1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," further providing, in gross receipts tax, for the
11imposition of tax; and making a related repeal.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1.  Section 1101(a), (a.1) and (j) of the act of
15March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
161971, amended or added December 23, 2003 (P.L.250, No.46) and 
17October 9, 2009 (P.L.451, No.48), are amended to read:

18Section 1101.  Imposition of Tax.--(a)  General Rule.--Every
19pipeline company, conduit company, steamboat company, canal
20company, slack water navigation company, transportation company,
21and every other company, association, joint-stock association,

1or limited partnership, now or hereafter incorporated or
2organized by or under any law of this Commonwealth, or now or
3hereafter organized or incorporated by any other state or by the
4United States or any foreign government, and doing business in
5this Commonwealth, and every copartnership, person or persons
6owning, operating or leasing to or from another corporation,
7company, association, joint-stock association, limited
8partnership, copartnership, person or persons, any pipeline,
9conduit, steamboat, canal, slack water navigation, or other
10device for the transportation of freight, passengers, baggage,
11or oil, except motor vehicles and railroads, and every limited
12partnership, association, joint-stock association, corporation
13or company engaged in, or hereafter engaged in, the
14transportation of freight or oil within this State, and every
15telephone company , telegraph company or provider of mobile
16telecommunications services now or hereafter incorporated or
17organized by or under any law of this Commonwealth, or now or
18hereafter organized or incorporated by any other state or by the
19United States or any foreign government and doing business in
20this Commonwealth, and every limited partnership, association,
21joint-stock association, copartnership, person or persons,
22engaged in telephone or telegraph business or providing mobile
23telecommunications services in this Commonwealth, shall pay to
24the State Treasurer, through the Department of Revenue, a tax of
25forty-five mills with a surtax equal to five mills upon each
26dollar of the gross receipts of the corporation, company or
27association, limited partnership, joint-stock association,
28copartnership, person or persons, received from:

29(1)  passengers, baggage, oil and freight transported wholly
30within this State;

1(2)  telegraph or telephone messages transmitted wholly
2within this State and telegraph or telephone messages
3transmitted in interstate commerce after December 31, 2003, and 
4before January 1, 2013, where such messages originate or
5terminate in this State and the charges for such messages are
6billed to a service address in this State, except gross receipts
7derived from:

8(i)  the sales of access to the Internet, as set forth in
9Article II, made to the ultimate consumer; and

10(ii)  the sales for resale to persons, partnerships,
11associations, corporations or political subdivisions subject to
12the tax imposed by this article upon gross receipts derived from
13such resale of telecommunications services, including:

14(A)  telecommunications exchange access to interconnect with
15a local exchange carrier's network;

16(B)  network elements on an unbundled basis; and

17(C)  sales of telecommunications services to interconnect
18with providers of mobile telecommunications services; and

19(3)  mobile telecommunications services messages sourced to
20this Commonwealth after December 31, 2003, and before January 1, 
212013, based on the place of primary use standard set forth in
22the Mobile Telecommunications Sourcing Act (4 U.S.C. § 117),
23except gross receipts derived from:

24(i)  the sales of access to the Internet, as set forth in
25Article II, made to the ultimate consumer; and

26(ii)  the sales for resale to persons, partnerships,
27associations, corporations or political subdivisions subject to
28the tax imposed by this article upon gross receipts derived from
29such resale of mobile telecommunications services, including
30sales of mobile telecommunications services to interconnect with

1providers of telecommunications services.

2(a.1)  Credit.--Telegraph or telephone companies or providers
3of mobile telecommunications services that pay a gross receipts
4tax to another state on messages or services after December 31, 
52003, and before January 1, 2013, which are taxable under this
6article are entitled to a credit against the tax due under this
7article. The credit allowed with respect to the messages or
8services shall not exceed the tax under this article with
9respect to the messages or services.

10* * *

11(j)  Schedule for Estimated Payments.--

12(1)  For calendar year 2004, the following schedule applies
13to the payment of the tax under subsection(a)(3):

14(i)  Forty per cent of the estimated tax shall be due on
15March 15, 2004.

16(ii)  Forty per cent of the estimated tax shall be due on
17June 15, 2004.

18(iii)  Twenty per cent of the estimated tax shall be due on
19September 15, 2004.

20(2)  For calendar years after 2004, the payment of the
21estimated tax under subsection (a)(3) shall be due in accordance
22with section 3003.2.

23(3)  For calendar year 2009, the tax applicable to the
24payment of the tax under subsection (b.1) shall be due on March
2515, 2010.

26(4)  For calendar year 2010, payments of the estimated tax
27under subsection (b.1) shall be due on May 15, 2010. For
28calendar year 2011 [and each calendar year thereafter], the
29payment of the estimated tax under subsection (b.1) shall be due
30in accordance with section 3003.2.

1(5)  This subsection shall expire January 1, 2013.

2* * *

3Section 2.  Repeals are as follows:

4(1)  The General Assembly declares that the repeal under
5paragraph (2) is necessary to effectuate the purposes of this
6act.

7(2)  Section 33(12) of the act of December 23, 2003 (P.L.

8250, No.46), entitled "An act amending the act of March 4, 
91971 (P.L.6, No.2), entitled 'An act relating to tax reform
10and State taxation by codifying and enumerating certain
11subjects of taxation and imposing taxes thereon; providing
12procedures for the payment, collection, administration and
13enforcement thereof; providing for tax credits in certain
14cases; conferring powers and imposing duties upon the
15Department of Revenue, certain employers, fiduciaries,
16individuals, persons, corporations and other entities;
17prescribing crimes, offenses and penalties,' further
18providing, in sales and use tax, for definitions, for
19exclusions, for credits, for licenses and for transfers to
20Public Transportation Assistance Fund; further providing, in
21personal income tax, for definitions, for imposition, for
22special tax provisions for poverty, for returns and liability
23and for returns and records; further providing, in corporate
24net income tax, for definitions and for interests in
25unincorporated entities; providing, in corporate net income
26tax, for additional withholding requirements; further
27providing, in capital stock franchise tax, for definitions
28and reports, for imposition and for expiration; further
29providing, in utilities gross receipts tax, for imposition;
30further providing, in public utility realty tax, for

1surcharges; providing, in public utility realty tax, for
2additional tax; further providing, in cigarette tax, for
3incidence and rate of tax, for floor tax, for stamp to
4evidence the tax and for commissions on sales; establishing,
5in relation to cigarette tax, the Health Care Provider
6Retention Account; further providing, in research and
7development tax credit, for carryover, for limitations and
8for reports; further providing, in malt beverage tax, for
9limited tax credits; further providing, in inheritance tax,
10for definitions, for exempt transfers, for estate tax and for
11estate tax returns; further providing for the Public
12Transportation Assistance Fund and providing for its
13administration; further providing for estimated tax and for
14underpayment of estimated tax; providing for authority to
15attach wages; and repealing provisions relating to the Public
16Transportation Assistance Fund," is repealed.

17Section 3.  This act shall take effect immediately.