Regular Session 2015-2016 Senate Bill 0139 P.N. 0086

PRINTER'S NO. 86

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

139

Session of

2015

INTRODUCED BY GREENLEAF, BREWSTER, TARTAGLIONE, VULAKOVICH,

HUGHES, RAFFERTY AND SCARNATI, JANUARY 14, 2015

REFERRED TO FINANCE, JANUARY 14, 2015

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

definitions.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 201(k)(8) of the act of March 4, 1971

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

April 23, 1998 (P.L.239, No.45), is amended and the section is

amended by adding clauses to read:

Section 201. Definitions.--The following words, terms and

phrases when used in this Article II shall have the meaning

ascribed to them in this section, except where the context

clearly indicates a different meaning:

* * *

(k) "Sale at retail."

* * *

(8) Any retention of possession, custody or a license to use

or consume tangible personal property or any further obtaining

of services described in subclauses (2), (3) and (4) of this

clause pursuant to a rental or service contract or other

arrangement (other than as security).

The term "sale at retail" shall not include (i) any such

transfer of tangible personal property or rendition of services

for the purpose of resale, including resale of items purchased

for resale by schools, school-related organizations and

nonprofit associations supporting or sponsoring sports programs,

or (ii) such rendition of services or the transfer of tangible

personal property including, but not limited to, machinery and

equipment and parts therefor and supplies to be used or consumed

by the purchaser directly in the operations of--

(A) The manufacture of tangible personal property.

(B) Farming, dairying, agriculture, horticulture or

floriculture when engaged in as a business enterprise. The term

"farming" shall include the propagation and raising of ranch

raised fur-bearing animals and the propagation of game birds for

commercial purposes by holders of propagation permits issued

under 34 Pa.C.S. (relating to game) and the propagation and

raising of horses to be used exclusively for commercial racing

activities.

utility service, or in constructing, reconstructing, remodeling,

repairing or maintaining the facilities which are directly used

in producing, delivering or rendering such service.

(D) Processing as defined in clause (d) of this section.

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The exclusions provided in paragraphs (A), (B), (C) and (D)

shall not apply to any vehicle required to be registered under

The Vehicle Code, except those vehicles used directly by a

public utility engaged in business as a common carrier; to

maintenance facilities; or to materials, supplies or equipment

to be used or consumed in the construction, reconstruction,

remodeling, repair or maintenance of real estate other than

directly used machinery, equipment, parts or foundations

therefor that may be affixed to such real estate.

The exclusions provided in paragraphs (A), (B), (C) and (D)

shall not apply to tangible personal property or services to be

used or consumed in managerial sales or other nonoperational

activities, nor to the purchase or use of tangible personal

property or services by any person other than the person

directly using the same in the operations described in

paragraphs (A), (B), (C) and (D) herein.

The exclusion provided in paragraph (C) shall not apply to

(i) construction materials, supplies or equipment used to

construct, reconstruct, remodel, repair or maintain facilities

not used directly by the purchaser in the production, delivering

or rendition of public utility service, (ii) construction

materials, supplies or equipment used to construct, reconstruct,

remodel, repair or maintain a building, road or similar

structure, or (iii) tools and equipment used but not installed

in the maintenance of facilities used directly in the

production, delivering or rendition of a public utility service.

The exclusions provided in paragraphs (A), (B), (C) and (D)

shall not apply to the services enumerated in clauses (k)(11)

through (18) and (w) through (kk), except that the exclusion

provided in this subclause for farming, dairying and agriculture

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shall apply to the service enumerated in clause (z).

* * *

(eee) "Nonprofit association." An entity which is organized

as a nonprofit corporation or nonprofit unincorporated

association under the laws of this Commonwealth or the United

States or any entity which is authorized to do business in this

Commonwealth as a nonprofit corporation or unincorporated

association under the laws of this Commonwealth, including, but

not limited to, youth or athletic associations, volunteer fire,

ambulance, religious, charitable, fraternal, veterans, civic,

county fair or agricultural associations, or any separately

chartered auxiliary of the foregoing, if organized and operated

on a nonprofit basis.

(fff) "Sports program." Baseball (including softball),

football, basketball, soccer and any other competitive sport

formally recognized as a sport by the United States Olympic

Committee as specified by and under the jurisdiction of the

Amateur Sports Act of 1978 (Public Law 95-606, 36 U.S.C. §

220501 et seq.), the Amateur Athletic Union or the National

Collegiate Athletic Association. The term shall be limited to a

program or that portion of a program that is organized for

recreational purposes and whose activities are substantially for

such purposes and which is primarily for participants who are

eighteen years of age or younger or whose nineteenth birthday

occurs during the year of participation or the competitive

season, whichever is longer. There shall be, however, no age

limitation for programs operated for persons with disabilities.

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

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