PRINTER'S NO. 303
No. 273 Session of 1997
INTRODUCED BY SAYLOR, BROWNE, SEMMEL, HERSHEY, GODSHALL, RUBLEY,
LYNCH, HENNESSEY, TRELLO, VAN HORNE, TANGRETTI, DEMPSEY,
McCALL, PRESTON, SCHRODER, E. Z. TAYLOR, MILLER AND
L. I. COHEN, FEBRUARY 5, 1997
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 5, 1997
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 providing for exclusions for sales tax
11 relating to food and beverages.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 204(29) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 August 4, 1991 (P.L.97, No.22) and December 13, 1991 (P.L.373,
17 No.40), is amended to read:
18 Section 204. Exclusions from Tax.--The tax imposed by
19 section 202 shall not be imposed upon
20 * * *
21 (29) The sale at retail or use of food and beverages for
1 human consumption, including candy and gum, except that this
2 exclusion shall not apply with respect to--
3 (i) Soft drinks;
4 (ii) Malt and brewed beverages and spirituous and vinous
5 liquors;
6 (iii) Food or beverages, whether sold for consumption on or
7 off the premises or on a "take-out" or "to go" basis or
8 delivered to the purchaser or consumer, when purchased (A) from
9 persons engaged in the business of catering; or (B) from persons
10 engaged in the business of operating establishments from which
11 ready-to-eat food and beverages are sold, including, but not
12 limited to, restaurants, cafes, lunch counters, private and
13 social clubs, taverns, dining cars, hotels, night clubs, fast
14 food operations, pizzerias, fairs, carnivals, lunch carts, ice
15 cream stands, snack bars, cafeterias, employe cafeterias,
16 theaters, stadiums, arenas, amusement parks, carryout shops,
17 coffee shops and other establishments whether mobile or
18 immobile. For purposes of this clause, a bakery, a pastry shop,
19 a donut shop, a delicatessen, grocery store, supermarket,
20 farmer's market [or], a convenience store or vending machine
21 shall not be considered an establishment from which food or
22 beverages ready to eat are sold except for the sale of meals,
23 sandwiches, food from salad bars, hand-dipped or hand-served
24 iced based products including ice cream and yogurt, hot soup,
25 hot pizza and other hot food items, brewed coffee and hot
26 beverages. For purposes of this subclause, beverages shall not
27 include malt and brewed beverages and spirituous and vinous
28 liquors but shall include soft drinks. The sale at retail of
29 food and beverages at or from a school or church in the ordinary
30 course of the activities of such organization is not subject to
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1 tax.
2 * * *
3 Section 2. This act shall take effect July 1, 1997.
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