AN ACT

 

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," in capital stock and franchise tax, further
11defining "processing."

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

14Section 1. The definition of "processing" in section 601(a)
15of the act of March 4, 1971 (P.L.6, No.2), known as the Tax 
16Reform Code of 1971, amended June 22, 2001 (P.L.353, No.23), is
17amended to read:

18Section 601. Definitions and Reports.--(a) The following
19words, terms and phrases when used in this Article VI shall have
20the meaning ascribed to them in this section, except where the
21context clearly indicates a different meaning:

22* * *

1"Processing." The following activities when engaged in as a
2business enterprise:

3(1) The filtering or heating of honey, the cooking or
4freezing of fruits, vegetables, mushrooms, fish, seafood, meats
5or poultry, when the person engaged in such business packages
6such property in sealed containers for wholesale distribution.

7(1.1) The processing of fruits or vegetables by cleaning,
8cutting, coring, peeling or chopping and treating to preserve,
9sterilize or purify and substantially extend the useful shelf
10life of the fruits or vegetables, when the person engaged in
11such activity packages such property in sealed containers for
12wholesale distribution.

13(2) The scouring, carbonizing, cording, combing, throwing,
14twisting or winding of natural or synthetic fibers, or the
15spinning, bleaching, dyeing, printing or finishing of yarns or
16fabrics, when such activities are performed prior to sale to the
17ultimate consumer.

18(3) The electroplating, galvanizing, enameling, anodizing,
19coloring, finishing, impregnating or heat treating of metals or
20plastics for sale or in the process of manufacturing.

21(3.1) The blanking, shearing, leveling, slitting or burning
22of metals for sale to or use by a manufacturer or processor.

23(4) The rolling, drawing or extruding of ferrous and
24nonferrous metals.

25(5) The fabrication for sale of ornamental or structural
26metal or metal stairs, staircases, gratings, fire escapes or
27railings (not including fabrication work done at the
28construction site).

29(6) The preparation of animal feed or poultry feed for sale.

30(7) The production, processing and bottling of nonalcoholic

1beverages for wholesale distribution.

2(8) The slaughtering and dressing of animals for meat to be
3sold or to be used in preparing meat products for sale, and the
4preparation of meat products, including lard, tallow, grease,
5cooking and inedible oils for wholesale distribution.

6(9) The operation of a saw mill or planing mill for the
7production of lumber or lumber products for sale. The operation
8of a saw mill or planing mill begins with the unloading by the
9operator of the saw mill or planing mill of logs, timber,
10pulpwood or other forms of wood material to be used in the saw
11mill or planing mill.

12(10) The milling for sale of flour or meal from grains.

13(10.1) The aging, stripping, conditioning, crushing and
14blending of tobacco leaves for use as cigar filler or as
15components of smokeless tobacco products for sale to
16manufacturers of tobacco products.

17(11) The publishing of books, newspapers, magazines or other
18periodicals, printing and broadcasting radio and television
19programs by licensed commercial or educational stations.

20(12) The processing of used lubricating oils.

21(13) The blending, rectification or production by
22distillation or otherwise of alcohol or alcoholic liquors,
23except the distillation of alcohol from byproducts of winemaking
24for the sole purpose of fortifying wine.

25(14) The salvaging, recycling or reclaiming of used
26materials to be recycled into a manufacturing process.

27(15) The development or substantial modification of computer
28programs or software for sale to unrelated persons for their
29direct and independent use.

30(16) The cleaning and roasting and the blending, grinding or

1packaging for sale of coffee from green coffee beans or the
2production of coffee extract.

3(17) The refining, blasting, exploring, mining and quarrying
4for or otherwise extracting coal, limestone, sand, gravel or
5slag from the earth or from waste or stock piles or from pits or
6banks and the cleaning, crushing, grinding, pulverizing, sizing
7or screening of coal, limestone, sand, gravel or slag, including
8blast furnace slag.

9(18) The preparation of dry or liquid fertilizer for sale.

10(19) The production, processing and packaging of ice for
11wholesale distribution.

12* * *

13Section 2. This act shall take effect in 60 days.