PRIOR PRINTER'S NO. 143 PRINTER'S NO. 269
No. 134 Session of 1997
INTRODUCED BY TRUE, SCHULER, PETTIT, THOMAS, VANCE, MANDERINO,
BARLEY, RUBLEY, JOSEPHS, BROWN, MILLER, EGOLF, HERSHEY,
ARMSTRONG, MASLAND, BEBKO-JONES, MUNDY, LAUGHLIN, YOUNGBLOOD,
MAITLAND, BOYES, STRITTMATTER, GEORGE, HENNESSEY, MARSICO,
WOJNAROSKI, WALKO, READSHAW, NAILOR, DALEY, GIGLIOTTI,
CHADWICK, FLEAGLE, HALUSKA, ZUG, CAPPABIANCA, MELIO, FICHTER,
SANTONI, KELLER, SAINATO, FARGO, MARKOSEK, FAIRCHILD, PESCI,
JAROLIN, LAWLESS, PLATTS, RYAN, PERZEL, E. Z. TAYLOR, STERN,
ROONEY, SHANER, OLASZ, BAKER, CURRY, BATTISTO, COY, McCALL,
LaGROTTA, STURLA, TRAVAGLIO, TANGRETTI, ADOLPH, JAMES, LEH,
HERMAN, LEVDANSKY, J. TAYLOR, COLAFELLA, CORNELL, STEELMAN,
BARD, FEESE, LUCYK, TRELLO, LEDERER, BROWNE, PETRARCA, WAUGH,
DeLUCA, D. W. SNYDER, C. WILLIAMS, CIVERA, ALLEN, DiGIROLAMO,
DENT, HUTCHINSON, WILT AND RAMOS, JANUARY 29, 1997
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
FEBRUARY 4, 1997
AN ACT
1 Providing for an income tax refund checkoff for breast and <--
2 cervical cancer research; and making a repeal.
3 AMENDING THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), ENTITLED "AN <--
4 ACT RELATING TO TAX REFORM AND STATE TAXATION BY CODIFYING
5 AND ENUMERATING CERTAIN SUBJECTS OF TAXATION AND IMPOSING
6 TAXES THEREON; PROVIDING PROCEDURES FOR THE PAYMENT,
7 COLLECTION, ADMINISTRATION AND ENFORCEMENT THEREOF; PROVIDING
8 FOR TAX CREDITS IN CERTAIN CASES; CONFERRING POWERS AND
9 IMPOSING DUTIES UPON THE DEPARTMENT OF REVENUE, CERTAIN
10 EMPLOYERS, FIDUCIARIES, INDIVIDUALS, PERSONS, CORPORATIONS
11 AND OTHER ENTITIES; PRESCRIBING CRIMES, OFFENSES AND
12 PENALTIES," FURTHER PROVIDING FOR SALES AND USE TAX
13 DEFINITIONS, FOR PERSONAL INCOME TAX DEFINITIONS, FOR SPECIAL
14 TAX PROVISIONS ON POVERTY; PROVIDING FOR INCOME TAX REFUND
15 CHECKOFFS FOR BREAST AND CERVICAL CANCER RESEARCH; FURTHER
16 PROVIDING FOR REALTY TRANSFER TAX DEFINITIONS AND EXCLUSIONS;
17 AND MAKING REPEALS.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
1 Section 1. Short title. <--
2 This act shall be known and may be cited as the Contributions
3 to Breast and Cervical Cancer Research Act.
4 Section 2. Definitions.
5 The following words and phrases when used in this act shall
6 have the meanings given to them in this section unless the
7 context clearly indicates otherwise:
8 "Department." The Department of Revenue of the Commonwealth.
9 "Individual income tax." The tax imposed by Article III of
10 the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
11 Code of 1971.
12 Section 3. Space on form for contributions to breast and
13 cervical cancer research.
14 (a) Use designation.--The department shall provide a space
15 on the face of the individual income tax return form whereby an
16 individual may voluntarily designate a contribution of any
17 amount desired to be utilized for breast and cervical cancer
18 research in the Department of Health.
19 (b) Deduction.--The amount so designated on the individual
20 income tax return form shall be deducted from the tax refund to
21 which the individual is entitled and shall not constitute a
22 charge against the income tax revenues due to the Commonwealth.
23 (c) State Treasurer.--The department shall determine
24 annually the total amount designated under this section, less
25 reasonable administrative costs, and shall report the amount to
26 the State Treasurer, who shall transfer the amount from the
27 General Fund to the Pennsylvania Cancer Control, Prevention and
28 Research Advisory Board within the Department of Health.
29 (d) Checkoff information.--The department shall provide
30 adequate information concerning the checkoff for breast and
19970H0134B0269 - 2 -
1 cervical cancer research in its instructions which accompany
2 State income tax return forms. The information concerning the
3 checkoff shall include the listing of an address furnished by
4 the Department of Health, to which contributions may be sent by
5 taxpayers wishing to contribute to this effort, but who do not
6 receive refunds. Additionally, the Department of Health shall be
7 charged with the duty to conduct a public information campaign
8 on the availability of this opportunity to Pennsylvania
9 taxpayers.
10 (e) Report.--The Department of Health shall report annually
11 to the respective committees of the Senate and the House of
12 Representatives which have jurisdiction over health matters on
13 the amount received via the checkoff plan and how the funds were
14 utilized.
15 (f) Appropriation of funds.--The General Assembly may, from
16 time to time, appropriate funds for breast and cervical cancer
17 research within the Department of Health.
18 Section 4. Repeal.
19 Section 12 of the act of June 23, 1982 (P.L.597, No.170),
20 known as the Wild Resource Conservation Act, is repealed insofar
21 as it is inconsistent with this act.
22 Section 5. Applicability.
23 This act shall apply to taxable years beginning on or after
24 January 1, 1997.
25 Section 6. Effective date.
26 This act shall take effect immediately.
27 SECTION 1. SECTION 201(B), (C), (D), (F), (G), (K), (O) AND <--
28 (JJ) OF THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX
29 REFORM CODE OF 1971, AMENDED OR ADDED AUGUST 4, 1991 (P.L.97,
30 NO.22), DECEMBER 13, 1991 (P.L.373, NO.40), JUNE 16, 1994
19970H0134B0269 - 3 -
1 (P.L.279, NO.48) AND JUNE 30, 1995 (P.L.139, NO.21), ARE AMENDED
2 TO READ:
3 SECTION 201. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
4 PHRASES WHEN USED IN THIS ARTICLE II SHALL HAVE THE MEANING
5 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
6 CLEARLY INDICATES A DIFFERENT MEANING:
7 * * *
8 (B) "MAINTAINING A PLACE OF BUSINESS IN THIS COMMONWEALTH."
9 (1) HAVING OR MAINTAINING WITHIN THIS COMMONWEALTH, DIRECTLY
10 OR BY A SUBSIDIARY, AN OFFICE, DISTRIBUTION HOUSE, SALES HOUSE,
11 WAREHOUSE, SERVICE ENTERPRISE OR OTHER PLACE OF BUSINESS, OR ANY
12 AGENT OF GENERAL OR RESTRICTED AUTHORITY IRRESPECTIVE OF WHETHER
13 THE PLACE OF BUSINESS OR AGENT IS LOCATED HERE PERMANENTLY OR
14 TEMPORARILY OR WHETHER THE PERSON OR SUBSIDIARY MAINTAINING SUCH
15 PLACE OF BUSINESS OR AGENT IS AUTHORIZED TO DO BUSINESS WITHIN
16 THIS COMMONWEALTH; OR
17 (2) THE ENGAGING IN ANY ACTIVITY AS A BUSINESS WITHIN THIS
18 COMMONWEALTH BY ANY PERSON, DIRECTLY OR BY A SUBSIDIARY, IN
19 CONNECTION WITH THE LEASE, SALE OR DELIVERY OF TANGIBLE PERSONAL
20 PROPERTY OR THE PERFORMANCE OF SERVICES THEREON FOR USE, STORAGE
21 OR CONSUMPTION OR IN CONNECTION WITH THE SALE OR DELIVERY FOR
22 USE OF THE SERVICES DESCRIBED IN SUBCLAUSES (11) THROUGH (16)
23 AND (18) OF CLAUSE (K) OF THIS SECTION, INCLUDING, BUT NOT
24 LIMITED TO, HAVING, MAINTAINING OR USING ANY OFFICE,
25 DISTRIBUTION HOUSE, SALES HOUSE, WAREHOUSE OR OTHER PLACE OF
26 BUSINESS, ANY STOCK OF GOODS OR ANY SOLICITOR, SALESMAN, AGENT
27 OR REPRESENTATIVE UNDER ITS AUTHORITY, AT ITS DIRECTION OR WITH
28 ITS PERMISSION, REGARDLESS OF WHETHER THE PERSON OR SUBSIDIARY
29 IS AUTHORIZED TO DO BUSINESS IN THIS COMMONWEALTH.
30 (3) REGULARLY OR SUBSTANTIALLY SOLICITING ORDERS WITHIN THIS
19970H0134B0269 - 4 -
1 COMMONWEALTH IN CONNECTION WITH THE LEASE, SALE OR DELIVERY OF
2 TANGIBLE PERSONAL PROPERTY TO OR THE PERFORMANCE THEREON OF
3 SERVICES OR IN CONNECTION WITH THE SALE OR DELIVERY OF THE
4 SERVICES DESCRIBED IN SUBCLAUSES (11) THROUGH (16) AND (18) OF
5 CLAUSE (K) OF THIS SECTION FOR RESIDENTS OF THIS COMMONWEALTH BY
6 MEANS OF CATALOGUES OR OTHER ADVERTISING, WHETHER SUCH ORDERS
7 ARE ACCEPTED WITHIN OR WITHOUT THIS COMMONWEALTH.
8 (C) "MANUFACTURE." THE PERFORMANCE OF MANUFACTURING,
9 FABRICATING, COMPOUNDING, PROCESSING OR OTHER OPERATIONS,
10 ENGAGED IN AS A BUSINESS, WHICH PLACE ANY TANGIBLE PERSONAL
11 PROPERTY IN A FORM, COMPOSITION OR CHARACTER DIFFERENT FROM THAT
12 IN WHICH IT IS ACQUIRED WHETHER FOR SALE OR USE BY THE
13 MANUFACTURER, AND SHALL INCLUDE, BUT NOT BE LIMITED TO--
14 (1) EVERY OPERATION COMMENCING WITH THE FIRST PRODUCTION
15 STAGE AND ENDING WITH THE COMPLETION OF TANGIBLE PERSONAL
16 PROPERTY HAVING THE PHYSICAL QUALITIES (INCLUDING PACKAGING, IF
17 ANY, PASSING TO THE ULTIMATE CONSUMER) WHICH IT HAS WHEN
18 TRANSFERRED BY THE MANUFACTURER TO ANOTHER;
19 (2) THE PUBLISHING OF BOOKS, NEWSPAPERS, MAGAZINES AND OTHER
20 PERIODICALS AND PRINTING;
21 (3) REFINING, BLASTING, EXPLORING, MINING AND QUARRYING FOR,
22 OR OTHERWISE EXTRACTING FROM THE EARTH OR FROM WASTE OR STOCK
23 PILES OR FROM PITS OR BANKS ANY NATURAL RESOURCES, MINERALS AND
24 MINERAL AGGREGATES INCLUDING BLAST FURNACE SLAG;
25 (4) BUILDING, REBUILDING, REPAIRING AND MAKING ADDITIONS TO,
26 OR REPLACEMENTS IN OR UPON VESSELS DESIGNED FOR COMMERCIAL USE
27 OF REGISTERED TONNAGE OF FIFTY TONS OR MORE WHEN PRODUCED UPON
28 SPECIAL ORDER OF THE PURCHASER, OR WHEN REBUILT, REPAIRED OR
29 ENLARGED, OR WHEN REPLACEMENTS ARE MADE UPON ORDER OF, OR FOR
30 THE ACCOUNT OF THE OWNER;
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1 (5) RESEARCH HAVING AS ITS OBJECTIVE THE PRODUCTION OF A NEW
2 OR AN IMPROVED (I) PRODUCT OR UTILITY SERVICE, OR (II) METHOD OF
3 PRODUCING A PRODUCT OR UTILITY SERVICE, BUT IN EITHER CASE NOT
4 INCLUDING MARKET RESEARCH OR RESEARCH HAVING AS ITS OBJECTIVE
5 THE IMPROVEMENT OF ADMINISTRATIVE EFFICIENCY.
6 (6) REMANUFACTURE FOR WHOLESALE DISTRIBUTION BY A
7 REMANUFACTURER OF MOTOR VEHICLE PARTS FROM USED PARTS ACQUIRED
8 IN BULK BY THE REMANUFACTURER USING AN ASSEMBLY LINE PROCESS
9 WHICH INVOLVES THE COMPLETE DISASSEMBLY OF SUCH PARTS AND
10 INTEGRATION OF THE COMPONENTS OF SUCH PARTS WITH OTHER USED OR
11 NEW COMPONENTS OF PARTS, INCLUDING THE SALVAGING, RECYCLING OR
12 RECLAIMING OF USED PARTS BY THE REMANUFACTURER.
13 (7) REMANUFACTURE OR RETROFIT BY A MANUFACTURER OR
14 REMANUFACTURER OF AIRCRAFT, ARMORED VEHICLES, OTHER DEFENSE-
15 RELATED VEHICLES HAVING A FINISHED VALUE OF AT LEAST FIFTY
16 THOUSAND DOLLARS ($50,000). REMANUFACTURE OR RETROFIT INVOLVES
17 THE DISASSEMBLY OF SUCH AIRCRAFT, VEHICLES, PARTS OR COMPONENTS,
18 INCLUDING ELECTRIC OR ELECTRONIC COMPONENTS, THE INTEGRATION OF
19 THOSE PARTS AND COMPONENTS WITH OTHER USED OR NEW PARTS OR
20 COMPONENTS, INCLUDING THE SALVAGING, RECYCLING OR RECLAIMING OF
21 THE USED PARTS OR COMPONENTS AND THE ASSEMBLY OF THE NEW OR USED
22 AIRCRAFT, VEHICLES, PARTS OR COMPONENTS. FOR PURPOSES OF THIS
23 CLAUSE, THE FOLLOWING TERMS OR PHRASES HAVE THE FOLLOWING
24 MEANINGS:
25 (I) "AIRCRAFT" MEANS FIXED-WING AIRCRAFT, HELICOPTERS,
26 POWERED AIRCRAFT, TILT-ROTOR OR TILT-WING AIRCRAFT, UNMANNED
27 AIRCRAFT AND GLIDERS;
28 (II) "ARMORED VEHICLES" MEANS TANKS, ARMED PERSONNEL
29 CARRIERS AND ALL OTHER ARMED TRACK OR SEMITRACK VEHICLES; OR
30 (III) "OTHER DEFENSE-RELATED VEHICLES" MEANS TRUCKS, TRUCK-
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1 TRACTORS, TRAILERS, JEEPS AND OTHER UTILITY VEHICLES, INCLUDING
2 ANY UNMANNED VEHICLES.
3 THE TERM "MANUFACTURE[,]" SHALL NOT INCLUDE CONSTRUCTING,
4 ALTERING, SERVICING, REPAIRING OR IMPROVING REAL ESTATE OR
5 REPAIRING, SERVICING OR INSTALLING TANGIBLE PERSONAL PROPERTY,
6 NOR THE COOKING[,] OR FREEZING [OR BAKING] OF FRUITS,
7 VEGETABLES, MUSHROOMS, FISH, SEAFOOD, MEATS[,] OR POULTRY [OR
8 BAKERY PRODUCTS].
9 * * *
10 (D) "PROCESSING." THE PERFORMANCE OF THE FOLLOWING
11 ACTIVITIES WHEN ENGAGED IN AS A BUSINESS ENTERPRISE:
12 (1) THE FILTERING OR HEATING OF HONEY, THE COOKING[, BAKING]
13 OR FREEZING OF FRUITS, VEGETABLES, MUSHROOMS, FISH, SEAFOOD,
14 MEATS[,] OR POULTRY [OR BAKERY PRODUCTS], WHEN THE PERSON
15 ENGAGED IN SUCH BUSINESS PACKAGES SUCH PROPERTY IN SEALED
16 CONTAINERS FOR WHOLESALE DISTRIBUTION.
17 (1.1) THE PROCESSING OF VEGETABLES BY CLEANING, CUTTING,
18 CORING OR CHOPPING AND TREATING TO PRESERVE, STERILIZE OR PURIFY
19 AND SUBSTANTIALLY EXTEND THE USEFUL SHELF LIFE OF THE
20 VEGETABLES, WHEN THE PERSON ENGAGED IN SUCH ACTIVITY PACKAGES
21 SUCH PROPERTY IN SEALED CONTAINERS FOR WHOLESALE DISTRIBUTION.
22 (2) THE SCOURING, CARBONIZING, CORDING, COMBING, THROWING,
23 TWISTING OR WINDING OF NATURAL OR SYNTHETIC FIBERS, OR THE
24 SPINNING, BLEACHING, DYEING, PRINTING OR FINISHING OF YARNS OR
25 FABRICS, WHEN SUCH ACTIVITIES ARE PERFORMED PRIOR TO SALE TO THE
26 ULTIMATE CONSUMER.
27 (3) THE ELECTROPLATING, GALVANIZING, ENAMELING, ANODIZING,
28 COLORING, FINISHING, IMPREGNATING OR HEAT TREATING OF METALS OR
29 PLASTICS FOR SALE OR IN THE PROCESS OF MANUFACTURING.
30 (4) THE ROLLING, DRAWING OR EXTRUDING OF FERROUS AND NON-
19970H0134B0269 - 7 -
1 FERROUS METALS.
2 (5) THE FABRICATION FOR SALE OF ORNAMENTAL OR STRUCTURAL
3 METAL OR OF METAL STAIRS, STAIRCASES, GRATINGS, FIRE ESCAPES OR
4 RAILINGS (NOT INCLUDING FABRICATION WORK DONE AT THE
5 CONSTRUCTION SITE).
6 (6) THE PREPARATION OF ANIMAL FEED OR POULTRY FEED FOR SALE.
7 (7) THE PRODUCTION, PROCESSING AND BOTTLING OF NON-ALCOHOLIC
8 BEVERAGES FOR WHOLESALE DISTRIBUTION.
9 (8) THE OPERATION OF A SAW MILL OR PLANING MILL FOR THE
10 PRODUCTION OF LUMBER OR LUMBER PRODUCTS FOR SALE.
11 (9) THE MILLING FOR SALE OF FLOUR OR MEAL FROM GRAINS.
12 (10) THE SLAUGHTERING AND DRESSING OF ANIMALS FOR MEAT TO BE
13 SOLD OR TO BE USED IN PREPARING MEAT PRODUCTS FOR SALE, AND THE
14 PREPARATION OF MEAT PRODUCTS INCLUDING LARD, TALLOW, GREASE,
15 COOKING AND INEDIBLE OILS FOR WHOLESALE DISTRIBUTION.
16 (11) THE PROCESSING OF USED LUBRICATING OILS.
17 (12) THE BROADCASTING OF RADIO AND TELEVISION PROGRAMS OF
18 LICENSED COMMERCIAL OR EDUCATIONAL STATIONS.
19 * * *
20 (F) "PURCHASE AT RETAIL."
21 (1) THE ACQUISITION FOR A CONSIDERATION OF THE OWNERSHIP,
22 CUSTODY OR POSSESSION OF TANGIBLE PERSONAL PROPERTY OTHER THAN
23 FOR RESALE BY THE PERSON ACQUIRING THE SAME WHEN SUCH
24 ACQUISITION IS MADE FOR THE PURPOSE OF CONSUMPTION OR USE,
25 WHETHER SUCH ACQUISITION SHALL BE ABSOLUTE OR CONDITIONAL, AND
26 BY WHATSOEVER MEANS THE SAME SHALL HAVE BEEN EFFECTED.
27 (2) THE ACQUISITION OF A LICENSE TO USE OR CONSUME, AND THE
28 RENTAL OR LEASE OF TANGIBLE PERSONAL PROPERTY, OTHER THAN FOR
29 RESALE REGARDLESS OF THE PERIOD OF TIME THE LESSEE HAS
30 POSSESSION OR CUSTODY OF THE PROPERTY.
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1 (3) THE OBTAINING FOR A CONSIDERATION OF THOSE SERVICES
2 DESCRIBED IN SUBCLAUSES (2), (3) AND (4) OF CLAUSE (K) OF THIS
3 SECTION OTHER THAN FOR RESALE.
4 (4) A RETENTION AFTER MARCH 7, 1956, OF POSSESSION, CUSTODY
5 OR A LICENSE TO USE OR CONSUME PURSUANT TO A RENTAL CONTRACT OR
6 OTHER LEASE ARRANGEMENT (OTHER THAN AS SECURITY), OTHER THAN FOR
7 RESALE.
8 (5) THE OBTAINING FOR A CONSIDERATION OF THOSE SERVICES
9 DESCRIBED IN SUBCLAUSES (11) THROUGH (16) AND (18) OF CLAUSE (K)
10 OF THIS SECTION.
11 THE TERM "PURCHASE AT RETAIL" WITH RESPECT TO "LIQUOR" AND
12 "MALT OR BREWED BEVERAGES" SHALL INCLUDE THE PURCHASE OF
13 "LIQUOR" FROM ANY "PENNSYLVANIA LIQUOR STORE" BY ANY PERSON FOR
14 ANY PURPOSE, AND THE PURCHASE OF "MALT OR BREWED BEVERAGES" FROM
15 A "MANUFACTURER OF MALT OR BREWED BEVERAGES," "DISTRIBUTOR" OR
16 "IMPORTING DISTRIBUTOR" BY ANY PERSON FOR ANY PURPOSE, EXCEPT
17 PURCHASES FROM A "MANUFACTURER OF MALT OR BREWED BEVERAGES" BY A
18 "DISTRIBUTOR" OR "IMPORTING DISTRIBUTOR" OR PURCHASES FROM AN
19 "IMPORTING DISTRIBUTOR" BY A "DISTRIBUTOR" WITHIN THE MEANING OF
20 THE "LIQUOR CODE." THE TERM "PURCHASE AT RETAIL" SHALL NOT
21 INCLUDE ANY PURCHASE OF "MALT OR BREWED BEVERAGES" FROM A
22 "RETAIL DISPENSER" OR ANY PURCHASE OF "LIQUOR" OR "MALT OR
23 BREWED BEVERAGES" FROM A PERSON HOLDING A "RETAIL LIQUOR
24 LICENSE" WITHIN THE MEANING OF AND PURSUANT TO THE PROVISIONS OF
25 THE "LIQUOR CODE," BUT SHALL INCLUDE ANY PURCHASE OR ACQUISITION
26 OF "LIQUOR" OR "MALT OR BREWED BEVERAGES" OTHER THAN PURSUANT TO
27 THE PROVISIONS OF THE "LIQUOR CODE."
28 (G) "PURCHASE PRICE."
29 (1) THE TOTAL VALUE OF ANYTHING PAID OR DELIVERED, OR
30 PROMISED TO BE PAID OR DELIVERED, WHETHER IT BE MONEY OR
19970H0134B0269 - 9 -
1 OTHERWISE, IN COMPLETE PERFORMANCE OF A SALE AT RETAIL OR
2 PURCHASE AT RETAIL, AS HEREIN DEFINED, WITHOUT ANY DEDUCTION ON
3 ACCOUNT OF THE COST OR VALUE OF THE PROPERTY SOLD, COST OR VALUE
4 OF TRANSPORTATION, COST OR VALUE OF LABOR OR SERVICE, INTEREST
5 OR DISCOUNT PAID OR ALLOWED AFTER THE SALE IS CONSUMMATED, ANY
6 OTHER TAXES IMPOSED BY THE COMMONWEALTH OF PENNSYLVANIA OR ANY
7 OTHER EXPENSE EXCEPT THAT THERE SHALL BE EXCLUDED ANY GRATUITY
8 OR SEPARATELY STATED DEPOSIT CHARGE FOR RETURNABLE CONTAINERS.
9 (2) THERE SHALL BE DEDUCTED FROM THE PURCHASE PRICE THE
10 VALUE OF ANY TANGIBLE PERSONAL PROPERTY ACTUALLY TAKEN IN TRADE
11 OR EXCHANGE IN LIEU OF THE WHOLE OR ANY PART OF THE PURCHASE
12 PRICE. FOR THE PURPOSE OF THIS CLAUSE, THE AMOUNT ALLOWED BY
13 REASON OF TANGIBLE PERSONAL PROPERTY ACTUALLY TAKEN IN TRADE OR
14 EXCHANGE SHALL BE CONSIDERED THE VALUE OF SUCH PROPERTY.
15 (3) IN DETERMINING THE PURCHASE PRICE ON THE SALE OR USE OF
16 TAXABLE TANGIBLE PERSONAL PROPERTY OR A SERVICE DESCRIBED IN
17 SUBCLAUSES (11) THROUGH (16) AND (18) OF CLAUSE (K) OF THIS
18 SECTION WHERE, BECAUSE OF AFFILIATION OF INTERESTS BETWEEN THE
19 VENDOR AND PURCHASER, OR IRRESPECTIVE OF ANY SUCH AFFILIATION,
20 IF FOR ANY OTHER REASON THE PURCHASE PRICE DECLARED BY THE
21 VENDOR OR TAXPAYER ON THE TAXABLE SALE OR USE OF SUCH TANGIBLE
22 PERSONAL PROPERTY OR SERVICE IS, IN THE OPINION OF THE
23 DEPARTMENT, NOT INDICATIVE OF THE TRUE VALUE OF THE ARTICLE OR
24 SERVICE OR THE FAIR PRICE THEREOF, THE DEPARTMENT SHALL,
25 PURSUANT TO UNIFORM AND EQUITABLE RULES, DETERMINE THE AMOUNT OF
26 CONSTRUCTIVE PURCHASE PRICE UPON THE BASIS OF WHICH THE TAX
27 SHALL BE COMPUTED AND LEVIED. SUCH RULES SHALL PROVIDE FOR A
28 CONSTRUCTIVE AMOUNT OF PURCHASE PRICE FOR EACH SUCH SALE OR USE
29 WHICH WOULD NATURALLY AND FAIRLY BE CHARGED IN AN ARMS-LENGTH
30 TRANSACTION IN WHICH THE ELEMENT OF COMMON INTEREST BETWEEN THE
19970H0134B0269 - 10 -
1 VENDOR OR PURCHASER IS ABSENT OR IF NO COMMON INTEREST EXISTS,
2 ANY OTHER ELEMENT CAUSING A DISTORTION OF THE PRICE OR VALUE IS
3 LIKEWISE ABSENT. FOR THE PURPOSE OF THIS CLAUSE WHERE A TAXABLE
4 SALE OR PURCHASE AT RETAIL TRANSACTION OCCURS BETWEEN A PARENT
5 AND A SUBSIDIARY, AFFILIATE OR CONTROLLED CORPORATION OF SUCH
6 PARENT CORPORATION, THERE SHALL BE A REBUTTABLE PRESUMPTION,
7 THAT BECAUSE OF SUCH COMMON INTEREST SUCH TRANSACTION WAS NOT AT
8 ARMS-LENGTH.
9 (4) WHERE THERE IS A TRANSFER OR RETENTION OF POSSESSION OR
10 CUSTODY, WHETHER IT BE TERMED A RENTAL, LEASE, SERVICE OR
11 OTHERWISE, OF TANGIBLE PERSONAL PROPERTY INCLUDING, BUT NOT
12 LIMITED TO LINENS, APRONS, MOTOR VEHICLES, TRAILERS, TIRES,
13 INDUSTRIAL OFFICE AND CONSTRUCTION EQUIPMENT, AND BUSINESS
14 MACHINES THE FULL CONSIDERATION PAID OR DELIVERED TO THE VENDOR
15 OR LESSOR SHALL BE CONSIDERED THE PURCHASE PRICE, EVEN THOUGH
16 SUCH CONSIDERATION BE SEPARATELY STATED AND BE DESIGNATED AS
17 PAYMENT FOR PROCESSING, LAUNDERING, SERVICE, MAINTENANCE,
18 INSURANCE, REPAIRS, DEPRECIATION OR OTHERWISE. WHERE THE VENDOR
19 OR LESSOR SUPPLIES OR PROVIDES AN EMPLOYE TO OPERATE SUCH
20 TANGIBLE PERSONAL PROPERTY, THE VALUE OF THE LABOR THUS SUPPLIED
21 MAY BE EXCLUDED AND SHALL NOT BE CONSIDERED AS PART OF THE
22 PURCHASE PRICE IF SEPARATELY STATED. THERE SHALL ALSO BE
23 INCLUDED AS PART OF THE PURCHASE PRICE THE VALUE OF ANYTHING
24 PAID OR DELIVERED, OR PROMISED TO BE PAID OR DELIVERED BY A
25 LESSEE, WHETHER IT BE MONEY OR OTHERWISE, TO ANY PERSON OTHER
26 THAN THE VENDOR OR LESSOR BY REASON OF THE MAINTENANCE,
27 INSURANCE OR REPAIR OF THE TANGIBLE PERSONAL PROPERTY WHICH A
28 LESSEE HAS THE POSSESSION OR CUSTODY OF UNDER A RENTAL CONTRACT
29 OR LEASE ARRANGEMENT.
30 (5) WITH RESPECT TO THE TAX IMPOSED BY SUBSECTION (B) OF
19970H0134B0269 - 11 -
1 SECTION 202 UPON ANY TANGIBLE PERSONAL PROPERTY ORIGINALLY
2 PURCHASED BY THE USER OF SUCH PROPERTY SIX MONTHS OR LONGER
3 PRIOR TO THE FIRST TAXABLE USE OF SUCH PROPERTY WITHIN THE
4 COMMONWEALTH, SUCH USER MAY ELECT TO PAY TAX ON A SUBSTITUTED
5 BASE DETERMINED BY CONSIDERING THE PURCHASE PRICE OF SUCH
6 PROPERTY FOR TAX PURPOSES TO BE EQUAL TO THE PREVAILING MARKET
7 PRICE OF SIMILAR TANGIBLE PERSONAL PROPERTY AT THE TIME AND
8 PLACE OF SUCH FIRST USE WITHIN THE COMMONWEALTH. SUCH ELECTION
9 MUST BE MADE AT THE TIME OF FILING A TAX RETURN WITH THE
10 DEPARTMENT AND REPORTING SUCH TAX LIABILITY AND PAYING THE
11 PROPER TAX DUE PLUS ALL ACCRUED PENALTIES AND INTEREST, IF THERE
12 BE ANY, WITHIN SIX MONTHS OF THE DUE DATE OF SUCH REPORT AND
13 PAYMENT, AS PROVIDED FOR BY SUBSECTIONS (A) AND (C) OF SECTION
14 217 OF THIS ARTICLE.
15 (6) THE PURCHASE PRICE OF EMPLOYMENT AGENCY SERVICES AND
16 HELP SUPPLY SERVICES SHALL BE THE SERVICE FEE PAID BY THE
17 PURCHASER TO THE VENDOR OR SUPPLYING ENTITY. THE TERM "SERVICE
18 FEE," AS USED IN THIS SUBCLAUSE, SHALL BE THE TOTAL CHARGE OR
19 FEE OF THE VENDOR OR SUPPLYING ENTITY MINUS THE COSTS OF THE
20 SUPPLIED EMPLOYE WHICH COSTS ARE WAGES, SALARIES, BONUSES AND
21 COMMISSIONS, EMPLOYMENT BENEFITS, EXPENSE REIMBURSEMENTS AND
22 PAYROLL AND WITHHOLDING TAXES, TO THE EXTENT THAT THESE COSTS
23 ARE SPECIFICALLY ITEMIZED OR THAT THESE COSTS IN AGGREGATE ARE
24 STATED IN BILLINGS FROM THE VENDOR OR SUPPLYING ENTITY. TO THE
25 EXTENT THAT THESE COSTS ARE NOT ITEMIZED OR STATED ON THE
26 BILLINGS, THEN THE SERVICE FEE SHALL BE THE TOTAL CHARGE OR FEE
27 OF THE VENDOR OR SUPPLYING ENTITY.
28 (7) UNLESS THE VENDOR SEPARATELY STATES THAT PORTION OF THE
29 BILLING WHICH APPLIES TO PREMIUM CABLE SERVICE AS DEFINED IN
30 CLAUSE (LL) OF THIS SECTION, THE TOTAL BILL FOR THE PROVISION OF
19970H0134B0269 - 12 -
1 ALL CABLE SERVICES SHALL BE THE PURCHASE PRICE.
2 * * *
3 (K) "SALE AT RETAIL."
4 (1) ANY TRANSFER, FOR A CONSIDERATION, OF THE OWNERSHIP,
5 CUSTODY OR POSSESSION OF TANGIBLE PERSONAL PROPERTY, INCLUDING
6 THE GRANT OF A LICENSE TO USE OR CONSUME WHETHER SUCH TRANSFER
7 BE ABSOLUTE OR CONDITIONAL AND BY WHATSOEVER MEANS THE SAME
8 SHALL HAVE BEEN EFFECTED.
9 (2) THE RENDITION OF THE SERVICE OF PRINTING OR IMPRINTING
10 OF TANGIBLE PERSONAL PROPERTY FOR A CONSIDERATION FOR PERSONS
11 WHO FURNISH, EITHER DIRECTLY OR INDIRECTLY THE MATERIALS USED IN
12 THE PRINTING OR IMPRINTING.
13 (3) THE RENDITION FOR A CONSIDERATION OF THE SERVICE OF--
14 (I) WASHING, CLEANING, WAXING, POLISHING OR LUBRICATING OF
15 MOTOR VEHICLES OF ANOTHER, WHETHER OR NOT ANY TANGIBLE PERSONAL
16 PROPERTY IS TRANSFERRED IN CONJUNCTION THEREWITH; AND
17 (II) INSPECTING MOTOR VEHICLES PURSUANT TO THE MANDATORY
18 REQUIREMENTS OF "THE VEHICLE CODE."
19 (4) THE RENDITION FOR A CONSIDERATION OF THE SERVICE OF
20 REPAIRING, ALTERING, MENDING, PRESSING, FITTING, DYEING,
21 LAUNDERING, DRYCLEANING OR CLEANING TANGIBLE PERSONAL PROPERTY
22 OTHER THAN WEARING APPAREL OR SHOES, OR APPLYING OR INSTALLING
23 TANGIBLE PERSONAL PROPERTY AS A REPAIR OR REPLACEMENT PART OF
24 OTHER TANGIBLE PERSONAL PROPERTY EXCEPT WEARING APPAREL OR SHOES
25 FOR A CONSIDERATION, WHETHER OR NOT THE SERVICES ARE PERFORMED
26 DIRECTLY OR BY ANY MEANS OTHER THAN BY COIN-OPERATED SELF-
27 SERVICE LAUNDRY EQUIPMENT FOR WEARING APPAREL OR HOUSEHOLD GOODS
28 AND WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS TRANSFERRED
29 IN CONJUNCTION THEREWITH, EXCEPT SUCH SERVICES AS ARE RENDERED
30 IN THE CONSTRUCTION, RECONSTRUCTION, REMODELING, REPAIR OR
19970H0134B0269 - 13 -
1 MAINTENANCE OF REAL ESTATE: PROVIDED, HOWEVER, THAT THIS
2 SUBCLAUSE SHALL NOT BE DEEMED TO IMPOSE TAX UPON SUCH SERVICES
3 IN THE PREPARATION FOR SALE OF NEW ITEMS WHICH ARE EXCLUDED FROM
4 THE TAX UNDER CLAUSE (26) OF SECTION 204, OR UPON DIAPER
5 SERVICE.
6 (8) ANY RETENTION OF POSSESSION, CUSTODY OR A LICENSE TO USE
7 OR CONSUME TANGIBLE PERSONAL PROPERTY OR ANY FURTHER OBTAINING
8 OF SERVICES DESCRIBED IN SUBCLAUSES (2), (3) AND (4) OF THIS
9 CLAUSE PURSUANT TO A RENTAL OR SERVICE CONTRACT OR OTHER
10 ARRANGEMENT (OTHER THAN AS SECURITY).
11 THE TERM "SALE AT RETAIL" SHALL NOT INCLUDE (I) ANY SUCH
12 TRANSFER OF TANGIBLE PERSONAL PROPERTY OR RENDITION OF SERVICES
13 FOR THE PURPOSE OF RESALE, OR (II) SUCH RENDITION OF SERVICES OR
14 THE TRANSFER OF TANGIBLE PERSONAL PROPERTY INCLUDING, BUT NOT
15 LIMITED TO, MACHINERY AND EQUIPMENT AND PARTS THEREFOR AND
16 SUPPLIES TO BE USED OR CONSUMED BY THE PURCHASER DIRECTLY IN THE
17 OPERATIONS OF--
18 (A) THE MANUFACTURE OF TANGIBLE PERSONAL PROPERTY;
19 (B) FARMING, DAIRYING, AGRICULTURE, HORTICULTURE OR
20 FLORICULTURE WHEN ENGAGED IN AS A BUSINESS ENTERPRISE. THE TERM
21 "FARMING" SHALL INCLUDE THE PROPAGATION AND RAISING OF RANCH
22 RAISED FUR-BEARING ANIMALS AND THE PROPAGATION OF GAME BIRDS FOR
23 COMMERCIAL PURPOSES BY HOLDERS OF PROPAGATION PERMITS ISSUED
24 UNDER 34 PA.C.S. (RELATING TO GAME);
25 (C) THE PRODUCING, DELIVERING OR RENDERING OF A PUBLIC
26 UTILITY SERVICE, OR IN CONSTRUCTING, RECONSTRUCTING, REMODELING,
27 REPAIRING OR MAINTAINING THE FACILITIES WHICH ARE DIRECTLY USED
28 IN PRODUCING, DELIVERING OR RENDERING SUCH SERVICE;
29 (D) PROCESSING AS DEFINED IN CLAUSE (D) OF THIS SECTION.
30 THE EXCLUSIONS PROVIDED IN PARAGRAPHS (A), (B), (C) AND (D)
19970H0134B0269 - 14 -
1 SHALL NOT APPLY TO ANY VEHICLE REQUIRED TO BE REGISTERED UNDER
2 THE VEHICLE CODE, EXCEPT THOSE VEHICLES USED DIRECTLY BY A
3 PUBLIC UTILITY ENGAGED IN BUSINESS AS A COMMON CARRIER; TO
4 MAINTENANCE FACILITIES; OR TO MATERIALS, SUPPLIES OR EQUIPMENT
5 TO BE USED OR CONSUMED IN THE CONSTRUCTION, RECONSTRUCTION,
6 REMODELING, REPAIR OR MAINTENANCE OF REAL ESTATE OTHER THAN
7 DIRECTLY USED MACHINERY, EQUIPMENT, PARTS OR FOUNDATIONS
8 THEREFOR THAT MAY BE AFFIXED TO SUCH REAL ESTATE.
9 THE EXCLUSIONS PROVIDED IN PARAGRAPHS (A), (B), (C) AND (D)
10 SHALL NOT APPLY TO TANGIBLE PERSONAL PROPERTY OR SERVICES TO BE
11 USED OR CONSUMED IN MANAGERIAL SALES OR OTHER NONOPERATIONAL
12 ACTIVITIES, NOR TO THE PURCHASE OR USE OF TANGIBLE PERSONAL
13 PROPERTY OR SERVICES BY ANY PERSON OTHER THAN THE PERSON
14 DIRECTLY USING THE SAME IN THE OPERATIONS DESCRIBED IN
15 PARAGRAPHS (A), (B), (C) AND (D) HEREIN.
16 THE EXCLUSION PROVIDED IN PARAGRAPH (C) SHALL NOT APPLY TO
17 (I) CONSTRUCTION MATERIALS, SUPPLIES OR EQUIPMENT USED TO
18 CONSTRUCT, RECONSTRUCT, REMODEL, REPAIR OR MAINTAIN FACILITIES
19 NOT USED DIRECTLY BY THE PURCHASER IN THE PRODUCTION, DELIVERING
20 OR RENDITION OF PUBLIC UTILITY SERVICE, (II) CONSTRUCTION
21 MATERIALS, SUPPLIES OR EQUIPMENT USED TO CONSTRUCT, RECONSTRUCT,
22 REMODEL, REPAIR OR MAINTAIN A BUILDING, ROAD OR SIMILAR
23 STRUCTURE, OR (III) TOOLS AND EQUIPMENT USED BUT NOT INSTALLED
24 IN THE MAINTENANCE OF FACILITIES USED DIRECTLY IN THE
25 PRODUCTION, DELIVERING OR RENDITION OF A PUBLIC UTILITY SERVICE.
26 THE EXCLUSIONS PROVIDED IN PARAGRAPHS (A), (B), (C) AND (D)
27 SHALL NOT APPLY TO THE SERVICES ENUMERATED IN CLAUSES (K)(11)
28 THROUGH (16) AND (18) AND (W) THROUGH (II) AND (KK), EXCEPT THAT
29 THE EXCLUSION PROVIDED IN THIS SUBCLAUSE FOR FARMING, DAIRYING
30 AND AGRICULTURE SHALL APPLY TO THE SERVICE ENUMERATED IN CLAUSE
19970H0134B0269 - 15 -
1 (Z).
2 (9) WHERE TANGIBLE PERSONAL PROPERTY OR SERVICES ARE
3 UTILIZED FOR PURPOSES CONSTITUTING A "SALE AT RETAIL" AND FOR
4 PURPOSES EXCLUDED FROM THE DEFINITION OF "SALE AT RETAIL," IT
5 SHALL BE PRESUMED THAT SUCH TANGIBLE PERSONAL PROPERTY OR
6 SERVICES ARE UTILIZED FOR PURPOSES CONSTITUTING A "SALE AT
7 RETAIL" AND SUBJECT TO TAX UNLESS THE USER THEREOF PROVES TO THE
8 DEPARTMENT THAT THE PREDOMINANT PURPOSES FOR WHICH SUCH TANGIBLE
9 PERSONAL PROPERTY OR SERVICES ARE UTILIZED DO NOT CONSTITUTE A
10 "SALE AT RETAIL."
11 (10) THE TERM "SALE AT RETAIL" WITH RESPECT TO "LIQUOR" AND
12 "MALT OR BREWED BEVERAGES" SHALL INCLUDE THE SALE OF "LIQUOR" BY
13 ANY "PENNSYLVANIA LIQUOR STORE" TO ANY PERSON FOR ANY PURPOSE,
14 AND THE SALE OF "MALT OR BREWED BEVERAGES" BY A "MANUFACTURER OF
15 MALT OR BREWED BEVERAGES," "DISTRIBUTOR" OR "IMPORTING
16 DISTRIBUTOR" TO ANY PERSON FOR ANY PURPOSE, EXCEPT SALES BY A
17 "MANUFACTURER OF MALT OR BREWED BEVERAGES" TO A "DISTRIBUTOR" OR
18 "IMPORTING DISTRIBUTOR" OR SALES BY AN "IMPORTING DISTRIBUTOR"
19 TO A "DISTRIBUTOR" WITHIN THE MEANING OF THE "LIQUOR CODE." THE
20 TERM "SALE AT RETAIL" SHALL NOT INCLUDE ANY SALE OF "MALT OR
21 BREWED BEVERAGES" BY A "RETAIL DISPENSER" OR ANY SALE OF
22 "LIQUOR" OR "MALT OR BREWED BEVERAGES" BY A PERSON HOLDING A
23 "RETAIL LIQUOR LICENSE" WITHIN THE MEANING OF AND PURSUANT TO
24 THE PROVISIONS OF THE "LIQUOR CODE," BUT SHALL INCLUDE ANY SALE
25 OF "LIQUOR" OR "MALT OR BREWED BEVERAGES" OTHER THAN PURSUANT TO
26 THE PROVISIONS OF THE "LIQUOR CODE."
27 (11) THE RENDITION FOR A CONSIDERATION OF LOBBYING SERVICES.
28 (12) THE RENDITION FOR A CONSIDERATION OF ADJUSTMENT
29 SERVICES, COLLECTION SERVICES OR CREDIT REPORTING SERVICES.
30 (13) THE RENDITION FOR A CONSIDERATION OF SECRETARIAL OR
19970H0134B0269 - 16 -
1 EDITING SERVICES.
2 (14) THE RENDITION FOR A CONSIDERATION OF DISINFECTING OR
3 PEST CONTROL SERVICES, BUILDING MAINTENANCE OR CLEANING
4 SERVICES.
5 (15) THE RENDITION FOR A CONSIDERATION OF EMPLOYMENT AGENCY
6 SERVICES OR HELP SUPPLY SERVICES.
7 (16) THE RENDITION FOR A CONSIDERATION OF COMPUTER
8 PROGRAMMING SERVICES; COMPUTER-INTEGRATED SYSTEMS DESIGN
9 SERVICES; COMPUTER PROCESSING, DATA PREPARATION OR PROCESSING
10 SERVICES; INFORMATION RETRIEVAL SERVICES; COMPUTER FACILITIES
11 MANAGEMENT SERVICES; OR OTHER COMPUTER-RELATED SERVICES. AT A
12 MINIMUM, SUCH SERVICES SHALL NOT INCLUDE SERVICES THAT ARE PART
13 OF ELECTRONIC FUND TRANSFERS, ELECTRONIC FINANCIAL TRANSACTIONS
14 OR SERVICES, BANKING OR TRUST SERVICES, OR MANAGEMENT OR
15 ADMINISTRATIVE SERVICES, INCLUDING TRANSFER AGENCY, SHAREHOLDER,
16 CUSTODIAL AND PORTFOLIO ACCOUNTING SERVICES, PROVIDED DIRECTLY
17 TO ANY ENTITY THAT DULY QUALIFIES TO BE TAXED AS A REGULATED
18 INVESTMENT COMPANY OR A REAL ESTATE INVESTMENT TRUST UNDER THE
19 PROVISIONS OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-
20 514, 26 U.S.C. § 1 ET SEQ.) OR TO AN ENTITY THAT PROVIDES SUCH
21 SERVICES TO AN ENTITY SO QUALIFYING.
22 [(17) THE RENDITION FOR A CONSIDERATION OF LAWN CARE
23 SERVICE.]
24 (18) THE RENDITION FOR A CONSIDERATION OF SELF-STORAGE
25 SERVICE.
26 * * *
27 (O) "USE."
28 (1) THE EXERCISE OF ANY RIGHT OR POWER INCIDENTAL TO THE
29 OWNERSHIP, CUSTODY OR POSSESSION OF TANGIBLE PERSONAL PROPERTY
30 AND SHALL INCLUDE, BUT NOT BE LIMITED TO TRANSPORTATION, STORAGE
19970H0134B0269 - 17 -
1 OR CONSUMPTION.
2 (2) THE OBTAINING BY A PURCHASER OF THE SERVICE OF PRINTING
3 OR IMPRINTING OF TANGIBLE PERSONAL PROPERTY WHEN SUCH PURCHASER
4 FURNISHES, EITHER DIRECTLY OR INDIRECTLY, THE ARTICLES USED IN
5 THE PRINTING OR IMPRINTING.
6 (3) THE OBTAINING BY A PURCHASER OF THE SERVICES OF (I)
7 WASHING, CLEANING, WAXING, POLISHING OR LUBRICATING OF MOTOR
8 VEHICLES WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS
9 TRANSFERRED TO THE PURCHASER IN CONJUNCTION WITH SUCH SERVICES,
10 AND (II) INSPECTING MOTOR VEHICLES PURSUANT TO THE MANDATORY
11 REQUIREMENTS OF "THE VEHICLE CODE."
12 (4) THE OBTAINING BY A PURCHASER OF THE SERVICE OF
13 REPAIRING, ALTERING, MENDING, PRESSING, FITTING, DYEING,
14 LAUNDERING, DRYCLEANING OR CLEANING TANGIBLE PERSONAL PROPERTY
15 OTHER THAN WEARING APPAREL OR SHOES OR APPLYING OR INSTALLING
16 TANGIBLE PERSONAL PROPERTY AS A REPAIR OR REPLACEMENT PART OF
17 OTHER TANGIBLE PERSONAL PROPERTY OTHER THAN WEARING APPAREL OR
18 SHOES, WHETHER OR NOT THE SERVICES ARE PERFORMED DIRECTLY OR BY
19 ANY MEANS OTHER THAN BY MEANS OF COIN-OPERATED SELF-SERVICE
20 LAUNDRY EQUIPMENT FOR WEARING APPAREL OR HOUSEHOLD GOODS, AND
21 WHETHER OR NOT ANY TANGIBLE PERSONAL PROPERTY IS TRANSFERRED TO
22 THE PURCHASER IN CONJUNCTION THEREWITH, EXCEPT SUCH SERVICES AS
23 ARE OBTAINED IN THE CONSTRUCTION, RECONSTRUCTION, REMODELING,
24 REPAIR OR MAINTENANCE OF REAL ESTATE: PROVIDED, HOWEVER, THAT
25 THIS SUBCLAUSE SHALL NOT BE DEEMED TO IMPOSE TAX UPON SUCH
26 SERVICES IN THE PREPARATION FOR SALE OF NEW ITEMS WHICH ARE
27 EXCLUDED FROM THE TAX UNDER CLAUSE (26) OF SECTION 204, OR UPON
28 DIAPER SERVICE: AND PROVIDED FURTHER, THAT THE TERM "USE" SHALL
29 NOT INCLUDE--
30 (A) ANY TANGIBLE PERSONAL PROPERTY ACQUIRED AND KEPT,
19970H0134B0269 - 18 -
1 RETAINED OR OVER WHICH POWER IS EXERCISED WITHIN THIS
2 COMMONWEALTH ON WHICH THE TAXING OF THE STORAGE, USE OR OTHER
3 CONSUMPTION THEREOF IS EXPRESSLY PROHIBITED BY THE CONSTITUTION
4 OF THE UNITED STATES OR WHICH IS EXCLUDED FROM TAX UNDER OTHER
5 PROVISIONS OF THIS ARTICLE.
6 (B) THE USE OR CONSUMPTION OF TANGIBLE PERSONAL PROPERTY,
7 INCLUDING BUT NOT LIMITED TO MACHINERY AND EQUIPMENT AND PARTS
8 THEREFOR, AND SUPPLIES OR THE OBTAINING OF THE SERVICES
9 DESCRIBED IN SUBCLAUSES (2), (3) AND (4) OF THIS CLAUSE DIRECTLY
10 IN THE OPERATIONS OF--
11 (I) THE MANUFACTURE OF TANGIBLE PERSONAL PROPERTY;
12 (II) FARMING, DAIRYING, AGRICULTURE, HORTICULTURE OR
13 FLORICULTURE WHEN ENGAGED IN AS A BUSINESS ENTERPRISE. THE TERM
14 "FARMING" SHALL INCLUDE THE PROPAGATION AND RAISING OF RANCH-
15 RAISED FURBEARING ANIMALS AND THE PROPAGATION OF GAME BIRDS FOR
16 COMMERCIAL PURPOSES BY HOLDERS OF PROPAGATION PERMITS ISSUED
17 UNDER 34 PA.C.S. (RELATING TO GAME);
18 (III) THE PRODUCING, DELIVERING OR RENDERING OF A PUBLIC
19 UTILITY SERVICE, OR IN CONSTRUCTING, RECONSTRUCTING, REMODELING,
20 REPAIRING OR MAINTAINING THE FACILITIES WHICH ARE DIRECTLY USED
21 IN PRODUCING, DELIVERING OR RENDERING SUCH SERVICE;
22 (IV) PROCESSING AS DEFINED IN SUBCLAUSE (D) OF THIS SECTION.
23 THE EXCLUSIONS PROVIDED IN SUBPARAGRAPHS (I), (II), (III) AND
24 (IV) SHALL NOT APPLY TO ANY VEHICLE REQUIRED TO BE REGISTERED
25 UNDER THE VEHICLE CODE EXCEPT THOSE VEHICLES DIRECTLY USED BY A
26 PUBLIC UTILITY ENGAGED IN THE BUSINESS AS A COMMON CARRIER; TO
27 MAINTENANCE FACILITIES; OR TO MATERIALS, SUPPLIES OR EQUIPMENT
28 TO BE USED OR CONSUMED IN THE CONSTRUCTION, RECONSTRUCTION,
29 REMODELING, REPAIR OR MAINTENANCE OF REAL ESTATE OTHER THAN
30 DIRECTLY USED MACHINERY, EQUIPMENT, PARTS OR FOUNDATIONS
19970H0134B0269 - 19 -
1 THEREFOR THAT MAY BE AFFIXED TO SUCH REAL ESTATE. THE EXCLUSIONS
2 PROVIDED IN SUBPARAGRAPHS (I), (II), (III) AND (IV) SHALL NOT
3 APPLY TO TANGIBLE PERSONAL PROPERTY OR SERVICES TO BE USED OR
4 CONSUMED IN MANAGERIAL SALES OR OTHER NONOPERATIONAL ACTIVITIES,
5 NOR TO THE PURCHASE OR USE OF TANGIBLE PERSONAL PROPERTY OR
6 SERVICES BY ANY PERSON OTHER THAN THE PERSON DIRECTLY USING THE
7 SAME IN THE OPERATIONS DESCRIBED IN SUBPARAGRAPHS (I), (II),
8 (III) AND (IV).
9 THE EXCLUSION PROVIDED IN SUBPARAGRAPH (III) SHALL NOT APPLY
10 TO (A) CONSTRUCTION MATERIALS, SUPPLIES OR EQUIPMENT USED TO
11 CONSTRUCT, RECONSTRUCT, REMODEL, REPAIR OR MAINTAIN FACILITIES
12 NOT USED DIRECTLY BY THE PURCHASER IN THE PRODUCTION, DELIVERING
13 OR RENDITION OF PUBLIC UTILITY SERVICE OR (B) TOOLS AND
14 EQUIPMENT USED BUT NOT INSTALLED IN THE MAINTENANCE OF
15 FACILITIES USED DIRECTLY IN THE PRODUCTION, DELIVERING OR
16 RENDITION OF A PUBLIC UTILITY SERVICE.
17 THE EXCLUSION PROVIDED IN SUBPARAGRAPHS (I), (II), (III) AND
18 (IV) SHALL NOT APPLY TO THE SERVICES ENUMERATED IN CLAUSES
19 (O)(9) THROUGH (14) AND (16) AND (W) THROUGH (II) AND (KK),
20 EXCEPT THAT THE EXCLUSION PROVIDED IN SUBPARAGRAPH (II) FOR
21 FARMING, DAIRYING AND AGRICULTURE SHALL APPLY TO THE SERVICE
22 ENUMERATED IN CLAUSE (Z).
23 (5) WHERE TANGIBLE PERSONAL PROPERTY OR SERVICES ARE
24 UTILIZED FOR PURPOSES CONSTITUTING A "USE," AS HEREIN DEFINED,
25 AND FOR PURPOSES EXCLUDED FROM THE DEFINITION OF "USE," IT SHALL
26 BE PRESUMED THAT SUCH PROPERTY OR SERVICES ARE UTILIZED FOR
27 PURPOSES CONSTITUTING A "SALE AT RETAIL" AND SUBJECT TO TAX
28 UNLESS THE USER THEREOF PROVES TO THE DEPARTMENT THAT THE
29 PREDOMINANT PURPOSES FOR WHICH SUCH PROPERTY OR SERVICES ARE
30 UTILIZED DO NOT CONSTITUTE A "SALE AT RETAIL."
19970H0134B0269 - 20 -
1 (6) THE TERM "USE" WITH RESPECT TO "LIQUOR" AND "MALT OR
2 BREWED BEVERAGES" SHALL INCLUDE THE PURCHASE OF "LIQUOR" FROM
3 ANY "PENNSYLVANIA LIQUOR STORE" BY ANY PERSON FOR ANY PURPOSE
4 AND THE PURCHASE OF "MALT OR BREWED BEVERAGES" FROM A
5 "MANUFACTURER OF MALT OR BREWED BEVERAGES," "DISTRIBUTOR" OR
6 "IMPORTING DISTRIBUTOR" BY ANY PERSON FOR ANY PURPOSE, EXCEPT
7 PURCHASES FROM A "MANUFACTURER OF MALT OR BREWED BEVERAGES" BY A
8 "DISTRIBUTOR" OR "IMPORTING DISTRIBUTOR," OR PURCHASES FROM AN
9 "IMPORTING DISTRIBUTOR" BY A "DISTRIBUTOR" WITHIN THE MEANING OF
10 THE "LIQUOR CODE." THE TERM "USE" SHALL NOT INCLUDE ANY PURCHASE
11 OF "MALT OR BREWED BEVERAGES" FROM A "RETAIL DISPENSER" OR ANY
12 PURCHASE OF "LIQUOR" OR "MALT OR BREWED BEVERAGES" FROM A PERSON
13 HOLDING A "RETAIL LIQUOR LICENSE" WITHIN THE MEANING OF AND
14 PURSUANT TO THE PROVISIONS OF THE "LIQUOR CODE," BUT SHALL
15 INCLUDE THE EXERCISE OF ANY RIGHT OR POWER INCIDENTAL TO THE
16 OWNERSHIP, CUSTODY OR POSSESSION OF "LIQUOR" OR "MALT OR BREWED
17 BEVERAGES" OBTAINED BY THE PERSON EXERCISING SUCH RIGHT OR POWER
18 IN ANY MANNER OTHER THAN PURSUANT TO THE PROVISIONS OF THE
19 "LIQUOR CODE."
20 (7) THE USE OF TANGIBLE PERSONAL PROPERTY PURCHASED AT
21 RETAIL UPON WHICH THE SERVICES DESCRIBED IN SUBCLAUSES (2), (3)
22 AND (4) OF THIS CLAUSE HAVE BEEN PERFORMED SHALL BE DEEMED TO BE
23 A USE OF SAID SERVICES BY THE PERSON USING SAID PROPERTY.
24 (8) THE TERM "USE" SHALL NOT INCLUDE THE PROVIDING OF A
25 MOTOR VEHICLE TO A NONPROFIT PRIVATE OR PUBLIC SCHOOL TO BE USED
26 BY SUCH A SCHOOL FOR THE SOLE PURPOSE OF DRIVER EDUCATION.
27 (9) THE OBTAINING BY THE PURCHASER OF LOBBYING SERVICES.
28 (10) THE OBTAINING BY THE PURCHASER OF ADJUSTMENT SERVICES,
29 COLLECTION SERVICES OR CREDIT REPORTING SERVICES.
30 (11) THE OBTAINING BY THE PURCHASER OF SECRETARIAL OR
19970H0134B0269 - 21 -
1 EDITING SERVICES.
2 (12) THE OBTAINING BY THE PURCHASER OF DISINFECTING OR PEST
3 CONTROL SERVICES, BUILDING MAINTENANCE OR CLEANING SERVICES.
4 (13) THE OBTAINING BY THE PURCHASER OF EMPLOYMENT AGENCY
5 SERVICES OR HELP SUPPLY SERVICES.
6 (14) THE OBTAINING BY THE PURCHASER OF COMPUTER PROGRAMMING
7 SERVICES; COMPUTER-INTEGRATED SYSTEMS DESIGN SERVICES; COMPUTER
8 PROCESSING, DATA PREPARATION OR PROCESSING SERVICES; INFORMATION
9 RETRIEVAL SERVICES; COMPUTER FACILITIES MANAGEMENT SERVICES; OR
10 OTHER COMPUTER-RELATED SERVICES. AT A MINIMUM, SUCH SERVICES
11 SHALL NOT INCLUDE SERVICES THAT ARE PART OF ELECTRONIC FUND
12 TRANSFERS, ELECTRONIC FINANCIAL TRANSACTIONS OR SERVICES,
13 BANKING OR TRUST SERVICES, OR MANAGEMENT OR ADMINISTRATIVE
14 SERVICES, INCLUDING TRANSFER AGENCY, SHAREHOLDER, CUSTODIAL AND
15 PORTFOLIO ACCOUNTING SERVICES, PROVIDED DIRECTLY TO ANY ENTITY
16 THAT DULY QUALIFIES TO BE TAXED AS A REGULATED INVESTMENT
17 COMPANY OR A REAL ESTATE INVESTMENT TRUST UNDER THE PROVISIONS
18 OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26
19 U.S.C. § 1 ET SEQ.) OR TO AN ENTITY THAT PROVIDES SUCH SERVICES
20 TO AN ENTITY SO QUALIFYING.
21 [(15) THE OBTAINING BY THE PURCHASER OF LAWN CARE SERVICE.]
22 (16) THE OBTAINING BY THE PURCHASER OF SELF-STORAGE SERVICE.
23 * * *
24 [(JJ) "LAWN CARE SERVICE." PROVIDING SERVICES FOR LAWN
25 UPKEEP, INCLUDING, BUT NOT LIMITED TO, FERTILIZING, LAWN MOWING,
26 SHRUBBERY TRIMMING OR OTHER LAWN TREATMENT SERVICES.]
27 * * *
28 SECTION 2. SECTION 301 INTRODUCTORY PARAGRAPH AND (S.2) OF
29 THE ACT, AMENDED OR ADDED AUGUST 31, 1971 (P.L.362, NO.93) AND
30 DECEMBER 23, 1983 (P.L.370, NO.90), ARE AMENDED TO READ:
19970H0134B0269 - 22 -
1 SECTION 301. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
2 PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANING
3 ASCRIBED TO THEM IN THIS SECTION EXCEPT WHERE THE CONTEXT
4 CLEARLY INDICATES A DIFFERENT MEANING. [ANY] UNLESS SPECIFICALLY
5 PROVIDED OTHERWISE, ANY REFERENCE IN THIS ARTICLE TO THE
6 INTERNAL REVENUE CODE SHALL INCLUDE THE INTERNAL REVENUE CODE OF
7 1954, AS AMENDED TO THE DATE ON WHICH THIS ARTICLE IS EFFECTIVE:
8 * * *
9 (S.2) "SMALL CORPORATION" MEANS ANY CORPORATION WHICH HAS A
10 VALID ELECTION IN EFFECT UNDER SUBCHAPTER S OF CHAPTER 1 OF THE
11 [INTERNAL REVENUE CODE OF 1954, AS AMENDED AS OF JANUARY 1,
12 1983] INTERNAL REVENUE CODE OF 1986, AS AMENDED BY THE ACT OF
13 AUGUST 20, 1996, (PUBLIC LAW 104-188), AND WHICH DOES NOT HAVE
14 PASSIVE INVESTMENT INCOME IN EXCESS OF TWENTY-FIVE PER CENT OF
15 ITS GROSS RECEIPTS. FOR PURPOSES OF THIS CLAUSE, "PASSIVE
16 INVESTMENT INCOME" MEANS GROSS RECEIPTS DERIVED FROM ROYALTIES,
17 RENTS, DIVIDENDS, INTEREST, ANNUITIES AND SALES OR EXCHANGES OF
18 STOCK OR SECURITIES (GROSS RECEIPTS FROM SUCH SALES OR EXCHANGES
19 BEING TAKEN INTO ACCOUNT ONLY TO THE EXTENT OF GAINS THEREFROM).
20 * * *
21 SECTION 3. SECTION 304(D)(1) OF THE ACT, AMENDED JUNE 16,
22 1994 (P.L.279, NO.48), IS AMENDED TO READ:
23 SECTION 304. SPECIAL TAX PROVISIONS FOR POVERTY.--* * *
24 (D) ANY CLAIM FOR SPECIAL TAX PROVISIONS HEREUNDER SHALL BE
25 DETERMINED IN ACCORDANCE WITH THE FOLLOWING:
26 (1) IF THE POVERTY INCOME OF THE CLAIMANT DURING AN ENTIRE
27 TAXABLE YEAR IS [SIX THOUSAND THREE HUNDRED DOLLARS ($6,300)]
28 SEVEN THOUSAND THREE HUNDRED DOLLARS ($7,300) OR LESS, THE
29 CLAIMANT SHALL BE ENTITLED TO A REFUND OR FORGIVENESS OF ANY
30 MONEYS WHICH HAVE BEEN PAID OVER TO (OR WOULD EXCEPT FOR THE
19970H0134B0269 - 23 -
1 PROVISIONS OF THIS ACT BE PAYABLE TO) THE COMMONWEALTH UNDER THE
2 PROVISIONS OF THIS ARTICLE, WITH AN ADDITIONAL INCOME ALLOWANCE
3 OF [THREE THOUSAND DOLLARS ($3,000)] FOUR THOUSAND DOLLARS
4 ($4,000) FOR THE FIRST ADDITIONAL DEPENDENT AND AN ADDITIONAL
5 INCOME ALLOWANCE OF [THREE THOUSAND DOLLARS ($3,000)] FOUR
6 THOUSAND DOLLARS ($4,000) FOR EACH ADDITIONAL DEPENDENT OF THE
7 CLAIMANT.
8 * * *
9 SECTION 4. ARTICLE III OF THE ACT IS AMENDED BY ADDING A
10 PART TO READ:
11 PART VI-A
12 CONTRIBUTIONS OF REFUNDS BY CHECKOFF
13 SECTION 315.1. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
14 PHRASES, WHEN USED IN THIS PART, SHALL HAVE THE MEANINGS
15 ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT
16 CLEARLY INDICATES A DIFFERENT MEANING:
17 "DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.
18 "INDIVIDUAL INCOME TAX." THE TAX IMPOSED UNDER THIS ARTICLE.
19 SECTION 315.2. CONTRIBUTIONS TO BREAST AND CERVICAL CANCER
20 RESEARCH.--(A) THE DEPARTMENT SHALL PROVIDE A SPACE ON THE FACE
21 OF THE PENNSYLVANIA INDIVIDUAL INCOME TAX RETURN FORM WHEREBY AN
22 INDIVIDUAL MAY VOLUNTARILY DESIGNATE A CONTRIBUTION OF ANY
23 AMOUNT DESIRED TO BE UTILIZED FOR BREAST AND CERVICAL CANCER
24 RESEARCH IN THE DEPARTMENT OF HEALTH.
25 (B) THE AMOUNT SO DESIGNATED ON THE INDIVIDUAL INCOME TAX
26 RETURN FORM SHALL BE DEDUCTED FROM THE TAX REFUND TO WHICH THE
27 INDIVIDUAL IS ENTITLED AND SHALL NOT CONSTITUTE A CHARGE AGAINST
28 THE INCOME TAX REVENUES DUE TO THE COMMONWEALTH.
29 (C) THE DEPARTMENT SHALL DETERMINE ANNUALLY THE TOTAL AMOUNT
30 DESIGNATED UNDER THIS SECTION, LESS REASONABLE ADMINISTRATIVE
19970H0134B0269 - 24 -
1 COSTS, AND SHALL REPORT THE AMOUNT TO THE STATE TREASURER, WHO
2 SHALL TRANSFER THE AMOUNT FROM THE GENERAL FUND TO THE
3 PENNSYLVANIA CANCER CONTROL, PREVENTION AND RESEARCH ADVISORY
4 BOARD WITHIN THE DEPARTMENT OF HEALTH.
5 (D) THE DEPARTMENT SHALL PROVIDE ADEQUATE INFORMATION
6 CONCERNING THE CHECKOFF FOR BREAST AND CERVICAL CANCER RESEARCH
7 IN ITS INSTRUCTIONS WHICH ACCOMPANY STATE INCOME TAX RETURN
8 FORMS. THE INFORMATION CONCERNING THE CHECKOFF SHALL INCLUDE THE
9 LISTING OF AN ADDRESS FURNISHED BY THE DEPARTMENT OF HEALTH, TO
10 WHICH CONTRIBUTIONS MAY BE SENT BY TAXPAYERS WISHING TO
11 CONTRIBUTE TO THIS EFFORT, BUT WHO DO NOT RECEIVE REFUNDS.
12 ADDITIONALLY, THE DEPARTMENT OF HEALTH SHALL BE CHARGED WITH THE
13 DUTY TO CONDUCT A PUBLIC INFORMATION CAMPAIGN ON THE
14 AVAILABILITY OF THIS OPPORTUNITY TO PENNSYLVANIA TAXPAYERS.
15 (E) THE DEPARTMENT OF HEALTH SHALL REPORT ANNUALLY TO THE
16 RESPECTIVE COMMITTEES OF THE SENATE AND THE HOUSE OF
17 REPRESENTATIVES WHICH HAVE JURISDICTION OVER HEALTH MATTERS ON
18 THE AMOUNT RECEIVED VIA THE CHECKOFF PLAN AND HOW THE FUNDS WERE
19 UTILIZED.
20 (F) THE GENERAL ASSEMBLY MAY, FROM TIME TO TIME, APPROPRIATE
21 FUNDS FOR BREAST AND CERVICAL CANCER RESEARCH WITHIN THE
22 DEPARTMENT OF HEALTH.
23 SECTION 315.3. CONTRIBUTIONS FOR WILD RESOURCE
24 CONSERVATION.--(A) THE DEPARTMENT SHALL PROVIDE A SPACE ON THE
25 FACE OF THE PENNSYLVANIA INDIVIDUAL INCOME TAX RETURN FORM
26 WHEREBY AN INDIVIDUAL MAY VOLUNTARILY DESIGNATE A CONTRIBUTION
27 OF ANY AMOUNT DESIRED, TO THE WILD RESOURCE CONSERVATION FUND
28 ESTABLISHED UNDER SECTION 5 OF THE ACT OF JUNE 23, 1982
29 (P.L.597, NO.170), KNOWN AS THE "WILD RESOURCE CONSERVATION
30 ACT."
19970H0134B0269 - 25 -
1 (B) THE AMOUNT SO DESIGNATED BY AN INDIVIDUAL ON THE INCOME
2 TAX RETURN FORM SHALL BE DEDUCTED FROM THE TAX REFUND TO WHICH
3 SUCH INDIVIDUAL IS ENTITLED AND SHALL NOT CONSTITUTE A CHARGE
4 AGAINST THE INCOME TAX REVENUES DUE THE COMMONWEALTH.
5 (C) THE DEPARTMENT SHALL DETERMINE ANNUALLY THE TOTAL AMOUNT
6 DESIGNATED PURSUANT TO THIS SECTION AND SHALL REPORT SUCH AMOUNT
7 TO THE STATE TREASURER, WHO SHALL TRANSFER SUCH AMOUNT FROM THE
8 GENERAL FUND TO THE WILD RESOURCE CONSERVATION FUND FOR USE AS
9 PROVIDED IN THE "WILD RESOURCE CONSERVATION ACT." THE DEPARTMENT
10 SHALL BE REIMBURSED FROM THE FUND FOR ANY ADMINISTRATIVE COSTS
11 INCURRED ABOVE AND BEYOND THE COST SAVINGS IT REALIZES AS A
12 RESULT OF INDIVIDUAL TOTAL REFUND DESIGNATIONS.
13 (D) THE DEPARTMENT SHALL PROVIDE ADEQUATE INFORMATION
14 CONCERNING THE WILD RESOURCE CONSERVATION FUND IN ITS
15 INSTRUCTIONS WHICH ACCOMPANY STATE INCOME TAX RETURN FORMS,
16 WHICH SHALL INCLUDE THE LISTING OF AN ADDRESS, FURNISHED TO IT
17 BY THE WILD RESOURCE CONSERVATION BOARD, TO WHICH CONTRIBUTIONS
18 MAY BE SENT BY THOSE TAXPAYERS WISHING TO CONTRIBUTE TO SAID
19 FUND BUT WHO DO NOT RECEIVE REFUNDS.
20 (E) THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING ON
21 OR AFTER JANUARY 1, 1997.
22 SECTION 315.4. CONTRIBUTIONS FOR ORGAN DONATION AWARENESS.--
23 (A) THE DEPARTMENT SHALL PROVIDE A SPACE ON THE FACE OF THE
24 PENNSYLVANIA INDIVIDUAL INCOME TAX RETURN FORM FOR THE 1997 TAX
25 YEAR AND THE 2000 TAX YEAR WHEREBY AN INDIVIDUAL MAY VOLUNTARILY
26 DESIGNATE A CONTRIBUTION OF ANY AMOUNT DESIRED TO THE ORGAN
27 DONATION AWARENESS TRUST FUND ESTABLISHED UNDER 20 PA.C.S. §
28 8622 (RELATING TO ORGAN DONATION AWARENESS TRUST FUND).
29 (B) THE AMOUNT SO DESIGNATED BY AN INDIVIDUAL ON THE
30 PENNSYLVANIA INDIVIDUAL INCOME TAX RETURN FORM SHALL BE DEDUCTED
19970H0134B0269 - 26 -
1 FROM THE TAX REFUND TO WHICH THE INDIVIDUAL IS ENTITLED AND
2 SHALL NOT CONSTITUTE A CHARGE AGAINST THE INCOME TAX REVENUES
3 DUE THE COMMONWEALTH.
4 (C) THE DEPARTMENT SHALL ANNUALLY DETERMINE THE TOTAL AMOUNT
5 DESIGNATED PURSUANT TO THIS SECTION AND SHALL REPORT THAT AMOUNT
6 TO THE STATE TREASURER WHO SHALL TRANSFER THAT AMOUNT TO THE
7 ORGAN DONATION AWARENESS TRUST FUND.
8 (D) THE DEPARTMENT SHALL, IN ALL TAXABLE YEARS FOLLOWING THE
9 EFFECTIVE DATE OF THIS SECTION, PROVIDE ON ITS FORMS OR IN ITS
10 INSTRUCTIONS WHICH ACCOMPANY PENNSYLVANIA INDIVIDUAL INCOME TAX
11 RETURN FORMS ADEQUATE INFORMATION CONCERNING THE ORGAN DONATION
12 AWARENESS TRUST FUND WHICH SHALL INCLUDE THE LISTING OF AN
13 ADDRESS, FURNISHED TO IT BY THE ORGAN DONATION ADVISORY
14 COMMITTEE, TO WHICH CONTRIBUTIONS MAY BE SENT BY THOSE TAXPAYERS
15 WISHING TO CONTRIBUTE TO THE FUND BUT WHO DO NOT RECEIVE
16 REFUNDS.
17 (E) THIS SECTION SHALL APPLY TO TAXABLE YEARS BEGINNING ON
18 OR AFTER JANUARY 1, 1997.
19 SECTION 315.5. CONTRIBUTIONS FOR OLYMPICS.--(A) THE
20 DEPARTMENT SHALL PROVIDE A SPACE ON THE FACE OF THE PENNSYLVANIA
21 INDIVIDUAL INCOME TAX RETURN FORM WHEREBY AN INDIVIDUAL MAY
22 VOLUNTARILY DESIGNATE A CONTRIBUTION OF ANY AMOUNT DESIRED TO
23 THE UNITED STATES OLYMPIC COMMITTEE, PENNSYLVANIA DIVISION.
24 (B) THE AMOUNT SO DESIGNATED BY AN INDIVIDUAL ON THE INCOME
25 TAX RETURN FORM SHALL BE DEDUCTED FROM THE TAX REFUND TO WHICH
26 SUCH INDIVIDUAL IS ENTITLED AND SHALL NOT CONSTITUTE A CHARGE
27 AGAINST THE INCOME TAX REVENUES DUE THE COMMONWEALTH.
28 (C) THE DEPARTMENT SHALL DETERMINE ANNUALLY THE TOTAL AMOUNT
29 DESIGNATED PURSUANT TO THIS SECTION, LESS REASONABLE
30 ADMINISTRATIVE COSTS, AND SHALL REPORT SUCH AMOUNT TO THE STATE
19970H0134B0269 - 27 -
1 TREASURER, WHO SHALL TRANSFER SUCH AMOUNT FROM THE GENERAL FUND
2 TO THE UNITED STATES OLYMPIC COMMITTEE, PENNSYLVANIA DIVISION.
3 SECTION 315.6. CONTRIBUTIONS TO KOREA/VIETNAM MEMORIAL
4 NATIONAL EDUCATION CENTER.--(A) FOR TAX YEARS 1997, 1998, 1999
5 AND 2000, THE DEPARTMENT SHALL PROVIDE A SPACE ON THE FACE OF
6 THE PENNSYLVANIA INDIVIDUAL INCOME TAX RETURN FORM WHEREBY AN
7 INDIVIDUAL MAY VOLUNTARILY DESIGNATE A CONTRIBUTION OF ANY
8 AMOUNT FROM THE INDIVIDUAL'S TAX REFUND TO KVM.
9 (B) THE AMOUNT DESIGNATED BY AN INDIVIDUAL ON THE
10 PENNSYLVANIA INDIVIDUAL INCOME TAX RETURN FORM SHALL BE DEDUCTED
11 FROM THE TAX REFUND TO WHICH SUCH INDIVIDUAL IS ENTITLED AND
12 SHALL NOT CONSTITUTE A CHARGE AGAINST THE INCOME TAX REVENUES
13 DUE THE COMMONWEALTH.
14 (C) THE DEPARTMENT SHALL DETERMINE ANNUALLY THE TOTAL AMOUNT
15 DESIGNATED BY INDIVIDUAL TAXPAYERS UNDER THIS SECTION AND SHALL
16 REPORT THE AMOUNT TO THE STATE TREASURER WHO SHALL PREPARE THE
17 APPROPRIATE DOCUMENTATION AND TRANSFER THE DESIGNATED AMOUNT
18 FROM THE GENERAL FUND TO KVM FOR USE AS PROVIDED IN SECTION
19 2507(B) OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS
20 "THE ADMINISTRATIVE CODE OF 1929."
21 (D) THE DEPARTMENT SHALL PROVIDE ADEQUATE INFORMATION
22 REGARDING THE CENTER AND ITS PURPOSES IN ITS INSTRUCTIONS FOR
23 TAX YEARS 1997, 1998, 1999 AND 2000 WHICH ACCOMPANY PENNSYLVANIA
24 INDIVIDUAL INCOME TAX RETURN FORMS TO INCLUDE THE ADDRESS OF KVM
25 TO WHICH CONTRIBUTIONS MAY BE SENT BY TAXPAYERS WHO WISH TO MAKE
26 ADDITIONAL CONTRIBUTIONS TO THE CENTER.
27 (E) THIS SUBSECTION SHALL APPLY SOLELY TO TAXABLE YEARS
28 1997, 1998, 1999 AND 2000.
29 SECTION 5. SECTION 1101-C OF THE ACT IS AMENDED BY ADDING
30 DEFINITIONS TO READ:
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1 SECTION 1101-C. DEFINITIONS.--THE FOLLOWING WORDS WHEN USED
2 IN THIS ARTICLE SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THIS
3 SECTION:
4 * * *
5 "LIVING TRUST." ANY TRUST, OTHER THAN A BUSINESS TRUST,
6 INTENDED AS A WILL SUBSTITUTE BY THE SETTLOR WHICH BECOMES
7 EFFECTIVE DURING THE LIFETIME OF THE SETTLOR, BUT FROM WHICH
8 TRUST DISTRIBUTIONS CANNOT BE MADE TO ANY BENEFICIARIES OTHER
9 THAN THE SETTLOR PRIOR TO THE DEATH OF THE SETTLOR.
10 * * *
11 "ORDINARY TRUST." ANY TRUST, OTHER THAN A BUSINESS TRUST OR
12 A LIVING TRUST, WHICH TAKES EFFECT DURING THE LIFETIME OF THE
13 SETTLOR AND FOR WHICH THE TRUSTEES OF THE TRUST TAKE TITLE TO
14 PROPERTY PRIMARILY FOR THE PURPOSE OF PROTECTING, MANAGING OR
15 CONSERVING IT UNTIL DISTRIBUTION TO THE NAMED BENEFICIARIES OF
16 THE TRUST. AN ORDINARY TRUST DOES NOT INCLUDE A TRUST THAT HAS
17 AN OBJECTIVE TO CARRY ON BUSINESS AND DIVIDE GAINS NOR DOES IT
18 EITHER EXPRESSLY OR IMPLIEDLY HAVE ANY OF THE FOLLOWING
19 FEATURES: THE TREATMENT OF BENEFICIARIES AS ASSOCIATES, THE
20 TREATMENT OF THE INTERESTS IN THE TRUST AS PERSONAL PROPERTY,
21 THE FREE TRANSFERABILITY OF BENEFICIAL INTERESTS IN THE TRUST,
22 CENTRALIZED MANAGEMENT BY THE TRUSTEE OR THE BENEFICIARIES, OR
23 CONTINUITY OF LIFE.
24 * * *
25 SECTION 6. SECTION 1102-C.3(8) AND (9) OF THE ACT, ADDED
26 JULY 2, 1986 (P.L.318, NO.77), ARE AMENDED AND THE SECTION IS
27 AMENDED BY ADDING CLAUSES TO READ:
28 SECTION 1102-C.3. EXCLUDED TRANSACTIONS.--THE TAX IMPOSED BY
29 SECTION 1102-C SHALL NOT BE IMPOSED UPON:
30 * * *
19970H0134B0269 - 29 -
1 (8) A TRANSFER FOR NO OR NOMINAL ACTUAL CONSIDERATION TO A
2 TRUSTEE OF AN ORDINARY TRUST WHERE THE TRANSFER OF THE SAME
3 PROPERTY WOULD BE EXEMPT IF THE TRANSFER WAS MADE DIRECTLY FROM
4 THE GRANTOR TO ALL OF THE POSSIBLE BENEFICIARIES THAT ARE
5 ENTITLED TO RECEIVE THE PROPERTY OR PROCEEDS FROM THE SALE OF
6 THE PROPERTY UNDER THE TRUST, WHETHER OR NOT SUCH BENEFICIARIES
7 ARE CONTINGENT OR SPECIFICALLY NAMED. A TRUST CLAUSE WHICH
8 IDENTIFIES THE CONTINGENT BENEFICIARIES BY REFERENCE TO THE
9 HEIRS OF THE TRUST SETTLOR AS DETERMINED BY THE LAWS OF THE
10 INTESTATE SUCCESSION SHALL NOT DISQUALIFY A TRANSFER FROM THE
11 EXCLUSION PROVIDED BY THIS CLAUSE. NO SUCH EXEMPTION SHALL BE
12 GRANTED UNLESS THE RECORDER OF DEEDS IS PRESENTED WITH A COPY OF
13 THE TRUST INSTRUMENT THAT CLEARLY IDENTIFIES THE GRANTOR AND ALL
14 POSSIBLE BENEFICIARIES.
15 (8.1) A TRANSFER FOR NO OR NOMINAL ACTUAL CONSIDERATION TO A
16 TRUSTEE OF A LIVING TRUST FROM THE SETTLOR OF THE LIVING TRUST.
17 NO SUCH EXEMPTION SHALL BE GRANTED UNLESS THE RECORDER OF DEED
18 IS PRESENTED WITH A COPY OF THE LIVING TRUST INSTRUMENT.
19 (9) A TRANSFER FOR NO OR NOMINAL ACTUAL CONSIDERATION FROM A
20 TRUSTEE [TO A BENEFICIARY OF AN ORDINARY TRUST.] OF AN ORDINARY
21 TRUST TO A SPECIFICALLY NAMED BENEFICIARY THAT IS ENTITLED TO
22 RECEIVE THE PROPERTY UNDER THE RECORDED TRUST INSTRUMENT OR TO A
23 CONTINGENT BENEFICIARY WHERE THE TRANSFER OF THE SAME PROPERTY
24 WOULD BE EXEMPT IF THE TRANSFER WAS MADE BY THE GRANTOR OF THE
25 PROPERTY INTO THE TRUST TO THAT BENEFICIARY. HOWEVER, ANY
26 TRANSFER OF REAL ESTATE FROM A LIVING TRUST DURING THE SETTLOR'S
27 LIFETIME SHALL BE CONSIDERED FOR THE PURPOSES OF THIS ARTICLE AS
28 IF SUCH TRANSFER WERE MADE DIRECTLY FROM THE SETTLOR TO THE
29 GRANTEE.
30 (9.1) A TRANSFER FOR NO OR NOMINAL ACTUAL CONSIDERATION FROM
19970H0134B0269 - 30 -
1 A TRUSTEE OF A LIVING TRUST AFTER THE DEATH OF THE SETTLOR OF
2 THE TRUST OR FROM A TRUSTEE OF A TRUST CREATED PURSUANT TO THE
3 WILL OF A DECEDENT TO A BENEFICIARY TO WHOM THE PROPERTY IS
4 DEVISED OR BEQUEATHED.
5 (9.2) A TRANSFER FOR NO OR NOMINAL ACTUAL CONSIDERATION FROM
6 THE TRUSTEE OF A LIVING TRUST TO THE SETTLOR OF THE LIVING TRUST
7 IF SUCH PROPERTY WAS ORIGINALLY CONVEYED TO THE TRUSTEE BY THE
8 SETTLOR.
9 * * *
10 SECTION 7. (A) THE FOLLOWING ACTS AND PARTS OF ACTS ARE
11 REPEALED:
12 SECTIONS 2506 AND 2507(A) OF THE ACT OF APRIL 9, 1929
13 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929.
14 SECTION 4 OF THE ACT OF JUNE 23, 1982 (P.L.597, NO.170),
15 KNOWN AS THE WILD RESOURCE CONSERVATION ACT.
16 20 PA.C.S. § 8618.
17 (B) SECTION 12 OF THE ACT OF JUNE 23, 1982 (P.L.597,
18 NO.170), KNOWN AS THE WILD RESOURCE CONSERVATION ACT, IS
19 REPEALED INSOFAR AS IT IS INCONSISTENT WITH THIS ACT.
20 SECTION 8. THIS ACT SHALL APPLY AS FOLLOWS:
21 (1) THE FOLLOWING PROVISIONS SHALL APPLY TO TAXABLE
22 YEARS BEGINNING ON OR AFTER JANUARY 1, 1997:
23 (I) THE AMENDMENT OF SECTION 301 INTRODUCTORY
24 PARAGRAPH AND (S.2) OF THE ACT.
25 (II) THE AMENDMENT OF SECTION 304(D)(1) OF THE ACT.
26 (III) THE ADDITION OF PART VI-A OF ARTICLE III OF
27 THE ACT.
28 (IV) SECTION 7 OF THIS ACT.
29 (2) THE AMENDMENT OF SECTION 201(C) AND (D) OF THE ACT
30 SHALL APPLY ON AND AFTER JULY 1, 1997.
19970H0134B0269 - 31 -
1 (3) THE AMENDMENT OF SECTIONS 1101-C AND 1102-C.3 OF THE
2 ACT SHALL APPLY TO ANY DOCUMENT MADE, EXECUTED, DELIVERED,
3 ACCEPTED OR PRESENTED FOR RECORDING AFTER THE EFFECTIVE DATE
4 OF THIS ACT.
5 SECTION 9. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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