1Amending the act of December 31, 1965 (P.L.1257, No.511), 
2entitled "An act empowering cities of the second class, 
3cities of the second class A, cities of the third class, 
4boroughs, towns, townships of the first class, townships of 
5the second class, school districts of the second class, 
6school districts of the third class and school districts of 
7the fourth class including independent school districts, to 
8levy, assess, collect or to provide for the levying, 
9assessment and collection of certain taxes subject to maximum 
10limitations for general revenue purposes; authorizing the 
11establishment of bureaus and the appointment and compensation 
12of officers, agencies and employes to assess and collect such 
13taxes; providing for joint collection of certain taxes, 
14prescribing certain definitions and other provisions for 
15taxes levied and assessed upon earned income, providing for 
16annual audits and for collection of delinquent taxes, and 
17permitting and requiring penalties to be imposed and 
18enforced, including penalties for disclosure of confidential 
19information, providing an appeal from the ordinance or 
20resolution levying such taxes to the court of quarter 
21sessions and to the Supreme Court and Superior Court," 
22further providing for delegation of taxing powers and 
23restrictions.

24The General Assembly of the Commonwealth of Pennsylvania
25hereby enacts as follows:

26Section 1. Section 301.1(f)(12) of the act of December 31, 
271965 (P.L.1257, No.511), known as The Local Tax Enabling Act, 
28amended October 15, 2008 (P.L.1615, No.130), is amended to read:

29Section 301.1. Delegation of Taxing Powers and Restrictions

1Thereon.--* * *

2(f) Such local authorities shall not have authority by
3virtue of this act:

4* * *

5(12) To levy, assess and collect a mercantile or business
6privilege tax on gross receipts or part thereof which are: (i)
7discounts allowed to purchasers as cash discounts for prompt
8payment of their bills; (ii) charges advanced by a seller for
9freight, delivery or other transportation for the purchaser in
10accordance with the terms of a contract of sale; (iii) received
11upon the sale of an article of personal property which was
12acquired by the seller as a trade-in to the extent that the
13gross receipts in the sale of the article taken in trade does
14not exceed the amount of trade-in allowance made in acquiring
15such article; (iv) refunds, credits or allowances given to a
16purchaser on account of defects in goods sold or merchandise
17returned; (v) Pennsylvania sales tax; (vi) based on the value of
18exchanges or transfers between one seller and another seller who
19transfers property with the understanding that property of an
20identical description will be returned at a subsequent date;
21however, when sellers engaged in similar lines of business
22exchange property and one of them makes payment to the other in
23addition to the property exchanged, the additional payment
24received may be included in the gross receipts of the seller
25receiving such additional cash payments; (vii) of sellers from
26sales to other sellers in the same line where the seller
27transfers the title or possession at the same price for which
28the seller acquired the merchandise; or (viii) transfers between
29one department, branch or division of a corporation or other
30business entity of goods, wares and merchandise to another

1department, branch or division of the same corporation or
2business entity and which are recorded on the books to reflect
3such interdepartmental transactions. A mercantile or transaction 
4tax on the privilege of conducting specific transactions or 
5business within a taxing jurisdiction on the gross receipts from 
6such transactions or business may be imposed by a local taxing 
7jurisdiction wherein such business transactions took place. A 
8taxpayer may exclude such gross receipts from any tax on or 
9measured by such gross receipts which is imposed by a 
10jurisdiction in which the taxpayer maintains a base of 
11operations. A business privilege tax on the privilege of doing 
12business within a taxing jurisdiction on or measured by gross 
13receipts may be imposed by the local taxing jurisdiction only if 
14the privilege of doing business is exercised through a base of 
15operations in the local taxing jurisdiction. If a taxpayer 
16maintains more than one base of operations, the local taxing 
17jurisdiction shall only be able to tax the gross receipts 
18generated by the base of operations located within that local 
19taxing jurisdiction. For purposes of this section, the term 
20"base of operations" shall mean an actual, physical and 
21permanent place of business from which a taxpayer manages, 
22directs and controls its business activities at that location 
23and shall not include a structure which is utilized in a 
24municipality for the purpose of overseeing construction for the 
25duration of the construction project.

26* * *

27Section 2. The amendment of section 301.1(f)(12) of the act
28shall apply to taxable years beginning after December 31, 2013.

29Section 3. This act shall take effect immediately.