PRINTER'S NO. 485
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
464
Session of
2017
INTRODUCED BY DeLUCA, READSHAW, ENGLISH, NEILSON AND D. COSTA,
FEBRUARY 13, 2017
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 13, 2017
AN ACT
Providing for a sales and use tax on political advertisements;
and making an inconsistent repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Political
Advertising Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Revenue of the Commonwealth.
"Media company." An entity which broadcasts, publishes or
otherwise communicates a political advertisement for a fee.
"Political advertisement." A communication by means of any
broadcast, cable or satellite communication, newspaper,
magazine, outdoor advertising facility, mass mailing or
telephone bank to the general public which advocates a candidate
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
for public office or a political party or any other form of
advertisement whose primary function is to disseminate a
political message.
"Sale at retail." A transfer for consideration of the
ownership, custody or possession of a political advertisement,
including the grant of a license to use or consume the
advertisement, whether the transfer is absolute or conditional
and regardless of how the transfer is made.
"Use." The exercise of any right or power incidental to the
ownership, custody or possession of a political advertisement,
including transportation, storage or consumption. The term shall
include the printing of a political advertisement when a media
company furnishes, either directly or indirectly, the articles
used in printing.
Section 3. Imposition of tax.
(a) Sales tax.--There is imposed upon each separate sale at
retail of a political advertisement in this Commonwealth a tax
of 6% of the purchase price, which shall be collected by a media
company from any purchaser and shall be paid over to the
Commonwealth as provided in this act.
(b) Use tax.--There is imposed on the use within this
Commonwealth of a political advertisement purchased at retail a
tax of 6% of the purchase price, which shall be paid to the
Commonwealth by the person who makes the use, except that the
tax shall not be paid to the Commonwealth by that person where
the tax imposed under subsection (a) is or has been paid or the
tax imposed under this subsection is paid by the media company
with regard to the use.
Section 4. Credit for sales and use taxes paid.
A purchaser may claim a credit for taxes paid under Article
20170HB0464PN0485 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
II of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
Section 5. Administration and enforcement.
Parts III, IV, VI and VII of Article II of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are
incorporated by reference into this act insofar as they are
applicable to the tax imposed by this act.
Section 6. Deposit of money.
Money collected from the tax imposed under this act, and
interest earned on the money, shall be deposited into the
General Fund.
Section 7. Rules and regulations.
The department may promulgate rules and regulations for the
implementation and administration of this act.
Section 8. Repeal.
Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) Section 204(35) of the act of March 4, 1971 (P.L.6,
No.2), known as the Tax Reform Code of 1971, is repealed to
the extent it is inconsistent with this act.
Section 9. Effective date.
This act shall take effect in 60 days.
20170HB0464PN0485 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23