PRINTER'S NO. 3357
No. 2540 Session of 1978
INTRODUCED BY ARTHURS, BRUNNER AND POTT, JUNE 7, 1978
REFERRED TO COMMITTEE ON TRANSPORTATION, JUNE 7, 1978
AN ACT
1 Amending the act of May 21, 1931 (P.L.149, No.105), entitled, as
2 amended, "An act imposing a State tax, payable by those
3 herein defined as distributors, on liquid fuels used or sold
4 and delivered within the Commonwealth, which are practically,
5 and commercially suitable for use in internal combustion
6 engines for the generation of power; providing for the
7 collection and lien of the tax, and the distribution and use
8 of the proceeds thereof; requiring such distributors to
9 secure permits, to file corporate surety bonds and reports,
10 and to retain certain records; imposing duties on retail
11 dealers, common carriers, county commissioners, and such
12 distributors; providing for rewards; imposing certain costs
13 on counties; conferring powers and imposing duties on certain
14 State officers and departments; providing for refunds;
15 imposing penalties; and making an appropriation," increasing
16 the tax, incorporating provisions conforming it to existing
17 law, further providing for disposition of the tax, requiring
18 certain reports and studies, and making repeals.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 4, act of May 21, 1931 (P.L.149, No.105),
22 known as "The Liquid Fuels Tax Act," amended December 19, 1975
23 (P.L.556, No.156), is amended to read:
24 Section 4. Imposition of Tax; Exemptions and Deductions.--A
25 permanent State tax of [eight] twelve and one-half cents a
26 gallon, or fractional part thereof, is hereby imposed and
1 assessed upon all liquid fuels used or sold and delivered by
2 distributors within this Commonwealth, excepting liquid fuels
3 delivered to the United States Government on presentation of a
4 duly authorized United States Government exemption certificate
5 or other evidence satisfactory to the department, and such
6 liquid fuels used or sold and delivered as are not within the
7 taxing power of this Commonwealth under the Commerce Clause of
8 the Constitution of the United States and excepting liquid fuels
9 used as fuel in aircraft or aircraft engines and excepting
10 liquid fuels delivered to the Commonwealth, every political
11 subdivision, any volunteer fire company, any volunteer ambulance
12 service, any volunteer rescue squad, any second class county
13 port authority and nonpublic schools not operated for profit on
14 presentation of evidence satisfactory to the department. The tax
15 herein imposed and assessed shall be collected by and paid to
16 the Commonwealth but once in respect to any liquid fuels.
17 In lieu of the foregoing taxes, a permanent State tax of one
18 and one-half cents a gallon, or fractional part thereof, is
19 hereby imposed and assessed upon all liquid fuels used or sold
20 and delivered by distributors within this Commonwealth for use
21 as fuel in propeller-driven piston engine aircraft or aircraft
22 engines, and[, except as hereinafter provided,] one and one-half
23 cents a gallon, or fractional part thereof, upon all liquid
24 fuels used or sold and delivered by distributors within this
25 Commonwealth for use as fuel in turbine propeller jet, turbo-
26 jet, or jet driven aircraft and aircraft engines. [Beginning
27 January 1, 1960, and thereafter, a State tax of one cent a
28 gallon, or fractional part thereof, is hereby imposed and
29 assessed upon all liquid fuels used or sold and delivered by
30 distributors within this Commonwealth for use as fuel in turbine
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1 propeller jet, turbo-jet, or jet driven aircraft and aircraft
2 engines.]
3 Distributors shall be liable to the Commonwealth for the
4 collection and payment of the tax imposed by this act. The tax
5 imposed by this act shall be collected by the distributor at the
6 time the liquid fuels are used or sold and delivered by the
7 distributor and shall be borne by the consumer.
8 The department shall allow such handling and storage losses
9 of liquid fuels as are substantiated to its satisfaction.
10 Section 2. The act is amended by adding a section to read:
11 Section 4.1. Reports by Department of Transportation.--On or
12 before May 1 of each year beginning with 1979, the Department of
13 Transportation shall report to the General Assembly the manner
14 in which the revenues produced by this act have been expended
15 for highway maintenance and construction purposes. In such
16 report, the department shall enumerate the number of road miles
17 in need of construction, reconstruction and maintenance and
18 where they are located. This report shall include details of the
19 department's plans to utilize appropriated funds for these
20 purposes and shall also include details of how the funds for the
21 previous year were expended, including the number and location
22 of road miles constructed, reconstructed or maintained during
23 the previous year. This method of reporting shall be an ongoing
24 and continuing function of the department in the discharge of
25 it's responsibility to fulfill the road transportation needs of
26 the Commonwealth.
27 Section 3. Subsection (d) of section 10 of the act amended
28 December 1, 1959 (P.L.1629, No.599), is amended to read:
29 Section 10. Disposition and Use of Tax.-- * * *
30 [(d) The remaining two and one-half cents per gallon of the
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1 permanent tax of three cents a gallon, all additional taxes
2 collected under the provisions of this act, the permanent tax of
3 one and one-half cents a gallon imposed and assessed on liquid
4 fuels used or sold and delivered for use as a fuel in propeller-
5 driven aircraft or aircraft engines and one and one-half cents a
6 gallon on liquid fuels used or sold and delivered for use as a
7 fuel in jet or turbo-jet propelled aircraft or aircraft engines
8 in lieu of other taxes, all penalties and interests and all
9 interest earned on deposits of the Liquid Fuels Tax Fund, shall
10 be paid into the Motor License Fund and are hereby specifically
11 appropriated for the same purposes for which moneys in the Motor
12 License Fund are appropriated by law.]
13 (d) The remaining tax moneys collected under the provisions
14 of this act not paid into the Liquid Fuels Tax Fund, all
15 penalties and interest, and all interest earned on deposits of
16 the Liquid Fuels Tax Fund, shall be paid into the Motor License
17 Fund. Fourteen and forty one-hundredths per cent (14.40%) of the
18 tax moneys collected under section 4(b), less payments to the
19 Liquid Fuels Tax Fund and less refunds, are hereby allocated out
20 of the Motor License Fund for distribution to municipalities
21 pursuant to the provisions of the act of June 1, 1956 (P.L.1944,
22 No.655).
23 Section 4. The General Assembly is advised that a number of
24 proposals have been offered regarding alternative methods of the
25 management and direction of financial resources for needed State
26 highway construction and maintenance. Therefore, the Department
27 of Transportation is directed to commission an in-depth study of
28 the department's administration and management of the
29 Commonwealth's highway maintenance and construction programs.
30 The study shall be conducted by a qualified, independent
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1 private-sector organization. The findings and recommendations of
2 this study shall be transmitted to the General Assembly on or
3 before July 1, 1979. On or before January 30, 1980, the
4 department shall report to the General Assembly to what extent
5 it is implementing or planning to implement the findings and
6 recommendations of the study.
7 Section 5. (a) The following acts or parts of acts are
8 hereby repealed to the extent indicated:
9 Section 3, act of June 1, 1956 (1955 P.L.1944, No.655),
10 entitled "An act providing a permanent allocation of a part of
11 the fuels and liquids fuels tax proceeds to cities, boroughs,
12 incorporated towns and townships, for their road, street and
13 bridge purposes; conferring powers and imposing duties on local
14 officers and the Department of Highways; and making an
15 appropriation out of the Motor License Fund; and repealing
16 existing legislation" absolutely.
17 Section 9, act of June 1, 1956 (1955 P.L.1944, No.655),
18 entitled "Providing a permanent allocation of a part of the
19 fuels and liquids fuels tax proceeds to cities, boroughs,
20 incorporated towns and townships, for their road, street and
21 bridge purposes; conferring powers and imposing duties on local
22 officers and the Department of Highways; and making an
23 appropriation out of the Motor License Fund; and repealing
24 existing legislation," insofar as inconsistent with the
25 provisions of this act.
26 Act of July 12, 1974 (P.L.458, No.161), entitled "An act
27 imposing an additional State tax on certain fuels; providing for
28 collection, lien and administration of the tax; and making an
29 appropriation" absolutely.
30 (b) All other acts or parts of acts are hereby repealed
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1 insofar as inconsistent with the provisions of this act.
2 Section 6. This act shall take effect on the first day of
3 the next month beginning 30 days or more after final enactment
4 of this act.
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