THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SIPTROTH, BEYER, BRENNAN, CARROLL, D. COSTA, DALLY, FAIRCHILD, GEIST, GRUCELA, HESS, KOTIK, MANN, MOUL, MURT, MUSTIO, READSHAW, REICHLEY, SCAVELLO, THOMAS, WALKO, EVERETT AND MIRABITO, MARCH 6, 2009

AS REPORTED FROM COMMITTEE ON TRANSPORTATION, HOUSE OF REPRESENTATIVES, AS AMENDED, JULY 8, 2009   

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," in sales and use tax, further providing for

exclusions from tax; and providing for reports concerning

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exclusions from tax, for reimbursement and for expiration.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 204 of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971, is amended by

adding clauses A CLAUSE to read:

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Section 204.  Exclusions from Tax.--The tax imposed by

section 202 shall not be imposed upon any of the following:

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(67)  The sale at retail of repair or replacement parts,

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including the installation of those parts, exclusively for use

in aircraft or in overhauling or rebuilding of aircraft or

aircraft components.

(68)  The sale or lease at retail of aircraft. or use of

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aircraft parts, including the maintenance and installation of

such parts, exclusively in repair, maintenance or rebuilding of

aircraft or in overhauling aircraft components. For purposes of

this clause, the term "aircraft" shall include a fixed-wing

aircraft, helicopter, powered aircraft, tilt-rotor or tilt-wing

aircraft, glider or unmanned aircraft.

Section 2.  This act shall take effect immediately.

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Section 2.  The act is amended by adding sections to read:

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Section 204.1.  Reports Concerning Exclusions from Tax.--The

Department of Revenue in conjunction with the Department of

Community and Economic Development and the Department of

Transportation shall submit an annual report to the General

Assembly no later than September 1 following the first fiscal

years for which section 204(67) is in effect and continue

submission of a report for five succeeding fiscal years. The

report shall review and analyze all statistical data available

for purposes of determining the economic and revenue impact of

the sales and use tax exemption under section 204(67). The

report shall include, but not be limited to, an analysis of any

increase or decrease in aviation-related employment, airplane

maintenance and hangaring in this Commonwealth. The Department

of Community and Economic Development shall post a copy of the

report required by this section on its Internet website. The

report shall remain on the Department of Community and Economic

Development's Internet website for a period of one year, or

until a successive report is issued.

Section 204.2.  Reimbursement.--Entities seeking exemptions

under section 204(67) shall evidence proof of voluntary or

nonvoluntary remittance of such Pennsylvania Sales and Use Tax

to the department.

Section 3.  The sales and use tax exemptions under section

204(67) shall expire on December 1, 2015.

Section 4.  This act shall take effect July 1, 2010.