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| PRIOR PRINTER'S NO. 357 | PRINTER'S NO. 3455 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY MILLER, BAKER, BOYD, CALTAGIRONE, CARROLL, CAUSER, CREIGHTON, FABRIZIO, GEORGE, GIBBONS, GINGRICH, GOODMAN, GROVE, GRUCELA, HENNESSEY, HESS, KILLION, KOTIK, MILLARD, MOUL, O'NEILL, PICKETT, RAPP, REICHLEY, ROCK, K. SMITH, STABACK, STEVENSON, SWANGER, WATSON, SIPTROTH, MURT, EVERETT, FARRY, MARSHALL, SONNEY, SOLOBAY, BROOKS, GABLER, CASORIO, BELFANTI, QUINN, M. SMITH AND LENTZ, FEBRUARY 10, 2009 |
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| AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, MARCH 24, 2010 |
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| AN ACT |
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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 from sales tax |
11 | and for exemption certificates. |
12 | The General Assembly of the Commonwealth of Pennsylvania |
13 | hereby enacts as follows: |
14 | Section 1. Section 204(10) of the act of March 4, 1971 (P.L. |
15 | 6, No.2), known as the Tax Reform Code of 1971, amended April |
16 | 23, 1998 (P.L.239, No.45), is amended to read: |
17 | Section 204. Exclusions from Tax.--The tax imposed by |
18 | section 202 shall not be imposed upon any of the following: |
19 | * * * |
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1 | (10) The sale at retail to or use by (i) any charitable |
2 | organization, volunteer firemen's organization, volunteer |
3 | firefighters' relief association as defined in section 2 of the |
4 | act of June 11, 1968 (P.L.149, No.84), known as the "Volunteer |
5 | Firefighters' Relief Association Act," or nonprofit educational |
6 | institution, or (ii) a religious organization for religious |
7 | purposes of tangible personal property or services other than |
8 | pursuant to a construction contract: Provided, however, That the |
9 | exclusion of this clause shall not apply with respect to any |
10 | tangible personal property or services used in any unrelated |
11 | trade or business carried on by such organization or institution |
12 | or with respect to any materials, supplies and equipment used |
13 | and transferred to such organization or institution in the |
14 | construction, reconstruction, remodeling, renovation, repairs |
15 | and maintenance of any real estate structure, other than |
16 | building machinery and equipment, except materials and supplies |
17 | when purchased by such organizations or institutions for routine |
18 | maintenance and repairs. |
19 | * * * |
20 | Section 2. Section 237(c) of the act, amended July 1, 1985 |
21 | (P.L.78, No.29), is amended and the section is amended by adding | <-- |
22 | a subsection to read: |
23 | Section 237. Collection of Tax.--* * * |
24 | (c) Exemption Certificates. If the tax does not apply to the |
25 | sale or lease of tangible personal property or services, the |
26 | purchaser or lessee shall furnish to the vendor a certificate |
27 | indicating that the sale is not legally subject to the tax. The |
28 | certificate shall be in substantially such form as the |
29 | department may, by regulation, prescribe. Where the tangible |
30 | personal property or service is of a type which is never subject |
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1 | to the tax imposed or where the sale or lease is in interstate |
2 | commerce, such certificate need not be furnished. Where a series |
3 | of transactions are not subject to tax, a purchaser or user may |
4 | furnish the vendor with a single exemption certificate in |
5 | substantially such form and valid for such period of time as the |
6 | department may, by regulation, prescribe[.], provided that an |
7 | exemption certificate furnished to a volunteer firefighters' |
8 | relief association or volunteer firemen's organization shall be |
9 | considered permanent. The department shall provide all school |
10 | districts and intermediate units with a permanent tax exemption |
11 | number. An exemption certificate, which is complete and regular |
12 | and on its face discloses a valid basis of exemption if taken in |
13 | good faith, shall relieve the vendor from the liability imposed |
14 | by this section. An exemption certificate accepted by a vendor |
15 | from a natural person domiciled within this Commonwealth or any |
16 | association, fiduciary, partnership, corporation or other |
17 | entity, either authorized to do business within this |
18 | Commonwealth or having an established place of business within |
19 | this Commonwealth, in the ordinary course of the vendor's |
20 | business, which on its face discloses a valid basis of exemption |
21 | consistent with the activity of the purchaser and character of |
22 | the property or service being purchased or which is provided to |
23 | the vendor by a charitable, religious, educational, volunteer |
24 | firefighters' relief association or volunteer firemen's |
25 | organization and contains the organization's charitable |
26 | exemption number and which, in the case of any purchase costing |
27 | two hundred dollars ($200) or more, is accompanied by a sworn |
28 | declaration on a form to be provided by the department of an |
29 | intended usage of the property or service which would render it |
30 | nontaxable, shall be presumed to be taken in good faith and the |
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1 | burden of proving otherwise shall be on the Department of |
2 | Revenue. |
3 | (c.1) Surrender of Exemption Certificate.--If a volunteer | <-- |
4 | firefighters' relief association or volunteer firemEn's |
5 | organization that has been furnished an exemption certificate |
6 | dissolves, the association or organization shall have sixty days |
7 | to surrender the exemption certificate to the department. |
8 | * * * |
9 | Section 3. This act shall take effect in 60 days. |
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