PRINTER'S NO. 80
No. 79 Session of 1981
INTRODUCED BY FREIND, JANUARY 19, 1981
REFERRED TO COMMITTEE ON FINANCE, JANUARY 19, 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," changing exclusions from the sales tax for
11 charitable, firemen's, educational or religious
12 organizations.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Clause (10) of section 204, act of March 4, 1971
16 (P.L.6, No.2), known as the "Tax Reform Code of 1971," is
17 amended to read:
18 Section 204. Exclusions from Tax.--The tax imposed by
19 section 202 shall not be imposed upon
20 * * *
21 (10) The sale at retail by or to, or use by (i) any
22 charitable organization, volunteer firemen's organization or
1 nonprofit educational institution, or (ii) a religious
2 organization for religious purposes of tangible personal
3 property or services[: Provided, however, That the exclusion of
4 this clause shall not apply with respect to any tangible
5 personal property or services used in any unrelated trade or
6 business carried on by such organization or institution or with
7 respect to any materials, supplies and equipment used in the
8 construction, reconstruction, remodeling, repairs and
9 maintenance of any real estate, except materials and supplies
10 when purchased by such organizations or institutions for routine
11 maintenance and repairs]. However, no member or employe of any
12 such organization or institution shall derive any personal
13 benefit from this exemption by means of purchasing tangible
14 personal property from or through said organization except where
15 such sale is made pursuant to fund raising activities of the
16 exempt organization wherein all proceeds derived therefrom are
17 applied to the purpose for which the organization or institution
18 was created. Violation of this clause shall subject the
19 organization or institution to suspension of its exemption for a
20 period of one year. Any individual deriving prohibited personal
21 benefit shall be subject to pay to the department, three times
22 the amount of sales tax that would have been due on the original
23 sale.
24 * * *
25 Section 2. This act shall take effect in 60 days.
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