PRIOR PRINTER'S NO. 828 PRINTER'S NO. 1622
No. 691 Session of 2005
INTRODUCED BY WONDERLING, CORMAN, ERICKSON, GORDNER, D. WHITE,
WAUGH, RAFFERTY, BOSCOLA, PUNT, PIPPY, KITCHEN, ROBBINS,
EARLL, GREENLEAF, MADIGAN, LOGAN, ORIE, SCARNATI, REGOLA,
M. WHITE, PILEGGI, RHOADES, CONTI, PICCOLA, VANCE AND
ARMSTRONG, MAY 23, 2005
SENATOR EARLL, FINANCE, AS AMENDED, MARCH 21, 2006
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," further providing, IN SALES AND USE TAX, FOR <--
11 CREDIT AGAINST TAX AND, in gross receipts tax, for the
12 imposition of tax; and making a related repeal.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 1101(a), (a.1) and (j) of the act of <--
16 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
17 1971, amended or added December 23, 2003 (P.L.250, No.46), is
18 amended to read:
19 SECTION 1. SECTION 206 OF THE ACT OF MARCH 4, 1971 (P.L.6, <--
20 NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED BY
21 ADDING A SUBSECTION TO READ:
1 SECTION 206. CREDIT AGAINST TAX.--* * *
2 (C) NO TAX CREDITS UNDER SUBSECTION (B) MAY BE GRANTED FOR
3 TAXABLE YEARS COMMENCING AFTER DECEMBER 31, 2010.
4 SECTION 2. SECTION 1101(A), (A.1) AND (J) OF THE ACT,
5 AMENDED OR ADDED DECEMBER 23, 2003 (P.L.250, NO.46), ARE AMENDED
6 AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
7 Section 1101. Imposition of Tax.--(a) General Rule.--Every
8 pipeline company, conduit company, steamboat company, canal
9 company, slack water navigation company, transportation company,
10 and every other company, association, joint-stock association,
11 or limited partnership, now or hereafter incorporated or
12 organized by or under any law of this Commonwealth, or now or
13 hereafter organized or incorporated by any other state or by the
14 United States or any foreign government, and doing business in
15 this Commonwealth, and every copartnership, person or persons
16 owning, operating or leasing to or from another corporation,
17 company, association, joint-stock association, limited
18 partnership, copartnership, person or persons, any pipeline,
19 conduit, steamboat, canal, slack water navigation, or other
20 device for the transportation of freight, passengers, baggage,
21 or oil, except motor vehicles and railroads, and every limited
22 partnership, association, joint-stock association, corporation
23 or company engaged in, or hereafter engaged in, the
24 transportation of freight or oil within this State, and every
25 telephone company , telegraph company or provider of mobile
26 telecommunications services now or hereafter incorporated or
27 organized by or under any law of this Commonwealth, or now or
28 hereafter organized or incorporated by any other state or by the
29 United States or any foreign government and doing business in
30 this Commonwealth, and every limited partnership, association,
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1 joint-stock association, copartnership, person or persons,
2 engaged in telephone or telegraph business or providing mobile
3 telecommunications services in this Commonwealth, shall pay to
4 the State Treasurer, through the Department of Revenue, a tax
5 of, EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (L), forty-five <--
6 mills with a surtax equal to five mills upon each dollar of the
7 gross receipts of the corporation, company or association,
8 limited partnership, joint-stock association, copartnership,
9 person or persons, received from:
10 (1) passengers, baggage, oil and freight transported wholly
11 within this State;
12 (2) telegraph or telephone messages transmitted wholly
13 within this State and, AFTER DECEMBER 31, 2003, AND BEFORE <--
14 JANUARY 1, 2011, telegraph or telephone messages transmitted in
15 interstate commerce after December 31, 2003, and before January <--
16 1, 2006, where such messages originate or terminate in this
17 State and the charges for such messages are billed to a service
18 address in this State, except gross receipts derived from:
19 (i) the sales of access to the Internet, as set forth in
20 Article II, made to the ultimate consumer; and
21 (ii) the sales for resale to persons, partnerships,
22 associations, corporations or political subdivisions subject to
23 the tax imposed by this article upon gross receipts derived from
24 such resale of telecommunications services, including:
25 (A) telecommunications exchange access to interconnect with
26 a local exchange carrier's network;
27 (B) network elements on an unbundled basis; and
28 (C) sales of telecommunications services to interconnect
29 with providers of mobile telecommunications services; and
30 (3) mobile telecommunications services messages sourced to
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1 this Commonwealth after December 31, 2003, and before January 1,
2 2006 2011, based on the place of primary use standard set forth <--
3 in the Mobile Telecommunications Sourcing Act (4 U.S.C. § 117),
4 except gross receipts derived from:
5 (i) the sales of access to the Internet, as set forth in
6 Article II, made to the ultimate consumer; and
7 (ii) the sales for resale to persons, partnerships,
8 associations, corporations or political subdivisions subject to
9 the tax imposed by this article upon gross receipts derived from
10 such resale of mobile telecommunications services, including
11 sales of mobile telecommunications services to interconnect with
12 providers of telecommunications services.
13 (a.1) Credit.--Telegraph or telephone companies or providers
14 of mobile telecommunications services that pay a gross receipts
15 tax to another state on messages or services after December 31,
16 2003, and before January 1, 2006 2011, which are taxable under <--
17 this article are entitled to a credit against the tax due under
18 this article. The credit allowed with respect to the messages or
19 services shall not exceed the tax under this article with
20 respect to the messages or services.
21 * * *
22 (j) Schedule for Estimated Payments.--
23 (1) For calendar year 2004, the following schedule applies
24 to the payment of the tax under subsection(a)(3):
25 (i) Forty per cent of the estimated tax shall be due on
26 March 15, 2004.
27 (ii) Forty per cent of the estimated tax shall be due on
28 June 15, 2004.
29 (iii) Twenty per cent of the estimated tax shall be due on
30 September 15, 2004.
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1 (2) For calendar [years after 2004] year 2005, the payment <--
2 of the estimated tax under subsection (a)(3) shall be due in
3 accordance with section 3003.2.
4 (3) This subsection shall expire January 1, 2006 2011. <--
5 * * *
6 (L) PHASE-OUT FOR TELEGRAPH OR TELEPHONE MESSAGES <--
7 TRANSMITTED IN INTERSTATE COMMERCE AND MOBILE TELECOMMUNICATIONS
8 SERVICES MESSAGES.--THE TAX IMPOSED UNDER SUBSECTION (A)(2) AND
9 (3) AND PAID BY TELEPHONE COMPANIES AND PROVIDERS OF MOBILE
10 TELECOMMUNICATIONS SERVICES SHALL BE AS FOLLOWS:
11 (1) AFTER DECEMBER 31, 2006, AND BEFORE JANUARY 1, 2008,
12 THIRTY-FIVE MILLS WITH A SURTAX EQUAL TO FIVE MILLS UPON EACH
13 DOLLAR OF THE GROSS RECEIPTS.
14 (2) AFTER DECEMBER 31, 2007, AND BEFORE JANUARY 1, 2009,
15 TWENTY-FIVE MILLS WITH A SURTAX EQUAL TO FIVE MILLS UPON EACH
16 DOLLAR OF THE GROSS RECEIPTS.
17 (3) AFTER DECEMBER 31, 2008, AND BEFORE JANUARY 1, 2010,
18 FIFTEEN MILLS WITH A SURTAX EQUAL TO FIVE MILLS UPON EACH DOLLAR
19 OF THE GROSS RECEIPTS.
20 (4) AFTER DECEMBER 31, 2009, AND BEFORE JANUARY 1, 2011,
21 FIVE MILLS WITH A SURTAX EQUAL TO FIVE MILLS UPON EACH DOLLAR OF
22 THE GROSS RECEIPTS.
23 Section 2 3. Section 33(12) of the act of December 23, 2003 <--
24 (P.L.250, No.46), entitled "An act amending the act of March 4,
25 1971 (P.L.6, No.2), entitled 'An act relating to tax reform and
26 State taxation by codifying and enumerating certain subjects of
27 taxation and imposing taxes thereon; providing procedures for
28 the payment, collection, administration and enforcement thereof;
29 providing for tax credits in certain cases; conferring powers
30 and imposing duties upon the Department of Revenue, certain
20050S0691B1622 - 5 -
1 employers, fiduciaries, individuals, persons, corporations and
2 other entities; prescribing crimes, offenses and penalties,'
3 further providing, in sales and use tax, for definitions, for
4 exclusions, for credits, for licenses and for transfers to
5 Public Transportation Assistance Fund; further providing, in
6 personal income tax, for definitions, for imposition, for
7 special tax provisions for poverty, for returns and liability
8 and for returns and records; further providing, in corporate net
9 income tax, for definitions and for interests in unincorporated
10 entities; providing, in corporate net income tax, for additional
11 withholding requirements; further providing, in capital stock
12 franchise tax, for definitions and reports, for imposition and
13 for expiration; further providing, in utilities gross receipts
14 tax, for imposition; further providing, in public utility realty
15 tax, for surcharges; providing, in public utility realty tax,
16 for additional tax; further providing, in cigarette tax, for
17 incidence and rate of tax, for floor tax, for stamp to evidence
18 the tax and for commissions on sales; establishing, in relation
19 to cigarette tax, the Health Care Provider Retention Account;
20 further providing, in research and development tax credit, for
21 carryover, for limitations and for reports; further providing,
22 in malt beverage tax, for limited tax credits; further
23 providing, in inheritance tax, for definitions, for exempt
24 transfers, for estate tax and for estate tax returns; further
25 providing for the Public Transportation Assistance Fund and
26 providing for its administration; further providing for
27 estimated tax and for underpayment of estimated tax; providing
28 for authority to attach wages; and repealing provisions relating
29 to the Public Transportation Assistance Fund," is repealed.
30 Section 3 4. This act shall take effect immediately. <--
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