THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PICKETT, BAKER, BOBACK, BOYD, CAUSER, CLYMER, D. COSTA, DAY, DEASY, FLECK, GABLER, GEIST, GEORGE, GINGRICH, GODSHALL, GOODMAN, GROVE, HALUSKA, HARHART, HICKERNELL, KAUFFMAN, M.K. KELLER, KNOWLES, LONGIETTI, MARSICO, MASSER, MICOZZIE, MILLARD, MULLERY, MURT, MYERS, O'NEILL, PYLE, RAPP, READSHAW, REICHLEY, K. SMITH, STEVENSON, TALLMAN, TOEPEL, VULAKOVICH, OBERLANDER, KULA AND PETRARCA, FEBRUARY 8, 2011

REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 8, 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," in sales and use tax, further providing for

exemption certificates.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 237(c) of the act of March 4, 1971 (P.L.

6, No.2), known as the Tax Reform Code of 1971, amended July 1,

1985 (P.L.78, No.29), is amended to read:

Section 237.  Collection of Tax.--* * *

(c)  Exemption Certificates. If the tax does not apply to the

sale or lease of tangible personal property or services, the

purchaser or lessee shall furnish to the vendor a certificate

indicating that the sale is not legally subject to the tax. The

certificate shall be in substantially such form as the

department may, by regulation, prescribe. Where the tangible

personal property or service is of a type which is never subject

to the tax imposed or where the sale or lease is in interstate

commerce, such certificate need not be furnished. Where a series

of transactions are not subject to tax, a purchaser or user may

furnish the vendor with a single exemption certificate in

substantially such form and valid for such period of time as the

department may, by regulation, prescribe[.], provided that an

exemption certificate furnished to a volunteer firemen's

organization shall be considered permanent. The department shall

provide all school districts and intermediate units with a

permanent tax exemption number. An exemption certificate, which

is complete and regular and on its face discloses a valid basis

of exemption if taken in good faith, shall relieve the vendor

from the liability imposed by this section. An exemption

certificate accepted by a vendor from a natural person domiciled

within this Commonwealth or any association, fiduciary,

partnership, corporation or other entity, either authorized to

do business within this Commonwealth or having an established

place of business within this Commonwealth, in the ordinary

course of the vendor's business, which on its face discloses a

valid basis of exemption consistent with the activity of the

purchaser and character of the property or service being

purchased or which is provided to the vendor by a charitable,

religious, educational, volunteer firefighters' relief

association or volunteer firemen's organization and contains the

organization's charitable exemption number and which, in the

case of any purchase costing two hundred dollars ($200) or more,

is accompanied by a sworn declaration on a form to be provided

by the department of an intended usage of the property or

service which would render it nontaxable, shall be presumed to

be taken in good faith and the burden of proving otherwise shall

be on the Department of Revenue.

* * *

Section 2.  This act shall take effect immediately.