PRIOR PRINTER'S NO. 1937 PRINTER'S NO. 2141
No. 1658 Session of 1981
INTRODUCED BY WILSON, DOMBROWSKI, CORNELL, BOWSER, POTT, LUCYK,
McVERRY, NAHILL AND PENDLETON, JUNE 17, 1981
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, SEPTEMBER 14, 1981
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for licensed sales tax agents for <--
11 vehicles. MAKING FURTHER PROVISION FOR COLLECTION OF TAX ON <--
12 VEHICLES.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Subsection (a) of section 205, act of March 4,
16 1971 (P.L.6, No.2), known as the "Tax Reform Code of 1971,"
17 amended June 9, 1978 (P.L.463, No.62), is amended to read:
18 Section 205. Alternate Imposition of Tax; Credits.--(a) If
19 any person actively and principally engaged in the business of
20 selling new or used motor vehicles, trailers or semi-trailers,
21 and registered with the [department] Department of
22 Transportation in the "dealer's class," acquires a motor
1 vehicle, trailer or semi-trailer for the purpose of resale, and
2 prior to such resale, uses the motor vehicle, trailer or semi-
3 trailer for a taxable use under this act during a period not
4 exceeding one year from the date of acquisition to the date of
5 resale, such person may, upon notice to the department within
6 ten days of the commencement of such use, elect to pay a tax
7 equal to six per cent of the fair rental value of the motor
8 vehicle, trailer or semi-trailer during such use. Should such
9 motor vehicle, trailer or semi-trailer be used for a taxable use
10 after a period of one year, the taxpayer shall be liable for a
11 tax on the fair market value of such motor vehicle, trailer or
12 semi-trailer at the time of acquisition, but shall be allowed a
13 credit equal to the tax paid pursuant to the election provided
14 for in this section. This section shall not apply to the use of
15 a vehicle as a wrecker, parts truck, delivery truck or courtesy
16 car.
17 * * *
18 Section 2. Section 208 of the act, amended September 9, 1971
19 (P.L.437, No.105), is amended to read:
20 Section 208. Licenses.--(a) Every person maintaining a place
21 of business in this Commonwealth, selling or leasing services or
22 tangible personal property, the sale or use of which is subject
23 to tax and who has not hitherto obtained a license from the
24 department or who desires to collect tax upon the sale or use of <--
25 vehicles in the manner provided by this section, shall prior to
26 the beginning of business or the collection of tax thereafter,
27 make application to the department, on a form prescribed by the
28 department, for a license. If such person maintains more than
29 one place of business in this Commonwealth, the license shall be
30 issued for the principal place of business in this Commonwealth.
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1 (b) The department shall, after the receipt of an
2 application, issue the license applied for under subsection (a)
3 of this section. The license shall be nonassignable and of
4 permanent duration.
5 (c) Any person who, upon the expiration of sixty days after
6 the effective date of this article, shall maintain a place of
7 business in this Commonwealth for the purpose of selling or
8 leasing services or tangible personal property, the sale or use
9 of which is subject to tax, or who shall collect tax under color
10 of this section, without having first been licensed by the
11 department, shall be guilty of a summary offense, and upon
12 conviction thereof in a summary proceeding, shall be sentenced
13 to pay a fine of not less than one hundred dollars ($100) nor
14 more than three hundred dollars ($300), and in default thereof,
15 to undergo imprisonment of not less than five days nor more than
16 thirty days. The penalties imposed by this section shall be in
17 addition to any other penalties imposed by this article.
18 (d) Failure of any person to obtain a license shall not
19 relieve him of liability to pay the tax imposed by this article.
20 Section 3. Section 227 of the act is amended to read:
21 Section 227. Discount.--[If] EXCEPT WITH RESPECT TO TAXES <--
22 COLLECTED UNDER COLOR OF SECTION 238(B) OF THIS ARTICLE, IF a
23 return is filed by a licensee (not including a licensed sales <--
24 tax agent under the provisions of section 238) and the tax shown
25 to be due thereon less any discount is paid all within the time
26 prescribed, the licensee shall be entitled to credit and apply
27 against the tax payable by him a discount of one per cent of the
28 amount of the tax collected by him on and after the effective
29 date of this article, as compensation for the expense of
30 collecting and remitting the same and as a consideration of the
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1 prompt payment thereof.
2 Section 4. Clause (1) of subsection (b) of section 237 and
3 section 238 of the act, amended December 28, 1972 (P.L.1633,
4 No.340), are amended to read:
5 Section 237. Collection of Tax.--* * *
6 (b) Collection by Persons Maintaining a Place of Business in
7 the Commonwealth. (1) Every person maintaining a place of
8 business in this Commonwealth and selling or leasing tangible
9 personal property or services, including the selling or leasing
10 as tangible personal property mobilehomes as defined in "The
11 Vehicle Code" whether or not a certificate of title is issued by
12 the [department] Department of Transportation, the sale or use
13 of which is subject to tax shall collect the tax from the
14 purchaser or lessee at the time of making the sale or lease, and
15 shall remit the tax to the department.
16 * * *
17 Section 238. Collection of Tax on [Motor] Vehicles[,
18 Trailers and Semi-Trailers].--
19 (1) [Notwithstanding the provisions of clause (1) of <--
20 subsection (b) of section 237 of this article, tax due on the
21 sale at retail or use of a [motor] vehicle[, trailer or semi- <--
22 trailer, except mobilehomes as defined in "The Vehicle Code,"] <--
23 required by law to be [registered with] titled by the <--
24 [department] Department of Transportation under the provisions <--
25 of "The Vehicle Code" shall be paid by the purchaser or user
26 within ten days of the date of purchase or taxable use directly <--
27 to the [department upon application to the department] <--
28 Commonwealth upon application to the Department of
29 Transportation for an issuance of a certificate of title upon
30 such [motor] vehicle[, trailer or semi-trailer]. The department <--
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1 shall not issue a certificate of title until the tax has been
2 paid, or evidence satisfactory to the [department] Commonwealth <--
3 has been given to establish that tax is not due. [The department <--
4 may cancel or suspend any record of certificate of title or
5 registration of a motor vehicle, trailer or semi-trailer when
6 the check received in payment of the tax on such vehicle is not
7 paid upon demand. Such] Unpaid tax shall be considered as a <--
8 first encumbrance against such vehicle and the vehicle may not
9 be transferred without first payment in full of such tax and any
10 interest, additions or penalties which shall accrue thereon in
11 accordance with this article.] <--
12 (2) (i) A person licensed as a motor vehicle or mobilehome <--
13 dealer by the State Board of Motor Vehicle Manufacturers,
14 Dealers and Salesmen of the Department of State under the
15 provisions of the act of September 9, 1965 (P.L.499, No.254),
16 known as the "Motor Vehicle Manufacturer's, Dealer's and
17 Salesmen's License Act," or as an authorized messenger service
18 by the Department of Transportation under the provisions of
19 75Pa.C.S. § 7501 (relating to authorization of messenger
20 service), or as a sales finance company or bank licensed under
21 the provisions of the act of June 28, 1947 (P.L.1110, No.476),
22 known as the "Motor Vehicle Sales Finance Act," by the
23 Department of Transportation, is hereby authorized, subject to
24 the provisions of this section and the rules and regulations
25 promulgated thereunder, to register with the Commonwealth as a
26 licensed sales tax agent, and to collect on behalf of the
27 Commonwealth tax and fees due and payable upon the sale or use
28 and transfer of any new or used vehicle.
29 (ii) Each such collection of tax and fees shall be evidenced
30 by the issuance to the taxpayer of an official receipt upon a
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1 form furnished by the Commonwealth. Production by the taxpayer
2 of a valid official receipt for such payment shall be
3 presumptive evidence of the time and amount of the payment set
4 forth thereon.
5 (iii) Tax and fees collected and receipted for by licensed
6 sales tax agent under this section shall be remitted by the
7 collector to the Commonwealth within ten days of the date of
8 purchase if the collector is the seller, and in all other cases,
9 within ten days of the date of collection thereof by the agent
10 from the taxpayer, together with a copy of the official receipt
11 and such other reports or documents as the Commonwealth may
12 prescribe.
13 (A) PAYMENT DIRECTLY TO THE COMMONWEALTH.--NOTWITHSTANDING <--
14 THE PROVISIONS OF CLAUSE (1) OF SUBSECTION (B) OF SECTION 237 OF
15 THIS ARTICLE, AND EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS
16 SECTION, TAX DUE ON THE SALE AT RETAIL OR USE OF A VEHICLE
17 REQUIRED BY LAW TO BE TITLED BY THE DEPARTMENT OF TRANSPORTATION
18 UNDER THE PROVISIONS OF TITLE 75 OF THE PENNSYLVANIA
19 CONSOLIDATED STATUTES (RELATING TO VEHICLES) SHALL BE PAID BY
20 THE PURCHASER OR USER WITHIN TEN DAYS OF THE DATE OF PURCHASE OR
21 TAXABLE USE DIRECTLY TO THE COMMONWEALTH UPON APPLICATION TO THE
22 DEPARTMENT OF TRANSPORTATION FOR AN ISSUANCE OF A CERTIFICATE OF
23 TITLE UPON SUCH VEHICLE. THE DEPARTMENT OF TRANSPORTATION SHALL
24 NOT ISSUE A CERTIFICATE OF TITLE UNTIL THE TAX HAS BEEN PAID OR
25 EVIDENCE SATISFACTORY TO THE COMMONWEALTH HAS BEEN GIVEN TO
26 ESTABLISH THAT TAX IS NOT DUE. UNPAID TAX SHALL BE A FIRST
27 ENCUMBRANCE AGAINST SUCH VEHICLE AND THE VEHICLE MAY NOT BE
28 TRANSFERRED WITHOUT FIRST PAYMENT IN FULL OF THE TAX, INTEREST,
29 ADDITIONS OR PENALTIES WHICH SHALL ACCRUE THEREON IN ACCORDANCE
30 WITH THIS ARTICLE.
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1 (B) COLLECTION BY DEALERS AND OTHER AUTHORIZED PERSONS.--(1)
2 A MANUFACTURER OR DEALER LICENSED BY THE STATE BOARD OF MOTOR
3 VEHICLE MANUFACTURERS, DEALERS AND SALESMEN OF THE DEPARTMENT OF
4 STATE UNDER THE PROVISIONS OF THE ACT OF SEPTEMBER 9, 1965
5 (P.L.499, NO.254), KNOWN AS THE "MOTOR VEHICLE MANUFACTURER'S,
6 DEALER'S AND SALESMEN'S LICENSE ACT," OR A MANUFACTURER OR
7 DEALER, NOT REGULATED BY THE STATE BOARD OF MOTOR VEHICLE
8 MANUFACTURERS, DEALERS AND SALESMEN BECAUSE OF THE TYPE OF
9 VEHICLES MANUFACTURED OR SOLD, WHICH THE DEPARTMENT OF
10 TRANSPORTATION CERTIFIES AS MEETING THE REQUIREMENTS OF ITS
11 REGULATIONS PERTAINING TO SPECIAL REGISTRATION PLATES FOR
12 MANUFACTURERS AND DEALERS, OR A SALES FINANCE COMPANY OR BANK
13 LICENSED UNDER THE PROVISIONS OF THE ACT OF JUNE 28, 1947
14 (P.L.1110, NO.476), KNOWN AS THE "MOTOR VEHICLE SALES FINANCE
15 ACT," OR A FULL AGENT DESIGNATED BY THE DEPARTMENT OF
16 TRANSPORTATION UNDER 67 PA. CODE, CHAPTER 43, OR A MESSENGER
17 SERVICE AUTHORIZED BY THE DEPARTMENT OF TRANSPORTATION UNDER 67
18 PA. CODE, CHAPTER 253, IS HEREBY AUTHORIZED, SUBJECT TO THE
19 PROVISIONS OF THIS SECTION AND THE RULES AND REGULATIONS
20 PROMULGATED THEREUNDER, TO COLLECT ON BEHALF OF THE COMMONWEALTH
21 TAX AND FEES DUE AND PAYABLE UPON THE SALE OR USE AND TRANSFER
22 OF ANY NEW OR USED VEHICLE.
23 (2) EACH SUCH COLLECTION OF TAX AND FEES SHALL BE EVIDENCED
24 BY THE ISSUANCE TO THE TAXPAYER OF A TRUE COPY OF THE TAX REPORT
25 RELATING TO THE TRANSACTION. PRODUCTION BY THE TAXPAYER OF SUCH
26 REPORT OR OTHER CREDIBLE EVIDENCE OF PAYMENT SHALL BE
27 PRESUMPTIVE EVIDENCE OF THE TIME AND AMOUNT OF THE PAYMENT,
28 REBUTTABLE, INTER ALIA, BY EVIDENCE THAT THE TAXPAYER'S CHECK TO
29 THE COLLECTOR WAS RETURNED AS UNCOLLECTIBLE.
30 (3) EACH SUCH COLLECTION OF TAX AND FEES SHALL BE REMITTED
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1 BY THE COLLECTOR TO THE COMMONWEALTH WITHIN TEN DAYS OF THE DATE
2 OF PURCHASE IF THE COLLECTOR IS THE SELLER, AND IN ALL OTHER
3 CASES, WITHIN TEN DAYS OF THE DATE OF COLLECTION FROM THE
4 TAXPAYER, TOGETHER WITH THE TAX REPORT AND SUCH OTHER REPORTS OR
5 DOCUMENTS AS THE COMMONWEALTH MAY PRESCRIBE.
6 (4) A COLLECTOR UNDER THIS SUBSECTION SHALL BE ENTITLED TO
7 ASSERT A LIEN AGAINST ANY VEHICLE FOR ANY TAX OR FEES PERTAINING
8 TO THE VEHICLE IF A CHECK IN PAYMENT FOR SUCH TAX OR FEES IS
9 RETURNED TO THE COLLECTOR AS UNCOLLECTIBLE.
10 (5) A COLLECTOR WHO COLLECTS, REPORTS AND REMITS SALES TAX
11 AT THE TIME AND IN THE MANNER AUTHORIZED AND REQUIRED BY THIS
12 SUBSECTION SHALL BE ENTITLED TO CREDIT AND APPLY AGAINST THE TAX
13 A DISCOUNT OF ONE-HALF OF ONE PER CENT OF THE AMOUNT OF TAX SO
14 COLLECTED AS COMPENSATION FOR THE EXPENSE OF COLLECTING,
15 REPORTING AND REMITTING THE SAME.
16 Section 5. Subsection (b) of section 268 and subsection (b)
17 of section 271 of the act are amended to read:
18 Section 268. Crimes.--* * *
19 (b) Other Crimes. Except as otherwise provided by subsection
20 (a) of this section, any person maintaining a place of business
21 in this Commonwealth, who advertises or holds out or states to
22 the public or to any purchaser or user, directly or indirectly,
23 that the tax or any part thereof imposed by this article will be
24 absorbed by such person, or that it will not be added to the
25 purchase price of the tangible personal property or services
26 described in subclauses (2), (3) and (4) of clause (k) of
27 section 201 of this article sold or, if added, that the tax or
28 any part thereof will be refunded, other than when such person
29 refunds the purchase price because of such property being
30 returned to the vendor, and any person maintaining a place of
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1 business in this Commonwealth and selling or leasing tangible
2 personal property or said services the sale or use of which by
3 the purchaser is subject to tax hereunder, who shall wilfully
4 fail or refuse to collect the tax from the purchaser and remit
5 the same to the department, and any person who shall wilfully
6 fail, neglect or refuse to file any return or report required by
7 this article or any taxpayer who shall refuse to pay any tax,
8 penalty or interest imposed or provided for by this article, or
9 who shall wilfully fail to preserve his books, papers and
10 records as directed by the department, or any person who shall
11 refuse to permit the department or any of its authorized agents
12 to examine his books, records or papers, or who shall knowingly
13 make any incomplete, false or fraudulent return or report, or
14 who shall do, or attempt to do, anything whatever to prevent the
15 full disclosure of the amount or character of taxable sales
16 purchases or use made by himself or any other person, or shall
17 provide any person with a false statement as to the payment of
18 tax with respect to particular tangible personal property or
19 said services, or shall make, utter or issue a false or
20 fraudulent exemption certificate, or shall falsely represent
21 himself as a licensed sales tax agent for the collection of tax <--
22 and fees on vehicles, or being a licensed sales tax agent for
23 collection of tax on vehicles shall issue a false or fraudulent
24 official receipt for tax or fees collected, or shall fail to
25 remit at the time and in the manner required by law, any tax or
26 fees collected by him or shall fail to issue an official receipt
27 in proper form at the time or collection of any tax of fees,
28 HIMSELF AS A COLLECTOR OF TAX AND FEES ON VEHICLES, OR SHALL <--
29 ISSUE A FALSE OR FRAUDULENT RECEIPT OR TAX REPORT FOR TAX OR
30 FEES COLLECTED, OR SHALL FAIL TO PROVIDE A TRUE COPY OF THE TAX
19810H1658B2141 - 9 -
1 REPORT TO THE PURCHASER, OR SHALL FAIL TO REMIT AT THE TIME AND
2 IN THE MANNER PROVIDED BY LAW, ANY TAX OR FEES COLLECTED BY HIM,
3 shall be guilty of a misdemeanor, and, upon conviction thereof,
4 shall be sentenced to pay a fine not exceeding one thousand
5 dollars ($1000) and costs of prosecution, or undergo
6 imprisonment not exceeding one year, or both: Provided, however,
7 That any person maintaining a place of business outside this
8 Commonwealth may absorb the tax with respect to taxable sales
9 made in the normal course of business to customers present at
10 such place of business without being subject to the above
11 penalty and fines. The penalties imposed by this section shall
12 be in addition to any other penalties imposed by any provision
13 of this article.
14 Section 271. Keeping of Records.--* * *
15 (b) Persons Collecting Tax from Others. Any person [liable]
16 authorized or required to collect tax from another person under
17 the provisions of this article shall file reports, keep records,
18 make payments and be subject to interest and penalties as
19 provided for under this article, in the same manner as if he
20 were directly subject to the tax.
21 * * *
22 Section 6. This act shall take effect January 1, 1982.
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