SENATE AMENDED
PRIOR PRINTER'S NOS. 83, 1542 PRINTER'S NO. 2353
No. 82 Session of 1981
INTRODUCED BY FREIND, JANUARY 19, 1981
SENATOR HOWARD, FINANCE, IN SENATE, AS AMENDED, OCTOBER 14, 1981
AN ACT
1 Amending the act of July 22, 1970 (P.L.513, No.178), entitled <--
2 "An act imposing a tax on the sale or possession of
3 cigarettes and providing penalties," removing an exemption
4 from taxation; changing the cigarette stamping agencies
5 permitted to pay for purchases on a deferred basis;
6 prohibiting persons convicted of felonies and certain other
7 crimes from being licensed as cigarette stamping agents.
8 AMENDING THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN <--
9 ACT RELATING TO TAX REFORM AND STATE TAXATION BY CODIFYING
10 AND ENUMERATING CERTAIN SUBJECTS OF TAXATION AND IMPOSING
11 TAXES THEREON; PROVIDING PROCEDURES FOR THE PAYMENT,
12 COLLECTION, ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING
13 FOR TAX CREDITS IN CERTAIN CASES; CONFERRING POWERS AND
14 IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN
15 EMPLOYERS, FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS
16 AND OTHER ENTITIES; PRESCRIBING CRIMES, OFFENSES AND
17 PENALTIES," CHANGING THE DEFINITION OF "CORPORATION,"
18 CLARIFYING A PROVISION RELATING TO TAX CREDITS, PROVIDING FOR
19 ADJUSTMENTS WITH RESPECT TO DEPRECIATION IN DETERMINING
20 TAXABLE INCOME FOR CORPORATE INCOME TAXES, CHANGING THE
21 IMPOSITION SECTION, ADDING PROVISIONS RELATING TO THE
22 TAXATION OF CIGARETTES, MAKING EDITORIAL CHANGES AND MAKING
23 REPEALS.
24 The General Assembly of the Commonwealth of Pennsylvania
25 hereby enacts as follows:
26 Section 1. Subsection (a) of section 204, act of July 22, <--
27 1970 (P.L.513, No.178), known as the "Pennsylvania Cigarette Tax
1 Act," amended July 7, 1978 (P.L.746, No.139), is amended to
2 read:
3 Section 204. Exemptions from Tax.--(a) No tax imposed by
4 this act shall be levied upon the possession or sale of
5 cigarettes which this Commonwealth is prohibited from taxing
6 under the Constitution or statutes of the United States. In
7 addition, when the seller and purchaser have registered with the
8 department and have obtained exemption certificates in
9 accordance with such regulations as the department shall
10 prescribe, the following sales are exempt:
11 (1) Sales to veterans' organizations approved by the
12 department, if the cigarettes are being purchased by the
13 organization for gratuitous issue to veteran patients in
14 Federal, State or State-aided hospitals;
15 (2) Sales to voluntary unincorporated organizations of
16 military forces personnel operating under regulations
17 promulgated by the United States Secretary of Defense or
18 departments under his jurisdiction;
19 (3) Sales to retail dealers located in Veterans'
20 Administration hospitals for sales to patients in such
21 hospitals.
22 [(4) Sales to retail dealers in institutions under the
23 jurisdiction of the United States Department of Justice for
24 sales to persons incarcerated in such institutions.]
25 * * *
26 Section 2. Subsection (e) of section 301 of the act is
27 amended to read:
28 Section 301. Stamp to Evidence the Tax.--* * *
29 (e) The department shall by regulation permit [only] a
30 [Pennsylvania domiciled] cigarette stamping agency to pay for
19810H0082B2353 - 2 -
1 purchases on a deferred basis, upon the filing of a surety bond,
2 of the type approved by the department, with the department, in
3 an amount deemed sufficient by the department to protect the
4 revenue, said bond to be executed by the cigarette stamping
5 agency as principal and by a corporate surety company, duly
6 authorized to engage in such business in the Commonwealth of
7 Pennsylvania, as surety. The department shall deny deferred
8 purchase plans to any stamping agency in any state where such
9 state denies stamping agencies in Pennsylvania the right to use
10 deferred purchase plans.
11 Section 3. Section 402 of the act is amended by adding a
12 subsection to read:
13 Section 402. Licensing of Cigarette Stamping Agents.--* * *
14 (e) For purposes of this section, a person convicted of
15 committing any felony, any infamous crime or any crime involving
16 moral turpitude shall not be a "person of good moral character"
17 and shall not be licensed as a cigarette stamping agent.
18 Section 4. This act shall take effect in 30 days.
19 SECTION 1. CLAUSE (1) OF SECTION 401, ACT OF MARCH 4, 1971 <--
20 (P.L.6, NO.2), KNOWN AS THE "TAX REFORM CODE OF 1971," IS
21 AMENDED TO READ:
22 SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
23 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING
24 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
25 CLEARLY INDICATES A DIFFERENT MEANING:
26 (1) "CORPORATION." A CORPORATION HAVING CAPITAL STOCK,
27 JOINT-STOCK ASSOCIATION, OR LIMITED PARTNERSHIP EITHER ORGANIZED
28 UNDER THE LAWS OF THIS COMMONWEALTH, THE UNITED STATES, OR ANY
29 OTHER STATE, TERRITORY, OR FOREIGN COUNTRY, OR DEPENDENCY, AND
30 (I) DOING BUSINESS IN THIS COMMONWEALTH; (II) CARRYING ON
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1 ACTIVITIES IN THIS COMMONWEALTH; (III) HAVING CAPITAL OR
2 PROPERTY EMPLOYED OR USED IN THIS COMMONWEALTH; OR (IV) OWNING
3 PROPERTY IN THIS COMMONWEALTH, BY OR IN THE NAME OF ITSELF, OR
4 ANY PERSON, PARTNERSHIP, ASSOCIATION, LIMITED PARTNERSHIP,
5 JOINT-STOCK ASSOCIATION OR CORPORATION. THE WORD "CORPORATION"
6 SHALL NOT INCLUDE BUILDING AND LOAN ASSOCIATIONS, BANKS, BANK
7 AND TRUST COMPANIES, NATIONAL BANKS, SAVINGS INSTITUTIONS, TRUST
8 COMPANIES, INSURANCE AND SURETY COMPANIES.
9 * * *
10 SECTION 2. SUBCLAUSE 1 OF CLAUSE (3) OF SECTION 401 OF THE
11 ACT, AMENDED MAY 5, 1981 (P.L.36, NO.14), IS AMENDED TO READ:
12 SECTION 401. DEFINITIONS.--THE FOLLOWING WORDS, TERMS, AND
13 PHRASES, WHEN USED IN THIS ARTICLE, SHALL HAVE THE MEANING
14 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
15 CLEARLY INDICATES A DIFFERENT MEANING:
16 * * *
17 (3) "TAXABLE INCOME." 1. (A) IN CASE THE ENTIRE BUSINESS
18 OF THE CORPORATION IS TRANSACTED WITHIN THIS COMMONWEALTH, FOR
19 ANY TAXABLE YEAR WHICH BEGINS ON OR AFTER JANUARY 1, 1971,
20 TAXABLE INCOME FOR THE CALENDAR YEAR OR FISCAL YEAR AS RETURNED
21 TO AND ASCERTAINED BY THE FEDERAL GOVERNMENT, OR IN THE CASE OF
22 A CORPORATION PARTICIPATING IN THE FILING OF CONSOLIDATED
23 RETURNS TO THE FEDERAL GOVERNMENT, THE TAXABLE INCOME WHICH
24 WOULD HAVE BEEN RETURNED TO AND ASCERTAINED BY THE FEDERAL
25 GOVERNMENT IF SEPARATE RETURNS HAD BEEN MADE TO THE FEDERAL
26 GOVERNMENT FOR THE CURRENT AND PRIOR TAXABLE YEARS, SUBJECT,
27 HOWEVER, TO ANY CORRECTION THEREOF, FOR FRAUD, EVASION, OR ERROR
28 AS FINALLY ASCERTAINED BY THE FEDERAL GOVERNMENT [: PROVIDED,
29 THAT ADDITIONAL].
30 (B) ADDITIONAL DEDUCTIONS SHALL BE ALLOWED FROM TAXABLE
19810H0082B2353 - 4 -
1 INCOME ON ACCOUNT OF ANY DIVIDENDS RECEIVED FROM ANY OTHER
2 CORPORATION BUT ONLY TO THE EXTENT THAT SUCH DIVIDENDS ARE
3 INCLUDED IN TAXABLE INCOME AS RETURNED TO AND ASCERTAINED BY THE
4 FEDERAL GOVERNMENT[: PROVIDED FURTHER, THAT ADDITIONAL].
5 (C) FURTHER ADDITIONAL DEDUCTIONS SHALL BE ALLOWED FROM
6 TAXABLE INCOME IN AN AMOUNT EQUAL TO THE AMOUNT OF ANY REDUCTION
7 IN AN EMPLOYER'S DEDUCTION FOR WAGES AND SALARIES [AS REQUIRED
8 BY SECTION 280C OF THE INTERNAL REVENUE CODE] AS A RESULT OF THE
9 EMPLOYER TAKING A CREDIT FOR "NEW JOBS" OR "TARGETED JOBS"
10 PURSUANT TO SECTION 44B OR SECTION 51 OF THE INTERNAL REVENUE
11 CODE[: PROVIDED FURTHER, THAT TAXABLE].
12 (D) TAXABLE INCOME WILL INCLUDE THE SUM OF THE FOLLOWING TAX
13 PREFERENCE ITEMS AS DEFINED IN SECTION 57 OF THE INTERNAL
14 REVENUE CODE, AS AMENDED, (I) EXCESS INVESTMENT INTEREST; (II)
15 ACCELERATED DEPRECIATION ON REAL PROPERTY; (III) ACCELERATED
16 DEPRECIATION ON PERSONAL PROPERTY SUBJECT TO A NET LEASE; (IV)
17 AMORTIZATION OF CERTIFIED POLLUTION CONTROL FACILITIES; (V)
18 AMORTIZATION OF RAILROAD ROLLING STOCK; (VI) STOCK OPTIONS;
19 (VII) RESERVES FOR LOSSES ON BAD DEBTS OF FINANCIAL
20 INSTITUTIONS; (VIII) [AND] CAPITAL GAINS; AND (IX) ACCELERATED
21 COST RECOVERY DEDUCTION UNDER SECTION 57(A)(12)(B) OF THE
22 INTERNAL REVENUE CODE, BUT ONLY TO THE EXTENT THAT SUCH
23 PREFERENCE ITEMS ARE NOT INCLUDED IN "TAXABLE INCOME" AS
24 RETURNED TO AND ASCERTAINED BY THE FEDERAL GOVERNMENT.
25 (E) TAXABLE INCOME FOR TAX YEARS ENDING IN 1981, 1982 AND
26 1983 WILL ALSO INCLUDE THE AMOUNT OF THE DEDUCTION RELATED TO
27 DEPRECIATION CLAIMED AND ALLOWABLE UNDER SECTION 168,
28 ACCELERATED COST RECOVERY SYSTEM, INTERNAL REVENUE CODE OF 1954,
29 AS AMENDED BY THE ECONOMIC RECOVERY TAX ACT OF 1981, OTHER THAN
30 ITEMS OF TAX PREFERENCE UNDER SECTION 57 WHICH HAVE BEEN
19810H0082B2353 - 5 -
1 INCLUDED IN TAXABLE INCOME.
2 (F) FOR THE TAX YEAR BEGINNING AND ENDING IN 1981 A
3 DEDUCTION SHALL BE ALLOWED FROM TAXABLE INCOME TO THE EXTENT OF
4 THE DEDUCTION FOR DEPRECIATION WHICH WOULD HAVE BEEN ALLOWABLE
5 ON SUCH RECOVERY PROPERTY UNDER SECTION 167 OF THE INTERNAL
6 REVENUE CODE OF 1954, AS AMENDED, PRIOR TO AMENDMENT BY THE
7 ECONOMIC RECOVERY TAX ACT OF 1981, PLUS AN ADDITIONAL DEDUCTION
8 TO THE EXTENT OF ONE-THIRD OF THE DEDUCTION RELATED TO
9 DEPRECIATION CLAIMED AND ALLOWABLE ON SUCH RECOVERY PROPERTY
10 UNDER SECTION 168 OF THE INTERNAL REVENUE CODE OF 1954, AS
11 AMENDED, IN EXCESS OF THE DEDUCTION FOR DEPRECIATION WHICH WOULD
12 HAVE BEEN ALLOWABLE ON SUCH RECOVERY PROPERTY UNDER SECTION 167
13 OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED, PRIOR TO
14 AMENDMENT BY THE ECONOMIC RECOVERY TAX ACT, IF ANY.
15 (G) FOR THE TAX YEAR BEGINNING AND ENDING IN 1982 AN
16 ADDITIONAL DEDUCTION SHALL BE ALLOWED FROM TAXABLE INCOME TO THE
17 EXTENT OF THE DEDUCTION FOR DEPRECIATION WHICH WOULD HAVE BEEN
18 ALLOWABLE ON SUCH RECOVERY PROPERTY UNDER SECTION 167 OF THE
19 INTERNAL REVENUE CODE OF 1954, AS AMENDED, PRIOR TO AMENDMENT BY
20 THE ECONOMIC RECOVERY TAX ACT OF 1981, PLUS AN ADDITIONAL
21 DEDUCTION TO THE EXTENT OF TWO-THIRDS OF THE DEDUCTION RELATED
22 TO DEPRECIATION CLAIMED AND ALLOWABLE IN THE CASE OF RECOVERY
23 PROPERTY UNDER SECTION 168 OF THE INTERNAL REVENUE CODE OF 1954,
24 AS AMENDED, IN EXCESS OF THE DEDUCTIONS FOR DEPRECIATION WHICH
25 WOULD HAVE BEEN ALLOWABLE ON SUCH RECOVERY PROPERTY UNDER
26 SECTION 167 OF THE INTERNAL REVENUE CODE OF 1954, AS AMENDED,
27 PRIOR TO AMENDMENT BY THE ECONOMIC RECOVERY TAX ACT, IF ANY.
28 (H) FOR TAX YEARS BEGINNING IN 1983, AND FOR SUBSEQUENT
29 YEARS, THERE SHALL BE ALLOWED AS A DEDUCTION RELATED TO
30 DEPRECIATION THE AMOUNT ALLOWABLE UNDER SECTION 168 OF THE
19810H0082B2353 - 6 -
1 INTERNAL REVENUE CODE, AS AMENDED, WITH RESPECT TO RECOVERY
2 PROPERTY.
3 (I) FOR ALL RECOVERY PROPERTY THE AMOUNTS DISALLOWED AS A
4 CONSEQUENCE OF THE AFORESAID ADJUSTMENTS SHALL BE RECOVERED BY
5 AN ADDITIONAL DEDUCTION FROM TAXABLE INCOME RETURNED TO AND
6 ASCERTAINED BY THE FEDERAL GOVERNMENT IN TAX YEARS COMMENCING IN
7 1983 OF ONE-FOURTH OF THE SUM PER YEAR OR TEN THOUSAND DOLLARS
8 ($10,000) PER YEAR, WHICHEVER IS GREATER, UNTIL THE TOTAL AMOUNT
9 HAS BEEN RECOVERED.
10 (J) IN THE CASE OF FISCAL YEAR TAXPAYERS, THE DEDUCTION FROM
11 TAXABLE INCOME RELATED TO DEPRECIATION SHALL BE PRORATED SO AS
12 TO REFLECT THE RELATIVE PORTIONS OF EACH OF THE CALENDAR YEARS
13 1981 AND 1982 INCLUDED IN THE TAXPAYER'S FISCAL YEAR, IN A
14 MANNER PURSUANT TO REGULATIONS TO BE PROMULGATED BY THE
15 SECRETARY.
16 (K) A TAXPAYER REPORTING ON A 52-53 WEEK BASIS WHICH CLOSES
17 ITS FISCAL YEAR ON ANY OF THE LAST SEVEN DAYS IN DECEMBER OR THE
18 FIRST SEVEN DAYS OF JANUARY IS DEEMED A CALENDAR YEAR TAXPAYER
19 WITH A YEAR ENDING DATE OF DECEMBER 31.
20 (L) FOR THE PURPOSE OF COMPUTING THE DEPRECIATION DEDUCTION
21 WHICH WOULD HAVE BEEN ALLOWABLE UNDER SECTION 167 OF THE
22 INTERNAL REVENUE CODE OF 1954, AS AMENDED, PRIOR TO AMENDMENT BY
23 THE ECONOMIC RECOVERY TAX ACT OF 1981: (I) TAX PREFERENCE
24 ITEMS AS SET FORTH ABOVE SHALL NOT BE INCLUDED; (II) PROPERTY
25 SHALL BE DEPRECIATED FOR A PERIOD AND WITH A METHOD CONSISTENT
26 WITH THAT EMPLOYED FOR SIMILAR PROPERTY IN PRIOR YEARS; AND
27 (III) FOR TAXABLE YEAR 1982, NO DEDUCTION SHALL BE ALLOWED FOR
28 ADDITIONAL FIRST YEAR DEPRECIATION ON SECTION 179 PROPERTY.
29 (M) NO DEDUCTION SHALL BE ALLOWED FOR NET OPERATING LOSSES
30 SUSTAINED BY THE CORPORATION DURING ANY OTHER FISCAL OR CALENDAR
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1 YEAR: PROVIDED, THAT FOR THE CALENDAR YEAR 1981 AND FISCAL YEARS
2 BEGINNING IN 1981 AND THEREAFTER, A NET OPERATING LOSS, AS
3 PROVIDED BY SECTION 172 OF THE INTERNAL REVENUE CODE, SHALL BE
4 ALLOWED AS A DEDUCTION AND A CARRYOVER PURSUANT TO THE FOLLOWING
5 SCHEDULE:
6 NET OPERATING LOSS FOR YEAR CARRYOVER
7 1981 1 YEAR
8 1982 2 YEARS
9 1983 AND THEREAFTER 3 YEARS
10 THE NET OPERATING LOSS SHALL BE CARRIED TO THE EARLIEST OF THE
11 TAXABLE YEARS TO WHICH, UNDER THIS SCHEDULE, SUCH LOSS MAY FIRST
12 BE CARRIED. IN THE CASE OF REGULATED INVESTMENT COMPANIES AS
13 DEFINED BY THE INTERNAL REVENUE CODE OF 1954, AS AMENDED,
14 "TAXABLE INCOME" SHALL BE INVESTMENT COMPANY TAXABLE INCOME AS
15 DEFINED IN THE AFORESAID INTERNAL REVENUE CODE OF 1954, AS
16 AMENDED. IN ARRIVING AT "TAXABLE INCOME" FOR FEDERAL TAX
17 PURPOSES FOR ANY TAXABLE YEAR BEGINNING ON OR AFTER JANUARY 1,
18 1981, NO DEDUCTION SHALL BE ALLOWED FOR TAXES IMPOSED ON OR
19 MEASURED BY NET INCOME.
20 * * *
21 SECTION 3. SECTION 402 OF THE ACT, AMENDED MAY 5, 1981
22 (P.L.36, NO.14), IS AMENDED TO READ:
23 SECTION 402. IMPOSITION OF TAX.--EVERY CORPORATION SHALL BE
24 SUBJECT TO, AND SHALL PAY FOR THE PRIVILEGE OF (I) DOING
25 BUSINESS IN THIS COMMONWEALTH; (II) CARRYING ON ACTIVITIES IN
26 THIS COMMONWEALTH; (III) HAVING CAPITAL OR PROPERTY EMPLOYED OR
27 USED IN THIS COMMONWEALTH; OR (IV) OWNING PROPERTY IN THIS
28 COMMONWEALTH, BY OR IN THE NAME OF ITSELF, OR ANY PERSON,
29 PARTNERSHIP, ASSOCIATION, LIMITED PARTNERSHIP, JOINT-STOCK
30 ASSOCIATION, OR CORPORATION, A STATE EXCISE TAX AT THE RATE OF
19810H0082B2353 - 8 -
1 TWELVE PER CENT PER ANNUM UPON EACH DOLLAR OF TAXABLE INCOME OF
2 SUCH CORPORATION RECEIVED BY, AND ACCRUING TO, SUCH CORPORATION
3 DURING THE CALENDAR YEAR 1971 AND THE FIRST SIX MONTHS OF 1972
4 AND AT THE RATE OF ELEVEN PER CENT PER ANNUM UPON EACH DOLLAR OF
5 TAXABLE INCOME OF SUCH CORPORATION RECEIVED BY, AND ACCRUING TO,
6 SUCH CORPORATION DURING THE SECOND SIX MONTHS OF CALENDAR YEAR
7 1972 THROUGH THE CALENDAR YEAR 1973 AND AT THE RATE OF NINE AND
8 ONE-HALF PER CENT PER ANNUM UPON EACH DOLLAR OF TAXABLE INCOME
9 OF SUCH CORPORATION RECEIVED BY, AND ACCRUING TO, SUCH
10 CORPORATION DURING THE CALENDAR YEARS 1974, 1975 AND 1976 AND AT
11 THE RATE OF TEN AND ONE-HALF PER CENT PER ANNUM UPON EACH DOLLAR
12 OF TAXABLE INCOME OF SUCH CORPORATION RECEIVED BY, AND ACCRUING
13 TO, SUCH CORPORATION DURING THE CALENDAR YEAR 1977 AND EACH
14 CALENDAR YEAR THEREAFTER TO THE BEGINNING OF CALENDAR YEAR 1984
15 AND AT A RATE OF NINE AND ONE-HALF PER CENT FOR EACH CALENDAR
16 YEAR THEREAFTER, EXCEPT WHERE A CORPORATION REPORTS TO THE
17 FEDERAL GOVERNMENT ON THE BASIS OF A FISCAL YEAR, AND HAS
18 CERTIFIED SUCH FACT TO THE DEPARTMENT AS REQUIRED BY SECTION 403
19 OF THIS ARTICLE, IN WHICH CASE, SUCH TAX, AT THE RATE OF TWELVE
20 PER CENT, SHALL BE LEVIED, COLLECTED, AND PAID UPON ALL TAXABLE
21 INCOME RECEIVED BY, AND ACCRUING TO, SUCH CORPORATION DURING THE
22 FIRST SIX MONTHS OF THE FISCAL YEAR COMMENCING IN THE CALENDAR
23 YEAR 1972 AND AT THE RATE OF ELEVEN PER CENT, SHALL BE LEVIED,
24 COLLECTED, AND PAID UPON ALL TAXABLE INCOME RECEIVED BY, AND
25 ACCRUING TO, SUCH CORPORATION DURING THE SECOND SIX MONTHS OF
26 THE FISCAL YEAR COMMENCING IN THE CALENDAR YEAR 1972 AND DURING
27 THE FISCAL YEAR COMMENCING IN THE CALENDAR YEAR 1973 AND AT THE
28 RATE OF NINE AND ONE-HALF PER CENT, SHALL BE LEVIED, COLLECTED,
29 AND PAID UPON ALL TAXABLE INCOME RECEIVED BY, AND ACCRUING TO,
30 SUCH CORPORATION DURING THE FISCAL YEAR COMMENCING IN THE
19810H0082B2353 - 9 -
1 CALENDAR YEARS 1974, 1975 AND 1976 AND AT THE RATE OF TEN AND
2 ONE-HALF PER CENT, SHALL BE LEVIED, COLLECTED, AND PAID UPON ALL
3 TAXABLE INCOME RECEIVED BY, AND ACCRUING TO, SUCH CORPORATION
4 DURING THE FISCAL YEAR COMMENCING IN THE CALENDAR YEAR 1977 AND
5 DURING EACH FISCAL YEAR THEREAFTER TO THE FISCAL YEAR COMMENCING
6 IN THE CALENDAR YEAR 1984 AND AT A RATE OF NINE AND ONE-HALF PER
7 CENT FOR EACH FISCAL YEAR COMMENCING IN THE CALENDAR YEAR 1984
8 AND EACH FISCAL YEAR THEREAFTER. NO PENALTY PRESCRIBED BY
9 SUBSECTION (E) OF SECTION 1202.1 SHALL BE ASSESSED AGAINST A
10 CORPORATION FOR THE ADDITIONAL TAX WHICH MAY BE DUE AS A RESULT
11 OF THE INCREASE IN TAX RATE FROM NINE AND ONE-HALF PER CENT TO
12 TEN AND ONE-HALF PER CENT IMPOSED RETROACTIVELY BY THIS SECTION
13 FOR THE CALENDAR YEAR 1977 OR FOR THE FISCAL YEAR COMMENCING IN
14 1977.
15 SECTION 4. SECTIONS 501, 502, 503, 505 AND 506 OF THE ACT
16 ARE REPEALED.
17 SECTION 5. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:
18 ARTICLE XII
19 CIGARETTE TAX
20 PART I
21 INTRODUCTORY PROVISIONS
22 SECTION 1201. DEFINITIONS.--AS USED IN THIS ARTICLE:
23 "ARTICLE." ARTICLE XII AND THE RULES AND REGULATIONS
24 PROMULGATED THEREUNDER.
25 "BUREAU." THE BUREAU OF CIGARETTE AND BEVERAGE TAXES OF THE
26 PENNSYLVANIA DEPARTMENT OF REVENUE.
27 "CIGARETTE." ANY ROLL FOR SMOKING MADE WHOLLY OR IN PART OF
28 TOBACCO, THE WRAPPER OR COVER OF WHICH IS MADE OF ANY SUBSTANCE
29 OR MATERIAL OTHER THAN TOBACCO REGARDLESS OF THE SIZE OR SHAPE
30 OF THE ROLL AND REGARDLESS OF WHETHER OR NOT THE TOBACCO IS
19810H0082B2353 - 10 -
1 FLAVORED, ADULTERATED OR MIXED WITH ANY OTHER INGREDIENT.
2 "CIGARETTE STAMPING AGENCY." ANY PERSON, AS DEFINED IN THIS
3 ARTICLE, WHO SHALL BE LICENSED AS SUCH BY THE DEPARTMENT FOR THE
4 PURPOSE OF AFFIXING CIGARETTE TAX STAMPS TO PACKAGES OF
5 CIGARETTES AND TRANSMITTING THE PROPER TAX TO THE COMMONWEALTH.
6 "CIGARETTE TAX STAMP." ANY STAMP, TAX METER IMPRESSION,
7 LABEL, PRINT OR IMPRESSION WHICH THE DEPARTMENT BY REGULATION
8 SHALL AUTHORIZE TO EVIDENCE THE PAYMENT OF THE TAX IMPOSED BY
9 THIS ARTICLE.
10 "CIGARETTE VENDING MACHINE." ANY MECHANICAL DEVICE FROM
11 WHICH CIGARETTES ARE DISPENSED FOR A CONSIDERATION.
12 "DEALER." ANY CIGARETTE STAMPING AGENCY, WHOLESALER OR
13 RETAILER AS THESE TERMS ARE MORE SPECIFICALLY DEFINED HEREIN.
14 WHENEVER, IN THE PROVISIONS OF THIS ARTICLE, THE WORD "DEALER"
15 IS USED, IT SHALL INCLUDE ALL OF THE ABOVE MENTIONED CATEGORIES.
16 NOTHING CONTAINED IN THIS ARTICLE SHALL PRECLUDE ANY PERSON FROM
17 BEING A CIGARETTE STAMPING AGENCY, WHOLESALER, OR RETAILER,
18 PROVIDED SUCH PERSON MEETS THE REQUIREMENTS FOR EACH CATEGORY OF
19 DEALER.
20 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH
21 OF PENNSYLVANIA.
22 "INVOICE OR DELIVERY TICKET." ANY INVOICE OR DELIVERY TICKET
23 WHICH SHOWS THE TRUE NAME AND COMPLETE AND EXACT ADDRESS OF THE
24 CONSIGNOR OR SELLER, THE TRUE NAME AND COMPLETE AND EXACT
25 ADDRESS OF THE CONSIGNEE OR PURCHASER, THE QUANTITY AND BRANDS
26 OF THE CIGARETTES TRANSPORTED, THE CORRECT DATE OF PURCHASE OR
27 SHIPMENT AND THE TRUE NAME AND COMPLETE AND EXACT ADDRESS OF THE
28 PERSON WHO SHALL ASSUME THE PAYMENT OF THE PENNSYLVANIA STATE
29 TAX OR THE TAX, IF ANY, OF THE STATE OR FOREIGN COUNTRY AT THE
30 POINT OF ULTIMATE DESTINATION.
19810H0082B2353 - 11 -
1 "PACK OF CIGARETTES." THE SMALLEST PACKAGE, BOX OR CONTAINER
2 IN OR FROM WHICH RETAIL SALES OF CIGARETTES ARE NORMALLY MADE.
3 "PERSON." ANY INDIVIDUAL, UNINCORPORATED ASSOCIATION,
4 COMPANY, CORPORATION, JOINT STOCK COMPANY, GROUP, AGENCY,
5 SYNDICATE, TRUST OR TRUSTEE, RECEIVER, FIDUCIARY, PARTNERSHIP,
6 CONSERVATOR, AND ANY POLITICAL SUBDIVISION OF THE COMMONWEALTH
7 OF PENNSYLVANIA, OR ANY OTHER STATE. WHENEVER USED IN ANY OF THE
8 PROVISIONS OF THIS ARTICLE PRESCRIBING OR IMPOSING PENALTIES,
9 THE WORD "PERSON" AS APPLIED TO A PARTNERSHIP, UNINCORPORATED
10 ASSOCIATION OR OTHER JOINT VENTURE, MEANS THE PARTNERS OR
11 MEMBERS THEREOF, AND AS APPLIED TO A CORPORATION, MEANS ALL THE
12 OFFICERS AND DIRECTORS THEREOF.
13 "RETAILER."
14 (1) ANY PERSON, WHO, IN THE USUAL COURSE OF BUSINESS,
15 PURCHASES OR RECEIVES CIGARETTES FROM ANY SOURCE WHATSOEVER FOR
16 THE PURPOSE OF SALE TO THE ULTIMATE CONSUMER.
17 (2) ANY PERSON, WHO IN THE USUAL COURSE OF BUSINESS, OWNS,
18 LEASES, OR OTHERWISE OPERATES ONE OR MORE VENDING MACHINES FOR
19 THE PURPOSE OF SALE OF CIGARETTES TO THE ULTIMATE CONSUMER.
20 (3) ANY PERSON, WHO IN ANY MANNER, BUYS, SELLS, TRANSFERS OR
21 DEALS IN CIGARETTES FOR PROFIT, WHO IS NOT LICENSED AS A
22 CIGARETTE STAMPING AGENCY OR WHOLESALER UNDER THIS ARTICLE.
23 "SALE." ANY TRANSFER OF OWNERSHIP, CUSTODY OR POSSESSION OF
24 CIGARETTES FOR A CONSIDERATION; ANY EXCHANGE, BARTER OR GIFT; OR
25 ANY OFFER TO SELL OR TRANSFER THE OWNERSHIP, CUSTODY OR
26 POSSESSION OF CIGARETTES FOR CONSIDERATION.
27 "UNSTAMPED CIGARETTES." ANY PACK OF CIGARETTES TO WHICH THE
28 PROPER AMOUNT OF GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS HAVE
29 NOT BEEN AFFIXED. ANY PACK OF CIGARETTES CONTAINING A FORGED,
30 BOGUS OR COUNTERFEIT PENNSYLVANIA CIGARETTE TAX STAMP OR ANY
19810H0082B2353 - 12 -
1 PACK OF CIGARETTES BEARING STOLEN, LOST OR MISPLACED GENUINE
2 PENNSYLVANIA CIGARETTE TAX STAMPS WHICH HAVE NOT BEEN AFFIXED TO
3 SAID PACK OF CIGARETTES BY A PROPER CIGARETTE STAMPING AGENCY AS
4 PROVIDED FOR IN THIS ARTICLE, OR ANY PACK OF CIGARETTES BEARING
5 GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS FOR WHICH THE TAX HAS
6 NOT BEEN PAID AS A RESULT OF ANY WILFUL OR INTENTIONAL ARTICLE
7 FOR THE PURPOSE OF EVADING THE PAYMENT OF THE PENNSYLVANIA
8 CIGARETTE TAX SHALL BE CONSIDERED, UNDER THE PROVISIONS OF THIS
9 ARTICLE, TO BE A PACKAGE OF "UNSTAMPED CIGARETTES."
10 "VENDING MACHINE OPERATOR." ANY PERSON WHO PLACES OR
11 SERVICES ONE OR MORE CIGARETTE VENDING MACHINES, WHETHER OWNED,
12 LEASED OR OTHERWISE OPERATED BY HIM, AT LOCATIONS FROM WHICH
13 CIGARETTES ARE SOLD TO THE ULTIMATE CONSUMER. THE OWNER OR
14 TENANT OF THE PREMISES UPON WHICH A VENDING MACHINE IS PLACED
15 SHALL NOT BE CONSIDERED A VENDING MACHINE OPERATOR IF HIS SOLE
16 REMUNERATION THEREFROM IS A FLAT RENTAL FEE OR COMMISSION BASED
17 UPON THE NUMBER OR VALUE OF CIGARETTES SOLD FROM THE MACHINE,
18 UNLESS SAID OWNER OR TENANT ACTUALLY OWNS SAID VENDING MACHINE
19 OR LEASES SAID VENDING MACHINE UNDER AN AGREEMENT WHEREBY THE
20 PROFITS FROM THE SALE OF SAID CIGARETTES DIRECTLY INURE TO HIS
21 BENEFIT.
22 "WHOLESALER."
23 (1) ANY PERSON WHO, IN THE USUAL COURSE OF BUSINESS, SELLS
24 CIGARETTES WITHIN THIS COMMONWEALTH TO RETAIL DEALERS, OTHER
25 WHOLESALE DEALERS, OR ANY OTHER PERSONS WHO SHALL BUY SAID
26 CIGARETTES FROM HIM OR HER FOR THE PURPOSE OF RESALE TO THE
27 ULTIMATE CONSUMER; PROVIDED THAT SUCH PERSON MAINTAINS AN
28 ESTABLISHED PLACE OF BUSINESS FOR THE STORAGE AND DISTRIBUTION
29 OF CIGARETTES.
30 (2) ANY PERSON WHO IS ENGAGED IN THE BUSINESS OF
19810H0082B2353 - 13 -
1 DISTRIBUTING CIGARETTES THROUGH VENDING MACHINES TO THE ULTIMATE
2 CONSUMER BY MEANS OF PLACING SAID CIGARETTE VENDING MACHINE,
3 OWNED OR LEASED BY THEM, IN VARIOUS OUTLETS WITHIN THE
4 COMMONWEALTH, AND WHO SHALL PAY TO THE OWNER OR LESSEE OF THE
5 PREMISES A COMMISSION OR RENTAL FOR THE USE OF SAID PREMISES:
6 PROVIDED, HOWEVER, THAT SUCH VENDING MACHINE OPERATOR SHALL
7 OPERATE AT LEAST TEN VENDING MACHINES: AND FURTHER PROVIDED,
8 THAT SAID VENDING MACHINE OPERATOR SHALL MEET ALL OF THE OTHER
9 REQUIREMENTS FOR LICENSING OF WHOLESALERS UNDER THIS ARTICLE,
10 INCLUDING MAINTAINING AN ESTABLISHED PLACE OF BUSINESS FOR THE
11 STORAGE AND DISTRIBUTION OF CIGARETTES.
12 (3) ANY PERSON WHO OWNS AND OPERATES NO LESS THAN FIVE
13 STORES WHICH ARE RETAIL OUTLETS AND WHO PURCHASES CIGARETTES
14 FROM A CIGARETTE STAMPING AGENCY OR ANOTHER WHOLESALER FOR
15 RESALE TO THE ULTIMATE CONSUMER: PROVIDED, THAT SUCH PERSON
16 MAINTAINS COMPLETE AND ACCURATE RECORDS OF ALL PURCHASES AND
17 SALES IN HIS OR HER MAIN OFFICE AND ALSO IN THE RETAIL OUTLET.
18 PART II
19 IMPOSITION OF TAX
20 SECTION 1206. INCIDENCE AND RATE OF TAX.--AN EXCISE TAX IS
21 HEREBY IMPOSED AND ASSESSED UPON THE SALE OR POSSESSION OF
22 CIGARETTES WITHIN THIS COMMONWEALTH AT THE RATE OF NINE-TENTHS
23 OF A CENT PER CIGARETTE.
24 SECTION 1207. SALES TO COMMONWEALTH AND POLITICAL
25 SUBDIVISIONS.--THE EXCISE TAX IMPOSED BY THIS ARTICLE IS HEREBY
26 LEVIED UPON THE SALE OF CIGARETTES TO ANY PERSON AS DEFINED
27 UNDER THE PROVISIONS OF THIS ARTICLE AND TO THE COMMONWEALTH OF
28 PENNSYLVANIA OR ANY OTHER STATE, OR ANY DEPARTMENT, BOARD,
29 COMMISSION, AUTHORITY OR AGENCY THEREOF.
30 SECTION 1208. LIMITATION OF TAX.--ONLY ONE SALE SHALL BE
19810H0082B2353 - 14 -
1 TAXABLE AND USED IN COMPUTING THE AMOUNT OF TAX DUE HEREUNDER
2 WHETHER SAID SALE BE OF INDIVIDUAL CIGARETTES, PACKAGES, CARTONS
3 OR CASES.
4 SECTION 1209. EXEMPTIONS FROM TAX.--(A) NO TAX IMPOSED BY
5 THIS ARTICLE SHALL BE LEVIED UPON THE POSSESSION OR SALE OF
6 CIGARETTES WHICH THIS COMMONWEALTH IS PROHIBITED FROM TAXING
7 UNDER THE CONSTITUTION OR STATUTES OF THE UNITED STATES. IN
8 ADDITION, WHEN THE SELLER AND PURCHASER HAVE REGISTERED WITH THE
9 DEPARTMENT AND HAVE OBTAINED EXEMPTION CERTIFICATES IN
10 ACCORDANCE WITH SUCH REGULATIONS AS THE DEPARTMENT SHALL
11 PRESCRIBE, THE FOLLOWING SALES ARE EXEMPT:
12 (1) SALES TO VETERANS' ORGANIZATIONS APPROVED BY THE
13 DEPARTMENT, IF THE CIGARETTES ARE BEING PURCHASED BY THE
14 ORGANIZATION FOR GRATUITOUS ISSUE TO VETERAN PATIENTS IN
15 FEDERAL, STATE OR STATE-AIDED HOSPITALS.
16 (2) SALES TO VOLUNTARY UNINCORPORATED ORGANIZATIONS OF
17 MILITARY FORCES PERSONNEL OPERATING UNDER REGULATIONS
18 PROMULGATED BY THE UNITED STATES SECRETARY OF DEFENSE OR
19 DEPARTMENTS UNDER HIS JURISDICTION.
20 (3) SALES TO RETAIL DEALERS LOCATED IN VETERANS'
21 ADMINISTRATION HOSPITALS FOR SALES TO PATIENTS IN SUCH
22 HOSPITALS.
23 (B) THE DEPARTMENT MAY OTHERWISE PROMULGATE REGULATIONS TO
24 RELIEVE MANUFACTURERS AND DEALERS FROM PAYMENT OF TAX ON
25 CIGARETTES SOLD AND DELIVERED TO POINTS INSIDE AND OUTSIDE THE
26 COMMONWEALTH FOR SALE AND USE OUTSIDE THE COMMONWEALTH OR SOLD
27 TO PURCHASERS DESIGNATED AS EXEMPT BY THE PROVISIONS OF THIS
28 SECTION. HOWEVER, ALL SALES SHALL BE PRESUMED TO BE TAXABLE AND
29 THE BURDEN SHALL BE UPON THE PERSON CLAIMING AN EXEMPTION TO
30 PROVE HIS RIGHT THERETO.
19810H0082B2353 - 15 -
1 SECTION 1210. LIABILITY FOR COLLECTION OF TAX.--EVERY PERSON
2 SHALL BE LIABLE TO PAY INTO THE STATE TREASURY, THROUGH THE
3 DEPARTMENT, THE TAX IMPOSED BY THIS ARTICLE ON ALL CIGARETTES
4 RECEIVED BY HIM TO WHICH PENNSYLVANIA CIGARETTE TAX STAMPS HAVE
5 NOT BEEN PREVIOUSLY AFFIXED, THE TAX PAID, OR EXEMPTED BY THE
6 PROVISIONS OF THIS ARTICLE. NOTHING IN THIS SECTION SHALL
7 RELIEVE A CIGARETTE STAMPING AGENCY FROM ITS LIABILITY TO PAY
8 THE TAX IMPOSED BY THIS ARTICLE ON ALL CIGARETTES RECEIVED BY IT
9 TO WHICH PENNSYLVANIA CIGARETTE TAX STAMPS HAVE NOT BEEN
10 PREVIOUSLY AFFIXED, THE TAX PAID, OR EXEMPTED BY THE PROVISIONS
11 OF THIS ARTICLE.
12 PART III
13 METHOD OF PAYMENT OF TAX
14 SECTION 1215. STAMP TO EVIDENCE THE TAX.--(A) THE
15 DEPARTMENT SHALL BY REGULATION REQUIRE EVERY CIGARETTE STAMPING
16 AGENCY OR ULTIMATE CONSUMER, TO USE CIGARETTE TAX STAMPS TO
17 EVIDENCE THE PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE UNLESS
18 SUCH STAMPS HAVE BEEN AFFIXED TO THE PACKS OF CIGARETTES AND
19 PROPERLY CANCELLED BEFORE SUCH CIGARETTE STAMPING AGENCY OR
20 ULTIMATE CONSUMER RECEIVED THEM.
21 (B) THE DEPARTMENT SHALL BY REGULATION AUTHORIZE THE SALE OF
22 CIGARETTE TAX STAMPS AT SUCH PLACES AND AT SUCH TIMES AS IT
23 DEEMS NECESSARY AND THE DEPARTMENT SHALL PRESCRIBE THE MANNER,
24 TIME AND CONDITIONS UNDER WHICH THE PAYMENT OF TAX SHALL BE
25 MADE.
26 (C) THE DEPARTMENT SHALL ALSO PRESCRIBE THE TYPE OF
27 CIGARETTE TAX STAMPS WHICH SHALL BE USED, TO EVIDENCE PAYMENT OF
28 THE TAX. NOTHING IN THIS PROVISION SHALL BE CONSTRUED AS A
29 LIMITATION UPON THE DEPARTMENT TO PRESCRIBE VARIOUS METHODS OF
30 AFFIXING CIGARETTE TAX STAMPS AND SAID DEPARTMENT SHALL HAVE THE
19810H0082B2353 - 16 -
1 AUTHORITY TO PRESCRIBE ONE OR MORE OF SEVERAL TYPES OF TAX
2 STAMPS WHICH SHALL BE USED BY A PARTICULAR CIGARETTE STAMPING
3 AGENCY WHENEVER, IN THE REASONABLE EXERCISE OF ITS POWERS, IT
4 SHALL BE DEEMED NECESSARY FOR THE PROTECTION OF THE REVENUE.
5 (D) UNDER NO CIRCUMSTANCES SHALL ANY CIGARETTE STAMPING
6 AGENCY BE PERMITTED TO SELL, TRANSFER OR DELIVER TO ANY PERSON
7 ANY PACKAGES OF UNSTAMPED CIGARETTES, OR ANY UNUSED CIGARETTE
8 TAX STAMPS UNLESS SPECIFICALLY PERMITTED BY THE PROVISIONS OF
9 THIS ARTICLE.
10 (E) THE DEPARTMENT SHALL BY REGULATION PERMIT A CIGARETTE
11 STAMPING AGENCY TO PAY FOR PURCHASES ON A DEFERRED BASIS, UPON
12 THE FILING OF A SURETY BOND, OF THE TYPE APPROVED BY THE
13 DEPARTMENT, WITH THE DEPARTMENT, IN AN AMOUNT DEEMED SUFFICIENT
14 BY THE DEPARTMENT TO PROTECT THE REVENUE, SAID BOND TO BE
15 EXECUTED BY THE CIGARETTE STAMPING AGENCY AS PRINCIPAL AND BY A
16 CORPORATE SURETY COMPANY, DULY AUTHORIZED TO ENGAGE IN SUCH
17 BUSINESS IN THE COMMONWEALTH OF PENNSYLVANIA, AS SURETY. THE
18 DEPARTMENT SHALL DENY DEFERRED PURCHASE PLANS TO ANY STAMPING
19 AGENCY IN ANY STATE WHERE SUCH STATE DENIES STAMPING AGENCIES IN
20 PENNSYLVANIA THE RIGHT TO USE DEFERRED PURCHASE PLANS.
21 SECTION 1216. COMMISSIONS ON SALES.--CIGARETTE STAMPING
22 AGENCIES SHALL BE ENTITLED TO A COMMISSION OF THREE PER CENT OF
23 THE VALUE OF ALL PENNSYLVANIA CIGARETTE TAX STAMPS PURCHASED BY
24 THEM FROM THE DEPARTMENT OR ITS AUTHORIZED AGENTS TO BE USED BY
25 THEM IN THE STAMPING OF PACKAGES OF CIGARETTES FOR SALE WITHIN
26 THE COMMONWEALTH OF PENNSYLVANIA, SAID COMMISSION TO BE PAID TO
27 THE CIGARETTE STAMPING AGENT AS COMPENSATION FOR HIS OR HER
28 SERVICES AND EXPENSES AS AGENT IN AFFIXING SUCH STAMPS. SAID
29 CIGARETTE STAMPING AGENCIES SHALL BE ENTITLED TO DEDUCT FROM THE
30 MONEYS TO BE PAID BY THEM FOR SUCH STAMPS AN AMOUNT, EQUAL TO
19810H0082B2353 - 17 -
1 THREE PER CENT OF THE VALUE OF SAID STAMPS PURCHASED BY THEM
2 WHEN SUCH CIGARETTE STAMPING AGENCIES HAVE PURCHASED SAID
3 PENNSYLVANIA CIGARETTE TAX STAMPS DIRECTLY FROM THE DEPARTMENT
4 OR ITS AUTHORIZED AGENTS. THIS SECTION SHALL NOT APPLY TO
5 PURCHASES OF STAMPS BY A CIGARETTE STAMPING AGENCY IN AN AMOUNT
6 LESS THAN ONE HUNDRED DOLLARS ($100).
7 SECTION 1217. SAMPLE PACKS OF CIGARETTES.--(A) THE
8 DEPARTMENT SHALL, BY REGULATION, GOVERN THE RECEIPT,
9 DISTRIBUTION OF AND PAYMENT OF TAX ON SAMPLE PACKS OF CIGARETTES
10 ISSUED FOR FREE DISTRIBUTION.
11 (B) NOTHING IN THIS ARTICLE OR THE REGULATIONS PROMULGATED
12 THEREUNDER SHALL PROHIBIT THE BRINGING INTO THIS COMMONWEALTH BY
13 A MANUFACTURER OF SAMPLE PACKS OF CIGARETTES CONTAINING NOT MORE
14 THAN FIVE CIGARETTES AND SUCH PACKS SHALL BE DELIVERED AND
15 DISTRIBUTED ONLY THROUGH LICENSED DEALERS OR THE MANUFACTURERS
16 OR THEIR SALES REPRESENTATIVES. THE TAX SHALL BE PAID BY THE
17 MANUFACTURER BUT NO TAX STAMP OR TAX IMPRESSION NEED BE USED ON
18 THE SAMPLE PACKS OF CIGARETTES PROVIDED ALL SUCH PACKS BEAR THE
19 LEGEND "ALL APPLICABLE STATE TAXES HAVE BEEN PAID." UNDER NO
20 CIRCUMSTANCES SHALL ANY UNSTAMPED SAMPLE CIGARETTES BE SOLD
21 WITHIN THE COMMONWEALTH OF PENNSYLVANIA.
22 PART IV
23 LICENSING PROVISIONS
24 SECTION 1221. LICENSING OF CIGARETTE DEALERS.--(A) NO
25 PERSON, UNLESS ALL OF HIS SALES OF CIGARETTES ARE EXEMPT FROM
26 PENNSYLVANIA CIGARETTE TAX, SHALL SELL, TRANSFER OR DELIVER ANY
27 CIGARETTES WITHIN THIS COMMONWEALTH WITHOUT FIRST OBTAINING THE
28 PROPER LICENSE PURSUANT TO THE PROVISIONS OF THIS ARTICLE.
29 (B) EVERY APPLICANT FOR A DEALER'S LICENSE SHALL COMPLETE
30 AND FILE AN APPLICATION WITH THE DEPARTMENT AND SAID APPLICATION
19810H0082B2353 - 18 -
1 SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE
2 DEPARTMENT, BY REGULATION, SHALL PRESCRIBE, AND SHALL SET FORTH
3 TRUTHFULLY AND ACCURATELY THE INFORMATION DESIRED BY THE
4 DEPARTMENT. IF SAID APPLICATION IS APPROVED, THE DEPARTMENT
5 SHALL LICENSE SAID DEALER FOR A PERIOD OF ONE YEAR AND SAID
6 LICENSE MAY BE RENEWED ANNUALLY THEREAFTER.
7 SECTION 1222. LICENSING OF CIGARETTE STAMPING AGENTS.--(A)
8 THE DEPARTMENT MAY LICENSE AS ITS AGENT FOR A ONE YEAR PERIOD
9 (AND MAY RENEW SAID LICENSE FOR FURTHER PERIODS OF ONE YEAR) ANY
10 PERSON OF GOOD MORAL CHARACTER WHO SHALL MEET THE REQUIREMENTS
11 IMPOSED BY THE FOLLOWING PROVISIONS FOR THE PRIVILEGE OF
12 OPERATING AS A CIGARETTE STAMPING AGENCY:
13 (1) SAID APPLICANT SHALL BE A WHOLESALE CIGARETTE DEALER
14 LICENSED BY THE COMMONWEALTH OF PENNSYLVANIA.
15 (2) THE PREMISES IN WHICH SAID APPLICANT PROPOSES TO CONDUCT
16 HIS OR HER BUSINESS ARE ADEQUATE TO PROTECT THE REVENUE.
17 (3) THE SAID APPLICANT IS A PERSON OF GOOD MORAL CHARACTER,
18 OF REASONABLE FINANCIAL STABILITY AND REASONABLY EXPERIENCED IN
19 THE WHOLESALE CIGARETTE BUSINESS.
20 (4) THE APPLICANT, OR ANY SHAREHOLDER CONTROLLING MORE THAN
21 TEN PER CENT OF THE STOCK IF SAID APPLICANT IS A CORPORATION OR
22 ANY OFFICER OR DIRECTOR IF SAID APPLICANT IS A CORPORATION,
23 SHALL NOT HAVE BEEN CONVICTED OF ANY CRIME INVOLVING MORAL
24 TURPITUDE.
25 (B) THE DEPARTMENT SHALL, BY REGULATION, PRESCRIBE THE FORM,
26 CONTENT AND MANNER OF SAID APPLICATION BY WHICH THE LICENSING OF
27 A CIGARETTE STAMPING AGENCY SHALL BE MADE.
28 (C) SAID CIGARETTE STAMPING AGENCY LICENSE SHALL BE VALID
29 FOR ONE SPECIFIC LOCATION ONLY.
30 (D) THE DEPARTMENT MAY REJECT ANY APPLICATION FOR A NEW OR
19810H0082B2353 - 19 -
1 RENEWAL LICENSE WHENEVER IT SHALL FIND THAT ANY OF THE
2 AFOREMENTIONED REQUIREMENTS HAVE NOT BEEN MET, OR SHALL FIND
3 THAT SUCH APPLICANT OR LICENSEE HAS (I) FAILED TO DISCLOSE ANY
4 MATERIAL INFORMATION REQUIRED; (II) HAS MADE ANY MATERIAL FALSE
5 STATEMENT IN HIS APPLICATION; (III) HAS VIOLATED ANY PROVISION
6 OF THIS ARTICLE.
7 (E) FOR PURPOSES OF THIS SECTION, A PERSON CONVICTED OF
8 COMMITTING ANY FELONY, ANY INFAMOUS CRIME OR ANY CRIME INVOLVING
9 MORAL TURPITUDE SHALL NOT BE A "PERSON OF GOOD MORAL CHARACTER"
10 AND SHALL NOT BE LICENSED AS A CIGARETTE STAMPING AGENT.
11 SECTION 1223. LICENSING OF WHOLESALERS.--APPLICANTS FOR A
12 WHOLESALE LICENSE OR RENEWAL THEREOF SHALL MEET THE FOLLOWING
13 REQUIREMENTS:
14 (1) THE PREMISES ON WHICH SAID APPLICANT PROPOSES TO CONDUCT
15 HIS OR HER BUSINESS ARE ADEQUATE TO PROTECT THE REVENUE.
16 (2) SAID APPLICANT IS A PERSON OF REASONABLE FINANCIAL
17 STABILITY AND REASONABLE BUSINESS EXPERIENCE. THE APPLICANT OR
18 ANY SHAREHOLDER CONTROLLING MORE THAN TEN PER CENT OF THE STOCK,
19 IF THE APPLICANT IS A CORPORATION OR ANY OFFICER OR DIRECTOR IF
20 SAID APPLICANT IS A CORPORATION, SHALL NOT HAVE BEEN CONVICTED
21 OF ANY CRIME INVOLVING MORAL TURPITUDE.
22 (3) SAID APPLICANT SHALL NOT HAVE FAILED TO DISCLOSE ANY
23 MATERIAL INFORMATION REQUIRED BY THE DEPARTMENT.
24 (4) SAID APPLICANT SHALL NOT HAVE MADE ANY MATERIAL FALSE
25 STATEMENT IN HIS APPLICATION.
26 (5) SAID APPLICANT SHALL NOT HAVE VIOLATED ANY PROVISION OF
27 THIS ARTICLE.
28 (6) THE WHOLESALE DEALER'S LICENSE SHALL BE VALID FOR ONE
29 SPECIFIC LOCATION ONLY.
30 SECTION 1224. LICENSING OF RETAILERS.--APPLICANT FOR RETAIL
19810H0082B2353 - 20 -
1 LICENSE OR RENEWAL THEREOF SHALL MEET THE FOLLOWING
2 REQUIREMENTS:
3 (1) THE PREMISES IN WHICH SAID APPLICANT PROPOSES TO CONDUCT
4 HIS BUSINESS ARE ADEQUATE TO PROTECT THE REVENUES.
5 (2) SAID APPLICANT SHALL NOT HAVE FAILED TO DISCLOSE ANY
6 MATERIAL INFORMATION REQUIRED BY THE DEPARTMENT.
7 (3) SAID APPLICANT SHALL NOT HAVE ANY MATERIAL FALSE
8 STATEMENT IN HIS APPLICATION.
9 (4) SAID APPLICANT SHALL NOT HAVE VIOLATED ANY PROVISION OF
10 THIS ARTICLE.
11 SECTION 1225. SUSPENSION OR REVOCATION OF LICENSE.--IF THE
12 DEPARTMENT HAS REASON TO BELIEVE THAT ANY PERSON HOLDING A
13 LICENSE HAS NOT, IN GOOD FAITH, COMPLIED WITH ALL OF THE
14 PROVISIONS OF THIS ARTICLE OR HAS VIOLATED ANY OF THE CONDITIONS
15 OR REQUIREMENTS IMPOSED UNDER SECTION 1221, 1222, 1223 OR 1224,
16 THE DEPARTMENT SHALL PREPARE A COMPLAINT STATING THE FACTS
17 CHARGED AND REQUESTING SUCH PERSON TO SHOW CAUSE WHY HIS LICENSE
18 SHOULD NOT BE SUSPENDED OR REVOKED. SAID COMPLAINT SHALL BE
19 PRESENTED TO THE CIGARETTE TAX BOARD AS MENTIONED HEREINAFTER,
20 AND IF AFTER A HEARING CONDUCTED BY THE CIGARETTE TAX BOARD AS
21 HEREINAFTER MENTIONED, THE DEPARTMENT FINDS THAT SUCH PERSON HAS
22 NOT IN GOOD FAITH COMPLIED WITH THIS ARTICLE AND WITH THE
23 CONDITIONS OR REQUIREMENTS UNDER SECTIONS 1221 TO 1224
24 INCLUSIVE, SUCH LICENSE SHALL BE SUSPENDED OR REVOKED FOR SUCH
25 PERIOD AS THE DEPARTMENT MAY DEEM PROPER.
26 SECTION 1226. CIGARETTE TAX BOARD.--(A) THERE IS HEREBY
27 CREATED A CIGARETTE TAX BOARD CONSISTING OF THREE MEMBERS
28 DESIGNATED BY THE SECRETARY OF REVENUE, ONE OF WHOM SHALL BE A
29 DEPUTY SECRETARY OF THE DEPARTMENT, AND ONE OF WHOM SHALL BE AN
30 ATTORNEY AT LAW. THE CIGARETTE TAX BOARD SHALL TAKE TESTIMONY,
19810H0082B2353 - 21 -
1 AFTER PROPER NOTICES AS HEREINAFTER MENTIONED, AND SHALL MAKE
2 ITS RECOMMENDATIONS IN WRITING TO THE SECRETARY OF REVENUE UNDER
3 THE PROVISIONS OF THIS ARTICLE.
4 (B) WHENEVER ANY APPLICANT FOR LICENSE OR RENEWAL THEREOF IS
5 AGGRIEVED BY THE DETERMINATION OF THE DEPARTMENT OR BUREAU, HE
6 MAY FILE A COMPLAINT WITH THE CIGARETTE TAX BOARD, HARRISBURG,
7 PENNSYLVANIA, ASSIGNING SPECIFICALLY HIS REASONS FOR BELIEVING
8 THAT THE DEPARTMENT OR BUREAU ACTED IMPROPERLY. SAID COMPLAINT
9 SHALL BE FILED WITHIN THIRTY DAYS AFTER NOTICE BY THE DEPARTMENT
10 OR BUREAU OF ITS DETERMINATION OF HIS APPLICATION. WHENEVER THE
11 BUREAU DETERMINES THAT A VIOLATION OF THIS ARTICLE HAS OCCURRED,
12 IT MAY FILE A COMPLAINT WITH THE CIGARETTE TAX BOARD ASSIGNING
13 SPECIFICALLY ITS REASONS FOR BELIEVING THAT THE PROVISIONS OF
14 THIS ARTICLE HAVE BEEN VIOLATED. SAID COMPLAINT SHALL BE FILED
15 BY THE BUREAU WITHIN THIRTY DAYS AFTER FINAL DETERMINATION OF
16 THOSE FACTS WHICH GIVE RISE TO ITS BELIEF THAT THE PROVISIONS OF
17 THIS ARTICLE HAVE BEEN VIOLATED. UPON RECEIPT OF SAID COMPLAINT
18 THE CIGARETTE TAX BOARD, IF IT DETERMINES THAT SAID COMPLAINT
19 RAISES AN ISSUE OF FACT, SHALL WITHIN THIRTY DAYS AFTER RECEIPT
20 OF SAID PETITION, ISSUE A CITATION DIRECTING THE APPLICANT,
21 DEALER OR BUREAU, AS THE CASE MAY BE, TO APPEAR AT A HEARING TO
22 BE SCHEDULED BY THE CIGARETTE TAX BOARD IN HARRISBURG WITHIN
23 SAID THIRTY DAY PERIOD, AND SHALL AFFORD THE AGGRIEVED PARTY AN
24 OPPORTUNITY TO BE HEARD AT SAID HEARING, WHICH SHALL BE
25 CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF TITLE 2 OF THE
26 PENNSYLVANIA CONSOLIDATED STATUTES (RELATING TO ADMINISTRATIVE
27 LAW AND PROCEDURE).
28 (C) WITHIN THIRTY DAYS AFTER THE TERMINATION OF SAID
29 HEARING, THE CIGARETTE TAX BOARD SHALL MAKE ITS RECOMMENDATION
30 TO THE SECRETARY OF REVENUE, IN WRITING, AND WITHIN FIFTEEN DAYS
19810H0082B2353 - 22 -
1 SUBSEQUENT THERETO, THE SECRETARY OF REVENUE SHALL RENDER A
2 FINAL DECISION. ANY PARTY AGGRIEVED BY THE FINAL DECISION OF THE
3 SECRETARY OF REVENUE SHALL HAVE THE RIGHT TO APPEAL THEREFROM IN
4 ACCORDANCE WITH THE PROVISIONS OF TITLE 2 OF THE PENNSYLVANIA
5 CONSOLIDATED STATUTES.
6 (D) WHENEVER ANY PERSON IS AGGRIEVED BY AN ASSESSMENT ISSUED
7 BY THE DEPARTMENT FOR TAXES DUE THE COMMONWEALTH HE MAY FILE AN
8 APPEAL FROM SAID ASSESSMENT IN ACCORDANCE WITH THE PROCEDURES OF
9 THE ARTICLE OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS "THE
10 FISCAL CODE."
11 SECTION 1227. LICENSE FEES; ISSUANCE AND POSTING OF
12 LICENSE.--(A) AT THE TIME OF MAKING ANY APPLICATION, AN
13 APPLICANT FOR A WHOLESALE CIGARETTE DEALER'S LICENSE SHALL PAY
14 TO THE DEPARTMENT A LICENSE FEE OF TWO HUNDRED FIFTY DOLLARS
15 ($250), AN APPLICANT FOR A RETAIL CIGARETTE DEALER'S LICENSE
16 SHALL PAY TO THE DEPARTMENT A LICENSE FEE OF FIVE DOLLARS ($5),
17 AN APPLICANT FOR A VENDING MACHINE LICENSE SHALL PAY TO THE
18 DEPARTMENT A LICENSE FEE OF FIVE DOLLARS ($5), AN APPLICANT FOR
19 A CIGARETTE STAMPING AGENCY LICENSE, SHALL PAY TO THE DEPARTMENT
20 A FEE OF FIVE HUNDRED DOLLARS ($500).
21 (B) UPON APPROVAL OF THE APPLICATION AND PAYMENT OF THE
22 FEES, THE DEPARTMENT SHALL ISSUE THE PROPER LICENSE WHICH MUST
23 BE CONSPICUOUSLY DISPLAYED AT THE PLACE FOR WHICH ISSUED.
24 SECTION 1228. TRANSFER OF LICENSES.--THE DEPARTMENT MAY
25 PERMIT A DEALER, UNDER SUCH CONDITIONS AS THE DEPARTMENT MAY
26 IMPOSE BY REGULATION, TO TRANSFER A LICENSE FROM ONE LOCATION TO
27 ANOTHER OR FROM ONE CIGARETTE VENDING MACHINE TO ANOTHER.
28 SECTION 1229. DISPOSITION OF LICENSE FEES.--ALL LICENSE FEES
29 IMPOSED AND COLLECTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL
30 BE PAID INTO THE GENERAL FUND.
19810H0082B2353 - 23 -
1 SECTION 1230. EXPIRATION OF LICENSE.--(A) EVERY LICENSE
2 SHALL EXPIRE ON THE LAST DAY OF FEBRUARY NEXT SUCCEEDING THE
3 DATE UPON WHICH IT WAS ISSUED UNLESS SOONER SUSPENDED,
4 SURRENDERED OR REVOKED.
5 (B) AFTER THE EXPIRATION DATE OF THE LICENSE, OR UNLESS
6 SOONER SUSPENDED, SURRENDERED OR REVOKED, IT SHALL BE ILLEGAL
7 FOR ANY DEALER TO ENGAGE DIRECTLY OR INDIRECTLY IN THE BUSINESS
8 HERETOFORE CONDUCTED BY HIM FOR WHICH SAID LICENSE WAS ISSUED.
9 ANY LICENSEE WHO SHALL, AFTER THE EXPIRATION DATE OF SAID
10 LICENSE, ENGAGE IN THE BUSINESS THERETOFORE CONDUCTED BY HIM
11 EITHER BY WAY OF PURCHASE, SALE, STAMPING, DISTRIBUTION, OR IN
12 ANY OTHER MANNER DIRECTLY OR INDIRECTLY ENGAGED IN THE BUSINESS
13 OF DEALING WITH CIGARETTES FOR PROFIT SHALL BE IN VIOLATION OF
14 SECTION 1271 AND BE SUBJECT TO THE PENALTIES PROVIDED THEREIN.
15 SECTION 1231. DUPLICATE LICENSE.--(A) WHENEVER ANY LICENSE
16 IS DEFACED, DESTROYED, OR LOST, THE DEPARTMENT MAY ISSUE A
17 DUPLICATE TO THE HOLDER OF THE DEFACED, DESTROYED OR LOST
18 LICENSE UPON SUBMISSION OF A DUPLICATE LICENSE APPLICATION.
19 EXCEPT AS PROVIDED IN SUBSECTION (B), AT THE TIME OF MAKING ANY
20 APPLICATION FOR A DUPLICATE LICENSE, THE APPLICANT SHALL PAY TO
21 THE DEPARTMENT A FEE OF ONE DOLLAR ($1). THE DUPLICATE LICENSE
22 APPLICATION SHALL BE IN SUCH FORM AND CONTAIN SUCH INFORMATION
23 AS THE DEPARTMENT SHALL PRESCRIBE AND SHALL SET FORTH TRUTHFULLY
24 AND ACCURATELY THE INFORMATION CALLED FOR ON THE FORM.
25 (B) IN THE EVENT A LICENSE IS DEFACED OR DESTROYED IN THE
26 PERFORMANCE OF ANY DUTY IMPOSED BY THIS ARTICLE, THE DEPARTMENT
27 MAY, BY REGULATION, WAIVE THE FEE IMPOSED BY SUBSECTION (A).
28 (C) NO LICENSE SHALL BE ISSUED BY THE DEPARTMENT TO ANY
29 PERSON WITHIN ONE YEAR AFTER REJECTION OF AN APPLICATION,
30 REFUSAL TO RENEW, OR REVOCATION OF AN EXISTING LICENSE; SAID
19810H0082B2353 - 24 -
1 PERIOD OF ONE YEAR TO COMMENCE FROM THE DATE THAT SAID LICENSE
2 IS RETURNED TO THE DEPARTMENT OR APPLICATION IS REJECTED.
3 PART V
4 CIGARETTE VENDING MACHINES
5 SECTION 1235. CIGARETTE VENDING MACHINES; NAMES OF OWNER AND
6 OPERATOR.--THERE SHALL BE CONSPICUOUSLY AND VISIBLY PLACED ON
7 EVERY CIGARETTE VENDING MACHINE THE NAME AND ADDRESS OF THE
8 OWNER AND THE NAME AND ADDRESS OF THE OPERATOR.
9 SECTION 1236. LICENSE FOR MACHINE.--EACH CIGARETTE VENDING
10 MACHINE SHALL HAVE A CURRENT LICENSE WHICH SHALL BE
11 CONSPICUOUSLY AND VISIBLY PLACED ON THE MACHINE.
12 PART VI
13 BUSINESS RECORDS
14 SECTION 1241. RETENTION OF RECORDS.--EVERY LICENSED DEALER
15 SHALL KEEP AND MAINTAIN FOR A PERIOD OF FOUR YEARS, SUCH
16 RECORDS, IN SUCH FORM, AS THE DEPARTMENT SHALL BY REGULATION
17 PRESCRIBE AND SAID RECORDS MUST BE MAINTAINED AT THE LOCATION
18 FOR WHICH THE LICENSE IS ISSUED.
19 SECTION 1242. REPORTS.--EVERY LICENSED DEALER SHALL FILE
20 REPORTS AT SUCH TIMES AND IN SUCH FORM AS THE DEPARTMENT BY
21 REGULATION MAY PRESCRIBE.
22 SECTION 1243. EXAMINATION OF RECORDS; EQUIPMENT AND
23 PREMISES.--(A) THE DEPARTMENT IS HEREBY AUTHORIZED TO EXAMINE
24 THE BOOKS AND RECORDS, THE INVENTORY OF CIGARETTES AND THE
25 PREMISES AND EQUIPMENT OF ANY DEALER IN ORDER TO DETERMINE
26 COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE AND TO VERIFY THE
27 ACCURACY OF THE PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE.
28 EVERY SUCH PERSON IS HEREBY DIRECTED AND REQUIRED TO GIVE TO THE
29 DEPARTMENT OR ITS DULY AUTHORIZED REPRESENTATIVE, THE MEANS,
30 FACILITIES, AND OPPORTUNITY FOR SUCH EXAMINATIONS.
19810H0082B2353 - 25 -
1 (B) ANY PERSON WHO PREVENTS OR HINDERS THE DEPARTMENT OR ANY
2 DESIGNATED AGENT THEREOF FROM MAKING A FULL INSPECTION OF THE
3 PREMISES WHERE CIGARETTES ARE SOLD OR STORED, OR PREVENTS OR
4 HINDERS THE INSPECTION OF INVOICES, BOOKS, RECORDS, EQUIPMENT,
5 INVENTORY OR PAPERS REQUIRED TO BE KEPT, SHALL BE GUILTY OF A
6 VIOLATION OF SECTION 1276 (B) AND SUBJECT TO THE PENALTIES
7 PROVIDED THEREIN.
8 PART VII
9 REFUNDS AND ALLOWANCES
10 SECTION 1251. REFUND OF TAX.--A REFUND OF ANY TAX IMPOSED BY
11 THIS ARTICLE SHALL BE MADE TO A PERSON ON PROOF SATISFACTORY TO
12 THE DEPARTMENT, THAT THE CLAIMANT:
13 (1) PAID THE TAX ON CIGARETTES WITHDRAWN BY HIM FROM THE
14 MARKET.
15 (2) SHIPPED CIGARETTES INTO ANOTHER STATE FOR SALE OR USE
16 THEREIN UNDER THE CONDITIONS AS PROVIDED BY THE REGULATIONS
17 PROMULGATED BY THE DEPARTMENT.
18 (3) SOLD TO PERSONS EXEMPT FROM THE TAX UNDER THE PROVISIONS
19 OF THIS ARTICLE OR REGULATIONS PRESCRIBED THEREUNDER.
20 (4) HAD POSSESSION OF CIGARETTES WHICH WERE LOST (OTHERWISE
21 THAN BY THEFT) OR DESTROYED BY FIRE, CASUALTY OR ACT OF GOD.
22 (5) PAID THE TAX IN ERROR.
23 (6) HAS NO FURTHER USE FOR CIGARETTE STAMPS ORIGINALLY
24 PURCHASED BY HIM.
25 SECTION 1252. ALLOWANCE FOR NONPAYMENT OF TAX.--IF THE TAX
26 HAS NOT YET BEEN PAID ON CIGARETTES FOR WHICH A REFUND OF SAID
27 TAX WOULD BE ALLOWED UNDER SECTION 1251, RELIEF FROM THE PAYMENT
28 OF THE TAX ON SUCH CIGARETTES MAY BE GIVEN UPON THE FILING OF A
29 CLAIM FOR ALLOWANCE IN THE SAME MANNER AS A CLAIM FOR REFUND, OR
30 IN ANY OTHER MANNER PROVIDED BY REGULATIONS.
19810H0082B2353 - 26 -
1 SECTION 1253. LIMITATIONS.--CLAIMS FOR REFUND OR ALLOWANCE
2 OF TAX IMPOSED BY THIS ARTICLE SHALL BE FILED WITHIN ONE YEAR
3 FROM THE DATE OF PAYMENT OF THE TAX OR FROM THE DATE OF THE
4 OCCURRENCE GIVING RISE TO THE REFUND OR ALLOWANCE AND SHALL BE
5 IN SUCH FORM AND CONTAIN SUCH INFORMATION AS THE DEPARTMENT
6 SHALL, BY REGULATION, PRESCRIBE.
7 SECTION 1254. PROCEDURES FOR CLAIMING REFUND.--(A) A DEALER
8 SHALL MAKE A CLAIM FOR A REFUND OF TAX ON A FORM AND IN THE
9 MANNER PRESCRIBED BY THE DEPARTMENT.
10 (B) IF THE DEPARTMENT IS SATISFIED THAT THE DEALER IS
11 ENTITLED TO THE REFUND IT SHALL CERTIFY THE PROPOSED AMOUNT OF
12 SUCH REFUND TO THE BOARD OF FINANCE AND REVENUE FOR APPROVAL
13 AND, HAVING OBTAINED APPROVAL FROM THE BOARD OF FINANCE AND
14 REVENUE, IT SHALL THEREAFTER ISSUE TO THE DEALER THE PROPER
15 REFUND.
16 (C) CLAIMS FOR ALLOWANCE FOR NONPAYMENT OF TAX SHALL BE
17 ALLOWED BY THE DEPARTMENT IF THE DEPARTMENT SHALL BE SATISFIED
18 THAT THE DEALER IS ENTITLED TO SUCH ALLOWANCE.
19 PART VIII
20 ADVERTISING
21 SECTION 1261. ADVERTISING.--ANY DEALER MAY STATE THE AMOUNT
22 OF THE TAX SEPARATELY FROM THE PRICE OF THE CIGARETTES ON ANY
23 DISPLAYS, SIGNS, SALES SLIPS, DELIVERY SLIPS OR STATEMENTS WHICH
24 ADVERTISE OR INDICATE THE PRICE OF SUCH CIGARETTES.
25 PART IX
26 PENALTIES AND ENFORCEMENT
27 SECTION 1271. SALES WITHOUT LICENSE.--(A) ANY DEALER OR
28 OTHER PERSON WHO SHALL, WITHOUT BEING THE HOLDER OF A PROPER
29 UNEXPIRED DEALER'S LICENSE OR VENDING MACHINE LICENSE PROPERLY
30 AFFIXED AS REQUIRED BY THIS ARTICLE, ENGAGE IN THE BUSINESS OF
19810H0082B2353 - 27 -
1 PURCHASING, SELLING, STAMPING, DISTRIBUTING OR IN ANY OTHER
2 MANNER DIRECTLY OR INDIRECTLY ENGAGING IN THE BUSINESS OF
3 DEALING WITH CIGARETTES FOR PROFIT SHALL BE IN VIOLATION OF THIS
4 ARTICLE, AND UPON CONVICTION IN A SUMMARY PROCEEDING SHALL BE
5 SENTENCED TO PAY A FINE OF NOT LESS THAN TWO HUNDRED FIFTY
6 DOLLARS ($250) NOR MORE THAN ONE THOUSAND DOLLARS ($1,000),
7 COSTS OF PROSECUTION OR TO SUFFER IMPRISONMENT FOR A TERM OF NOT
8 MORE THAN THIRTY DAYS, OR BOTH, AT THE DISCRETION OF THE COURT.
9 (B) OPEN DISPLAY OF CIGARETTES IN ANY MANNER SHALL BE PRIMA
10 FACIE EVIDENCE THAT THE PERSON DISPLAYING SUCH CIGARETTES IS
11 DIRECTLY OR INDIRECTLY ENGAGING IN THE BUSINESS OF DEALING WITH
12 CIGARETTES FOR PROFIT.
13 SECTION 1272. SALES OF UNSTAMPED CIGARETTES.--(A) ANY
14 PERSON WHO SHALL SELL ANY PACK OF CIGARETTES WHICH DOES NOT HAVE
15 AFFIXED THERETO THE PROPER AMOUNT OF GENUINE PENNSYLVANIA
16 CIGARETTE TAX STAMPS SHALL, UPON CONVICTION IN A SUMMARY
17 PROCEEDING BE SENTENCED TO PAY COSTS OF PROSECUTION AND A FINE
18 OF NOT LESS THAN ONE HUNDRED DOLLARS ($100) NOR MORE THAN ONE
19 THOUSAND DOLLARS ($1000) OR TO SUFFER IMPRISONMENT FOR A TERM OF
20 NOT MORE THAN SIXTY DAYS, OR BOTH, AT THE DISCRETION OF THE
21 COURT.
22 (B) ANY PERSON WHO SHALL FALSELY OR FRAUDULENTLY,
23 MALICIOUSLY, INTENTIONALLY OR WILFULLY WITH INTENT TO EVADE THE
24 PAYMENT OF THE PENNSYLVANIA CIGARETTE TAX, SELL ANY PACK OF
25 CIGARETTES WHICH DO NOT HAVE AFFIXED THERETO THE PROPER AMOUNT
26 OF GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS SHALL BE GUILTY OF
27 A FELONY AND UPON CONVICTION THEREOF SHALL BE SENTENCED TO PAY A
28 FINE OF NOT MORE THAN FIFTEEN THOUSAND DOLLARS ($15,000), PLUS
29 COSTS OF PROSECUTION OR TO SUFFER IMPRISONMENT FOR A TERM OF NOT
30 MORE THAN FIVE YEARS, OR BOTH, AT THE DISCRETION OF THE COURT.
19810H0082B2353 - 28 -
1 (C) FOR THE PURPOSES OF THIS SECTION, THE SALE OF CIGARETTES
2 HAVING AFFIXED THERETO GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS
3 FOR WHICH THE TAX HAS NOT BEEN PAID AS A RESULT OF ANY WILFUL OR
4 INTENTIONAL ACT FOR THE PURPOSE OF AVOIDING THE PAYMENT OF THE
5 PENNSYLVANIA CIGARETTE TAX SHALL BE CONSIDERED AN ILLEGAL SALE
6 SUBJECTING THE SELLER TO THE PENALTIES PROVIDED IN SUBSECTION
7 (B).
8 SECTION 1273. POSSESSION OF UNSTAMPED CIGARETTES.--(A) ANY
9 PERSON OTHER THAN A DULY LICENSED STAMPING AGENCY OR OTHER
10 PERSON SPECIFICALLY EXEMPTED BY THE PROVISIONS OF THIS ARTICLE
11 WHO SHALL POSSESS MORE THAN TWO HUNDRED BUT LESS THAN ONE
12 THOUSAND CIGARETTES, PACKAGES OF WHICH DO NOT HAVE AFFIXED
13 THERETO THE PROPER AMOUNT OF GENUINE CIGARETTE TAX STAMPS SHALL
14 BE GUILTY OF A SUMMARY OFFENSE AND UPON CONVICTION THEREOF SHALL
15 PAY A FINE OF THREE HUNDRED DOLLARS ($300), PLUS COSTS OF
16 PROSECUTION OR TO SUFFER IMPRISONMENT FOR NOT MORE THAN NINETY
17 DAYS, OR BOTH, AT THE DISCRETION OF THE COURT.
18 (B) ANY PERSON OTHER THAN A DULY LICENSED STAMPING AGENCY OR
19 OTHER PERSON SPECIFICALLY EXEMPTED BY THE PROVISIONS OF THIS
20 ARTICLE WHO SHALL POSSESS ONE THOUSAND OR MORE CIGARETTES, THE
21 PACKAGES OF WHICH DO NOT HAVE AFFIXED THERETO THE PROPER AMOUNT
22 OF GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS SHALL BE GUILTY OF
23 A MISDEMEANOR AND UPON CONVICTION THEREOF SHALL BE SENTENCED TO
24 A FINE OF NOT LESS THAN A THOUSAND DOLLARS ($1000) NOR MORE THAN
25 FIFTEEN THOUSAND DOLLARS ($15,000) AND COSTS OF PROSECUTION OR
26 TO SUFFER IMPRISONMENT FOR NOT MORE THAN THREE YEARS, OR BOTH,
27 AT THE DISCRETION OF THE COURT.
28 (C) ANY PERSON WHO SHALL FALSELY OR FRAUDULENTLY,
29 MALICIOUSLY, INTENTIONALLY OR WILFULLY WITH INTENT TO EVADE THE
30 PAYMENT OF THE PENNSYLVANIA CIGARETTE TAX POSSESS ANY PACK OF
19810H0082B2353 - 29 -
1 CIGARETTES WHICH DOES NOT HAVE AFFIXED THERETO THE PROPER AMOUNT
2 OF GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS SHALL BE GUILTY OF
3 A FELONY AND UPON CONVICTION THEREOF SHALL BE SENTENCED TO PAY A
4 FINE OF NOT MORE THAN FIVE THOUSAND DOLLARS ($5000) AND COSTS OF
5 PROSECUTION AND TO SUFFER IMPRISONMENT FOR A TERM OF NOT MORE
6 THAN FIVE YEARS.
7 (D) EVERY PERSON OTHER THAN A COMMON CARRIER ENGAGED IN
8 INTERSTATE COMMERCE WHO SHALL POSSESS OR TRANSPORT MORE THAN TWO
9 HUNDRED UNSTAMPED CIGARETTES UPON THE PUBLIC HIGHWAYS, ROADS OR
10 STREETS OF THIS COMMONWEALTH, SHALL BE REQUIRED TO HAVE IN HIS
11 POSSESSION INVOICES OR DELIVERY TICKETS FOR SUCH CIGARETTES. THE
12 INVOICES OR DELIVERY TICKETS SHALL SHOW THE CORRECT DATE OF
13 PURCHASE OR SHIPMENT, TRUE NAME AND COMPLETE AND EXACT ADDRESS
14 OF THE CONSIGNOR OR SELLER, THE TRUE NAME AND COMPLETE AND EXACT
15 ADDRESS OF THE CONSIGNEE OR PURCHASER, THE QUANTITY AND BRANDS
16 OF THE CIGARETTES SO TRANSPORTED AND THE TRUE NAME AND COMPLETE
17 AND EXACT ADDRESS OF THE PERSON WHO SHALL ASSUME THE PAYMENT OF
18 THE PENNSYLVANIA STATE TAX OR THE TAX, IF ANY, OF THE STATE OR
19 FOREIGN COUNTRY AT THE POINT OF ULTIMATE DESTINATION. IF THE
20 CIGARETTES ARE CONSIGNED TO OR PURCHASED BY ANY PERSON IN THE
21 COMMONWEALTH OF PENNSYLVANIA SUCH CONSIGNEE OR PURCHASER MUST BE
22 A LICENSED CIGARETTE STAMPING AGENCY OR OTHERWISE AUTHORIZED BY
23 THIS ARTICLE TO POSSESS UNSTAMPED CIGARETTES WITHIN THE
24 BOUNDARIES OF THIS COMMONWEALTH. THE ABSENCE OF SUCH INVOICES OR
25 DELIVERY TICKETS SHALL BE PRIMA FACIE EVIDENCE THAT THE
26 POSSESSION OF SUCH CIGARETTES IS CONTRARY TO THE PROVISIONS OF
27 THIS ARTICLE AND SHALL SUBJECT THE POSSESSOR TO THE PENALTIES
28 IMPOSED HEREIN.
29 (E) IN THE ABSENCE OF SUCH INVOICES OR DELIVERY TICKETS OR,
30 IF THE NAME OR ADDRESS OF THE PURCHASER OR CONSIGNOR IS
19810H0082B2353 - 30 -
1 FALSIFIED, OR IF THE PURCHASER OR CONSIGNEE IN THIS COMMONWEALTH
2 IS NOT AUTHORIZED TO POSSESS UNSTAMPED CIGARETTES THEN AND IN
3 THAT EVENT THE CIGARETTES SO TRANSPORTED SHALL BE SUBJECT TO
4 CONFISCATION AT THE DISCRETION OF THE SECRETARY OF REVENUE AS IS
5 MORE FULLY DESCRIBED IN SECTION 1285.
6 (F) FOR THE PURPOSE OF THIS SECTION THE POSSESSION OF
7 GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS FOR WHICH THE TAX HAS
8 NOT BEEN PAID AS A RESULT OF ANY WILFUL OR INTENTIONAL ACT FOR
9 THE PURPOSE OF AVOIDING THE PAYMENT OF THE PENNSYLVANIA
10 CIGARETTE TAX SHALL BE CONSIDERED A VIOLATION OF THIS ARTICLE
11 SUBJECTING THE POSSESSOR THEREOF TO THE PENALTIES PROVIDED IN
12 SECTION 1272 (C).
13 (G) TRANSPORTATION OF CIGARETTES FROM A POINT OUTSIDE OF
14 THIS COMMONWEALTH TO A FINAL DESTINATION OUTSIDE OF THIS
15 COMMONWEALTH SHALL NOT BE CONSIDERED A VIOLATION OF THIS SECTION
16 PROVIDED THAT THE PERSON SO TRANSPORTING SUCH CIGARETTES HAS IN
17 HIS POSSESSION INVOICES, BILLS OF LADING OR DELIVERY TICKETS
18 WHICH GIVE THE TRUE NAME AND TRUE ADDRESS OF SUCH OUT-OF-STATE
19 CONSIGNOR OR SELLER AND SUCH OUT-OF-STATE CONSIGNEE OR
20 PURCHASER: PROVIDED, HOWEVER, THAT SUCH CONSIGNOR OR CONSIGNEE
21 SHALL BE AUTHORIZED BY THE LAWS OF SUCH STATES TO RECEIVE OR
22 POSSESS CIGARETTES ON WHICH THE TAXES IMPOSED BY SUCH OTHER
23 STATES HAVE NOT BEEN PAID.
24 (H) IN ANY CASE, WHERE AGENTS OF THE DEPARTMENT HAVE REASON
25 TO BELIEVE THAT ANY VEHICLE IS CARRYING OR TRANSPORTING
26 CIGARETTES IN VIOLATION OF THIS ARTICLE, THEN AND IN THAT EVENT,
27 THE AGENTS OF THE DEPARTMENT SHALL BE AND ARE HEREBY AUTHORIZED
28 TO STOP SUCH VEHICLE, MAKE AN INSPECTION AND CONFISCATE ALL SUCH
29 UNSTAMPED OR IMPROPERLY STAMPED CIGARETTES FOUND THEREIN AND
30 CONFISCATE THE VEHICLE USED TO TRANSPORT SUCH UNSTAMPED OR
19810H0082B2353 - 31 -
1 IMPROPERLY STAMPED CIGARETTES.
2 SECTION 1274. COUNTERFEITING.--(A) ANY PERSON WHO FALSELY
3 OR FRAUDULENTLY MAKES, FORGES, ALTERS OR COUNTERFEITS, OR WHO
4 HAS IN HIS POSSESSION ANY STAMPING DEVICE, STENCIL, MACHINE, OR
5 OTHER MATERIAL OF ANY NATURE WHATSOEVER DESIGNED TO PRODUCE
6 COUNTERFEIT TAX STAMPS WITH THE INTENT TO PRODUCE COUNTERFEIT
7 TAX STAMPS OR WHO CAUSES OR PROCURES TO BE FALSELY OR
8 FRAUDULENTLY MADE, FORGED, ALTERED OR COUNTERFEITED ANY
9 CIGARETTE TAX STAMP OR ANY STAMPING DEVICE, STENCIL, MACHINE, OR
10 OTHER MATERIAL OF ANY NATURE WHATSOEVER DESIGNED TO PRODUCE
11 COUNTERFEIT STAMPS WITH THE INTENT TO PRODUCE COUNTERFEIT STAMPS
12 OR KNOWINGLY AND WILFULLY POSSESSES, UTTERS, PURCHASES,
13 PUBLISHES, SELLS, PASSES, DISTRIBUTES, OR TENDERS ANY SUCH
14 FALSE, ALTERED, FORGED, OR COUNTERFEIT STAMP OR ANY STAMPING
15 DEVICE, STENCIL, MACHINE OR OTHER MATERIAL OF ANY NATURE
16 WHATSOEVER DESIGNED TO PRODUCE COUNTERFEIT STAMPS WITH THE
17 INTENT TO PRODUCE COUNTERFEIT STAMPS FOR THE PURPOSE OF EVADING
18 THE TAX HEREBY IMPOSED AND ASSESSED, SHALL BE GUILTY OF A
19 FELONY, AND UPON CONVICTION THEREOF SHALL BE SENTENCED TO PAY A
20 FINE OF NOT MORE THAN TEN THOUSAND DOLLARS ($10,000) AND COSTS
21 OF PROSECUTION AND SUFFER IMPRISONMENT FOR A TERM OF NOT MORE
22 THAN TEN YEARS.
23 (B) POSSESSION OF A FORGED, ALTERED OR COUNTERFEITED STAMP
24 OR OF ANY STAMPING DEVICE, STENCIL, MACHINE, OR OTHER MATERIAL,
25 OF ANY NATURE WHATSOEVER DESIGNED TO PRODUCE COUNTERFEIT STAMPS
26 SHALL BE PRIMA FACIE EVIDENCE THAT SUCH PERSON HAS INTENDED TO
27 PRODUCE COUNTERFEIT STAMPS FOR THE PURPOSE OF EVADING THE TAX
28 DUE UNDER THE PROVISIONS OF THIS ACT.
29 SECTION 1275. DEFACING OF CIGARETTE STAMPING EQUIPMENT.--ANY
30 PERSON WHO SHALL WILFULLY, MALICIOUSLY AND FOR THE PURPOSE OF
19810H0082B2353 - 32 -
1 EVADING THE TAX HEREBY IMPOSED AND ASSESSED, SHALL IN ANY MANNER
2 DEFACE, MODIFY, CHANGE, TAMPER WITH, ALTER ANY CIGARETTE TAX
3 METER, MACHINE, OR STAMPING EQUIPMENT OR DO ANY OTHER ACT, THE
4 RESULT OF WHICH WOULD BE LIKELY TO AFFECT THE PROPER WORKING
5 ORDER OF SAID CIGARETTE TAX METER, MACHINE, OR STAMPING
6 EQUIPMENT SHALL BE GUILTY OF A FELONY, AND UPON CONVICTION
7 THEREOF SHALL BE SENTENCED TO PAY A FINE OF FIVE THOUSAND
8 DOLLARS ($5000) AND TO SUFFER IMPRISONMENT FOR A TERM OF NOT
9 MORE THAN FIVE YEARS.
10 SECTION 1276. FAILURE TO FURNISH INFORMATION, RETURNING
11 FALSE INFORMATION OR FAILURE TO PERMIT AN INSPECTION.--(A) ANY
12 DEALER WHO FAILS TO KEEP OR MAKE ANY RECORD, RETURN, REPORT,
13 INVENTORY OR STATEMENT, OR KEEPS OR MAKES ANY FALSE OR
14 FRAUDULENT RECORD, RETURN, REPORT, INVENTORY OR STATEMENT
15 REQUIRED BY THIS ARTICLE, SHALL BE GUILTY OF A MISDEMEANOR, AND,
16 UPON CONVICTION THEREOF, SHALL BE SENTENCED TO PAY A FINE OF
17 FIVE HUNDRED DOLLARS ($500) AND COSTS OF PROSECUTION AND TO
18 SUFFER IMPRISONMENT OF NOT MORE THAN ONE YEAR, OR BOTH, IN THE
19 DISCRETION OF THE COURT.
20 (B) THE DEPARTMENT IS HEREBY AUTHORIZED TO EXAMINE THE BOOKS
21 AND RECORDS, THE STOCK OF CIGARETTES AND THE PREMISES AND
22 EQUIPMENT OF ANY DEALER IN ORDER TO VERIFY THE ACCURACY OF THE
23 PAYMENT OF THE TAX IMPOSED BY THIS ARTICLE. EVERY SUCH PERSON IS
24 HEREBY DIRECTED AND REQUIRED TO GIVE TO THE DEPARTMENT OR ITS
25 DULY AUTHORIZED REPRESENTATIVE, THE MEANS, FACILITIES AND
26 OPPORTUNITY FOR SUCH EXAMINATIONS. WILFUL REFUSAL TO COOPERATE
27 WITH OR PERMIT SUCH EXAMINATION TO THE SATISFACTION OF THE
28 DEPARTMENT SHALL BE SUFFICIENT GROUNDS FOR THE SUSPENSION OR
29 REVOCATION OF ANY LICENSE ISSUED HEREUNDER, AND IN ADDITION
30 THERETO SHALL CONSTITUTE A MISDEMEANOR, AND, UPON CONVICTION
19810H0082B2353 - 33 -
1 THEREOF, SHALL BE SENTENCED TO PAY A FINE OF FIVE HUNDRED
2 DOLLARS ($500) AND COSTS OF PROSECUTION AND TO SUFFER
3 IMPRISONMENT OF NOT MORE THAN ONE YEAR OR BOTH.
4 SECTION 1277. RIGHT OF DEPARTMENT TO IMPOUND VENDING
5 MACHINES AND CONTENTS.--(A) WHENEVER ANY CIGARETTES ARE FOUND
6 OR ARE SUSPECTED TO BE IN ANY VENDING MACHINE IN VIOLATION OF
7 THE PROVISIONS OF THIS ARTICLE, OR WHENEVER A VENDING MACHINE IS
8 NOT PROPERLY LICENSED OR LABELED, THE DULY AUTHORIZED AGENTS OR
9 EMPLOYES OF THE DEPARTMENT SHALL SEAL THE MACHINE BY THE MEANS
10 OF IMPOUNDING STICKERS TO PREVENT SALE OR REMOVAL OF ANY
11 CIGARETTES FROM THE MACHINE UNTIL SUCH TIME AS THE VIOLATION IS
12 CORRECTED IN THE PRESENCE OF A DULY AUTHORIZED AGENT OR EMPLOYE
13 OF THE DEPARTMENT.
14 (B) ANYONE OTHER THAN THE DULY AUTHORIZED AGENTS OR EMPLOYES
15 OF THE DEPARTMENT WHO SHALL REMOVE OR OTHERWISE TAMPER WITH ANY
16 IMPOUNDING STICKERS PLACED ON ANY VENDING MACHINE, CONTENTS, OR
17 OTHER EVIDENCE SHALL BE GUILTY OF A MISDEMEANOR AND SUBJECT TO A
18 FINE OF NOT MORE THAN ONE THOUSAND DOLLARS ($1000) AND COSTS OF
19 PROSECUTION AND TO SUFFER IMPRISONMENT OF NOT MORE THAN ONE YEAR
20 OR BOTH.
21 SECTION 1278. OTHER VIOLATIONS.--(A) ANY PERSON WHO
22 WILFULLY OMITS, NEGLECTS, OR REFUSES TO COMPLY WITH ANY DUTY
23 IMPOSED UPON HIM BY THIS ARTICLE OR DOES ANYTHING PROHIBITED BY
24 THIS ARTICLE FOR WHICH NO SPECIFIC PENALTY IS OTHERWISE
25 PROVIDED, SHALL UPON CONVICTION IN A SUMMARY PROCEEDING BE
26 SENTENCED TO PAY A FINE NOT TO EXCEED FIVE HUNDRED DOLLARS
27 ($500) AND COSTS OF PROSECUTION, AND, IN DEFAULT OF PAYMENT
28 THEREOF, TO UNDERGO IMPRISONMENT FOR NOT MORE THAN THIRTY DAYS.
29 (B) ANY PERSON WHO WILFULLY OMITS OR NEGLECTS TO PAY ANY TAX
30 IMPOSED BY THIS ARTICLE, OR ATTEMPTS IN ANY MANNER TO EVADE OR
19810H0082B2353 - 34 -
1 DEFEAT THE TAX OR PAYMENT THEREOF, SHALL, IN ADDITION TO ANY
2 OTHER PENALTY PROVIDED IN THIS ARTICLE, BE LIABLE TO A PENALTY
3 EQUAL TO THE AMOUNT OF TAX EVADED OR NOT PAID, WHICH PENALTY
4 SHALL BE ADDED TO THE TAX AND ASSESSED AND COLLECTED AT THE SAME
5 TIME IN THE SAME MANNER AS A PART OF THE TAX.
6 (C) ANY PERSON WHO FAILS TO PAY TAX AT THE TIME PRESCRIBED
7 SHALL, IN ADDITION TO ANY OTHER PENALTY PROVIDED IN THIS
8 ARTICLE, BE LIABLE TO A PENALTY OF FIVE PER CENT OF THE TAX DUE
9 BUT UNPAID, TOGETHER WITH THE INTEREST AT THE RATE OF SIX PER
10 CENT PER ANNUM ON SUCH TAX FROM THE TIME THE TAX BECAME DUE, BUT
11 NO INTEREST FOR A FRACTION OF A MONTH SHALL BE DEMANDED. THE
12 PENALTIES PROVIDED IN THIS SUBSECTION SHALL BE ADDED TO THE TAX
13 AND ASSESSED AND COLLECTED AT THE SAME TIME IN THE SAME MANNER
14 AND AS A PART OF THE TAX.
15 SECTION 1279. PEACE OFFICERS; POWERS.--SUCH EMPLOYES OF THE
16 DEPARTMENT AS ARE OFFICIALLY DESIGNATED BY THE SECRETARY OF
17 REVENUE AS FIELD INVESTIGATORS OF THE BUREAU, AND WHO CARRY
18 IDENTIFICATION OF SUCH CAPACITY, ARE HEREBY DECLARED TO BE PEACE
19 OFFICERS AND THEY, AS WELL AS OTHER PEACE OFFICERS OF THE
20 COMMONWEALTH ARE HEREBY GIVEN POLICE POWERS AND AUTHORITY
21 THROUGHOUT THE COMMONWEALTH TO ARREST ON VIEW, EXCEPT IN PRIVATE
22 HOMES, WITHOUT WARRANT, ANY PERSON ACTUALLY ENGAGED IN THE
23 UNLAWFUL SALE OF UNSTAMPED OR COUNTERFEIT CIGARETTES OR ANY
24 COUNTERFEIT DEVICES, OR ANY PERSON UNLAWFULLY HAVING IN HIS
25 POSSESSION UNSTAMPED CIGARETTES, COUNTERFEIT CIGARETTES OR
26 COUNTERFEITING DEVICES CONTRARY TO THE PROVISIONS OF THIS
27 ARTICLE. SUCH PEACE OFFICER SHALL HAVE THE POWER AND AUTHORITY
28 UPON REASONABLE AND PROBABLE CAUSE TO SEARCH FOR AND SEIZE
29 WITHOUT WARRANT OR PROCESS, EXCEPT IN PRIVATE HOMES, ANY
30 UNSTAMPED CIGARETTES, COUNTERFEIT CIGARETTES OR COUNTERFEITING
19810H0082B2353 - 35 -
1 DEVICES WHICH ARE UNLAWFULLY POSSESSED.
2 SECTION 1280. FINES AND PENALTIES PAYABLE TO COMMONWEALTH.--
3 ALL FINES AND PENALTIES IMPOSED AND COLLECTED UNDER THE
4 PROVISIONS OF THIS ARTICLE SHALL BE PAYABLE TO THE COMMONWEALTH
5 AND ARE HEREBY APPROPRIATED TO THE DEPARTMENT TO BE USED IN
6 ENFORCING THIS ARTICLE.
7 PART X
8 CONFISCATION AND FORFEITURE
9 SECTION 1285. PROPERTY RIGHTS.--(A) NO PROPERTY RIGHTS
10 SHALL EXIST IN ANY VENDING MACHINE IN WHICH UNSTAMPED CIGARETTES
11 ARE FOUND, NOR SHALL ANY PROPERTY RIGHTS EXIST IN ANY VEHICLE
12 CONTAINING TWO THOUSAND OR MORE UNSTAMPED CIGARETTES OR
13 CONTAINING MORE THAN TWO HUNDRED UNSTAMPED CIGARETTES IF THE
14 OWNER HAS BEEN PREVIOUSLY CONVICTED OF THE ILLEGAL SALE,
15 POSSESSION OR TRANSPORTATION OF UNSTAMPED CIGARETTES IN THIS OR
16 ANY OTHER JURISDICTION. THE SAID VENDING MACHINE, ALL CIGARETTES
17 CONTAINED THEREIN, AND THE VEHICLE WHICH CONTAINED SAID
18 UNSTAMPED CIGARETTES SHALL BE DEEMED CONTRABAND AND SHALL BE
19 CONFISCATED AT THE DISCRETION OF THE SECRETARY OF REVENUE, AND
20 SHALL BE FORFEITED TO THE COMMONWEALTH AS PROVIDED IN
21 SUBSECTIONS (E) AND (F). NO SUCH PROPERTY, WHEN IN THE CUSTODY
22 OF THE DEPARTMENT, THE POLICE OR OTHER PROPER PEACE OFFICERS
23 SHALL BE SEIZED OR TAKEN THEREFROM BY ANY WRIT OF REPLEVIN OR
24 OTHER JUDICIAL PROCESS UNLESS A PETITION FOR FORFEITURE IS NOT
25 TIMELY FILED.
26 (B) UPON SAID FORFEITURE OR CONFISCATION, THE DEPARTMENT
27 SHALL DISPOSE OF ANY FORFEITED MACHINE OR FORFEITED CIGARETTES
28 IN ACCORDANCE WITH SUBSECTIONS (E) AND (F).
29 (C) NO PROPERTY RIGHTS SHALL EXIST IN ANY PACKAGES OF
30 CIGARETTES WHICH HAVE BEEN TAKEN FROM ANY PERSON WHO HAS BEEN
19810H0082B2353 - 36 -
1 FOUND IN VIOLATION OF THE PROVISIONS OF SECTION 1273 AND ALL
2 SUCH PACKAGES OF CIGARETTES SHALL BE DEEMED CONTRABAND, SHALL BE
3 CONFISCATED AND SHALL BE FORFEITED TO THE COMMONWEALTH WITHOUT
4 FURTHER PROCEEDINGS AND SHALL BE DELIVERED TO THE AGENTS OF THE
5 DEPARTMENT AT THE TIME OF CONVICTION BY THE JUDGE, JUSTICE OF
6 THE PEACE, MAGISTRATE OR ALDERMAN.
7 (D) NO PROPERTY RIGHTS SHALL EXIST IN ANY MACHINERY,
8 EQUIPMENT, FIXTURES, STENCILING DEVICE, STAMP, STAMPING DEVICE,
9 OR OTHER PARAPHERNALIA DESIGNED OR USED TO COUNTERFEIT
10 PENNSYLVANIA CIGARETTE TAX STAMPS NOR SHALL ANY PROPERTY RIGHTS
11 EXIST IN ANY PACKAGES OF CIGARETTES CONFISCATED IN CONNECTION
12 WITH THE OPERATION OF ANY COUNTERFEITING OR OTHER SCHEME
13 DESIGNED TO EVADE THE PAYMENT OF PROPER PENNSYLVANIA CIGARETTE
14 TAX. SAID MACHINERY, EQUIPMENT, FIXTURES, STENCILING DEVICE,
15 STAMP, STAMPING DEVICE OR OTHER PARAPHERNALIA AND CIGARETTES
16 SHALL BE CONFISCATED AND AT THE DISCRETION OF THE SECRETARY OF
17 REVENUE, SHALL BE FORFEITED TO THE COMMONWEALTH IN ACCORDANCE
18 WITH THE PROVISIONS OF THIS ARTICLE.
19 (E) THE DEPARTMENT SHALL DISPOSE OF CIGARETTES FORFEITED
20 UNDER THE PROVISIONS OF THIS ARTICLE BY THE SALE OF SAME THROUGH
21 THE DIVISION OF ESCHEATS, BUREAU OF COUNTY COLLECTIONS, PURSUANT
22 TO REGULATIONS PROMULGATED BY THE SECRETARY OF REVENUE.
23 (F) THE PROCEEDINGS FOR THE FORFEITURE OF ANY CIGARETTE
24 VENDING MACHINE OR MOTOR VEHICLE, IN WHICH ARE FOUND UNSTAMPED
25 CIGARETTES SHALL BE IN REM. THE COMMONWEALTH SHALL BE THE
26 PLAINTIFF AND THE PROPERTY SHALL BE THE DEFENDANT. A PETITION
27 SHALL BE FILED WITHIN FIVE DAYS AFTER CONFISCATION IN THE COURT
28 OF COMMON PLEAS OF THE COUNTY IN WHICH THE PROPERTY OR VEHICLE
29 WAS TAKEN BY AGENTS OF THE DEPARTMENT, THE POLICE OR OTHER SUCH
30 AUTHORIZED PEACE OFFICER, VERIFIED BY OATH OR AFFIRMATION OF ANY
19810H0082B2353 - 37 -
1 CIGARETTE TAX ENFORCEMENT OFFICER, POLICE OFFICER OR OTHER
2 PERSON. IN THE EVENT THAT SUCH PETITION IS NOT FILED WITHIN THE
3 TIME PRESCRIBED HEREIN, SUCH CONFISCATED VENDING MACHINE OR
4 MOTOR VEHICLE SHALL BE IMMEDIATELY RETURNED TO THE PERSON FROM
5 WHOM CONFISCATED OR THE OWNER THEREOF.
6 (G) THE PETITION SHALL CONTAIN THE FOLLOWING:
7 (1) THE DESCRIPTION OF THE PROPERTY OR VEHICLE SEIZED.
8 (2) A STATEMENT OF THE TIME WHEN AND PLACE WHERE SEIZED.
9 (3) THE NAME AND ADDRESS OF THE OWNER, IF KNOWN.
10 (4) THE NAME AND ADDRESS OF THE PERSON IN POSSESSION,
11 IF KNOWN.
12 (5) THE STATEMENT OF THE CIRCUMSTANCES UNDER WHICH THE
13 PROPERTY WAS FOUND AND THE NUMBER AND DESCRIPTION OF ALL
14 UNSTAMPED OR IMPROPERLY STAMPED CIGARETTES FOUND THEREIN.
15 (6) A PRAYER FOR AN ORDER FORFEITING SAID PROPERTY TO THE
16 COMMONWEALTH, UNLESS CAUSE BE SHOWN TO THE CONTRARY.
17 (H) A COPY OF THE PETITION SHALL BE SERVED IN ANY MANNER
18 PROVIDED BY LAW FOR SERVICE OF PROCESS OR COMPLAINT IN AN ACTION
19 IN ASSUMPSIT ON THE OWNER IF HE CAN BE FOUND WITHIN THE
20 COMMONWEALTH. IF THE OWNER CANNOT BE FOUND WITHIN THE
21 COMMONWEALTH, A COPY OF THE PETITION SHALL BE SERVED ON THE
22 OWNER BY REGISTERED MAIL OR CERTIFIED MAIL, RETURN RECEIPT
23 REQUESTED, ADDRESSED TO THE LAST KNOWN ADDRESS OF THE OWNER. THE
24 PERSON IN POSSESSION AND ALL ENCUMBRANCE HOLDERS HAVING A
25 PERFECTED SECURITY INTEREST IN THE PROPERTY CONFISCATED SHALL BE
26 NOTIFIED IN A LIKE MANNER. THE COPIES SHALL HAVE ENDORSED
27 THEREON A NOTICE SUBSTANTIALLY SIMILAR TO THE FOLLOWING:
28 "TO THE CLAIMANT OF THE WITHIN PROPERTY: YOU ARE REQUIRED TO
29 FILE AN ANSWER TO THIS PETITION SETTING FORTH YOUR TITLE IN AND
30 RIGHT TO POSSESSION OF SAID PROPERTY, WITHIN TWENTY DAYS FROM
19810H0082B2353 - 38 -
1 THE SERVICE HEREOF, AND YOU ARE ALSO NOTIFIED THAT IF YOU FAIL
2 TO FILE SAID ANSWER, A DECREE OF FORFEITURE WILL BE ENTERED
3 AGAINST SAID PROPERTY."
4 (I) THE NOTICE SHALL BE SIGNED BY THE PETITIONER OR HIS
5 ATTORNEY OR THE DISTRICT ATTORNEY OR ATTORNEY GENERAL.
6 (J) IF THE OWNER OF THE PROPERTY IS UNKNOWN, NOTICE OF THE
7 PETITION SHALL ALSO BE GIVEN BY AN ADVERTISEMENT IN ONLY ONE
8 NEWSPAPER OF GENERAL CIRCULATION PUBLISHED IN THE COUNTY WHERE
9 THE PROPERTY WAS SEIZED, ONCE A WEEK FOR TWO SUCCESSIVE WEEKS.
10 NO OTHER ADVERTISEMENT OF ANY SORT SHALL BE NECESSARY, ANY OTHER
11 LAW TO THE CONTRARY NOTWITHSTANDING. THE NOTICE SHALL CONTAIN A
12 STATEMENT OF THE SEIZURE OF THE PROPERTY, WITH THE DESCRIPTION
13 THEREOF, THE PLACE AND DATE OF SEIZURE, AND SHALL DIRECT ANY
14 CLAIMANTS THEREOF TO FILE A CLAIM THEREFOR, ON OR BEFORE A DATE
15 GIVEN IN THE NOTICE, WHICH SHALL NOT BE LESS THAN TEN DAYS FROM
16 THE DATE OF THE LAST PUBLICATION.
17 (K) UPON THE FILING OF ANY CLAIM FOR THE PROPERTY SETTING
18 FORTH A RIGHT OF POSSESSION THEREOF, THE CASE SHALL BE DEEMED AT
19 ISSUE AND A HEARING SHALL BE HELD WITHIN FIVE DAYS THEREOF.
20 (L) AT THE TIME OF THE HEARING, IF THE COMMONWEALTH SHALL
21 PROVE BY COMPETENT EVIDENCE TO THE SATISFACTION OF THE COURT
22 THAT THE MACHINE OR MOTOR VEHICLE IN QUESTION WAS FOUND TO
23 CONTAIN UNSTAMPED OR IMPROPERLY STAMPED CIGARETTES, THEN AND IN
24 THAT EVENT THE CLAIMANT SHALL SHOW THAT HE IS THE OWNER OF THE
25 CIGARETTE VENDING MACHINE OR OTHER EQUIPMENT, MOTOR VEHICLE OR
26 CIGARETTES, AND THAT ALL CIGARETTES FOUND IN THE MACHINE, OR ANY
27 OTHER PLACE FROM WHICH THE CIGARETTES WERE SEIZED, DID CONTAIN
28 THE PROPER AMOUNT OF GENUINE PENNSYLVANIA CIGARETTE TAX STAMPS,
29 OR THAT HE IS OTHERWISE NOT SUBJECT TO THE PROVISIONS OF THIS
30 SECTION AS THE RESULT OF ANY EXEMPTION OR ALLOWANCE PROVIDED FOR
19810H0082B2353 - 39 -
1 IN OTHER SECTIONS OF THIS ARTICLE.
2 (M) THE CLAIMANT SHALL HAVE THE BURDEN OF PROVING THAT HE IS
3 NOT SUBJECT TO THE PROVISIONS OF THIS SECTION, BUT THE BURDEN OF
4 PROOF SHALL BE UPON THE COMMONWEALTH TO PROVE ALL OTHER FACTS
5 NECESSARY FOR THE FORFEITURE OF A CIGARETTE VENDING MACHINE OR
6 MOTOR VEHICLE. IN THE EVENT THAT THE COMMONWEALTH HAS NOT MET
7 ITS BURDEN BY A PREPONDERANCE OF THE EVIDENCE, OR THE CLAIMANT
8 HAS PROVED THAT HE IS NOT SUBJECT TO THE PROVISIONS OF THIS
9 SECTION, THE COURT SHALL ORDER THE MACHINE, MOTOR VEHICLE OR
10 OTHER EQUIPMENT RETURNED TO THE CLAIMANT; OTHERWISE, THE COURT
11 SHALL ORDER THE SAME FORFEITED TO THE COMMONWEALTH: PROVIDED,
12 HOWEVER, THAT IN THE CASE OF A MOTOR VEHICLE, SHOULD THE
13 CLAIMANT PROVE TO THE SATISFACTION OF THE COURT THAT HE IS THE
14 REGISTERED OWNER OF THE MOTOR VEHICLE AND THAT HE DID NOT KNOW,
15 NOR HAD REASON TO KNOW, THAT IT WAS BEING USED TO CARRY
16 UNSTAMPED OR IMPROPERLY STAMPED CIGARETTES OR TOBACCO PRODUCTS,
17 THE COURT IN ITS DISCRETION, MAY ORDER THE SAME RETURNED TO THE
18 CLAIMANT.
19 (N) IN THE CASE OF A MOTOR VEHICLE, SHOULD THE CLAIMANT
20 PROVE THAT HE HOLDS A VALID ENCUMBRANCE UPON SUCH MOTOR VEHICLE,
21 NOTICE OF WHICH ENCUMBRANCE HAS BEEN DULY NOTED ON THE
22 CERTIFICATE OF TITLE TO SAID MOTOR VEHICLE IN ACCORDANCE WITH
23 THE PROVISIONS OF TITLE 75 OF THE PENNSYLVANIA CONSOLIDATED
24 STATUTES (RELATING TO VEHICLES), SUCH FORFEITURE SHALL BE
25 SUBJECT TO SUCH ENCUMBRANCE AS OF THE DATE OF THE SEIZURE LESS
26 PREPAID OR UNEARNED INTEREST AND BEFORE SAID MOTOR VEHICLE MAY
27 BE SOLD, EXCHANGED OR OTHERWISE TRANSFERRED OR RETAINED FOR USE
28 BY THE COMMONWEALTH, THE OUTSTANDING AMOUNT OF SUCH ENCUMBRANCE
29 SHALL BE PAID TO THE CLAIMANT; OR POSSESSION OF THE MOTOR
30 VEHICLE SHALL BE TURNED OVER TO THE CLAIMANT WHO SHALL EXPOSE
19810H0082B2353 - 40 -
1 THE SAME TO PUBLIC SALE AND SHALL PAY OVER TO THE COMMONWEALTH
2 ANY AMOUNT REALIZED IN EXCESS OF THE OUTSTANDING AMOUNT OF SUCH
3 ENCUMBRANCE LESS THE REASONABLE COSTS INCURRED BY CLAIMANT IN
4 CONDUCTING SUCH SALE.
5 SECTION 1286. DISPOSITION OF UNCLAIMED MOTOR VEHICLES.--IF
6 THE COURT ORDERS A MOTOR VEHICLE RETURNED TO THE OWNER OR
7 CLAIMANT AND THE OWNER OR CLAIMANT FAILS TO REMOVE THE VEHICLE
8 FROM COMMONWEALTH PROPERTY, THE DEPARTMENT SHALL GIVE THE OWNER
9 OR CLAIMANT NOTICE, IN THE MANNER PROVIDED IN SECTION 1285 FOR
10 SERVICE OF NOTICE OF THE PETITION, TO REMOVE THE VEHICLE WITHIN
11 NINETY DAYS. SHOULD THE OWNER OR CLAIMANT FAIL TO REMOVE THE
12 VEHICLE WITHIN NINETY DAYS FROM THE DATE NOTICE WAS GIVEN, THE
13 VEHICLE SHALL, WITHOUT REGARD TO ANY OTHER PERIOD OF
14 LIMITATIONS, BE DISPOSED OF AS PROVIDED IN THE ARTICLE OF AUGUST
15 9, 1971 (P.L.286, NO.74), KNOWN AS THE "DISPOSITION OF ABANDONED
16 AND UNCLAIMED PROPERTY ACT."
17 PART XI
18 ENFORCEMENT AND REGULATIONS
19 SECTION 1291. ENFORCEMENT; REGULATIONS.--THE DEPARTMENT IS
20 HEREBY CHARGED WITH THE ENFORCEMENT OF THE PROVISIONS OF THIS
21 ARTICLE AND IT IS HEREBY AUTHORIZED TO PROMULGATE REGULATIONS
22 RELATING TO THE ADMINISTRATION AND ENFORCEMENT OF THE PROVISIONS
23 OF THIS ARTICLE. THE VIOLATION OF A REGULATION PROMULGATED UNDER
24 THE AUTHORITY OF THIS ARTICLE SHALL BE CONSIDERED TO BE A
25 VIOLATION OF THE ARTICLE.
26 PART XII
27 SAVING CLAUSE: PAYMENT: REPEALER
28 SECTION 1295. SAVING CLAUSE.--(A) THIS ARTICLE SHALL NOT BE
29 DEEMED TO BE A CONTINUATION OF PRIOR LAW. HOWEVER, ALL CIGARETTE
30 TAX STAMPS AND LICENSES SOLD OR ISSUED PURSUANT TO ANY ACT
19810H0082B2353 - 41 -
1 REPEALED HEREBY SHALL CONTINUE IN FULL FORCE AND EFFECT IN
2 ACCORDANCE WITH THEIR TERMS AND ANY CIGARETTES UPON WHICH TAX
3 HAS ONCE BEEN PAID SHALL NOT BE TAXED A SECOND TIME. ALL
4 LICENSES ISSUED AFTER THE EFFECTIVE DATE OF THIS ARTICLE SHALL
5 BE ISSUED IN ACCORDANCE WITH THE REQUIREMENTS OF AND THE
6 SCHEDULE OF FEES PROVIDED IN THIS ARTICLE. THE ENACTMENT OF THIS
7 ARTICLE SHALL NOT AFFECT OR IMPAIR ANY ARTICLE DONE OR RIGHT
8 EXISTING OR ACCRUED OR AFFECT ANY ACTION PRESENTLY PENDING
9 BEFORE A COURT INVOLVING THE ENACTMENT OR VALIDITY OF THE
10 ARTICLE OR ANY CRIMINAL SUIT, ACTION, PROCEEDING OR PROSECUTION
11 TO ENFORCE ANY RIGHT ACQUIRED OR PROSECUTE ANY VIOLATION
12 COMMITTED UNDER THE PROVISIONS OF ANY LAW REPEALED HEREBY.
13 (B) IF ANY SECTION, SENTENCE, CLAUSE OR PART OF THIS ARTICLE
14 IS FOR ANY REASON HELD TO BE UNCONSTITUTIONAL, THE DECISION OF
15 THE COURT SHALL NOT AFFECT OR IMPAIR THE REMAINING PROVISIONS OF
16 THIS ARTICLE. IT IS HEREBY DECLARED TO BE THE LEGISLATIVE INTENT
17 THAT THIS ARTICLE WOULD HAVE BEEN ADOPTED HAD SUCH
18 UNCONSTITUTIONAL SECTION, SENTENCE, CLAUSE OR PART THEREOF NOT
19 BEEN INCLUDED THEREIN.
20 SECTION 1296. DISPOSITION OF CERTAIN FUNDS.--ALL CIGARETTE
21 TAX REVENUES COLLECTED BY THE DEPARTMENT OF REVENUE UNDER THIS
22 ARTICLE AND HERETOFORE PAID INTO THE PARENT REIMBURSEMENT FUND
23 IN ACCORDANCE WITH THE ARTICLE OF AUGUST 27, 1971 (P.L.358,
24 NO.92), KNOWN AS THE "PARENT REIMBURSEMENT ACT FOR NONPUBLIC
25 EDUCATION," SHALL BE TRANSFERRED INTO THE GENERAL FUND, AND ALL
26 SUCH REVENUES HEREINAFTER COLLECTED SHALL BE PAID INTO THE
27 GENERAL FUND.
28 SECTION 1297. REPEALER.--THE ACT OF JULY 22, 1970 (P.L.513,
29 NO.178), KNOWN AS THE "PENNSYLVANIA CIGARETTE TAX ACT," IS
30 REPEALED.
19810H0082B2353 - 42 -
1 SECTION 6. ARTICLE XII OF THE ACT, AMENDED SEPTEMBER 9, 1971
2 (P.L.437, NO.105) AND DECEMBER 21, 1977 (P.L.330, NO.98), IS
3 AMENDED TO READ:
4 ARTICLE [XII] XXX
5 GENERAL PROVISIONS
6 SECTION [1201] 3001. SAVING CLAUSE.--(A) NOTWITHSTANDING
7 ANYTHING CONTAINED IN ANY LAW TO THE CONTRARY, THE VALIDITY OF
8 ANY ORDINANCE OR PART OF ANY ORDINANCE OR ANY RESOLUTION OR PART
9 OF ANY RESOLUTION, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO NOW
10 OR HEREINAFTER ENACTED OR ADOPTED BY ANY POLITICAL SUBDIVISION
11 OF THIS COMMONWEALTH FOR OR RELATING TO THE IMPOSITION, LEVY OR
12 COLLECTION OF ANY TAX, SHALL NOT BE AFFECTED OR IMPAIRED BY
13 ANYTHING CONTAINED IN THIS CODE.
14 (B) NOTHING CONTAINED IN THIS CODE SHALL BE CONSTRUED TO
15 RELIEVE ANY PERSON, CORPORATION OR OTHER ENTITY FROM THE FILING
16 RETURNS OR FROM ANY TAXES, PENALTIES OR INTEREST IMPOSED BY THE
17 PROVISIONS OF ANY LAWS WHICH WERE IN EFFECT PRIOR TO BEING
18 REPEALED BY THIS CODE, OR AFFECT OR TERMINATE ANY PETITIONS,
19 INVESTIGATIONS, PROSECUTIONS, LEGAL OR OTHERWISE, OR OTHER
20 PROCEEDINGS PENDING UNDER THE PROVISIONS OF ANY SUCH LAWS OR
21 PREVENT THE COMMENCEMENT OR FURTHER PROSECUTION OF ANY
22 PROCEEDINGS BY THE PROPER AUTHORITIES OF THE COMMONWEALTH FOR
23 VIOLATION OF ANY SUCH LAWS OR FOR THE ASSESSMENT, SETTLEMENT,
24 COLLECTION OR RECOVERY OF TAXES, PENALTIES OR INTEREST DUE TO
25 THE COMMONWEALTH UNDER ANY OF THE LAWS WHICH WERE IN EFFECT
26 PRIOR TO BEING REPEALED BY THIS CODE.
27 SECTION [1202] 3002. CONSTITUTIONAL CONSTRUCTION.--IF ANY
28 WORD, PHRASE, CLAUSE, SENTENCE, SECTION OR PROVISION OF THIS
29 CODE IS FOR ANY REASON HELD TO BE UNCONSTITUTIONAL, THE DECISION
30 OF THE COURT SHALL NOT AFFECT OR IMPAIR ANY OF THE REMAINING
19810H0082B2353 - 43 -
1 PROVISIONS OF THIS CODE. IT IS HEREBY DECLARED AS THE
2 LEGISLATIVE INTENT THAT THIS CODE WOULD HAVE BEEN ADOPTED HAD
3 SUCH UNCONSTITUTIONAL WORD, PHRASE, CLAUSE, SENTENCE, SECTION OR
4 PROVISION THEREOF NOT BEEN INCLUDED HEREIN.
5 SECTION [1202.1] 3003. PREPAYMENT OF TAX.--(A)
6 NOTWITHSTANDING THE PROVISIONS OF THIS ACT, OR ANY OTHER STATE
7 TAX LAW TO THE CONTRARY, WHICH REQUIRED TAXPAYERS TO MAKE
8 PAYMENT OF TENTATIVE TAX, INCLUDING BUT NOT LIMITED TO THE
9 CAPITAL STOCK AND FRANCHISE TAX, CORPORATE NET INCOME AND
10 CORPORATION INCOME TAX, GROSS RECEIPTS TAX ON PUBLIC SERVICE
11 COMPANIES, TRANSPORTATION BY MOTOR VEHICLES AND TRACKLESS
12 TROLLEYS, OTHER THAN MOTOR VEHICLES FOR HIRE, INSURANCE PREMIUMS
13 TAX, MUTUAL THRIFT INSTITUTIONS TAX, NET EARNINGS TAX, OR OTHER
14 SIMILAR TAX LAW REQUIRING PAYMENT OF TENTATIVE TAX, BUT
15 EXCLUDING THE PREPAYMENT BY BANKS AND SAVINGS INSTITUTIONS UNDER
16 ARTICLE VII AND TITLE INSURANCE AND TRUST COMPANIES UNDER
17 ARTICLE VIII OF THIS ACT, SUCH TAXPAYERS, COMMENCING WITH THE
18 CALENDAR YEAR 1970 AND FISCAL YEARS BEGINNING DURING THE
19 CALENDAR YEAR 1970 AND EACH TAXABLE YEAR THEREAFTER, ON OR
20 BEFORE THE FIFTEENTH DAY OF APRIL FOR CALENDAR YEAR TAXPAYERS,
21 AND ON OR BEFORE THE FIFTEENTH DAY OF THE FOURTH MONTH AFTER THE
22 CLOSE OF ITS PREVIOUS FISCAL YEAR FOR FISCAL YEAR TAXPAYERS,
23 SHALL REPORT ANNUALLY AND PAY ON ACCOUNT OF THE TAX DUE FOR THE
24 CURRENT YEAR, AN AMOUNT TO BE COMPUTED BY APPLYING THE CURRENT
25 TAX RATE TO NINETY PER CENT OF SUCH TAX BASE FROM THE IMMEDIATE
26 PRIOR YEAR AS MAY BE APPLICABLE WITH RESPECT TO THE TAX BEING
27 REPORTED.
28 (B) FOR THE TAXABLE YEARS COMMENCING WITH CALENDAR YEAR 1979
29 AND FOR EACH TAXABLE YEAR THEREAFTER, THE TENTATIVE TAX DUE FOR
30 THE CURRENT YEAR SHALL BE COMPUTED BY APPLYING THE CURRENT TAX
19810H0082B2353 - 44 -
1 RATE TO NINETY PER CENT OF SUCH TAX BASE FROM THE YEAR PRECEDING
2 THE IMMEDIATE PRIOR YEAR AS MAY BE APPLICABLE WITH RESPECT TO
3 THE TAX BEING REPORTED; EXCEPT THAT WITH RESPECT TO THE
4 AFORESAID GROSS RECEIPTS TAX ON PUBLIC SERVICE COMPANIES,
5 TRANSPORTATION BY MOTOR VEHICLES AND TRACKLESS TROLLEYS, OTHER
6 THAN MOTOR VEHICLES FOR HIRE, AND THE AFORESAID INSURANCE
7 PREMIUMS TAX, SUCH AMOUNT SHALL CONTINUE TO BE COMPUTED BY
8 APPLYING THE CURRENT TAX RATE TO NINETY PER CENT OF THE TAX BASE
9 FROM THE IMMEDIATE PRIOR YEAR AS MAY BE APPLICABLE WITH RESPECT
10 TO THE TAX BEING REPORTED.
11 THE TAX IMPOSED ON SHARES OF BANK AND SAVINGS INSTITUTIONS
12 AND TITLE INSURANCE AND TRUST COMPANIES SHALL BE PAID IN THE
13 MANNER AND WITHIN THE TIME PRESCRIBED BY ARTICLE VII OR ARTICLE
14 VIII, AS THE CASE MAY BE, BUT SUBJECT TO THE ADDITIONS AND
15 INTEREST PROVIDED IN SUBSECTION (E) OF THIS SECTION.
16 (C) PAYMENT OF TAXES IMPOSED BY ARTICLES IV, V, IX AND XI OF
17 THIS ACT AND BY THE ACT OF JUNE 22, 1964 (P.L.16, NO.2), KNOWN
18 AS "THE MUTUAL THRIFT INSTITUTIONS TAX ACT," MAY AT THE
19 TAXPAYER'S ELECTION BE AN AMOUNT ESTIMATED BY THE TAXPAYER WHICH
20 ESTIMATED AMOUNT SHALL NOT BE LESS THAN NINETY PER CENT OF THE
21 TAX AS IS FINALLY REPORTED IN THE ANNUAL TAX REPORT FOR THE
22 CURRENT CALENDAR OR FISCAL YEAR.
23 (D) A CORPORATION WITH RESPECT TO THE CORPORATE NET INCOME
24 TAX IMPOSED BY ARTICLE IV AND THE CORPORATION INCOME TAX IMPOSED
25 BY ARTICLE V OF THIS ACT MAY, AT ITS ELECTION, REPORT AND PAY IN
26 INSTALLMENTS ON ACCOUNT OF THE TAX DUE FOR THE CURRENT TAXABLE
27 YEAR AN AMOUNT COMPUTED EITHER BY APPLYING THE CURRENT TAX RATE
28 TO NINETY PER CENT OF THE TAX BASE AS DETERMINED IN SUBSECTION
29 (A) OR (B) OF THIS SECTION, OR AS COMPUTED ON THE BASIS
30 ESTIMATED BY THE TAXPAYER TO BE DUE FOR THE CURRENT YEAR WHICH
19810H0082B2353 - 45 -
1 ESTIMATED AMOUNT SHALL NOT BE LESS THAN NINETY PER CENT OF THE
2 TAX AS IS FINALLY REPORTED IN THE ANNUAL TAX REPORT FOR THE
3 CURRENT YEAR AS PROVIDED IN SUBSECTION (C) OF THIS SECTION. THE
4 INSTALLMENTS SHALL BE PAID IN ACCORDANCE WITH THE FOLLOWING
5 SCHEDULES:
6 FIRST SECOND THIRD FOURTH
7 YEAR IN DUE ON THE 15TH DAY OF THE FOLLOWING MONTHS
8 WHICH TAX AFTER CLOSE OF THE PREVIOUS TAX YEAR:
9 YEAR BEGINS 4TH MONTH 6TH MONTH 9TH MONTH 12TH MONTH
10 1978 95% 0% 5% 0%
11 1979 95% 0% 5% 0%
12 1980 80% 0% 10% 10%
13 1981 40% 30% 20% 10%
14 1982 30% 30% 25% 15%
15 1983 AND
16 THEREAFTER 25% 25% 25% 25%
17 ANY TAXPAYER WHICH HAS ELECTED TO COMPUTE ITS TENTATIVE TAX
18 LIABILITY ON THE AFORESAID ESTIMATED BASIS AND WHICH HAS ELECTED
19 TO REPORT AND PAY SAID ESTIMATED TAX IN INSTALLMENTS, MAY WHEN
20 REPORTING AND PAYING ITS THIRD OR FOURTH INSTALLMENT, BASE SUCH
21 INSTALLMENT ON AN AMENDED TENTATIVE TAX REPORT REFLECTING THE
22 TAXPAYER'S NEW ESTIMATE OF ITS TAX LIABILITY FOR THE TAX YEAR:
23 PROVIDED, THAT THE NEW ESTIMATE REFLECTS A LOWER TAX LIABILITY
24 THAN WAS PREVIOUSLY REPORTED IN ITS ORIGINAL OR, IF APPLICABLE,
25 AMENDED TENTATIVE TAX REPORT. IF AN AMENDED TENTATIVE TAX REPORT
26 IS FILED, EACH REMAINING INSTALLMENT PAYMENT DUE, IF ANY, SHALL
27 BE SUCH AS TO BRING THE TOTAL INSTALLMENT PAYMENTS MADE ON
28 ACCOUNT OF THE TAX DUE FOR THE CURRENT TAXABLE YEAR UP TO AN
29 AMOUNT DETERMINED BY MULTIPLYING THE TENTATIVE TAX DUE FOR THE
30 YEAR AS REPORTED IN THE AMENDED REPORT BY THE SUM OF THE
19810H0082B2353 - 46 -
1 PERCENTAGES SET FORTH IN THE ABOVE SCHEDULE FOR THE APPLICABLE
2 ELAPSED INSTALLMENTS.
3 THE REMAINING PORTION OF THE TAX DUE, IF ANY, SHALL BE PAID
4 UPON THE DATE THE TAXPAYER'S ANNUAL REPORT IS REQUIRED TO BE
5 FILED UNDER THE APPLICABLE TAX STATUTE, DETERMINED WITHOUT
6 REFERENCE TO ANY EXTENSION OF TIME FOR FILING SUCH REPORT.
7 (E) FOR TAXABLE YEARS BEGINNING PRIOR TO JANUARY 1, 1979,
8 SHOULD IT SUBSEQUENTLY BE DETERMINED THAT THE AMOUNT OF THE
9 ANNUAL OR ANY INSTALLMENT PAYMENT OF TENTATIVE TAX DUE WAS
10 UNDERSTATED BY MORE THAN FIVE PER CENT, THERE SHALL BE ADDED TO
11 THE TAX DETERMINED TO BE DUE AN ADDITIONAL TEN PER CENT OF THE
12 UNDERSTATEMENT AND SAID PERCENTAGE ADDITION TO THE
13 UNDERSTATEMENT SHALL BE DEEMED AN ADDITIONAL TAX AND SHALL BEAR
14 INTEREST FROM THE DATE THE TENTATIVE TAX WAS DUE.
15 FOR TAXABLE YEARS BEGINNING JANUARY 1, 1979 AND THEREAFTER,
16 SHOULD IT SUBSEQUENTLY BE DETERMINED THAT THE AMOUNT OF THE
17 ANNUAL OR ANY INSTALLMENT PAYMENT OF TENTATIVE TAX DUE WAS
18 UNDERPAID, THERE SHALL BE IMPOSED AN ADDITIONAL TAX OF TEN PER
19 CENT OF THE UNDERPAYMENT AND SAID TAX SHALL BEAR INTEREST FROM
20 THE DATE THE ANNUAL OR ANY INSTALLMENT PAYMENT OF TENTATIVE TAX
21 WAS DUE. FAILURE TO REMIT THE ANNUAL OR ANY INSTALLMENT OF
22 TENTATIVE TAX PAYMENTS ON OR BEFORE THE DUE DATES PRESCRIBED IN
23 THIS ACT SHALL RESULT IN THE ASSESSMENT OF INTEREST AND
24 ADDITIONS, IF ANY, IN THE SAME MANNER AS PRESCRIBED BY LAW.
25 SECTION [1203] 3004. EFFECTIVE DATE.--THE PROVISIONS OF THIS
26 CODE, EXCEPT AS OTHERWISE SPECIFIED, SHALL TAKE EFFECT
27 IMMEDIATELY.
28 SECTION 7. (A) SECTIONS 1, 2, 3, 4 AND 6 OF THIS ACT SHALL
29 TAKE EFFECT IMMEDIATELY AND SHALL APPLY TO TAXABLE YEARS ENDING
30 AFTER DECEMBER 31, 1980.
19810H0082B2353 - 47 -
1 (B) SECTION 5 OF THIS ACT SHALL TAKE EFFECT IN 30 DAYS.
A2L72CVV/19810H0082B2353 - 48 -