PRIOR PRINTER'S NO. 480 PRINTER'S NO. 857
No. 443 Session of 1987
INTRODUCED BY SHUMAKER, STAUFFER, MOORE, TILGHMAN, HOPPER,
JUBELIRER, SALVATORE, CORMAN, BELL, LOEPER, RHOADES,
GREENWOOD, LEMMOND, BRIGHTBILL, WILT, ARMSTRONG, FISHER,
GREENLEAF, ROMANELLI, HELFRICK, WENGER, SHAFFER, PETERSON,
MADIGAN AND HESS, FEBRUARY 27, 1987
AS AMENDED ON THIRD CONSIDERATION, APRIL 27, 1987
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," reducing the utilities gross receipts tax.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 1101(a) and (b) of the act of March 4,
14 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971,
15 amended December 11, 1979 (P.L.499, No.107), are amended and the
16 section is amended by adding a subsection to read:
17 Section 1101. Imposition of Tax.--(a) General Rule.--Every
18 railroad company, pipeline company, conduit company, steamboat
19 company, canal company, slack water navigation company,
20 transportation company, and every other company, association,
1 joint-stock association, or limited partnership, now or
2 hereafter incorporated or organized by or under any law of this
3 Commonwealth, or now or hereafter organized or incorporated by
4 any other state or by the United States or any foreign
5 government, and doing business in this Commonwealth, and every
6 copartnership, person or persons owning, operating or leasing to
7 or from another corporation, company, association, joint-stock
8 association, limited partnership, copartnership, person or
9 persons, any railroad, pipeline, conduit, steamboat, canal,
10 slack water navigation, or other device for the transportation
11 of freight, passengers, baggage, or oil, except taxicabs, motor
12 buses and motor omnibuses, and every limited partnership,
13 association, joint-stock association, corporation or company
14 engaged in, or hereafter engaged in, the transportation of
15 freight or oil within this State, and every telephone company,
16 telegraph company, express company, gas company, palace car
17 company and sleeping car company, now or hereafter incorporated
18 or organized by or under any law of this Commonwealth, or now or
19 hereafter organized or incorporated by any other state or by the
20 United States or any foreign government and doing business in
21 this Commonwealth, and every limited partnership, association,
22 joint-stock association, copartnership, person or persons,
23 engaged in telephone, telegraph, express, gas, palace car or
24 sleeping car business in this Commonwealth, shall pay to the
25 State Treasurer, through the Department of Revenue, a tax of
26 [forty-five] forty-two FORTY-ONE mills upon each dollar of the <--
27 gross receipts of the corporation, company or association,
28 limited partnership, joint-stock association, copartnership,
29 person or persons, received from passengers, baggage, and
30 freight transported wholly within this State, from telegraph or
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1 telephone messages transmitted wholly within this State, from
2 express, palace car or sleeping car business done wholly within
3 this State, or from the sales of gas, except gross receipts
4 derived from sales to any municipality owned or operated public
5 utility and except gross receipts derived from the sales for
6 resale, to persons, partnerships, associations, corporations or
7 political subdivisions subject to the tax imposed by this act
8 upon gross receipts derived from such resale and from the
9 transportation of oil done wholly within this State. The gross
10 receipts of gas companies shall include the gross receipts from
11 the sale of artificial and natural gas, but shall not include
12 gross receipts from the sale of liquefied petroleum gas.
13 (b) Electric Light, Waterpower and Hydro-electric
14 Utilities.--Every electric light company, waterpower company and
15 hydro-electric company now or hereafter incorporated or
16 organized by or under any law of this Commonwealth, or now or
17 hereafter organized or incorporated by any other state or by the
18 United States or any foreign government and doing business in
19 this Commonwealth, and every limited partnership, association,
20 joint-stock association, copartnership, person or persons,
21 engaged in electric light and power business, waterpower
22 business and hydro-electric business in this Commonwealth, shall
23 pay to the State Treasurer, through the Department of Revenue, a
24 tax of [forty-five] forty-two FORTY-ONE mills upon each dollar <--
25 of the gross receipts of the corporation, company or
26 association, limited partnership, joint-stock association,
27 copartnership, person or persons, received from:
28 (1) the sales of electric energy within this State, except
29 gross receipts derived from the sales for resale of electric
30 energy to persons, partnerships, associations, corporations or
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1 political subdivisions subject to the tax imposed by this
2 subsection upon gross receipts derived from such resale; and
3 (2) the sales of electric energy produced in Pennsylvania
4 and made outside of Pennsylvania in a state that has taken
5 action since December 21, 1977 which results in higher costs for
6 electric energy produced in that state and sold in Pennsylvania
7 unless the action that was taken after December 21, 1977 is
8 rescinded according to the following apportionment formula:
9 except for gross receipts derived from sales under clause (1),
10 the gross receipts from all sales of electricity of the producer
11 shall be apportioned to the Commonwealth of Pennsylvania by the
12 ratio of the producer's operating and maintenance expenses in
13 Pennsylvania and depreciation attributable to property in
14 Pennsylvania to the producer's total operating and maintenance
15 expenses and depreciation.
16 * * *
17 (h) Benefits to Consumer.--For purposes of this article, the
18 reduction in the taxes imposed under subsections (a) and (b)
19 shall derive to the benefit of the consumer purchasing services
20 from said utilities. Said benefit shall be provided in the form
21 of a reduction in the State tax surcharge. The penalty for <--
22 failing to pass through this reduction to the purchasing
23 consumer shall be as prescribed by the laws defining the powers
24 and duties of the Department of Revenue. FAILURE TO PASS THROUGH <--
25 THE REDUCTION IN THE STATE TAX SURCHARGE TO THE PURCHASING
26 CONSUMER SHALL BE SUBJECT TO A CIVIL PENALTY, WHICH, AT A
27 MINIMUM, SHALL BE EQUAL TO ONE THOUSAND DOLLARS ($1,000), BUT
28 MAY BE ASSESSED UP TO A MAXIMUM AMOUNT OF FIVE THOUSAND DOLLARS
29 ($5,000). IN ADDITION, THE COURT MAY ORDER SUCH OTHER RELIEF AS
30 IT DEEMS APPROPRIATE.
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1 Section 2. This act shall apply to the tax year commencing
2 January 1, 1988, and each tax year thereafter.
3 Section 3. This act shall take effect immediately.
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