S1412B2141A08065       RLE:JSL 06/25/08    #90             A08065
                       AMENDMENTS TO SENATE BILL NO. 1412
                                    Sponsor:  SENATOR PIPPY
                                           Printer's No. 2141

     1       Amend Title, page 1, line 19, by inserting after "TAXES"
     2    where it appears the first time
     3               , local sales and use tax

     4       Amend Sec. 1 (Sec. 103), page 2, line 10, by striking out
     5    "ZONE" and inserting
     6               parcel

     7       Amend Sec. 2 (Sec. 301.3), page 2, line 23, by striking out
     8    "FOR EXTENSION OF" and inserting
     9               to extend

    10       Amend Sec. 2 (Sec. 301.3), page 2, line 24, by striking out
    11    "SECTION" and inserting
    12               act
    13       Amend Sec. 2 (Sec. 301.3), page 2, line 30; page 3, lines 1
    14    and 2, by striking out "THE" where it appears third time in line
    15    30, page 2, and all of lines 1 and 2, page 3
     1       Amend Sec. 2 (Sec. 301.3), page 3, lines 8 and 9, by striking
     2    out "THE EXTENSION MAY NOT BE APPROVED FOR A PARCEL THAT" in
     3    line 8 and all of line 9
     4       Amend Sec. 2 (Sec. 301.3), page 3, line 11, by inserting
     5    after "SECTION"
     6               , except exemptions for sales and use tax under
     7               section 511(a) or 705(a),


     8       Amend Sec. 2 (Sec. 301.3), page 3, line 22, by striking out

     1    "In" and inserting
     2               Except as provided in subsection (d), in

     3       Amend Sec. 2 (Sec. 301.3), page 3, line 25, by striking out
     4    "July 31," and inserting
     5               June 30,
     6       Amend Sec. 2 (Sec. 301.3), page 5, line 5, by inserting after
     7    "zone."
     8               The department shall certify the delay in the
     9               expiration by December 31, 2008.

    10       Amend Sec. 2 (Sec. 301.3), page 5, lines 7 and 8, by striking
    11    out "under subsection (a)" and inserting
    12    pursuant to subsection (c), provided that the application shall
    13    be submitted by May 1, 2009, and approved by the department no
    14    later than June 30, 2009


    15       Amend Sec. 2 (Sec. 301.3), page 5, line 8, by striking out
    16    "(a)" and inserting
    17               (c)

    18       Amend Sec. 2 (Sec. 301.3), page 5, line 24, by striking out
    19    "UNDER SUBSECTION (C)"

    20       Amend Sec. 2 (Sec. 301.4), page 5, line 28, by striking out
    21    ", by December 31, 2009,"


    22       Amend Sec. 2 (Sec. 301.4), page 6, line 25, by striking out
    23    "part" and inserting
    24               act, except exemptions for sales and use tax under
    25               section 511(a) or 705(a),

    26       Amend Sec. 2 (Sec. 301.4), page 6, line 27, by inserting
    27    after "2020."
    28               Exemptions for sales and use taxes under sections 511
    29               and 705 shall commence upon designation of the zone
    30               by the department.

    31       Amend Sec. 2 (Sec. 301.4), page 7, line 2, by striking out
    32    "(2), (3), (5)" and inserting

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     1               (2)(i) and (ix)
     2       Amend Sec. 2 (Sec. 301.4), page 7, lines 5 and 6, by striking
     3    out "adopting the extension of all" and inserting
     4               providing the
     5       Amend Sec. 2, page 7, by inserting between lines 19 and 20
     6    Section 301.5.  Expansion for new parcels.
     7       (a)  Expansion.--A political subdivision or its designee may
     8    apply for an expansion to add up to 15 acres of deteriorated
     9    property to an existing keystone opportunity expansion zone,
    10    keystone opportunity improvement zone or a subzone of a keystone
    11    opportunity zone for parcels that are contiguous to the existing
    12    zone or subzone.
    13       (b)  Application.--In order to receive a designation under
    14    this section, the department must receive an application from a
    15    political subdivision or its designee no later than December 31,
    16    2008. The application must contain the information required
    17    under section 302(a)(1), (2)(i) and (ix), (5) and (6). The
    18    application must include all ordinances, resolutions or other
    19    required action adopted by all political subdivisions in which
    20    the keystone opportunity expansion zone, keystone opportunity
    21    improvement zone or a subzone of a keystone opportunity zone is
    22    located adopting all tax exemptions, deductions, abatements and
    23    credits authorized under Chapter 7 to the expanded area. The
    24    department, in consultation with the Department of Revenue,
    25    shall review the application and, if approved, issue a
    26    certification of all tax exemptions, deductions, abatements or
    27    credits under this act for the expansion authorized under
    28    subsection (a) within two months of the receipt of the
    29    application.
    30       (c)  Applications for certain zones.--For a keystone
    31    opportunity zone that expires December 31, 2008, but is seeking
    32    an extension under section 301.3, the application shall include
    33    the request for an expansion under subsection (a). The
    34    application must be submitted by December 31, 2008, and include
    35    all ordinances, resolutions or other required action from all
    36    affected political subdivisions approving the addition of the
    37    acreage. If the expiration of a keystone opportunity zone is
    38    delayed under this subsection, a political subdivision or its
    39    designee may apply for an extension under 301.3 and an expansion
    40    under this section. If an extension is granted under section
    41    301.3, the extension and the expansion shall be deemed to be
    42    effective January 1, 2009.
    43       (d)  Authorization.--Persons or businesses within the
    44    expanded area shall be entitled to all tax exemptions,
    45    deductions, abatements or credits set forth under this part,
    46    except for sales and use taxes under section 511(a) or 705(a),
    47    for the period set forth in subsection (e). Exemptions for sales
    48    and use taxes under sections 511 and 705 shall commence upon
    49    approval of the expansion by the department.
    50       (e)  Expiration.--All expansions under this section shall
    51    expire on the same date as the keystone opportunity expansion
    52    zone, keystone opportunity improvement zone or subzone of a
    53    keystone opportunity zone.


    54       Amend Sec. 2 (Sec. 301.5), page 7, line 20, by striking out
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     1    "301.5" and inserting
     2               301.6
     3       Amend Sec. 3 (Sec. 511), page 11, lines 18 and 19, by
     4    striking out ", LANDOWNER OR LESSEE or the construction
     5    contractor
     6       Amend Bill, page 14, line 1, by striking out all of said line
     7    and inserting
     8       Section 6.  Section 705 of the act, amended December 9, 2002
     9    (P.L.1727, No.217), is amended to read:
    10    Section 705.  Local sales and use tax.
    11       (a)  General rule.--The political subdivision shall exempt
    12    sales at retail of services or tangible personal property,
    13    except motor vehicles, to a qualified business or a construction
    14    contractor pursuant to a construction contract with a qualified
    15    business, landowner or lessee for the exclusive use, consumption
    16    and utilization of the tangible personal property or service by
    17    the qualified business at [its] the qualified business's,
    18    landowner's or lessee's facility located within a subzone,
    19    improvement subzone or expansion subzone from a city or county
    20    tax on purchase price authorized under Article XXXI-B of the act
    21    of July 28, 1953 (P.L.723, No.230), known as the Second Class
    22    County Code, as amended, and the act of June 5, 1991 (P.L.9,
    23    No.6), known as the Pennsylvania Intergovernmental Cooperation
    24    Authority Act for Cities of the First Class, as amended. No
    25    exemption may be granted for sales occurring prior to
    26    designation of the real property as part of a subzone or
    27    expansion subzone.
    28       (b)  [Construction contracts.--For any construction contract
    29    performed in a subzone, improvement subzone or expansion
    30    subzone, the exemption provided in subsection (a) shall only
    31    apply to the sale at retail or use of building machinery and
    32    equipment to a qualified business, or to a construction
    33    contractor pursuant to a construction contract with a qualified
    34    business, for the exclusive use, consumption and utilization by
    35    the qualified business at its facility in a subzone, improvement
    36    subzone or expansion subzone. For the purposes of the subzone,
    37    improvement subzone or expansion subzone exemption, building
    38    machinery and equipment shall include distribution equipment
    39    purchased for the exclusive use, consumption and utilization in

    40    a subzone, improvement subzone or expansion subzone facility.]
    41    (Reserved).
    42       (c)  Definition.--Sales at retail of tangible personal
    43    property and services shall be defined in accordance with
    44    Article II of the Tax Reform Code of 1971.
    45       Section 7.  The amendment of sections 515 and

    46       Amend Sec. 7, page 14, line 4, by striking out "7" and
    47    inserting
    48               8

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