THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SCAVELLO, BAKER, BARRAR, CALTAGIRONE, CAUSER, CLYMER, CUTLER, DeLUCA, DENLINGER, GEIST, GIBBONS, GILLESPIE, GOODMAN, GROVE, HAHN, HESS, HORNAMAN, HUTCHINSON, KAUFFMAN, KILLION, LONGIETTI, MAJOR, METCALFE, MILLARD, MOUL, OBERLANDER, O'NEILL, PETRARCA, PYLE, RAPP, SWANGER, TALLMAN, WATSON AND PICKETT, JANUARY 25, 2011

REFERRED TO COMMITTEE ON FINANCE, JANUARY 25, 2011  

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," further providing, in gross receipts tax, for the

imposition of tax; and making a related repeal.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 1101(a), (a.1) and (j) of the act of

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971, amended or added December 23, 2003 (P.L.250, No.46) and

October 9, 2009 (P.L.451, No.48), are amended to read:

Section 1101.  Imposition of Tax.--(a)  General Rule.--Every

pipeline company, conduit company, steamboat company, canal

company, slack water navigation company, transportation company,

and every other company, association, joint-stock association,

or limited partnership, now or hereafter incorporated or

organized by or under any law of this Commonwealth, or now or

hereafter organized or incorporated by any other state or by the

United States or any foreign government, and doing business in

this Commonwealth, and every copartnership, person or persons

owning, operating or leasing to or from another corporation,

company, association, joint-stock association, limited

partnership, copartnership, person or persons, any pipeline,

conduit, steamboat, canal, slack water navigation, or other

device for the transportation of freight, passengers, baggage,

or oil, except motor vehicles and railroads, and every limited

partnership, association, joint-stock association, corporation

or company engaged in, or hereafter engaged in, the

transportation of freight or oil within this State, and every

telephone company , telegraph company or provider of mobile

telecommunications services now or hereafter incorporated or

organized by or under any law of this Commonwealth, or now or

hereafter organized or incorporated by any other state or by the

United States or any foreign government and doing business in

this Commonwealth, and every limited partnership, association,

joint-stock association, copartnership, person or persons,

engaged in telephone or telegraph business or providing mobile

telecommunications services in this Commonwealth, shall pay to

the State Treasurer, through the Department of Revenue, a tax of

forty-five mills with a surtax equal to five mills upon each

dollar of the gross receipts of the corporation, company or

association, limited partnership, joint-stock association,

copartnership, person or persons, received from:

(1)  passengers, baggage, oil and freight transported wholly

within this State;

(2)  telegraph or telephone messages transmitted wholly

within this State and telegraph or telephone messages

transmitted in interstate commerce after December 31, 2003, and

before January 1, 2012, where such messages originate or

terminate in this State and the charges for such messages are

billed to a service address in this State, except gross receipts

derived from:

(i)  the sales of access to the Internet, as set forth in

Article II, made to the ultimate consumer; and

(ii)  the sales for resale to persons, partnerships,

associations, corporations or political subdivisions subject to

the tax imposed by this article upon gross receipts derived from

such resale of telecommunications services, including:

(A)  telecommunications exchange access to interconnect with

a local exchange carrier's network;

(B)  network elements on an unbundled basis; and

(C)  sales of telecommunications services to interconnect

with providers of mobile telecommunications services; and

(3)  mobile telecommunications services messages sourced to

this Commonwealth after December 31, 2003, and before January 1,

2012, based on the place of primary use standard set forth in

the Mobile Telecommunications Sourcing Act (4 U.S.C. § 117),

except gross receipts derived from:

(i)  the sales of access to the Internet, as set forth in

Article II, made to the ultimate consumer; and

(ii)  the sales for resale to persons, partnerships,

associations, corporations or political subdivisions subject to

the tax imposed by this article upon gross receipts derived from

such resale of mobile telecommunications services, including

sales of mobile telecommunications services to interconnect with

providers of telecommunications services.

(a.1)  Credit.--Telegraph or telephone companies or providers

of mobile telecommunications services that pay a gross receipts

tax to another state on messages or services after December 31,

2003, and before January 1, 2012, which are taxable under this

article are entitled to a credit against the tax due under this

article. The credit allowed with respect to the messages or

services shall not exceed the tax under this article with

respect to the messages or services.

* * *

(j)  Schedule for Estimated Payments.--

(1)  For calendar year 2004, the following schedule applies

to the payment of the tax under subsection(a)(3):

(i)  Forty per cent of the estimated tax shall be due on

March 15, 2004.

(ii)  Forty per cent of the estimated tax shall be due on

June 15, 2004.

(iii)  Twenty per cent of the estimated tax shall be due on

September 15, 2004.

(2)  For calendar years after 2004, the payment of the

estimated tax under subsection (a)(3) shall be due in accordance

with section 3003.2.

(3)  For calendar year 2009, the tax applicable to the

payment of the tax under subsection (b.1) shall be due on March

15, 2010.

(4)  For calendar year 2010, payments of the estimated tax

under subsection (b.1) shall be due on May 15, 2010. For

calendar year 2011 [and each calendar year thereafter], the

payment of the estimated tax under subsection (b.1) shall be due

in accordance with section 3003.2.

(5)  This subsection shall expire January 1, 2012.

* * *

Section 2.  Repeals are as follows:

(1)  The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the purposes of this

act.

(2)  Section 33(12) of the act of December 23, 2003 (P.L.

250, No.46), entitled "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,' further

providing, in sales and use tax, for definitions, for

exclusions, for credits, for licenses and for transfers to

Public Transportation Assistance Fund; further providing, in

personal income tax, for definitions, for imposition, for

special tax provisions for poverty, for returns and liability

and for returns and records; further providing, in corporate

net income tax, for definitions and for interests in

unincorporated entities; providing, in corporate net income

tax, for additional withholding requirements; further

providing, in capital stock franchise tax, for definitions

and reports, for imposition and for expiration; further

providing, in utilities gross receipts tax, for imposition;

further providing, in public utility realty tax, for

surcharges; providing, in public utility realty tax, for

additional tax; further providing, in cigarette tax, for

incidence and rate of tax, for floor tax, for stamp to

evidence the tax and for commissions on sales; establishing,

in relation to cigarette tax, the Health Care Provider

Retention Account; further providing, in research and

development tax credit, for carryover, for limitations and

for reports; further providing, in malt beverage tax, for

limited tax credits; further providing, in inheritance tax,

for definitions, for exempt transfers, for estate tax and for

estate tax returns; further providing for the Public

Transportation Assistance Fund and providing for its

administration; further providing for estimated tax and for

underpayment of estimated tax; providing for authority to

attach wages; and repealing provisions relating to the Public

Transportation Assistance Fund," is repealed.

Section 3.  This act shall take effect immediately.