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.

1Section 302. Definitions.

2Section 303. Limitation.

3Section 304. Preemption.

4Section 305. General tax authorization.

5Section 306. Referendum.

6Section 307. Continuity of tax.

7Section 308. Collections.

8Section 309. Credits.

9Section 310. Exemption and special provisions.

10Section 311. Regulations.

11Chapter 4. Education Tax

12Section 401. Education tax.

13Chapter 7. Sales and Use Tax for the Stabilization of Education
14Funding

15Subchapter A. Preliminary Provisions

16Section 701. Scope.

17Section 701.1. Definitions.

18Subchapter B. Sales and Use Tax

19Section 702. Imposition of tax.

20Section 703. Computation of tax.

21Subchapter C. Exclusions from Sales and Use Tax

22Section 704. Exclusions from tax.

23Section 705. Alternate imposition of tax.

24Section 706. Credit against tax.

25Subchapter D. Licenses

26Section 708. Licenses.

27Subchapter E. Hotel Occupancy Tax

28Section 709. Definitions.

29Section 710. Imposition of tax.

30Section 711. Seasonal tax returns.

1Subchapter F. Procedure and Administration

2Section 715. Persons required to make returns.

3Section 716. Form of returns.

4Section 717. Time for filing returns.

5Section 718. Extension of time for filing returns.

6Section 719. Place for filing returns.

7Section 720. Timely mailing treated as timely filing and
8payment.

9Section 721. Payment of tax.

10Section 722. Time of payment.

11Section 723. Other times for payment.

12Section 724. Place for payment.

13Section 725. Tax held in trust for Commonwealth.

14Section 726. Local receivers of use tax.

15Section 727. Discount.

16Section 728. (Reserved).

17Section 729. (Reserved).

18Section 730. Assessment.

19Section 731. Mode and time of assessment.

20Section 732. Reassessment.

21Section 733. (Reserved).

22Section 734. Review by Board of Finance and Revenue.

23Section 735. (Reserved).

24Section 736. Burden of proof.

25Section 737. Collection of tax.

26Section 738. Collection of tax on motor vehicles, trailers and
27semitrailers.

28Section 739. Precollection of tax.

29Section 740. Bulk and auction sales.

30Section 741. Collection on failure to request reassessment,

1review or appeal.

2Section 742. Lien for taxes.

3Section 743. Suit for taxes.

4Section 744. Tax suit comity.

5Section 745. Service.

6Section 746. Collection and payment of tax on credit sales.

7Section 747. Prepayment of tax.

8Section 747.1. Refund of sales tax attributed to bad debt.

9Section 748. Registration of transient vendors.

10Section 748.1. Bond.

11Section 748.2. Notification to department.

12Section 748.3. Seizure of property.

13Section 748.4. Fines.

14Section 748.5. Transient vendors subject to chapter.

15Section 748.6. Promoters.

16Section 749. (Reserved).

17Section 750. (Reserved).

18Section 751. (Reserved).

19Section 752. Refunds.

20Section 753. Refund petition.

21Section 754. (Reserved).

22Section 755. (Reserved).

23Section 756. Extended time for filing special petition for
24refund.

25Section 757. (Reserved).

26Section 758. Limitation on assessment and collection.

27Section 759. Failure to file return.

28Section 760. False or fraudulent return.

29Section 761. Extension of limitation period.

30Section 762. (Reserved).

1Section 763. (Reserved).

2Section 764. (Reserved).

3Section 765. Interest.

4Section 766. Additions to tax.

5Section 767. Penalties.

6Section 768. Criminal offenses.

7Section 769. Abatement of additions or penalties.

8Section 770. Rules and regulations.

9Section 771. Keeping of records.

10Section 771.1. Reports and records of promoters.

11Section 772. Examinations.

12Section 773. Records and examinations of delivery agents.

13Section 774. Unauthorized disclosure.

14Section 775. Cooperation with other governments.

15Section 776. Interstate compacts.

16Section 777. Bonds.

17Subchapter G. Funding Provisions

18Section 780. (Reserved).

19Section 781. Appropriation for refunds.

20Section 781.1. Construction.

21Section 782. Transfers to Education Stabilization Fund.

22Chapter 9. (Reserved)

23Chapter 11. Limitations on School District Taxation

24Section 1101. Authority to levy taxes and effect of future
25Constitutional amendment.

26Section 1102. Transitional taxes.

27Section 1103. Consideration of State appropriations or
28reimbursements.

29Section 1104. Taxes for cities and school districts of the
30first class.

1Chapter 12. Indebtedness

2Section 1201. Expiration of authority to issue debt.

3Section 1202. Notices and reporting by school districts of debt
4outstanding.

5Chapter 13. Funding Provisions

6Section 1301. Definitions.

7Section 1302. Education Stabilization Fund.

8Section 1303. Standard disbursements to school districts from
9Education Stabilization Fund.

10Chapter 15. Miscellaneous Provisions

11Section 1501. Transitional provision.

12Section 1502. Construction.

13Section 1503. Severability.

14Section 1504. Repeals.

15Section 1505. Applicability.

16Section 1506. Effective date.

17The General Assembly of the Commonwealth of Pennsylvania
18hereby enacts as follows:

19CHAPTER 1

20PRELIMINARY PROVISIONS

21Section 101. Short title.

22This act shall be known and may be cited as the Property Tax
23Independence Act.

24Section 102. Definitions.

25The following words and phrases when used in this act shall
26have the meanings given to them in this section unless the
27context clearly indicates otherwise:

28"Department." The Department of Revenue of the Commonwealth.

29"Education Stabilization Fund." The Education Stabilization
30Fund established in section 1302.

1"Fiscal year." The fiscal year of the Commonwealth beginning
2on July 1 and ending on June 30 of the immediately following
3calendar year.

4"Governing body." The board of school directors of a school
5district, except that the term shall mean the city council of a
6city of the first class for purposes of the levy and collection
7of any tax in a school district of the first class.

8"Internal Revenue Code of 1986." The Internal Revenue Code
9of 1986 (Public Law 99-514, 26 U.S.C. § 166).

10"Local Tax Enabling Act." The act of December 31, 1965 
11(P.L.1257, No.511), known as The Local Tax Enabling Act,

12"Public School Code of 1949." The act of March 10, 1949 
13(P.L.30, No.14), known as the Public School Code of 1949.

14"School district." A school district of the first class,
15first class A, second class, third class or fourth class,
16including any independent school district. For purposes of the
17levy, assessment and collection of any tax in a school district
18of the first class, the term shall include the City Council.

19"School per capita tax." The tax authorized pursuant to
20section 679 of the act of March 10, 1949 (P.L.30, No.14), known
21as the Public School Code of 1949,

22"Secretary." The Secretary of Revenue of the Commonwealth.

23"Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6, 
24No.2), known as the Tax Reform Code of 1971.

25CHAPTER 3

26Taxation by School Districts

27Section 301. Scope.

28This chapter authorizes school districts to levy, assess and
29collect a tax on personal income or a tax on earned income and
30net profits as a means of abolishing property taxation by the

1school district.

2Section 302. Definitions.

3The words and phrases used in this chapter shall have the
4same meanings given to them in the Tax Reform Code of 1971 or
5The Local Tax Enabling Act unless the context clearly indicates
6otherwise.

7Section 303. Limitation.

8Any tax imposed under this chapter shall be subject to the
9limitations set forth in Chapter 11.

10Section 304. Preemption.

11No act of the General Assembly shall vacate or preempt any
12resolution passed or adopted under the authority of this
13chapter, or any other act, providing authority for the
14imposition of a tax by a school district, unless the act of the
15General Assembly expressly vacates or preempts the authority to
16pass or adopt resolutions.

17Section 305. General tax authorization.

18(a) General rule.--A board of school directors may, by
19resolution, levy, assess and collect or provide for the levying,
20assessment and collection of a tax on personal income or a tax
21on earned income and net profits for general revenue purposes.

22(b) Personal income tax.--

23(1) A board of school directors may levy, assess and
24collect a tax on the personal income of resident individuals
25at a rate determined by the board of school directors.

26(2) A school district which seeks to levy the tax
27authorized under paragraph (1) must comply with section 306.

28(3) If a board of school directors seeks to impose a
29personal income tax under this subsection and the referendum
30under section 306 is approved by the electorate, the board of

1school directors shall have no authority to impose an earned
2income and net profits tax under subsection (c) or any other
3act.

4(4) A personal income tax imposed under the authority of
5this section shall be levied by the school district on each
6of the classes of income specified in section 303 of the Tax
7Reform Code of 1971 and regulations under that section,
8provisions of which are incorporated by reference into this
9chapter.

10(i) Notwithstanding the provisions of section 353(f)
11of the Tax Reform Code of 1971, the Department of Revenue
12may permit the proper officer or an authorized agent of a
13school district imposing a personal income tax pursuant
14to this chapter to inspect the tax returns of any
15taxpayer of the school district or may furnish to the
16officer or an authorized agent an abstract of the return
17of income of any current or former resident of the school
18district or supply information concerning any item of
19income contained in any tax return. The officer or
20authorized agent of the school district imposing a tax
21under this chapter shall be furnished the requested
22information upon payment to the Department of Revenue of
23the actual cost of providing the requested information.

24(ii) (A) Except for official purposes or as
25provided by law, it shall be unlawful for any officer
26or authorized agent of a school district to do any of
27the following:

28(I) Disclose to any other individual or
29entity the amount or source of income, profits,
30losses, expenditures or any particular

1information concerning income, profits, losses or
2expenditures contained in any return.

3(II) Permit any other individual or entity
4to view or examine any return or copy of a return
5or any book containing any abstract or
6particulars.

7(III) Print, publish or publicize in any
8manner any return; any particular information
9contained in or concerning the return; any amount
10or source of income, profits, losses or
11expenditures in or concerning the return; or any
12particular information concerning income,
13profits, losses or expenditures contained in or
14relating to any return.

15(B) Any officer or authorized agent of a school
16district that violates clause (A):

17(I) May be fined not more than $1,000 or
18imprisoned for not more than one year, or both.

19(II) May be removed from office or
20discharged from employment.

21(c) Earned income and net profits tax.--

22(1) A board of school directors may levy, assess and
23collect a tax on earned income and net profits of resident
24individuals at a rate determined by the board of school
25directors.

26(2) A school district which seeks to levy the tax
27authorized under paragraph (1) must comply with section 306.

28(3) If a board of school directors seeks to impose a tax
29on earned income and net profits under this subsection and
30the referendum under section 306 is approved by the

1electorate, the board of school directors shall have no
2authority to impose a personal income tax under subsection
3(b) or any other act.

4Section 306. Referendum.

5(a) General rule.--In order to levy a personal income tax or
6an earned income and net profits tax under this chapter, a
7governing body shall use the procedures set forth in subsections
8(b), (c), (d), (e), (f) and (g).

9(b) Approved by electorate.--

10(1) Subject to notice and public hearing requirements of
11subsection (g), a governing body may levy the personal income
12tax or earned income and net profits tax under this chapter
13only by obtaining the approval of the electorate of the
14affected school district in a public referendum at only the
15primary election preceding the fiscal year when the personal
16income tax or earned income and net profits tax will be
17initially imposed or the rate increased.

18(2) The referendum question must state the initial rate
19of the proposed personal income tax or earned income and net
20profits tax, the purpose of the tax, the duration of the tax
21and the amount of revenue to be generated by the
22implementation of the tax.

23(3) The question shall be in clear language that is
24readily understandable by a layperson. For the purpose of
25illustration, a referendum question may be framed as follows:

26Do you favor paying a personal income tax of X% for
27the purpose of X, for X years, which will generate
28$X?

29Do you favor paying an earned income and net profits
30tax of X% for the purpose of X, for X years, which

1will generate $X?

2(4) A nonlegal interpretative statement must accompany
3the question in accordance with section 201.1 of the act of
4June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
5Election Code, that includes the following:

6(i) the initial rate of the personal income or
7earned income and net profits tax imposed under this
8chapter; and

9(ii) the estimated revenues to be derived from the
10initial rate imposed under this chapter.

11(c) School district located in more than one county.--In the
12event a school district is located in more than one county,
13petitions under this section shall be filed with the election
14officials of the county in which the administrative offices of
15the school district are located.

16(d) Review and certification.--The election officials who
17receive a petition shall perform all administrative functions in
18reviewing and certifying the validity of the petition and
19conduct all necessary communications with the school district.

20(e) Notification.--

21(1) If the election officials of the county who receive
22the petition certify that it is sufficient under this section
23and determine that a question should be placed on the ballot,
24the decision shall be communicated to election officials in
25any other county in which the school district is also
26located.

27(2) Election officials in the other county or counties
28shall cooperate with election officials of the county that
29receives the petition to ensure that an identical question is
30placed on the ballot at the same election throughout the

1entire school district.

2(f) Certification of results.--Election officials from each
3county involved shall independently certify the results from
4their county to the governing body.

5(g) Adoption of resolution.--

6(1) In order to levy the tax under this section, the
7governing body shall adopt a resolution which shall refer to
8this chapter prior to placing a question on the ballot.

9(2) Prior to adopting a resolution imposing the tax
10authorized by this section, the governing body shall give
11public notice of its intent to adopt the resolution in the
12manner provided by The Local Tax Enabling Act and shall
13conduct at least two public hearings regarding the proposed
14adoption of the resolution. One public hearing shall be
15conducted during normal business hours and one public hearing
16shall be conducted during evening hours or on a weekend.

17Section 307. Continuity of tax.

18Every tax levied under this chapter shall continue in force
19on a fiscal year basis without annual reenactment unless the
20rate of the tax is subsequently changed or the duration placed
21on the referendum has expired.

22Section 308. Collections.

23Any income tax imposed under this chapter shall be subject to
24the provisions for collection and delinquency found in The Local
25Tax Enabling Act.

26Section 309. Credits.

27(a) Credit.--Except as set forth in subsection (b), the
28provisions of The Local Tax Enabling Act shall be applied by a
29board of school directors to determine any credits applicable to
30a tax imposed under this chapter.

1(b) Limitation.--Payment of any tax on income to any state
2other than Pennsylvania or to any political subdivision located
3outside the boundaries of this Commonwealth by a resident of a
4school district located in this Commonwealth shall not be
5credited to and allowed as a deduction from the liability of
6such person for any income tax imposed by the school district of
7residence pursuant to this chapter.

8Section 310. Exemption and special provisions.

9(a) Earned income and net profits tax.--A school district
10that imposes an earned income and net profits tax authorized
11under section 305(c) may exempt from the payment of that tax any
12person whose total income from all sources is less than $12,000.

13(b) Applicability to personal income tax.--Section 304 of
14the Tax Reform Code of 1971 shall apply to any personal income
15tax levied by a school district under section 305(b).

16Section 311. Regulations.

17A school district that imposes:

18(1) an earned income and net profits tax authorized
19under section 305(c) shall be subject to the provisions of
20The Local Tax Enabling Act and may adopt procedures for the
21processing of claims for credits and exemptions under section
22309 and 310; or

23(2) a personal income tax under section 305(b) shall be
24subject to all regulations adopted by the Department of
25Revenue in administering the tax due to the Commonwealth
26under Article III of the Tax Reform Code of 1971.

27CHAPTER 4

28EDUCATION TAX

29Section 401. Education tax.

30(a) General rule.--In addition to the tax collected under

1section 302 of the Tax Reform Code of 1971, the Commonwealth
2shall impose the tax set forth in subsection (c) in the same
3manner as the tax under the Tax Reform Code of 1971.

4(b) Imposition of tax.--

5(1) Every resident individual, estate or trust shall be
6subject to, and shall pay for the privilege of receiving each
7of the classes of income enumerated in section 303 of the Tax
8Reform Code of 1971, a tax upon each dollar of income
9received by that resident during that resident's taxable year
10at the rate of 1.27%.

11(2) Every nonresident individual, estate or trust shall
12be subject to, and shall pay for the privilege of receiving
13each of the classes of income enumerated in section 303 of
14the Tax Reform Code of 1971 from sources within this
15Commonwealth, a tax upon each dollar of income received by
16that nonresident during that nonresident's taxable year at
17the rate of 1.27%.

18(c) Deposit in Education Stabilization Fund.--All moneys
19collected under this section shall be deposited in the Education
20Stabilization Fund.

21(d) Combination of tax forms.--The department shall
22incorporate the taxpayer reporting requirement for the
23implementation of this section into the forms utilized by the
24department under Article III of the Tax Reform Code of 1971.

25(e) Definitions.--The words and phrases used in this section
26shall have the same meaning given to them in Article III of the
27Tax Reform Code of 1971.

28CHAPTER 7

29SALES AND USE TAX FOR THE

30STABILIZATION OF EDUCATION FUNDING

1SUBCHAPTER A

2PRELIMINARY PROVISIONS

3Section 701. Scope.

4The tax provided for under this chapter shall be known as the
5Sales and Use Tax for the Stabilization of Education Funding,
6which shall be a replacement for the sales and use tax
7authorized under Article II of the Tax Reform Code of 1971 and
8that is repealed by this act.

9Section 701.1. Definitions.

10The following words and phrases when used in this chapter
11shall have the meanings given to them in this section unless the
12context clearly indicates otherwise:

13(a) "Soft drinks."

14(1) All nonalcoholic beverages, whether carbonated or
15not, such as soda water, ginger ale, Coca Cola, lime cola,
16Pepsi Cola, Dr Pepper, fruit juice when plain or carbonated
17water, flavoring or syrup is added, carbonated water,
18orangeade, lemonade, root beer or any and all preparations,
19commonly referred to as soft drinks, of whatsoever kind, and
20are further described as including any and all beverages,
21commonly referred to as soft drinks, which are made with or
22without the use of any syrup.

23(2) The term does not include natural fruit or vegetable
24juices or their concentrates, or noncarbonated fruit juice
25drinks containing not less than 25% by volume of natural
26fruit juices or of fruit juice which has been reconstituted
27to its original state, or natural concentrated fruit or
28vegetable juices reconstituted to their original state,
29whether any of the natural juices are frozen or unfrozen,
30sweetened or unsweetened, seasoned with salt or spice or

1unseasoned. The term also does not include coffee, coffee
2substitutes, tea, cocoa, natural fluid milk or noncarbonated
3drinks made from milk derivatives.

4(b) "Maintaining a place of business in this Commonwealth."

5(1) Having, maintaining or using within this
6Commonwealth, either directly or through a subsidiary,
7representative or an agent, an office, distribution house,
8sales house, warehouse, service enterprise or other place of
9business; or any agent of general or restricted authority, or
10representative, irrespective of whether the place of
11business, representative or agent is located in this
12Commonwealth, permanently or temporarily, or whether the
13person or subsidiary maintaining the place of business,
14representative or agent is authorized to do business within
15this Commonwealth.

16(2) Engaging in any activity as a business within this
17Commonwealth by any person, either directly or through a
18subsidiary, representative or an agent, in connection with
19the lease, sale or delivery of tangible personal property or
20the performance of services thereon for use, storage or
21consumption or in connection with the sale or delivery for
22use of the services described in subclauses (11) through (18)
23of clause (k) of this section, including, but not limited to,
24having, maintaining or using any office, distribution house,
25sales house, warehouse or other place of business, any stock
26of goods or any solicitor, canvasser, salesman,
27representative or agent under its authority, at its direction
28or with its permission, regardless of whether the person or
29subsidiary is authorized to do business in this Commonwealth.

30(3) Regularly or substantially soliciting orders within

1this Commonwealth in connection with the lease, sale or
2delivery of tangible personal property to or the performance
3thereon of services or in connection with the sale or
4delivery of the services described in subclauses (11) through
5(18) of clause (k) of this section for residents of this
6Commonwealth by means of catalogs or other advertising,
7whether the orders are accepted within or without this
8Commonwealth.

9(3.1) Entering this Commonwealth by any person to
10provide assembly, service or repair of tangible personal
11property, either directly or through a subsidiary,
12representative or an agent.

13(3.2) Delivering tangible personal property to locations
14within this Commonwealth if the delivery includes the
15unpacking, positioning, placing or assembling of the tangible
16personal property.

17(3.3) Having any contact within this Commonwealth which
18would allow the Commonwealth to require a person to collect
19and remit tax under the Constitution of the United States.

20(3.4) Providing a customer's mobile telecommunications 
21service deemed to be provided by the customer's home service 
22provider under the Mobile Telecommunications Sourcing Act (4 
23U.S.C. § 116). For purposes of this clause, words and phrases 
24used in this clause shall have the meanings given to them in 
25the Mobile Telecommunications Sourcing Act.

26(4) The term does not include:

27(i) Owning or leasing of tangible or intangible
28property by a person who has contracted with an
29unaffiliated commercial printer for printing, provided
30that:

1(A) the property is for use by the commercial
2printer; and

3(B) the property is located at the Pennsylvania
4premises of the commercial printer.

5(ii) Visits by a person's employees or agents to the
6premises in this Commonwealth of an unaffiliated
7commercial printer with whom the person has contracted
8for printing in connection with said contract.

9(b.1) "Service performed in this Commonwealth."

10A service performed:

11(1) completely in this Commonwealth;

12(2) partially in this Commonwealth and partially outside
13this Commonwealth, when the recipient or user of the service
14is located in this Commonwealth; or

15(3) partially in this Commonwealth and partially outside
16this Commonwealth, when the recipient or user of the service
17is not located in this Commonwealth, but only to the extent
18of those services actually performed in this Commonwealth.

19The place of performance need not be determined if the recipient
20or user of the service is located in this Commonwealth.

21A service performed partially in this Commonwealth and partially
22outside this Commonwealth shall be presumed to have been
23performed completely in this Commonwealth unless the taxpayer
24can show the place of performance by clear and convincing
25evidence. With respect to interstate telecommunications
26services, only services for interstate telecommunications which
27originate or are terminated in this Commonwealth and which are
28billed and charged to a service address in this Commonwealth
29shall be presumed to have been performed completely in this
30Commonwealth and shall be subject to tax.

1(c) "Manufacture." The performance of manufacturing,
2fabricating, compounding, processing or other operations,
3engaged in as a business, which place any tangible personal
4property in a form, composition or character different from that
5in which it is acquired whether for sale or use by the
6manufacturer, and shall include, but not be limited to:

7(1) Every operation commencing with the first production
8stage and ending with the completion of tangible personal
9property having the physical qualities, including packaging,
10if any, passing to the ultimate consumer, which it has when
11transferred by the manufacturer to another. For purposes of
12this definition, "operation" includes clean rooms and their
13component systems, including: environmental control systems,
14antistatic vertical walls and manufacturing platforms and
15floors which are independent of the real estate; process
16piping systems; specialized lighting systems; deionized water
17systems; process vacuum and compressed air systems; process
18and specialty gases; and alarm or warning devices
19specifically designed to warn of threats to the integrity of
20the product or people. For purposes of this definition, a
21"clean room" is a location with a self-contained, sealed
22environment with a controlled, closed air system independent
23from the facility's general environmental control system.

24(2) The publishing of books, newspapers, magazines and
25other periodicals and printing.

26(3) Refining, blasting, exploring, mining and quarrying
27for, or otherwise extracting from the earth or from waste or
28stock piles or from pits or banks any natural resources,
29minerals and mineral aggregates including blast furnace slag.

30(4) Building, rebuilding, repairing and making additions

1to, or replacements in or upon vessels designed for
2commercial use of registered tonnage of 50 tons or more when
3produced on special order of the purchaser, or when rebuilt,
4repaired or enlarged, or when replacements are made upon
5order of or for the account of the owner.

6(5) Research having as its objective the production of a
7new or an improved:

8(i) product or utility service; or

9(ii) method of producing a product or utility
10service,

11but in either case not including market research or research
12having as its objective the improvement of administrative
13efficiency.

14(6) Remanufacture for wholesale distribution by a
15remanufacturer of motor vehicle parts from used parts
16acquired in bulk by the remanufacturer using an assembly line
17process which involves the complete disassembly of such parts
18and integration of the components of such parts with other
19used or new components of parts, including the salvaging,
20recycling or reclaiming of used parts by the remanufacturer.

21(7) Remanufacture or retrofit by a manufacturer or
22remanufacturer of aircraft, armored vehicles, other defense-
23related vehicles having a finished value of at least $50,000.
24Remanufacture or retrofit involves the disassembly of such
25aircraft, vehicles, parts or components, including electric
26or electronic components, the integration of those parts and
27components with other used or new parts or components,
28including the salvaging, recycling or reclaiming of the used
29parts or components and the assembly of the new or used
30aircraft, vehicles, parts or components. The term does not

1include constructing, altering, servicing, repairing or
2improving real estate or repairing, servicing or installing
3tangible personal property, nor the cooking, freezing or
4baking of fruits, vegetables, mushrooms, fish, seafood,
5meats, poultry or bakery products. For purposes of this
6clause, the following terms or phrases have the following
7meanings:

8(i) "aircraft" means fixed-wing aircraft,
9helicopters, powered aircraft, tilt-rotor or tilt-wing
10aircraft, unmanned aircraft and gliders;

11(ii) "armored vehicles" means tanks, armed personnel
12carriers and all other armed track or semitrack vehicles;
13and

14(iii) "other defense-related vehicles" means trucks,
15truck-tractors, trailers, jeeps and other utility
16vehicles, including any unmanned vehicles.

17(c.1) "Blasting." The use of any combustible or explosive
18composition in the removal of material resources, minerals and
19mineral aggregates from the earth including the separation of
20the dirt, waste and refuse in which they are found.

21(d) "Processing." The performance of the following
22activities when engaged in as a business enterprise:

23(1) The filtering or heating of honey, the cooking,
24baking or freezing of fruits, vegetables, mushrooms, fish,
25seafood, meats, poultry or bakery products, when the person
26engaged in the business packages the property in sealed
27containers for wholesale distribution.

28(1.1) The processing of fruits or vegetables by
29cleaning, cutting, coring, peeling or chopping and treating
30to preserve, sterilize or purify and substantially extend the

1useful shelf life of the fruits or vegetables, when the
2person engaged in the activity packages the property in
3sealed containers for wholesale distribution.

4(2) The scouring, carbonizing, cording, combing,
5throwing, twisting or winding of natural or synthetic fibers,
6or the spinning, bleaching, dyeing, printing or finishing of
7yarns or fabrics, when the activities are performed prior to
8sale to the ultimate consumer.

9(3) The electroplating, galvanizing, enameling,
10anodizing, coloring, finishing, impregnating or heat treating
11of metals or plastics for sale or in the process of
12manufacturing.

13(3.1) The blanking, shearing, leveling, slitting or
14burning of metals for sale to or use by a manufacturer or
15processor.

16(4) The rolling, drawing or extruding of ferrous and
17nonferrous metals.

18(5) The fabrication for sale of ornamental or structural
19metal or of metal stairs, staircases, gratings, fire escapes
20or railings, not including fabrication work done at the
21construction site.

22(6) The preparation of animal feed or poultry feed for
23sale.

24(7) The production, processing and bottling of
25nonalcoholic beverages for wholesale distribution.

26(8) The operation of a saw mill or planing mill for the
27production of lumber or lumber products for sale. The
28operation of a saw mill or planing mill begins with the
29unloading by the operator of the saw mill or planing mill of
30logs, timber, pulpwood or other forms of wood material to be

1used in the saw mill or planing mill.

2(9) The milling for sale of flour or meal from grains.

3(9.1) The aging, stripping, conditioning, crushing and
4blending of tobacco leaves for use as cigar filler or as
5components of smokeless tobacco products for sale to
6manufacturers of tobacco products.

7(10) The slaughtering and dressing of animals for meat
8to be sold or to be used in preparing meat products for sale,
9and the preparation of meat products including lard, tallow,
10grease, cooking and inedible oils for wholesale distribution.

11(11) The processing of used lubricating oils.

12(12) The broadcasting of radio and television programs
13of licensed commercial or educational stations.

14(13) The cooking or baking of bread, pastries, cakes,
15cookies, muffins and donuts when the person engaged in the
16activity sells the items at retail at locations that do not
17constitute an establishment from which ready-to-eat food and
18beverages are sold. For purposes of this clause, a bakery, a
19pastry shop and a donut shop shall not be considered an
20establishment from which ready-to-eat food and beverages are
21sold.

22(14) The cleaning and roasting and the blending,
23grinding or packaging for sale of coffee from green coffee
24beans or the production of coffee extract.

25(15) The preparation of dry or liquid fertilizer for
26sale.

27(16) The production, processing and packaging of ice for
28wholesale distribution.

29(17) The producing of mobile telecommunications
30services.

1(e) "Person." Any natural person, association, fiduciary,
2partnership, corporation or other entity, including the
3Commonwealth of Pennsylvania, its political subdivisions and
4instrumentalities and public authorities. Whenever used in
5prescribing and imposing a penalty or imposing a fine or
6imprisonment, or both, the term as applied to an association,
7includes the members of the association and, as applied to a
8corporation, the officers of the corporation.

9(f) "Purchase at retail."

10(1) The acquisition for a consideration of the
11ownership, custody or possession of tangible personal
12property other than for resale by the person acquiring the
13same when the acquisition is made for the purpose of
14consumption or use, whether the acquisition is absolute or
15conditional, and by any means it is effected.

16(2) The acquisition of a license to use or consume, and
17the rental or lease of tangible personal property, other than
18for resale regardless of the period of time the lessee has
19possession or custody of the property.

20(3) The obtaining for a consideration of those services
21described in subclauses (2), (3) and (4) of clause (k) of
22this section other than for resale.

23(4) A retention after March 7, 1956, of possession,
24custody or a license to use or consume pursuant to a rental
25contract or other lease arrangement (other than as security)
26other than for resale.

27(5) The obtaining for a consideration of those services
28described in subclauses (11) through (18) of clause (k) of
29this section.

30The term, with respect to liquor and malt or brewed beverages,

1includes the purchase of liquor from any Pennsylvania Liquor
2Store by any person for any purpose, and the purchase of malt or
3brewed beverages from a manufacturer of malt or brewed
4beverages, distributor or importing distributor by any person
5for any purpose, except purchases from a manufacturer of malt or
6brewed beverages by a distributor or importing distributor or
7purchases from an importing distributor by a distributor within
8the meaning of the Liquor Code. The term does not include any
9purchase of malt or brewed beverages from a retail dispenser or
10any purchase of liquor or malt or brewed beverages from a person
11holding a retail liquor license within the meaning of and
12pursuant to the provisions of the Liquor Code, but includes any
13purchase or acquisition of liquor or malt or brewed beverages
14other than pursuant to the provisions of the Liquor Code.

15(g) "Purchase price."

16(1) The total value of anything paid or delivered, or
17promised to be paid or delivered, whether money or otherwise,
18in complete performance of a sale at retail or purchase at
19retail, without any deduction on account of the cost or value
20of the property sold, cost or value of transportation, cost
21or value of labor or service, interest or discount paid or
22allowed after the sale is consummated, any other taxes
23imposed by the Commonwealth or any other expense except that
24there shall be excluded any gratuity or separately stated
25deposit charge for returnable containers.

26(2) The value of any tangible personal property actually
27taken in trade or exchange in lieu of the whole or any part
28of the purchase price shall be deducted from the purchase
29price. For the purpose of this clause, the amount allowed by
30reason of tangible personal property actually taken in trade

1or exchange shall be considered the value of such property.

2(3) (i) In determining the purchase price on the sale
3or use of taxable tangible personal property or a service
4where, because of affiliation of interests between the
5vendor and purchaser, or irrespective of any such
6affiliation, if for any other reason the purchase price
7declared by the vendor or taxpayer on the taxable sale or
8use of such tangible personal property or service is, in
9the opinion of the department, not indicative of the true
10value of the article or service or the fair price
11thereof, the department shall, pursuant to uniform and
12equitable rules, determine the amount of constructive
13purchase price on the basis of which the tax shall be
14computed and levied. The rules shall provide for a
15constructive amount of purchase price for each sale or
16use which would naturally and fairly be charged in an
17arms-length transaction in which the element of common
18interest between the vendor or purchaser is absent or, if
19no common interest exists, any other element causing a
20distortion of the price or value is likewise absent.

21(ii) For the purpose of this clause where a taxable
22sale or purchase at retail transaction occurs between a
23parent and a subsidiary, affiliate or controlled
24corporation of such parent corporation, there shall be a
25rebuttable presumption, that because of the common
26interest, the transaction was not at arms-length.

27(4) Where there is a transfer or retention of possession
28or custody, whether it is termed a rental, lease, service or
29otherwise, of tangible personal property including, but not
30limited to, linens, aprons, motor vehicles, trailers, tires,

1industrial office and construction equipment, and business
2machines the full consideration paid or delivered to the
3vendor or lessor shall be considered the purchase price, even
4though the consideration is separately stated and designated
5as payment for processing, laundering, service, maintenance,
6insurance, repairs, depreciation or otherwise. Where the
7vendor or lessor supplies or provides an employee to operate
8the tangible personal property, the value of the labor
9supplied may be excluded and shall not be considered as part
10of the purchase price if separately stated. There shall also
11be included as part of the purchase price the value of
12anything paid or delivered, or promised to be paid or
13delivered by a lessee, whether money or otherwise, to any
14person other than the vendor or lessor by reason of the
15maintenance, insurance or repair of the tangible personal
16property which a lessee has the possession or custody of
17under a rental contract or lease arrangement.

18(5) (i) With respect to the tax imposed by section
19702(a)(2), on any tangible personal property originally
20purchased by the user of the property six months or
21longer prior to the first taxable use of the property
22within this Commonwealth, the user may elect to pay tax
23on a substituted base determined by considering the
24purchase price of the property for tax purposes to be
25equal to the prevailing market price of similar tangible
26personal property at the time and place of the first use
27within this Commonwealth.

28(ii) The election must be made at the time of filing
29a tax return with the department and reporting the tax
30liability and paying the proper tax due plus all accrued

1penalties and interest, if any, within six months of the
2due date of such report and payment, as provided for by
3section 717(a) and (c).

4(6) The purchase price of employment agency services and
5help supply services shall be the service fee paid by the
6purchaser to the vendor or supplying entity. The term
7"service fee," as used in this subclause, means the total
8charge or fee of the vendor or supplying entity minus the
9costs of the supplied employee which costs are wages,
10salaries, bonuses and commissions, employment benefits,
11expense reimbursements and payroll and withholding taxes, to
12the extent that these costs are specifically itemized or that
13these costs in aggregate are stated in billings from the
14vendor or supplying entity. To the extent that these costs
15are not itemized or stated on the billings, then the service
16fee shall be the total charge or fee of the vendor or
17supplying entity.

18(7) Unless the vendor separately states that portion of
19the billing which applies to premium cable service as defined
20in clause (ll), the total bill for the provision of all cable
21services shall be the purchase price.

22(8) The purchase price of prebuilt housing shall be 60%
23of the manufacturer's selling price, provided that a
24manufacturer of prebuilt housing who precollects tax from a
25prebuilt housing builder at the time of the sale to the
26prebuilt housing builder shall have the option to collect tax
27on 60% of the selling price or on 100% of the actual cost of
28the supplies and materials used in the manufacture of the
29prebuilt housing.

30(h) "Purchaser." Any person who acquires, for a

1consideration, the ownership, custody or possession by sale,
2lease or otherwise of tangible personal property, or who obtains
3services in exchange for a purchase price but not including an
4employer who obtains services from his employees in exchange for
5wages or salaries when such services are rendered in the
6ordinary scope of their employment.

7(i) "Resale."

8(1) Any transfer of ownership, custody or possession of
9tangible personal property for a consideration, including the
10grant of a license to use or consume and transactions where
11the possession of the property is transferred but where the
12transferor retains title only as security for payment of the
13selling price whether the transaction is designated as
14bailment lease, conditional sale or otherwise.

15(2) The physical incorporation of tangible personal
16property as an ingredient or constituent into other tangible
17personal property, which is to be sold in the regular course
18of business or the performance of those services described in
19subclauses (2), (3) and (4) of clause (k) upon tangible
20personal property which is to be sold in the regular course
21of business or where the person incorporating the property
22has undertaken at the time of purchase to cause it to be
23transported in interstate commerce to a destination outside
24this Commonwealth. The term includes telecommunications
25services purchased by a cable operator or video programmer
26that are used to transport or deliver cable or video
27programming services which are sold in the regular course of
28business.

29(3) The term also includes tangible personal property
30purchased or having a situs within this Commonwealth solely

1for the purpose of being processed, fabricated or
2manufactured into, attached to or incorporated into tangible
3personal property and thereafter transported outside this
4Commonwealth for use exclusively outside this Commonwealth.

5(4) The term does not include any sale of malt or brewed 
6beverages by a retail dispenser, or any sale of liquor or 
7malt or brewed beverages by a person holding a retail liquor 
8license within the meaning of the act of April 12, 1951 
9(P.L.90, No.21), known as the Liquor Code.

10(5) The physical incorporation of tangible personal
11property as an ingredient or constituent in the construction
12of foundations for machinery or equipment the sale or use of
13which is excluded from tax under the provisions of paragraphs
14(A), (B), (C) and (D) of subclause (8) of clause (k) and
15subparagraphs (i), (ii), (iii) and (iv) of paragraph (B) of
16subclause (4) of clause (o), whether the foundations at the
17time of construction or transfer constitute tangible personal
18property or real estate.

19(j) "Resident."

20(1) Any natural person:

21(i) who is domiciled in this Commonwealth; or

22(ii) who maintains a permanent place of abode within
23this Commonwealth and spends in the aggregate more than
2460 days of the year within this Commonwealth.

25(2) Any corporation:

26(i) incorporated under the laws of this
27Commonwealth;

28(ii) authorized to do business or doing business
29within this Commonwealth; or

30(iii) maintaining a place of business within this

1Commonwealth.

2(3) Any association, fiduciary, partnership or other
3entity:

4(i) domiciled in this Commonwealth;

5(ii) authorized to do business or doing business
6within this Commonwealth; or

7(iii) maintaining a place of business within this
8Commonwealth.

9(k) "Sale at retail."

10(1) Any transfer, for a consideration, of the ownership,
11custody or possession of tangible personal property,
12including the grant of a license to use or consume whether
13the transfer is absolute or conditional and by any means the
14transfer is effected.

15(2) The rendition of the service of printing or
16imprinting of tangible personal property for a consideration
17for persons who furnish, either directly or indirectly, the
18materials used in the printing or imprinting.

19(3) The rendition for a consideration of the service of:

20(i) washing, cleaning, waxing, polishing or
21lubricating of motor vehicles of another, regardless of
22whether any tangible personal property is transferred in
23conjunction with the activity; and

24(ii) inspecting motor vehicles pursuant to the 
25mandatory requirements of 75 Pa.C.S. (relating to 
26vehicles).

27(4) The rendition for a consideration of the service of
28repairing, altering, mending, pressing, fitting, dyeing,
29laundering, drycleaning or cleaning tangible personal
30property other than wearing apparel or shoes, or applying or

1installing tangible personal property as a repair or
2replacement part of other tangible personal property other
3than wearing apparel or shoes for a consideration, regardless
4of whether the services are performed directly or by any
5means other than by coin-operated self-service laundry
6equipment for wearing apparel or household goods and whether
7or not any tangible personal property is transferred in
8conjunction with the activity, except such services as are
9rendered in the construction, reconstruction, remodeling,
10repair or maintenance of real estate.

11(5) (Reserved).

12(6) (Reserved).

13(7) (Reserved).

14(8) Any retention of possession, custody or a license to
15use or consume tangible personal property or any further
16obtaining of services described in subclauses (2), (3) and
17(4) of this clause pursuant to a rental or service contract
18or other arrangement (other than as security). The term does
19not include:

20(i) any transfer of tangible personal property or
21rendition of services for the purpose of resale; or

22(ii) the rendition of services or the transfer of
23tangible personal property, including, but not limited
24to, machinery and equipment and their parts and supplies
25to be used or consumed by the purchaser directly in the
26operations of:

27(A) The manufacture of tangible personal
28property.

29(B) Farming, dairying, agriculture, horticulture 
30or floriculture when engaged in as a business 

1enterprise. The term "farming" includes the 
2propagation and raising of ranch raised fur-bearing 
3animals and the propagation of game birds for 
4commercial purposes by holders of propagation permits 
5issued under 34 Pa.C.S. (relating to game) and the 
6propagation and raising of horses to be used 
7exclusively for commercial racing activities.

8(C) The producing, delivering or rendering of a
9public utility service, or in constructing,
10reconstructing, remodeling, repairing or maintaining
11the facilities which are directly used in producing,
12delivering or rendering the service.

13(D) Processing as defined in clause (d). The 
14exclusions provided in this paragraph or paragraph 
15(A), (B) or (C) do not apply to any vehicle required 
16registered under 75 Pa.C.S. (relating to vehicles), 
17except those vehicles used directly by a public 
18utility engaged in business as a common carrier; to 
19maintenance facilities; or to materials, supplies or 
20equipment to be used or consumed in the construction, 
21reconstruction, remodeling, repair or maintenance of 
22real estate other than directly used machinery, 
23equipment, parts or foundations that may be affixed 
24to such real estate. The exclusions provided in this 
25paragraph or paragraph (A), (B) or (C) do not apply 
26to tangible personal property or services to be used 
27or consumed in managerial sales or other 
28nonoperational activities, nor to the purchase or use 
29of tangible personal property or services by any 
30person other than the person directly using the same 

1in the operations described in this paragraph or 
2paragraph (A), (B) or (C).

3The exclusion provided in paragraph (C) does not apply to:

4(i) construction materials, supplies or equipment
5used to construct, reconstruct, remodel, repair or
6maintain facilities not used directly by the purchaser in
7the production, delivering or rendition of public utility
8service;

9(ii) construction materials, supplies or equipment
10used to construct, reconstruct, remodel, repair or
11maintain a building, road or similar structure; or

12(iii) tools and equipment used but not installed in
13the maintenance of facilities used directly in the
14production, delivering or rendition of a public utility
15service. The exclusions provided in paragraphs (A), (B),
16(C) and (D) do not apply to the services enumerated in
17clauses (k)(11) through (18) and (w) through (kk), except
18that the exclusion provided in this subclause for
19farming, dairying and agriculture shall apply to the
20service enumerated in clause (z).

21(9) Where tangible personal property or services are
22utilized for purposes constituting a sale at retail and for
23purposes excluded from the definition of "sale at retail," it
24shall be presumed that the tangible personal property or
25services are utilized for purposes constituting a sale at
26retail and subject to tax unless the user proves to the
27department that the predominant purposes for which such
28tangible personal property or services are utilized do not
29constitute a sale at retail.

30(10) The term, with respect to liquor and malt or brewed 

1beverages, includes the sale of liquor by any Pennsylvania 
2liquor store to any person for any purpose, and the sale of 
3malt or brewed beverages by a manufacturer of malt or brewed 
4beverages, distributor or importing distributor to any person 
5for any purpose, except sales by a manufacturer of malt or 
6brewed beverages to a distributor or importing distributor or 
7sales by an importing distributor to a distributor within the 
8meaning of the act of April 12, 1951 (P.L.90, No.21), known 
9as the Liquor Code. The term does not include any sale of 
10malt or brewed beverages by a retail dispenser or any sale of 
11liquor or malt or brewed beverages by a person holding a 
12retail liquor license within the meaning of and pursuant to 
13the provisions of the Liquor Code, but shall include any sale 
14of liquor or malt or brewed beverages other than pursuant to 
15the provisions of the Liquor Code.

16(11) The rendition for a consideration of lobbying
17services.

18(12) The rendition for a consideration of adjustment
19services, collection services or credit reporting services.

20(13) The rendition for a consideration of secretarial or
21editing services.

22(14) The rendition for a consideration of disinfecting
23or pest control services, building maintenance or cleaning
24services.

25(15) The rendition for a consideration of employment
26agency services or help supply services.

27(16) (Reserved).

28(17) The rendition for a consideration of lawn care
29service.

30(18) The rendition for a consideration of self-storage

1service.

2(19) The rendition for a consideration of a mobile
3telecommunications service.

4(20) Except as otherwise provided under section 704, the
5rendition for a consideration of any service when the primary
6objective of the purchaser is the receipt of any benefit of
7the service performed, as distinguished from the receipt of
8property. The following provisions shall apply:

9(i) In determining what is a service, the intended
10use or stated objective of the contracting parties shall
11not necessarily be controlling.

12(ii) Any service performed in this Commonwealth
13shall be subject to the tax imposed under this chapter
14unless specifically exempted in this chapter.

15(iii) With respect to services performed in this
16Commonwealth for a recipient or user of the services
17located in another state in which the services, had they
18been performed in that state, would not be subject to a
19sales or use tax under the laws of that state, then no
20tax may be imposed under this chapter.

21(iv) The tax on the sale or use of services shall
22become due at the time payment or other consideration is
23made for the portion of services actually paid.

24(l) "Storage." Any keeping or retention of tangible
25personal property within this Commonwealth for any purpose
26including the interim keeping, retaining or exercising any right
27or power over such tangible personal property. This term is in
28no way limited to the provision of self-storage service.

29(m) "Tangible personal property." Corporeal personal
30property including, but not limited to, goods, wares,

1merchandise, steam and natural and manufactured and bottled gas
2for non-residential use, electricity for non-residential use,
3prepaid telecommunications, premium cable or premium video
4programming service, spirituous or vinous liquor and malt or
5brewed beverages and soft drinks, interstate telecommunications
6service originating or terminating in this Commonwealth and
7charged to a service address in this Commonwealth, intrastate
8telecommunications service with the exception of:

9(1) Subscriber line charges and basic local telephone
10service for residential use.

11(2) Charges for telephone calls paid for by inserting
12money into a telephone accepting direct deposits of money to
13operate, provided further, the service address of any
14intrastate telecommunications service is deemed to be within
15this Commonwealth or within a political subdivision,
16regardless of how or where billed or paid.

17In the case of any interstate or intrastate telecommunications
18service, any charge paid through a credit or payment mechanism
19which does not relate to a service address, such as a bank,
20travel, credit or debit card, but not including prepaid
21telecommunications, is deemed attributable to the address of
22origination of the telecommunications service.

23(n) "Taxpayer." Any person required to pay or collect the
24tax imposed by this chapter.

25(o) "Use."

26(1) The exercise of any right or power incidental to the
27ownership, custody or possession of tangible personal
28property and includes, but is not limited to, transportation,
29storage or consumption.

30(2) The obtaining by a purchaser of the service of

1printing or imprinting of tangible personal property when the
2purchaser furnishes, either directly or indirectly, the
3articles used in the printing or imprinting.

4(3) The obtaining by a purchaser of the services of:

5(i) washing, cleaning, waxing, polishing or
6lubricating of motor vehicles regardless of whether any
7tangible personal property is transferred to the
8purchaser in conjunction with the services; and

9(ii) inspecting motor vehicles pursuant to the 
10mandatory requirements of 75 Pa.C.S. (relating to 
11vehicles).

12(4) The obtaining by a purchaser of the service of
13repairing, altering, mending, pressing, fitting, dyeing,
14laundering, drycleaning or cleaning tangible personal
15property other than wearing apparel or shoes or applying or
16installing tangible personal property as a repair or
17replacement part of other tangible personal property,
18including, but not limited to, wearing apparel or shoes,
19regardless of whether the services are performed directly or
20by any means other than by means of coin-operated self-
21service laundry equipment for wearing apparel or household
22goods, and regardless of whether any tangible personal
23property is transferred to the purchaser in conjunction with
24the activity. The term "use" does not include:

25(A) Any tangible personal property acquired and
26kept, retained or over which power is exercised
27within this Commonwealth on which the taxing of the
28storage, use or other consumption thereof is
29expressly prohibited by the Constitution of the
30United States or which is excluded from tax under

1other provisions of this chapter.

2(B) The use or consumption of tangible personal
3property, including, but not limited to, machinery
4and equipment and parts therefor, and supplies or the
5obtaining of the services described in subclauses
6(2), (3) and (4) of this clause directly in the
7operations of:

8(i) The manufacture of tangible personal property.

9(ii) Farming, dairying, agriculture, horticulture or 
10floriculture when engaged in as a business enterprise. 
11The term includes the propagation and raising of ranch-
12raised furbearing animals and the propagation of game 
13birds for commercial purposes by holders of propagation 
14permits issued under 34 Pa.C.S. (relating to game) and 
15the propagation and raising of horses to be used 
16exclusively for commercial racing activities.

17(iii) The producing, delivering or rendering of a
18public utility service, or in constructing,
19reconstructing, remodeling, repairing or maintaining the
20facilities which are directly used in producing,
21delivering or rendering such service.

22(iv) Processing as defined in subclause (d).

23The exclusions provided in subparagraphs (i), (ii), (iii) 
24and (iv) do not apply to any vehicle required to be 
25registered under 75 Pa.C.S. (relating to vehicles) except 
26those vehicles directly used by a public utility engaged 
27in the business as a common carrier; to maintenance 
28facilities; or to materials, supplies or equipment to be 
29used or consumed in the construction, reconstruction, 
30remodeling, repair or maintenance of real estate other 

1than directly used machinery, equipment, parts or 
2foundations therefor that may be affixed to such real 
3estate. The exclusions provided in subparagraphs (i), 
4(ii), (iii) and this subparagraph do not apply to 
5tangible personal property or services to be used or 
6consumed in managerial sales or other nonoperational 
7activities, nor to the purchase or use of tangible 
8personal property or services by any person other than 
9the person directly using the same in the operations 
10described in subparagraphs (i), (ii), (iii) and this 
11subparagraph. The exclusion provided in subparagraph 
12(iii) does not apply to:

13(A) construction materials, supplies or
14equipment used to construct, reconstruct, remodel,
15repair or maintain facilities not used directly by
16the purchaser in the production, delivering or
17rendition of public utility service; or

18(B) tools and equipment used but not installed
19in the maintenance of facilities used directly in the
20production, delivering or rendition of a public
21utility service.

22The exclusion provided in subparagraphs (i), (ii), (iii)
23and this subparagraph does not apply to the services
24enumerated in clauses (9) through (16) and (w) through
25(kk), except that the exclusion provided in subparagraph
26(ii) for farming, dairying and agriculture shall apply to
27the service enumerated in clause (z).

28(5) Where tangible personal property or services are
29utilized for purposes constituting a use, and for purposes
30excluded from the definition of "use," it shall be presumed

1that the property or services are utilized for purposes
2constituting a sale at retail and subject to tax unless the
3user proves to the department that the predominant purposes
4for which the property or services are utilized do not
5constitute a sale at retail.

6(6) The term, with respect to liquor and malt or brewed 
7beverages, includes the purchase of liquor from any 
8Pennsylvania Liquor Store by any person for any purpose and 
9the purchase of malt or brewed beverages from a manufacturer 
10of malt or brewed beverages, distributor or importing 
11distributor by any person for any purpose, except purchases 
12from a manufacturer of malt or brewed beverages by a 
13distributor or importing distributor, or purchases from an 
14importing distributor by a distributor within the meaning of 
15the act of April 12, 1951 (P.L.90, No.21), known as the 
16Liquor Code. The term does not include any purchase of malt 
17or brewed beverages from a retail dispenser or any purchase 
18of liquor or malt or brewed beverages from a person holding a 
19retail liquor license within the meaning of and pursuant to 
20the provisions of the Liquor Code, but includes the exercise 
21of any right or power incidental to the ownership, custody or 
22possession of liquor or malt or brewed beverages obtained by 
23the person exercising the right or power in any manner other 
24than pursuant to the provisions of the Liquor Code.

25(7) The use of tangible personal property purchased at
26retail on which the services described in subclauses (2), (3)
27and (4) of this clause have been performed shall be deemed to
28be a use of said services by the person using the property.

29(8) (Reserved).

30(9) The obtaining by the purchaser of lobbying services.

1(10) The obtaining by the purchaser of adjustment
2services, collection services or credit reporting services.

3(11) The obtaining by the purchaser of secretarial or
4editing services.

5(12) The obtaining by the purchaser of disinfecting or
6pest control services, building maintenance or cleaning
7services.

8(13) The obtaining by the purchaser of employment agency
9services or help supply services.

10(14) (Reserved).

11(15) The obtaining by the purchaser of lawn care
12service.

13(16) The obtaining by the purchaser of self-storage
14service.

15(17) The obtaining by a construction contractor of
16tangible personal property or services provided to tangible
17personal property which will be used pursuant to a
18construction contract regardless of whether the tangible
19personal property or services are transferred.

20(18) The obtaining of mobile telecommunications service
21by a customer.

22(19) Except as otherwise provided under section 704, the
23obtaining by the purchaser of any service, not otherwise set
24forth in this definition, when the primary objective of the
25purchaser is the receipt of any benefit of the service
26performed, as distinguished from the receipt of property. The
27following provisions shall apply:

28(i) In determining what is a service, the intended
29use or stated objective of the contracting parties shall
30not necessarily be controlling.

1(ii) Any service performed in this Commonwealth
2shall be subject to the tax imposed under this chapter
3unless specifically exempted in this chapter.

4(iii) With respect to services performed in this
5Commonwealth for a recipient or user of the services
6located in another state in which the services, had they
7been performed in that state, would not be subject to a
8sales or use tax under the laws of that state, then no
9tax may be imposed under this chapter.

10(iv) The tax on the sale or use of services shall
11become due at the time payment or other consideration is
12made for the portion of services actually paid.

13(p) "Vendor." Any person maintaining a place of business in
14this Commonwealth, selling or leasing tangible personal
15property, or rendering services, the sale or use of which is
16subject to the tax imposed by this chapter but not including any
17employee who in the ordinary scope of employment renders
18services to his employer in exchange for wages and salaries.

19(q) (Reserved).

20(r) "Gratuity." Any amount paid or remitted for services
21performed in conjunction with any sale of food or beverages, or
22hotel or motel accommodations which amount is in excess of the
23charges and the tax for such food, beverages or accommodations
24regardless of the method of billing or payment.

25(s) "Commercial aircraft operator." A person, excluding a
26scheduled airline who engages in any or all of the following:
27charter of aircraft, leasing of aircraft, aircraft sales,
28aircraft rental, flight instruction, air freight or any other
29flight activities for compensation.

30(t) "Transient vendor."

1(1) Any person who:

2(i) brings into this Commonwealth, by automobile,
3truck or other means of transportation, or purchases in
4this Commonwealth tangible personal property the sale or
5use of which is subject to the tax imposed by this
6chapter or comes into this Commonwealth to perform
7services the sale or use of which is subject to the tax
8imposed by this chapter;

9(ii) offers or intends to offer the tangible
10personal property or services for sale at retail within
11this Commonwealth; and

12(iii) does not maintain an established office,
13distribution house, saleshouse, warehouse, service
14enterprise, residence from which business is conducted or
15other place of business within this Commonwealth.

16(2) The term does not include a person who delivers
17tangible personal property within this Commonwealth pursuant
18to orders for the property which were solicited or placed by
19mail or other means.

20(3) The term does not include a person who handcrafts
21items for sale at special events, including, but not limited
22to, fairs, carnivals, art and craft shows and other festivals
23and celebrations within this Commonwealth.

24(u) "Promoter." A person who either, directly or
25indirectly, rents, leases or otherwise operates or grants
26permission to any person to use space at a show for the display
27for sale or for the sale of tangible personal property or
28services subject to tax under section 702.

29(v) "Show." An event, the primary purpose of which involves
30the display or exhibition of any tangible personal property or

1services for sale, including, but not limited to, a flea market,
2antique show, coin show, stamp show, comic book show, hobby
3show, automobile show, fair or any similar show, whether held
4regularly or of a temporary nature, at which more than one
5vendor displays for sale or sells tangible personal property or
6services subject to tax under section 702.

7(w) "Lobbying services." Providing the services of a 
8lobbyist, as defined in the definition of "lobbyist" in 65 
9Pa.C.S. Ch. 13 (relating to lobby regulation and disclosure).

10(x) "Adjustment services, collection services or credit
11reporting services." Providing collection or adjustments of
12accounts receivable or mercantile or consumer credit reporting,
13including, but not limited to, services of the type provided by
14adjustment bureaus or collection agencies, consumer or
15mercantile credit reporting bureaus, credit bureaus or agencies,
16credit clearinghouses or credit investigation services. The term
17does not include providing credit card service with collection
18by a central agency, providing debt counseling or adjustment
19services to individuals or billing or collection services
20provided by local exchange telephone companies.

21(y) "Secretarial or editing services." Providing services
22which include, but are not limited to, editing, letter writing,
23proofreading, resume writing, typing or word processing. The
24term does not include court reporting and stenographic services.

25(z) "Disinfecting or pest control services." Providing
26disinfecting, termite control, insect control, rodent control or
27other pest control services. The term includes, but is not
28limited to, deodorant servicing of rest rooms, washroom
29sanitation service, rest room cleaning service, extermination
30service or fumigating service. As used in this clause, the term

1"fumigating service" does not include the fumigation of
2agricultural commodities or containers used for agricultural
3commodities. As used in this clause, the term "insect control"
4does not include the gypsy moth control spraying of trees which
5are harvested for commercial purposes.

6(aa) "Building maintenance or cleaning services." Providing
7services which include, but are not limited to, janitorial, maid
8or housekeeping service, office or interior building cleaning or
9maintenance service, window cleaning service, floor waxing
10service, lighting maintenance service such as bulb replacement,
11cleaning, chimney cleaning service, acoustical tile cleaning
12service, venetian blind cleaning, cleaning and maintenance of
13telephone booths or cleaning and degreasing of service stations.
14The term does not include: repairs on buildings and other
15structures; the maintenance or repair of boilers, furnaces and
16residential air conditioning equipment or their parts; the
17painting, wallpapering or applying other like coverings to
18interior walls, ceilings or floors; or the exterior painting of
19buildings.

20(bb) "Employment agency services." Providing employment
21services to a prospective employer or employee other than
22employment services provided by theatrical employment agencies
23and motion picture casting bureaus. The term includes, but is
24not limited to, services of the type provided by employment
25agencies, executive placing services and labor contractor
26employment agencies other than farm labor.

27(cc) "Help supply services." Providing temporary or
28continuing help where the help supplied is on the payroll of the
29supplying person or entity, but is under the supervision of the
30individual or business to which help is furnished. The term

1includes, but is not limited to, service of a type provided by
2labor and manpower pools, employee leasing services, office help
3supply services, temporary help services, usher services,
4modeling services or fashion show model supply services. The
5term does not include: providing farm labor services or human
6health-related services, including nursing, home health care and
7personal care. As used in this clause, "personal care" shall
8include providing at least one of the following types of
9assistance to persons with limited ability for self-care:

10(1) dressing, bathing or feeding;

11(2) supervising self-administered medication;

12(3) transferring a person to or from a bed or
13wheelchair; or

14(4) routine housekeeping chores when provided in
15conjunction with and supplied by the same provider of the
16assistance listed in subclause (1), (2) or (3).

17(dd) (Reserved).

18(ee) (Reserved).

19(ff) (Reserved).

20(gg) (Reserved).

21(hh) (Reserved).

22(ii) (Reserved).

23(jj) "Lawn care service." Providing services for lawn
24upkeep, including, but not limited to, fertilizing, lawn mowing,
25shrubbery trimming or other lawn treatment services.

26(kk) "Self-storage service." Providing a building, a room
27in a building or a secured area within a building with separate
28access provided for each purchaser of self-storage service,
29primarily for the purpose of storing personal property. The term
30does not include service involving:

1(1) safe deposit boxes by financial institutions;

2(2) storage in refrigerator or freezer units;

3(3) storage in commercial warehouses;

4(4) facilities for goods distribution; and

5(5) lockers in airports, bus stations, museums and other
6public places.

7(ll) "Cable or video programming service." Cable television
8services, video programming services, community antenna
9television services or any other distribution of television,
10video, audio or radio services which is transmitted with or
11without the use of wires to purchasers.

12If a purchaser receives or agrees to receive cable or video
13programming service, then the following charges are included in
14the purchase price: charges for installation or repair of any
15cable or video programming service, upgrade to include
16additional premium cable or premium video programming service,
17downgrade to exclude all or some premium cable or premium video
18programming service, additional cable outlets in excess of ten
19or any other charge or fee related to cable or video programming
20services. The term does not apply to: transmissions by public
21television, public radio services or official Federal, State or
22local government cable services; local origination programming
23which provides a variety of public service programs unique to
24the community, programming which provides coverage of public
25affairs issues which are presented without commentary or
26analysis, including United States Congressional proceedings, or
27programming which is substantially related to religious
28subjects; or subscriber charges for access to a video dial tone
29system or charges by a common carrier to a video programmer for
30the transport of video programming.

1(mm) (Reserved).

2(nn) "Construction contract." A written or oral contract or
3agreement for the construction, reconstruction, remodeling,
4renovation or repair of real estate or a real estate structure.
5The term shall not apply to services which are taxable under
6clauses (k)(14) and (17) and (o)(12) and (15).

7(oo) "Construction contractor." A person who performs an
8activity pursuant to a construction contract, including a
9subcontractor.

10(pp) "Building machinery and equipment." Generation
11equipment, storage equipment, conditioning equipment,
12distribution equipment and termination equipment, limited to the
13following:

14(1) air conditioning limited to heating, cooling,
15purification, humidification, dehumidification and
16ventilation;

17(2) electrical;

18(3) plumbing;

19(4) communications limited to voice, video, data, sound,
20master clock and noise abatement;

21(5) alarms limited to fire, security and detection;

22(6) control system limited to energy management, traffic
23and parking lot and building access;

24(7) medical system limited to diagnosis and treatment
25equipment, medical gas, nurse call and doctor paging;

26(8) laboratory system;

27(9) cathodic protection system; or

28(10) furniture, cabinetry and kitchen equipment.

29The term includes boilers, chillers, air cleaners, humidifiers,
30fans, switchgear, pumps, telephones, speakers, horns, motion

1detectors, dampers, actuators, grills, registers, traffic
2signals, sensors, card access devices, guardrails, medial
3devices, floor troughs and grates and laundry equipment,
4together with integral coverings and enclosures, regardless of
5whether: the item constitutes a fixture or is otherwise affixed
6to the real estate; damage would be done to the item or its
7surroundings on removal; or the item is physically located
8within a real estate structure. The term does not include
9guardrail posts, pipes, fittings, pipe supports and hangers,
10valves, underground tanks, wire, conduit, receptacle and
11junction boxes, insulation, ductwork and coverings.

12(qq) "Real estate structure." A structure or item purchased
13by a construction contractor pursuant to a construction contract
14with:

15(1) a charitable organization, a volunteer firemen's 
16organization, a nonprofit educational institution or a 
17religious organization for religious purposes and which 
18qualifies as an institution of purely public charity under 
19the act of November 26, 1997 (P.L.508, No.55), known as the 
20Institutions of Purely Public Charity Act;

21(2) the United States; or

22(3) the Commonwealth, its instrumentalities or political
23subdivisions.

24The term includes building machinery and equipment; developed or
25undeveloped land; streets; roads; highways; parking lots;
26stadiums and stadium seating; recreational courts; sidewalks;
27foundations; structural supports; walls; floors; ceilings;
28roofs; doors; canopies; millwork; elevators; windows and
29external window coverings; outdoor advertising boards or signs;
30airport runways; bridges; dams; dikes; traffic control devices,

1including traffic signs; satellite dishes; antennas; guardrail
2posts; pipes; fittings; pipe supports and hangers; valves;
3underground tanks; wire; conduit; receptacle and junction boxes;
4insulation; ductwork and coverings; and any structure or item
5similar to any of the foregoing, regardless of whether the
6structure or item constitutes a fixture or is affixed to the
7real estate; or damage would be done to the structure or item or
8its surroundings on removal.

9(rr) "Telecommunications service." Any one-way transmission
10or any two-way, interactive transmission of sounds, signals or
11other intelligence converted to like form which effects or is
12intended to effect meaningful communications by electronic or
13electromagnetic means via wire, cable, satellite, light waves,
14microwaves, radio waves or other transmission media. The term
15includes all types of telecommunication transmissions, local,
16toll, wide-area or any other type of telephone service; private
17line service; telegraph service; radio repeater service;
18wireless communication service; personal communications system
19service; cellular telecommunication service; specialized mobile
20radio service; stationary two-way radio service; and paging
21service. The term does not include any of the following:

22(1) Subscriber charges for access to a video dial tone
23system.

24(2) Charges to video programmers for the transport of
25video programming.

26(3) Charges for access to the Internet. Access to the
27Internet does not include any of the following:

28(i) The transport over the Internet or any
29proprietary network using the Internet protocol of
30telephone calls, facsimile transmissions or other

1telecommunications traffic to or from end users on the
2public switched telephone network if the signal sent from
3or received by an end user is not in an Internet
4protocol.

5(ii) Telecommunication services purchased by an
6Internet service provider to deliver access to the
7Internet to its customers.

8(4) Mobile telecommunications services.

9(ss) "Internet." The international nonproprietary computer
10network of both Federal and non-Federal interoperable packet
11switched data networks.

12(tt) "Commercial racing activities." Any of the following:

13(1) Thoroughbred and harness racing at which pari-mutuel 
14wagering is conducted under the act of December 17, 1981 
15(P.L.435, No.135), known as the Race Horse Industry Reform 
16Act.

17(2) Fair racing sanctioned by the State Harness Racing
18Commission.

19(uu) "Prepaid telecommunications." A tangible item
20containing a prepaid authorization number that can be used
21solely to obtain telecommunications service, including any
22renewal or increases in the prepaid amount.

23(vv) "Prebuilt housing." Either of the following:

24(1) Manufactured housing, including mobile homes, which 
25bears a label as required by and referred to in the act of 
26November 17, 1982 (P.L.676, No.192), known as the 
27Manufactured Housing Construction and Safety Standards 
28Authorization Act.

29(2) Industrialized housing as defined in the act of May 
3011, 1972 (P.L.286, No.70), known as the Industrialized 

1Housing Act.

2(ww) "Used prebuilt housing." Prebuilt housing that was
3previously subject to a sale to a prebuilt housing purchaser.

4(xx) "Prebuilt housing builder." A person who makes a
5prebuilt housing sale to a prebuilt housing purchaser.

6(yy) "Prebuilt housing sale." A sale of prebuilt housing to
7a prebuilt housing purchaser, including a sale to a landlord,
8without regard to whether the person making the sale is
9responsible for installing the prebuilt housing or whether the
10prebuilt housing becomes a real estate structure upon
11installation. Temporary installation by a prebuilt housing
12builder for display purposes of a unit held for resale shall not
13be considered occupancy for residential purposes.

14(zz) "Prebuilt housing purchaser." A person who purchases
15prebuilt housing in a transaction and who intends to occupy the
16unit for residential purposes in this Commonwealth.

17(aaa) "Mobile telecommunications service." Mobile 
18telecommunications service as that term is defined in the Mobile 
19Telecommunications Sourcing Act (Public Law 106-252, 4 U.S.C. § 
20116 et seq.).

21(bbb) "Fiscal Code." The act of April 9, 1929 (P.L.343, 
22No.176), known as The Fiscal Code.

23(ccc) "Prepaid mobile telecommunications service." Mobile
24telecommunications service which is paid for in advance and
25which enables the origination of calls using an access number,
26authorization code or both, regardless of whether manually or
27electronically dialed, if the remaining amount of units of the
28prepaid mobile telecommunications service is known by the
29service provider of the prepaid mobile telecommunications
30service on a continuous basis. The term does not include the

1advance purchase of mobile telecommunications service if the
2purchase is pursuant to a service contract between the service
3provider and customer and if the service contract requires the
4customer to make periodic payments to maintain the mobile
5telecommunications service.

6(ddd) "Call center." The physical location in this
7Commonwealth:

8(1) where at least 150 employees are employed to
9initiate or answer telephone calls;

10(2) where there are at least 200 telephone lines; and

11(3) which utilizes an automated call distribution system
12for customer telephone calls in one or more of the following
13activities:

14(i) customer service and support;

15(ii) technical assistance;

16(iii) help desk service;

17(iv) providing information;

18(v) conducting surveys;

19(vi) revenue collections; or

20(vii) receiving orders or reservations.

21For purposes of this clause, a physical location may include
22multiple buildings utilized by a taxpayer located within this
23Commonwealth.

24(eee) "Dental services." The general and usual services 
25rendered and care administered by doctors of dental medicine or 
26doctors of dental surgery, as defined in the act of May 1, 1933 
27(P.L.216, No.76), known as The Dental Law.

28(fff) "Physician services." The general and usual services 
29rendered and care administered by medical doctors, as defined in 
30the act of December 20, 1985 (P.L.457, No.112), known as the 

1Medical Practice Act of 1985, or doctors of osteopathy, as 
2defined in the act of October 5, 1978 (P.L.1109, No.261), known 
3as the Osteopathic Medical Practice Act.

4(ggg) "Clothing." All vesture, wearing apparel, raiments,
5garments, footwear and other articles of clothing, including
6clothing patterns and items that are to be a component part of
7clothing, worn or carried on or about the human body including,
8but not limited to, all accessories, ornamental wear, formal day
9or evening apparel and articles made of fur on the hide or pelt
10or any material imitative of fur and articles of which such fur,
11real, imitation or synthetic, is the component material of chief
12value and sporting goods and clothing not normally used or worn
13when not engaged in sports.

14(hhh) "Food and beverages." All food and beverages for
15human consumption, including, but not limited to:

16(1) Soft drinks.

17(2) Malt and brewed beverages and spiritous and vinous
18liquors.

19(3) Food or beverages, whether sold for consumption on
20or off the premises of on a take-out or to go basis or
21delivered to the purchaser or consumer, when purchased:

22(i) from persons engaged in the business of
23catering; or

24(ii) from persons engaged in the business of
25operating establishments from which ready-to-eat food and
26beverages are sold, including, but not limited to,
27restaurants, cafes, lunch counters, private and social
28clubs, taverns, dining cars, hotels, night clubs, fast
29food operations, pizzerias, fairs, carnivals, lunch
30carts, ice cream stands, snack bars, cafeterias, employee

1cafeterias, theaters, stadiums, arenas, amusement parks,
2carryout shops, coffee shops and other establishments
3whether mobile or immobile.

4For purposes of this clause, a bakery, a pastry shop, a donut
5shop, a delicatessen, a grocery store, a supermarket, a farmer's
6market, a convenience store or a vending machine shall not be
7considered an establishment from which food or beverages ready
8to eat are sold except for the sale of meals, sandwiches, food
9from salad bars, hand-dipped or hand-served ice-based products
10including ice cream and yogurt, hot soup, hot pizza and other
11hot food items, brewed coffee and hot beverages. For purposes of
12this subclause, beverages shall not include malt and brewed
13beverages and spiritous and vinous liquors but shall include
14soft drinks.

15SUBCHAPTER B

16SALES AND USE TAX

17Section 702. Imposition of tax.

18(a) Tax on certain sales at retail and uses of tangible
19personal property and services.--

20(1) There is hereby imposed on each separate sale at
21retail of tangible personal property or services in this
22Commonwealth a tax of 7% of the purchase price, which tax
23shall be collected by the vendor from the purchaser, and
24shall be paid over to the Commonwealth as provided in this
25chapter.

26(2) There is hereby imposed on the use in this
27Commonwealth of tangible personal property purchased at
28retail and on those services purchased at retail a tax of 7%
29of the purchase price, which tax shall be paid to the
30Commonwealth by the person who makes such use as provided

1under this chapter, except that the tax shall not be paid to
2the Commonwealth by the person where the person has paid the
3tax imposed by paragraph (1) or has paid the tax imposed by
4this subsection to the vendor with respect to the use.

5(b) (Reserved).

6(c) Telecommunications service.--

7(1) Notwithstanding any other provisions of this
8chapter, the tax with respect to telecommunications service
9within the meaning of "tangible personal property" in section
10701 shall be computed at the rate of 7% on the total amount
11charged to customers for the services, irrespective of
12whether such charge is based on a flat rate or on a message
13unit charge.

14(2) A telecommunications service provider shall have no
15responsibility or liability to the Commonwealth for billing,
16collecting or remitting taxes that apply to services,
17products or other commerce sold over telecommunications lines
18by third-party vendors.

19(3) To prevent actual multistate taxation of interstate
20telecommunications service, any taxpayer, on proof that the
21taxpayer has paid a similar tax to another state on the same
22interstate telecommunications service, shall be allowed a
23credit against the tax imposed by this section on the same
24interstate telecommunications service to the extent of the
25amount of the tax properly due and paid to the other state.

26(d) Coin-operated vending machines.--Notwithstanding any
27other provisions of this chapter, the sale or use of food and
28beverages dispensed by means of coin-operated vending machines
29shall be taxed at the rate of 7% of the receipts collected from
30any coin-operated vending machine which dispenses food and

1beverages that were previously taxable.

2(e) Prepaid telecommunications.--

3(1) Notwithstanding any provisions of this chapter, the
4sale or use of prepaid telecommunications evidenced by the
5transfer of tangible personal property shall be subject to
6the tax imposed by subsection (a).

7(2) The sale or use of prepaid telecommunications not
8evidenced by the transfer of tangible personal property shall
9be subject to the tax imposed by subsection (a) and shall be
10deemed to occur at the purchaser's billing address.

11(3) (i) Notwithstanding paragraph (2), the sale or use
12of prepaid telecommunications service not evidenced by
13the transfer of tangible personal property shall be taxed
14at the rate of 7% of the receipts collected on each sale
15if the service provider elects to collect the tax imposed
16by this chapter on receipts of each sale.

17(ii) The service provider shall notify the
18department of its election and shall collect the tax on
19receipts of each sale until the service provider notifies
20the department otherwise.

21(e.1) Prepaid mobile telecommunications service.--

22(1) Notwithstanding any other provision of this chapter,
23the sale or use of prepaid mobile telecommunications service
24evidenced by the transfer of tangible personal property shall
25be subject to the tax imposed by subsection (a).

26(2) The sale or use of prepaid mobile telecommunications
27service not evidenced by the transfer of tangible personal
28property shall be subject to the tax imposed by subsection
29(a) and shall be deemed to occur at the purchaser's billing
30address or the location associated with the mobile telephone

1number or the point of sale, whichever is applicable.

2(3) (i) Notwithstanding paragraph (2), the sale or use
3of prepaid mobile telecommunications service not
4evidenced by the transfer of tangible personal property
5shall be taxed at the rate of 7% of the receipts
6collected on each sale if the service provider elects to
7collect the tax imposed by this chapter on receipts of
8each sale.

9(ii) The service provider shall notify the
10department of its election and shall collect the tax on
11receipts of each sale until the service provider notifies
12the department otherwise.

13(f) Prebuilt housing.--

14(1) Notwithstanding any other provision of this chapter,
15tax with respect to sales of prebuilt housing shall be
16imposed on the prebuilt housing builder at the time of the
17prebuilt housing sale within this Commonwealth and shall be
18paid and reported by the prebuilt housing builder to the
19department in the time and manner provided in this chapter.

20(2) A manufacturer of prebuilt housing may, at its
21option, precollect the tax from the prebuilt housing builder
22at the time of sale to the prebuilt housing builder.

23(3) In any case where prebuilt housing is purchased and
24the tax is not paid by the prebuilt housing builder or
25precollected by the manufacturer, the prebuilt housing
26purchaser shall remit tax directly to the department if the
27prebuilt housing is used in this Commonwealth without regard
28to whether the prebuilt housing becomes a real estate
29structure.

30(g) Home service providers.--

1(1) Notwithstanding any other provisions of this chapter 
2and in accordance with the Mobile Telecommunications Sourcing 
3Act (Public Law 106-252, 4 U.S.C. § 116 et seq.), the sale or 
4use of mobile telecommunications services which are deemed to 
5be provided to a customer by a home service provider under 4 
6U.S.C. § 117 (relating to sourcing rules) shall be subject to 
7the tax of 7% of the purchase price, which tax shall be 
8collected by the home service provider from the customer, and 
9shall be paid over to the Commonwealth as provided in this 
10chapter if the customer's place of primary use is located 
11within this Commonwealth, regardless of where the mobile 
12telecommunications services originate, terminate or pass 
13through.

14(2) For purposes of this subsection, words and phrases
15used in this subsection shall have the same meanings given to
16them in the Mobile Telecommunications Sourcing Act.

17Section 703. Computation of tax.

18(a) Table to be published.--Within 60 days of the effective
19date of this section, the department shall prepare and publish
20as a notice in the Pennsylvania Bulletin a table setting forth
21the amount of tax imposed under section 702 for purchase prices
22that are less than $1.

23(b) Deposit into Education Stabilization Fund.--The tax
24collected under section 702 shall be deposited into the
25Education Stabilization Fund.

26SUBCHAPTER C

27EXCLUSIONS FROM SALES AND USE TAX

28Section 704. Exclusions from tax.

29The tax imposed by section 702 shall not be imposed upon any
30of the following:

1(1) The sale at retail or use of tangible personal
2property (other than motor vehicles, trailers, semi-trailers,
3motor boats, aircraft or other similar tangible personal
4property required under either Federal law or laws of this
5Commonwealth to be registered or licensed) or services sold
6by or purchased from a person not a vendor in an isolated
7transaction or sold by or purchased from a person who is a
8vendor but is not a vendor with respect to the tangible
9personal property or services sold or purchased in such
10transaction, provided that inventory and stock in trade so
11sold or purchased shall not be excluded from the tax by the
12provisions of this subsection.

13(2) The use of tangible personal property purchased by a
14nonresident person outside of, and brought into this
15Commonwealth for use therein for a period not to exceed seven
16days, or for any period of time when such nonresident is a
17tourist or vacationer and, in either case not consumed within
18the Commonwealth.

19(3) (i) The use of tangible personal property purchased
20outside this Commonwealth for use outside this
21Commonwealth by a then nonresident natural person or a
22business entity not actually doing business within this
23Commonwealth, who later brings the tangible personal
24property into this Commonwealth in connection with the
25person's or entity's establishment of a permanent
26business or residence in this Commonwealth, provided that
27the property was purchased more than six months prior to
28the date it was first brought into this Commonwealth or
29prior to the establishment of the business or residence,
30whichever first occurs.

1(ii) This paragraph shall not apply to tangible
2personal property temporarily brought into this
3Commonwealth for the performance of contracts for the
4construction, reconstruction, remodeling, repairing and
5maintenance of real estate.

6(4) (Reserved).

7(5) The sale at retail or use of steam, natural and
8manufactured and bottled gas, fuel oil or electricity when
9purchased directly by the user solely for the user's own
10residential use.

11(6) (Reserved).

12(7) (Reserved).

13(8) (Reserved).

14(9) (Reserved).

15(10) (i) The sale at retail to or use by any charitable
16organization, volunteer firefighters' organization or
17nonprofit educational institution or a religious
18organization for religious purposes of tangible personal
19property or services other than pursuant to a
20construction contract.

21(ii) This paragraph shall not apply with respect to
22any tangible personal property or services used in any
23unrelated trade or business carried on by the
24organization or institution or with respect to any
25materials, supplies and equipment used and transferred to
26the organization or institution in the construction,
27reconstruction, remodeling, renovation, repairs and
28maintenance of any real estate structure, other than
29building machinery and equipment, except materials and
30supplies when purchased by the organization or

1institution for routine maintenance and repairs.

2(11) The sale at retail, or use of gasoline and other 
3motor fuels, the sales of which are otherwise subject to 
4excise taxes under 75 Pa.C.S. Ch. 90 (relating to liquid 
5fuels and fuels tax).

6(12) (i) The sale at retail to, or use by the United
7States, this Commonwealth or its instrumentalities or
8political subdivisions, nonpublic schools, charter
9schools, cyber charter schools or vocational schools of
10tangible personal property or services.

11(ii) This paragraph includes the sale at retail to a
12supervisor of a home education program of tangible
13personal property or services used exclusively for the
14home education program.

15(iii) As used in this paragraph, the terms
16"nonpublic school," "charter school," "cyber charter
17school," "vocational school," "supervisor" and "home
18education program" shall have the meanings given to them
19in the Public School Code of 1949.

20(13) The sale at retail, or use of wrapping paper,
21wrapping twine, bags, cartons, tape, rope, labels,
22nonreturnable containers and all other wrapping supplies,
23when such use is incidental to the delivery of any personal
24property, except that any charge for wrapping or packaging
25shall be subject to tax at the rate imposed by section 702.

26(14) Sale at retail or use of vessels designed for
27commercial use of registered tonnage of 50 tons or more when
28produced by the builders thereof upon special order of the
29purchaser.

30(15) Sale at retail of tangible personal property or

1services used or consumed in building, rebuilding, repairing
2and making additions to or replacements in and upon vessels
3designed for commercial use of registered tonnage of 50 tons
4or more upon special order of the purchaser, or when rebuilt,
5repaired or enlarged, or when replacements are made upon
6order of or for the account of the owner.

7(16) The sale at retail or use of tangible personal
8property or services to be used or consumed for ship cleaning
9or maintenance or as fuel, supplies, ships' equipment, ships'
10stores or sea stores on vessels designed for commercial use
11of registered tonnage of 50 tons or more to be operated
12principally outside the limits of this Commonwealth.

13(17) The sale at retail or use of prescription
14medicines, drugs or medical supplies, crutches and
15wheelchairs for the use of persons with disabilities and
16invalids, artificial limbs, artificial eyes and artificial
17hearing devices when designed to be worn on the person of the
18purchaser or user, false teeth and materials used by a
19dentist in dental treatment, eyeglasses when especially
20designed or prescribed by an ophthalmologist, oculist or
21optometrist for the personal use of the owner or purchaser
22and artificial braces and supports designed solely for the
23use of persons with disabilities or any other therapeutic,
24prosthetic or artificial device designed for the use of a
25particular individual to correct or alleviate a physical
26incapacity, including, but not limited to, hospital beds,
27iron lungs and kidney machines.

28(18) The sale at retail or use of coal.

29(19) (Reserved).

30(20) (Reserved).

1(21) (Reserved).

2(22) (Reserved).

3(23) (Reserved).

4(24) The sale at retail or use of motor vehicles,
5trailers and semitrailers, or bodies attached to the chassis
6thereof, sold to a nonresident of this Commonwealth to be
7used outside this Commonwealth and which are registered in a
8state other than this Commonwealth within 20 days after
9delivery to the vendee.

10(25) The sale at retail or use of water.

11(26) The sale at retail or use of all vesture, wearing
12apparel, raiments, garments, footwear and other articles of
13clothing with a purchase price of less than $50, including
14clothing patterns and items that are to be a component part
15of clothing, worn or carried on or about the human body but
16all accessories, ornamental wear, formal day or evening
17apparel and articles made of fur on the hide or pelt or any
18material imitative of fur and articles of which such fur,
19real, imitation or synthetic, is the component material of
20chief value, but only if such value is more than three times
21the value of the next most valuable component material, and
22sporting goods and clothing not normally used or worn when
23not engaged in sports shall not be excluded from the tax.

24(27) (Reserved).

25(28) (Reserved).

26(29) The sale at retail or use of food and beverages
27that are federally approved items for the Women, Infants and
28Children Program under section 17 of the Child Nutrition Act
29of 1966 (Public Law 89-642, 42 U.S.C. § 1786).

30(30) (i) The sale at retail or use of any printed or

1other form of advertising materials regardless of where
2or by whom the advertising material was produced.

3(ii) This paragraph shall not include the sale at
4retail or use of mail order catalogs and direct mail
5advertising literature or materials, including electoral
6literature or materials, such as envelopes, address
7labels and a one-time license to use a list of names and
8mailing addresses for each delivery of direct mail
9advertising literature or materials, including electoral
10literature or materials, through the United States Postal
11Service.

12(31) (Reserved).

13(32) (Reserved).

14(33) (Reserved).

15(34) (Reserved).

16(35) (Reserved).

17(36) The sale at retail or use of rail transportation
18equipment used in the movement of personalty.

19(37) (Reserved).

20(38) (Reserved).

21(39) The sale at retail or use of fish feed purchased by
22or on behalf of sportsmen's clubs, fish cooperatives or
23nurseries approved by the Pennsylvania Fish Commission.

24(40) The sale at retail of supplies and materials to
25tourist promotion agencies, which receive grants from the
26Commonwealth, for distribution to the public as promotional
27material or the use of such supplies and materials by said
28agencies for said purposes.

29(41) (Reserved).

30(42) The sale or use of brook trout (salvelinus

1fontinalis), brown trout (Salmo trutta) or rainbow trout
2(Salmo gairdneri).

3(43) The sale at retail or use of buses to be used
4exclusively for the transportation of children for school
5purposes.

6(44) The sale at retail or use of firewood.

7(45) (Reserved).

8(46) The sale at retail or use of tangible personal 
9property purchased in accordance with the Food Stamp Act of 
101977, as amended (Public Law 95-113, 7 U.S.C. §§ 2011-2029).

11(47) (Reserved).

12(48) (Reserved).

13(49) (i) The sale at retail or use of food and
14beverages by nonprofit associations which support sports
15programs.

16(ii) The following words and phrases when used in
17this paragraph shall have the meanings given to them in
18this subparagraph unless the context clearly indicates
19otherwise:

20"Nonprofit association." An entity which is
21organized as a nonprofit corporation or nonprofit
22unincorporated association under the laws of this
23Commonwealth or the United States or any entity which is
24authorized to do business in this Commonwealth as a
25nonprofit corporation or unincorporated association under
26the laws of this Commonwealth, including, but not limited
27to, youth or athletic associations, volunteer fire,
28ambulance, religious, charitable, fraternal, veterans,
29civic, or any separately chartered auxiliary of the
30foregoing, if organized and operated on a nonprofit

1basis.

2"Sports program." Baseball, softball, football, 
3basketball, soccer and any other competitive sport 
4formally recognized as a sport by the United States 
5Olympic Committee as specified by and under the 
6jurisdiction of the Amateur Sports Act of 1978 (Public 
7Law 95-606, 36 U.S.C. Ch. 2205), the Amateur Athletic 
8Union or the National Collegiate Athletic Association. 
9The term shall be limited to a program or that portion of 
10a program that is organized for recreational purposes and 
11whose activities are substantially for such purposes and 
12which is primarily for participants who are 18 years of 
13age or younger or whose 19th birthday occurs during the 
14year of participation or the competitive season, 
15whichever is longer. There shall, however, be no age 
16limitation for programs operated for persons with 
17physical handicaps or persons with mental retardation.

18"Support." The funds raised from sales are used to
19pay the expenses of a sports program or the nonprofit
20association sells the food and beverages at a location
21where a sports program is being conducted under this
22chapter or the Tax Reform Code of 1971.

23(50) (Reserved).

24(51) The sale at retail or use of interior office
25building cleaning services but only as relates to the costs
26of the supplied employee, which costs are wages, salaries,
27bonuses and commissions, employment benefits, expense
28reimbursements and payroll and withholding taxes, to the
29extent that these costs are specifically itemized or that
30these costs in aggregate are stated in billings from the

1vendor or supplying entity.

2(52) (Reserved).

3(53) (Reserved).

4(54) (Reserved).

5(55) (Reserved).

6(56) The sale at retail or use of tangible personal
7property or services used, transferred or consumed in
8installing or repairing equipment or devices designed to
9assist persons in ascending or descending a stairway when:

10(i) The equipment or devices are used by a person
11who, by virtue of a physical disability, is unable to
12ascend or descend stairs without the aid of such
13equipment or device.

14(ii) The equipment or device is installed or used in
15the person's place of residence.

16(iii) A physician has certified the physical
17disability of the person in whose residence the equipment
18or device is installed or used.

19(57) The sale at retail to or use by a construction
20contractor of building machinery and equipment and services
21thereto that are:

22(i) transferred pursuant to a construction contract
23for any charitable organization, volunteer firemen's
24organization, nonprofit educational institution or
25religious organization for religious purposes, provided
26that the building machinery and equipment and services
27thereto are not used in any unrelated trade or business;
28or

29(ii) transferred to the United States or the
30Commonwealth or its instrumentalities or political

1subdivisions.

2(58) (Reserved).

3(59) The sale at retail or use of molds and related mold
4equipment used directly and predominantly in the manufacture
5of products, regardless of whether the person that holds
6title to the equipment manufactures a product.

7(60) (Reserved).

8(61) (Reserved).

9(62) The sale at retail or use of tangible personal
10property or services which are directly used in farming,
11dairying or agriculture when engaged in as a business
12enterprise, regardless of whether the sale is made to the
13person directly engaged in the business enterprise or to a
14person contracting with the person directly engaged in the
15business enterprise for the production of food.

16(63) (Reserved).

17(64) The sale at retail to or use by a construction
18contractor, employed by a public school district pursuant to
19a construction contract, of any materials and building
20supplies which, during construction or reconstruction, are
21made part of any public school building utilized for
22instructional classroom education within this Commonwealth,
23if the construction or reconstruction:

24(i) is necessitated by a disaster emergency, as 
25defined in 35 Pa.C.S. § 7102 (relating to definitions); 
26and

27(ii) takes place during the period when there is a 
28declaration of disaster emergency under 35 Pa.C.S. § 
297301(c) (relating to general authority of Governor).

30(65) (Reserved).

1(66) The sale at retail or use of copies of an official
2document sold by a government agency or a court. For the
3purposes of this paragraph, the following terms or phrases
4shall have the following meanings:

5(i) "court" includes:

6(A) an appellate court as defined in 42 Pa.C.S.
7§ 102 (relating to definitions);

8(B) A court of common pleas as defined in 42
9Pa.C.S. § 102; or

10(C) the minor judiciary as defined in 42 Pa.C.S.
11§ 102;

12(ii) "government agency" means an agency as defined
13in section 102 of the act of February 14, 2008 (P.L.6,
14No.3), known as the Right-to-Know Law; and

15(iii) "official document" means a record as defined
16in section 102 of the Right-to-Know Law. The term shall
17include notes of court testimony, deposition transcripts,
18driving records, accident reports, birth and death
19certificates, deeds, divorce decrees and other similar
20documents.

21(67) The sale at retail or use of repair or replacement
22parts, including the installation of those parts, exclusively
23for use in helicopters and similar rotorcraft or in
24overhauling or rebuilding of helicopters and similar
25rotorcraft or helicopters and similar rotorcraft components.

26(68) The sale at retail or use of helicopters and
27similar rotorcraft.

28(69) The sale at retail or use of goods or services that
29are part of a Medicare Part B transaction.

30(70) The sale at retail or use of transportation of

1persons provided or funded by the Federal, State or local
2government.

3(71) The sale at retail of insurance premiums.

4(72) The sale at retail, between an owner of real
5property and a financial institution, of a mortgage.

6(73) An investment or gain on an investment, including,
7but not limited to, bank deposits, stocks and bonds,
8including any commissions, maintenance costs and other
9charges, which commissions, maintenance costs and other
10charges related to the making of such investment or a gain
11thereon.

12(74) The rental of real property.

13(75) The sale at retail of tuition.

14(76) The sale at retail of any of the following
15business, professional or technical services performed by a
16business and rendered to another business:

17(i) Legal services.

18(ii) Architectural, engineering and related
19services.

20(iii) Accounting, auditing and bookkeeping services.

21(iv) Specialized design services.

22(v) Advertising, public relations and related
23services.

24(vi) Services to building and dwellings.

25(vii) Scientific, environmental and technical
26consulting services.

27(viii) Scientific research and development services.

28(ix) Information services.

29(x) Administrative services.

30(xi) Custom programming, design and data processing

1services.

2(xii) Parking lot and garage services.

3(77) The sale at retail of legal services relating to
4domestic relations matters or criminal matters.

5(78) The sale at retail of services rendered as part of
6a transfer of an interest in real property.

7(79) The sale at retail to or use by a person of legal
8services rendered by an attorney where the payment is made
9pursuant to a contingency fee based upon a percentage of the
10amount recovered with respect to a legal claim or dispute.

11(80) The sale at retail to or use by a person of the
12services rendered by or under the supervision of a licensed
13real estate broker, associate broker or salesperson in
14connection with any aspect of the sale, lease or acquisition
15of any interest in real property.

16(81) The sale at retail, or the use of motion picture
17film rented or licensed from a distributor for the purpose of
18commercial exhibition.

19(82) The sale at retail or use of services performed by
20minors under 18 years of age and not on behalf of another
21person.

22(83) The sale at retail or use of services performed by
23any person to the extent that the recipient or user of such
24services receives those services free of charge.

25(84) The sale at retail or use of services provided by
26employees to their employers in exchange for wages and
27salaries when such services are rendered in the ordinary
28course of employment.

29(85) The sale at retail or use of services performed for
30resale in the ordinary course of business of the purchaser or

1user of such services.

2(86) The sale at retail or use of services that are
3otherwise taxable that are an integral, inseparable part of
4the services that are to be sold or used and that are
5taxable.

6(87) (Reserved).

7(88) The sale at retail of medical goods or services by 
8a hospital, as defined in the act of December 20, 1985 
9(P.L.457, No.112), known as the Medical Practice Act of 1985.

10(89) The sale at retail of medical or dental services,
11including charges for office visits.

12Section 705. Alternate imposition of tax.

13(a) General rule.--If any person actively and principally
14engaged in the business of selling new or used motor vehicles,
15trailers or semitrailers, and registered with the department in
16the "dealer's class," acquires a motor vehicle, trailer or
17semitrailer for the purpose of resale, and prior to such resale,
18uses the motor vehicle, trailer or semitrailer for a taxable use
19under this chapter or the Tax Reform Code of 1971, the person
20may pay a tax equal to 7% of the fair rental value of the motor
21vehicle, trailer or semitrailer during use.

22(b) Aircraft.--A commercial aircraft operator who acquires
23an aircraft for the purpose of resale, or lease, or is entitled
24to claim another valid exemption at the time of purchase, and
25subsequent to the purchase, periodically uses the same aircraft
26for a taxable use under this chapter or the Tax Reform Code of
271971, may elect to pay a tax equal to 7% of the fair rental
28value of the aircraft during such use.

29(c) Applicability.--This section shall not apply to the use
30of a vehicle as a wrecker, parts truck, delivery truck or

1courtesy car.

2Section 706. Credit against tax.

3(a) Tax paid to another state.--

4(1) A credit against the tax imposed by section 702
5shall be granted with respect to tangible personal property
6or services purchased for use outside the Commonwealth equal
7to the tax paid to another state by reason of the imposition
8by the other state of a tax similar to the tax imposed by
9this chapter.

10(2) No credit under paragraph (1) shall be granted
11unless the other state grants substantially similar tax
12relief by reason of the payment of tax under this chapter or
13under the Tax Reform Code of 1971.

14(b) Telecommunications services.--A credit against the tax
15imposed by section 702 on telecommunications services shall be
16granted to a call center for gross receipts tax paid by a
17telephone company on the receipts derived from the sale of
18incoming and outgoing interstate telecommunications services to
19the call center under section 1101(a)(2) of the Tax Reform Code
20of 1971. The following apply:

21(1) A telephone company, on request, shall notify a call
22center of the amount of gross receipts tax paid by the
23telephone company on the receipts derived from the sale of
24incoming and outgoing interstate telecommunications services
25to the call center.

26(2) A call center that is eligible for the credit in
27this subsection may apply for a tax credit as set forth in
28this subsection.

29(3) By February 15, a taxpayer must submit an
30application to the department for gross receipts tax paid on

1the receipts derived from the sale of incoming and outgoing
2interstate telecommunications services incurred in the prior
3calendar year.

4(4) By April 15 of the calendar year following the close
5of the calendar year during which the gross receipts tax was
6incurred, the department shall notify the applicant of the
7amount of the applicant's tax credit approved by the
8department.

9(5) The total amount of tax credits provided for in this
10subsection and approved by the department shall not exceed
11$30,000,000 in any fiscal year. If the total amount of tax
12credits applied for by all applicants exceeds the amount
13allocated for those credits, then the credit to be received
14by each applicant shall be determined as follows:

15(i) Divide:

16(A) the tax credit applied for by the applicant;
17by

18(B) the total of all tax credits applied for by
19all applicants.

20(ii) Multiply:

21(A) the quotient under subparagraph (i); by

22(B) the amount allocated for all tax credits.

23SUBCHAPTER D

24LICENSES

25Section 708. Licenses.

26(a) Duty to obtain license.--Every person maintaining a
27place of business in this Commonwealth, selling or leasing
28services or tangible personal property, the sale or use of which
29is subject to tax and who has not obtained a license from the
30department, shall, prior to the beginning of business, make

1application to the department, on a form prescribed by the
2department, for a license. If such person maintains more than
3one place of business in this Commonwealth, the license shall be
4issued for the principal place of business in this Commonwealth.

5(b) Criteria for issuance of license.--

6(1) The department shall, after the receipt of an
7application, issue the license applied for under subsection
8(a) if the applicant filed all required State tax reports and
9paid any State taxes not subject to a timely perfected
10administrative or judicial appeal or subject to a duly
11authorized deferred payment plan. The license shall be
12nonassignable.

13(2) All licenses in effect on the effective date of this
14section under former Article III of the Tax Reform Code of
151971 and all licenses issued or renewed on or after the
16effective date of this section shall be valid for a period of
17five years.

18(b.1) Refusal of license.--

19(1) If an applicant for a license or any person holding
20a license has not filed all required State tax reports and
21paid any State taxes not subject to a timely perfected
22administrative or judicial appeal or subject to a duly
23authorized deferred payment plan, the department may refuse
24to issue, may suspend or may revoke said license.

25(2) The department shall notify the applicant or
26licensee of any refusal, suspension or revocation. The notice
27shall contain a statement that the refusal, suspension or
28revocation may be made public. The notice shall be made by
29first class mail.

30(3) An applicant or licensee aggrieved by the

1determination of the department may file an appeal pursuant
2to the provisions for administrative appeals in this chapter.
3In the case of a suspension or revocation which is appealed,
4the license shall remain valid pending a final outcome of the
5appeals process.

6(4) Notwithstanding section 774 or sections 353(f),
7408(b), 603, 702, 802, 904 and 1102 of the Tax Reform Code of
81971, or any other provision of law to the contrary, if no
9appeal is taken or if an appeal is taken and denied at the
10conclusion of the appeal process, the department may
11disclose, by publication or otherwise, the identity of a
12person and the fact that the person's license has been
13refused, suspended or revoked under this subsection.
14Disclosure may include the basis for refusal, suspension or
15revocation.

16(c) Penalties.--

17(1) A person that maintains a place of business in this
18Commonwealth for the purpose of selling or leasing services
19or tangible personal property, the sale or use of which is
20subject to tax, without having first been licensed by the
21department shall be guilty of a summary offense and, upon
22conviction thereof, be sentenced to pay a fine of not less
23than $300 nor more than $1,500 and, in default thereof, a
24term of imprisonment of not less than five days nor more than
2530 days.

26(2) The penalties imposed by this subsection shall be in
27addition to any other penalties imposed by this chapter.

28(3) For purposes of this subsection, the offering for
29sale or lease of any service or tangible personal property,
30the sale or use of which is subject to tax, during any

1calendar day shall constitute a separate violation.

2(4) The secretary may designate employees of the
3department to enforce the provisions of this subsection. The
4employees shall exhibit proof of and be within the scope of
5the designation when instituting proceedings as provided by
6the Pennsylvania Rules of Criminal Procedure.

7(d) Effect of failure to obtain license.--Failure of any
8person to obtain a license shall not relieve that person of
9liability to pay the tax imposed by this chapter.

10SUBCHAPTER E

11HOTEL OCCUPANCY TAX

12Section 709. Definitions.

13(a) General rule.--The following words and phrases when used
14in this subchapter shall have the meanings given to them in this
15section unless the context clearly indicates otherwise:

16"Hotel." A building or buildings in which the public may,
17for a consideration, obtain sleeping accommodations. The term
18does not include any charitable, educational or religious
19institution summer camp for children, hospital or nursing home.

20"Occupancy." The use or possession or the right to the use or
21possession by any person, other than a permanent resident, of
22any room or rooms in a hotel for any purpose or the right to the
23use or possession of the furnishings or to the services and
24accommodations accompanying the use and possession of the room
25or rooms.

26"Occupant." A person, other than a permanent resident, who,
27for a consideration, uses, possesses or has a right to use or
28possess any room or rooms in a hotel under any lease,
29concession, permit, right of access, license or agreement.

30"Operator." Any person who operates a hotel.

1"Permanent resident." Any occupant who has occupied or has
2the right to occupancy of any room or rooms in a hotel for at
3least 30 consecutive days.

4"Rent." The consideration received for occupancy valued in
5money, whether received in money or otherwise, including all
6receipts, cash, credits and property or services of any kind or
7nature, and also any amount for which the occupant is liable for
8the occupancy without any deduction. The term "rent" shall not
9include a gratuity.

10(b) Other definitions.--The following words and phrases,
11when used in Subchapters D and F, shall, in addition to the
12meaning ascribed to them by section 701, have the meaning
13ascribed to them in this subsection, except where the context
14clearly indicates a different meaning:

15"Maintaining a place of business in this Commonwealth."
16Being the operator of a hotel in this Commonwealth.

17"Purchase at retail." Occupancy.

18"Purchase price." Rent.

19"Purchaser." Occupant.

20"Sale at retail." The providing of occupancy to an occupant
21by an operator.

22"Services." Occupancy.

23"Tangible personal property." Occupancy.

24"Use." Occupancy.

25"Vendor." Operator.

26Section 710. Imposition of tax.

27There is hereby imposed an excise tax of 7% of the rent on
28every occupancy of a room or rooms in a hotel in this
29Commonwealth, which tax shall be collected by the operator from
30the occupant and paid over to the Commonwealth as provided in

1this chapter and deposited into the Education Stabilization
2Fund.

3Section 711. Seasonal tax returns.

4Notwithstanding any other provisions in this chapter or the
5Tax Reform Code of 1971, the department may, by regulation,
6waive the requirement for the filing of quarterly returns in the
7case of any operator whose hotel is operated only during certain
8seasons of the year, and may provide for the filing of returns
9by such persons at times other than those provided by section
10721.

11SUBCHAPTER F

12PROCEDURE AND ADMINISTRATION

13Section 715. Persons required to make returns.

14Every person required to pay tax to the department or collect
15and remit tax to the department shall file returns with respect
16to the tax.

17Section 716. Form of returns.

18The returns required by section 715 shall be on forms
19prescribed by the department and shall show such information
20with respect to the taxes imposed by this chapter as the
21department may reasonably require.

22Section 717. Time for filing returns.

23(a) Monthly reporting.--A return shall be filed monthly with
24respect to each month by every licensee whose total tax reported
25or, in the event no report is filed, the total tax which should
26have been reported, for the third calendar quarter of the
27preceding year equals or exceeds $600. The returns shall be
28filed on or before the 20th day of the next succeeding month
29with respect to which the return is made. Any licensee required
30to file monthly returns under this chapter shall be relieved

1from filing quarterly returns.

2(b) Annual reporting.--No annual return shall be filed,
3except as may be required by rules and regulations of the
4department promulgated and published at least 60 days prior to
5the end of the year with respect to which the returns are made.
6Where such annual returns are required, licensees shall not be
7required to file such returns prior to the 20th day of the year
8succeeding the year with respect to which the returns are made.

9(c) Persons other than licensees.--Any person, other than a
10licensee, liable to pay to the department any tax under this
11chapter, shall file a return on or before the 20th day of the
12month succeeding the month in which the person becomes liable
13for the tax.

14(d) Waivers.--The department, by regulation, may waive the
15requirement for the filing of quarterly return in the case of
16any licensee whose individual tax collections do not exceed $75
17per calendar quarter and may provide for reporting on a less
18frequent basis in such cases.

19Section 718. Extension of time for filing returns.

20The department may, on written application and for good cause
21shown, grant a reasonable extension of time for filing any
22return required under this subchapter. However, the time for
23making a return shall not be extended for more than three
24months.

25Section 719. Place for filing returns.

26Returns shall be filed with the department at its main office
27or at any branch office which it may designate for filing
28returns.

29Section 720. Timely mailing treated as timely filing and
30payment.

1(a) General rule.--Notwithstanding the provisions of any
2State tax law to the contrary, whenever a report or payment of
3all or any portion of a State tax is required by law to be
4received by the department or other agency of the Commonwealth
5on or before a day certain, the taxpayer shall be deemed to have
6complied with the law if the letter transmitting the report or
7payment of the tax which has been received by the department is
8postmarked by the United States Postal Service on or prior to
9the final day on which the payment is to be received.

10(b) Presentation of receipt.--For the purposes of this
11chapter, presentation of a receipt indicating that the report or
12payment was mailed by registered or certified mail on or before
13the due date shall be evidence of timely filing and payment.

14Section 721. Payment of tax.

15When a return of tax is required under this subchapter, the
16person required to make the return shall pay the tax to the
17department.

18Section 722. Time of payment.

19(a) General rule.--The tax imposed by this chapter and
20incurred or collected by a licensee shall be due and payable by
21the licensee on the day the return is required to be filed under
22the provisions of section 717 and the payment must accompany the
23return for the preceding period.

24(b) Other payments.--If the amount of tax due for the
25preceding year as shown by the annual return of a taxpayer is
26greater than the amount already paid by the taxpayer in
27connection with the taxpayer's monthly or quarterly returns, the
28taxpayer shall send with the annual return a remittance for the
29unpaid amount of tax for the year.

30(c) Persons other than licensees.--Any person other than a

1licensee liable to pay any tax under this chapter shall remit
2the tax at the time of filing the return required by this
3chapter.

4Section 723. Other times for payment.

5In the event that the department authorizes a taxpayer to
6file a return at other times than those specified in section
7717, the tax due shall be paid at the time the return is filed.

8Section 724. Place for payment.

9The tax imposed by this chapter shall be paid to the
10department at the place fixed for filing the return.

11Section 725. Tax held in trust for Commonwealth.

12(a) General rule.--All taxes collected by any person from
13purchasers in accordance with this chapter and all taxes
14collected by any person from purchasers under color of this
15chapter which have not been properly refunded by the person to
16the purchaser shall constitute a trust fund for the
17Commonwealth, and such trust shall be enforceable against such
18person, the person's representatives and any person, other than
19a purchaser to whom a refund has been made properly, receiving
20any part of the fund without consideration, or knowing that the
21taxpayer is committing a breach of trust.

22(b) Presumption.--Any person receiving payment of a lawful
23obligation of the taxpayer from the fund identified under
24subsection (a) shall be presumed to have received the same in
25good faith and without any knowledge of the breach of trust.

26(c) Right to petition and appeal.--Any person, other than a
27taxpayer, against whom the department makes any claim under this
28section shall have the same right to petition and appeal as is
29given taxpayers by any provisions of this subchapter.

30Section 726. Local receivers of use tax.

1(a) General rule.--In every county, except counties of the
2first class, the county treasurer shall receive use tax due and
3payable under this chapter from any person other than a
4licensee. The receiving of the taxes shall be pursuant to rules
5and regulations promulgated by the department and on forms
6furnished by the department.

7(b) Deduction for administrative costs.--Each county
8treasurer shall remit to the department all use taxes received
9under the authority of this section minus the costs of
10administering this section not to exceed 1% of the amount of use
11taxes received, which amount shall be retained in lieu of any
12commission otherwise allowable by law for the collection of the
13tax.

14Section 727. Discount.

15(a) General rule.--Subject to the provisions of subsection
16(b), if a return is filed by a licensee and the tax shown to be
17due thereon less any discount is paid all within the time
18prescribed, the licensee shall be entitled to credit and apply
19against the tax payable by the licensee a discount of 1% of the
20amount of the tax collected by the licensee, as compensation for
21the expense of collecting and remitting the tax due by the
22licensee and as consideration of the prompt payment.

23(b) Types of periodic filers.--For returns filed on or after
24the effective date of this section, the discount under
25subsection (a) shall be limited to the following:

26(1) For a monthly filer, $25 per return.

27(2) For a quarterly filer, $75 per return.

28(3) For a semiannual filer, $150 per return.

29Section 728. (Reserved).

30Section 729. (Reserved).

1Section 730. Assessment.

2The department shall make the inquiries, determinations and
3assessments of the tax, including interest, additions and
4penalties, imposed by this chapter. A notice of assessment and
5demand for payment shall be mailed by certified mail to the
6taxpayer. The notice shall set forth the basis of the
7assessment.

8Section 731. Mode and time of assessment.

9(a) Duty to examine.--

10(1) Within a reasonable time after any return is filed,
11the department shall examine it and, if the return shows a
12greater tax due or collected than the amount of tax remitted
13with the return, the department shall issue an assessment for
14the difference, together with an addition of 3% of the
15difference, which shall be paid to the department within ten
16days after a notice of the assessment has been mailed to the
17taxpayer.

18(2) If such assessment is not paid within ten days,
19there shall be added and paid to the department an additional
203% of the difference for each month during which the
21assessment remains unpaid. The total of all additions shall
22not exceed 18% of the difference shown on the assessment.

23(b) Underestimated tax on returns.--

24(1) If the department determines that any return or
25returns of any taxpayer understates the amount of tax due, it
26shall determine the proper amount and shall ascertain the
27difference between the amount of tax shown in the return and
28the amount determined. The difference may be referred to as
29the deficiency.

30(2) The department shall send a notice of assessment for

1the deficiency and the reasons to the taxpayer.

2(3) The taxpayer shall pay the deficiency to the
3department within 30 days after a notice of the assessment
4has been mailed to the taxpayer.

5(c) Estimated assessments.--

6(1) In the event that any taxpayer fails to file a
7return required by this chapter, the department may make an
8estimated assessment, based on information available, of the
9proper amount of tax owed by the taxpayer and shall send a
10notice of assessment in the estimated amount to the taxpayer.

11(2) The taxpayer shall pay the tax within 30 days after
12a notice of the estimated assessment has been mailed to the
13taxpayer.

14(d) Studies.--

15(1) The department may conduct the studies necessary to
16compute effective rates by business classification, based
17upon the ratio between the tax required to be collected and
18taxable sales and to use such rates in arriving at the
19apparent tax liability of a taxpayer.

20(2) Any assessment based on such rates shall be prima
21facie correct, except that the rate shall not be considered
22where a taxpayer establishes the rate is based on a sample
23inapplicable to the taxpayer.

24Section 732. Reassessment.

25Any taxpayer against whom an assessment is made may petition
26the department for a reassessment under Article XXVII of the Tax
27Reform Code of 1971.

28Section 733. (Reserved).

29Section 734. Review by Board of Finance and Revenue.

30(a) Procedure.--

1(1) Within 60 days after the date of mailing of notice
2by the department of the decision on any petition for
3reassessment filed with it, the person against whom the
4assessment was made may, by petition, request the Board of
5Finance and Revenue to review the decision.

6(2) The failure of the department to notify the
7petitioner of a decision within the time provided by section
8732 shall act as a denial of such petition, and a petition
9for review may be filed with the Board of Finance and Revenue
10within 120 days of the date prior to which the department
11should have mailed to the petitioner its notice of decision.

12(b) Contents of petition for review.--Each petition for
13review filed under this section shall state specifically the
14reasons on which the petitioner relies, or shall incorporate by
15reference the petition for reassessment in which the reasons are
16stated. The petition shall be supported by affidavit that it is
17not made for the purpose of delay and that the facts set forth
18in the petition are true.

19(c) Action by board.--

20(1) The Board of Finance and Revenue shall act finally
21in disposing of petitions filed with it within six months
22after they have been received.

23(2) In the event of the failure of the board to dispose
24of any petition within six months, the action taken by the
25department, upon the petition for reassessment, shall be
26sustained.

27(3) The Board of Finance and Revenue may sustain the
28action taken by the department on the petition for
29reassessment, or it may reassess the tax due on such basis as
30it deems according to law.

1(4) The board shall give notice of its action to the
2department and to the petitioner.

3Section 735. (Reserved).

4Section 736. Burden of proof.

5In all cases of petitions for reassessment, review or appeal,
6the burden of proof shall be on the petitioner or appellant, as
7applicable.

8Section 737. Collection of tax.

9(a) General rule.--The department shall collect the tax in
10the manner provided by law for the collection of taxes imposed
11by the laws of this Commonwealth.

12(b) Collection by persons maintaining a place of business in
13the Commonwealth.--

14(1) Every person maintaining a place of business in this
15Commonwealth and selling or leasing tangible personal
16property or services, the sale or use of which is subject to
17tax shall collect the tax from the purchaser or lessee at the
18time of making the sale or lease, and shall remit the tax to
19the department, unless the collection and remittance is
20otherwise provided for in this chapter.

21(2) (i) Every person not otherwise required to collect
22tax that delivers tangible personal property to a
23location within this Commonwealth and that unpacks,
24positions, places or assembles the tangible personal
25property shall collect the tax from the purchaser at the
26time of delivery and shall remit the tax to the
27department if the person delivering the tangible personal
28property is responsible for collecting any portion of the
29purchase price of the tangible personal property
30delivered and the purchaser has not provided the person

1with proof that the tax imposed by this chapter has been
2or will be collected by the seller or that the purchaser
3provided the seller with a valid exemption certificate.

4(ii) Every person required to collect tax under this
5paragraph shall be deemed to be selling or leasing
6tangible personal property or services, the sale or use
7of which is subject to the tax imposed under section 702.

8(3) Any person required under this chapter to collect
9tax from another person, who shall fail to collect the proper
10amount of the tax, shall be liable for the full amount of the
11tax which the person should have collected.

12(c) Certificate for tax-exempt sales or leases.--

13(1) If the tax does not apply to the sale or lease of
14tangible personal property or services, the purchaser or
15lessee shall furnish to the vendor a certificate indicating
16that the sale is not legally subject to the tax. The
17certificate shall be in substantially such form as the
18department may, by regulation, prescribe.

19(2) Where the tangible personal property or service is
20of a type which is never subject to the tax imposed or where
21the sale or lease is in interstate commerce, the certificate
22need not be furnished.

23(3) Where a series of transactions are not subject to
24tax, a purchaser or user may furnish the vendor with a single
25exemption certificate in substantially such form and valid
26for such period of time as the department may, by regulation,
27prescribe.

28(4) The department shall provide all school districts
29and intermediate units with a permanent tax exemption number.

30(5) An exemption certificate, which is complete and

1regular and on its face discloses a valid basis of exemption
2if taken in good faith, shall relieve the vendor from the
3liability imposed by this section.

4(6) An exemption certificate:

5(i) accepted by a vendor from a natural person
6domiciled within this Commonwealth or any association,
7fiduciary, partnership, corporation or other entity,
8either authorized to do business within this Commonwealth
9or having an established place of business within this
10Commonwealth, in the ordinary course of the vendor's
11business;

12(ii) which on its face discloses a valid basis of
13exemption consistent with the activity of the purchaser
14and character of the property or service being purchased
15or which is provided to the vendor by a charitable,
16religious, educational or volunteer firefighters'
17organization;

18(iii) contains the organization's charitable
19exemption number; and

20(iv) which, in the case of any purchase costing $200
21or more, is accompanied by a sworn declaration on a form
22to be provided by the department of an intended usage of
23the property or service which would render it nontaxable,

24shall be presumed to be taken in good faith and the burden of
25proving otherwise shall be on the department.

26(d) Waivers.--

27(1) The department may authorize a purchaser or lessee
28who acquires tangible personal property or services under
29circumstances which make it impossible at the time of
30acquisition to determine the manner in which the tangible

1personal property or service will be used, to pay the tax
2directly to the department, and waive the collection of the
3tax by the vendor.

4(2) No such authority shall be granted or exercised,
5except on application to the department, and the issuance by
6the department, in its discretion, of a direct payment
7permit.

8(3) If a direct payment permit is granted, its use shall
9be subject to conditions specified by the department, and the
10payment of tax on all acquisitions pursuant to the permit
11shall be made directly to the department by the permit
12holder.

13Section 738. Collection of tax on motor vehicles, trailers and
14semitrailers.

15(a) General rule.--Notwithstanding the provisions of section 
16737(b)(1), tax due on the sale at retail or use of a motor 
17vehicle, trailer or semitrailer, except mobile homes as defined 
18in 75 Pa.C.S. (relating to vehicles), required by law to be 
19registered with the department under the provisions of 75 
20Pa.C.S. shall be paid by the purchaser or user directly to the 
21department on application to the department for an issuance of a 
22certificate of title on the motor vehicle, trailer or 
23semitrailer.

24(b) No issuance of certificate of title without payment of
25tax.--

26(1) The department shall not issue a certificate of
27title until the tax has been paid, or evidence satisfactory
28to the department has been given to establish that tax is not
29due.

30(2) The department may cancel or suspend any record of

1certificate of title or registration of a motor vehicle,
2trailer or semitrailer when the check received in payment of
3the tax on the vehicle is not paid on demand.

4(c) First encumbrance.--The tax shall be considered as a
5first encumbrance against the vehicle and the vehicle may not be
6transferred without first payment in full of the tax and any
7interest additions or penalties which shall accrue in accordance
8with this chapter.

9Section 739. Precollection of tax.

10(a) Authorization.--

11(1) Except as otherwise provided under paragraph (2),
12the department may, by regulation, authorize or require
13particular categories of vendors selling tangible personal
14property for resale to precollect from the purchaser the tax
15which the purchaser will collect on making a sale at retail
16of the tangible personal property.

17(2) The department, pursuant to this section, may not
18require a vendor to precollect tax from a purchaser who
19purchases for resale more than $1,000 worth of tangible
20personal property from the vendor per year.

21(b) No license required.--In any case in which a vendor has
22been authorized to prepay the tax to the person from whom the
23vendor purchased the tangible personal property for resale, the
24vendor authorized to prepay the tax may, under the regulations
25of the department, be relieved from the duty to secure a license
26if the duty arises only by reason of the vendor's sale of the
27tangible personal property with respect to which the vendor is,
28under authorization of the department, to prepay the tax.

29(c) Reimbursement.--

30(1) The vendor, on making a sale at retail of tangible

1personal property with respect to which the vendor has
2prepaid the tax, must separately state at the time of resale
3the proper amount of tax on the transaction, and reimburse
4itself on account of the taxes which the vendor has
5previously prepaid.

6(2) If the vendor collects a greater amount of tax in
7any reporting period than the vendor previously prepaid on
8purchase of the goods with respect to which the vendor
9prepaid the tax, the vendor must file a return and remit the
10balance to the Commonwealth at the time at which a return
11would otherwise be due with respect to the sales.

12Section 740. Bulk and auction sales.

13A person who sells or causes to be sold at auction, or who
14sells or transfers in bulk, 51% or more of any stock, of goods,
15wares or merchandise of any kind, fixtures, machinery,
16equipment, buildings or real estate, involved in a business for
17which the person is licensed or required to be licensed under
18this chapter, or is liable for filing use tax returns in
19accordance with this chapter, shall be subject to the provisions
20of section 1403 of The Fiscal Code.

21Section 741. Collection on failure to request reassessment,
22review or appeal.

23(a) General rule.--The department may collect any tax:

24(1) If an assessment of tax is not paid within ten days
25or 30 days, as the case may be, after notice of the
26assessment to the taxpayer and no petition for reassessment
27has been filed.

28(2) Within 60 days from the date of reassessment, if no
29petition for review has been filed.

30(3) Within 30 days from the date of the decision of the

1Board of Finance and Revenue on a petition for review, or of
2the expiration of the board's time for acting on the
3petition, if no appeal has been made.

4(4) In all cases of judicial sales, receiverships,
5assignments or bankruptcies.

6(b) Limitation on defenses.--

7(1) Subject to the provisions of paragraph (2), in any
8such case in a proceeding for the collection of the taxes,
9the person against whom the taxes were assessed shall not be
10permitted to set up any ground of defense that might have
11been determined by the department, the Board of Finance and
12Revenue or the courts.

13(2) The defense of failure of the department to mail
14notice of assessment or reassessment to the taxpayer and the
15defense of payment of assessment or reassessment may be
16raised in proceedings for collection by a motion to stay the
17proceedings.

18Section 742. Lien for taxes.

19(a) Nature and effect of lien.--

20(1) If any person liable to pay any tax neglects or
21refuses to pay the same after demand, the amount, including
22any interest, addition or penalty, together with any costs
23that may accrue in addition, shall be a lien in favor of the
24Commonwealth on the property, both real and personal, of the
25person but only after same has been entered and docketed of
26record by the prothonotary of the county where the property
27is situated.

28(2) The department may, at any time, transmit to the
29prothonotaries of the respective counties certified copies of
30all liens for taxes imposed by this chapter or the Tax Reform

1Code of 1971 and penalties and interest.

2(3) Each prothonotary receiving the lien shall enter and
3docket the lien of record in the prothonotary's office, which
4lien shall be indexed as judgments are now indexed.

5(4) No prothonotary shall require, as a condition
6precedent to the entry of the liens, the payment of the costs
7incident thereto.

8(b) Priority status.--

9(1) The lien imposed under this section shall have
10priority from the date of its recording, and shall be fully
11paid and satisfied out of the proceeds of any judicial sale
12of property before any other obligation, judgment, claim,
13lien or estate to which the property may subsequently become
14subject, except costs of the sale and of the writ on which
15the sale was made, and real estate taxes and municipal claims
16against such property, but shall be subordinate to mortgages
17and other liens existing and duly recorded or entered of
18record prior to the recording of the tax lien.

19(2) In the case of a judicial sale of property, subject
20to a lien imposed under this section, on a lien or claim over
21which the lien imposed under this section has priority, the
22sale shall discharge the lien imposed under this section to
23the extent only that the proceeds are applied to its payment,
24and the lien shall continue in full force and effect as to
25the balance remaining unpaid.

26(3) There shall be no inquisition or condemnation upon
27any judicial sale of real estate made by the Commonwealth
28pursuant to the provisions of this section.

29(4) (i) The lien of the taxes, interest and penalties,
30shall continue for five years from the date of entry, and

1may be revived and continued in the manner now or
2hereafter provided for renewal of judgments, or as may be
3provided in The Fiscal Code, and a writ of execution may
4directly issue upon the lien without the issuance and
5prosecution to judgment of a writ of scire facias.

6(ii) Not less than ten days before issuance of any
7execution on the lien, notice of the filing and the
8effect of the lien shall be sent by registered mail to
9the taxpayer at the taxpayer's last known post office
10address.

11(iii) The lien shall have no effect on any stock of
12goods, wares or merchandise regularly sold or leased in
13the ordinary course of business by the person against
14whom the lien has been entered, unless and until a writ
15of execution has been issued and a levy made on the stock
16of goods, wares and merchandise.

17(c) Penalty.--Any willful failure of any prothonotary to
18carry out any duty imposed on the prothonotary under this
19section shall be a misdemeanor, and, upon conviction, the
20prothonotary shall be sentenced to pay a fine not more than
21$1,000 and costs of prosecution or to a term of imprisonment not
22exceeding one year, or both.

23(d) Priority payment from distribution.--

24(1) Except as otherwise provided under the law, in the
25distribution, voluntary or compulsory, in receivership,
26bankruptcy or otherwise, of the property or estate of any
27person, all taxes imposed by this chapter which are due and
28unpaid and are not collectible under section 725 shall be
29paid from the first money available for distribution in
30priority to all other claims and liens, except insofar as the

1laws of the United States may give a prior claim to the
2Federal Government.

3(2) Any person charged with the administration or
4distribution of the property or estate, who violates the
5provisions of this section, shall be personally liable for
6any taxes imposed by this chapter, which are accrued and
7unpaid and are chargeable against the person whose property
8or estate is being administered or distributed.

9(e) Construction.--Subject to the limitations contained in
10this chapter as to the assessment of taxes, nothing contained in
11this section shall be construed to restrict, prohibit or limit
12the use by the department in collecting taxes finally due and
13payable of any other remedy or procedure available at law or
14equity for the collection of debts.

15Section 743. Suit for taxes.

16(a) General rule.--At any time within three years after any
17tax or any amount of tax shall be finally due and payable, the
18department may commence an action in the courts of this
19Commonwealth, of any state or of the United States, in the name
20of the Commonwealth, to collect the amount of tax due together
21with additions, interest, penalties and costs in the manner
22provided at law or in equity for the collection of ordinary
23debts.

24(b) Prosecution by Attorney General.--The Attorney General
25shall prosecute the action and, except as provided in this
26chapter, the provisions of the Rules of Civil Procedure and the
27provisions of the laws of this Commonwealth relating to civil
28procedures and remedies shall, to the extent that they are
29applicable, be available in such proceedings.

30(c) Construction.--The provisions of this section are in

1addition to any process, remedy or procedure for the collection
2of taxes provided by this chapter or by the laws of this
3Commonwealth, and this section is neither limited by nor
4intended to limit any such process, remedy or procedure.

5Section 744. Tax suit comity.

6The courts of this Commonwealth shall recognize and enforce
7liabilities for sales and use taxes, lawfully imposed by any
8other state if the other state extends a like comity to this
9Commonwealth.

10Section 745. Service.

11(a) General rule.--Any person who maintains a place of
12business in this Commonwealth is deemed to have appointed the
13Secretary of the Commonwealth as the person's agent for the
14acceptance of service of process or notice in any proceedings
15for the enforcement of the civil provisions of this chapter, and
16any service made upon the Secretary of the Commonwealth as agent
17shall be of the same legal force and validity as if the service
18had been personally made on the person.

19(b) Substitute service.--Where service cannot be made on the
20person in the manner provided by other laws of this Commonwealth
21relating to service of process, service may be made on the
22Secretary of the Commonwealth and, in such case, a copy of the
23process or notice shall also be personally served on any agent
24or representative of the person who may be found within this
25Commonwealth, or where no such agent or representative may be
26found a copy of the process or notice shall be sent by
27registered mail to the person at the last known address of the
28person's principal place of business, home office or residence.

29Section 746. Collection and payment of tax on credit sales.

30If any sale subject to tax under this chapter is wholly or

1partly on credit, the vendor shall require the purchaser to pay
2in cash at the time the sale is made, or within 30 days
3thereafter, the total amount of tax due upon the entire purchase
4price. The vendor shall remit the tax to the department,
5regardless of whether payment was made by the purchaser to the
6vendor, with the next return required to be filed under section
7717.

8Section 747. Prepayment of tax.

9(a) General rule.--Whenever a vendor is prohibited by law or
10governmental regulation to charge and collect the purchase price
11in advance of or at the time of delivery, the vendor shall
12prepay the tax as required by section 722, but in that case, if
13the purchaser fails to pay to the vendor the total amount of the
14purchase price and the tax and the amount is written off as
15uncollectible by the vendor, the vendor shall not be liable for
16the tax and shall be entitled to a credit or refund of the tax
17paid.

18(b) Subsequent collection of tax.--If the purchase price is
19thereafter collected, in whole or in part, the amount collected
20shall be first applied to the payment of the entire tax portion
21of the bill, and shall be remitted to the department by the
22vendor with the first return filed after such collection.

23(c) Time period for refund.--Tax prepaid shall be subject to
24refund on petition to the department under the provisions of
25section 752, filed within 105 days of the close of the fiscal
26year in which the accounts are written off.

27Section 747.1. Refund of sales tax attributed to bad debt.

28(a) General rule.--A vendor may file a petition for refund
29of sales tax paid to the department that is attributed to a bad
30debt if all of the following apply:

1(1) The purchaser fails to pay the vendor the total
2purchase price.

3(2) The purchase price is written off, either in whole
4or in part, as a bad debt on the vendor's books and records.

5(3) The bad debt has been deducted for Federal income
6tax purposes under section 166 of the Internal Revenue Code
7of 1986.

8The petition must be filed with the department under Article
9XXVII of the Tax Reform Code of 1971 within the time limitations
10prescribed by section 3003.1 of the Tax Reform Code of 1971.

11(b) Limitation.--

12(1) The refund authorized by this section shall be
13limited to the sales tax paid to the department that is
14attributed to the bad debt, less any discount under section
15727.

16(2) Partial payments by the purchaser to the vendor
17shall be prorated between the original purchase price and the
18sales tax due on the sale.

19(3) Payments made to a vendor on any transaction which
20includes both taxable and nontaxable components shall be
21allocated proportionally between the taxable and nontaxable
22components.

23(c) Assignment.--A vendor may assign its right to petition
24and receive a refund of sales tax attributed to a bad debt to an
25affiliated entity. A vendor may not assign its right to petition
26and receive a refund of sales tax attributed to a bad debt to
27any other person.

28(d) Items not refundable.--No refund shall be granted under
29this section for interest, finance charges or expenses incurred
30in attempting to collect any amount receivable.

1(e) Contents of petition for refund.--The documentation,
2procedures and methods for claiming and calculating the refund
3allowed under this section shall be in such form as the
4department may prescribe.

5(f) Subsequent collection.--If the purchase price that is
6attributed to a prior bad debt refund is collected in whole or
7in part, the vendor or affiliated entity shall remit the
8proportional tax to the department with the first return filed
9after the collection.

10(g) Interest prohibited.--Notwithstanding the provisions of
11section 806.1 of The Fiscal Code, no interest shall be paid by
12the Commonwealth on refunds of sales tax attributed to bad debt
13under this section.

14(h) Administration.--

15(1) No refund or credit of sales tax shall be made for
16any uncollected purchase price or bad debt except as
17authorized by this section.

18(2) No deduction or credit for bad debt may be taken on
19any return filed with the department.

20(3) This section shall provide the exclusive procedure
21for claiming a refund or credit of sales tax attributed to
22uncollected purchase price or bad debt.

23(i) Definition.--For purposes of this section, the term
24"affiliated entity" means any corporation that is part of the
25same affiliated group as the vendor as defined by section
261504(a)(1) of the Internal Revenue Code of 1986.

27Section 748. Registration of transient vendors.

28(a) General rule.--Prior to conducting business or otherwise
29commencing operations in this Commonwealth, a transient vendor
30shall register with the department. The application for

1registration shall be in such form and contain such information
2as the department, by regulation, shall prescribe and shall set
3forth truthfully and accurately the information desired by the
4department. This registration shall be renewed and updated
5annually.

6(b) Certificate to be issued.--After registration and the
7posting of the bond required by section 748.1, the department
8shall issue to the transient vendor a certificate valid for one
9year. On renewal of registration, the department shall issue a
10new certificate valid for one year, if the department is
11satisfied that the transient vendor has complied with the
12provisions of this chapter.

13(c) Possession and exhibition of certificate.--The transient
14vendor shall possess the certificate at all times when
15conducting business within this Commonwealth and shall exhibit
16the certificate upon demand by authorized employees of the
17department or any law enforcement officer.

18(d) Contents of certificate.--The certificate issued by the
19department shall state that the transient vendor named in the
20certificate has registered with the department and shall provide
21notice to the transient vendor that:

22(1) The transient vendor must notify the department in
23writing before it enters this Commonwealth to conduct
24business, of the location or locations where it intends to
25conduct business and the date or dates on which it intends to
26conduct business.

27(2) Failure to notify or giving false information to the
28department may result in suspension or revocation of the
29transient vendor's certificate.

30(3) Conducting business in this Commonwealth after a

1certificate has been suspended or revoked may result in
2criminal conviction and the imposition of fines or other
3penalties.

4Section 748.1. Bond.

5(a) General rule.--Upon registration with the department, a
6transient vendor shall also post a bond with the department in
7the amount of $500 as surety for compliance with the provisions
8of this chapter. After a period of demonstrated compliance with
9these provisions or, if the transient vendor provides the
10license number of a promoter who has notified the department of
11a show, in accordance with the provisions of section 748.6(a),
12the department may reduce the amount of bond required of a
13transient vendor or may eliminate the bond entirely.

14(b) Voluntary suspension of certificate.--A transient vendor
15may file a request for voluntary suspension of certificate with
16the department. If the department is satisfied that the
17provisions of this chapter have been complied with and has
18possession of the transient vendor's certificate, it shall
19return the bond posted to the transient vendor.

20Section 748.2. Notification to department.

21(a) General rule.--Prior to entering this Commonwealth to
22conduct business, a transient vendor shall notify the department
23in writing of the location or locations where it intends to
24conduct business and the date or dates on which it intends to
25conduct business.

26(b) Inspection of records.--While conducting business in
27this Commonwealth, the transient vendor shall permit authorized
28employees of the department to inspect its sales records,
29including, but not limited to, sales receipts and inventory or
30price lists and to permit inspection of the tangible personal

1property offered for sale at retail.

2(c) Conditions for suspension or revocation of
3certificate.--The department may suspend or revoke a certificate
4issued to a transient vendor if the transient vendor:

5(1) fails to notify the department as required by
6subsection (a);

7(2) provides the department with false information
8regarding the conduct of business in this Commonwealth;

9(3) fails to collect sales tax on all tangible personal
10property or services sold subject to the sales tax; or

11(4) fails to file with the department a tax return as
12required by section 717.

13(d) Regulations.--The department shall promulgate the rules
14and regulations necessary to implement this section.

15Section 748.3. Seizure of property.

16(a) General rule.--If a transient vendor conducting business
17in this Commonwealth fails to exhibit a valid certificate on
18demand by authorized employees of the department, those
19authorized employees shall seize, without warrant, the tangible
20personal property and the automobile, truck or other means of
21transportation used to transport or carry that property. All
22property seized shall be deemed contraband and shall be subject
23to immediate forfeiture proceedings instituted by the department
24pursuant to procedures adopted by regulation, except as
25otherwise provided by this section.

26(b) Release of seized property.--Property seized pursuant to
27subsection (a) shall be released on:

28(1) presentation of a valid certificate to authorized
29employees of the department; or

30(2) registration by the transient vendor with the

1department and the posting of a bond in the amount of $500,
2either immediately or within 15 days after the property is
3seized.

4Section 748.4. Fines.

5Any transient vendor conducting business in this Commonwealth
6while its certificate is suspended or revoked, as provided by
7sections 748.1(b) and 748.2(c), commits a misdemeanor of the
8third degree and, upon conviction, shall be sentenced to pay a
9fine of not more than $2,500 for each offense.

10Section 748.5. Transient vendors subject to chapter.

11Except as otherwise provided, a transient vendor shall be
12subject to the provisions of this chapter in the same manner as
13a vendor who maintains a place of business in this Commonwealth.

14Section 748.6. Promoters.

15(a) General rule.--A promoter of a show or shows in this
16Commonwealth may annually file with the department an
17application for a promoter's license stating the location and
18dates of such show or shows. The application shall be filed at
19least 30 days prior to the opening of the first show and shall
20be in such form as the department may prescribe.

21(b) License.--

22(1) Except as otherwise provided in this chapter, the
23department shall, within 15 days after receipt of an
24application for a license, issue to the promoter without
25charge a license to operate such shows.

26(2) If application for a license under this section has
27been timely filed and if the license has not been received by
28the promoter prior to the opening of the show, the
29authorization contained in this section with respect to the
30obtaining of a promoter's license shall be deemed to have

1been complied with, unless or until the promoter receives
2notice from the department denying the application for a
3promoter's license.

4(c) Compliance.--Any promoter who is a vendor under the
5provisions of section 701 shall comply with all the provisions
6of this chapter applicable to vendors and with the provisions of
7this section applicable to promoters.

8(d) Prohibited conduct.--No licensed promoter shall permit
9any person to display for sale or to sell tangible personal
10property or services subject to tax under section 702 at a show
11unless the person is licensed under section 708 and provides to
12the promoter the information required under law.

13(e) Penalties.--

14(1) Any licensed promoter who:

15(i) permits any person to display for sale or to
16sell tangible personal property or service without first
17having been licensed under section 708;

18(ii) fails to maintain records of a show as required
19by law; or

20(iii) knowingly maintains false records or fails to
21comply with any provision contained in this section or
22any regulation promulgated by the department pertaining
23to shows,

24shall be subject to denial of a license or the revocation of
25any existing license issued pursuant to this section.

26(2) The department may deny the promoter a license
27certificate to operate a show for a period of not more than
28six months from the date of such denial. The penalty shall be
29in addition to any other penalty imposed by this chapter.

30(3) Within 20 days of notice of denial or revocation of 

1a license by the department, the promoter may petition the 
2department for a hearing pursuant to 2 Pa.C.S. (relating to 
3administrative law and procedure).

4Section 749. (Reserved).

5Section 750. (Reserved).

6Section 751. (Reserved).

7Section 752. Refunds.

8(a) General rule.--Subject to the provisions of subsection
9(b), the department shall, pursuant to the provisions of Article
10XXVII of the Tax Reform Code of 1971, refund all taxes, interest
11and penalties paid to the Commonwealth under the provisions of
12this chapter and to which the Commonwealth is not rightfully
13entitled. The refunds shall be made to the person, the person's
14heirs, successors, assigns or other personal representatives,
15who actually paid the tax.

16(b) Exception.--No refund shall be made under this section
17with respect to any payment made by reason of an assessment with
18respect to which a taxpayer has filed a petition for
19reassessment pursuant to section 2702 of the Tax Reform Code of
201971 to the extent that the petition has been determined
21adversely to the taxpayer by a decision which is no longer
22subject to further review or appeal.

23(c) Construction.--Nothing contained in this section shall
24be deemed to prohibit a taxpayer who has filed a timely petition
25for reassessment from amending it to a petition for refund where
26the petitioner has paid the tax assessed.

27Section 753. Refund petition.

28(a) General rule.--Except as provided for in subsection (b)
29and section 756, the refund or credit of tax, interest or
30penalty provided for by section 752 shall be made only where the

1person who has actually paid the tax files a petition for refund
2with the department under Article XXVII of the Tax Reform Code
3of 1971, within the limits of section 3003.1 of the Tax Reform
4Code of 1971.

5(b) Assessments.--A refund or credit of tax, interest or
6penalty paid as a result of an assessment made by the department
7under section 731 shall be made only where the person who has
8actually paid the tax files with the department a petition for a
9refund with the department under Article XXVII of the Tax Reform
10Code of 1971 within the time limits of section 3003.1 of the Tax
11Reform Code of 1971. The filing of a petition for refund under
12the provisions of this subsection shall not affect the abatement
13of interest, additions or penalties to which the person may be
14entitled by reason of the person's payment of the assessment.

15Section 754. (Reserved).

16Section 755. (Reserved).

17Section 756. Extended time for filing special petition for
18refund.

19(a) General rule.--Any party to a transaction who has paid
20tax by reason of a transaction with respect to which the
21department is assessing tax against another person may, within
22six months after the filing by the department of the assessment
23against the other person, file a special petition for refund,
24notwithstanding the person's failure to timely file a petition
25pursuant to section 3003.1 of the Tax Reform Code of 1971. The
26provisions of Article XXVII of the Tax Reform Code of 1971 shall
27be applicable to the special petition for refund, except that
28the department need not act on the petition until there is a
29final determination as to the propriety of the assessment filed
30against the other party to the transaction. Where a petition is

1filed under this provision in order to take advantage of the
2extended period of limitations, overpayments by the petitioner
3shall be refunded but only to the extent of the actual tax,
4without consideration of interest and penalties, paid by the
5other party to the transaction.

6(b) Purpose.--The purpose of this section is to avoid
7duplicate payment of tax where a determination is made by the
8department that one party to a transaction is subject to tax,
9and another party to the transaction has previously paid tax
10with respect to the transaction and, as such, this section shall
11be construed as extending right beyond that provided for by
12section 753, and not to limit the other section.

13Section 757. (Reserved).

14Section 758. Limitation on assessment and collection.

15The amount of the tax imposed by this chapter or the Tax
16Reform Code of 1971 shall be assessed within three years after
17the date when the return provided for by section 717(a) or (c)
18is filed or the end of the year in which the tax liability
19arises, whichever occurs later. Any assessment may be made at
20any time during the period notwithstanding that the department
21may have made one or more previous assessments against the
22taxpayer for the year in question, or for any part of the year.
23In any case, no credit shall be given for any penalty previously
24assessed or paid.

25Section 759. Failure to file return.

26Where no return is filed, the amount of the tax due may be
27assessed and collected at any time as to taxable transactions
28not reported.

29Section 760. False or fraudulent return.

30Where the taxpayer willfully files a false or fraudulent

1return with intent to evade the tax imposed by this chapter, the
2amount of tax due may be assessed and collected at any time.

3Section 761. Extension of limitation period.

4Notwithstanding any other provisions of this subchapter
5where, before the expiration of the period prescribed in that
6other provision for the assessment of a tax, a taxpayer has
7consented in writing that the period be extended, the amount of
8tax due may be assessed at any time within the extended period.
9The period so extended may be extended further by subsequent
10consents in writing made before the expiration of the extended
11period.

12Section 762. (Reserved).

13Section 763. (Reserved).

14Section 764. (Reserved).

15Section 765. Interest.

16If any amount of tax imposed by this chapter is not paid to
17the department on or before the last date prescribed for
18payment, interest on the amount at the rate of .75% per month
19for each month, or fraction thereof, from the date, shall be
20paid for the period from the last date to the date paid. The
21last date prescribed for payment shall be determined under
22section 722(a) or (c) without regard to any extension of time
23for payment. In the case of any amount assessed as a deficiency
24or as an estimated assessment, the date prescribed for payment
25shall be 30 days after notice of the assessment.

26Section 766. Additions to tax.

27(a) Failure to file return.--In the case of failure to file
28any return required by section 715 on the date prescribed for
29the return, determined with regard to any extension of time for
30filing, and, in the case in which a return filed understates the

1true amount due by more than 50%, there shall be added to the
2amount of tax actually due 5% of the amount of the tax if the
3failure to file a proper return is for not more than one month,
4with an additional 5% for each additional month, or fraction
5thereof, during which such failure continues, not exceeding 25%
6in the aggregate. In every case at least $2 shall be added.

7(b) Addition for understatement.--There shall be added to
8every assessment under section 731(b) an addition equal to 5% of
9the amount of the understatement and no addition to the tax
10shall be paid under section 731(a).

11(c) Interest.--If the department assesses a tax according to
12section 731(a), (b) or (c), there shall be added to the amount
13of the deficiency interest at the rate of .75% per month for
14each month, or fraction thereof, from the date prescribed by
15subsection (a) or section 722(c) for the payment of the tax to
16the date of notice of the assessment.

17Section 767. Penalties.

18(a) General rule.--The penalties, additions, interest and
19liabilities provided by this chapter shall be paid on notice and
20demand by the department, and shall be assessed and collected in
21the same manner as taxes. Except as otherwise provided, any
22reference in this chapter to tax imposed by this chapter shall
23be deemed also to refer to the penalties, additions, interest
24and liabilities provided by this chapter.

25(b) Monetary penalty.--Any person who willfully attempts, in
26any manner, to evade or defeat the tax imposed by this chapter,
27or the payment thereof, or to assist any other person to evade
28or defeat the tax imposed by this chapter, or the payment
29thereof, or to receive a refund improperly shall, in addition to
30other penalties provided by law, be liable for a penalty equal

1to one-half of the total amount of the tax evaded.

2(c) Burden of proof.--In any direct proceeding arising out
3of a petition for reassessment or refund as provided in this
4chapter, in which an issue of fact is raised with respect to
5whether a return is fraudulent or with respect to the propriety
6of the imposition by the department of the penalty prescribed in
7subsection (b), the burden of proof with respect to the issue
8shall be on the department.

9Section 768. Criminal offenses.

10(a) False returns.--Any person who with intent to defraud
11the Commonwealth willfully makes, or causes to be made, any
12return required by this chapter which is false commits a
13misdemeanor and, upon conviction, shall be sentenced to pay a
14fine of not more than $2,000 or to imprisonment not exceeding
15three years, or both.

16(b) Other offenses.--Except as otherwise provided by
17subsection (a) and subject to the provisions of subsection (c),
18any person who:

19(1) advertises or holds out or states to the public or
20to any purchaser or user, directly or indirectly, that the
21tax or any part imposed by this chapter will be absorbed by
22the person, or that it will not be added to the purchase
23price of the tangible personal property or services described
24in section 701(k)(2), (3), (4) and (11) through (18) sold or,
25if added, that the tax or any part will be refunded, other
26than when the person refunds the purchase price because of
27the property being returned to the vendor;

28(2) sells or leases tangible personal property or the
29services, the sale or use of which by the purchaser is
30subject to tax under this chapter, and willfully fails to

1collect the tax from the purchaser and timely remit the same
2to the department;

3(3) willfully fails or neglects to timely file any
4return or report required by this chapter or, as a taxpayer,
5refuses to timely pay any tax, penalty or interest imposed or
6provided for by this chapter, or willfully fails to preserve
7the person's books, papers and records as directed by the
8department;

9(4) refuses to permit the department or any of its
10authorized agents to examine the person's books, records or
11papers, or who knowingly makes any incomplete, false or
12fraudulent return or report;

13(5) does or attempts to do anything to prevent the full
14disclosure of the amount or character of taxable sales
15purchases or use made by himself or any other person;

16(6) provides any person with a false statement as to the
17payment of tax with respect to particular tangible personal
18property or services; or

19(7) makes, utters or issues a false or fraudulent
20exemption certificate;

21commits a misdemeanor and, upon conviction shall be sentenced to
22pay a fine of not more than $1,000 and costs of prosecution or
23to imprisonment for not more than one year, or both.

24(c) Exceptions.--

25(1) Any person who maintains a place of business outside
26this Commonwealth may absorb the tax with respect to taxable
27sales made in the normal course of business to customers
28present at that place of business without being subject to
29the penalty and fines.

30(2) Advertising tax-included prices shall be

1permissible, if the prepaid services are sold by the service
2provider, for prepaid telecommunications services not
3evidenced by the transfer of tangible personal property or
4for prepaid mobile telecommunications services.

5(d) Penalties are cumulative.--The penalties imposed by this
6section shall be in addition to any other penalties imposed by
7any provision of this chapter.

8Section 769. Abatement of additions or penalties.

9On the filing of a petition for reassessment or a petition
10for refund as provided under this chapter by a taxpayer,
11additions or penalties imposed on the taxpayer by this chapter
12or the Tax Reform Code of 1971 may be waived or abated, in whole
13or in part, where the petitioner has established that the
14petitioner has acted in good faith, without negligence and with
15no intent to defraud.

16Section 770. Rules and regulations.

17(a) General rule.--The department shall enforce the
18provisions of this chapter and shall prescribe, adopt,
19promulgate and enforce rules and regulations not inconsistent
20with the provisions of this chapter, relating to any matter or
21thing pertaining to the administration and enforcement of the
22provisions of this chapter, and the collection of taxes,
23penalties and interest imposed by this chapter. The department
24may prescribe the extent, if any, to which any of the rules and
25regulations shall be applied without retroactive effect.

26(b) Determination of purchase price.--

27(1) In determining the purchase price of taxable sales
28where, because of affiliation of interests between the vendor
29and the purchaser or irrespective of any such affiliation, if
30for any other reason, the purchase price of the sale is in

1the opinion of the department not indicative of the true
2value of the article or the fair price of the article, the
3department shall, pursuant to uniform and equitable rules,
4determine the amount of constructive purchase price on the
5basis of which the tax shall be computed and levied.

6(2) The rules shall provide for a constructive amount of
7a purchase price for each sale, which price shall equal a
8price for the article which would naturally and fairly be
9charged in an arm's-length transaction in which the element
10of common interests between vendor and purchaser or, if no
11common interest exists, any other element causing a
12distortion of the price or value is absent.

13(3) For the purpose of this chapter where a taxable sale
14occurs between a parent corporation and a subsidiary
15affiliate or controlled corporation of such parent, there
16shall be a rebuttable presumption that because of such common
17interest the transaction was not at arm's-length.

18Section 771. Keeping of records.

19(a) Persons liable for taxes.--Every person liable for any
20tax imposed by this chapter, or for the collection of the tax,
21shall keep the records, render such statements, make the returns
22and comply with the rules and regulations as the department may,
23from time to time, prescribe regarding matters pertinent to the
24person's business. Whenever in the judgment of the department it
25is necessary, it may require any person, by notice served on the
26person, or by regulations, to make the returns, render the
27statements or keep the records as the department deems
28sufficient to show whether the person is liable to pay or
29collect tax under this chapter.

30(b) Persons collecting taxes.--Any person liable to collect

1tax from another person under the provisions of this chapter
2shall file reports, keep records, make payments and be subject
3to interest and penalties as provided for under this chapter, in
4the same manner as if the person were directly subject to the
5tax.

6(c) Nonresidents.--

7(1) A nonresident who does business in this Commonwealth
8as a retail dealer shall keep adequate records of the
9business and of the tax due with respect to the business,
10which records shall at all times be retained within this
11Commonwealth unless retention outside this Commonwealth is
12authorized by the department.

13(2) No taxes collected from purchasers shall be sent
14outside this Commonwealth without the written consent of and
15in accordance with conditions prescribed by the department.

16(3) The department may require a taxpayer who desires to
17retain records or tax collections outside this Commonwealth
18to assume reasonable out-of-State audit expenses.

19(d) Retail dealers.--

20(1) Any person doing business as a retail dealer who at
21the same time is engaged in another business which does not
22involve the making of sales taxable under this chapter shall
23keep separate books and records of the person's businesses so
24as to show the sales taxable under this chapter separately
25from the sales not taxable under this chapter.

26(2) If the person fails to keep such separate books and
27records, the person shall be liable for tax at the rate
28designated in section 702 on the entire purchase price of
29sales from both or all of the person's businesses.

30(e) Segregation of taxes required.--

1(1) In those instances where a vendor gives no sales
2memoranda or uses registers showing only total sales, the
3vendor shall adopt some method of segregating tax from sales
4receipts and keep records showing the segregation, all in
5accordance with proper accounting and business practices.

6(2) A vendor may apply to the department for permission
7to use a collection and recording procedure which will show
8the information as the law requires with reasonable accuracy
9and simplicity. The application must contain a detailed
10description of the procedure to be adopted.

11(3) Permission to use the proposed procedure is not to
12be construed as relieving the vendor from remitting the full
13amount of tax collected.

14(4) The department may revoke the permission on 30 days'
15notice to the vendor.

16(5) Refusal of the department to grant permission in
17advance to use the procedure shall not be construed to
18invalidate a procedure which on examination shows the
19information as the law requires.

20Section 771.1. Reports and records of promoters.

21Every licensed promoter shall keep a record of the date and
22place of each show and the name, address, sales, use and hotel
23occupancy license number of every person whom the licensed
24promoter permits to display for sale or to sell tangible
25personal property or services subject to tax under section 702
26at the show. The records shall be open for inspection and
27examination at any reasonable time by the department or a duly
28authorized representative, and the records shall, unless the
29department consents in writing to an earlier destruction, be
30preserved for three years after the date the report was filed or

1the date it was due, whichever occurs later, except that the
2department may by regulation require that they be kept for a
3longer period of time.

4Section 772. Examinations.

5(a) Power of department.--The department or any of its
6authorized agents may examine the books, papers and records of
7any taxpayer in order to verify the accuracy and completeness of
8any return made or if no return was made, to ascertain and
9assess the tax imposed by this chapter. The department may
10require the preservation of all such books, papers and records
11for any period deemed proper by it but not to exceed three years
12from the end of the calendar year to which the records relate.

13(b) Duty of taxpayers.--Every taxpayer shall give to the
14department, or its agent, the means, facilities and opportunity
15for the examinations and investigation.

16(c) Other powers of department.--

17(1) The department is further authorized to examine any
18person, under oath, concerning taxable sales or use by any
19taxpayer or concerning any other matter relating to the
20enforcement or administration of this chapter, and to this
21end may compel the production of books, papers and records
22and the attendance of all persons whether as parties or
23witnesses whom it believes to have knowledge of such matters.

24(2) The procedure for such hearings or examinations
25shall be the same as that provided by The Fiscal Code
26relating to inquisitorial powers of fiscal officers.

27Section 773. Records and examinations of delivery agents.

28Every agent for the purpose of delivery of goods shipped into
29this Commonwealth by a nonresident, including, but not limited
30to, a common carrier, shall maintain adequate records of such

1deliveries pursuant to rules and regulations adopted by the
2department and shall make the records available to the
3department upon request after due notice.

4Section 774. Unauthorized disclosure.

5Any information gained by the department as a result of any
6return, examination, investigation, hearing or verification
7required or authorized by this chapter shall be confidential,
8except for official purposes and except in accordance with
9proper judicial order or as otherwise provided by law, and any
10person unlawfully divulging such information commits a
11misdemeanor and, upon conviction, shall be sentenced to pay a
12fine of not more than $1,000 and costs of prosecution or to
13imprisonment for not more than one year, or both.

14Section 775. Cooperation with other governments.

15Notwithstanding the provisions of section 774, the department
16may permit the Commissioner of Internal Revenue of the United
17States, or the proper officer of any state, or the authorized
18representative of either such officer, to inspect the tax
19returns of any taxpayer, or may furnish to the officer or to the
20officer's authorized representative an abstract of the return of
21any taxpayer, or supply the officer or the authorized
22representative with information concerning any item contained in
23any return or disclosed by the report of any examination or
24investigation of the return of any taxpayer. This permission
25shall be granted only if the statutes of the United States or of
26such other state, as the case may be, grant substantially
27similar privileges to the proper officer of the Commonwealth
28charged with the administration of this chapter.

29Section 776. Interstate compacts.

30(a) General rule.--The Governor, or the Governor's

1authorized representative, may confer with the Governor and the
2authorized representatives of other states with respect to
3reciprocal use tax collection between the Commonwealth and such
4other states.

5(b) Other powers.--The Governor, or the Governor's
6authorized representative, may join with the authorities of
7other states to conduct joint investigations, to exchange
8information, hold joint hearings and enter into compacts or
9interstate agreements with such other states to accomplish
10uniform reciprocal use tax collections between those states who
11are parties to any compact or interstate agreement and the
12Commonwealth.

13Section 777. Bonds.

14(a) Procedure.--

15(1) Whenever the department, in its discretion, deems it
16necessary to protect the revenues to be obtained under the
17provisions of this chapter, it may require any nonresident
18natural person or any foreign corporation, association,
19fiduciary, partnership or other entity, not authorized to do
20in this Commonwealth or not having an established place of
21business in this Commonwealth and subject to the tax imposed
22by section 702, to file a bond issued by a surety company
23authorized to do business in this Commonwealth and approved
24by the Insurance Commissioner as to solvency and
25responsibility, in such amounts as it may fix, to secure the
26payment of any tax or penalties due, or which may become due,
27from a natural person or corporation.

28(2) In order to protect the revenues to be obtained
29under the provisions of this chapter, the department shall
30require any nonresident natural person or any foreign

1corporation, association, fiduciary, partnership or entity,
2who or which is a building contractor, or who or which is a
3supplier delivering building materials for work in this
4Commonwealth and is not authorized to do business in this
5Commonwealth or does not have an established place of
6business in this Commonwealth and is subject to the tax
7imposed by section 702, to file a bond issued by a surety
8company authorized to do business in this Commonwealth and
9approved by the Insurance Commissioner as to solvency and
10responsibility, in the amounts as it may fix, to secure the
11payments of any tax or penalties due, or which may become
12due, from a natural person, corporation or other entity.

13(3) The department may also require a bond of any person
14petitioning the department for reassessment, in the case of
15any assessment over $500 or where it is of the opinion that
16the ultimate collection is in jeopardy.

17(4) (i) The department may, for a period of three
18years, require a bond of any person who has on three or
19more occasions within a 12-month period either filed a
20return or made payment to the department more than 30
21days late.

22(ii) If the department determines that a taxpayer is
23to file a bond, the department shall give notice to the
24taxpayer to that effect, specifying the amount of the
25bond required.

26(iii) The taxpayer shall file a bond within five
27days after the giving of the notice by the department
28unless, within the five-day period, the taxpayer requests
29in writing a hearing before the secretary or the
30secretary's representative at which hearing the

1necessity, propriety and amount of the bond shall be
2determined by the secretary or a representative. The
3determination shall be final and shall be complied within
415 days after notice is mailed to the taxpayer.

5(b) Alternative security.--

6(1) In lieu of the bond required by this section,
7securities approved by the department, or cash in the amount
8as it may prescribe, may be deposited.

9(2) Such securities or cash shall be kept in the custody
10of the department, who may, at any time, without notice to
11the depositor, apply them to any tax and/or interest or
12penalties due, and for that purpose the securities may be
13sold by the department, at public or private sale, on five
14days' written notice to the depositor.

15(c) Lien may be filed.--

16(1) The department may file a lien pursuant to section
17742 against any taxpayer who fails to file a bond when
18required to do so under this section.

19(2) All funds received on execution of the judgment on
20the lien shall be refunded to the taxpayer with 3% interest
21should a final determination be made that the taxpayer does
22not owe any payment to the department.

23SUBCHAPTER G

24FUNDING PROVISIONS

25Section 780. (Reserved).

26Section 781. Appropriation for refunds.

27So much of the proceeds of the tax imposed by this chapter as
28shall be necessary for the payment of refunds, enforcement or
29administration under this chapter is hereby appropriated for
30those purposes.

1Section 781.1. Construction.

2To the extent that the language of this chapter is identical 
3to that of equivalent provisions in the former act of March 6, 
41956 (P.L.1228, No.381), known as the Tax Act of 1963 for 
5Education, or Article II of the Tax Reform Code of 1971, that 
6language shall be deemed a reenactment of such identical 
7provisions.

8Section 782. Transfers to Education Stabilization Fund.

9(a) Legislative intent.--It is the intent of the General
10Assembly to increase the rate of the current sales and use tax
11and broaden the sales and use tax base in order to provide funds
12for the operating expenses of school districts and as a means to
13abolish the school property tax.

14(b) Deposit of sales and use tax collected.--The secretary
15shall deposit into the Education Stabilization Fund revenues
16received on or after January 1, 2014, regardless of the
17transaction date, that equal the portion of the tax imposed by
18this chapter as follows:

19(1) Except as otherwise provided in paragraphs (2) and
20(3), 1% of the tax collected on the sales at retail and use
21of tangible personal property and services as provided in
22section 702.

23(2) All of the tax collected on the sale at retail of
24services under section 702, including those services subject
25to the tax as provided under sections 701(k)(4) and (o)(4)
26and 704(51).

27(3) All of the tax collected on expanded sales and uses.

28(c) Definition.--For purposes of this section, "expanded
29sales and uses" means:

30(1) The sale at retail or use of disposable diapers;

1premoistened wipes; incontinence products; colostomy
2deodorants; toilet paper; sanitary napkins, tampons or
3similar items used for feminine hygiene; or toothpaste,
4toothbrushes or dental floss.

5(2) The sale at retail or use of nonprescription
6medicines.

7(3) The sale at retail or use of all vesture, wearing
8apparel, raiments, garments, footwear and other articles of
9clothing, except as excluded from the tax under section
10704(26).

11(4) The sale at retail or use of food and beverages for
12human consumption, except as excluded from the tax under
13section 704(29).

14(5) The sale at retail or use of newspapers. For
15purposes of this section, the term "newspaper" shall mean a
16"legal newspaper" or a publication containing matters of
17general interest and reports of current events which
18qualifies as a "newspaper of general circulation" qualified
19to carry a "legal advertisement" as those terms are defined
20in 45 Pa.C.S. § 101 (relating to definitions), not including
21magazines. The term "newspaper" also includes any printed
22advertising materials circulated with such newspaper
23regardless of where or by whom such printed advertising
24material was produced.

25(6) The sale at retail or use of caskets and burial
26vaults for human remains and markers and tombstones for human
27graves.

28(7) The sale at retail or use of flags of the United
29States and the Commonwealth of Pennsylvania.

30(8) The sale at retail or use of textbooks for use in

1schools, colleges and universities, either public or private,
2when purchased in behalf of or through such schools, colleges
3or universities provided such institutions of learning are
4recognized by the Department of Education.

5(9) The sale at retail or use of motion picture film
6rented or licensed from a distributor for the purpose of
7commercial exhibition.

8(10) The sale at retail or use of mail order catalogs
9and direct mail advertising literature or materials,
10including electoral literature or materials, such as
11envelopes, address labels and a one-time license to use a
12list of names and mailing addresses for each delivery of
13direct mail advertising literature or materials, including
14electoral literature or materials, through the United States
15Postal Service.

16(11) The sale at retail of horses, if at the time of
17purchase, the seller is directed to ship or deliver the horse
18to an out-of-State location, whether or not the charges for
19shipment are paid for by the seller or the purchaser.

20(12) The sale at retail of supplies and materials to
21tourist promotion agencies, which receive grants from the
22Commonwealth, for distribution to the public as promotional
23material or the use of such supplies and materials by said
24agencies for said purposes.

25(13) The sale at retail or use of materials used in the
26construction and erection of objects purchased by not-for-
27profit organizations for purposes of commemoration and
28memorialization of historical events, provided that the
29object is erected upon publicly owned property or property to
30be conveyed to a public entity upon the commemoration or

1memorialization of the historical event.

2(14) The sale at retail or use of candy or gum
3regardless of the location from which the candy or gum is
4sold.

5(15) The sale at retail or use of horses to be used
6exclusively for commercial racing activities and the sale at
7retail and use of feed, bedding, grooming supplies, riding
8tack, farrier services, portable stalls and sulkies for
9horses used exclusively for commercial racing activities.

10(16) The sale at retail to or use by a construction
11contractor of building machinery and equipment and services
12thereto that are:

13(i) transferred pursuant to a construction contract
14for any charitable organization, volunteer firemen's
15organization, volunteer firefighters' relief association,
16nonprofit educational institution or religious
17organization for religious purposes, provided that the
18building machinery and equipment and services thereto are
19not used in any unrelated trade or business; or

20(ii) transferred to the United States or the
21Commonwealth or its instrumentalities or political
22subdivisions.

23(17) The sale or use of used prebuilt housing.

24(18) The sale at retail to or use of food and
25nonalcoholic beverages by an airline which will transfer the
26food or nonalcoholic beverages to passengers in connection
27with the rendering of the airline service.

28(19) The sale at retail or use of separately stated fees
29paid pursuant to 13 Pa.C.S. § 9525 (relating to fees).

30(20) The sale at retail or use of investment metal

1bullion and investment coins. "Investment metal bullion"
2means any elementary precious metal which has been put
3through a process of smelting or refining, including, but not
4limited to, gold, silver, platinum and palladium, and which
5is in such state or condition that its value depends upon its
6content and not its form. "Investment metal bullion" does not
7include precious metal which has been assembled, fabricated,
8manufactured or processed in one or more specific and
9customary industrial, professional, aesthetic or artistic
10uses. "Investment coins" means numismatic coins or other
11forms of money and legal tender manufactured of gold, silver,
12platinum, palladium or other metal and of the United States
13or any foreign nation with a fair market value greater than
14any nominal value of such coins. "Investment coins" does not
15include jewelry or works of art made of coins, nor does it
16include commemorative medallions.

17CHAPTER 9

18(RESERVED)

19CHAPTER 11

20LIMITATIONS ON

21SCHOOL DISTRICT TAXATION

22Section 1101. Authority to levy taxes and effect of future
23Constitutional amendment.

24(a) Abrogating authority to impose certain taxes.--

25(1) The authority of any school district to levy, assess
26and collect any real property tax under the Public School
27Code of 1949, or any other act shall expire, subject to the
28provisions of section 1102, January 1, 2014.

29(2) The authority of a city of the first class to impose
30or continue to provide for the imposition or continuation of

1any tax, including, but not limited to, the real property
2tax, for the use of a school district of the first class
3shall expire in accordance with section 1102(b).

4(b) Collection of certain taxes unaffected.--The provisions
5of this section or any other provision of this act shall not
6prevent or interfere with any action of any school district to
7collect any tax owed by any taxpayer prior to the repeal of any
8law authorizing such tax after such law is repealed pursuant to
9this act.

10(c) Limitations on adoption of personal income taxes and
11earned income taxes authorized under Chapter 3.--A school
12district that adopts a personal income tax pursuant to Chapter 3
13may not adopt an earned income tax. A school district that
14adopts an earned income tax under Chapter 3 may not adopt a
15personal income tax.

16Section 1102. Transitional taxes.

17(a) Transitional taxes for school districts other than
18school districts of the first class.--Notwithstanding any other
19provision of the Public School Code of 1949 or any other law to
20the contrary:

21(1) Any school district, other than a school district of
22the first class, may continue to levy, assess and collect a
23real property tax for fiscal year 2013-2014.

24(2) For all fiscal years beginning after June 30, 2014,
25no school district shall have any power or authority to levy,
26assess and collect any real property tax, except as necessary
27to fund the annual debt service payments for its outstanding
28debt in existence on December 31, 2012.

29(b) Transitional taxes for school districts of the first
30class.--Notwithstanding any other provision of the Public School

1Code of 1949 or any other law to the contrary:

2(1) Any school district of the first class and city of
3the first class may continue to levy, assess and collect a
4real property tax and all other taxes in existence on July
531, 2013 at the rates in effect on that date for the use of a
6coterminous school district of the first class for fiscal
7year 2013-2014. The authority to levy, assess and collect
8such taxes for the use of coterminous school districts shall
9expire at midnight on December 31, 2013.

10(2) For all fiscal years beginning after June 30, 2013,
11no city of the first class shall have any power or authority
12to levy, assess and collect any of the taxes identified under
13paragraph (1) for school purposes, except as necessary to
14fund the annual debt service payments for its outstanding
15debt in existence on December 31, 2012.

16Section 1103. Consideration of State appropriations or
17reimbursements.

18The personal income or earned income tax levied shall not be
19invalidated by reason of the fact that in determining the amount
20to be raised by such tax no deduction was made for
21appropriations or reimbursements paid or payable by the
22Commonwealth to the school district.

23Section 1104. Taxes for cities and school districts of the
24first class.

25Notwithstanding any other provision of the Public School Code
26of 1949 or any other law to the contrary, nothing in this act
27shall be construed to limit or impair a city of the first class
28from levying, assessing or collecting any tax for municipal
29purposes or from increasing the millage for real estate taxes or
30revenues if the revenues derived from the real property tax are

1used solely for municipal purposes.

2CHAPTER 12

3INDEBTEDNESS

4Section 1201. Expiration of authority to issue debt.

5No school district, including a school district of the first 
6class, shall incur any electoral debt, lease rental debt or 
7nonelectoral debt under 53 Pa.C.S. Pt. VII Subpt. B after the 
8effective date of this section unless such debt is authorized 
9under Chapter 3 or any other law.

10Section 1202. Notices and reporting by school districts of debt
11outstanding.

12(a) Duties.--

13(1) Each school district, including a school district of
14the first class, shall identify the outstanding amount of all
15electoral debt, lease rental debt or nonelectoral debt
16incurred as of December 31, 2012.

17(2) On or before September 30, 2013, each school
18district, including a school district of the first class,
19shall certify and report to the Department of Revenue the
20outstanding amount of all electoral debt, lease rental debt
21or nonelectoral debt incurred as of December 31, 2012,
22together with any information requested by the department in
23order for the Commonwealth to comply with requirements of
24this section.

25(b) Audit by Department of Revenue.--

26(1) The Department of Revenue shall audit each report
27submitted under subsection (a) and shall certify the amount
28of each report and the total aggregate amount of all reports
29to the State Treasurer on or before March 31, 2014.

30(2) If the Department of Revenue disputes all or any

1portion of a report submitted under subsection (a), the
2department shall not include such amount in the certification
3to the State Treasurer and shall notify the school district
4in writing of the exclusion from the certification.

5CHAPTER 13

6FUNDING PROVISIONS

7Section 1301. Definitions.

8The following words and phrases when used in this chapter
9shall have the meanings given to them in this section unless the
10context clearly indicates otherwise:

11"Base revenue." The money a school district receives from
12school property taxes during fiscal year 2013-2014 less the
13amount necessary to fund the annual debt service payments for
14its outstanding debt in existence on December 31, 2012.

15"Cost of living factor." The lesser of:

16(1) the average annual percentage increase in the
17Consumer Price Index for All Urban Consumers (CPI-U) for the
18Pennsylvania, New Jersey and Maryland area for the preceding
19calendar year; or

20(2) the percentage increase in sales and use tax
21collected under section 702 from the previous calendar year.

22"Department." The Department of Education of the
23Commonwealth.

24"Fund." The Education Stabilization Fund established in
25section 1302.

26Section 1302. Education Stabilization Fund.

27(a) Establishment.--The Education Stabilization Fund is
28established as a separate fund in the State Treasury.

29(b) Sources.--The following are the sources of the fund:

30(1) Money collected by the department under:

1(i) section 401; or

2(ii) Chapter 7.

3(2) All revenue transferred to or received by the
4property tax relief fund under:

5(i) 4 Pa.C.S. § 1408(e) (relating to transfers from
6State Gaming Fund); and

7(ii) 4 Pa.C.S. § 1409 (relating to Property Tax
8Relief Fund).

9(3) Appropriations.

10(4) Return on money in the fund.

11(c) Use.--The department shall use the fund to make
12disbursements under section 1303.

13(d) Continuing appropriation.--The money of the fund is
14hereby continuously appropriated to the department as provided
15in this act. This appropriation shall not lapse at the end of
16any fiscal year.

17Section 1303. Standard disbursements to school districts from
18Education Stabilization Fund.

19(a) General rule.--In fiscal year 2014-2015, the department
20shall make disbursements to each school district as follows:

21(1) Ascertain base revenue.

22(2) Multiply:

23(i) the amount ascertained under paragraph (1); by

24(ii) the cost of living factor.

25(3) Divide:

26(i) the product under paragraph (2); by

27(ii) four.

28(4) Each quarter, disburse the quotient under paragraph
29(3).

30(b) Annual adjustment.--In fiscal year 2015-2016 and each

1fiscal year thereafter, the department shall make disbursements
2to each school district as follows:

3(1) Take the amount received in the prior fiscal year
4under this section.

5(2) Multiply:

6(i) the amount ascertained under paragraph (1); by

7(ii) the cost of living factor.

8(3) Divide:

9(i) the product under paragraph (2); by

10(ii) four.

11(4) Each quarter, disburse the quotient under paragraph
12(3).

13CHAPTER 15

14MISCELLANEOUS PROVISIONS

15Section 1501. Transitional provision.

16(a) Sales and use tax.--Notwithstanding the repeal of
17Article II of the Tax Reform Code of 1971, under section 1504,
18the department shall have the authority to enforce the
19collection of taxes imposed for transactions that occur prior to
20the effective date of this section under former Article II of
21the Tax Reform Code of 1971. The taxes collected after January
221, 2014, regardless of the transaction date, shall be deposited
23as provided in section 782.

24(b) Other taxes.--Notwithstanding the repeal of any
25provision of the Public School Code of 1949 or of any other law
26authorizing school districts to impose taxes, a governing body
27shall have the authority to enforce, after the effective date of
28the repeal, the collection of taxes levied and assessed under
29those former provisions prior to the effective date of the
30repeal under section 1504.

1Section 1502. Construction.

2Any and all references in any other act to Article II or any
3provision in Article II of the Tax Reform Code of 1971 shall be
4deemed a reference to Chapter 7 of this act or the corresponding
5provisions in Chapter 7 of this act.

6Section 1503. Severability.

7The provisions of this act are severable as follows:

8(1) If any provision of this act is held invalid, the
9invalidity shall not affect other provisions or applications
10of this act which can be given effect without the invalid
11provision or application.

12(2) Under no circumstances shall the invalidity of any
13provision or application of this act affect the validity of
14any provision in this act that abolishes the power of the
15governing body and any school district and city of the first
16class or any other political subdivision to levy, assess or
17collect a tax on any interest in real property for school
18purposes.

19Section 1504. Repeals.

20(a) Intent.--The General Assembly declares that the repeals
21under subsection (b) are necessary to effectuate this act.

22(b) Provisions.--The following acts and parts of acts are
23repealed:

24(1) Section 631 of the act of March 10, 1949 (P.L.30, 
25No.14), known as the Public School Code of 1949, is repealed.

26(2) Any provision of the Public School Code of 1949 and
27of any other law relating to the authority of any school
28district to levy, assess and collect any tax on real property
29and the power of any city of the first class to levy, assess
30and collect any tax real property for school purposes is

1repealed upon the expiration of the respective schedule
2prescribed in sections 1101 and 1102.

3(3) Any provision of the act of the Public School Code
4of 1949 and any other law relating to debt is repealed to the
5extent that it is inconsistent with this act.

6(4) Any provision of the Public School Code of 1949 and
7any home rule charter adopted pursuant thereto is repealed
8insofar as it is inconsistent with this act.

9(5) Any provision of the act of August 9, 1963 (P.L.643, 
10No.341), known as the First Class City Public Education Home 
11Rule Act, and any home rule school district charter adopted 
12pursuant thereto is repealed insofar as it is inconsistent 
13with this act.

14(6) Article II of the act of March 4, 1971 (P.L.6, 
15No.2), known as the Tax Reform Code of 1971, is repealed.

16(7) All acts and parts of acts that are inconsistent
17with this act are repealed to the extent of such
18inconsistency.

19Section 1505. Applicability.

20Section 1504(b)(6) and Chapter 7 shall apply January 1, 2014.

21Section 1506. Effective date.

22This act shall take effect as follows:

23(1) Section 1504(b)(2) and (7) and Chapters 3 and 4
24shall take effect January 1, 2014.

25(2) The remainder of this act shall take effect
26immediately.