H0377B2849A04943       JKL:DHB 12/07/07    #90             A04943
                        AMENDMENTS TO HOUSE BILL NO. 377
                                    Sponsor:  REPRESENTATIVE SCAVELLO
                                           Printer's No. 2849

     1       Amend Title, page 1, line 11, by removing the period after
     2    "poverty" and inserting
     3               ; further providing, in gross receipts tax, for the
     4               imposition of tax; and making a related repeal.

     5       Amend Bill, page 2, line 27, by striking out all of said line
     6    and inserting
     7       Section 2.  Section 1101(a), (a.1) and (j) of the act,
     8    amended or added December 23, 2003 (P.L.250, No.46), are amended
     9    to read:
    10       Section 1101.  Imposition of Tax.--(a)  General Rule.--Every
    11    pipeline company, conduit company, steamboat company, canal
    12    company, slack water navigation company, transportation company,
    13    and every other company, association, joint-stock association,
    14    or limited partnership, now or hereafter incorporated or
    15    organized by or under any law of this Commonwealth, or now or
    16    hereafter organized or incorporated by any other state or by the
    17    United States or any foreign government, and doing business in
    18    this Commonwealth, and every copartnership, person or persons
    19    owning, operating or leasing to or from another corporation,
    20    company, association, joint-stock association, limited
    21    partnership, copartnership, person or persons, any pipeline,
    22    conduit, steamboat, canal, slack water navigation, or other
    23    device for the transportation of freight, passengers, baggage,
    24    or oil, except motor vehicles and railroads, and every limited
    25    partnership, association, joint-stock association, corporation
    26    or company engaged in, or hereafter engaged in, the
    27    transportation of freight or oil within this State, and every
    28    telephone company , telegraph company or provider of mobile
    29    telecommunications services now or hereafter incorporated or
    30    organized by or under any law of this Commonwealth, or now or
    31    hereafter organized or incorporated by any other state or by the
    32    United States or any foreign government and doing business in
    33    this Commonwealth, and every limited partnership, association,
    34    joint-stock association, copartnership, person or persons,
    35    engaged in telephone or telegraph business or providing mobile
    36    telecommunications services in this Commonwealth, shall pay to
    37    the State Treasurer, through the Department of Revenue, a tax of
    38    forty-five mills with a surtax equal to five mills upon each
    39    dollar of the gross receipts of the corporation, company or


     1    association, limited partnership, joint-stock association,
     2    copartnership, person or persons, received from:
     3       (1)  passengers, baggage, oil and freight transported wholly
     4    within this State;
     5       (2)  telegraph or telephone messages transmitted wholly
     6    within this State and telegraph or telephone messages
     7    transmitted in interstate commerce after December 31, 2003, and
     8    before January 1, 2008, where such messages originate or
     9    terminate in this State and the charges for such messages are
    10    billed to a service address in this State, except gross receipts
    11    derived from:
    12       (i)  the sales of access to the Internet, as set forth in
    13    Article II, made to the ultimate consumer; and
    14       (ii)  the sales for resale to persons, partnerships,
    15    associations, corporations or political subdivisions subject to
    16    the tax imposed by this article upon gross receipts derived from
    17    such resale of telecommunications services, including:
    18       (A)  telecommunications exchange access to interconnect with
    19    a local exchange carrier's network;
    20       (B)  network elements on an unbundled basis; and
    21       (C)  sales of telecommunications services to interconnect
    22    with providers of mobile telecommunications services; and
    23       (3)  mobile telecommunications services messages sourced to
    24    this Commonwealth after December 31, 2003, and before January 1,
    25    2008, based on the place of primary use standard set forth in
    26    the Mobile Telecommunications Sourcing Act (4 U.S.C. § 117),
    27    except gross receipts derived from:
    28       (i)  the sales of access to the Internet, as set forth in
    29    Article II, made to the ultimate consumer; and
    30       (ii)  the sales for resale to persons, partnerships,
    31    associations, corporations or political subdivisions subject to
    32    the tax imposed by this article upon gross receipts derived from
    33    such resale of mobile telecommunications services, including
    34    sales of mobile telecommunications services to interconnect with
    35    providers of telecommunications services.
    36       (a.1)  Credit.--Telegraph or telephone companies or providers
    37    of mobile telecommunications services that pay a gross receipts
    38    tax to another state on messages or services after December 31,
    39    2003, and before January 1, 2008, which are taxable under this
    40    article are entitled to a credit against the tax due under this
    41    article. The credit allowed with respect to the messages or
    42    services shall not exceed the tax under this article with
    43    respect to the messages or services.
    44       * * *
    45       (j)  Schedule for Estimated Payments.--
    46       (1)  For calendar year 2004, the following schedule applies
    47    to the payment of the tax under subsection(a)(3):
    48       (i)  Forty per cent of the estimated tax shall be due on
    49    March 15, 2004.
    50       (ii)  Forty per cent of the estimated tax shall be due on
    51    June 15, 2004.
    52       (iii)  Twenty per cent of the estimated tax shall be due on
    53    September 15, 2004.
    54       (2)  For calendar [years after 2004] year 2007, the payment
    55    of the estimated tax under subsection (a)(3) shall be due in
    56    accordance with section 3003.2.
    57       (3)  This subsection shall expire January 1, 2008.
    58       * * *
    59       Section 3.  Repeals are as follows:

    HB0377A04943                     - 2 -     

     1           (1)  The General Assembly declares that the repeal under
     2       paragraph (2) is necessary to effectuate the purposes of this
     3       act.
     4           (2)  Section 33(12) of the act of December 23, 2003
     5       (P.L.250, No.46), entitled "An act Amending the act of March
     6       4, 1971 (P.L.6, No.2), entitled 'An act relating to tax
     7       reform and State taxation by codifying and enumerating
     8       certain subjects of taxation and imposing taxes thereon;
     9       providing procedures for the payment, collection,
    10       administration and enforcement thereof; providing for tax
    11       credits in certain cases; conferring powers and imposing
    12       duties upon the Department of Revenue, certain employers,
    13       fiduciaries, individuals, persons, corporations and other
    14       entities; prescribing crimes, offenses and penalties,'
    15       further providing, in sales and use tax, for definitions, for
    16       exclusions, for credits, for licenses and for transfers to
    17       Public Transportation Assistance Fund; further providing, in
    18       personal income tax, for definitions, for imposition, for
    19       special tax provisions for poverty, for returns and liability
    20       and for returns and records; further providing, in corporate
    21       net income tax, for definitions and for interests in
    22       unincorporated entities; providing, in corporate net income
    23       tax, for additional withholding requirements; further
    24       providing, in capital stock franchise tax, for definitions
    25       and reports, for imposition and for expiration; further
    26       providing, in utilities gross receipts tax, for imposition;
    27       further providing, in public utility realty tax, for
    28       surcharges; providing, in public utility realty tax, for
    29       additional tax; further providing, in cigarette tax, for
    30       incidence and rate of tax, for floor tax, for stamp to
    31       evidence the tax and for commissions on sales; establishing,
    32       in relation to cigarette tax, the Health Care Provider
    33       Retention Account; further providing, in research and
    34       development tax credit, for carryover, for limitations and
    35       for reports; further providing, in malt beverage tax, for
    36       limited tax credits; further providing, in inheritance tax,
    37       for definitions, for exempt transfers, for estate tax and for
    38       estate tax returns; further providing for the Public
    39       Transportation Assistance Fund and providing for its
    40       administration; further providing for estimated tax and for
    41       underpayment of estimated tax; providing for authority to
    42       attach wages; and repealing provisions relating to the Public
    43       Transportation Assistance Fund," is repealed.
    44       Section 4.  This act shall take effect July 1, 2008.






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