PRINTER'S NO. 4340
No. 3140 Session of 1994
INTRODUCED BY CORNELL, FARGO, FAIRCHILD, HERSHEY, GEIST,
HENNESSEY, LEE, SATHER, LAUB, TULLI, FICHTER, CLYMER, TRELLO,
L. I. COHEN, CIVERA AND GLADECK, OCTOBER 5, 1994
REFERRED TO COMMITTEE ON FINANCE, OCTOBER 5, 1994
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," further defining "manufacture."
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 201(c) of the act of March 4, 1971
14 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
15 August 4, 1991 (P.L.97, No.22), is amended to read:
16 Section 201. Definitions.--The following words, terms and
17 phrases when used in this Article II shall have the meaning
18 ascribed to them in this section, except where the context
19 clearly indicates a different meaning:
20 * * *
21 (c) "Manufacture." The performance of manufacturing,
1 fabricating, compounding, processing or other operations,
2 engaged in as a business, which place any tangible personal
3 property in a form, composition or character different from that
4 in which it is acquired whether for sale or use by the
5 manufacturer, and shall include, but not be limited to--
6 (1) Every operation commencing with the first production
7 stage and ending with the completion of tangible personal
8 property having the physical qualities (including packaging, if
9 any, passing to the ultimate consumer) which it has when
10 transferred by the manufacturer to another;
11 (2) The publishing of books, newspapers, magazines and other
12 periodicals and printing;
13 (3) Refining, blasting, exploring, mining and quarrying for,
14 or otherwise extracting from the earth or from waste or stock
15 piles or from pits or banks any natural resources, minerals and
16 mineral aggregates including blast furnace slag;
17 (4) Building, rebuilding, repairing and making additions to,
18 or replacements in or upon vessels designed for commercial use
19 of registered tonnage of fifty tons or more when produced upon
20 special order of the purchaser, or when rebuilt, repaired or
21 enlarged, or when replacements are made upon order of, or for
22 the account of the owner;
23 (5) Research having as its objective the production of a new
24 or an improved (i) product or utility service, or (ii) method of
25 producing a product or utility service, but in either case not
26 including market research or research having as its objective
27 the improvement of administrative efficiency.
28 (6) Remanufacture for wholesale distribution by a
29 remanufacturer of motor vehicle parts from used parts acquired
30 in bulk by the remanufacturer using an assembly line process
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1 which involves the complete disassembly of such parts and
2 integration of the components of such parts with other used or
3 new components of parts, including the salvaging, recycling or
4 reclaiming of used parts by the remanufacturer.
5 (7) The process of roasting coffee beans.
6 The term "manufacture," shall not include constructing,
7 altering, servicing, repairing or improving real estate or
8 repairing, servicing or installing tangible personal property,
9 nor the cooking, freezing or baking of fruits, vegetables,
10 mushrooms, fish, seafood, meats, poultry or bakery products.
11 * * *
12 Section 2. This act shall take effect in 60 days.
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