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PRINTER'S NO. 64
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
85
Session of
2017
INTRODUCED BY GREENLEAF, VULAKOVICH, SCARNATI, COSTA,
McGARRIGLE, SCHWANK, RAFFERTY AND BREWSTER, JANUARY 13, 2017
REFERRED TO FINANCE, JANUARY 13, 2017
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in sales and use tax, further providing for
definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 201(k)(8) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
July 13, 2016 (P.L.526, No.84), is amended and the section is
amended by adding clauses to read:
Section 201. Definitions.--The following words, terms and
phrases when used in this Article II shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
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(k) "Sale at retail."
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(8) Any retention of possession, custody or a license to use
or consume tangible personal property or any further obtaining
of services described in subclauses (2), (3) and (4) of this
clause pursuant to a rental or service contract or other
arrangement (other than as security).
The term "sale at retail" shall not include (i) any such
transfer of tangible personal property or rendition of services
for the purpose of resale, including resale of items purchased
for resale by schools, school-related organizations and
nonprofit associations supporting or sponsoring sports programs,
or (ii) such rendition of services or the transfer of tangible
personal property including, but not limited to, machinery and
equipment and parts therefor and supplies to be used or consumed
by the purchaser directly in the operations of--
(A) The manufacture of tangible personal property.
(B) Farming, dairying, agriculture, timbering, horticulture
or floriculture when engaged in as a business enterprise. The
term "farming" shall include the propagation and raising of
ranch raised fur-bearing animals and the propagation of game
birds for commercial purposes by holders of propagation permits
issued under 34 Pa.C.S. (relating to game) and the propagation
and raising of horses to be used exclusively for commercial
racing activities. The term "timbering" shall include:
(1) The business of producing or harvesting trees from
forests, woodlots or tree farms for the purpose of the
commercial production of wood, paper or energy products derived
from wood by a company primarily engaged in the business of
harvesting trees.
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(2) All operations prior to the transport of the harvested
product necessary for the removal of timber or forest products
from the site, in-field processing of trees into logs or chips,
complying with environmental protection and safety requirements
applicable to the harvesting of forest products, loading of
forest products onto highway vehicles for transport to storage
or processing facilities and postharvesting site reclamation,
including those activities necessary to improve timber growth or
ensure natural or direct reforestation of the site. The term
shall not include the harvesting of trees for clearing land for
access roads.
(C) The producing, delivering or rendering of a public
utility service, or in constructing, reconstructing, remodeling,
repairing or maintaining the facilities which are directly used
in producing, delivering or rendering such service.
(D) Processing as defined in clause (d) of this section.
The exclusions provided in paragraphs (A), (B), (C) and (D)
shall not apply to any vehicle required to be registered under
The Vehicle Code, except those vehicles used directly by a
public utility engaged in business as a common carrier; to
maintenance facilities; or to materials, supplies or equipment
to be used or consumed in the construction, reconstruction,
remodeling, repair or maintenance of real estate other than
directly used machinery, equipment, parts or foundations
therefor that may be affixed to such real estate.
The exclusions provided in paragraphs (A), (B), (C) and (D)
shall not apply to tangible personal property or services to be
used or consumed in managerial sales or other nonoperational
activities, nor to the purchase or use of tangible personal
property or services by any person other than the person
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directly using the same in the operations described in
paragraphs (A), (B), (C) and (D) herein.
The exclusion provided in paragraph (C) shall not apply to
(i) construction materials, supplies or equipment used to
construct, reconstruct, remodel, repair or maintain facilities
not used directly by the purchaser in the production, delivering
or rendition of public utility service, (ii) construction
materials, supplies or equipment used to construct, reconstruct,
remodel, repair or maintain a building, road or similar
structure, or (iii) tools and equipment used but not installed
in the maintenance of facilities used directly in the
production, delivering or rendition of a public utility service.
The exclusions provided in paragraphs (A), (B), (C) and (D)
shall not apply to the services enumerated in clauses (k)(11)
through (18) and (w) through (kk), except that the exclusion
provided in this subclause for farming, dairying and agriculture
shall apply to the service enumerated in clause (z).
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(eee) "Nonprofit association." An entity that is organized
as a nonprofit corporation or nonprofit unincorporated
association under the laws of this Commonwealth or the United
States or any entity which is authorized to do business in this
Commonwealth as a nonprofit corporation or unincorporated
association under the laws of this Commonwealth, including, but
not limited to, youth or athletic associations, volunteer fire,
ambulance, religious, charitable, fraternal, veterans, civic,
county fair or agricultural associations, or any separately
chartered auxiliary of the foregoing, if organized and operated
on a nonprofit basis.
(fff) "Sports program." Baseball, softball, football,
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basketball, soccer and any other competitive sport formally
recognized as a sport by the United States Olympic Committee as
specified by and under the jurisdiction of the Amateur Sports
Act of 1978 (Public Law 95-606, 36 U.S.C. ยง 220501 et seq.), the
Amateur Athletic Union or the National Collegiate Athletic
Association. The term shall be limited to a program or that
portion of a program that is organized for recreational purposes
and whose activities are substantially for such purposes and
which is primarily for participants who are 18 years of age or
younger or whose 19th birthday occurs during the year of
participation or the competitive season, whichever is longer.
There shall be, however, no age limitation for programs operated
for persons with disabilities.
Section 2. This act shall take effect in 60 days.
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