PRINTER'S NO. 1622
No. 1313 Session of 2003
INTRODUCED BY VEON AND DeWEESE, MAY 5, 2003
REFERRED TO COMMITTEE ON FINANCE, MAY 5, 2003
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," requiring tax clearance for renewals of licenses,
11 permits and registrations; and providing a penalty.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
15 the Tax Reform Code of 1971, is amended by adding a section to
16 read:
17 Section 3003.15. Tax Clearance for Renewals of Licenses,
18 Permits and Registrations.--(a) An applicant for the grant,
19 renewal or transfer of any license shall provide to the
20 licensing agency, upon forms approved by the department, the
21 following:
22 (1) the applicant's State personal income tax identification
1 number;
2 (2) the applicant's State sales tax number;
3 (3) the applicant's State corporation tax number;
4 (4) the applicant's State employer withholding tax number;
5 (5) the applicant's unemployment compensation account
6 number; and
7 (6) a statement that:
8 (i) all State tax reports have been filed and all State
9 taxes paid;
10 (ii) all State taxes are subject to a timely administrative
11 or judicial appeal; or
12 (iii) all State taxes are subject to a duly approved
13 deferred payment plan.
14 (b) Upon the filing of an application with a licensing
15 agency for the grant, renewal or transfer of any license, the
16 applicant waives any confidentiality with respect to State tax
17 information regarding the applicant in the possession of the
18 department, the Office of Attorney General or the Department of
19 Labor and Industry, regardless of the source of that information
20 and consents to the provision of that information to the
21 licensing agency by the department, the Office of Attorney
22 General or the Department of Labor and Industry.
23 (c) Upon receipt of any application for the grant, renewal
24 or transfer of any license, the licensing agency shall review
25 the State tax status of the applicant. The licensing agency
26 shall request and receive State tax information regarding the
27 applicant from the department, the Office of Attorney General or
28 the Department of Labor and Industry. The licensing agency, the
29 department, the Office of Attorney General and the Department of
30 Labor and Industry may use reasonable parameters in determining
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1 whether an applicant has filed required State tax reports or
2 paid State tax due.
3 (d) The licensing agency shall not approve any application
4 for the grant, renewal or transfer of any license when the
5 applicant has failed to:
6 (1) provide any of the information required by subsection
7 (a);
8 (2) file required State tax reports; or
9 (3) pay any State taxes not subject to a timely
10 administrative or judicial appeal or subject to a duly
11 authorized deferred payment plan.
12 (e) Upon the required submission of the annual licensing fee
13 or upon renewal, issuance or transfer of any license, if the
14 department, the Office of Attorney General or the Department of
15 Labor and Industry notifies the licensing agency of
16 noncompliance with the provisions of this section, the licensing
17 agency shall not renew, issue, transfer or validate the license.
18 Any appeal filed from the licensing agency's action shall not
19 act as a supersedeas. A person practicing a trade, profession or
20 occupation or conducting a business activity without a license
21 as a result of this subsection shall be guilty of a misdemeanor
22 of the first degree and shall be subject to a minimum fine of
23 one thousand dollars ($1,000). The penalty imposed under this
24 subsection shall be in addition to any other penalty imposed by
25 law.
26 (f) If during the effective period of any license, the
27 licensee fails to file any required State tax report, fails to
28 pay any collectible State tax due or defaults in a deferred
29 payment plan, the department, the Office of Attorney General or
30 the Department of Labor and Industry may notify the licensing
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1 agency which shall revoke any license issued to the licensee.
2 The license revocation shall remain in effect until the licensee
3 files the required reports, pays the State tax due or cures the
4 deferred payment plan default.
5 (g) The provisions of this section shall also be applicable
6 to any management company utilized by the applicant.
7 (h) For the purpose of this section, the following words and
8 phrases shall have the meanings given to them in this subsection
9 unless the context clearly indicates otherwise:
10 "Applicant." A person that applies to a licensing agency for
11 a license or applies for renewal or in the case of the transfer
12 of an existing license, the transferor or the transferee.
13 "Department." The Department of Revenue of the Commonwealth.
14 "License." A license, permit or registration granted or
15 issued by a licensing agency that confers benefits, privileges
16 or rights to the licensee, permit holder or registrant to
17 practice a trade, profession or occupation or to conduct a
18 business activity within this Commonwealth.
19 "Licensing agency." The Department of Revenue, the
20 Department of Labor and Industry, the Department of
21 Environmental Protection, the Department of Banking, the
22 Department of State, the Insurance Department or the
23 Pennsylvania Securities Commission.
24 "State tax." A tax liability, including interest, penalty
25 and additions of a taxpayer, licensee, employer or other person
26 imposed under this act, the act of December 5, 1936 (2nd
27 Sp.Sess., 1937 P.L.2897, No.1), known as the "Unemployment
28 Compensation Law," or 75 Pa.C.S. § 9014 (relating to collection
29 of unpaid taxes).
30 Section 2. This act shall take effect in 60 days.
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