H0377B2849A04949       JKL:DHB 12/07/07    #90             A04949
                        AMENDMENTS TO HOUSE BILL NO. 377
                                    Sponsor:  REPRESENTATIVE ELLIS
                                           Printer's No. 2849

     1       Amend Title, page 1, line 10, by inserting after
     2    "penalties,""
     3               further providing, in sales and use tax, for the
     4               definition of "tangible personal property"; and

     5       Amend Bill, page 1, lines 14 through 16, by striking out all
     6    of said lines and inserting
     7       Section 1.  Section 201(m) of the act of March 4, 1971
     8    (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
     9    24, 2000 (P.L.106, No.23), is amended to read:
    10       Section 201.  Definitions.--The following words, terms and
    11    phrases when used in this Article II shall have the meaning
    12    ascribed to them in this section, except where the context
    13    clearly indicates a different meaning:
    14       * * *
    15       (m)  "Tangible personal property."
    16       (1)  Corporeal personal property including, but not limited
    17    to, goods, wares, merchandise, steam and natural and
    18    manufactured and bottled gas for non-residential use,
    19    electricity for non-residential use, prepaid telecommunications,
    20    premium cable or premium video programming service, spirituous
    21    or vinous liquor and malt or brewed beverages and soft drinks,
    22    interstate telecommunications service originating or terminating
    23    in the Commonwealth and charged to a service address in this
    24    Commonwealth, intrastate telecommunications service with the
    25    exception of (i) subscriber line charges and basic local
    26    telephone service for residential use and (ii) charges for
    27    telephone calls paid for by inserting money into a telephone
    28    accepting direct deposits of money to operate, provided further,
    29    the service address of any intrastate telecommunications service
    30    is deemed to be within this Commonwealth or within a political
    31    subdivision, regardless of how or where billed or paid. In the
    32    case of any such interstate or intrastate telecommunications
    33    service, any charge paid through a credit or payment mechanism
    34    which does not relate to a service address, such as a bank,
    35    travel, credit or debit card, but not including prepaid
    36    telecommunications, is deemed attributable to the address of
    37    origination of the telecommunications service. The term shall
    38    not include computer software, other than prewritten computer
    39    software delivered to the purchaser by tangible storage media.

     1       (2)  For the purposes of this clause, the following words and
     2    phrases shall have the meanings given to them in this subclause:
     3       "Computer software."  A set of coded instructions designed to
     4    cause a computer or automatic data processing equipment to
     5    perform a task.
     6       "Prewritten computer software."  The term shall have the same
     7    meaning as "computer software," including prewritten upgrades,
     8    which is not designed and developed by the author or other
     9    creator to the specifications of a specific purchaser. The
    10    combining of two or more prewritten computer software programs
    11    or prewritten portions of the program does not cause the
    12    combination to be other than prewritten computer software. The
    13    term includes software designed and developed by the author or
    14    other creator to the specifications of a specific purchaser when
    15    it is sold to a person other than the specific purchaser. Where
    16    a person modifies or enhances computer software of which the
    17    person is not the author or creator, the person shall be deemed
    18    to be the author or creator only of the person's modifications
    19    or enhancements. Prewritten computer software or a prewritten
    20    portion of prewritten computer software that is modified or
    21    enhanced to any degree, where the modification or enhancement is
    22    designed and developed to the specifications of a specific
    23    purchaser, remains prewritten computer software except that
    24    where there is a reasonable, separately stated charge, invoice
    25    or other statement of the price given to the purchaser for the
    26    modification or enhancement, the modification or enhancement
    27    shall not constitute prewritten computer software.
    28       * * *
    29       Section 1.1.  The act is amended by adding a section to read:

    30       Amend Sec. 2, page 2, line 27, by striking out "immediately"
    31    and inserting
    32               July 1, 2008

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