PRINTER'S NO. 2698
No. 2055 Session of 1989
INTRODUCED BY DORR, TRELLO, YANDRISEVITS, HERMAN, CARLSON, BUNT,
PHILLIPS, BOYES, DIETTERICK, B. SMITH, KASUNIC, SCHEETZ,
LASHINGER, MERRY, ITKIN, NOYE, BURD, McCALL, JOHNSON, VEON,
GODSHALL, E. Z. TAYLOR, VROON, GANNON, GEIST, STAIRS,
JADLOWIEC, STEIGHNER, SEMMEL, HALUSKA, STABACK, LANGTRY,
G. SNYDER, SERAFINI, MORRIS, FOSTER, D. W. SNYDER, SAURMAN,
ROBBINS AND BLACK, OCTOBER 24, 1989
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 24, 1989
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," further
16 providing for the refund of liquid fuels tax money collected
17 from fuels used in snowmobiles for deposit into a restricted
18 receipts account.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 17 of the act of May 21, 1931 (P.L.149,
22 No.105), known as The Liquid Fuels Tax Act, amended March 12,
23 1957 (P.L.8, No.3), July 15, 1969 (P.L.161, No.65) and December
1 19, 1975 (P.L.556, No.156), is amended to read:
2 Section 17. Refunds.--(a) The Board of Finance and Revenue
3 may refund to distributors taxes, penalties, and interest paid
4 by them on liquid fuels delivered to the United States
5 government, or paid as the result of an error of law or of fact
6 or of both law and fact. Claims for such refunds shall be made
7 under the procedure prescribed by The Fiscal Code.
8 (b) Any person who shall use or buy liquid fuels on which
9 the tax imposed by this act shall have been paid and shall
10 consume the same (i) in the operation of any nonlicensed farm
11 tractor or licensed farm tractor when used off the highways for
12 agricultural purposes or nonlicensed powered farm machinery for
13 purposes relating to the actual production of farm products or
14 (ii) in the operation of a vehicle of a volunteer fire company,
15 volunteer ambulance service or volunteer rescue squad shall be
16 reimbursed the full amount of such tax.
17 (c) (1) When the tax imposed by this act shall have been
18 paid and the fuel on which such tax has been imposed shall have
19 been consumed in the operation of motorboats or watercraft upon
20 the waters of the Commonwealth, including waterways bordering on
21 the Commonwealth, the full amount of such tax shall be refunded
22 to the Boating Fund of the Fish Commission on petition to the
23 Board of Finance and Revenue in accordance with prescribed
24 procedures.
25 (2) In accordance with such procedures, the Pennsylvania
26 Fish Commission shall biannually calculate the amount of liquid
27 fuels tax consumed by said motorcraft and furnish such
28 information relating to its calculations and data as may be
29 prescribed or required by the Board of Finance and Revenue. This
30 board shall review the petition and motorboat fuel consumption
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1 calculations of the Pennsylvania Fish Commission and then
2 determine the amount of liquid fuels tax paid on liquid fuels
3 consumed in the propulsion of motorboats and other motorcraft on
4 the waters of the Commonwealth, including waterways bordering on
5 the Commonwealth, and shall certify to the State Treasurer to
6 refund annually to the Boating Fund of the Fish Commission the
7 amount so determined. The Department of [Highways]
8 Transportation shall be accorded the right to appear at such
9 proceedings and make its views known.
10 (3) Said moneys shall be used by the Pennsylvania Fish
11 Commission acting by itself or by agreement with other State and
12 Federal agencies including, but not limited to, the Navigation
13 Commission for the Delaware River, the Department of [Forests
14 and Waters] Environmental Resources, the Department of Health,
15 and the Federal Bureau of Outdoor Recreation, only for the
16 improvement of the waters of Pennsylvania on which motorboats
17 are permitted to operate and may be used, including but not
18 limited to the development and construction of motorboat areas;
19 the dredging and clearing of water areas where motorboats can be
20 used; the placement and replacement of navigational aids; the
21 purchase, development and maintenance of public access sites and
22 facilities to and on waters where motorboating is permitted; the
23 patrolling of motorboating waters; the publishing of nautical
24 charts in those areas of Pennsylvania not covered by nautical
25 charts published by the United States Coast and Geodetic Survey
26 or the United States Army Engineers; and the administrative
27 expenses arising out of such activities.
28 (d) (1) When the tax imposed by this act shall have been
29 paid and the fuel on which such tax has been imposed shall have
30 been consumed in the operation of snowmobiles within the
19890H2055B2698 - 3 -
1 Commonwealth, the full amount of such tax shall be refunded to
2 the Department of Environmental Resources on petition to the
3 Board of Finance and Revenue in accordance with prescribed
4 procedures.
5 (2) In accordance with such procedures, the Department of
6 Environmental Resources shall biannually calculate the amount of
7 liquid fuels tax consumed by said snowmobiles and furnish such
8 information relating to its calculations and data as may be
9 prescribed or required by the Board of Finance and Revenue. This
10 board shall review the petition and fuel consumption
11 calculations of the Department of Environmental Resources and
12 then determine the amount of liquid fuels tax paid on liquid
13 fuels consumed in the propulsion of snowmobiles in the
14 Commonwealth, and shall certify to the State Treasurer to refund
15 annually to the Department of Environmental Resources the amount
16 so determined. The Department of Transportation shall be
17 accorded the right to appear at such proceedings and make its
18 views known.
19 (3) Said moneys shall be used solely for the benefit of
20 snowmobiles by the Department of Environmental Resources as
21 provided in 75 Pa.C.S. § 7706 (relating to restricted receipts
22 fund).
23 (e) (1) Any person who shall use or buy any liquid fuel on
24 which a tax imposed by this act in excess of one and one-half
25 cents a gallon shall have been paid and shall use such liquid
26 fuel in propeller-driven aircraft or aircraft engines, or who
27 shall use or buy any liquid fuel on which a tax imposed by this
28 act in excess of one and one-half cents per gallon shall have
29 been paid and shall use such liquid fuel in jet or turbo-jet
30 propelled aircraft or aircraft engines, shall be reimbursed in
19890H2055B2698 - 4 -
1 the amount of such excess.
2 (2) All such claims for reimbursement shall be made upon a
3 form to be furnished by the Board of Finance and Revenue and
4 shall include, in addition to such other information as the
5 board may by regulation prescribe, the name and address of the
6 claimant, the period of time and the number of gallons of liquid
7 fuels used for which reimbursement is claimed, a description of
8 the farm machinery, aircraft or aircraft engine in which such
9 liquid fuels have been used and the purposes for which such
10 machinery, aircraft or aircraft engine has been used, the size
11 of the farm and part thereof in cultivation on which such liquid
12 fuels have been used. Each such claim shall contain statements
13 that the liquid fuels for which reimbursement is claimed have
14 been used only for purposes for which reimbursements are
15 permitted, that records of the amounts of such fuels used in
16 each piece of farm machinery, aircraft or aircraft engine have
17 been kept, and that no part of such claim has been paid except
18 as stated. Each such claim shall contain a declaration that it
19 and accompanying receipts are true and correct to the best of
20 claimant's knowledge and shall be signed by the claimant or the
21 person claiming on his behalf. Every claim shall be accompanied
22 by receipts indicating that the liquid fuels or excess liquid
23 fuels tax was paid on the liquid fuels for which reimbursement
24 is claimed. All records of purchases of liquid fuels and use in
25 each tractor or powered machinery, aircraft or aircraft engine
26 shall be kept for a period of two years. Every such claim shall
27 be made annually for the preceding year ending on the thirtieth
28 day of June and shall be submitted to the Board of Finance and
29 Revenue not later than the thirtieth day of September of each
30 year and the board shall refuse to consider any claim received
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1 or postmarked later than such date. The claimant shall satisfy
2 the board that he has paid the tax and that the liquid fuels
3 have been consumed by him for purposes for which reimbursements
4 are permitted under this section. The board may require any
5 claimant to furnish such further information, proof, or fuller
6 explanation as it shall deem necessary. The action of the Board
7 of Finance and Revenue in granting or refusing reimbursement
8 shall be final. The board shall deduct the sum of one dollar and
9 fifty cents ($1.50), which shall be considered as a filing fee,
10 from every claim for reimbursement granted. Such filing fees are
11 hereby specifically appropriated to the Board of Finance and
12 Revenue and to the Department of Revenue for expenses of any
13 nature whatsoever incurred in the administration of the
14 reimbursement provisions of this act. The Board of Finance and
15 Revenue shall have the power to refer to the Department of
16 Revenue, for investigation, any claim for reimbursement filed
17 under the provisions of this act and it shall be the duty of the
18 Department of Revenue to investigate such application and report
19 to the Board of Finance and Revenue relative thereto. Any person
20 making any false or fraudulent statement for the purpose of
21 obtaining reimbursement shall be guilty of a misdemeanor, and,
22 upon conviction thereof, shall be sentenced to pay a fine of not
23 more than one thousand dollars ($1000) or to undergo
24 imprisonment for not more than six (6) months, or both.
25 (f) All refunds and reimbursements of moneys allowed
26 hereunder shall be paid from the Motor License Fund and the
27 Liquid Fuels Tax Fund in amounts equal to the original
28 distribution and payment of such moneys into said funds:
29 Provided, That reimbursement for taxes paid on liquid fuels
30 consumed in the operation of tractors and powered machinery for
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1 purposes relating to the actual production of farm products and
2 reimbursement for taxes paid on liquid fuels used in aircraft or
3 aircraft engines shall be paid out of the Motor License Fund.
4 (g) As much of the moneys, from time to time, in the Motor
5 License Fund and the Liquid Fuels Tax Fund, as may be necessary,
6 is hereby appropriated to the Board of Finance and Revenue for
7 the purpose of making refunds and reimbursements as herein
8 authorized. Estimates of the amounts to be expended from these
9 funds for refunds and reimbursements, from time to time, by the
10 board shall be submitted to the Governor for his approval or
11 disapproval as in the case of other appropriations to
12 administrative departments, boards and commissions; and it shall
13 be unlawful for the Auditor General to honor any requisition of
14 the Board of Finance and Revenue for the expenditure of moneys
15 hereunder in excess of the estimates approved by the Governor.
16 (h) The provisions of this section relating to reimbursement
17 of taxes paid on liquid fuels consumed in the operation of
18 tractors and powered machines for purposes relating to the
19 actual production of farm products shall apply only to liquid
20 fuels purchased on and after the first day of July, one thousand
21 nine hundred fifty-five.
22 (i) The Pennsylvania Aeronautics Commission is authorized to
23 make allocations of taxes collected under this act to airports
24 in proportion to the average of their allocations received from
25 the Pennsylvania Aeronautics Commission during the period for
26 which they have received such allocations not to exceed five
27 years or, in the case of airports having no such allocation
28 experience, in equal proportion with other airports based upon
29 comparative collections under this tax. In no case shall the
30 amount apportioned to the airport be less than the highest
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1 amount apportioned in any one of the previous five years.
2 Section 2. This act shall take effect immediately.
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