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| PRIOR PRINTER'S NOS. 357, 3455, | PRINTER'S NO. 3781 |
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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 RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, AS AMENDED, HOUSE OF REPRESENTATIVES, MAY 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, for incidence and rate of | <-- |
12 | tax, for floor tax and for commissions on sales; providing |
13 | for the taxation of tobacco products; imposing a tax on the |
14 | extraction of natural gas; providing for natural gas |
15 | severance registration certificate, for duties of the |
16 | Department of Revenue, for tax assessments and tax liens; |
17 | imposing penalties; providing for service of process, for |
18 | rulemaking, for cooperation with other governments and for |
19 | bonds; and making an appropriation. |
20 | The General Assembly of the Commonwealth of Pennsylvania |
21 | hereby enacts as follows: |
22 | Section 1. Section 204(10) of the act of March 4, 1971 (P.L. |
23 | 6, No.2), known as the Tax Reform Code of 1971, amended April |
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1 | 23, 1998 (P.L.239, No.45), is amended to read: |
2 | Section 204. Exclusions from Tax.--The tax imposed by |
3 | section 202 shall not be imposed upon any of the following: |
4 | * * * |
5 | (10) The sale at retail to or use by (i) any charitable |
6 | organization, volunteer firemen's organization, volunteer |
7 | firefighters' relief association as defined in section 2 of the |
8 | act of June 11, 1968 (P.L.149, No.84), known as the "Volunteer |
9 | Firefighters' Relief Association Act," or nonprofit educational |
10 | institution, or (ii) a religious organization for religious |
11 | purposes of tangible personal property or services other than |
12 | pursuant to a construction contract: Provided, however, That the |
13 | exclusion of this clause shall not apply with respect to any |
14 | tangible personal property or services used in any unrelated |
15 | trade or business carried on by such organization or institution |
16 | or with respect to any materials, supplies and equipment used |
17 | and transferred to such organization or institution in the |
18 | construction, reconstruction, remodeling, renovation, repairs |
19 | and maintenance of any real estate structure, other than |
20 | building machinery and equipment, except materials and supplies |
21 | when purchased by such organizations or institutions for routine |
22 | maintenance and repairs. |
23 | * * * |
24 | Section 2. Section 237(c) of the act, amended July 1, 1985 |
25 | (P.L.78, No.29), is amended and the section is amended by adding |
26 | a subsection to read: |
27 | Section 237. Collection of Tax.--* * * |
28 | (c) Exemption Certificates. If the tax does not apply to the |
29 | sale or lease of tangible personal property or services, the |
30 | purchaser or lessee shall furnish to the vendor a certificate |
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1 | indicating that the sale is not legally subject to the tax. The |
2 | certificate shall be in substantially such form as the |
3 | department may, by regulation, prescribe. Where the tangible |
4 | personal property or service is of a type which is never subject |
5 | to the tax imposed or where the sale or lease is in interstate |
6 | commerce, such certificate need not be furnished. Where a series |
7 | of transactions are not subject to tax, a purchaser or user may |
8 | furnish the vendor with a single exemption certificate in |
9 | substantially such form and valid for such period of time as the |
10 | department may, by regulation, prescribe[.], provided that an |
11 | exemption certificate furnished to a volunteer firefighters' |
12 | relief association or volunteer firemen's organization shall be |
13 | considered permanent. The department shall provide all school |
14 | districts and intermediate units with a permanent tax exemption |
15 | number. An exemption certificate, which is complete and regular |
16 | and on its face discloses a valid basis of exemption if taken in |
17 | good faith, shall relieve the vendor from the liability imposed |
18 | by this section. An exemption certificate accepted by a vendor |
19 | from a natural person domiciled within this Commonwealth or any |
20 | association, fiduciary, partnership, corporation or other |
21 | entity, either authorized to do business within this |
22 | Commonwealth or having an established place of business within |
23 | this Commonwealth, in the ordinary course of the vendor's |
24 | business, which on its face discloses a valid basis of exemption |
25 | consistent with the activity of the purchaser and character of |
26 | the property or service being purchased or which is provided to |
27 | the vendor by a charitable, religious, educational, volunteer |
28 | firefighters' relief association or volunteer firemen's |
29 | organization and contains the organization's charitable |
30 | exemption number and which, in the case of any purchase costing |
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1 | two hundred dollars ($200) or more, is accompanied by a sworn |
2 | declaration on a form to be provided by the department of an |
3 | intended usage of the property or service which would render it |
4 | nontaxable, shall be presumed to be taken in good faith and the |
5 | burden of proving otherwise shall be on the Department of |
6 | Revenue. |
7 | (c.1) Surrender of Exemption Certificate.--If a volunteer |
8 | firefighters' relief association or volunteer firemen's |
9 | organization that has been furnished an exemption certificate |
10 | dissolves, the association or organization shall have sixty days |
11 | to surrender the exemption certificate to the department. |
12 | * * * |
13 | Section 3. This act shall take effect in 60 days. | <-- |
14 | Section 2.1. Sections 1206, 1206.1 and 1216 of the act, | <-- |
15 | amended October 9, 2009 (P.L.451, No.48), are amended to read: |
16 | Section 1206. Incidence and Rate of Tax.--An excise tax is |
17 | hereby imposed and assessed upon the sale or possession of |
18 | cigarettes within this Commonwealth at the rate of [eight] nine |
19 | and one-half cents per cigarette. |
20 | Section 1206.1. Floor Tax.--(a) The following apply: |
21 | (1) A person who possesses cigarettes on which the tax |
22 | imposed by section 1206 has been paid as of the effective date |
23 | of this section shall pay an additional tax at a rate of one and |
24 | [twenty-five hundredths] one-half cents per cigarette. The tax |
25 | shall be paid and reported on a form prescribed by the |
26 | department within ninety days of the effective date of this |
27 | section. |
28 | (2) On or after the effective date of this paragraph, a |
29 | person that possesses little cigars in a package which is |
30 | similar to a package of cigarettes other than little cigars and |
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1 | which contains twenty to twenty-five little cigars shall pay a |
2 | tax at the rate of [eight] nine and one-half cents per little |
3 | cigar. The tax shall be paid and reported on a form prescribed |
4 | by the department within ninety days of the effective date of |
5 | this paragraph. |
6 | (3) After January 3, 2010, a retailer that possesses little |
7 | cigars on which the tax imposed by this article has not been |
8 | paid shall pay a tax at the rate of [eight] nine and one-half |
9 | cents per little cigar. The tax shall be paid and reported on a |
10 | form prescribed by the department within ninety days of the |
11 | effective date of this paragraph. |
12 | (b) If a cigarette dealer fails to file the report required |
13 | by subsection (a) or fails to pay the tax imposed by subsection |
14 | (a), the department may, in addition to the interest and |
15 | penalties provided in section 1278, do any of the following: |
16 | (1) Impose an administrative penalty equal to the amount of |
17 | tax evaded or not paid. The penalty shall be added to the tax |
18 | evaded or not paid and assessed and collected at the same time |
19 | and in the same manner as the tax. |
20 | (2) Suspend or revoke a cigarette dealer's license. |
21 | (c) In addition to any penalty imposed under subsection (b), |
22 | a person who wilfully omits, neglects or refuses to comply with |
23 | a duty imposed under subsection (a) commits a misdemeanor and |
24 | shall, upon conviction, be sentenced to pay a fine of not less |
25 | than two thousand five hundred dollars ($2,500) nor more than |
26 | five thousand dollars ($5,000), to serve a term of imprisonment |
27 | not to exceed thirty days or both. |
28 | Section 1216. Commissions on Sales.--A cigarette stamping |
29 | agent shall be entitled to a commission for the agent's services |
30 | and expenses in affixing cigarette tax stamps. The commission |
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1 | shall be equal to [eighty-seven] seventy-three hundredths per |
2 | cent of the total value of Pennsylvania cigarette tax stamps |
3 | purchased by the agent from the department or its authorized |
4 | agents to be used in the stamping of unstamped cigarettes for |
5 | sale within this Commonwealth. The cigarette stamping agent may |
6 | deduct from the moneys to be paid to the department or its |
7 | authorized agents for the stamps an amount equal to [eighty- |
8 | seven] seventy-three hundredths per cent of the value of the |
9 | stamps purchased. This section shall not apply to purchases of |
10 | stamps by a cigarette stamping agent in an amount less than one |
11 | hundred dollars ($100). |
12 | Section 2.2. The act is amended by adding articles to read: |
13 | ARTICLE XII-A |
14 | TOBACCO PRODUCTS TAX |
15 | Section 1201-A. Definitions. |
16 | The following words and phrases when used in this article |
17 | shall have the meanings given to them in this section unless the |
18 | context clearly indicates otherwise: |
19 | "Cigar." Any roll of tobacco wrapped in tobacco, not |
20 | including little cigars. |
21 | "Cigarette." Includes any roll for smoking made wholly or in |
22 | part of tobacco, irrespective of size or shape, and whether or |
23 | not such tobacco is flavored, adulterated or mixed with any |
24 | other ingredient, the wrapper or cover of which is made of paper |
25 | or any other substance or material, excepting tobacco, and shall |
26 | not include cigars or roll your own tobacco. The term shall |
27 | include little cigars. |
28 | "Consumer." An individual who purchases tobacco products for |
29 | personal use and not for resale. |
30 | "Contraband." Any tobacco product for which the tax imposed |
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1 | by this article has not been paid. |
2 | "Dealer." A wholesaler or retailer. Nothing in this article |
3 | shall preclude any person from being a wholesaler or retailer, |
4 | provided the person meets the requirements for a license in each |
5 | category of dealer. |
6 | "Department." The Department of Revenue of the Commonwealth. |
7 | "Little cigar." Any roll for smoking that weighs not more |
8 | than four pounds per thousand, where the wrapper or cover is |
9 | made of natural leaf tobacco or any substance containing |
10 | tobacco. |
11 | "Manufacturer." A person that produces tobacco products. |
12 | "Person." An individual, unincorporated association, |
13 | company, corporation, joint stock company, group, agency, |
14 | syndicate, trust or trustee, receiver, fiduciary, partnership, |
15 | conservator, any political subdivision of the Commonwealth or |
16 | any other state. Whenever used in any of the provisions of this |
17 | article prescribing or imposing penalties, the word "person" as |
18 | applied to a partnership, unincorporated association or other |
19 | joint venture, means the partners or members thereof, and as |
20 | applied to a corporation, means all the officers and directors |
21 | thereof. |
22 | "Purchase price." The total value of anything paid or |
23 | delivered, or promised to be paid or delivered, whether it be |
24 | money or otherwise, in complete performance of a sale or |
25 | purchase, without any deduction on account of the cost or value |
26 | of the property sold, cost or value of transportation, cost or |
27 | value of labor or service, interest or discount paid or allowed |
28 | after the sale is consummated, any other taxes imposed by the |
29 | Commonwealth or any other expense. |
30 | "Retailer." A person that purchases or receives tobacco |
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1 | products from any source for the purpose of sale to a consumer, |
2 | or who owns, leases or otherwise operates one or more vending |
3 | machines for the purpose of sale of tobacco products to the |
4 | ultimate consumer. The term includes a vending machine operator |
5 | or a person that buys, sells, transfers or deals in tobacco |
6 | products and is not licensed as a tobacco products wholesaler |
7 | under this article. |
8 | "Roll-your-own tobacco." Any tobacco which, because of its |
9 | appearance, type, packaging or labeling, is suitable for use and |
10 | is likely to be offered to, or purchased by, consumers as |
11 | tobacco for making cigarettes. For purposes of reporting sales |
12 | of this product under the act of June 22, 2000 (P.L.394, No.54), |
13 | known as the Tobacco Settlement Agreement Act, 0.09 ounces of |
14 | tobacco shall constitute one individual unit sold. |
15 | "Sale." Any transfer of ownership, custody or possession of |
16 | tobacco products for consideration; any exchange, barter or |
17 | gift; or any offer to sell or transfer the ownership, custody or |
18 | possession of tobacco products for consideration. |
19 | "Taxpayer." Any person subject to tax under this article. |
20 | "Tobacco products." Granulated, plug cut, crimp cut, ready |
21 | rubbed and other smoking tobacco, roll-your-own tobacco, snuff, |
22 | dry snuff, snuff flour, cavendish, plug and twist tobacco, fine- |
23 | cut and other chewing tobaccos, shorts, refuse scraps, |
24 | clippings, cuttings and sweepings of tobacco and other kinds and |
25 | forms of tobacco, prepared in such manner as to be suitable for |
26 | chewing or ingesting or for smoking in a pipe or otherwise, or |
27 | both for chewing and smoking. The term does not include |
28 | cigarettes or cigars. |
29 | "Unclassified importer." A person in this Commonwealth that |
30 | acquires a tobacco product from any source on which the tax |
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1 | imposed by this article was not paid and that is not a person |
2 | otherwise required to be licensed under the provisions of this |
3 | article. The term includes, but is not limited to, consumers who |
4 | purchase tobacco products using the Internet or mail order |
5 | catalogs for personal possession or use in this Commonwealth. |
6 | "Vending machine operator." A person who places or services |
7 | one or more tobacco product vending machines whether owned, |
8 | leased or otherwise operated by the person at locations from |
9 | which tobacco products are sold to the consumer. The owner or |
10 | tenant of the premises upon which a vending machine is placed |
11 | shall not be considered a vending machine operator if the |
12 | owner's or tenant's sole remuneration therefrom is a flat rental |
13 | fee or commission based upon the number or value of tobacco |
14 | products sold from the machine, unless the owner or tenant |
15 | actually owns the vending machine or leases the vending machine |
16 | under an agreement whereby any profits from the sale of the |
17 | tobacco products directly inure to the owner's or tenant's |
18 | benefit. |
19 | "Wholesaler." A person engaged in the business of selling |
20 | tobacco products that receives, stores, sells, exchanges or |
21 | distributes tobacco products to retailers or other wholesalers |
22 | in this Commonwealth or retailers who purchase from a |
23 | manufacturer or from another wholesaler who has not paid the tax |
24 | imposed by this article. |
25 | Section 1202-A. Incidence and rate of tax. |
26 | (a) Imposition.--A tobacco products tax is hereby imposed on |
27 | the dealer, manufacturer or any person at the time the tobacco |
28 | product is first sold to a retailer in this Commonwealth at the |
29 | rate of 30% on the purchase price charged to the retailer for |
30 | the purchase of any tobacco product. The tax shall be collected |
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1 | from the retailer by whomever sells the tobacco product to the |
2 | retailer and remitted to the department. Any person required to |
3 | collect this tax shall separately state the amount of tax on an |
4 | invoice or other sales document. |
5 | (b) Retailer.--If the tax is not collected by the seller |
6 | from the retailer, the tax is imposed on the retailer at the |
7 | time of purchase at the same rate as in subsection (a) based on |
8 | the retailer's purchase price of the tobacco products. The |
9 | retailer shall remit the tax to the department. |
10 | (c) Unclassified importer.--The tax is imposed on an |
11 | unclassified importer at the time of purchase at the same rate |
12 | as in subsection (a) based on the unclassified importer's |
13 | purchase price of the tobacco products. The unclassified |
14 | importer shall remit the tax to the department. |
15 | (d) Exceptions.--The tax shall not be imposed on any tobacco |
16 | products that: |
17 | (1) are exported for sale outside this Commonwealth; or |
18 | (2) are not subject to taxation by the Commonwealth |
19 | pursuant to any laws of the United States. |
20 | (e) Article II.--Unless otherwise specifically noted, the |
21 | provisions of Article II shall apply to the returns, payment, |
22 | penalties, enforcement, collections and appeals of the tax |
23 | imposed on other tobacco products. |
24 | Section 1203-A. Floor tax. |
25 | (a) Payment.--Any retailer that, as of the effective date of |
26 | this article, possesses tobacco products subject to the tax |
27 | imposed by section 1202-A, shall pay the tax on the tobacco |
28 | products in accordance with the rates specified in section 1202- |
29 | A. The tax shall be paid and reported on a form prescribed by |
30 | the department within 90 days of the effective date of this |
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1 | section. |
2 | (b) Administrative penalty; license.--If a retailer fails to |
3 | file the report required by subsection (a) or fails to pay the |
4 | tax imposed by subsection (a), the department may, in addition |
5 | to the interest and penalties provided in section 1215-A, do any |
6 | of the following: |
7 | (1) Impose an administrative penalty equal to the amount |
8 | of tax evaded or not paid. The penalty shall be added to the |
9 | tax evaded or not paid and assessed and collected at the same |
10 | time and in the same manner as the tax. |
11 | (2) Suspend, revoke or refuse to issue the retailer's |
12 | license. |
13 | (c) Criminal penalty.--In addition to any penalty imposed |
14 | under subsection (b), a person that willfully omits, neglects or |
15 | refuses to comply with a duty imposed under subsection (a) |
16 | commits a misdemeanor and shall, if convicted, be sentenced to |
17 | pay a fine of not less than $2,500 nor more than $5,000, to |
18 | serve a term of imprisonment not to exceed 30 days, or both. |
19 | Section 1204-A. Remittance of tax to department. |
20 | Wholesalers, retailers, unclassified importers and |
21 | manufacturers shall file monthly reports on a form prescribed by |
22 | the department by the 20th day of the month following the sale |
23 | or purchase of tobacco products from any other source on which |
24 | the tax levied by this article has not been paid. The tax is due |
25 | at the time the report is due. The department may required the |
26 | filing of reports and payment of tax on a less frequent basis at |
27 | its discretion. |
28 | Section 1205-A. (Reserved). |
29 | Section 1206-A. Procedures for claiming refund. |
30 | A claim for a refund of tax imposed by this article under |
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1 | section 3003.1 and Article XXVII shall be in the form and |
2 | contain the information prescribed by the department by |
3 | regulation. |
4 | Section 1207-A. Sales or possession of tobacco product when tax |
5 | not paid. |
6 | (a) Sales or possession.--Any person who sells or possesses |
7 | any tobacco product for which the proper tax has not been paid |
8 | commits a summary offense and shall, upon conviction, be |
9 | sentenced to pay costs of prosecution and a fine of not less |
10 | than $100 not more than $1,000 or to imprisonment for not more |
11 | than 60 days, or both, at the discretion of the court. Any |
12 | tobacco products purchased from a wholesaler properly licensed |
13 | under this article shall be presumed to have the proper taxes |
14 | paid. |
15 | (b) Tax evasion.--Any person that shall falsely or |
16 | fraudulently, maliciously, intentionally or willfully with |
17 | intent to evade the payment of the tax imposed by this article |
18 | sells or possesses any tobacco product for which the proper tax |
19 | has not been paid commits a felony and shall, upon conviction, |
20 | be sentenced to pay costs of prosecution and a fine of not more |
21 | than $15,000 or to imprisonment for not more than five years, or |
22 | both, at the discretion of the court. |
23 | Section 1208-A. Assessment. |
24 | The department is authorized to make the inquiries, |
25 | determinations and assessments of the tax, including interest, |
26 | additions and penalties, imposed by this article. |
27 | Section 1209-A. (Reserved). |
28 | Section 1210-A. (Reserved). |
29 | Section 1211-A. Failure to file return. |
30 | Where no return is filed, the amount of the tax due may be |
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1 | assessed and collected at any time as to taxable transactions |
2 | not reported. |
3 | Section 1212-A. False or fraudulent return. |
4 | Where the taxpayer willfully files a false or fraudulent |
5 | return with intent to evade the tax imposed by this article, the |
6 | amount of tax due may be assessed and collected at any time. |
7 | Section 1213-A. Extension of limitation period. |
8 | Notwithstanding any other provision of this article, where, |
9 | before the expiration of the period prescribed for the |
10 | assessment of a tax, a taxpayer has consented, in writing, that |
11 | the period be extended, the amount of tax due may be assessed at |
12 | any time within the extended period. The period so extended may |
13 | be extended further by subsequent consents, in writing, made |
14 | before the expiration of the extended period. |
15 | Section 1214-A. Failure to furnish information, returning false |
16 | information or failure to permit inspection. |
17 | (a) Penalty.--Any taxpayer who fails to keep or make any |
18 | record, return, report, inventory or statement, or keeps or |
19 | makes any false or fraudulent record, return, report, inventory |
20 | or statement required by this article commits a misdemeanor and |
21 | shall, upon conviction, be sentenced to pay costs of prosecution |
22 | and a fine of $500 and to imprisonment for not more than one |
23 | year, or both, at the discretion of the court. |
24 | (b) Examination.--The department is authorized to examine |
25 | the books and records, the stock of tobacco products and the |
26 | premises and equipment of any taxpayer in order to verify the |
27 | accuracy of the payment of the tax imposed by this article. The |
28 | person subject to an examination shall give to the department or |
29 | its duly authorized representative, the means, facilities and |
30 | opportunity for the examination. Willful refusal to cooperate |
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1 | with or permit an examination to the satisfaction of the |
2 | department shall be sufficient grounds for the suspension or |
3 | revocation of a taxpayer's license. In addition, a person who |
4 | willfully refuses to cooperate with or permit an examination to |
5 | the satisfaction of the department commits a misdemeanor and |
6 | shall, upon conviction, be sentenced to pay costs of prosecution |
7 | and a fine of $500 or to imprisonment for not more than one |
8 | year, or both, at the discretion of the court. |
9 | (c) Records; dealer or manufacturer.--A dealer or |
10 | manufacturer shall keep and maintain for a period of four years |
11 | records in the form prescribed by the department. The records |
12 | shall be maintained at the location for which the license is |
13 | issued. |
14 | (d) Reports.--A dealer or manufacturer shall file reports at |
15 | times and in the form prescribed by the department. |
16 | (e) Records; manufacturer or wholesaler.--A manufacturer or |
17 | wholesaler located or doing business in this Commonwealth who |
18 | sells tobacco products to a wholesale license holder in this |
19 | Commonwealth shall keep records showing: |
20 | (1) The number and kind of tobacco products sold. |
21 | (2) The date the tobacco products were sold. |
22 | (3) The name and license number of the dealer the |
23 | tobacco products were sold to. |
24 | (4) The total weight of each of the tobacco products |
25 | sold to the license holder. |
26 | (5) The place where the tobacco products were shipped. |
27 | (6) The name of the common carrier. |
28 | (f) Manufacturer or wholesaler.--A manufacturer or |
29 | wholesaler shall file with the department, on or before the 20th |
30 | of each month, a report showing the information listed in |
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1 | subsection (e) for the previous month. |
2 | Section 1215-A. Other violations; peace officers; fines. |
3 | Sections 1278, 1279, 1280 and 1291 are incorporated by |
4 | reference into and shall apply to the tax imposed by this |
5 | article. |
6 | Section 1216-A. (Reserved). |
7 | Section 1217-A. (Reserved). |
8 | Section 1218-A. (Reserved). |
9 | Section 1219-A. Records of shipments and receipts of tobacco |
10 | products required. |
11 | The department may, in its discretion, require reports from |
12 | any common or contract carrier who transports tobacco products |
13 | to any point or points within this Commonwealth, and from any |
14 | bonded warehouseman or bailee who has in the possession of the |
15 | warehouseman or bailee any tobacco products. The reports shall |
16 | contain the information concerning shipments of tobacco products |
17 | that the department determines to be necessary for the |
18 | administration of this article. All common and contract |
19 | carriers, bailees and warehousemen shall permit the examination |
20 | by the department or its authorized agents of any records |
21 | relating to the shipment or receipt of tobacco products. |
22 | Section 1220-A. Licensing of dealers and manufacturers. |
23 | (a) Prohibition.--No person, unless all sales of tobacco |
24 | products are exempt from Pennsylvania tobacco products tax, |
25 | shall sell, transfer or deliver any tobacco products in this |
26 | Commonwealth without first obtaining the proper license provided |
27 | for in this article. |
28 | (b) Application.--An applicant for a dealer's or |
29 | manufacturer's license shall complete and file an application |
30 | with the department. The application shall be in the form and |
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1 | contain information prescribed by the department and shall set |
2 | forth truthfully and accurately the information desired by the |
3 | department. If the application is approved, the department shall |
4 | license the dealer or manufacturer for a period of one year and |
5 | the license may be renewed annually thereafter. |
6 | Section 1221-A. Licensing of manufacturers. |
7 | Any manufacturer doing business within this Commonwealth |
8 | shall first obtain a license to sell tobacco products by |
9 | submitting an application to the department containing the |
10 | information requested by the department and designating a |
11 | process agent. If a manufacturer designates no process agent, |
12 | the manufacturer shall be deemed to have made the Secretary of |
13 | State its agent for the service of process in this Commonwealth. |
14 | Section 1222-A. Licensing of wholesalers. |
15 | (a) Requirements.--Applicants for a wholesale license or |
16 | renewal of that license shall meet the following requirements: |
17 | (1) The premises on which the applicant proposes to |
18 | conduct business are adequate to protect the revenue. |
19 | (2) The applicant is a person of reasonable financial |
20 | stability and reasonable business experience. |
21 | (3) The applicant, or any shareholder controlling more |
22 | than 10% of the stock if the applicant is a corporation or |
23 | any officer or director if the applicant is a corporation, |
24 | shall not have been convicted of any crime involving moral |
25 | turpitude. |
26 | (4) The applicant shall not have failed to disclose any |
27 | material information required by the department, including |
28 | information that the applicant has complied with this article |
29 | by providing a signed statement under penalty of perjury. |
30 | (5) The applicant shall not have made any material false |
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1 | statement in the application. |
2 | (6) The applicant shall not have violated any provision |
3 | of this article. |
4 | (7) The applicant shall have filed all required State |
5 | tax reports and paid any State taxes not subject to a timely |
6 | perfected administrative or judicial appeal or subject to a |
7 | duly authorized deferred payment plan. |
8 | (b) Multiple locations.--The wholesale license shall be |
9 | valid for one specific location only. Wholesalers with more than |
10 | one location shall obtain a license for each location. |
11 | Section 1223-A. Licensing of retailers. |
12 | Applicants for retail license or renewal of that license |
13 | shall meet the following requirements: |
14 | (1) The premises in which the applicant proposes to |
15 | conduct business are adequate to protect the revenues. |
16 | (2) The applicant shall not have failed to disclose any |
17 | material information required by the department. |
18 | (3) The applicant shall not have any material false |
19 | statement in the application. |
20 | (4) The applicant shall not have violated any provision |
21 | of this article. |
22 | (5) The applicant shall have filed all required State |
23 | tax reports and paid any State taxes not subject to a timely |
24 | perfected administrative or judicial appeal or subject to a |
25 | duly authorized deferred payment plan. |
26 | Section 1224-A. License for tobacco products vending machines. |
27 | Each tobacco products vending machine shall have a current |
28 | retail license which shall be conspicuously and visibly placed |
29 | on the machine. There shall be conspicuously and visibly placed |
30 | on every tobacco products vending machine the name and address |
|
1 | of the owner and the name and address of the operator. |
2 | Section 1225-A. License fees and issuance and display of |
3 | license. |
4 | (a) At the time of making any application or license renewal |
5 | application: |
6 | (1) An applicant for a tobacco products manufacturers |
7 | license shall pay the department a license fee of $1,500. |
8 | (2) An applicant for a wholesale tobacco products |
9 | dealer's license shall pay to the department a license fee of |
10 | $1,500. |
11 | (3) An applicant for a retail tobacco products dealer's |
12 | license shall pay to the department a license fee of $25. |
13 | (4) An applicant for a vending machine tobacco products |
14 | dealer's license shall pay to the department a license fee of |
15 | $25. |
16 | (b) Proration.--Fees shall not be prorated. |
17 | (c) Issuance and display.--On approval of the application |
18 | and payment of the fees, the department shall issue the proper |
19 | license which must be conspicuously displayed at the location |
20 | for which it has been issued. |
21 | Section 1226-A. Electronic filing. |
22 | The department may at its discretion require that any or all |
23 | returns, reports or registrations that are required to be filed |
24 | under this article be filed electronically. Failure to |
25 | electronically file any return, report, registration or other |
26 | information the department may direct to be filed electronically |
27 | shall subject the taxpayer to a penalty of 5% of the tax due on |
28 | the return, up to a maximum of $1,000, but not less than $10. |
29 | This penalty shall be assessed at any time and collected in the |
30 | manner provided in this article. This penalty shall be in |
|
1 | addition to any civil penalty imposed in this article for |
2 | failure to furnish information or file a return. The criminal |
3 | penalty for failure to file a return electronically shall be the |
4 | same as the criminal penalty for failure to furnish information |
5 | or file a return under this article. |
6 | Section 1227-A. Expiration of license. |
7 | (a) Expiration.--A license shall expire on the last day of |
8 | June next succeeding the date upon which it was issued unless |
9 | the department at an earlier date suspends, surrenders or |
10 | revokes the license. |
11 | (b) Violation.--After the expiration date of the license or |
12 | sooner if the license is suspended, surrendered or revoked, it |
13 | shall be illegal for any dealer to engage directly or indirectly |
14 | in the business heretofore conducted by the dealer for which the |
15 | license was issued. Any licensee who shall, after the expiration |
16 | date of the license, engage in the business theretofore |
17 | conducted by the licensee either by way of purchase, sale, |
18 | distribution or in any other manner directly or indirectly |
19 | engaged in the business of dealing with tobacco products for |
20 | profit shall be in violation of this article and be subject to |
21 | the penalties provided in this article. |
22 | Section 1228-A. Administration powers and duties. |
23 | (a) Department.--The administration of this article is |
24 | hereby vested in the department. The department shall adopt |
25 | rules and regulations for the enforcement of this article. The |
26 | department may impose fees as may be necessary to cover the |
27 | costs incurred in administering this section. |
28 | (b) Joint administration.--The department is authorized to |
29 | jointly administer this article with other provisions of this |
30 | act, including joint reporting of information, forms, returns, |
|
1 | statements, documents or other information submitted to the |
2 | department. |
3 | Section 1229-A. Sales without license. |
4 | (a) Penalty.--Any person who shall, without being the holder |
5 | of a proper unexpired dealer's license, engage in purchasing, |
6 | selling, distributing or in any other manner directly or |
7 | indirectly engaging in the business of dealing with tobacco |
8 | products for profit commits a summary offense and shall, upon |
9 | conviction, be sentenced to pay costs of prosecution and a fine |
10 | of not less than $250 nor more than $1,000, or to imprisonment |
11 | for not more than 30 days, or both, at the discretion of the |
12 | court. |
13 | (b) Prima facie evidence.--Open display of tobacco products |
14 | in any manner shall be prima facie evidence that the person |
15 | displaying such tobacco products is directly or indirectly |
16 | engaging in the business of dealing with tobacco products for |
17 | profit. |
18 | Section 1230-A. Violations and penalties. |
19 | (a) Suspension.--The license of any person who violates this |
20 | article may be suspended after due notice and opportunity for a |
21 | hearing for a period of not less than five days or more than 30 |
22 | days for a first violation and shall be revoked or suspended for |
23 | any subsequent violation. |
24 | (b) Fine.--In addition to the provisions of subsection (a), |
25 | upon adjudication of a first violation, the person shall be |
26 | fined not less than $2,500 nor more than $5,000. For subsequent |
27 | violations, the person shall, upon adjudication thereof, be |
28 | fined not less than $5,000 nor more than $15,000. |
29 | (c) Civil penalty.--A person who violates section 1214-A |
30 | (b), (c), or (d), or 1225-A(c), shall be subject to a civil |
|
1 | penalty not to exceed $300 per violation but shall not be |
2 | subject to subsections (a) and (b). |
3 | Section 1231-A. Property rights. |
4 | (a) Incorporation.--Subject to subsection (b), section 1285 |
5 | is incorporated by reference into and shall apply to this |
6 | article. |
7 | (b) Alterations.-- |
8 | (1) References in section 1285 to cigarettes shall apply |
9 | to tobacco products in this article. |
10 | (2) References in section 1285 to 2,000 or more |
11 | unstamped cigarettes shall apply to tobacco products worth at |
12 | least $500 in this article. |
13 | (3) References in section 1285 to more than 200 |
14 | unstamped cigarettes shall apply to tobacco products worth at |
15 | least $50 in this article. |
16 | Section 1232-A. Sample of tobacco products. |
17 | (a) Samples.--The department shall, by regulation, govern |
18 | the receipt, distribution of and payment of tax on sample |
19 | tobacco products issued for free distribution. |
20 | (b) Construction.--Nothing in this article or the |
21 | regulations promulgated under this article shall prohibit the |
22 | bringing into this Commonwealth by a manufacturer samples of |
23 | tobacco products to be delivered and distributed only through |
24 | licensed dealers or the manufacturers or their sales |
25 | representatives. The tax shall be paid by the manufacturer |
26 | provided all such packs bear the legend "all applicable State |
27 | taxes have been paid." Under no circumstances shall any untaxed |
28 | tobacco products be sold within this Commonwealth. |
29 | Section 1233-A. Labeling and packaging. |
30 | It shall be unlawful to knowingly possess, sell, give, |
|
1 | transfer or deliver to any person, any tobacco product where the |
2 | packaging of which has been modified or altered by a person |
3 | other than the original manufacturer. Modification or alteration |
4 | shall include the placement of a sticker, writing or mark to |
5 | cover information on the packages. For purposes of this section, |
6 | a tobacco product package shall not be construed to have been |
7 | modified or altered by a person other than the manufacturer if |
8 | the most recent modification or alteration was made by the |
9 | manufacturer or person authorized by the manufacturer and |
10 | approved by the department. |
11 | Section 1234-A. Information exchange. |
12 | The department is authorized to exchange information with any |
13 | other Federal, State or local enforcement agency for purposes of |
14 | enforcing this article. |
15 | ARTICLE XXII |
16 | SEVERANCE TAX |
17 | Section 2201. Short title of article. |
18 | This article shall be known and may be cited as the Natural |
19 | Gas Severance Tax Act. |
20 | Section 2202. Definitions. |
21 | The following words and phrases when used in this article |
22 | shall have the meanings given to them in this section unless the |
23 | context clearly indicates otherwise: |
24 | "Accredited laboratory." A facility engaged in the testing |
25 | and calibration of scientific measurement devices and certified |
26 | by the Department of Environmental Protection as having met the |
27 | department's standards for accreditation. |
28 | "Association." A partnership, limited partnership or any |
29 | other form of unincorporated enterprise owned or conducted by |
30 | two or more persons. |
|
1 | "Corporation." A corporation, joint stock association, |
2 | limited liability company, business trust or any other |
3 | incorporated enterprise organized under the laws of this |
4 | Commonwealth, the United States or any other state, territory or |
5 | foreign country or dependency. |
6 | "Department." The Department of Revenue of the Commonwealth. |
7 | "Gross value." The volume-weighted average market price for |
8 | all arms-length transactions that a producer receives at the |
9 | sales meter for natural gas during a reporting period. |
10 | "Meter." A device to measure the passage of volumes of gases |
11 | or liquids past a certain point. |
12 | "Municipality." A city, borough, incorporated town or a |
13 | township. |
14 | "Natural gas." A fossil fuel consisting of a mixture of |
15 | hydrocarbon gases, primarily methane, possibly including ethane, |
16 | propane, butane, pentane, carbon dioxide, oxygen, nitrogen and |
17 | hydrogen sulfide and other gas species. The term includes |
18 | natural gas from oil fields known as associated gas or casing |
19 | head gas, natural gas fields known as nonassociated gas, coal |
20 | beds, shale beds and other formations. |
21 | "Nonproducing site." A point of severance that is not |
22 | capable of producing natural gas in paying quantities. |
23 | "Paying quantities." Profit to the producer, however small, |
24 | over the producer's current operating expenses. |
25 | "Person." A natural person or a corporation, fiduciary, |
26 | association or other entity, including the Commonwealth, its |
27 | political subdivisions, instrumentalities and authorities. When |
28 | the term is used in a clause prescribing and imposing a penalty |
29 | or imposing a fine or imprisonment, or both, the term shall |
30 | include the members, as applied to an association, and the |
|
1 | officers, as applied to a corporation. |
2 | "Producer." A person who engages or continues within this |
3 | Commonwealth in the business of severing natural gas for sale, |
4 | profit or commercial use. The term does not include a person who |
5 | severs natural gas from a storage field. |
6 | "Producing site." A point of severance capable of producing |
7 | natural gas in paying quantities. |
8 | "Reporting period." A calendar month in which natural gas is |
9 | severed. |
10 | "Sales meter." A meter at the point where natural gas is |
11 | sold or transported to a purchaser or market. |
12 | "Sever," "severing" or "severance." The extraction or other |
13 | removal of natural gas from the soil or water of this |
14 | Commonwealth. |
15 | "Storage field." A natural formation or other site that is |
16 | used to store natural gas that did not originate from and has |
17 | been injected into the formation or site. |
18 | "Stripper well." A producing site or a nonproducing site |
19 | that is not capable of producing and does not produce more than |
20 | 60,000 cubic feet of natural gas per day. |
21 | "Tax." The tax imposed under this article. |
22 | "Taxpayer." A person subject to the tax imposed by this |
23 | article. |
24 | "Unit." A thousand cubic feet of natural gas measured at the |
25 | wellhead at a temperature of 60 degrees Fahrenheit and an |
26 | absolute pressure of 14.73 pounds per square inch in accordance |
27 | with American Gas Association Standards and according to Boyle's |
28 | law for the measurement of gas under varying pressures with |
29 | deviations as follows: |
30 | (1) The average absolute atmospheric pressure shall be |
|
1 | assumed to be 14.4 pounds to the square inch, regardless of |
2 | elevation or location of point of delivery above sea level or |
3 | variations in atmospheric pressure from time to time. |
4 | (2) The temperature of the gas passing the meters shall |
5 | be determined by the continuous use of a recording |
6 | thermometer installed to properly record the temperature of |
7 | gas flowing through the meters. The arithmetic average of the |
8 | temperature recorded each 24-hour day shall be used in |
9 | computing gas volumes. If a recording thermometer is not |
10 | installed, or if installed and not operating properly, an |
11 | average flowing temperature of 60 degrees Fahrenheit shall be |
12 | used in computing gas volume. |
13 | (3) The specific gravity of the gas shall be determined |
14 | annually by tests made by the use of an Edwards or Acme |
15 | gravity balance, or at intervals as found necessary in |
16 | practice. Specific gravity determinations shall be used in |
17 | computing gas volumes. |
18 | (4) The deviation of the natural gas from Boyle's Law |
19 | shall be determined by annual tests or at other shorter |
20 | intervals as found necessary in practice. The apparatus and |
21 | method used in making the test shall be in accordance with |
22 | recommendations of the National Bureau of Standards or Report |
23 | No. 3 of the Gas Measurement Committee of the American Gas |
24 | Association, or amendments thereto. The results of the tests |
25 | shall be used in computing the volume of gas delivered under |
26 | this article. |
27 | "Wellhead meter." A meter placed at a producing or |
28 | nonproducing site to measure the volume of natural gas severed |
29 | for which a wellhead meter certification has been issued. |
30 | "Wellhead meter certification." A report issued by an |
|
1 | accredited laboratory certifying the accuracy of a wellhead |
2 | meter. |
3 | Section 2203. Imposition of tax. |
4 | (a) Establishment.--There is levied a natural gas severance |
5 | tax on every producer. |
6 | (b) Rate.--The tax imposed in subsection (a) shall be 8% of |
7 | the gross value of units severed at the wellhead during a |
8 | reporting period, plus 7 cents per unit severed, but shall not |
9 | be imposed on units severed from a stripper well. |
10 | Section 2204. Return and payment. |
11 | (a) Requirement.--Every producer is required to file a |
12 | return with the department, on a form to be prescribed by the |
13 | department, reporting all severed natural gas per reporting |
14 | period and the tax due under section 2203. |
15 | (a.1) Additional information.--The department may require |
16 | information necessary for compliance with the act of December |
17 | 19, 1984 (P.L.1140, No.223), known as the Oil and Gas Act, on |
18 | the returns required under this section or the applications |
19 | required under section 2205. Information on the returns or |
20 | applications may be provided to the Department of Environmental |
21 | Protection. |
22 | (a.2) Other required submissions by applicant.-- |
23 | (1) An applicant for the grant, renewal or transfer of a |
24 | permit issued under section 201 of the Oil and Gas Act shall |
25 | provide to the Department of Environmental Protection, upon |
26 | forms approved by the department, the following: |
27 | (i) The applicant's State personal income tax |
28 | identification number. |
29 | (ii) The applicant's State sales tax number. |
30 | (iii) The applicant's State corporation tax number. |
|
1 | (iv) The applicant's State employer withholding tax |
2 | number. |
3 | (v) The applicant's unemployment compensation |
4 | account number. |
5 | (vi) A statement that: |
6 | (A) State tax reports have been filed and State |
7 | taxes paid; |
8 | (B) State taxes are subject to a timely |
9 | administrative or judicial appeal; or |
10 | (C) State taxes are subject to a duly approved |
11 | deferred payment plan. |
12 | (2) An applicant for the grant, renewal or transfer of a |
13 | permit referred to in paragraph (1) issued shall, by the |
14 | filing of an application as it relates to the Department of |
15 | Environmental Protection waive confidentiality regarding |
16 | State tax information regarding the application in the |
17 | possession of the department, the Office of Attorney General |
18 | or the Department of Labor and Industry, regardless of the |
19 | source of that information and shall consent to the providing |
20 | of the information to the board by the department, the Office |
21 | of Attorney General or the Department of Labor and Industry. |
22 | (3) Upon receipt of an application for the grant, |
23 | renewal or transfer of a permit referred to in paragraph (1), |
24 | the Department of Environmental Protection shall review the |
25 | State tax status of the applicant. The Department of |
26 | Environmental Protection shall request State tax information |
27 | regarding the applicant from the department, the Office of |
28 | Attorney General or the Department of Labor and Industry and |
29 | said information shall be provided. |
30 | (4) The Department of Environmental Protection shall not |
|
1 | approve an application for the grant, renewal or transfer of |
2 | a license issued under this article where the applicant has |
3 | failed to: |
4 | (i) provide the information required by paragraph |
5 | (1); |
6 | (ii) file required State tax reports; or |
7 | (iii) pay State taxes not subject to a timely |
8 | administrative or judicial appeal or subject to a duly |
9 | authorized deferred payment plan. |
10 | (5) For the purpose of this section, the term |
11 | "applicant" shall include the transferor and transferee of a |
12 | permit referred to in paragraph (1). |
13 | (6) Upon the required submission of the permit fee or |
14 | upon issuance or transfer of any permit referred to in |
15 | paragraph (1), if the department or the Department of Labor |
16 | and Industry notifies the board of noncompliance with the |
17 | provisions of this subsection, the board shall not issue or |
18 | transfer the permit. An appeal filed therefrom shall not act |
19 | as a supersedeas. |
20 | (7) This section shall also be applicable to a |
21 | management company utilized by the applicant. |
22 | (b) Filing.--The return required by subsection (a) shall be |
23 | filed with the department within 15 days following the end of |
24 | the second calendar month after a reporting period. |
25 | (c) Deadline.--The tax imposed under section 2203 is due on |
26 | the day the return is required to be filed and becomes |
27 | delinquent if not remitted to the department by that date. |
28 | Section 2205. Natural gas severance tax registration. |
29 | (a) Application.--Before a producer severs natural gas in |
30 | this Commonwealth, the producer shall apply to the department |
|
1 | for a natural gas severance tax registration certificate. |
2 | (a.1) Application fee.--The department may charge an |
3 | application fee to cover the administrative costs associated |
4 | with the application and registration process. If the department |
5 | charges an application fee, the department shall not issue a |
6 | registration certificate until the producer has paid the |
7 | application fee. |
8 | (a.2) Declaration.--The producer shall include in its |
9 | application a declaration of all sites in this Commonwealth used |
10 | by the producer for the severance of natural gas. The |
11 | declaration is to include all producing sites and nonproducing |
12 | sites as well as wellhead meter certification for each. The |
13 | producer is required to update the declaration when the producer |
14 | adds or removes a producing site or nonproducing site in this |
15 | Commonwealth or when there is a change in the status of a |
16 | producing site or nonproducing site or when the producer uses a |
17 | different accredited laboratory to certify the accuracy of the |
18 | producer's wellhead meters. The producer shall update the |
19 | declaration within 30 days after a calendar month in which a |
20 | change to the declaration occurs. |
21 | (b) Issuance.--Except as provided in subsection (c), after |
22 | the receipt of an application, the department shall issue a |
23 | registration certificate under subsection (a). The registration |
24 | certificate shall be nonassignable. All registrants shall be |
25 | required to renew their registration certificates and wellhead |
26 | meter certifications on a staggered renewal system established |
27 | by the department. After the initial staggered renewal period, a |
28 | registration certificate or a wellhead meter certification |
29 | issued shall be valid for a period of five years. |
30 | (c) Refusal, suspension or revocation.--The department may |
|
1 | refuse to issue, suspend or revoke a registration certificate if |
2 | the applicant or registrant has not filed required State tax |
3 | reports and paid State taxes not subject to a timely perfected |
4 | administrative or judicial appeal or subject to a duly |
5 | authorized deferred payment plan. The department shall notify |
6 | the applicant or registrant of any refusal, suspension or |
7 | revocation. The notice shall contain a statement that the |
8 | refusal, suspension or revocation may be made public. The notice |
9 | shall be made by first class mail. An applicant or registrant |
10 | aggrieved by the determination of the department may file an |
11 | appeal under the provisions for administrative appeals of this |
12 | act. In the case of a suspension or revocation which is |
13 | appealed, the registration certificate shall remain valid |
14 | pending a final outcome of the appeals process. Notwithstanding |
15 | sections 274, 353(f), 408(b), 603, 702, 802, 904 and 1102 or any |
16 | other provision of law, if no appeal is taken or if an appeal is |
17 | taken and denied at the conclusion of the appeal process the |
18 | department may disclose, by publication or otherwise, the |
19 | identity of a producer and the fact that the producer's |
20 | registration certificate has been refused, suspended or revoked |
21 | under this subsection. Disclosure may include the basis for |
22 | refusal, suspension or revocation. |
23 | (d) Violation.--A person severing natural gas in this |
24 | Commonwealth without holding a valid registration certificate |
25 | under subsection (b) shall be guilty of a summary offense and |
26 | shall, upon conviction, be sentenced to pay a fine of not less |
27 | than $300 nor more than $1,500. In the event the person |
28 | convicted defaults, he shall be sentenced to imprisonment for |
29 | not less than five days nor more than 30 days. The penalties |
30 | imposed by this subsection shall be in addition to any other |
|
1 | penalties imposed by this article. For purposes of this |
2 | subsection, the severing of natural gas during any calendar day |
3 | shall constitute a separate violation. The Secretary of Revenue |
4 | may designate employees of the department to enforce the |
5 | provisions of this subsection. The employees shall exhibit proof |
6 | of and be within the scope of the designation when instituting |
7 | proceedings as provided by the Pennsylvania Rules of Criminal |
8 | Procedure. |
9 | (e) Failure to obtain registration certificate.--Failure to |
10 | obtain or hold a valid registration certificate does not relieve |
11 | a person from liability for the tax imposed by this article. |
12 | Section 2205.1. Meters. |
13 | A producer shall provide for and maintain a discrete wellhead |
14 | meter and a discrete sales meter. A producer shall ensure that |
15 | the meters are maintained according to industry standards. Any |
16 | wellhead meter installed after the effective date of this |
17 | section shall be a digital meter. |
18 | Section 2206. Assessments. |
19 | (a) Authorization and requirement.--The department is |
20 | authorized and shall make the inquiries, determinations and |
21 | assessments of the natural gas severance tax, including |
22 | interest, additions and penalties imposed under this article. |
23 | (b) Notice.--The notice of assessment and demand for payment |
24 | shall be mailed to the taxpayer. The notice shall set forth the |
25 | basis of the assessment. The department shall send the notice of |
26 | assessment to the taxpayer at its registered address via |
27 | certified mail if the assessment increases the taxpayer's tax |
28 | liability by $300. Otherwise, the notice of assessment may be |
29 | sent via regular mail. |
30 | Section 2207. Time for assessment. |
|
1 | (a) Requirement.--An assessment as provided under section |
2 | 2206 shall be made within three years after the date when the |
3 | return provided for by section 2204 is filed or the end of the |
4 | year in which the tax liability arises, whichever shall occur |
5 | last. For the purposes of this subsection and subsection (b), a |
6 | return filed before the last day prescribed for the filing |
7 | period shall be considered as filed on the last day. |
8 | (b) Exception.--If the taxpayer underpays the correct amount |
9 | of the tax due by 25% or more, the tax may be assessed within |
10 | six years after the date the return was filed. |
11 | (c) Intent to evade.--Where no return is filed or where the |
12 | taxpayer files a false or fraudulent return with intent to evade |
13 | the tax imposed by this article, the assessment may be made at |
14 | any time. |
15 | (d) Erroneous credit or refund.--Within three years of the |
16 | granting of a refund or credit or within the period in which an |
17 | assessment or reassessment may have been issued by the |
18 | department for the taxable period for which the refund was |
19 | granted, whichever period shall last occur, the department may |
20 | issue an assessment to recover a refund or credit made or |
21 | allowed erroneously. |
22 | Section 2208. Extension of limitation period. |
23 | Notwithstanding the provisions of this article, the |
24 | assessment period may be extended in the event a taxpayer has |
25 | provided written consent before the expiration of the period |
26 | provided in section 2207 for a tax assessment. The amount of tax |
27 | due may be assessed at any time within the extended period. The |
28 | period may be extended further by subsequent written consents |
29 | made before the expiration of the extended period. |
30 | Section 2209. Reassessments. |
|
1 | A taxpayer against whom an assessment is made may petition |
2 | the department for a reassessment under Article XXVII. |
3 | Section 2210. Interest. |
4 | The department shall assess interest on any delinquent tax at |
5 | the rate prescribed under section 806 of the act of April 9, |
6 | 1929 (P.L.343, No. 176), known as The Fiscal Code. |
7 | Section 2211. Penalties. |
8 | The department shall enforce the following penalties: |
9 | (1) A penalty against a valid producer without a natural |
10 | gas severance tax registration certificate. The penalty shall |
11 | be $1 for every unit severed without a valid registration |
12 | certificate. The department may assess this penalty |
13 | separately from or in conjunction with any assessment of the |
14 | natural gas severance tax. |
15 | (2) A penalty against a producer for failure to timely |
16 | file a return as required under section 2204. The penalty |
17 | shall be 5% of the tax liability to be reported on the return |
18 | for each day beyond the due date that the return is not |
19 | filed. |
20 | (3) In addition to the penalty under paragraph (2), a |
21 | penalty against the producer for a willful failure to timely |
22 | file a return. The penalty shall be 200% of the tax liability |
23 | required to be reported on the return. |
24 | (4) A penalty against a producer for failure to timely |
25 | pay the tax as required by section 2204(c). The penalty shall |
26 | be 5% of the amount of tax due for each day beyond the |
27 | payment date that the tax is not paid. |
28 | Section 2212. Criminal acts. |
29 | (a) Fraudulent return.--Any person with intent to defraud |
30 | the Commonwealth, who willfully makes or causes to be made a |
|
1 | return required by this article which is false, is guilty of a |
2 | misdemeanor and shall, upon conviction, be sentenced to pay a |
3 | fine of not more than $2,000 or to imprisonment for not more |
4 | than three years, or both. |
5 | (b) Other crimes.-- |
6 | (1) Except as otherwise provided by subsection (a), a |
7 | person is guilty of a misdemeanor and shall, upon conviction, |
8 | be sentenced to pay a fine of not more than $1,000 and costs |
9 | of prosecution or to imprisonment for not more than one year, |
10 | or both, for any of the following: |
11 | (i) Willfully failing to timely remit the tax to the |
12 | department. |
13 | (ii) Willfully failing or neglecting to timely file |
14 | a return or report required by this article. |
15 | (iii) Refusing to timely pay a tax, penalty or |
16 | interest imposed or provided for by this article. |
17 | (iv) Willfully failing to preserve its books, papers |
18 | and records as directed by the department. |
19 | (v) Refusing to permit the department or its |
20 | authorized agents to examine its books, records or |
21 | papers. |
22 | (vi) Knowingly make any incomplete, false or |
23 | fraudulent return or report. |
24 | (vii) Preventing or attempting to prevent the full |
25 | disclosure of the amount of natural gas severance tax |
26 | due. |
27 | (viii) Providing any person with a false statement |
28 | as to the payment of natural gas severance tax with |
29 | respect to any pertinent facts. |
30 | (ix) Making, uttering or issuing a false or |
|
1 | fraudulent statement. |
2 | (2) The penalties imposed by this section shall be in |
3 | addition to other penalties imposed by this article. |
4 | Section 2213. Abatement of additions or penalties. |
5 | Upon the filing of a petition for reassessment or a petition |
6 | for refund by a taxpayer as provided under this article, |
7 | additions or penalties imposed upon the taxpayer by this article |
8 | may be waived or abated in whole or in part where the petitioner |
9 | establishes that he acted in good faith, without negligence and |
10 | with no intent to defraud. |
11 | Section 2214. Bulk and auction sales. |
12 | A person that sells or causes to be sold at auction, or that |
13 | sells or transfers in bulk, 51% or more of a stock of goods, |
14 | wares or merchandise of any kind, fixtures, machinery, |
15 | equipment, buildings or real estate involved in a business for |
16 | which the person holds a registration certificate or is required |
17 | to obtain a registration certificate under the provisions of |
18 | this article shall be subject to the provisions of section 1403 |
19 | of the act of April 9, 1929 (P.L.343, No.176), known as The |
20 | Fiscal Code. |
21 | Section 2215. Collection upon failure to request reassessment, |
22 | review or appeal. |
23 | (a) Power of department.--The department may collect the |
24 | natural gas severance tax: |
25 | (1) If an assessment of the tax is not paid within 30 |
26 | days after notice to the taxpayer when no petition for |
27 | reassessment has been filed. |
28 | (2) Within 60 days of the reassessment, if no petition |
29 | for review has been filed. |
30 | (3) If no appeal has been made, within 30 days of: |
|
1 | (i) the Board of Finance and Revenue's decision of a |
2 | petition for review; or |
3 | (ii) the expiration of the board's time for acting |
4 | upon the petition. |
5 | (4) In all cases of judicial sales, receiverships, |
6 | assignments or bankruptcies. |
7 | (b) Prohibition.--In a case for the collection of taxes |
8 | under subsection (a), the taxpayer against whom they were |
9 | assessed shall not be permitted to set up a ground of defense |
10 | that might have been determined by the department, the Board of |
11 | Finance and Revenue or the courts, provided that the defense of |
12 | failure of the department to mail notice of assessment or |
13 | reassessment to the taxpayer and the defense of payment of |
14 | assessment or reassessment may be raised in proceedings for |
15 | collection by a motion to stay the proceedings. |
16 | Section 2216. Tax liens. |
17 | (a) Lien imposed.--If any taxpayer neglects or refuses to |
18 | pay the natural gas severance tax for which the taxpayer is |
19 | liable under this article after demand, the amount, including |
20 | interest, addition or penalty, together with additional costs |
21 | that may accrue, shall be a lien in favor of the Commonwealth |
22 | upon the real and personal property of the taxpayer but only |
23 | after the same has been entered and docketed of record by the |
24 | prothonotary of the county where the property is situated. The |
25 | department may, at any time, transmit to the prothonotaries of |
26 | the respective counties certified copies of all liens imposed by |
27 | this section. It shall be the duty of the prothonotary receiving |
28 | the lien to enter and docket the same of record to the office of |
29 | the prothonotary. The lien shall be indexed as judgments are now |
30 | indexed. No prothonotary shall require as a condition precedent |
|
1 | to the entry of the lien the payment of costs incidental to its |
2 | entry. |
3 | (b) Priority of lien and effect on judicial sale.--Except |
4 | for the costs of the sale and the writ upon which the sale was |
5 | made and real estate taxes and municipal claims against the |
6 | property, a lien imposed under this section shall have priority |
7 | from the date of its recording and shall be fully paid and |
8 | satisfied out of the proceeds of any judicial sale of property |
9 | subject to the lien, before any other obligation, judgment, |
10 | claim, lien or estate to which the property may subsequently |
11 | become subject, but shall be subordinate to mortgages and other |
12 | liens existing and duly recorded or entered of record prior to |
13 | the recording of the lien. |
14 | (c) No discharge by sale on junior lien.--In the case of a |
15 | judicial sale of property subject to a lien imposed under this |
16 | section, upon a lien or claim over which the lien imposed under |
17 | this section has priority, the sale shall discharge the lien |
18 | imposed under this section to the extent only that the proceeds |
19 | are applied to its payment, and the lien shall continue in full |
20 | force and effect as to the balance remaining unpaid. There shall |
21 | be no inquisition or condemnation upon any judicial sale of real |
22 | estate made by the Commonwealth under the provisions of this |
23 | article. The lien shall continue as provided in the act of April |
24 | 9, 1929 (P.L.343, No.176), known as The Fiscal Code, and a writ |
25 | of execution may directly issue upon the lien without the |
26 | issuance and prosecution to judgment of a writ of scire facias, |
27 | provided that not less than ten days before issuance of any |
28 | execution on the lien, notice of the filing and the effect of |
29 | the lien shall be sent by registered mail to the taxpayer at its |
30 | last known post office address, provided further that the lien |
|
1 | shall have no effect upon any stock of goods, wares or |
2 | merchandise regularly sold or leased in the ordinary course of |
3 | business by the taxpayer against whom the lien has been entered, |
4 | unless and until a writ of execution has been issued and a levy |
5 | made upon said stock of goods, wares and merchandise. |
6 | (d) Duty of prothonotary.--Any willful failure of any |
7 | prothonotary to carry out any duty imposed upon him by this |
8 | section shall be a misdemeanor. Upon conviction, he shall be |
9 | sentenced to pay a fine of not more than $1,000 and costs of |
10 | prosecution or to imprisonment for not more than one year, or |
11 | both. |
12 | (e) Priority.--Except as provided in this article, the |
13 | distribution, voluntary or compulsory, in receivership, |
14 | bankruptcy or otherwise of the property or estate of any person, |
15 | all taxes imposed by this article which are due and unpaid and |
16 | are not collectible under the provisions of section 225, shall |
17 | be paid from the first money available for distribution in |
18 | priority to all other claims and liens, except as the laws of |
19 | the United States may give priority to a claim to the Federal |
20 | Government. A person charged with the administration or |
21 | distribution of the property or estate who violates the |
22 | provisions of this section shall be personally liable for the |
23 | taxes imposed by this article which are accrued and unpaid and |
24 | chargeable against the person whose property or estate is being |
25 | administered or distributed. |
26 | (f) Other remedies.--Subject to the limitations contained in |
27 | this article as to the assessment of taxes, nothing contained in |
28 | this section shall be construed to restrict, prohibit or limit |
29 | the use by the department in collecting taxes due and payable of |
30 | another remedy or procedure available at law or equity for the |
|
1 | collection of debts. |
2 | Section 2217. Tax suit reciprocity. |
3 | The courts of this Commonwealth shall recognize and enforce |
4 | liabilities for natural gas severance taxes lawfully imposed by |
5 | any other state, provided that the other state recognizes and |
6 | enforces the tax set forth in this article. |
7 | Section 2218. Service. |
8 | A producer is deemed to have appointed the Secretary of the |
9 | Commonwealth its agent for the acceptance of service of process |
10 | or notice in a proceeding for the enforcement of the civil |
11 | provisions of this article and service made upon the Secretary |
12 | of the Commonwealth as agent shall be of the same legal force |
13 | and validity as if the service had been personally made upon the |
14 | producer. Where service cannot be made upon the producer in the |
15 | manner provided by other laws of this Commonwealth relating to |
16 | service of process, service may be made upon the Secretary of |
17 | the Commonwealth. In that case, a copy of the process or notice |
18 | shall be personally served upon any agent or representative of |
19 | the producer who may be found within this Commonwealth or, where |
20 | no agent or representative may be found, a copy of the process |
21 | or notice shall be sent via registered mail to the producer at |
22 | the last known address of its principal place of business, home |
23 | office or residence. |
24 | Section 2219. Refunds. |
25 | Under Article XXVII, the department shall refund all taxes, |
26 | interest and penalties paid to the Commonwealth under the |
27 | provisions of this article to which the Commonwealth is not |
28 | rightfully entitled. The refunds shall be made to the person or |
29 | the person's heirs, successors, assigns or other personal |
30 | representatives who paid the tax, provided that no refund shall |
|
1 | be made under this section regarding a payment made by reason of |
2 | an assessment where a taxpayer has filed a petition for |
3 | reassessment under section 2702 to the extent the petition is |
4 | adverse to the taxpayer by a decision which is no longer subject |
5 | to further review or appeal. Nothing in this article shall |
6 | prohibit a taxpayer who has filed a timely petition for |
7 | reassessment from amending it to a petition for refund where the |
8 | petitioner paid the tax assessed. |
9 | Section 2220. Refund petition. |
10 | (a) General rule.--Except as provided for in subsection (b), |
11 | the refund or credit of tax, interest or penalty provided for by |
12 | section 2219 shall be made only where the person who has paid |
13 | the tax files a petition for refund with the department under |
14 | Article XXVII, within the time limits of section 3003.1. |
15 | (b) Natural gas severance tax.--A refund or credit of tax, |
16 | interest or penalty paid as a result of an assessment made by |
17 | the department under section 2205 shall be made only where the |
18 | person who has paid the tax files with the department a petition |
19 | for a refund with the department under Article XXVII within the |
20 | time limits of section 3003.1. The filing of a petition for |
21 | refund, under the provisions of this subsection, shall not |
22 | affect the abatement of interest, additions or penalties to |
23 | which the person may be entitled by reason of his payment of the |
24 | assessment. |
25 | Section 2221. Rules and regulations. |
26 | The department is charged with the enforcement of the |
27 | provisions of this article and is authorized and empowered to |
28 | prescribe, adopt, promulgate and enforce rules and regulations |
29 | not inconsistent with the provisions of this article relating to |
30 | any matter or thing pertaining to the administration and |
|
1 | enforcement of the provisions of this article and the collection |
2 | of taxes, penalties and interest imposed by this article. The |
3 | department may prescribe the extent, if any, to which any of the |
4 | rules and regulations shall be applied without retroactive |
5 | effect. |
6 | Section 2222. Recordkeeping. |
7 | (a) General rule.--Every person liable for any tax imposed |
8 | by this article, or for the collection of such tax, shall keep |
9 | records, including those enumerated in subsection (b), render |
10 | statements, make returns and comply with the rules and |
11 | regulations as the department may prescribe regarding matters |
12 | pertinent to the person's business. Whenever it is necessary, |
13 | the department may require a person, by notice served upon the |
14 | person or by regulations, to make returns, render statements or |
15 | keep records as the department deems sufficient to show whether |
16 | or not a person is liable to pay tax under this article. |
17 | (a.1) Records.--Records to be maintained are: |
18 | (1) Wellhead meter and sales meter charts for each |
19 | reporting period and the meter calibration and maintenance |
20 | records. If turbine meters are in use, the maintenance |
21 | records will be made available to the department upon |
22 | request. |
23 | (2) Records, statements and other instruments furnished |
24 | to a producer by a person to whom the producer delivers for |
25 | sale, transport or delivery of natural gas. |
26 | (3) Records, statements and other instruments as the |
27 | department may prescribe by regulation. |
28 | (b) Records of nonresidents.--A nonresident who does |
29 | business in this Commonwealth as a producer shall keep adequate |
30 | records of the business and of the tax due as a result. The |
|
1 | records shall be retained within this Commonwealth unless |
2 | retention outside this Commonwealth is authorized by the |
3 | department. The department may require a taxpayer who desires to |
4 | retain records outside this Commonwealth to assume reasonable |
5 | out-of-State audit expenses. |
6 | (c) Keeping of separate records.--A producer who is engaged |
7 | in another business or businesses which do not involve the |
8 | severing of natural gas taxable under this article, shall keep |
9 | separate books and records of the businesses so as to show the |
10 | taxable severing of natural gas under this article separately |
11 | from other business activities not taxable hereunder. If any |
12 | person fails to keep separate books and records, the person |
13 | shall be liable for a penalty equaling 100% of tax due under |
14 | this article for the period where separate records were not |
15 | maintained. |
16 | Section 2223. Examinations. |
17 | The department or any of its authorized agents are authorized |
18 | to examine the books, papers and records of any taxpayer in |
19 | order to verify the accuracy and completeness of any return made |
20 | or, if no return was made, to ascertain and assess the tax |
21 | imposed by this article. The department may require the |
22 | preservation of all books, papers and records for any period |
23 | deemed proper by it but not to exceed three years from the end |
24 | of the calendar year to which the records relate. Every taxpayer |
25 | is required to give to the department or its agent the means, |
26 | facilities and opportunity for examinations and investigation |
27 | under this section. The department is further authorized to |
28 | examine any person, under oath, concerning the taxable severing |
29 | of natural gas by any taxpayer or concerning any other matter |
30 | relating to the enforcement or administration of this article, |
|
1 | and to this end may compel the production of books, papers and |
2 | records and the attendance of all persons whether as parties or |
3 | witnesses whom it believes to have knowledge of relevant |
4 | matters. The procedure for the hearings or examinations shall be |
5 | the same as that provided by the act of April 9, 1929 (P.L.343, |
6 | No. 176), known as The Fiscal Code. |
7 | Section 2224. Unauthorized disclosure. |
8 | Any information gained by the department as a result of any |
9 | return, examination, investigation, hearing or verification |
10 | required or authorized by this article shall be confidential |
11 | except for official purposes and except in accordance with |
12 | proper judicial order or as otherwise provided by law, and any |
13 | person unlawfully divulging the information shall be guilty of a |
14 | misdemeanor and shall, upon conviction, be sentenced to pay a |
15 | fine of not more than $1000 and costs of prosecution or to |
16 | imprisonment for not more than one year, or both. |
17 | Section 2225. Cooperation with other governments. |
18 | Notwithstanding the provisions of section 2217, the |
19 | department may permit the Commissioner of the Internal Revenue |
20 | Service of the United States, the proper officer of any state or |
21 | the authorized representative of either of them to inspect the |
22 | tax returns of any taxpayer, or may furnish to the commissioner |
23 | or officer or to either of their authorized representative an |
24 | abstract of the return of any taxpayer, or supply him with |
25 | information concerning any item contained in any return or |
26 | disclosed by the report of any examination or investigation of |
27 | the return of any taxpayer. This permission shall be granted |
28 | only if the laws of the United States or another state grant |
29 | substantially similar privileges to the proper officer of the |
30 | Commonwealth charged with the administration of this article. |
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1 | Section 2226. Bonds. |
2 | (a) Taxpayer to file bond.--The department may require a |
3 | nonresident natural person or any foreign corporation, |
4 | association, fiduciary or other entity, not authorized to do |
5 | business within this Commonwealth or not having an established |
6 | place of business in this Commonwealth and subject to the tax |
7 | imposed by section 2203, to file a bond issued by a surety |
8 | company authorized to do business in this Commonwealth and |
9 | approved by the Insurance Commissioner as to solvency and |
10 | responsibility, in amounts as it may fix, to secure the payment |
11 | of any tax or penalties due or which may become due from a |
12 | nonresident natural person, corporation, association, fiduciary |
13 | or other entity whenever it deems it necessary to protect the |
14 | revenues obtained under this article. The department may also |
15 | require a bond of a person petitioning the department for |
16 | reassessment in the case of any assessment over $500 or where, |
17 | in its opinion, the ultimate collection is in jeopardy. For a |
18 | period of three years, the department may require a bond of any |
19 | person who has, on three or more occasions within a 12-month |
20 | period, either filed a return or made payment to the department |
21 | more than 30 days late. In the event the department determines a |
22 | taxpayer is required to file a bond, it shall give notice to the |
23 | taxpayer specifying the amount of the bond required. The |
24 | taxpayer shall file the bond within five days after notice is |
25 | given by the department unless, within five days, the taxpayer |
26 | shall request in writing a hearing before the Secretary of |
27 | Revenue or his representative. At the hearing, the necessity, |
28 | propriety and amount of the bond shall be determined by the |
29 | secretary or the secretary's representative. The determination |
30 | shall be final and the taxpayer shall comply with it within 15 |
|
1 | days after notice is mailed to the taxpayer. |
2 | (b) Securities in lieu of bond.--In lieu of the bond |
3 | required by this section securities approved by the department |
4 | or cash in a prescribed amount may be deposited. The securities |
5 | or cash shall be kept in the custody of the department. The |
6 | department may apply the securities or cash to the tax imposed |
7 | by this article and interest or penalties due without notice to |
8 | the depositor. The securities may be sold by the department to |
9 | pay the tax and/or interest or penalties due at public or |
10 | private sale upon five days' written notice to the depositor. |
11 | (c) Failure to file bond.--The department may file a lien |
12 | under section 2216 against any taxpayer who fails to file a bond |
13 | when required to do so under this section. All funds received |
14 | upon execution of the judgment on the lien shall be refunded to |
15 | the taxpayer with 3% interest, should a final determination be |
16 | made that it does not owe any payment to the department. |
17 | Section 2227. Revenue deposits and distributions. |
18 | (a) Deposit.-- |
19 | (1) Eighty percent of the proceeds of the natural gas |
20 | severance tax, penalties and interest imposed by this |
21 | article, less the amounts appropriated under section 2228, |
22 | shall be deposited into the General Fund. |
23 | (2) Twelve percent of the proceeds of the natural gas |
24 | severance tax, penalties and interest imposed by this |
25 | article, less the amounts appropriated under section 2228, |
26 | shall be deposited into a restricted receipts account |
27 | established within the General Fund. |
28 | (3) Four percent of the proceeds of the natural gas |
29 | severance tax, penalties and interest imposed by this |
30 | article, less the amounts appropriated under section 2228, |
|
1 | shall be deposited into the Environmental Stewardship Fund. |
2 | (4) Two percent of the proceeds of the natural gas |
3 | severance tax, penalties and interest imposed by this |
4 | article, less the amounts appropriated under section 2228, |
5 | shall be deposited into the Conservation District Fund for |
6 | distribution to county conservation districts pursuant to |
7 | guidelines established by the State Conservation Commission. |
8 | (5) One-half percent of the proceeds of the natural gas |
9 | severance tax, penalties and interest imposed by this |
10 | article, less the amounts appropriated under section 2228, |
11 | shall be deposited into the Hazardous Sites Cleanup Fund. |
12 | (6) One-half percent of the proceeds of the natural gas |
13 | severance tax, penalties and interest imposed by this |
14 | article, less the amounts appropriated under section 2228, |
15 | shall be deposited into the Pennsylvania Game Commission. |
16 | (7) One-half percent of the proceeds of the natural gas |
17 | severance tax, penalties and interest imposed by this |
18 | article, less the amounts appropriated under section 2228, |
19 | shall be deposited into the Pennsylvania Fish and Boat |
20 | Commission. |
21 | (8) One-half percent of the proceeds of the natural gas |
22 | severance tax, penalties and interest imposed by this |
23 | article, less the amounts appropriated under section 2228, |
24 | shall be deposited into the Department of Public Welfare to |
25 | provide cash crisis grants to low-income households under the |
26 | Low Income Home Energy Assistance Program. |
27 | (b) Distributions.-- |
28 | (1) Fifty percent of the funds in the restricted |
29 | receipts account established under subsection (a)(2) shall be |
30 | distributed to municipalities where natural gas has been |
|
1 | severed and taxed under this article. The amount distributed |
2 | shall be determined on a pro rata basis as follows: The total |
3 | amount to be distributed under this paragraph is divided by |
4 | the total number of taxable gas units severed in this |
5 | Commonwealth; this quotient is then multiplied by the total |
6 | number of taxable gas units severed in the municipality. The |
7 | result equals the amount of money to be distributed to the |
8 | municipality, which shall be used solely for any of the |
9 | following: |
10 | (i) Reconstruction, maintenance and repair of |
11 | municipal roadways and bridges which the municipality has |
12 | determined have been or are being used extensively to |
13 | transport natural gas or equipment related to the |
14 | production thereof. |
15 | (ii) Parks and recreation. |
16 | (iii) Industrial and commercial development. |
17 | (iv) Preservation and improvement of municipal water |
18 | supplies. |
19 | (v) Maintenance and capital improvements to the |
20 | municipal waste and sewage systems. |
21 | (vi) Preservation and reclamation of the surface |
22 | waters of the municipality. |
23 | (vii) Other lawful purposes reasonably related to |
24 | the consequences of severing natural gas in the |
25 | municipality. |
26 | (2) Fifty percent of the funds in the restricted |
27 | receipts account established under subsection (a)(2) shall be |
28 | distributed to counties where natural gas has been severed |
29 | and taxed under this article. The amount distributed to a |
30 | county shall be determined on a pro rata basis as follows: |
|
1 | The total amount to be distributed under this paragraph is |
2 | divided by the total number of taxable gas units severed in |
3 | this Commonwealth; this quotient is then multiplied by the |
4 | total number of taxable gas units severed in the county. The |
5 | result equals the amount of money to be distributed to the |
6 | county, which shall be administered by a board comprised of |
7 | the chairperson of the board of county commissioners, a |
8 | representative from the natural gas producing municipalities |
9 | within the county and a county commissioner selected by the |
10 | representative of the natural gas producing municipalities. |
11 | The board shall give priority to the reconstruction, repair |
12 | and maintenance of county roadways and bridges determined by |
13 | the board to have been and are being used to transport |
14 | natural gas or equipment related to the production thereof |
15 | and may allocate the remainder to the county or its |
16 | municipalities for any of the purposes enumerated in |
17 | paragraph (1). A simple majority vote of all the members of |
18 | the board shall be required for any action under this |
19 | paragraph. |
20 | (3) The transfers in paragraphs (1) and (2) shall occur |
21 | semiannually. The transfer in April will be tax revenue from |
22 | gas severed from July to October. The transfer in October |
23 | will be tax revenue from gas severed from January to July. |
24 | Section 2228. Appropriation. |
25 | The amount of the proceeds from the tax imposed by this |
26 | article as shall be necessary for the payment of refunds, |
27 | enforcement or administration under this article, is hereby |
28 | appropriated for such purposes. |
29 | Section 3. This act shall take effect as follows: |
30 | (1) This section shall take effect immediately. |
|
1 | (2) The amendment of sections 1206, 1206.1 and 1216 of |
2 | the act shall take effect in 30 days. |
3 | (3) The amendment or addition of sections 204(10) and |
4 | 237(c) and (c.1) of the act shall take effect in 60 days. |
5 | (4) The remainder of this act shall take effect in 90 |
6 | days. |
|