PRINTER'S NO. 673
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY ARGALL, FOLMER, SCHWANK, YUDICHAK, ALLOWAY, ERICKSON, FONTANA, MENSCH, WAUGH, SOLOBAY, RAFFERTY, BAKER, EICHELBERGER, BREWSTER, SMUCKER, BOSCOLA AND FERLO, MARCH 14, 2013
REFERRED TO FINANCE, MARCH 14, 2013
1Providing for tax levies and information related to taxes;
2authorizing the imposition of a personal income tax or an
3earned income tax by a school district subject to voter
4approval; providing for imposition of and exclusions from a
5sales and use tax for the stabilization of education funding,
6for increase to the personal income tax, for certain
7licenses, for hotel occupancy tax, for procedure and
8administration of the tax, for expiration of authority to
9issue certain debt and for reporting by local government
10units of debt outstanding; establishing the Education
11Stabilization Fund; providing for disbursements from this
12fund; and repealing certain provisions of the Public School
13Code of 1949 and sales and use tax provisions of the Tax
14Reform Code of 1971.
15TABLE OF CONTENTS
16Chapter 1. Preliminary Provisions
17Section 101. Short title.
18Section 102. Definitions.
19Chapter 3. Taxation by School Districts
20Section 301. Scope.
21Section 302. Definitions.
22Section 303. Limitation.
23Section 304. Preemption.
1Section 305. General tax authorization.
2Section 306. Referendum.
3Section 307. Continuity of tax.
4Section 308. Collections.
5Section 309. Credits.
6Section 310. Exemption and special provisions.
7Section 311. Regulations.
8Chapter 4. Education Tax
9Section 401. Education tax.
12Subchapter A. Preliminary Provisions
13Section 701. Scope.
14Section 701.1. Definitions.
15Subchapter B. Sales and Use Tax
16Section 702. Imposition of tax.
17Section 703. Computation of tax.
18Subchapter C. Exclusions from Sales and Use Tax
19Section 704. Exclusions from tax.
20Section 705. Alternate imposition of tax.
21Section 706. Credit against tax.
22Subchapter D. Licenses
23Section 708. Licenses.
24Subchapter E. Hotel Occupancy Tax
25Section 709. Definitions.
26Section 710. Imposition of tax.
27Section 711. Seasonal tax returns.
28Subchapter F. Procedure and Administration
29Section 715. Persons required to make returns.
30Section 716. Form of returns.
1Section 717. Time for filing returns.
2Section 718. Extension of time for filing returns.
3Section 719. Place for filing returns.
6Section 721. Payment of tax.
7Section 722. Time of payment.
8Section 723. Other times for payment.
9Section 724. Place for payment.
10Section 725. Tax held in trust for Commonwealth.
11Section 726. Local receivers of use tax.
12Section 727. Discount.
13Section 728. (Reserved).
14Section 729. (Reserved).
15Section 730. Assessment.
16Section 731. Mode and time of assessment.
17Section 732. Reassessment.
18Section 733. (Reserved).
19Section 734. Review by Board of Finance and Revenue.
20Section 735. (Reserved).
21Section 736. Burden of proof.
22Section 737. Collection of tax.
25Section 739. Precollection of tax.
26Section 740. Bulk and auction sales.
29Section 742. Lien for taxes.
30Section 743. Suit for taxes.
1Section 744. Tax suit comity.
2Section 745. Service.
3Section 746. Collection and payment of tax on credit sales.
4Section 747. Prepayment of tax.
5Section 747.1. Refund of sales tax attributed to bad debt.
6Section 748. Registration of transient vendors.
7Section 748.1. Bond.
8Section 748.2. Notification to department.
9Section 748.3. Seizure of property.
10Section 748.4. Fines.
11Section 748.5. Transient vendors subject to chapter.
12Section 748.6. Promoters.
13Section 749. (Reserved).
14Section 750. (Reserved).
15Section 751. (Reserved).
16Section 752. Refunds.
17Section 753. Refund petition.
18Section 754. (Reserved).
19Section 755. (Reserved).
22Section 757. (Reserved).
23Section 758. Limitation on assessment and collection.
24Section 759. Failure to file return.
25Section 760. False or fraudulent return.
26Section 761. Extension of limitation period.
27Section 762. (Reserved).
28Section 763. (Reserved).
29Section 764. (Reserved).
30Section 765. Interest.
1Section 766. Additions to tax.
2Section 767. Penalties.
3Section 768. Criminal offenses.
4Section 769. Abatement of additions or penalties.
5Section 770. Rules and regulations.
6Section 771. Keeping of records.
7Section 771.1. Reports and records of promoters.
8Section 772. Examinations.
9Section 773. Records and examinations of delivery agents.
10Section 774. Unauthorized disclosure.
11Section 775. Cooperation with other governments.
12Section 776. Interstate compacts.
13Section 777. Bonds.
14Subchapter G. Funding Provisions
15Section 780. (Reserved).
16Section 781. Appropriation for refunds.
17Section 781.1. Construction.
18Section 782. Transfers to Education Stabilization Fund.
19Chapter 9. (Reserved)
20Chapter 11. Limitations on School District Taxation
23Section 1102. Transitional taxes.
28Chapter 12. Indebtedness
29Section 1201. Expiration of authority to issue debt.
30Section 1202. Notices and reporting by school districts of debt
2Chapter 13. Funding Provisions
3Section 1301. Definitions.
4Section 1302. Education Stabilization Fund.
7Chapter 15. Miscellaneous Provisions
8Section 1501. Transitional provision.
9Section 1502. Construction.
10Section 1503. Severability.
11Section 1504. Repeals.
12Section 1505. Applicability.
13Section 1506. Effective date.
18Section 101. Short title.
21Section 102. Definitions.
25"Department." The Department of Revenue of the Commonwealth.
1"Governing body." The board of school directors of a school
2district, except that the term shall mean the city council of a
3city of the first class for purposes of the levy and collection
4of any tax in a school district of the first class.
11"School district." A school district of the first class,
12first class A, second class, third class or fourth class,
13including any independent school district. For purposes of the
14levy, assessment and collection of any tax in a school district
15of the first class, the term shall include the City Council.
19"Secretary." The Secretary of Revenue of the Commonwealth.
23Taxation by School Districts
24Section 301. Scope.
25This chapter authorizes school districts to levy, assess and
26collect a tax on personal income or a tax on earned income and
27net profits as a means of abolishing property taxation by the
29Section 302. Definitions.
30The words and phrases used in this chapter shall have the
4Section 303. Limitation.
7Section 304. Preemption.
8No act of the General Assembly shall vacate or preempt any
9resolution passed or adopted under the authority of this
10chapter, or any other act, providing authority for the
11imposition of a tax by a school district, unless the act of the
12General Assembly expressly vacates or preempts the authority to
13pass or adopt resolutions.
14Section 305. General tax authorization.
15(a) General rule.--A board of school directors may, by
16resolution, levy, assess and collect or provide for the levying,
17assessment and collection of a tax on personal income or a tax
18on earned income and net profits for general revenue purposes.
19(b) Personal income tax.--
25(3) If a board of school directors seeks to impose a
26personal income tax under this subsection and the referendum
27under section 306 is approved by the electorate, the board of
28school directors shall have no authority to impose an earned
29income and net profits tax under subsection (c) or any other
1(4) A personal income tax imposed under the authority of
2this section shall be levied by the school district on each
3of the classes of income specified in section 303 of the Tax
4Reform Code of 1971 and regulations under that section,
5provisions of which are incorporated by reference into this
7(i) Notwithstanding the provisions of section 353(f)
8of the Tax Reform Code of 1971, the Department of Revenue
9may permit the proper officer or an authorized agent of a
10school district imposing a personal income tax pursuant
11to this chapter to inspect the tax returns of any
12taxpayer of the school district or may furnish to the
13officer or an authorized agent an abstract of the return
14of income of any current or former resident of the school
15district or supply information concerning any item of
16income contained in any tax return. The officer or
17authorized agent of the school district imposing a tax
18under this chapter shall be furnished the requested
19information upon payment to the Department of Revenue of
20the actual cost of providing the requested information.
25(I) Disclose to any other individual or
26entity the amount or source of income, profits,
27losses, expenditures or any particular
28information concerning income, profits, losses or
29expenditures contained in any return.
30(II) Permit any other individual or entity
4(III) Print, publish or publicize in any
5manner any return; any particular information
6contained in or concerning the return; any amount
7or source of income, profits, losses or
8expenditures in or concerning the return; or any
9particular information concerning income,
10profits, losses or expenditures contained in or
11relating to any return.
18(c) Earned income and net profits tax.--
25(3) If a board of school directors seeks to impose a tax
26on earned income and net profits under this subsection and
27the referendum under section 306 is approved by the
28electorate, the board of school directors shall have no
29authority to impose a personal income tax under subsection
30(b) or any other act.
1Section 306. Referendum.
2(a) General rule.--In order to levy a personal income tax or
3an earned income and net profits tax under this chapter, a
4governing body shall use the procedures set forth in subsections
5(b), (c), (d), (e), (f) and (g).
6(b) Approved by electorate.--
7(1) Subject to notice and public hearing requirements of
8subsection (g), a governing body may levy the personal income
9tax or earned income and net profits tax under this chapter
10only by obtaining the approval of the electorate of the
11affected school district in a public referendum at only the
12primary election preceding the fiscal year when the personal
13income tax or earned income and net profits tax will be
14initially imposed or the rate increased.
15(2) The referendum question must state the initial rate
16of the proposed personal income tax or earned income and net
17profits tax, the purpose of the tax, the duration of the tax
18and the amount of revenue to be generated by the
19implementation of the tax.
8(c) School district located in more than one county.--In the
9event a school district is located in more than one county,
10petitions under this section shall be filed with the election
11officials of the county in which the administrative offices of
12the school district are located.
13(d) Review and certification.--The election officials who
14receive a petition shall perform all administrative functions in
15reviewing and certifying the validity of the petition and
16conduct all necessary communications with the school district.
18(1) If the election officials of the county who receive
19the petition certify that it is sufficient under this section
20and determine that a question should be placed on the ballot,
21the decision shall be communicated to election officials in
22any other county in which the school district is also
24(2) Election officials in the other county or counties
25shall cooperate with election officials of the county that
26receives the petition to ensure that an identical question is
27placed on the ballot at the same election throughout the
28entire school district.
1their county to the governing body.
2(g) Adoption of resolution.--
6(2) Prior to adopting a resolution imposing the tax
7authorized by this section, the governing body shall give
8public notice of its intent to adopt the resolution in the
9manner provided by The Local Tax Enabling Act and shall
10conduct at least two public hearings regarding the proposed
11adoption of the resolution. One public hearing shall be
12conducted during normal business hours and one public hearing
13shall be conducted during evening hours or on a weekend.
14Section 307. Continuity of tax.
15Every tax levied under this chapter shall continue in force
16on a fiscal year basis without annual reenactment unless the
17rate of the tax is subsequently changed or the duration placed
18on the referendum has expired.
19Section 308. Collections.
23Section 309. Credits.
24(a) Credit.--Except as set forth in subsection (b), the
25provisions of The Local Tax Enabling Act shall be applied by a
26board of school directors to determine any credits applicable to
27a tax imposed under this chapter.
1school district located in this Commonwealth shall not be
2credited to and allowed as a deduction from the liability of
3such person for any income tax imposed by the school district of
4residence pursuant to this chapter.
5Section 310. Exemption and special provisions.
6(a) Earned income and net profits tax.--A school district
7that imposes an earned income and net profits tax authorized
8under section 305(c) may exempt from the payment of that tax any
9person whose total income from all sources is less than $12,000.
13Section 311. Regulations.
14A school district that imposes:
15(1) an earned income and net profits tax authorized
16under section 305(c) shall be subject to the provisions of
17The Local Tax Enabling Act and may adopt procedures for the
18processing of claims for credits and exemptions under section
19309 and 310; or
20(2) a personal income tax under section 305(b) shall be
21subject to all regulations adopted by the Department of
22Revenue in administering the tax due to the Commonwealth
23under Article III of the Tax Reform Code of 1971.
26Section 401. Education tax.
27(a) General rule.--In addition to the tax collected under
28section 302 of the Tax Reform Code of 1971, the Commonwealth
29shall impose the tax set forth in subsection (c) in the same
30manner as the tax under the Tax Reform Code of 1971.
1(b) Imposition of tax.--
2(1) Every resident individual, estate or trust shall be
3subject to, and shall pay for the privilege of receiving each
4of the classes of income enumerated in section 303 of the Tax
5Reform Code of 1971, a tax upon each dollar of income
6received by that resident during that resident's taxable year
7at the rate of 1.27%.
8(2) Every nonresident individual, estate or trust shall
9be subject to, and shall pay for the privilege of receiving
10each of the classes of income enumerated in section 303 of
11the Tax Reform Code of 1971 from sources within this
12Commonwealth, a tax upon each dollar of income received by
13that nonresident during that nonresident's taxable year at
14the rate of 1.27%.
18(d) Combination of tax forms.--The department shall
19incorporate the taxpayer reporting requirement for the
20implementation of this section into the forms utilized by the
21department under Article III of the Tax Reform Code of 1971.
26SALES AND USE TAX FOR THE
27STABILIZATION OF EDUCATION FUNDING
30Section 701. Scope.
1The tax provided for under this chapter shall be known as the
2Sales and Use Tax for the Stabilization of Education Funding,
3which shall be a replacement for the sales and use tax
4authorized under Article II of the Tax Reform Code of 1971 and
5that is repealed by this act.
6Section 701.1. Definitions.
10(a) "Soft drinks."
11(1) All nonalcoholic beverages, whether carbonated or
12not, such as soda water, ginger ale, Coca Cola, lime cola,
13Pepsi Cola, Dr Pepper, fruit juice when plain or carbonated
14water, flavoring or syrup is added, carbonated water,
15orangeade, lemonade, root beer or any and all preparations,
16commonly referred to as soft drinks, of whatsoever kind, and
17are further described as including any and all beverages,
18commonly referred to as soft drinks, which are made with or
19without the use of any syrup.
20(2) The term does not include natural fruit or vegetable
21juices or their concentrates, or noncarbonated fruit juice
22drinks containing not less than 25% by volume of natural
23fruit juices or of fruit juice which has been reconstituted
24to its original state, or natural concentrated fruit or
25vegetable juices reconstituted to their original state,
26whether any of the natural juices are frozen or unfrozen,
27sweetened or unsweetened, seasoned with salt or spice or
28unseasoned. The term also does not include coffee, coffee
29substitutes, tea, cocoa, natural fluid milk or noncarbonated
30drinks made from milk derivatives.
1(b) "Maintaining a place of business in this Commonwealth."
2(1) Having, maintaining or using within this
3Commonwealth, either directly or through a subsidiary,
4representative or an agent, an office, distribution house,
5sales house, warehouse, service enterprise or other place of
6business; or any agent of general or restricted authority, or
7representative, irrespective of whether the place of
8business, representative or agent is located in this
9Commonwealth, permanently or temporarily, or whether the
10person or subsidiary maintaining the place of business,
11representative or agent is authorized to do business within
13(2) Engaging in any activity as a business within this
14Commonwealth by any person, either directly or through a
15subsidiary, representative or an agent, in connection with
16the lease, sale or delivery of tangible personal property or
17the performance of services thereon for use, storage or
18consumption or in connection with the sale or delivery for
19use of the services described in subclauses (11) through (18)
20of clause (k) of this section, including, but not limited to,
21having, maintaining or using any office, distribution house,
22sales house, warehouse or other place of business, any stock
23of goods or any solicitor, canvasser, salesman,
24representative or agent under its authority, at its direction
25or with its permission, regardless of whether the person or
26subsidiary is authorized to do business in this Commonwealth.
27(3) Regularly or substantially soliciting orders within
28this Commonwealth in connection with the lease, sale or
29delivery of tangible personal property to or the performance
30thereon of services or in connection with the sale or
1delivery of the services described in subclauses (11) through
2(18) of clause (k) of this section for residents of this
3Commonwealth by means of catalogs or other advertising,
4whether the orders are accepted within or without this
17(3.4) Providing a customer's mobile telecommunications
18service deemed to be provided by the customer's home service
19provider under the Mobile Telecommunications Sourcing Act (4
20U.S.C. § 116). For purposes of this clause, words and phrases
21used in this clause shall have the meanings given to them in
22the Mobile Telecommunications Sourcing Act.
23(4) The term does not include:
30(B) the property is located at the Pennsylvania
1premises of the commercial printer.
2(ii) Visits by a person's employees or agents to the
3premises in this Commonwealth of an unaffiliated
4commercial printer with whom the person has contracted
5for printing in connection with said contract.
6(b.1) "Service performed in this Commonwealth."
7A service performed:
8(1) completely in this Commonwealth;
12(3) partially in this Commonwealth and partially outside
13this Commonwealth, when the recipient or user of the service
14is not located in this Commonwealth, but only to the extent
15of those services actually performed in this Commonwealth.
18A service performed partially in this Commonwealth and partially
19outside this Commonwealth shall be presumed to have been
20performed completely in this Commonwealth unless the taxpayer
21can show the place of performance by clear and convincing
22evidence. With respect to interstate telecommunications
23services, only services for interstate telecommunications which
24originate or are terminated in this Commonwealth and which are
25billed and charged to a service address in this Commonwealth
26shall be presumed to have been performed completely in this
27Commonwealth and shall be subject to tax.
4(1) Every operation commencing with the first production
5stage and ending with the completion of tangible personal
6property having the physical qualities, including packaging,
7if any, passing to the ultimate consumer, which it has when
8transferred by the manufacturer to another. For purposes of
9this definition, "operation" includes clean rooms and their
10component systems, including: environmental control systems,
11antistatic vertical walls and manufacturing platforms and
12floors which are independent of the real estate; process
13piping systems; specialized lighting systems; deionized water
14systems; process vacuum and compressed air systems; process
15and specialty gases; and alarm or warning devices
16specifically designed to warn of threats to the integrity of
17the product or people. For purposes of this definition, a
18"clean room" is a location with a self-contained, sealed
19environment with a controlled, closed air system independent
20from the facility's general environmental control system.
23(3) Refining, blasting, exploring, mining and quarrying
24for, or otherwise extracting from the earth or from waste or
25stock piles or from pits or banks any natural resources,
26minerals and mineral aggregates including blast furnace slag.
27(4) Building, rebuilding, repairing and making additions
28to, or replacements in or upon vessels designed for
29commercial use of registered tonnage of 50 tons or more when
30produced on special order of the purchaser, or when rebuilt,
5(i) product or utility service; or
11(6) Remanufacture for wholesale distribution by a
12remanufacturer of motor vehicle parts from used parts
13acquired in bulk by the remanufacturer using an assembly line
14process which involves the complete disassembly of such parts
15and integration of the components of such parts with other
16used or new components of parts, including the salvaging,
17recycling or reclaiming of used parts by the remanufacturer.
18(7) Remanufacture or retrofit by a manufacturer or
19remanufacturer of aircraft, armored vehicles, other defense-
20related vehicles having a finished value of at least $50,000.
21Remanufacture or retrofit involves the disassembly of such
22aircraft, vehicles, parts or components, including electric
23or electronic components, the integration of those parts and
24components with other used or new parts or components,
25including the salvaging, recycling or reclaiming of the used
26parts or components and the assembly of the new or used
27aircraft, vehicles, parts or components. The term does not
28include constructing, altering, servicing, repairing or
29improving real estate or repairing, servicing or installing
30tangible personal property, nor the cooking, freezing or
14(c.1) "Blasting." The use of any combustible or explosive
15composition in the removal of material resources, minerals and
16mineral aggregates from the earth including the separation of
17the dirt, waste and refuse in which they are found.
20(1) The filtering or heating of honey, the cooking,
21baking or freezing of fruits, vegetables, mushrooms, fish,
22seafood, meats, poultry or bakery products, when the person
23engaged in the business packages the property in sealed
24containers for wholesale distribution.
25(1.1) The processing of fruits or vegetables by
26cleaning, cutting, coring, peeling or chopping and treating
27to preserve, sterilize or purify and substantially extend the
28useful shelf life of the fruits or vegetables, when the
29person engaged in the activity packages the property in
30sealed containers for wholesale distribution.
1(2) The scouring, carbonizing, cording, combing,
2throwing, twisting or winding of natural or synthetic fibers,
3or the spinning, bleaching, dyeing, printing or finishing of
4yarns or fabrics, when the activities are performed prior to
5sale to the ultimate consumer.
23(8) The operation of a saw mill or planing mill for the
24production of lumber or lumber products for sale. The
25operation of a saw mill or planing mill begins with the
26unloading by the operator of the saw mill or planing mill of
27logs, timber, pulpwood or other forms of wood material to be
28used in the saw mill or planing mill.
29(9) The milling for sale of flour or meal from grains.
30(9.1) The aging, stripping, conditioning, crushing and
4(10) The slaughtering and dressing of animals for meat
5to be sold or to be used in preparing meat products for sale,
6and the preparation of meat products including lard, tallow,
7grease, cooking and inedible oils for wholesale distribution.
8(11) The processing of used lubricating oils.
11(13) The cooking or baking of bread, pastries, cakes,
12cookies, muffins and donuts when the person engaged in the
13activity sells the items at retail at locations that do not
14constitute an establishment from which ready-to-eat food and
15beverages are sold. For purposes of this clause, a bakery, a
16pastry shop and a donut shop shall not be considered an
17establishment from which ready-to-eat food and beverages are
1instrumentalities and public authorities. Whenever used in
2prescribing and imposing a penalty or imposing a fine or
3imprisonment, or both, the term as applied to an association,
4includes the members of the association and, as applied to a
5corporation, the officers of the corporation.
6(f) "Purchase at retail."
7(1) The acquisition for a consideration of the
8ownership, custody or possession of tangible personal
9property other than for resale by the person acquiring the
10same when the acquisition is made for the purpose of
11consumption or use, whether the acquisition is absolute or
12conditional, and by any means it is effected.
13(2) The acquisition of a license to use or consume, and
14the rental or lease of tangible personal property, other than
15for resale regardless of the period of time the lessee has
16possession or custody of the property.
20(4) A retention after March 7, 1956, of possession,
21custody or a license to use or consume pursuant to a rental
22contract or other lease arrangement (other than as security)
23other than for resale.
27The term, with respect to liquor and malt or brewed beverages,
28includes the purchase of liquor from any Pennsylvania Liquor
29Store by any person for any purpose, and the purchase of malt or
30brewed beverages from a manufacturer of malt or brewed
1beverages, distributor or importing distributor by any person
2for any purpose, except purchases from a manufacturer of malt or
3brewed beverages by a distributor or importing distributor or
4purchases from an importing distributor by a distributor within
5the meaning of the Liquor Code. The term does not include any
6purchase of malt or brewed beverages from a retail dispenser or
7any purchase of liquor or malt or brewed beverages from a person
8holding a retail liquor license within the meaning of and
9pursuant to the provisions of the Liquor Code, but includes any
10purchase or acquisition of liquor or malt or brewed beverages
11other than pursuant to the provisions of the Liquor Code.
12(g) "Purchase price."
13(1) The total value of anything paid or delivered, or
14promised to be paid or delivered, whether money or otherwise,
15in complete performance of a sale at retail or purchase at
16retail, without any deduction on account of the cost or value
17of the property sold, cost or value of transportation, cost
18or value of labor or service, interest or discount paid or
19allowed after the sale is consummated, any other taxes
20imposed by the Commonwealth or any other expense except that
21there shall be excluded any gratuity or separately stated
22deposit charge for returnable containers.
23(2) The value of any tangible personal property actually
24taken in trade or exchange in lieu of the whole or any part
25of the purchase price shall be deducted from the purchase
26price. For the purpose of this clause, the amount allowed by
27reason of tangible personal property actually taken in trade
28or exchange shall be considered the value of such property.
1where, because of affiliation of interests between the
2vendor and purchaser, or irrespective of any such
3affiliation, if for any other reason the purchase price
4declared by the vendor or taxpayer on the taxable sale or
5use of such tangible personal property or service is, in
6the opinion of the department, not indicative of the true
7value of the article or service or the fair price
8thereof, the department shall, pursuant to uniform and
9equitable rules, determine the amount of constructive
10purchase price on the basis of which the tax shall be
11computed and levied. The rules shall provide for a
12constructive amount of purchase price for each sale or
13use which would naturally and fairly be charged in an
14arms-length transaction in which the element of common
15interest between the vendor or purchaser is absent or, if
16no common interest exists, any other element causing a
17distortion of the price or value is likewise absent.
18(ii) For the purpose of this clause where a taxable
19sale or purchase at retail transaction occurs between a
20parent and a subsidiary, affiliate or controlled
21corporation of such parent corporation, there shall be a
22rebuttable presumption, that because of the common
23interest, the transaction was not at arms-length.
24(4) Where there is a transfer or retention of possession
25or custody, whether it is termed a rental, lease, service or
26otherwise, of tangible personal property including, but not
27limited to, linens, aprons, motor vehicles, trailers, tires,
28industrial office and construction equipment, and business
29machines the full consideration paid or delivered to the
30vendor or lessor shall be considered the purchase price, even
1though the consideration is separately stated and designated
2as payment for processing, laundering, service, maintenance,
3insurance, repairs, depreciation or otherwise. Where the
4vendor or lessor supplies or provides an employee to operate
5the tangible personal property, the value of the labor
6supplied may be excluded and shall not be considered as part
7of the purchase price if separately stated. There shall also
8be included as part of the purchase price the value of
9anything paid or delivered, or promised to be paid or
10delivered by a lessee, whether money or otherwise, to any
11person other than the vendor or lessor by reason of the
12maintenance, insurance or repair of the tangible personal
13property which a lessee has the possession or custody of
14under a rental contract or lease arrangement.
15(5) (i) With respect to the tax imposed by section
16702(a)(2), on any tangible personal property originally
17purchased by the user of the property six months or
18longer prior to the first taxable use of the property
19within this Commonwealth, the user may elect to pay tax
20on a substituted base determined by considering the
21purchase price of the property for tax purposes to be
22equal to the prevailing market price of similar tangible
23personal property at the time and place of the first use
24within this Commonwealth.
25(ii) The election must be made at the time of filing
26a tax return with the department and reporting the tax
27liability and paying the proper tax due plus all accrued
28penalties and interest, if any, within six months of the
29due date of such report and payment, as provided for by
30section 717(a) and (c).
1(6) The purchase price of employment agency services and
2help supply services shall be the service fee paid by the
3purchaser to the vendor or supplying entity. The term
4"service fee," as used in this subclause, means the total
5charge or fee of the vendor or supplying entity minus the
6costs of the supplied employee which costs are wages,
7salaries, bonuses and commissions, employment benefits,
8expense reimbursements and payroll and withholding taxes, to
9the extent that these costs are specifically itemized or that
10these costs in aggregate are stated in billings from the
11vendor or supplying entity. To the extent that these costs
12are not itemized or stated on the billings, then the service
13fee shall be the total charge or fee of the vendor or
15(7) Unless the vendor separately states that portion of
16the billing which applies to premium cable service as defined
17in clause (ll), the total bill for the provision of all cable
18services shall be the purchase price.
19(8) The purchase price of prebuilt housing shall be 60%
20of the manufacturer's selling price, provided that a
21manufacturer of prebuilt housing who precollects tax from a
22prebuilt housing builder at the time of the sale to the
23prebuilt housing builder shall have the option to collect tax
24on 60% of the selling price or on 100% of the actual cost of
25the supplies and materials used in the manufacture of the
27(h) "Purchaser." Any person who acquires, for a
28consideration, the ownership, custody or possession by sale,
29lease or otherwise of tangible personal property, or who obtains
30services in exchange for a purchase price but not including an
5(1) Any transfer of ownership, custody or possession of
6tangible personal property for a consideration, including the
7grant of a license to use or consume and transactions where
8the possession of the property is transferred but where the
9transferor retains title only as security for payment of the
10selling price whether the transaction is designated as
11bailment lease, conditional sale or otherwise.
12(2) The physical incorporation of tangible personal
13property as an ingredient or constituent into other tangible
14personal property, which is to be sold in the regular course
15of business or the performance of those services described in
16subclauses (2), (3) and (4) of clause (k) upon tangible
17personal property which is to be sold in the regular course
18of business or where the person incorporating the property
19has undertaken at the time of purchase to cause it to be
20transported in interstate commerce to a destination outside
21this Commonwealth. The term includes telecommunications
22services purchased by a cable operator or video programmer
23that are used to transport or deliver cable or video
24programming services which are sold in the regular course of
26(3) The term also includes tangible personal property
27purchased or having a situs within this Commonwealth solely
28for the purpose of being processed, fabricated or
29manufactured into, attached to or incorporated into tangible
30personal property and thereafter transported outside this
1Commonwealth for use exclusively outside this Commonwealth.
2(4) The term does not include any sale of malt or brewed
3beverages by a retail dispenser, or any sale of liquor or
4malt or brewed beverages by a person holding a retail liquor
5license within the meaning of the act of April 12, 1951
6(P.L.90, No.21), known as the Liquor Code.
7(5) The physical incorporation of tangible personal
8property as an ingredient or constituent in the construction
9of foundations for machinery or equipment the sale or use of
10which is excluded from tax under the provisions of paragraphs
11(A), (B), (C) and (D) of subclause (8) of clause (k) and
12subparagraphs (i), (ii), (iii) and (iv) of paragraph (B) of
13subclause (4) of clause (o), whether the foundations at the
14time of construction or transfer constitute tangible personal
15property or real estate.
17(1) Any natural person:
18(i) who is domiciled in this Commonwealth; or
22(2) Any corporation:
1(i) domiciled in this Commonwealth;
6(k) "Sale at retail."
7(1) Any transfer, for a consideration, of the ownership,
8custody or possession of tangible personal property,
9including the grant of a license to use or consume whether
10the transfer is absolute or conditional and by any means the
11transfer is effected.
12(2) The rendition of the service of printing or
13imprinting of tangible personal property for a consideration
14for persons who furnish, either directly or indirectly, the
15materials used in the printing or imprinting.
16(3) The rendition for a consideration of the service of:
24(4) The rendition for a consideration of the service of
25repairing, altering, mending, pressing, fitting, dyeing,
26laundering, drycleaning or cleaning tangible personal
27property other than wearing apparel or shoes, or applying or
28installing tangible personal property as a repair or
29replacement part of other tangible personal property other
30than wearing apparel or shoes for a consideration, regardless
1of whether the services are performed directly or by any
2means other than by coin-operated self-service laundry
3equipment for wearing apparel or household goods and whether
4or not any tangible personal property is transferred in
5conjunction with the activity, except such services as are
6rendered in the construction, reconstruction, remodeling,
7repair or maintenance of real estate.
11(8) Any retention of possession, custody or a license to
12use or consume tangible personal property or any further
13obtaining of services described in subclauses (2), (3) and
14(4) of this clause pursuant to a rental or service contract
15or other arrangement (other than as security). The term does
19(ii) the rendition of services or the transfer of
20tangible personal property, including, but not limited
21to, machinery and equipment and their parts and supplies
22to be used or consumed by the purchaser directly in the
26(B) Farming, dairying, agriculture, horticulture
27or floriculture when engaged in as a business
28enterprise. The term "farming" includes the
29propagation and raising of ranch raised fur-bearing
30animals and the propagation of game birds for
5(C) The producing, delivering or rendering of a
6public utility service, or in constructing,
7reconstructing, remodeling, repairing or maintaining
8the facilities which are directly used in producing,
9delivering or rendering the service.
10(D) Processing as defined in clause (d). The
11exclusions provided in this paragraph or paragraph
12(A), (B) or (C) do not apply to any vehicle required
13registered under 75 Pa.C.S. (relating to vehicles),
14except those vehicles used directly by a public
15utility engaged in business as a common carrier; to
16maintenance facilities; or to materials, supplies or
17equipment to be used or consumed in the construction,
18reconstruction, remodeling, repair or maintenance of
19real estate other than directly used machinery,
20equipment, parts or foundations that may be affixed
21to such real estate. The exclusions provided in this
22paragraph or paragraph (A), (B) or (C) do not apply
23to tangible personal property or services to be used
24or consumed in managerial sales or other
25nonoperational activities, nor to the purchase or use
26of tangible personal property or services by any
27person other than the person directly using the same
28in the operations described in this paragraph or
29paragraph (A), (B) or (C).
30The exclusion provided in paragraph (C) does not apply to:
1(i) construction materials, supplies or equipment
2used to construct, reconstruct, remodel, repair or
3maintain facilities not used directly by the purchaser in
4the production, delivering or rendition of public utility
9(iii) tools and equipment used but not installed in
10the maintenance of facilities used directly in the
11production, delivering or rendition of a public utility
12service. The exclusions provided in paragraphs (A), (B),
13(C) and (D) do not apply to the services enumerated in
14clauses (k)(11) through (18) and (w) through (kk), except
15that the exclusion provided in this subclause for
16farming, dairying and agriculture shall apply to the
17service enumerated in clause (z).
18(9) Where tangible personal property or services are
19utilized for purposes constituting a sale at retail and for
20purposes excluded from the definition of "sale at retail," it
21shall be presumed that the tangible personal property or
22services are utilized for purposes constituting a sale at
23retail and subject to tax unless the user proves to the
24department that the predominant purposes for which such
25tangible personal property or services are utilized do not
26constitute a sale at retail.
27(10) The term, with respect to liquor and malt or brewed
28beverages, includes the sale of liquor by any Pennsylvania
29liquor store to any person for any purpose, and the sale of
30malt or brewed beverages by a manufacturer of malt or brewed
1beverages, distributor or importing distributor to any person
2for any purpose, except sales by a manufacturer of malt or
3brewed beverages to a distributor or importing distributor or
4sales by an importing distributor to a distributor within the
5meaning of the act of April 12, 1951 (P.L.90, No.21), known
6as the Liquor Code. The term does not include any sale of
7malt or brewed beverages by a retail dispenser or any sale of
8liquor or malt or brewed beverages by a person holding a
9retail liquor license within the meaning of and pursuant to
10the provisions of the Liquor Code, but shall include any sale
11of liquor or malt or brewed beverages other than pursuant to
12the provisions of the Liquor Code.
1(20) Except as otherwise provided under section 704, the
2rendition for a consideration of any service when the primary
3objective of the purchaser is the receipt of any benefit of
4the service performed, as distinguished from the receipt of
5property. The following provisions shall apply:
12(iii) With respect to services performed in this
13Commonwealth for a recipient or user of the services
14located in another state in which the services, had they
15been performed in that state, would not be subject to a
16sales or use tax under the laws of that state, then no
17tax may be imposed under this chapter.
21(l) "Storage." Any keeping or retention of tangible
22personal property within this Commonwealth for any purpose
23including the interim keeping, retaining or exercising any right
24or power over such tangible personal property. This term is in
25no way limited to the provision of self-storage service.
26(m) "Tangible personal property." Corporeal personal
27property including, but not limited to, goods, wares,
28merchandise, steam and natural and manufactured and bottled gas
29for non-residential use, electricity for non-residential use,
30prepaid telecommunications, premium cable or premium video
1programming service, spirituous or vinous liquor and malt or
2brewed beverages and soft drinks, interstate telecommunications
3service originating or terminating in this Commonwealth and
4charged to a service address in this Commonwealth, intrastate
5telecommunications service with the exception of:
8(2) Charges for telephone calls paid for by inserting
9money into a telephone accepting direct deposits of money to
10operate, provided further, the service address of any
11intrastate telecommunications service is deemed to be within
12this Commonwealth or within a political subdivision,
13regardless of how or where billed or paid.
14In the case of any interstate or intrastate telecommunications
15service, any charge paid through a credit or payment mechanism
16which does not relate to a service address, such as a bank,
17travel, credit or debit card, but not including prepaid
18telecommunications, is deemed attributable to the address of
19origination of the telecommunications service.
23(1) The exercise of any right or power incidental to the
24ownership, custody or possession of tangible personal
25property and includes, but is not limited to, transportation,
26storage or consumption.
27(2) The obtaining by a purchaser of the service of
28printing or imprinting of tangible personal property when the
29purchaser furnishes, either directly or indirectly, the
30articles used in the printing or imprinting.
1(3) The obtaining by a purchaser of the services of:
9(4) The obtaining by a purchaser of the service of
10repairing, altering, mending, pressing, fitting, dyeing,
11laundering, drycleaning or cleaning tangible personal
12property other than wearing apparel or shoes or applying or
13installing tangible personal property as a repair or
14replacement part of other tangible personal property,
15including, but not limited to, wearing apparel or shoes,
16regardless of whether the services are performed directly or
17by any means other than by means of coin-operated self-
18service laundry equipment for wearing apparel or household
19goods, and regardless of whether any tangible personal
20property is transferred to the purchaser in conjunction with
21the activity. The term "use" does not include:
22(A) Any tangible personal property acquired and
23kept, retained or over which power is exercised
24within this Commonwealth on which the taxing of the
25storage, use or other consumption thereof is
26expressly prohibited by the Constitution of the
27United States or which is excluded from tax under
28other provisions of this chapter.
5(i) The manufacture of tangible personal property.
6(ii) Farming, dairying, agriculture, horticulture or
7floriculture when engaged in as a business enterprise.
8The term includes the propagation and raising of ranch-
9raised furbearing animals and the propagation of game
10birds for commercial purposes by holders of propagation
11permits issued under 34 Pa.C.S. (relating to game) and
12the propagation and raising of horses to be used
13exclusively for commercial racing activities.
14(iii) The producing, delivering or rendering of a
15public utility service, or in constructing,
16reconstructing, remodeling, repairing or maintaining the
17facilities which are directly used in producing,
18delivering or rendering such service.
19(iv) Processing as defined in subclause (d).
20The exclusions provided in subparagraphs (i), (ii), (iii)
21and (iv) do not apply to any vehicle required to be
22registered under 75 Pa.C.S. (relating to vehicles) except
23those vehicles directly used by a public utility engaged
24in the business as a common carrier; to maintenance
25facilities; or to materials, supplies or equipment to be
26used or consumed in the construction, reconstruction,
27remodeling, repair or maintenance of real estate other
28than directly used machinery, equipment, parts or
29foundations therefor that may be affixed to such real
30estate. The exclusions provided in subparagraphs (i),
1(ii), (iii) and this subparagraph do not apply to
2tangible personal property or services to be used or
3consumed in managerial sales or other nonoperational
4activities, nor to the purchase or use of tangible
5personal property or services by any person other than
6the person directly using the same in the operations
7described in subparagraphs (i), (ii), (iii) and this
8subparagraph. The exclusion provided in subparagraph
9(iii) does not apply to:
10(A) construction materials, supplies or
11equipment used to construct, reconstruct, remodel,
12repair or maintain facilities not used directly by
13the purchaser in the production, delivering or
14rendition of public utility service; or
19The exclusion provided in subparagraphs (i), (ii), (iii)
20and this subparagraph does not apply to the services
21enumerated in clauses (9) through (16) and (w) through
22(kk), except that the exclusion provided in subparagraph
23(ii) for farming, dairying and agriculture shall apply to
24the service enumerated in clause (z).
25(5) Where tangible personal property or services are
26utilized for purposes constituting a use, and for purposes
27excluded from the definition of "use," it shall be presumed
28that the property or services are utilized for purposes
29constituting a sale at retail and subject to tax unless the
30user proves to the department that the predominant purposes
3(6) The term, with respect to liquor and malt or brewed
4beverages, includes the purchase of liquor from any
5Pennsylvania Liquor Store by any person for any purpose and
6the purchase of malt or brewed beverages from a manufacturer
7of malt or brewed beverages, distributor or importing
8distributor by any person for any purpose, except purchases
9from a manufacturer of malt or brewed beverages by a
10distributor or importing distributor, or purchases from an
11importing distributor by a distributor within the meaning of
12the act of April 12, 1951 (P.L.90, No.21), known as the
13Liquor Code. The term does not include any purchase of malt
14or brewed beverages from a retail dispenser or any purchase
15of liquor or malt or brewed beverages from a person holding a
16retail liquor license within the meaning of and pursuant to
17the provisions of the Liquor Code, but includes the exercise
18of any right or power incidental to the ownership, custody or
19possession of liquor or malt or brewed beverages obtained by
20the person exercising the right or power in any manner other
21than pursuant to the provisions of the Liquor Code.
22(7) The use of tangible personal property purchased at
23retail on which the services described in subclauses (2), (3)
24and (4) of this clause have been performed shall be deemed to
25be a use of said services by the person using the property.
27(9) The obtaining by the purchaser of lobbying services.
30(11) The obtaining by the purchaser of secretarial or
12(17) The obtaining by a construction contractor of
13tangible personal property or services provided to tangible
14personal property which will be used pursuant to a
15construction contract regardless of whether the tangible
16personal property or services are transferred.
19(19) Except as otherwise provided under section 704, the
20obtaining by the purchaser of any service, not otherwise set
21forth in this definition, when the primary objective of the
22purchaser is the receipt of any benefit of the service
23performed, as distinguished from the receipt of property. The
24following provisions shall apply:
1(iii) With respect to services performed in this
2Commonwealth for a recipient or user of the services
3located in another state in which the services, had they
4been performed in that state, would not be subject to a
5sales or use tax under the laws of that state, then no
6tax may be imposed under this chapter.
10(p) "Vendor." Any person maintaining a place of business in
11this Commonwealth, selling or leasing tangible personal
12property, or rendering services, the sale or use of which is
13subject to the tax imposed by this chapter but not including any
14employee who in the ordinary scope of employment renders
15services to his employer in exchange for wages and salaries.
17(r) "Gratuity." Any amount paid or remitted for services
18performed in conjunction with any sale of food or beverages, or
19hotel or motel accommodations which amount is in excess of the
20charges and the tax for such food, beverages or accommodations
21regardless of the method of billing or payment.
22(s) "Commercial aircraft operator." A person, excluding a
23scheduled airline who engages in any or all of the following:
24charter of aircraft, leasing of aircraft, aircraft sales,
25aircraft rental, flight instruction, air freight or any other
26flight activities for compensation.
27(t) "Transient vendor."
28(1) Any person who:
1this Commonwealth tangible personal property the sale or
2use of which is subject to the tax imposed by this
3chapter or comes into this Commonwealth to perform
4services the sale or use of which is subject to the tax
5imposed by this chapter;
9(iii) does not maintain an established office,
10distribution house, saleshouse, warehouse, service
11enterprise, residence from which business is conducted or
12other place of business within this Commonwealth.
17(3) The term does not include a person who handcrafts
18items for sale at special events, including, but not limited
19to, fairs, carnivals, art and craft shows and other festivals
20and celebrations within this Commonwealth.
21(u) "Promoter." A person who either, directly or
22indirectly, rents, leases or otherwise operates or grants
23permission to any person to use space at a show for the display
24for sale or for the sale of tangible personal property or
25services subject to tax under section 702.
26(v) "Show." An event, the primary purpose of which involves
27the display or exhibition of any tangible personal property or
28services for sale, including, but not limited to, a flea market,
29antique show, coin show, stamp show, comic book show, hobby
30show, automobile show, fair or any similar show, whether held
7(x) "Adjustment services, collection services or credit
8reporting services." Providing collection or adjustments of
9accounts receivable or mercantile or consumer credit reporting,
10including, but not limited to, services of the type provided by
11adjustment bureaus or collection agencies, consumer or
12mercantile credit reporting bureaus, credit bureaus or agencies,
13credit clearinghouses or credit investigation services. The term
14does not include providing credit card service with collection
15by a central agency, providing debt counseling or adjustment
16services to individuals or billing or collection services
17provided by local exchange telephone companies.
18(y) "Secretarial or editing services." Providing services
19which include, but are not limited to, editing, letter writing,
20proofreading, resume writing, typing or word processing. The
21term does not include court reporting and stenographic services.
22(z) "Disinfecting or pest control services." Providing
23disinfecting, termite control, insect control, rodent control or
24other pest control services. The term includes, but is not
25limited to, deodorant servicing of rest rooms, washroom
26sanitation service, rest room cleaning service, extermination
27service or fumigating service. As used in this clause, the term
28"fumigating service" does not include the fumigation of
29agricultural commodities or containers used for agricultural
30commodities. As used in this clause, the term "insect control"
3(aa) "Building maintenance or cleaning services." Providing
4services which include, but are not limited to, janitorial, maid
5or housekeeping service, office or interior building cleaning or
6maintenance service, window cleaning service, floor waxing
7service, lighting maintenance service such as bulb replacement,
8cleaning, chimney cleaning service, acoustical tile cleaning
9service, venetian blind cleaning, cleaning and maintenance of
10telephone booths or cleaning and degreasing of service stations.
11The term does not include: repairs on buildings and other
12structures; the maintenance or repair of boilers, furnaces and
13residential air conditioning equipment or their parts; the
14painting, wallpapering or applying other like coverings to
15interior walls, ceilings or floors; or the exterior painting of
17(bb) "Employment agency services." Providing employment
18services to a prospective employer or employee other than
19employment services provided by theatrical employment agencies
20and motion picture casting bureaus. The term includes, but is
21not limited to, services of the type provided by employment
22agencies, executive placing services and labor contractor
23employment agencies other than farm labor.
24(cc) "Help supply services." Providing temporary or
25continuing help where the help supplied is on the payroll of the
26supplying person or entity, but is under the supervision of the
27individual or business to which help is furnished. The term
28includes, but is not limited to, service of a type provided by
29labor and manpower pools, employee leasing services, office help
30supply services, temporary help services, usher services,
1modeling services or fashion show model supply services. The
2term does not include: providing farm labor services or human
3health-related services, including nursing, home health care and
4personal care. As used in this clause, "personal care" shall
5include providing at least one of the following types of
6assistance to persons with limited ability for self-care:
7(1) dressing, bathing or feeding;
8(2) supervising self-administered medication;
23(kk) "Self-storage service." Providing a building, a room
24in a building or a secured area within a building with separate
25access provided for each purchaser of self-storage service,
26primarily for the purpose of storing personal property. The term
27does not include service involving:
28(1) safe deposit boxes by financial institutions;
29(2) storage in refrigerator or freezer units;
30(3) storage in commercial warehouses;
1(4) facilities for goods distribution; and
4(ll) "Cable or video programming service." Cable television
5services, video programming services, community antenna
6television services or any other distribution of television,
7video, audio or radio services which is transmitted with or
8without the use of wires to purchasers.
9If a purchaser receives or agrees to receive cable or video
10programming service, then the following charges are included in
11the purchase price: charges for installation or repair of any
12cable or video programming service, upgrade to include
13additional premium cable or premium video programming service,
14downgrade to exclude all or some premium cable or premium video
15programming service, additional cable outlets in excess of ten
16or any other charge or fee related to cable or video programming
17services. The term does not apply to: transmissions by public
18television, public radio services or official Federal, State or
19local government cable services; local origination programming
20which provides a variety of public service programs unique to
21the community, programming which provides coverage of public
22affairs issues which are presented without commentary or
23analysis, including United States Congressional proceedings, or
24programming which is substantially related to religious
25subjects; or subscriber charges for access to a video dial tone
26system or charges by a common carrier to a video programmer for
27the transport of video programming.
18(5) alarms limited to fire, security and detection;
23(8) laboratory system;
24(9) cathodic protection system; or
25(10) furniture, cabinetry and kitchen equipment.
26The term includes boilers, chillers, air cleaners, humidifiers,
27fans, switchgear, pumps, telephones, speakers, horns, motion
28detectors, dampers, actuators, grills, registers, traffic
29signals, sensors, card access devices, guardrails, medial
30devices, floor troughs and grates and laundry equipment,
1together with integral coverings and enclosures, regardless of
2whether: the item constitutes a fixture or is otherwise affixed
3to the real estate; damage would be done to the item or its
4surroundings on removal; or the item is physically located
5within a real estate structure. The term does not include
6guardrail posts, pipes, fittings, pipe supports and hangers,
7valves, underground tanks, wire, conduit, receptacle and
8junction boxes, insulation, ductwork and coverings.
12(1) a charitable organization, a volunteer firemen's
13organization, a nonprofit educational institution or a
14religious organization for religious purposes and which
15qualifies as an institution of purely public charity under
16the act of November 26, 1997 (P.L.508, No.55), known as the
17Institutions of Purely Public Charity Act;
18(2) the United States; or
21The term includes building machinery and equipment; developed or
22undeveloped land; streets; roads; highways; parking lots;
23stadiums and stadium seating; recreational courts; sidewalks;
24foundations; structural supports; walls; floors; ceilings;
25roofs; doors; canopies; millwork; elevators; windows and
26external window coverings; outdoor advertising boards or signs;
27airport runways; bridges; dams; dikes; traffic control devices,
28including traffic signs; satellite dishes; antennas; guardrail
29posts; pipes; fittings; pipe supports and hangers; valves;
30underground tanks; wire; conduit; receptacle and junction boxes;
1insulation; ductwork and coverings; and any structure or item
2similar to any of the foregoing, regardless of whether the
3structure or item constitutes a fixture or is affixed to the
4real estate; or damage would be done to the structure or item or
5its surroundings on removal.
6(rr) "Telecommunications service." Any one-way transmission
7or any two-way, interactive transmission of sounds, signals or
8other intelligence converted to like form which effects or is
9intended to effect meaningful communications by electronic or
10electromagnetic means via wire, cable, satellite, light waves,
11microwaves, radio waves or other transmission media. The term
12includes all types of telecommunication transmissions, local,
13toll, wide-area or any other type of telephone service; private
14line service; telegraph service; radio repeater service;
15wireless communication service; personal communications system
16service; cellular telecommunication service; specialized mobile
17radio service; stationary two-way radio service; and paging
18service. The term does not include any of the following:
25(i) The transport over the Internet or any
26proprietary network using the Internet protocol of
27telephone calls, facsimile transmissions or other
28telecommunications traffic to or from end users on the
29public switched telephone network if the signal sent from
30or received by an end user is not in an Internet
5(4) Mobile telecommunications services.
9(tt) "Commercial racing activities." Any of the following:
16(uu) "Prepaid telecommunications." A tangible item
17containing a prepaid authorization number that can be used
18solely to obtain telecommunications service, including any
19renewal or increases in the prepaid amount.
20(vv) "Prebuilt housing." Either of the following:
21(1) Manufactured housing, including mobile homes, which
22bears a label as required by and referred to in the act of
23November 17, 1982 (P.L.676, No.192), known as the
24Manufactured Housing Construction and Safety Standards
3(yy) "Prebuilt housing sale." A sale of prebuilt housing to
4a prebuilt housing purchaser, including a sale to a landlord,
5without regard to whether the person making the sale is
6responsible for installing the prebuilt housing or whether the
7prebuilt housing becomes a real estate structure upon
8installation. Temporary installation by a prebuilt housing
9builder for display purposes of a unit held for resale shall not
10be considered occupancy for residential purposes.
14(aaa) "Mobile telecommunications service." Mobile
15telecommunications service as that term is defined in the Mobile
16Telecommunications Sourcing Act (Public Law 106-252, 4 U.S.C. §
17116 et seq.).
20(ccc) "Prepaid mobile telecommunications service." Mobile
21telecommunications service which is paid for in advance and
22which enables the origination of calls using an access number,
23authorization code or both, regardless of whether manually or
24electronically dialed, if the remaining amount of units of the
25prepaid mobile telecommunications service is known by the
26service provider of the prepaid mobile telecommunications
27service on a continuous basis. The term does not include the
28advance purchase of mobile telecommunications service if the
29purchase is pursuant to a service contract between the service
30provider and customer and if the service contract requires the
7(2) where there are at least 200 telephone lines; and
11(i) customer service and support;
12(ii) technical assistance;
13(iii) help desk service;
14(iv) providing information;
15(v) conducting surveys;
16(vi) revenue collections; or
17(vii) receiving orders or reservations.
21(eee) "Dental services." The general and usual services
22rendered and care administered by doctors of dental medicine or
23doctors of dental surgery, as defined in the act of May 1, 1933
24(P.L.216, No.76), known as The Dental Law.
25(fff) "Physician services." The general and usual services
26rendered and care administered by medical doctors, as defined in
27the act of December 20, 1985 (P.L.457, No.112), known as the
28Medical Practice Act of 1985, or doctors of osteopathy, as
29defined in the act of October 5, 1978 (P.L.1109, No.261), known
30as the Osteopathic Medical Practice Act.
1(ggg) "Clothing." All vesture, wearing apparel, raiments,
2garments, footwear and other articles of clothing, including
3clothing patterns and items that are to be a component part of
4clothing, worn or carried on or about the human body including,
5but not limited to, all accessories, ornamental wear, formal day
6or evening apparel and articles made of fur on the hide or pelt
7or any material imitative of fur and articles of which such fur,
8real, imitation or synthetic, is the component material of chief
9value and sporting goods and clothing not normally used or worn
10when not engaged in sports.
13(1) Soft drinks.
21(ii) from persons engaged in the business of
22operating establishments from which ready-to-eat food and
23beverages are sold, including, but not limited to,
24restaurants, cafes, lunch counters, private and social
25clubs, taverns, dining cars, hotels, night clubs, fast
26food operations, pizzerias, fairs, carnivals, lunch
27carts, ice cream stands, snack bars, cafeterias, employee
28cafeterias, theaters, stadiums, arenas, amusement parks,
29carryout shops, coffee shops and other establishments
30whether mobile or immobile.
1For purposes of this clause, a bakery, a pastry shop, a donut
2shop, a delicatessen, a grocery store, a supermarket, a farmer's
3market, a convenience store or a vending machine shall not be
4considered an establishment from which food or beverages ready
5to eat are sold except for the sale of meals, sandwiches, food
6from salad bars, hand-dipped or hand-served ice-based products
7including ice cream and yogurt, hot soup, hot pizza and other
8hot food items, brewed coffee and hot beverages. For purposes of
9this subclause, beverages shall not include malt and brewed
10beverages and spiritous and vinous liquors but shall include
13SALES AND USE TAX
14Section 702. Imposition of tax.
17(1) There is hereby imposed on each separate sale at
18retail of tangible personal property or services in this
19Commonwealth a tax of 7% of the purchase price, which tax
20shall be collected by the vendor from the purchaser, and
21shall be paid over to the Commonwealth as provided in this
23(2) There is hereby imposed on the use in this
24Commonwealth of tangible personal property purchased at
25retail and on those services purchased at retail a tax of 7%
26of the purchase price, which tax shall be paid to the
27Commonwealth by the person who makes such use as provided
28under this chapter, except that the tax shall not be paid to
29the Commonwealth by the person where the person has paid the
30tax imposed by paragraph (1) or has paid the tax imposed by
1this subsection to the vendor with respect to the use.
3(c) Telecommunications service.--
4(1) Notwithstanding any other provisions of this
5chapter, the tax with respect to telecommunications service
6within the meaning of "tangible personal property" in section
7701 shall be computed at the rate of 7% on the total amount
8charged to customers for the services, irrespective of
9whether such charge is based on a flat rate or on a message
11(2) A telecommunications service provider shall have no
12responsibility or liability to the Commonwealth for billing,
13collecting or remitting taxes that apply to services,
14products or other commerce sold over telecommunications lines
15by third-party vendors.
16(3) To prevent actual multistate taxation of interstate
17telecommunications service, any taxpayer, on proof that the
18taxpayer has paid a similar tax to another state on the same
19interstate telecommunications service, shall be allowed a
20credit against the tax imposed by this section on the same
21interstate telecommunications service to the extent of the
22amount of the tax properly due and paid to the other state.
23(d) Coin-operated vending machines.--Notwithstanding any
24other provisions of this chapter, the sale or use of food and
25beverages dispensed by means of coin-operated vending machines
26shall be taxed at the rate of 7% of the receipts collected from
27any coin-operated vending machine which dispenses food and
28beverages that were previously taxable.
29(e) Prepaid telecommunications.--
30(1) Notwithstanding any provisions of this chapter, the
4(2) The sale or use of prepaid telecommunications not
5evidenced by the transfer of tangible personal property shall
6be subject to the tax imposed by subsection (a) and shall be
7deemed to occur at the purchaser's billing address.
8(3) (i) Notwithstanding paragraph (2), the sale or use
9of prepaid telecommunications service not evidenced by
10the transfer of tangible personal property shall be taxed
11at the rate of 7% of the receipts collected on each sale
12if the service provider elects to collect the tax imposed
13by this chapter on receipts of each sale.
18(e.1) Prepaid mobile telecommunications service.--
19(1) Notwithstanding any other provision of this chapter,
20the sale or use of prepaid mobile telecommunications service
21evidenced by the transfer of tangible personal property shall
22be subject to the tax imposed by subsection (a).
23(2) The sale or use of prepaid mobile telecommunications
24service not evidenced by the transfer of tangible personal
25property shall be subject to the tax imposed by subsection
26(a) and shall be deemed to occur at the purchaser's billing
27address or the location associated with the mobile telephone
28number or the point of sale, whichever is applicable.
1evidenced by the transfer of tangible personal property
2shall be taxed at the rate of 7% of the receipts
3collected on each sale if the service provider elects to
4collect the tax imposed by this chapter on receipts of
10(f) Prebuilt housing.--
11(1) Notwithstanding any other provision of this chapter,
12tax with respect to sales of prebuilt housing shall be
13imposed on the prebuilt housing builder at the time of the
14prebuilt housing sale within this Commonwealth and shall be
15paid and reported by the prebuilt housing builder to the
16department in the time and manner provided in this chapter.
20(3) In any case where prebuilt housing is purchased and
21the tax is not paid by the prebuilt housing builder or
22precollected by the manufacturer, the prebuilt housing
23purchaser shall remit tax directly to the department if the
24prebuilt housing is used in this Commonwealth without regard
25to whether the prebuilt housing becomes a real estate
27(g) Home service providers.--
1use of mobile telecommunications services which are deemed to
2be provided to a customer by a home service provider under 4
3U.S.C. § 117 (relating to sourcing rules) shall be subject to
4the tax of 7% of the purchase price, which tax shall be
5collected by the home service provider from the customer, and
6shall be paid over to the Commonwealth as provided in this
7chapter if the customer's place of primary use is located
8within this Commonwealth, regardless of where the mobile
9telecommunications services originate, terminate or pass
14Section 703. Computation of tax.
15(a) Table to be published.--Within 60 days of the effective
16date of this section, the department shall prepare and publish
17as a notice in the Pennsylvania Bulletin a table setting forth
18the amount of tax imposed under section 702 for purchase prices
19that are less than $1.
24EXCLUSIONS FROM SALES AND USE TAX
25Section 704. Exclusions from tax.
1property required under either Federal law or laws of this
2Commonwealth to be registered or licensed) or services sold
3by or purchased from a person not a vendor in an isolated
4transaction or sold by or purchased from a person who is a
5vendor but is not a vendor with respect to the tangible
6personal property or services sold or purchased in such
7transaction, provided that inventory and stock in trade so
8sold or purchased shall not be excluded from the tax by the
9provisions of this subsection.
10(2) The use of tangible personal property purchased by a
11nonresident person outside of, and brought into this
12Commonwealth for use therein for a period not to exceed seven
13days, or for any period of time when such nonresident is a
14tourist or vacationer and, in either case not consumed within
16(3) (i) The use of tangible personal property purchased
17outside this Commonwealth for use outside this
18Commonwealth by a then nonresident natural person or a
19business entity not actually doing business within this
20Commonwealth, who later brings the tangible personal
21property into this Commonwealth in connection with the
22person's or entity's establishment of a permanent
23business or residence in this Commonwealth, provided that
24the property was purchased more than six months prior to
25the date it was first brought into this Commonwealth or
26prior to the establishment of the business or residence,
27whichever first occurs.
12(10) (i) The sale at retail to or use by any charitable
13organization, volunteer firefighters' organization or
14nonprofit educational institution or a religious
15organization for religious purposes of tangible personal
16property or services other than pursuant to a
18(ii) This paragraph shall not apply with respect to
19any tangible personal property or services used in any
20unrelated trade or business carried on by the
21organization or institution or with respect to any
22materials, supplies and equipment used and transferred to
23the organization or institution in the construction,
24reconstruction, remodeling, renovation, repairs and
25maintenance of any real estate structure, other than
26building machinery and equipment, except materials and
27supplies when purchased by the organization or
28institution for routine maintenance and repairs.
3(12) (i) The sale at retail to, or use by the United
4States, this Commonwealth or its instrumentalities or
5political subdivisions, nonpublic schools, charter
6schools, cyber charter schools or vocational schools of
7tangible personal property or services.
12(iii) As used in this paragraph, the terms
13"nonpublic school," "charter school," "cyber charter
14school," "vocational school," "supervisor" and "home
15education program" shall have the meanings given to them
16in the Public School Code of 1949.
17(13) The sale at retail, or use of wrapping paper,
18wrapping twine, bags, cartons, tape, rope, labels,
19nonreturnable containers and all other wrapping supplies,
20when such use is incidental to the delivery of any personal
21property, except that any charge for wrapping or packaging
22shall be subject to tax at the rate imposed by section 702.
27(15) Sale at retail of tangible personal property or
28services used or consumed in building, rebuilding, repairing
29and making additions to or replacements in and upon vessels
30designed for commercial use of registered tonnage of 50 tons
4(16) The sale at retail or use of tangible personal
5property or services to be used or consumed for ship cleaning
6or maintenance or as fuel, supplies, ships' equipment, ships'
7stores or sea stores on vessels designed for commercial use
8of registered tonnage of 50 tons or more to be operated
9principally outside the limits of this Commonwealth.
10(17) The sale at retail or use of prescription
11medicines, drugs or medical supplies, crutches and
12wheelchairs for the use of persons with disabilities and
13invalids, artificial limbs, artificial eyes and artificial
14hearing devices when designed to be worn on the person of the
15purchaser or user, false teeth and materials used by a
16dentist in dental treatment, eyeglasses when especially
17designed or prescribed by an ophthalmologist, oculist or
18optometrist for the personal use of the owner or purchaser
19and artificial braces and supports designed solely for the
20use of persons with disabilities or any other therapeutic,
21prosthetic or artificial device designed for the use of a
22particular individual to correct or alleviate a physical
23incapacity, including, but not limited to, hospital beds,
24iron lungs and kidney machines.
25(18) The sale at retail or use of coal.
1(24) The sale at retail or use of motor vehicles,
2trailers and semitrailers, or bodies attached to the chassis
3thereof, sold to a nonresident of this Commonwealth to be
4used outside this Commonwealth and which are registered in a
5state other than this Commonwealth within 20 days after
6delivery to the vendee.
7(25) The sale at retail or use of water.
8(26) The sale at retail or use of all vesture, wearing
9apparel, raiments, garments, footwear and other articles of
10clothing with a purchase price of less than $50, including
11clothing patterns and items that are to be a component part
12of clothing, worn or carried on or about the human body but
13all accessories, ornamental wear, formal day or evening
14apparel and articles made of fur on the hide or pelt or any
15material imitative of fur and articles of which such fur,
16real, imitation or synthetic, is the component material of
17chief value, but only if such value is more than three times
18the value of the next most valuable component material, and
19sporting goods and clothing not normally used or worn when
20not engaged in sports shall not be excluded from the tax.
23(29) The sale at retail or use of food and beverages
24that are federally approved items for the Women, Infants and
25Children Program under section 17 of the Child Nutrition Act
26of 1966 (Public Law 89-642, 42 U.S.C. § 1786).
30(ii) This paragraph shall not include the sale at
1retail or use of mail order catalogs and direct mail
2advertising literature or materials, including electoral
3literature or materials, such as envelopes, address
4labels and a one-time license to use a list of names and
5mailing addresses for each delivery of direct mail
6advertising literature or materials, including electoral
7literature or materials, through the United States Postal
21(40) The sale at retail of supplies and materials to
22tourist promotion agencies, which receive grants from the
23Commonwealth, for distribution to the public as promotional
24material or the use of such supplies and materials by said
25agencies for said purposes.
30(43) The sale at retail or use of buses to be used
3(44) The sale at retail or use of firewood.
17"Nonprofit association." An entity which is
18organized as a nonprofit corporation or nonprofit
19unincorporated association under the laws of this
20Commonwealth or the United States or any entity which is
21authorized to do business in this Commonwealth as a
22nonprofit corporation or unincorporated association under
23the laws of this Commonwealth, including, but not limited
24to, youth or athletic associations, volunteer fire,
25ambulance, religious, charitable, fraternal, veterans,
26civic, or any separately chartered auxiliary of the
27foregoing, if organized and operated on a nonprofit
1formally recognized as a sport by the United States
2Olympic Committee as specified by and under the
3jurisdiction of the Amateur Sports Act of 1978 (Public
4Law 95-606, 36 U.S.C. Ch. 2205), the Amateur Athletic
5Union or the National Collegiate Athletic Association.
6The term shall be limited to a program or that portion of
7a program that is organized for recreational purposes and
8whose activities are substantially for such purposes and
9which is primarily for participants who are 18 years of
10age or younger or whose 19th birthday occurs during the
11year of participation or the competitive season,
12whichever is longer. There shall, however, be no age
13limitation for programs operated for persons with
14physical handicaps or persons with mental retardation.
15"Support." The funds raised from sales are used to
16pay the expenses of a sports program or the nonprofit
17association sells the food and beverages at a location
18where a sports program is being conducted under this
19chapter or the Tax Reform Code of 1971.
21(51) The sale at retail or use of interior office
22building cleaning services but only as relates to the costs
23of the supplied employee, which costs are wages, salaries,
24bonuses and commissions, employment benefits, expense
25reimbursements and payroll and withholding taxes, to the
26extent that these costs are specifically itemized or that
27these costs in aggregate are stated in billings from the
28vendor or supplying entity.
3(56) The sale at retail or use of tangible personal
4property or services used, transferred or consumed in
5installing or repairing equipment or devices designed to
6assist persons in ascending or descending a stairway when:
19(i) transferred pursuant to a construction contract
20for any charitable organization, volunteer firemen's
21organization, nonprofit educational institution or
22religious organization for religious purposes, provided
23that the building machinery and equipment and services
24thereto are not used in any unrelated trade or business;
30(59) The sale at retail or use of molds and related mold
6(62) The sale at retail or use of tangible personal
7property or services which are directly used in farming,
8dairying or agriculture when engaged in as a business
9enterprise, regardless of whether the sale is made to the
10person directly engaged in the business enterprise or to a
11person contracting with the person directly engaged in the
12business enterprise for the production of food.
14(64) The sale at retail to or use by a construction
15contractor, employed by a public school district pursuant to
16a construction contract, of any materials and building
17supplies which, during construction or reconstruction, are
18made part of any public school building utilized for
19instructional classroom education within this Commonwealth,
20if the construction or reconstruction:
1shall have the following meanings:
2(i) "court" includes:
12(iii) "official document" means a record as defined
13in section 102 of the Right-to-Know Law. The term shall
14include notes of court testimony, deposition transcripts,
15driving records, accident reports, birth and death
16certificates, deeds, divorce decrees and other similar
18(67) The sale at retail or use of repair or replacement
19parts, including the installation of those parts, exclusively
20for use in helicopters and similar rotorcraft or in
21overhauling or rebuilding of helicopters and similar
22rotorcraft or helicopters and similar rotorcraft components.
30(71) The sale at retail of insurance premiums.
3(73) An investment or gain on an investment, including,
4but not limited to, bank deposits, stocks and bonds,
5including any commissions, maintenance costs and other
6charges, which commissions, maintenance costs and other
7charges related to the making of such investment or a gain
9(74) The rental of real property.
10(75) The sale at retail of tuition.
14(i) Legal services.
17(iii) Accounting, auditing and bookkeeping services.
18(iv) Specialized design services.
21(vi) Services to building and dwellings.
24(viii) Scientific research and development services.
25(ix) Information services.
26(x) Administrative services.
29(xii) Parking lot and garage services.
30(77) The sale at retail of legal services relating to
1domestic relations matters or criminal matters.
4(79) The sale at retail to or use by a person of legal
5services rendered by an attorney where the payment is made
6pursuant to a contingency fee based upon a percentage of the
7amount recovered with respect to a legal claim or dispute.
8(80) The sale at retail to or use by a person of the
9services rendered by or under the supervision of a licensed
10real estate broker, associate broker or salesperson in
11connection with any aspect of the sale, lease or acquisition
12of any interest in real property.
9Section 705. Alternate imposition of tax.
10(a) General rule.--If any person actively and principally
11engaged in the business of selling new or used motor vehicles,
12trailers or semitrailers, and registered with the department in
13the "dealer's class," acquires a motor vehicle, trailer or
14semitrailer for the purpose of resale, and prior to such resale,
15uses the motor vehicle, trailer or semitrailer for a taxable use
16under this chapter or the Tax Reform Code of 1971, the person
17may pay a tax equal to 7% of the fair rental value of the motor
18vehicle, trailer or semitrailer during use.
19(b) Aircraft.--A commercial aircraft operator who acquires
20an aircraft for the purpose of resale, or lease, or is entitled
21to claim another valid exemption at the time of purchase, and
22subsequent to the purchase, periodically uses the same aircraft
23for a taxable use under this chapter or the Tax Reform Code of
241971, may elect to pay a tax equal to 7% of the fair rental
25value of the aircraft during such use.
29Section 706. Credit against tax.
30(a) Tax paid to another state.--
1(1) A credit against the tax imposed by section 702
2shall be granted with respect to tangible personal property
3or services purchased for use outside the Commonwealth equal
4to the tax paid to another state by reason of the imposition
5by the other state of a tax similar to the tax imposed by
7(2) No credit under paragraph (1) shall be granted
8unless the other state grants substantially similar tax
9relief by reason of the payment of tax under this chapter or
10under the Tax Reform Code of 1971.
11(b) Telecommunications services.--A credit against the tax
12imposed by section 702 on telecommunications services shall be
13granted to a call center for gross receipts tax paid by a
14telephone company on the receipts derived from the sale of
15incoming and outgoing interstate telecommunications services to
16the call center under section 1101(a)(2) of the Tax Reform Code
17of 1971. The following apply:
18(1) A telephone company, on request, shall notify a call
19center of the amount of gross receipts tax paid by the
20telephone company on the receipts derived from the sale of
21incoming and outgoing interstate telecommunications services
22to the call center.
26(3) By February 15, a taxpayer must submit an
27application to the department for gross receipts tax paid on
28the receipts derived from the sale of incoming and outgoing
29interstate telecommunications services incurred in the prior
1(4) By April 15 of the calendar year following the close
2of the calendar year during which the gross receipts tax was
3incurred, the department shall notify the applicant of the
4amount of the applicant's tax credit approved by the
6(5) The total amount of tax credits provided for in this
7subsection and approved by the department shall not exceed
8$30,000,000 in any fiscal year. If the total amount of tax
9credits applied for by all applicants exceeds the amount
10allocated for those credits, then the credit to be received
11by each applicant shall be determined as follows:
18(A) the quotient under subparagraph (i); by
19(B) the amount allocated for all tax credits.
22Section 708. Licenses.
23(a) Duty to obtain license.--Every person maintaining a
24place of business in this Commonwealth, selling or leasing
25services or tangible personal property, the sale or use of which
26is subject to tax and who has not obtained a license from the
27department, shall, prior to the beginning of business, make
28application to the department, on a form prescribed by the
29department, for a license. If such person maintains more than
30one place of business in this Commonwealth, the license shall be
1issued for the principal place of business in this Commonwealth.
2(b) Criteria for issuance of license.--
3(1) The department shall, after the receipt of an
4application, issue the license applied for under subsection
5(a) if the applicant filed all required State tax reports and
6paid any State taxes not subject to a timely perfected
7administrative or judicial appeal or subject to a duly
8authorized deferred payment plan. The license shall be
10(2) All licenses in effect on the effective date of this
11section under former Article III of the Tax Reform Code of
121971 and all licenses issued or renewed on or after the
13effective date of this section shall be valid for a period of
15(b.1) Refusal of license.--
16(1) If an applicant for a license or any person holding
17a license has not filed all required State tax reports and
18paid any State taxes not subject to a timely perfected
19administrative or judicial appeal or subject to a duly
20authorized deferred payment plan, the department may refuse
21to issue, may suspend or may revoke said license.
22(2) The department shall notify the applicant or
23licensee of any refusal, suspension or revocation. The notice
24shall contain a statement that the refusal, suspension or
25revocation may be made public. The notice shall be made by
26first class mail.
27(3) An applicant or licensee aggrieved by the
28determination of the department may file an appeal pursuant
29to the provisions for administrative appeals in this chapter.
30In the case of a suspension or revocation which is appealed,
3(4) Notwithstanding section 774 or sections 353(f),
4408(b), 603, 702, 802, 904 and 1102 of the Tax Reform Code of
51971, or any other provision of law to the contrary, if no
6appeal is taken or if an appeal is taken and denied at the
7conclusion of the appeal process, the department may
8disclose, by publication or otherwise, the identity of a
9person and the fact that the person's license has been
10refused, suspended or revoked under this subsection.
11Disclosure may include the basis for refusal, suspension or
14(1) A person that maintains a place of business in this
15Commonwealth for the purpose of selling or leasing services
16or tangible personal property, the sale or use of which is
17subject to tax, without having first been licensed by the
18department shall be guilty of a summary offense and, upon
19conviction thereof, be sentenced to pay a fine of not less
20than $300 nor more than $1,500 and, in default thereof, a
21term of imprisonment of not less than five days nor more than
25(3) For purposes of this subsection, the offering for
26sale or lease of any service or tangible personal property,
27the sale or use of which is subject to tax, during any
28calendar day shall constitute a separate violation.
8HOTEL OCCUPANCY TAX
9Section 709. Definitions.
13"Hotel." A building or buildings in which the public may,
14for a consideration, obtain sleeping accommodations. The term
15does not include any charitable, educational or religious
16institution summer camp for children, hospital or nursing home.
17"Occupancy." The use or possession or the right to the use or
18possession by any person, other than a permanent resident, of
19any room or rooms in a hotel for any purpose or the right to the
20use or possession of the furnishings or to the services and
21accommodations accompanying the use and possession of the room
23"Occupant." A person, other than a permanent resident, who,
24for a consideration, uses, possesses or has a right to use or
25possess any room or rooms in a hotel under any lease,
26concession, permit, right of access, license or agreement.
27"Operator." Any person who operates a hotel.
1"Rent." The consideration received for occupancy valued in
2money, whether received in money or otherwise, including all
3receipts, cash, credits and property or services of any kind or
4nature, and also any amount for which the occupant is liable for
5the occupancy without any deduction. The term "rent" shall not
6include a gratuity.
7(b) Other definitions.--The following words and phrases,
8when used in Subchapters D and F, shall, in addition to the
9meaning ascribed to them by section 701, have the meaning
10ascribed to them in this subsection, except where the context
11clearly indicates a different meaning:
14"Purchase at retail." Occupancy.
15"Purchase price." Rent.
20"Tangible personal property." Occupancy.
23Section 710. Imposition of tax.
24There is hereby imposed an excise tax of 7% of the rent on
25every occupancy of a room or rooms in a hotel in this
26Commonwealth, which tax shall be collected by the operator from
27the occupant and paid over to the Commonwealth as provided in
28this chapter and deposited into the Education Stabilization
30Section 711. Seasonal tax returns.
1Notwithstanding any other provisions in this chapter or the
2Tax Reform Code of 1971, the department may, by regulation,
3waive the requirement for the filing of quarterly returns in the
4case of any operator whose hotel is operated only during certain
5seasons of the year, and may provide for the filing of returns
6by such persons at times other than those provided by section
9PROCEDURE AND ADMINISTRATION
10Section 715. Persons required to make returns.
14Section 716. Form of returns.
15The returns required by section 715 shall be on forms
16prescribed by the department and shall show such information
17with respect to the taxes imposed by this chapter as the
18department may reasonably require.
19Section 717. Time for filing returns.
20(a) Monthly reporting.--A return shall be filed monthly with
21respect to each month by every licensee whose total tax reported
22or, in the event no report is filed, the total tax which should
23have been reported, for the third calendar quarter of the
24preceding year equals or exceeds $600. The returns shall be
25filed on or before the 20th day of the next succeeding month
26with respect to which the return is made. Any licensee required
27to file monthly returns under this chapter shall be relieved
28from filing quarterly returns.
1department promulgated and published at least 60 days prior to
2the end of the year with respect to which the returns are made.
3Where such annual returns are required, licensees shall not be
4required to file such returns prior to the 20th day of the year
5succeeding the year with respect to which the returns are made.
6(c) Persons other than licensees.--Any person, other than a
7licensee, liable to pay to the department any tax under this
8chapter, shall file a return on or before the 20th day of the
9month succeeding the month in which the person becomes liable
10for the tax.
11(d) Waivers.--The department, by regulation, may waive the
12requirement for the filing of quarterly return in the case of
13any licensee whose individual tax collections do not exceed $75
14per calendar quarter and may provide for reporting on a less
15frequent basis in such cases.
16Section 718. Extension of time for filing returns.
17The department may, on written application and for good cause
18shown, grant a reasonable extension of time for filing any
19return required under this subchapter. However, the time for
20making a return shall not be extended for more than three
22Section 719. Place for filing returns.
1received by the department or other agency of the Commonwealth
2on or before a day certain, the taxpayer shall be deemed to have
3complied with the law if the letter transmitting the report or
4payment of the tax which has been received by the department is
5postmarked by the United States Postal Service on or prior to
6the final day on which the payment is to be received.
7(b) Presentation of receipt.--For the purposes of this
8chapter, presentation of a receipt indicating that the report or
9payment was mailed by registered or certified mail on or before
10the due date shall be evidence of timely filing and payment.
11Section 721. Payment of tax.
15Section 722. Time of payment.
16(a) General rule.--The tax imposed by this chapter and
17incurred or collected by a licensee shall be due and payable by
18the licensee on the day the return is required to be filed under
19the provisions of section 717 and the payment must accompany the
20return for the preceding period.
21(b) Other payments.--If the amount of tax due for the
22preceding year as shown by the annual return of a taxpayer is
23greater than the amount already paid by the taxpayer in
24connection with the taxpayer's monthly or quarterly returns, the
25taxpayer shall send with the annual return a remittance for the
26unpaid amount of tax for the year.
1Section 723. Other times for payment.
5Section 724. Place for payment.
8Section 725. Tax held in trust for Commonwealth.
9(a) General rule.--All taxes collected by any person from
10purchasers in accordance with this chapter and all taxes
11collected by any person from purchasers under color of this
12chapter which have not been properly refunded by the person to
13the purchaser shall constitute a trust fund for the
14Commonwealth, and such trust shall be enforceable against such
15person, the person's representatives and any person, other than
16a purchaser to whom a refund has been made properly, receiving
17any part of the fund without consideration, or knowing that the
18taxpayer is committing a breach of trust.
19(b) Presumption.--Any person receiving payment of a lawful
20obligation of the taxpayer from the fund identified under
21subsection (a) shall be presumed to have received the same in
22good faith and without any knowledge of the breach of trust.
23(c) Right to petition and appeal.--Any person, other than a
24taxpayer, against whom the department makes any claim under this
25section shall have the same right to petition and appeal as is
26given taxpayers by any provisions of this subchapter.
27Section 726. Local receivers of use tax.
4(b) Deduction for administrative costs.--Each county
5treasurer shall remit to the department all use taxes received
6under the authority of this section minus the costs of
7administering this section not to exceed 1% of the amount of use
8taxes received, which amount shall be retained in lieu of any
9commission otherwise allowable by law for the collection of the
11Section 727. Discount.
12(a) General rule.--Subject to the provisions of subsection
13(b), if a return is filed by a licensee and the tax shown to be
14due thereon less any discount is paid all within the time
15prescribed, the licensee shall be entitled to credit and apply
16against the tax payable by the licensee a discount of 1% of the
17amount of the tax collected by the licensee, as compensation for
18the expense of collecting and remitting the tax due by the
19licensee and as consideration of the prompt payment.
23(1) For a monthly filer, $25 per return.
24(2) For a quarterly filer, $75 per return.
25(3) For a semiannual filer, $150 per return.
26Section 728. (Reserved).
27Section 729. (Reserved).
28Section 730. Assessment.
5Section 731. Mode and time of assessment.
6(a) Duty to examine.--
7(1) Within a reasonable time after any return is filed,
8the department shall examine it and, if the return shows a
9greater tax due or collected than the amount of tax remitted
10with the return, the department shall issue an assessment for
11the difference, together with an addition of 3% of the
12difference, which shall be paid to the department within ten
13days after a notice of the assessment has been mailed to the
15(2) If such assessment is not paid within ten days,
16there shall be added and paid to the department an additional
173% of the difference for each month during which the
18assessment remains unpaid. The total of all additions shall
19not exceed 18% of the difference shown on the assessment.
20(b) Underestimated tax on returns.--
21(1) If the department determines that any return or
22returns of any taxpayer understates the amount of tax due, it
23shall determine the proper amount and shall ascertain the
24difference between the amount of tax shown in the return and
25the amount determined. The difference may be referred to as
1has been mailed to the taxpayer.
2(c) Estimated assessments.--
3(1) In the event that any taxpayer fails to file a
4return required by this chapter, the department may make an
5estimated assessment, based on information available, of the
6proper amount of tax owed by the taxpayer and shall send a
7notice of assessment in the estimated amount to the taxpayer.
12(1) The department may conduct the studies necessary to
13compute effective rates by business classification, based
14upon the ratio between the tax required to be collected and
15taxable sales and to use such rates in arriving at the
16apparent tax liability of a taxpayer.
17(2) Any assessment based on such rates shall be prima
18facie correct, except that the rate shall not be considered
19where a taxpayer establishes the rate is based on a sample
20inapplicable to the taxpayer.
21Section 732. Reassessment.
25Section 733. (Reserved).
26Section 734. Review by Board of Finance and Revenue.
3(2) The failure of the department to notify the
4petitioner of a decision within the time provided by section
5732 shall act as a denial of such petition, and a petition
6for review may be filed with the Board of Finance and Revenue
7within 120 days of the date prior to which the department
8should have mailed to the petitioner its notice of decision.
9(b) Contents of petition for review.--Each petition for
10review filed under this section shall state specifically the
11reasons on which the petitioner relies, or shall incorporate by
12reference the petition for reassessment in which the reasons are
13stated. The petition shall be supported by affidavit that it is
14not made for the purpose of delay and that the facts set forth
15in the petition are true.
16(c) Action by board.--
30Section 735. (Reserved).
1Section 736. Burden of proof.
5Section 737. Collection of tax.
11(1) Every person maintaining a place of business in this
12Commonwealth and selling or leasing tangible personal
13property or services, the sale or use of which is subject to
14tax shall collect the tax from the purchaser or lessee at the
15time of making the sale or lease, and shall remit the tax to
16the department, unless the collection and remittance is
17otherwise provided for in this chapter.
18(2) (i) Every person not otherwise required to collect
19tax that delivers tangible personal property to a
20location within this Commonwealth and that unpacks,
21positions, places or assembles the tangible personal
22property shall collect the tax from the purchaser at the
23time of delivery and shall remit the tax to the
24department if the person delivering the tangible personal
25property is responsible for collecting any portion of the
26purchase price of the tangible personal property
27delivered and the purchaser has not provided the person
28with proof that the tax imposed by this chapter has been
29or will be collected by the seller or that the purchaser
30provided the seller with a valid exemption certificate.
1(ii) Every person required to collect tax under this
2paragraph shall be deemed to be selling or leasing
3tangible personal property or services, the sale or use
4of which is subject to the tax imposed under section 702.
5(3) Any person required under this chapter to collect
6tax from another person, who shall fail to collect the proper
7amount of the tax, shall be liable for the full amount of the
8tax which the person should have collected.
9(c) Certificate for tax-exempt sales or leases.--
10(1) If the tax does not apply to the sale or lease of
11tangible personal property or services, the purchaser or
12lessee shall furnish to the vendor a certificate indicating
13that the sale is not legally subject to the tax. The
14certificate shall be in substantially such form as the
15department may, by regulation, prescribe.
16(2) Where the tangible personal property or service is
17of a type which is never subject to the tax imposed or where
18the sale or lease is in interstate commerce, the certificate
19need not be furnished.
20(3) Where a series of transactions are not subject to
21tax, a purchaser or user may furnish the vendor with a single
22exemption certificate in substantially such form and valid
23for such period of time as the department may, by regulation,
27(5) An exemption certificate, which is complete and
28regular and on its face discloses a valid basis of exemption
29if taken in good faith, shall relieve the vendor from the
30liability imposed by this section.
1(6) An exemption certificate:
2(i) accepted by a vendor from a natural person
3domiciled within this Commonwealth or any association,
4fiduciary, partnership, corporation or other entity,
5either authorized to do business within this Commonwealth
6or having an established place of business within this
7Commonwealth, in the ordinary course of the vendor's
9(ii) which on its face discloses a valid basis of
10exemption consistent with the activity of the purchaser
11and character of the property or service being purchased
12or which is provided to the vendor by a charitable,
13religious, educational or volunteer firefighters'
17(iv) which, in the case of any purchase costing $200
18or more, is accompanied by a sworn declaration on a form
19to be provided by the department of an intended usage of
20the property or service which would render it nontaxable,
24(1) The department may authorize a purchaser or lessee
25who acquires tangible personal property or services under
26circumstances which make it impossible at the time of
27acquisition to determine the manner in which the tangible
28personal property or service will be used, to pay the tax
29directly to the department, and waive the collection of the
30tax by the vendor.
5(3) If a direct payment permit is granted, its use shall
6be subject to conditions specified by the department, and the
7payment of tax on all acquisitions pursuant to the permit
8shall be made directly to the department by the permit
12(a) General rule.--Notwithstanding the provisions of section
13737(b)(1), tax due on the sale at retail or use of a motor
14vehicle, trailer or semitrailer, except mobile homes as defined
15in 75 Pa.C.S. (relating to vehicles), required by law to be
16registered with the department under the provisions of 75
17Pa.C.S. shall be paid by the purchaser or user directly to the
18department on application to the department for an issuance of a
19certificate of title on the motor vehicle, trailer or
27(2) The department may cancel or suspend any record of
28certificate of title or registration of a motor vehicle,
29trailer or semitrailer when the check received in payment of
30the tax on the vehicle is not paid on demand.
1(c) First encumbrance.--The tax shall be considered as a
2first encumbrance against the vehicle and the vehicle may not be
3transferred without first payment in full of the tax and any
4interest additions or penalties which shall accrue in accordance
5with this chapter.
6Section 739. Precollection of tax.
8(1) Except as otherwise provided under paragraph (2),
9the department may, by regulation, authorize or require
10particular categories of vendors selling tangible personal
11property for resale to precollect from the purchaser the tax
12which the purchaser will collect on making a sale at retail
13of the tangible personal property.
14(2) The department, pursuant to this section, may not
15require a vendor to precollect tax from a purchaser who
16purchases for resale more than $1,000 worth of tangible
17personal property from the vendor per year.
18(b) No license required.--In any case in which a vendor has
19been authorized to prepay the tax to the person from whom the
20vendor purchased the tangible personal property for resale, the
21vendor authorized to prepay the tax may, under the regulations
22of the department, be relieved from the duty to secure a license
23if the duty arises only by reason of the vendor's sale of the
24tangible personal property with respect to which the vendor is,
25under authorization of the department, to prepay the tax.
27(1) The vendor, on making a sale at retail of tangible
28personal property with respect to which the vendor has
29prepaid the tax, must separately state at the time of resale
30the proper amount of tax on the transaction, and reimburse
3(2) If the vendor collects a greater amount of tax in
4any reporting period than the vendor previously prepaid on
5purchase of the goods with respect to which the vendor
6prepaid the tax, the vendor must file a return and remit the
7balance to the Commonwealth at the time at which a return
8would otherwise be due with respect to the sales.
9Section 740. Bulk and auction sales.
10A person who sells or causes to be sold at auction, or who
11sells or transfers in bulk, 51% or more of any stock, of goods,
12wares or merchandise of any kind, fixtures, machinery,
13equipment, buildings or real estate, involved in a business for
14which the person is licensed or required to be licensed under
15this chapter, or is liable for filing use tax returns in
16accordance with this chapter, shall be subject to the provisions
17of section 1403 of The Fiscal Code.
20(a) General rule.--The department may collect any tax:
27(3) Within 30 days from the date of the decision of the
28Board of Finance and Revenue on a petition for review, or of
29the expiration of the board's time for acting on the
30petition, if no appeal has been made.
3(b) Limitation on defenses.--
4(1) Subject to the provisions of paragraph (2), in any
5such case in a proceeding for the collection of the taxes,
6the person against whom the taxes were assessed shall not be
7permitted to set up any ground of defense that might have
8been determined by the department, the Board of Finance and
9Revenue or the courts.
10(2) The defense of failure of the department to mail
11notice of assessment or reassessment to the taxpayer and the
12defense of payment of assessment or reassessment may be
13raised in proceedings for collection by a motion to stay the
15Section 742. Lien for taxes.
16(a) Nature and effect of lien.--
17(1) If any person liable to pay any tax neglects or
18refuses to pay the same after demand, the amount, including
19any interest, addition or penalty, together with any costs
20that may accrue in addition, shall be a lien in favor of the
21Commonwealth on the property, both real and personal, of the
22person but only after same has been entered and docketed of
23record by the prothonotary of the county where the property
25(2) The department may, at any time, transmit to the
26prothonotaries of the respective counties certified copies of
27all liens for taxes imposed by this chapter or the Tax Reform
28Code of 1971 and penalties and interest.
1lien shall be indexed as judgments are now indexed.
5(b) Priority status.--
6(1) The lien imposed under this section shall have
7priority from the date of its recording, and shall be fully
8paid and satisfied out of the proceeds of any judicial sale
9of property before any other obligation, judgment, claim,
10lien or estate to which the property may subsequently become
11subject, except costs of the sale and of the writ on which
12the sale was made, and real estate taxes and municipal claims
13against such property, but shall be subordinate to mortgages
14and other liens existing and duly recorded or entered of
15record prior to the recording of the tax lien.
16(2) In the case of a judicial sale of property, subject
17to a lien imposed under this section, on a lien or claim over
18which the lien imposed under this section has priority, the
19sale shall discharge the lien imposed under this section to
20the extent only that the proceeds are applied to its payment,
21and the lien shall continue in full force and effect as to
22the balance remaining unpaid.
26(4) (i) The lien of the taxes, interest and penalties,
27shall continue for five years from the date of entry, and
28may be revived and continued in the manner now or
29hereafter provided for renewal of judgments, or as may be
30provided in The Fiscal Code, and a writ of execution may
3(ii) Not less than ten days before issuance of any
4execution on the lien, notice of the filing and the
5effect of the lien shall be sent by registered mail to
6the taxpayer at the taxpayer's last known post office
8(iii) The lien shall have no effect on any stock of
9goods, wares or merchandise regularly sold or leased in
10the ordinary course of business by the person against
11whom the lien has been entered, unless and until a writ
12of execution has been issued and a levy made on the stock
13of goods, wares and merchandise.
14(c) Penalty.--Any willful failure of any prothonotary to
15carry out any duty imposed on the prothonotary under this
16section shall be a misdemeanor, and, upon conviction, the
17prothonotary shall be sentenced to pay a fine not more than
18$1,000 and costs of prosecution or to a term of imprisonment not
19exceeding one year, or both.
20(d) Priority payment from distribution.--
21(1) Except as otherwise provided under the law, in the
22distribution, voluntary or compulsory, in receivership,
23bankruptcy or otherwise, of the property or estate of any
24person, all taxes imposed by this chapter which are due and
25unpaid and are not collectible under section 725 shall be
26paid from the first money available for distribution in
27priority to all other claims and liens, except insofar as the
28laws of the United States may give a prior claim to the
30(2) Any person charged with the administration or
1distribution of the property or estate, who violates the
2provisions of this section, shall be personally liable for
3any taxes imposed by this chapter, which are accrued and
4unpaid and are chargeable against the person whose property
5or estate is being administered or distributed.
6(e) Construction.--Subject to the limitations contained in
7this chapter as to the assessment of taxes, nothing contained in
8this section shall be construed to restrict, prohibit or limit
9the use by the department in collecting taxes finally due and
10payable of any other remedy or procedure available at law or
11equity for the collection of debts.
12Section 743. Suit for taxes.
13(a) General rule.--At any time within three years after any
14tax or any amount of tax shall be finally due and payable, the
15department may commence an action in the courts of this
16Commonwealth, of any state or of the United States, in the name
17of the Commonwealth, to collect the amount of tax due together
18with additions, interest, penalties and costs in the manner
19provided at law or in equity for the collection of ordinary
21(b) Prosecution by Attorney General.--The Attorney General
22shall prosecute the action and, except as provided in this
23chapter, the provisions of the Rules of Civil Procedure and the
24provisions of the laws of this Commonwealth relating to civil
25procedures and remedies shall, to the extent that they are
26applicable, be available in such proceedings.
27(c) Construction.--The provisions of this section are in
28addition to any process, remedy or procedure for the collection
29of taxes provided by this chapter or by the laws of this
30Commonwealth, and this section is neither limited by nor
1intended to limit any such process, remedy or procedure.
2Section 744. Tax suit comity.
7Section 745. Service.
8(a) General rule.--Any person who maintains a place of
9business in this Commonwealth is deemed to have appointed the
10Secretary of the Commonwealth as the person's agent for the
11acceptance of service of process or notice in any proceedings
12for the enforcement of the civil provisions of this chapter, and
13any service made upon the Secretary of the Commonwealth as agent
14shall be of the same legal force and validity as if the service
15had been personally made on the person.
16(b) Substitute service.--Where service cannot be made on the
17person in the manner provided by other laws of this Commonwealth
18relating to service of process, service may be made on the
19Secretary of the Commonwealth and, in such case, a copy of the
20process or notice shall also be personally served on any agent
21or representative of the person who may be found within this
22Commonwealth, or where no such agent or representative may be
23found a copy of the process or notice shall be sent by
24registered mail to the person at the last known address of the
25person's principal place of business, home office or residence.
26Section 746. Collection and payment of tax on credit sales.
27If any sale subject to tax under this chapter is wholly or
28partly on credit, the vendor shall require the purchaser to pay
29in cash at the time the sale is made, or within 30 days
30thereafter, the total amount of tax due upon the entire purchase
5Section 747. Prepayment of tax.
6(a) General rule.--Whenever a vendor is prohibited by law or
7governmental regulation to charge and collect the purchase price
8in advance of or at the time of delivery, the vendor shall
9prepay the tax as required by section 722, but in that case, if
10the purchaser fails to pay to the vendor the total amount of the
11purchase price and the tax and the amount is written off as
12uncollectible by the vendor, the vendor shall not be liable for
13the tax and shall be entitled to a credit or refund of the tax
15(b) Subsequent collection of tax.--If the purchase price is
16thereafter collected, in whole or in part, the amount collected
17shall be first applied to the payment of the entire tax portion
18of the bill, and shall be remitted to the department by the
19vendor with the first return filed after such collection.
20(c) Time period for refund.--Tax prepaid shall be subject to
21refund on petition to the department under the provisions of
22section 752, filed within 105 days of the close of the fiscal
23year in which the accounts are written off.
24Section 747.1. Refund of sales tax attributed to bad debt.
30(2) The purchase price is written off, either in whole
1or in part, as a bad debt on the vendor's books and records.
20(c) Assignment.--A vendor may assign its right to petition
21and receive a refund of sales tax attributed to a bad debt to an
22affiliated entity. A vendor may not assign its right to petition
23and receive a refund of sales tax attributed to a bad debt to
24any other person.
1department may prescribe.
2(f) Subsequent collection.--If the purchase price that is
3attributed to a prior bad debt refund is collected in whole or
4in part, the vendor or affiliated entity shall remit the
5proportional tax to the department with the first return filed
6after the collection.
7(g) Interest prohibited.--Notwithstanding the provisions of
8section 806.1 of The Fiscal Code, no interest shall be paid by
9the Commonwealth on refunds of sales tax attributed to bad debt
10under this section.
20(i) Definition.--For purposes of this section, the term
21"affiliated entity" means any corporation that is part of the
22same affiliated group as the vendor as defined by section
231504(a)(1) of the Internal Revenue Code of 1986.
24Section 748. Registration of transient vendors.
25(a) General rule.--Prior to conducting business or otherwise
26commencing operations in this Commonwealth, a transient vendor
27shall register with the department. The application for
28registration shall be in such form and contain such information
29as the department, by regulation, shall prescribe and shall set
30forth truthfully and accurately the information desired by the
3(b) Certificate to be issued.--After registration and the
4posting of the bond required by section 748.1, the department
5shall issue to the transient vendor a certificate valid for one
6year. On renewal of registration, the department shall issue a
7new certificate valid for one year, if the department is
8satisfied that the transient vendor has complied with the
9provisions of this chapter.
10(c) Possession and exhibition of certificate.--The transient
11vendor shall possess the certificate at all times when
12conducting business within this Commonwealth and shall exhibit
13the certificate upon demand by authorized employees of the
14department or any law enforcement officer.
15(d) Contents of certificate.--The certificate issued by the
16department shall state that the transient vendor named in the
17certificate has registered with the department and shall provide
18notice to the transient vendor that:
19(1) The transient vendor must notify the department in
20writing before it enters this Commonwealth to conduct
21business, of the location or locations where it intends to
22conduct business and the date or dates on which it intends to
1Section 748.1. Bond.
2(a) General rule.--Upon registration with the department, a
3transient vendor shall also post a bond with the department in
4the amount of $500 as surety for compliance with the provisions
5of this chapter. After a period of demonstrated compliance with
6these provisions or, if the transient vendor provides the
7license number of a promoter who has notified the department of
8a show, in accordance with the provisions of section 748.6(a),
9the department may reduce the amount of bond required of a
10transient vendor or may eliminate the bond entirely.
11(b) Voluntary suspension of certificate.--A transient vendor
12may file a request for voluntary suspension of certificate with
13the department. If the department is satisfied that the
14provisions of this chapter have been complied with and has
15possession of the transient vendor's certificate, it shall
16return the bond posted to the transient vendor.
17Section 748.2. Notification to department.
18(a) General rule.--Prior to entering this Commonwealth to
19conduct business, a transient vendor shall notify the department
20in writing of the location or locations where it intends to
21conduct business and the date or dates on which it intends to
23(b) Inspection of records.--While conducting business in
24this Commonwealth, the transient vendor shall permit authorized
25employees of the department to inspect its sales records,
26including, but not limited to, sales receipts and inventory or
27price lists and to permit inspection of the tangible personal
28property offered for sale at retail.
1issued to a transient vendor if the transient vendor:
12Section 748.3. Seizure of property.
13(a) General rule.--If a transient vendor conducting business
14in this Commonwealth fails to exhibit a valid certificate on
15demand by authorized employees of the department, those
16authorized employees shall seize, without warrant, the tangible
17personal property and the automobile, truck or other means of
18transportation used to transport or carry that property. All
19property seized shall be deemed contraband and shall be subject
20to immediate forfeiture proceedings instituted by the department
21pursuant to procedures adopted by regulation, except as
22otherwise provided by this section.
1Section 748.4. Fines.
2Any transient vendor conducting business in this Commonwealth
3while its certificate is suspended or revoked, as provided by
4sections 748.1(b) and 748.2(c), commits a misdemeanor of the
5third degree and, upon conviction, shall be sentenced to pay a
6fine of not more than $2,500 for each offense.
7Section 748.5. Transient vendors subject to chapter.
11Section 748.6. Promoters.
12(a) General rule.--A promoter of a show or shows in this
13Commonwealth may annually file with the department an
14application for a promoter's license stating the location and
15dates of such show or shows. The application shall be filed at
16least 30 days prior to the opening of the first show and shall
17be in such form as the department may prescribe.
19(1) Except as otherwise provided in this chapter, the
20department shall, within 15 days after receipt of an
21application for a license, issue to the promoter without
22charge a license to operate such shows.
23(2) If application for a license under this section has
24been timely filed and if the license has not been received by
25the promoter prior to the opening of the show, the
26authorization contained in this section with respect to the
27obtaining of a promoter's license shall be deemed to have
28been complied with, unless or until the promoter receives
29notice from the department denying the application for a
1(c) Compliance.--Any promoter who is a vendor under the
2provisions of section 701 shall comply with all the provisions
3of this chapter applicable to vendors and with the provisions of
4this section applicable to promoters.
5(d) Prohibited conduct.--No licensed promoter shall permit
6any person to display for sale or to sell tangible personal
7property or services subject to tax under section 702 at a show
8unless the person is licensed under section 708 and provides to
9the promoter the information required under law.
11(1) Any licensed promoter who:
23(2) The department may deny the promoter a license
24certificate to operate a show for a period of not more than
25six months from the date of such denial. The penalty shall be
26in addition to any other penalty imposed by this chapter.
27(3) Within 20 days of notice of denial or revocation of
28a license by the department, the promoter may petition the
29department for a hearing pursuant to 2 Pa.C.S. (relating to
30administrative law and procedure).
1Section 749. (Reserved).
2Section 750. (Reserved).
3Section 751. (Reserved).
4Section 752. Refunds.
5(a) General rule.--Subject to the provisions of subsection
6(b), the department shall, pursuant to the provisions of Article
7XXVII of the Tax Reform Code of 1971, refund all taxes, interest
8and penalties paid to the Commonwealth under the provisions of
9this chapter and to which the Commonwealth is not rightfully
10entitled. The refunds shall be made to the person, the person's
11heirs, successors, assigns or other personal representatives,
12who actually paid the tax.
13(b) Exception.--No refund shall be made under this section
14with respect to any payment made by reason of an assessment with
15respect to which a taxpayer has filed a petition for
16reassessment pursuant to section 2702 of the Tax Reform Code of
171971 to the extent that the petition has been determined
18adversely to the taxpayer by a decision which is no longer
19subject to further review or appeal.
20(c) Construction.--Nothing contained in this section shall
21be deemed to prohibit a taxpayer who has filed a timely petition
22for reassessment from amending it to a petition for refund where
23the petitioner has paid the tax assessed.
24Section 753. Refund petition.
25(a) General rule.--Except as provided for in subsection (b)
26and section 756, the refund or credit of tax, interest or
27penalty provided for by section 752 shall be made only where the
28person who has actually paid the tax files a petition for refund
29with the department under Article XXVII of the Tax Reform Code
30of 1971, within the limits of section 3003.1 of the Tax Reform
1Code of 1971.
2(b) Assessments.--A refund or credit of tax, interest or
3penalty paid as a result of an assessment made by the department
4under section 731 shall be made only where the person who has
5actually paid the tax files with the department a petition for a
6refund with the department under Article XXVII of the Tax Reform
7Code of 1971 within the time limits of section 3003.1 of the Tax
8Reform Code of 1971. The filing of a petition for refund under
9the provisions of this subsection shall not affect the abatement
10of interest, additions or penalties to which the person may be
11entitled by reason of the person's payment of the assessment.
12Section 754. (Reserved).
13Section 755. (Reserved).
16(a) General rule.--Any party to a transaction who has paid
17tax by reason of a transaction with respect to which the
18department is assessing tax against another person may, within
19six months after the filing by the department of the assessment
20against the other person, file a special petition for refund,
21notwithstanding the person's failure to timely file a petition
22pursuant to section 3003.1 of the Tax Reform Code of 1971. The
23provisions of Article XXVII of the Tax Reform Code of 1971 shall
24be applicable to the special petition for refund, except that
25the department need not act on the petition until there is a
26final determination as to the propriety of the assessment filed
27against the other party to the transaction. Where a petition is
28filed under this provision in order to take advantage of the
29extended period of limitations, overpayments by the petitioner
30shall be refunded but only to the extent of the actual tax,
3(b) Purpose.--The purpose of this section is to avoid
4duplicate payment of tax where a determination is made by the
5department that one party to a transaction is subject to tax,
6and another party to the transaction has previously paid tax
7with respect to the transaction and, as such, this section shall
8be construed as extending right beyond that provided for by
9section 753, and not to limit the other section.
10Section 757. (Reserved).
11Section 758. Limitation on assessment and collection.
12The amount of the tax imposed by this chapter or the Tax
13Reform Code of 1971 shall be assessed within three years after
14the date when the return provided for by section 717(a) or (c)
15is filed or the end of the year in which the tax liability
16arises, whichever occurs later. Any assessment may be made at
17any time during the period notwithstanding that the department
18may have made one or more previous assessments against the
19taxpayer for the year in question, or for any part of the year.
20In any case, no credit shall be given for any penalty previously
21assessed or paid.
22Section 759. Failure to file return.
26Section 760. False or fraudulent return.
30Section 761. Extension of limitation period.
1Notwithstanding any other provisions of this subchapter
2where, before the expiration of the period prescribed in that
3other provision for the assessment of a tax, a taxpayer has
4consented in writing that the period be extended, the amount of
5tax due may be assessed at any time within the extended period.
6The period so extended may be extended further by subsequent
7consents in writing made before the expiration of the extended
9Section 762. (Reserved).
10Section 763. (Reserved).
11Section 764. (Reserved).
12Section 765. Interest.
13If any amount of tax imposed by this chapter is not paid to
14the department on or before the last date prescribed for
15payment, interest on the amount at the rate of .75% per month
16for each month, or fraction thereof, from the date, shall be
17paid for the period from the last date to the date paid. The
18last date prescribed for payment shall be determined under
19section 722(a) or (c) without regard to any extension of time
20for payment. In the case of any amount assessed as a deficiency
21or as an estimated assessment, the date prescribed for payment
22shall be 30 days after notice of the assessment.
23Section 766. Additions to tax.
24(a) Failure to file return.--In the case of failure to file
25any return required by section 715 on the date prescribed for
26the return, determined with regard to any extension of time for
27filing, and, in the case in which a return filed understates the
28true amount due by more than 50%, there shall be added to the
29amount of tax actually due 5% of the amount of the tax if the
30failure to file a proper return is for not more than one month,
4(b) Addition for understatement.--There shall be added to
5every assessment under section 731(b) an addition equal to 5% of
6the amount of the understatement and no addition to the tax
7shall be paid under section 731(a).
8(c) Interest.--If the department assesses a tax according to
9section 731(a), (b) or (c), there shall be added to the amount
10of the deficiency interest at the rate of .75% per month for
11each month, or fraction thereof, from the date prescribed by
12subsection (a) or section 722(c) for the payment of the tax to
13the date of notice of the assessment.
14Section 767. Penalties.
15(a) General rule.--The penalties, additions, interest and
16liabilities provided by this chapter shall be paid on notice and
17demand by the department, and shall be assessed and collected in
18the same manner as taxes. Except as otherwise provided, any
19reference in this chapter to tax imposed by this chapter shall
20be deemed also to refer to the penalties, additions, interest
21and liabilities provided by this chapter.
22(b) Monetary penalty.--Any person who willfully attempts, in
23any manner, to evade or defeat the tax imposed by this chapter,
24or the payment thereof, or to assist any other person to evade
25or defeat the tax imposed by this chapter, or the payment
26thereof, or to receive a refund improperly shall, in addition to
27other penalties provided by law, be liable for a penalty equal
28to one-half of the total amount of the tax evaded.
1chapter, in which an issue of fact is raised with respect to
2whether a return is fraudulent or with respect to the propriety
3of the imposition by the department of the penalty prescribed in
4subsection (b), the burden of proof with respect to the issue
5shall be on the department.
6Section 768. Criminal offenses.
7(a) False returns.--Any person who with intent to defraud
8the Commonwealth willfully makes, or causes to be made, any
9return required by this chapter which is false commits a
10misdemeanor and, upon conviction, shall be sentenced to pay a
11fine of not more than $2,000 or to imprisonment not exceeding
12three years, or both.
16(1) advertises or holds out or states to the public or
17to any purchaser or user, directly or indirectly, that the
18tax or any part imposed by this chapter will be absorbed by
19the person, or that it will not be added to the purchase
20price of the tangible personal property or services described
21in section 701(k)(2), (3), (4) and (11) through (18) sold or,
22if added, that the tax or any part will be refunded, other
23than when the person refunds the purchase price because of
24the property being returned to the vendor;
25(2) sells or leases tangible personal property or the
26services, the sale or use of which by the purchaser is
27subject to tax under this chapter, and willfully fails to
28collect the tax from the purchaser and timely remit the same
29to the department;
30(3) willfully fails or neglects to timely file any
1return or report required by this chapter or, as a taxpayer,
2refuses to timely pay any tax, penalty or interest imposed or
3provided for by this chapter, or willfully fails to preserve
4the person's books, papers and records as directed by the
22(1) Any person who maintains a place of business outside
23this Commonwealth may absorb the tax with respect to taxable
24sales made in the normal course of business to customers
25present at that place of business without being subject to
26the penalty and fines.
27(2) Advertising tax-included prices shall be
28permissible, if the prepaid services are sold by the service
29provider, for prepaid telecommunications services not
30evidenced by the transfer of tangible personal property or
1for prepaid mobile telecommunications services.
5Section 769. Abatement of additions or penalties.
6On the filing of a petition for reassessment or a petition
7for refund as provided under this chapter by a taxpayer,
8additions or penalties imposed on the taxpayer by this chapter
9or the Tax Reform Code of 1971 may be waived or abated, in whole
10or in part, where the petitioner has established that the
11petitioner has acted in good faith, without negligence and with
12no intent to defraud.
13Section 770. Rules and regulations.
14(a) General rule.--The department shall enforce the
15provisions of this chapter and shall prescribe, adopt,
16promulgate and enforce rules and regulations not inconsistent
17with the provisions of this chapter, relating to any matter or
18thing pertaining to the administration and enforcement of the
19provisions of this chapter, and the collection of taxes,
20penalties and interest imposed by this chapter. The department
21may prescribe the extent, if any, to which any of the rules and
22regulations shall be applied without retroactive effect.
23(b) Determination of purchase price.--
24(1) In determining the purchase price of taxable sales
25where, because of affiliation of interests between the vendor
26and the purchaser or irrespective of any such affiliation, if
27for any other reason, the purchase price of the sale is in
28the opinion of the department not indicative of the true
29value of the article or the fair price of the article, the
30department shall, pursuant to uniform and equitable rules,
3(2) The rules shall provide for a constructive amount of
4a purchase price for each sale, which price shall equal a
5price for the article which would naturally and fairly be
6charged in an arm's-length transaction in which the element
7of common interests between vendor and purchaser or, if no
8common interest exists, any other element causing a
9distortion of the price or value is absent.
10(3) For the purpose of this chapter where a taxable sale
11occurs between a parent corporation and a subsidiary
12affiliate or controlled corporation of such parent, there
13shall be a rebuttable presumption that because of such common
14interest the transaction was not at arm's-length.
15Section 771. Keeping of records.
16(a) Persons liable for taxes.--Every person liable for any
17tax imposed by this chapter, or for the collection of the tax,
18shall keep the records, render such statements, make the returns
19and comply with the rules and regulations as the department may,
20from time to time, prescribe regarding matters pertinent to the
21person's business. Whenever in the judgment of the department it
22is necessary, it may require any person, by notice served on the
23person, or by regulations, to make the returns, render the
24statements or keep the records as the department deems
25sufficient to show whether the person is liable to pay or
26collect tax under this chapter.
27(b) Persons collecting taxes.--Any person liable to collect
28tax from another person under the provisions of this chapter
29shall file reports, keep records, make payments and be subject
30to interest and penalties as provided for under this chapter, in
4(1) A nonresident who does business in this Commonwealth
5as a retail dealer shall keep adequate records of the
6business and of the tax due with respect to the business,
7which records shall at all times be retained within this
8Commonwealth unless retention outside this Commonwealth is
9authorized by the department.
16(d) Retail dealers.--
17(1) Any person doing business as a retail dealer who at
18the same time is engaged in another business which does not
19involve the making of sales taxable under this chapter shall
20keep separate books and records of the person's businesses so
21as to show the sales taxable under this chapter separately
22from the sales not taxable under this chapter.
23(2) If the person fails to keep such separate books and
24records, the person shall be liable for tax at the rate
25designated in section 702 on the entire purchase price of
26sales from both or all of the person's businesses.
27(e) Segregation of taxes required.--
3(2) A vendor may apply to the department for permission
4to use a collection and recording procedure which will show
5the information as the law requires with reasonable accuracy
6and simplicity. The application must contain a detailed
7description of the procedure to be adopted.
17Section 771.1. Reports and records of promoters.
18Every licensed promoter shall keep a record of the date and
19place of each show and the name, address, sales, use and hotel
20occupancy license number of every person whom the licensed
21promoter permits to display for sale or to sell tangible
22personal property or services subject to tax under section 702
23at the show. The records shall be open for inspection and
24examination at any reasonable time by the department or a duly
25authorized representative, and the records shall, unless the
26department consents in writing to an earlier destruction, be
27preserved for three years after the date the report was filed or
28the date it was due, whichever occurs later, except that the
29department may by regulation require that they be kept for a
30longer period of time.
1Section 772. Examinations.
2(a) Power of department.--The department or any of its
3authorized agents may examine the books, papers and records of
4any taxpayer in order to verify the accuracy and completeness of
5any return made or if no return was made, to ascertain and
6assess the tax imposed by this chapter. The department may
7require the preservation of all such books, papers and records
8for any period deemed proper by it but not to exceed three years
9from the end of the calendar year to which the records relate.
13(c) Other powers of department.--
14(1) The department is further authorized to examine any
15person, under oath, concerning taxable sales or use by any
16taxpayer or concerning any other matter relating to the
17enforcement or administration of this chapter, and to this
18end may compel the production of books, papers and records
19and the attendance of all persons whether as parties or
20witnesses whom it believes to have knowledge of such matters.
24Section 773. Records and examinations of delivery agents.
25Every agent for the purpose of delivery of goods shipped into
26this Commonwealth by a nonresident, including, but not limited
27to, a common carrier, shall maintain adequate records of such
28deliveries pursuant to rules and regulations adopted by the
29department and shall make the records available to the
30department upon request after due notice.
1Section 774. Unauthorized disclosure.
2Any information gained by the department as a result of any
3return, examination, investigation, hearing or verification
4required or authorized by this chapter shall be confidential,
5except for official purposes and except in accordance with
6proper judicial order or as otherwise provided by law, and any
7person unlawfully divulging such information commits a
8misdemeanor and, upon conviction, shall be sentenced to pay a
9fine of not more than $1,000 and costs of prosecution or to
10imprisonment for not more than one year, or both.
11Section 775. Cooperation with other governments.
12Notwithstanding the provisions of section 774, the department
13may permit the Commissioner of Internal Revenue of the United
14States, or the proper officer of any state, or the authorized
15representative of either such officer, to inspect the tax
16returns of any taxpayer, or may furnish to the officer or to the
17officer's authorized representative an abstract of the return of
18any taxpayer, or supply the officer or the authorized
19representative with information concerning any item contained in
20any return or disclosed by the report of any examination or
21investigation of the return of any taxpayer. This permission
22shall be granted only if the statutes of the United States or of
23such other state, as the case may be, grant substantially
24similar privileges to the proper officer of the Commonwealth
25charged with the administration of this chapter.
26Section 776. Interstate compacts.
27(a) General rule.--The Governor, or the Governor's
28authorized representative, may confer with the Governor and the
29authorized representatives of other states with respect to
30reciprocal use tax collection between the Commonwealth and such
2(b) Other powers.--The Governor, or the Governor's
3authorized representative, may join with the authorities of
4other states to conduct joint investigations, to exchange
5information, hold joint hearings and enter into compacts or
6interstate agreements with such other states to accomplish
7uniform reciprocal use tax collections between those states who
8are parties to any compact or interstate agreement and the
10Section 777. Bonds.
12(1) Whenever the department, in its discretion, deems it
13necessary to protect the revenues to be obtained under the
14provisions of this chapter, it may require any nonresident
15natural person or any foreign corporation, association,
16fiduciary, partnership or other entity, not authorized to do
17in this Commonwealth or not having an established place of
18business in this Commonwealth and subject to the tax imposed
19by section 702, to file a bond issued by a surety company
20authorized to do business in this Commonwealth and approved
21by the Insurance Commissioner as to solvency and
22responsibility, in such amounts as it may fix, to secure the
23payment of any tax or penalties due, or which may become due,
24from a natural person or corporation.
25(2) In order to protect the revenues to be obtained
26under the provisions of this chapter, the department shall
27require any nonresident natural person or any foreign
28corporation, association, fiduciary, partnership or entity,
29who or which is a building contractor, or who or which is a
30supplier delivering building materials for work in this
1Commonwealth and is not authorized to do business in this
2Commonwealth or does not have an established place of
3business in this Commonwealth and is subject to the tax
4imposed by section 702, to file a bond issued by a surety
5company authorized to do business in this Commonwealth and
6approved by the Insurance Commissioner as to solvency and
7responsibility, in the amounts as it may fix, to secure the
8payments of any tax or penalties due, or which may become
9due, from a natural person, corporation or other entity.
10(3) The department may also require a bond of any person
11petitioning the department for reassessment, in the case of
12any assessment over $500 or where it is of the opinion that
13the ultimate collection is in jeopardy.
14(4) (i) The department may, for a period of three
15years, require a bond of any person who has on three or
16more occasions within a 12-month period either filed a
17return or made payment to the department more than 30
23(iii) The taxpayer shall file a bond within five
24days after the giving of the notice by the department
25unless, within the five-day period, the taxpayer requests
26in writing a hearing before the secretary or the
27secretary's representative at which hearing the
28necessity, propriety and amount of the bond shall be
29determined by the secretary or a representative. The
30determination shall be final and shall be complied within
115 days after notice is mailed to the taxpayer.
2(b) Alternative security.--
6(2) Such securities or cash shall be kept in the custody
7of the department, who may, at any time, without notice to
8the depositor, apply them to any tax and/or interest or
9penalties due, and for that purpose the securities may be
10sold by the department, at public or private sale, on five
11days' written notice to the depositor.
12(c) Lien may be filed.--
16(2) All funds received on execution of the judgment on
17the lien shall be refunded to the taxpayer with 3% interest
18should a final determination be made that the taxpayer does
19not owe any payment to the department.
22Section 780. (Reserved).
23Section 781. Appropriation for refunds.
24So much of the proceeds of the tax imposed by this chapter as
25shall be necessary for the payment of refunds, enforcement or
26administration under this chapter is hereby appropriated for
28Section 781.1. Construction.
5Section 782. Transfers to Education Stabilization Fund.
6(a) Legislative intent.--It is the intent of the General
7Assembly to increase the rate of the current sales and use tax
8and broaden the sales and use tax base in order to provide funds
9for the operating expenses of school districts and as a means to
10abolish the school property tax.
11(b) Deposit of sales and use tax collected.--The secretary
12shall deposit into the Education Stabilization Fund revenues
13received on or after January 1, 2014, regardless of the
14transaction date, that equal the portion of the tax imposed by
15this chapter as follows:
24(3) All of the tax collected on expanded sales and uses.
27(1) The sale at retail or use of disposable diapers;
28premoistened wipes; incontinence products; colostomy
29deodorants; toilet paper; sanitary napkins, tampons or
30similar items used for feminine hygiene; or toothpaste,
1toothbrushes or dental floss.
11(5) The sale at retail or use of newspapers. For
12purposes of this section, the term "newspaper" shall mean a
13"legal newspaper" or a publication containing matters of
14general interest and reports of current events which
15qualifies as a "newspaper of general circulation" qualified
16to carry a "legal advertisement" as those terms are defined
17in 45 Pa.C.S. § 101 (relating to definitions), not including
18magazines. The term "newspaper" also includes any printed
19advertising materials circulated with such newspaper
20regardless of where or by whom such printed advertising
21material was produced.
27(8) The sale at retail or use of textbooks for use in
28schools, colleges and universities, either public or private,
29when purchased in behalf of or through such schools, colleges
30or universities provided such institutions of learning are
1recognized by the Department of Education.
5(10) The sale at retail or use of mail order catalogs
6and direct mail advertising literature or materials,
7including electoral literature or materials, such as
8envelopes, address labels and a one-time license to use a
9list of names and mailing addresses for each delivery of
10direct mail advertising literature or materials, including
11electoral literature or materials, through the United States
13(11) The sale at retail of horses, if at the time of
14purchase, the seller is directed to ship or deliver the horse
15to an out-of-State location, whether or not the charges for
16shipment are paid for by the seller or the purchaser.
17(12) The sale at retail of supplies and materials to
18tourist promotion agencies, which receive grants from the
19Commonwealth, for distribution to the public as promotional
20material or the use of such supplies and materials by said
21agencies for said purposes.
22(13) The sale at retail or use of materials used in the
23construction and erection of objects purchased by not-for-
24profit organizations for purposes of commemoration and
25memorialization of historical events, provided that the
26object is erected upon publicly owned property or property to
27be conveyed to a public entity upon the commemoration or
28memorialization of the historical event.
2(15) The sale at retail or use of horses to be used
3exclusively for commercial racing activities and the sale at
4retail and use of feed, bedding, grooming supplies, riding
5tack, farrier services, portable stalls and sulkies for
6horses used exclusively for commercial racing activities.
10(i) transferred pursuant to a construction contract
11for any charitable organization, volunteer firemen's
12organization, volunteer firefighters' relief association,
13nonprofit educational institution or religious
14organization for religious purposes, provided that the
15building machinery and equipment and services thereto are
16not used in any unrelated trade or business; or
20(17) The sale or use of used prebuilt housing.
21(18) The sale at retail to or use of food and
22nonalcoholic beverages by an airline which will transfer the
23food or nonalcoholic beverages to passengers in connection
24with the rendering of the airline service.
27(20) The sale at retail or use of investment metal
28bullion and investment coins. "Investment metal bullion"
29means any elementary precious metal which has been put
30through a process of smelting or refining, including, but not
1limited to, gold, silver, platinum and palladium, and which
2is in such state or condition that its value depends upon its
3content and not its form. "Investment metal bullion" does not
4include precious metal which has been assembled, fabricated,
5manufactured or processed in one or more specific and
6customary industrial, professional, aesthetic or artistic
7uses. "Investment coins" means numismatic coins or other
8forms of money and legal tender manufactured of gold, silver,
9platinum, palladium or other metal and of the United States
10or any foreign nation with a fair market value greater than
11any nominal value of such coins. "Investment coins" does not
12include jewelry or works of art made of coins, nor does it
13include commemorative medallions.
18SCHOOL DISTRICT TAXATION
21(a) Abrogating authority to impose certain taxes.--
22(1) The authority of any school district to levy, assess
23and collect any real property tax under the Public School
24Code of 1949, or any other act shall expire, subject to the
25provisions of section 1102, January 1, 2014.
26(2) The authority of a city of the first class to impose
27or continue to provide for the imposition or continuation of
28any tax, including, but not limited to, the real property
29tax, for the use of a school district of the first class
30shall expire in accordance with section 1102(b).
1(b) Collection of certain taxes unaffected.--The provisions
2of this section or any other provision of this act shall not
3prevent or interfere with any action of any school district to
4collect any tax owed by any taxpayer prior to the repeal of any
5law authorizing such tax after such law is repealed pursuant to
7(c) Limitations on adoption of personal income taxes and
8earned income taxes authorized under Chapter 3.--A school
9district that adopts a personal income tax pursuant to Chapter 3
10may not adopt an earned income tax. A school district that
11adopts an earned income tax under Chapter 3 may not adopt a
12personal income tax.
13Section 1102. Transitional taxes.
14(a) Transitional taxes for school districts other than
15school districts of the first class.--Notwithstanding any other
16provision of the Public School Code of 1949 or any other law to
21(2) For all fiscal years beginning after June 30, 2014,
22no school district shall have any power or authority to levy,
23assess and collect any real property tax, except as necessary
24to fund the annual debt service payments for its outstanding
25debt in existence on December 31, 2012.
1real property tax and all other taxes in existence on July
231, 2013 at the rates in effect on that date for the use of a
3coterminous school district of the first class for fiscal
4year 2013-2014. The authority to levy, assess and collect
5such taxes for the use of coterminous school districts shall
6expire at midnight on December 31, 2013.
7(2) For all fiscal years beginning after June 30, 2013,
8no city of the first class shall have any power or authority
9to levy, assess and collect any of the taxes identified under
10paragraph (1) for school purposes, except as necessary to
11fund the annual debt service payments for its outstanding
12debt in existence on December 31, 2012.
15The personal income or earned income tax levied shall not be
16invalidated by reason of the fact that in determining the amount
17to be raised by such tax no deduction was made for
18appropriations or reimbursements paid or payable by the
19Commonwealth to the school district.
22Notwithstanding any other provision of the Public School Code
23of 1949 or any other law to the contrary, nothing in this act
24shall be construed to limit or impair a city of the first class
25from levying, assessing or collecting any tax for municipal
26purposes or from increasing the millage for real estate taxes or
27revenues if the revenues derived from the real property tax are
28used solely for municipal purposes.
1Section 1201. Expiration of authority to issue debt.
2No school district, including a school district of the first
3class, shall incur any electoral debt, lease rental debt or
4nonelectoral debt under 53 Pa.C.S. Pt. VII Subpt. B after the
5effective date of this section unless such debt is authorized
6under Chapter 3 or any other law.
10(1) Each school district, including a school district of
11the first class, shall identify the outstanding amount of all
12electoral debt, lease rental debt or nonelectoral debt
13incurred as of December 31, 2012.
14(2) On or before September 30, 2013, each school
15district, including a school district of the first class,
16shall certify and report to the Department of Revenue the
17outstanding amount of all electoral debt, lease rental debt
18or nonelectoral debt incurred as of December 31, 2012,
19together with any information requested by the department in
20order for the Commonwealth to comply with requirements of
22(b) Audit by Department of Revenue.--
23(1) The Department of Revenue shall audit each report
24submitted under subsection (a) and shall certify the amount
25of each report and the total aggregate amount of all reports
26to the State Treasurer on or before March 31, 2014.
27(2) If the Department of Revenue disputes all or any
28portion of a report submitted under subsection (a), the
29department shall not include such amount in the certification
30to the State Treasurer and shall notify the school district
1in writing of the exclusion from the certification.
4Section 1301. Definitions.
8"Base revenue." The money a school district receives from
9school property taxes during fiscal year 2013-2014 less the
10amount necessary to fund the annual debt service payments for
11its outstanding debt in existence on December 31, 2012.
12"Cost of living factor." The lesser of:
23Section 1302. Education Stabilization Fund.
26(b) Sources.--The following are the sources of the fund:
27(1) Money collected by the department under:
28(i) section 401; or
29(ii) Chapter 7.
30(2) All revenue transferred to or received by the
1property tax relief fund under:
7(4) Return on money in the fund.
10(d) Continuing appropriation.--The money of the fund is
11hereby continuously appropriated to the department as provided
12in this act. This appropriation shall not lapse at the end of
13any fiscal year.
18(1) Ascertain base revenue.
20(i) the amount ascertained under paragraph (1); by
21(ii) the cost of living factor.
23(i) the product under paragraph (2); by
30(1) Take the amount received in the prior fiscal year
1under this section.
3(i) the amount ascertained under paragraph (1); by
4(ii) the cost of living factor.
6(i) the product under paragraph (2); by
12Section 1501. Transitional provision.
13(a) Sales and use tax.--Notwithstanding the repeal of
14Article II of the Tax Reform Code of 1971, under section 1504,
15the department shall have the authority to enforce the
16collection of taxes imposed for transactions that occur prior to
17the effective date of this section under former Article II of
18the Tax Reform Code of 1971. The taxes collected after January
191, 2014, regardless of the transaction date, shall be deposited
20as provided in section 782.
21(b) Other taxes.--Notwithstanding the repeal of any
22provision of the Public School Code of 1949 or of any other law
23authorizing school districts to impose taxes, a governing body
24shall have the authority to enforce, after the effective date of
25the repeal, the collection of taxes levied and assessed under
26those former provisions prior to the effective date of the
27repeal under section 1504.
28Section 1502. Construction.
3Section 1503. Severability.
4The provisions of this act are severable as follows:
9(2) Under no circumstances shall the invalidity of any
10provision or application of this act affect the validity of
11any provision in this act that abolishes the power of the
12governing body and any school district and city of the first
13class or any other political subdivision to levy, assess or
14collect a tax on any interest in real property for school
16Section 1504. Repeals.
23(2) Any provision of the Public School Code of 1949 and
24of any other law relating to the authority of any school
25district to levy, assess and collect any tax on real property
26and the power of any city of the first class to levy, assess
27and collect any tax real property for school purposes is
28repealed upon the expiration of the respective schedule
29prescribed in sections 1101 and 1102.
30(3) Any provision of the act of the Public School Code
6(5) Any provision of the act of August 9, 1963 (P.L.643,
7No.341), known as the First Class City Public Education Home
8Rule Act, and any home rule school district charter adopted
9pursuant thereto is repealed insofar as it is inconsistent
10with this act.
16Section 1505. Applicability.
17Section 1504(b)(6) and Chapter 7 shall apply January 1, 2014.
18Section 1506. Effective date.
19This act shall take effect as follows: