PRINTER'S NO. 3869
No. 2764 Session of 1990
INTRODUCED BY COLAFELLA, TRELLO, PISTELLA, TANGRETTI, BATTISTO,
ADOLPH AND BILLOW, JUNE 27, 1990
REFERRED TO COMMITTEE ON FINANCE, JUNE 27, 1990
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," providing for a certain election of tax relating
11 to leased motor vehicles, trailers and semitrailers.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 205 of act of March 4, 1971 (P.L.6,
15 No.2), known as the Tax Reform Code of 1971, is amended by
16 adding a subsection to read:
17 Section 205. Alternate Imposition of Tax; Credits.--* * *
18 (c) A person actively and principally engaged in the
19 business of leasing or renting motor vehicles, trailers or semi-
20 trailers, who purchases a motor vehicle, trailer or semi-trailer
21 that is to be used exclusively for lease agreements for periods
22 of twelve or more months, and that is required to be licensed
1 and titled by the Department of Transportation, shall elect to
2 do one of the following:
3 (1) Pay the tax imposed by this act on the acquisition price
4 of the motor vehicle, trailer or semi-trailer. In such cases,
5 lease payments made by the lessee and all subsequent lessees of
6 that motor vehicle, trailer or semi-trailer are not subject to
7 the tax.
8 (2) Collect the tax imposed by this act from the lessee and
9 all subsequent lessees on the lease charge. If so elected, that
10 lease vehicle may be purchased tax exempt by the issuance of a
11 resale certificate.
12 Section 2. The Department of Revenue is hereby directed and
13 empowered to prescribe, adopt, promulgate and enforce rules and
14 regulations, not inconsistent with the provisions of this act,
15 for the administration and enforcement of the provisions of this
16 act.
17 Section 3. This act shall apply to all lease motor vehicles,
18 trailers and semitrailers to be titled with the Department of
19 Transportation after the effective date of this act.
20 Section 4. This act shall take effect immediately.
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