, repairing and

making additions to or replacements in and upon vessels designed

for commercial use of registered tonnage of fifty tons or more

upon special order of the purchaser, or when rebuilt, repaired

or enlarged, or when replacements are made upon order of or for

the account of the owner.

(16)  The sale at retail or use of tangible personal property

or services to be used or consumed for ship cleaning or

maintenance or as fuel, supplies, ships' equipment, ships'

stores or sea stores on vessels designed for commercial use of

registered tonnage of fifty tons or more to be operated

principally outside the limits of the Commonwealth.]

(17)  The sale at retail or use of prescription [or non-

prescription] medicines[,] or drugs or prescription or

nonprescription medical supplies, crutches and wheelchairs for

the use of cripples and invalids, artificial limbs, artificial

eyes and artificial hearing devices when designed to be worn on

the person of the purchaser or user, false teeth and materials

used by a dentist in dental treatment, eyeglasses when

especially designed or prescribed by an ophthalmologist, oculist

or optometrist for the personal use of the owner or purchaser

and artificial braces and supports designed solely for the use

of crippled persons or any other therapeutic, prosthetic or

artificial device designed for the use of a particular

individual to correct or alleviate a physical incapacity,

including but not limited to hospital beds, iron lungs, and

kidney machines.

[(18)  The sale at retail or use of coal.]

(24)  The sale at retail or use of motor vehicles, trailers

and semi-trailers, or bodies attached to the chassis thereof,

sold to a nonresident of Pennsylvania to be used outside of

Pennsylvania and which are registered in a state other than

Pennsylvania within twenty days after delivery to the vendee.

[(25)  The sale at retail or use of water.

(26)  The sale at retail or use of all vesture, wearing

apparel, raiments, garments, footwear and other articles of

clothing, including clothing patterns and items that are to be a

component part of clothing, worn or carried on or about the

human body but all accessories, ornamental wear, formal day or

evening apparel, and articles made of fur on the hide or pelt or

any material imitative of fur and articles of which such fur,

real, imitation or synthetic, is the component material of chief

value, but only if such value is more than three times the value

of the next most valuable component material, and sporting goods

and clothing not normally used or worn when not engaged in

sports shall not be excluded from the tax.

(28)  The sale at retail or use of religious publications

sold by religious groups and Bibles and religious articles.]

(29)  The sale at retail or use of food and beverages for

human consumption, except that this exclusion shall not apply

with respect to--

(i)  Soft drinks;

(ii)  Malt and brewed beverages and spirituous and vinous

liquors;

(iii)  Food or beverages, whether sold for consumption on or

off the premises or on a "take-out" or "to go" basis or

delivered to the purchaser or consumer, when purchased (A) from

persons engaged in the business of catering; or (B) from persons

engaged in the business of operating establishments from which

ready-to-eat food and beverages are sold, including, but not

limited to, restaurants, cafes, lunch counters, private and

social clubs, taverns, dining cars, hotels, night clubs, fast

food operations, pizzerias, fairs, carnivals, lunch carts, ice

cream stands, snack bars, cafeterias, employe cafeterias,

theaters, stadiums, arenas, amusement parks, carryout shops,

coffee shops and other establishments whether mobile or

immobile. For purposes of this clause, a bakery, a pastry shop,

a donut shop, a delicatessen, a grocery store, a supermarket, a

farmer's market, a convenience store or a vending machine shall

not be considered an establishment from which food or beverages

ready to eat are sold except for the sale of meals, sandwiches,

food from salad bars, hand-dipped or hand-served iced based

products including ice cream and yogurt, hot soup, hot pizza and

other hot food items, brewed coffee and hot beverages. For

purposes of this subclause, beverages shall not include malt and

brewed beverages and spirituous and vinous liquors but shall

include soft drinks. The sale at retail of food and beverages at

or from a school or church in the ordinary course of the

activities of such organization is not subject to tax.

[(30)  The sale at retail or use of newspapers. For purposes

of this section, the term "newspaper" shall mean a "legal

newspaper" or a publication containing matters of general

interest and reports of current events which qualifies as a

"newspaper of general circulation" qualified to carry a "legal

advertisement" as those terms are defined in 45 Pa.C.S. § 101 

(relating to definitions), not including magazines. This

exclusion shall also include any printed advertising materials

circulated with such newspaper regardless of where or by whom

such printed advertising material was produced.

(31)  The sale at retail or use of caskets and burial vaults

for human remains and markers and tombstones for human graves.]

(32)  The sale at retail or use of flags of the United States

of America and the Commonwealth of Pennsylvania.

[(33)  The sale at retail or use of textbooks for use in

schools, colleges and universities, either public or private

when purchased in behalf of or through such schools, colleges or

universities provided such institutions of learning are

recognized by the Department of Education.

(34)  The sale at retail, or use of motion picture film

rented or licensed from a distributor for the purpose of

commercial exhibition.

(35)  The sale at retail or use of mail order catalogs and

direct mail advertising literature or materials, including

electoral literature or materials, such as envelopes, address

labels and a one-time license to use a list of names and mailing

addresses for each delivery of direct mail advertising

literature or materials, including electoral literature or

materials, through the United States Postal Service.

(36)  The sale at retail or use of rail transportation

equipment used in the movement of personalty.

(37)  The sale at retail of buses to be used under contract

with school districts that are replacements for buses destroyed

or lost in the flood of 1977 for a period ending December 31,

1977 in the counties of Armstrong, Bedford, Cambria, Indiana,

Jefferson, Somerset and Westmoreland, or the use of such buses.

(38)  The sale at retail of horses, if at the time of

purchase, the seller is directed to ship or deliver the horse to

an out-of-State location, whether or not the charges for

shipment are paid for by the seller or the purchaser; the seller

shall obtain a bill of lading, either from the carrier or from

the purchaser, who, in turn has obtained the bill of lading from

the carrier, reflecting delivery to the out-of-State address to

which the horse has been shipped. The seller shall execute a

"Certificate of Delivery to Destination Outside of the

Commonwealth" for each bill of lading reflecting out-of-State

delivery. The seller shall be required to retain the certificate

of delivery form to justify the noncollection of sales tax with

respect to the transaction to which the form relates.

In transactions where a horse is sold by the seller and

delivered to a domiciled person, agent or corporation prior to

its being delivered to an out-of-State location, the

"Certificate of Delivery to Destination Outside of the

Commonwealth" form must have attached to it bills of lading both

for the transfer to the domiciled person, agent or corporation

and from the aforementioned to the out-of-State location.

(39)  The sale at retail or use of fish feed purchased by or

on behalf of sportsmen's clubs, fish cooperatives or nurseries

approved by the Pennsylvania Fish Commission.

(40)  The sale at retail of supplies and materials to tourist

promotion agencies, which receive grants from the Commonwealth,

for distribution to the public as promotional material or the

use of such supplies and materials by said agencies for said

purposes.

(41)  The sale at retail of supplies and materials to tourist

promotion agencies, which receive grants from the Commonwealth,

for distribution to the public as promotional material or the

use of such supplies and materials by said agencies for said

purposes.

(42)  The sale or use of brook trout (salvelinus fontinalis),

brown trout (Salmo trutta) or rainbow trout (Salmo gairdneri).

(43)  The sale at retail or use of buses to be used

exclusively for the transportation of children for school

purposes.

(44)  The sale at retail or use of firewood. For the purpose

of this clause, firewood shall mean the product of trees when

severed from the land and cut into proper lengths for burning

and pellets made from pure wood sawdust if used for fuel for

cooking, hot water production or to heat residential dwellings.

(45)  The sale at retail or use of materials used in the

construction and erection of objects purchased by not-for-profit

organizations for purposes of commemoration and memorialization

of historical events, provided that the object is erected upon

publicly owned property or property to be conveyed to a public

entity upon the commemoration or memorialization of the

historical event.]

(46)  The sale at retail or use of tangible personal property

purchased in accordance with the Food Stamp Act of 1977, as

amended (Public Law 95-113, 7 U.S.C. §§ 2011-2029).

[(47)  The net purchase price of the sale at retail or use of

electric vehicles, hybrid electric vehicles and zero emission

vehicles as defined in 75 Pa.C.S. § 102 (relating to

definitions). "Net purchase price" shall mean the difference

between the purchase price of an electric vehicle, hybrid

electric vehicle or zero emission vehicle and the average retail

list price of a comparable vehicle. "Comparable vehicle" shall

mean, in the case of a passenger car, the overall average list

price of a passenger car in the United States; in the case of a

passenger truck, the overall average list price of a passenger

truck in the United States; and, in the case of a van, the

overall average retail list price of a van in the United States.

The Department of Revenue shall promulgate rules and regulations

to enforce this exemption and determine the average retail list

price as defined under "comparable vehicle" on an annual basis.

In the event that a qualified motor vehicle is something other

than a passenger car, passenger truck or van, the Department of

Revenue shall determine the average list price of a comparable

vehicle classification. This clause shall expire December 31,

1999.

(48)  The sale at retail or use of power units for vehicles

that are exempt under clause (47). This clause shall expire

December 31, 1999.]

(49)  The sale at retail or use of [food and beverages]

tangible personal property or services by a nonprofit

[associations] association which support [sports programs] the

charitable purposes of the nonprofit association. For purposes

of this clause, the phrases:

(i)  "nonprofit association" means an entity which is

organized as a nonprofit corporation or nonprofit unincorporated

association under the laws of this Commonwealth or the United

States or any entity which is authorized to do business in this

Commonwealth as a nonprofit corporation or unincorporated

association under the laws of this Commonwealth, including, but

not limited to, youth or athletic associations, volunteer fire,

ambulance, religious, charitable, fraternal, veterans, civic, or

any separately chartered auxiliary of the foregoing, if

organized and operated on a nonprofit basis; and

[(iv)  "sports program" means baseball (including softball),

football, basketball, soccer and any other competitive sport

formally recognized as a sport by the United States Olympic

Committee as specified by and under the jurisdiction of the

Amateur Sports Act of 1978 (Public Law 95-606, 36 U.S.C. § 371 

et seq.), the Amateur Athletic Union or the National Collegiate

Athletic Association. The term shall be limited to a program or

that portion of a program that is organized for recreational

purposes and whose activities are substantially for such

purposes and which is primarily for participants who are 18

years of age or younger or whose 19th birthday occurs during the

year of participation or the competitive season, whichever is

longer. There shall, however, be no age limitation for programs

operated for persons with physical handicaps or persons with

mental retardation;

(v)  "support" means the funds raised from sales are used to

pay the expenses of a sports program or the nonprofit

association sells the food and beverages at a location where a

sports program is being conducted under this act.

(50)  The sale at retail or use of subscriptions for

magazines. The term "magazine" refers to a periodical published

at regular intervals not exceeding three months and which are

circulated among the general public, containing matters of

general interest and reports of current events published for the

purpose of disseminating information of a public character or

devoted to literature, the sciences, art or some special

industry. This exclusion shall also include any printed

advertising material circulated with the periodical or

publication regardless of where or by whom the printed

advertising material was produced.

(51)  The sale at retail or use of interior office building

cleaning services but only as relates to the costs of the

supplied employe, which costs are wages, salaries, bonuses and

commissions, employment benefits, expense reimbursements, and

payroll and withholding taxes, to the extent that these costs

are specifically itemized or that these costs in aggregate are

stated in billings from the vender or supplying entity.

(53)  The sale at retail or use of candy or gum regardless of

the location from which the candy or gum is sold.

(55)  The sale at retail or use of horses to be used

exclusively for commercial racing activities and the sale at

retail and use of feed, bedding, grooming supplies, riding tack,

farrier services, portable stalls and sulkies for horses used

exclusively for commercial racing activities.]

(56)  The sale at retail or use of tangible personal property

or services used, transferred or consumed in installing or

repairing equipment or devices designed to assist persons in

ascending or descending a stairway when:

(i)  The equipment or devices are used by a person who, by

virtue of a physical disability, is unable to ascend or descend

stairs without the aid of such equipment or device.

(ii)  The equipment or device is installed or used in such

person's place of residence.

(iii)  A physician has certified the physical disability of

the person in whose residence the equipment or device is

installed or used.

(57)  The sale at retail to or use by a construction

contractor of building machinery and equipment and services

thereto that are:

(i)  transferred pursuant to a construction contract for any

charitable organization, volunteer firemen's organization,

nonprofit educational institution or religious organization for

religious purposes, provided that the building machinery and

equipment and services thereto are not used in any unrelated

trade or business; or

(ii)  transferred to the United States or the Commonwealth or

its instrumentalities or political subdivisions[; or].

[(58)  The sale at retail or use of a personal computer, a

peripheral device or an Internet access device, or a service

contract or single-user licensed software purchased in

conjunction with a personal computer, peripheral device or

Internet access device, during the exclusion period by an

individual purchaser for nonbusiness use. The exclusion does not

include a sale at retail or use of, leasing, rental or repair of

a personal computer, peripheral device or Internet access

device; mainframe computers; network servers; local area network

hubs; routers and network cabling; network operating systems;

multiple-user licensed software; minicomputers; hand-held

computers; personal digital assistants without Internet access;

hardware word processors; graphical calculators; video game

consoles; telephones; digital cameras; pagers; compact discs

encoded with music or movies; and digital versatile discs

encoded with music or movies. For purposes of this clause, the

phrase "exclusion period" means the period of time from August

5, 2001, to and including August 12, 2001, and from February 17,

2002, to and including February 24, 2002. For purposes of this

clause, "purchaser" means an individual who places an order and

pays the purchase price by cash or credit during the exclusion

period even if delivery takes place after the exclusion period.]

(59)  The sale at retail or use of molds and related mold

equipment used directly and predominantly in the manufacture of

products, regardless of whether the person that holds title to

the equipment manufactures a product.

(60)  The sale or use of used prebuilt housing.

[(61)  The sale at retail to or use of food and nonalcoholic

beverages by an airline which will transfer the food or

nonalcoholic beverages to passengers in connection with the

rendering of the airline service.]

(62)  The sale at retail or use of tangible personal property

or services which are directly used in farming, dairying or

agriculture when engaged in as a business enterprise whether or

not the sale is made to the person directly engaged in the

business enterprise or to a person contracting with the person

directly engaged in the business enterprise for the production

of food.

[(63)  The sale at retail or use of separately stated fees

paid pursuant to 13 Pa.C.S. § 9525 (relating to fees).]

(64)  The sale at retail to or use by a construction

contractor, employed by a public school district pursuant to a

construction contract, of any materials and building supplies

which, during construction or reconstruction, are made part of

any public school building utilized for instructional classroom

education within this Commonwealth, if the construction or

reconstruction:

(i)  is necessitated by a disaster emergency, as defined in

35 Pa.C.S. § 7102 (relating to definitions); and

(ii)  takes place during the period when there is a

declaration of disaster emergency under 35 Pa.C.S. § 7301(c) 

(relating to general authority of Governor).

(65)  The sale at retail or use of investment metal bullion

and investment coins. "Investment metal bullion" means any

elementary precious metal which has been put through a process

of smelting or refining, including, but not limited to, gold,

silver, platinum and palladium, and which is in such state or

condition that its value depends upon its content and not its

form. "Investment metal bullion" does not include precious metal

which has been assembled, fabricated, manufactured or processed

in one or more specific and customary industrial, professional,

aesthetic or artistic uses. "Investment coins" means numismatic

coins or other forms of money and legal tender manufactured of

gold, silver, platinum, palladium or other metal and of the

United States or any foreign nation with a fair market value

greater than any nominal value of such coins. "Investment coins"

does not include jewelry or works of art made of coins, nor does

it include commemorative medallions.

(66)  The sale at retail or use of copies of an official

document sold by a government agency or a court. For the

purposes of this clause, the following terms or phrases shall

have the following meanings:

(i)  "court" includes:

(A)  an "appellate court" as defined in 42 Pa.C.S. § 102 

(relating to definitions);

(B)  a "court of common pleas" as defined in 42 Pa.C.S. §

102;

(C)  the "minor judiciary" as defined in 42 Pa.C.S. § 102;

(ii)  "government agency" means an "agency" as defined in

section 1 of the act of June 21, 1957 (P.L.390, No.212),

referred to as the "Right-to-Know Law";

(iii)  "official document" means a "record" as defined in

section 1 of the "Right-to-Know Law." The term shall include

notes of court testimony, deposition transcripts, driving

records, accident reports, birth and death certificates, deeds,

divorce decrees and other similar documents.

(67)  The sale at retail or use of repair or replacement

parts, including the installation of those parts, exclusively

for use in helicopters and similar rotorcraft or in overhauling

or rebuilding of helicopters and similar rotorcraft or

helicopters and similar rotorcraft components.

(68)  The sale at retail or use of helicopters and similar

rotorcraft.

(69)  The sale at retail of medical goods or services by a

hospital.

(70)  The sale at retail of medical, dental or hospice

services.

(71)  The sale at retail or use of goods or services

involving Medicare Part B transactions.

(72)  The sale or rental of real property.

Section 3.  This act shall apply to sales and uses occurring

or commencing 120 days after the effective date of this section.

Section 4.  This act shall take effect immediately.