PRIOR PRINTER'S NO. 568
PRINTER'S NO. 1563
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
542
Session of
2017
INTRODUCED BY THOMAS AND D. COSTA, FEBRUARY 17, 2017
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, APRIL 25, 2017
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, providing for remote sales
tax notice.
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 TAX FOR EDUCATION, FURTHER PROVIDING FOR
DEFINITIONS AND PROVIDING FOR NOTICE REQUIREMENTS FOR REMOTE
SELLERS.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding a section to
read:
<--
<--
<--
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
Section 279. Remote Sales Tax Notice.--(a) A seller in this
Commonwealth or remote seller shall conspicuously provide the
following notice to a purchaser in this Commonwealth upon each
separate sale at retail of tangible personal property or
services via an Internet website operated by the seller or
remote seller:
"Unless you paid Pennsylvania sales tax on this purchase,
you may owe a Pennsylvania use tax on this purchase based
on the total sales price of the purchase in accordance
with the act of March 4, 1971 (P.L.6, No.2), known as the
Tax Reform Code of 1971. Visit www.revenue.state.pa.us
for more information. If you owe a Pennsylvania use tax
on this purchase, you must report and remit the tax on
your Pennsylvania income tax form."
(b) The department shall impose a fine of not less than five
dollars ($5) on a seller or remote seller for each sale in which
the seller or remote seller is in violation of this section.
(c) This section shall apply to sales made on or after the
effective date of this section.
SECTION 1. SECTION 201 OF THE ACT OF MARCH 4, 1971 (P.L.6,
NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED BY
ADDING A CLAUSE 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:
* * *
(EEE) "REMOTE SELLER." A VENDOR LOCATED OUTSIDE THIS
COMMONWEALTH THAT SELLS TANGIBLE PERSONAL PROPERTY OR SERVICES
THAT ARE NOT EXEMPT FROM THE TAX IMPOSED UNDER THIS ARTICLE TO A
20170HB0542PN1563 - 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
PURCHASER IN THIS COMMONWEALTH BUT DOES NOT COLLECT THE TAX.
SECTION 2. THE ACT IS AMENDED BY ADDING A SECTION TO READ:
SECTION 248.7. NOTICE REQUIREMENTS FOR REMOTE SELLERS.--(A)
A REMOTE SELLER MAKING A SALE IN THIS COMMONWEALTH SHALL NOTIFY
THE PURCHASER THAT SALES OR USE TAX IS DUE ON THE NONEXEMPT
PURCHASE AND THAT THE COMMONWEALTH REQUIRES THE PURCHASER TO PAY
THE TAX DUE ON THE PURCHASER'S TAX RETURN. FAILURE TO PROVIDE
THE NOTICE REQUIRED UNDER THIS SUBSECTION SHALL SUBJECT THE
REMOTE SELLER TO A PENALTY OF FIVE DOLLARS ($5.00) FOR EACH
FAILURE, UNLESS THE REMOTE SELLER SHOWS REASONABLE CAUSE FOR THE
FAILURE.
(B) ON OR BEFORE JANUARY 31 OF EACH YEAR, A REMOTE SELLER
SHALL SEND NOTICE TO EACH PURCHASER IN THIS COMMONWEALTH WHO
MADE FIVE HUNDRED DOLLARS ($500.00) OR MORE OF PURCHASES FROM
THE REMOTE SELLER IN THE PREVIOUS CALENDAR YEAR. THE NOTICE
SHALL INCLUDE ALL OF THE FOLLOWING:
(1) THE TOTAL AMOUNT PAID BY THE PURCHASER FOR PURCHASES
MADE FROM THE REMOTE SELLER IN THE PREVIOUS CALENDAR YEAR.
(2) A STATEMENT THAT THE COMMONWEALTH REQUIRES A SALES OR
USE TAX RETURN TO BE FILED AND SALES OR USE TAX TO BE PAID ON
NONEXEMPT PURCHASES MADE BY THE PURCHASER FROM THE REMOTE
SELLER.
(3) ANY INFORMATION REQUIRED BY THE DEPARTMENT BY RULE.
THE NOTICE SHALL BE SENT SEPARATELY BY FIRST-CLASS MAIL OR
ELECTRONIC MAIL AND MAY NOT BE INCLUDED WITH ANY OTHER
SHIPMENTS. THE NOTICE SHALL INCLUDE THE NAME OF THE REMOTE
SELLER AND THE WORDS "IMPORTANT TAX DOCUMENT ENCLOSED" ON THE
EXTERIOR OF THE MAILING. FAILURE TO SEND THE NOTICE REQUIRED
UNDER THIS SUBSECTION SHALL SUBJECT THE REMOTE SELLER TO A
PENALTY OF TEN DOLLARS ($10.00) FOR EACH FAILURE, UNLESS THE
20170HB0542PN1563 - 3 -
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
REMOTE SELLER SHOWS REASONABLE CAUSE FOR THE FAILURE.
(C) THE DEPARTMENT IS AUTHORIZED TO ADOPT RULES AND
PROCEDURES AND CREATE FORMS NECESSARY TO IMPLEMENT THIS SECTION.
Section 2 3. This act shall take effect in 60 days.
20170HB0542PN1563 - 4 -
<--
1
2
3
4