PRINTER'S NO. 108
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
109
Session of
2019
INTRODUCED BY QUINN, HILL-EVANS AND NEILSON, JANUARY 28, 2019
REFERRED TO COMMITTEE ON FINANCE, JANUARY 28, 2019
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," providing for video game tax, establishing the
Digital Protection for School Safety Account and imposing
penalties.
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 an article to
read:
ARTICLE XXII
VIDEO GAME TAX
Section 2201. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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"Account." The Digital Protection for School Safety Account
established under section 2203(a).
"Adults only rating." Content suitable only for an
individual 18 years of age or older that may include prolonged
scenes of intense violence, graphic sexual content or gambling
with real currency.
"Board." The Entertainment Software Rating Board established
by the Entertainment Software Association.
"Department." The Department of Revenue of the Commonwealth.
"Mature rating." Content suitable only for an individual 17
years of age or older that may contain intense violence, blood
and gore, sexual content or strong language.
"Video game." An electronic game that involves interaction
with a user interface to generate visual feedback on a video
device. The term does not include a game that contains obscene
material or performances as defined in 18 Pa.C.S. ยง 5903(b)
(relating to obscene and other sexual materials and
performances) or a game designed primarily for private,
political, industrial, corporate or institutional purposes.
Section 2202. Imposition of tax on certain video games.
(a) Imposition.--A tax is imposed on each separate sale at
retail of video games that have an adults only rating or mature
rating according to the rating system established by the board.
(b) Rate.--The tax imposed under subsection (a) shall be
imposed and collected at the rate 10% of the purchase price per
video game sold. The additional rate of tax shall be in addition
to any applicable State and local sales taxes.
(c) Remittance.-- The tax imposed under subsection (a) shall
be collected by the retailer from the purchaser and remitted to
the department. The secretary of the department shall deposit
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the money remitted under this subsection into the General Fund.
Section 2203. Digital Protection for School Safety Account.
(a) Establishment.-- The Digital Protection for School Safety
Account is established as a restricted revenue account within
the General Fund. Money in the account is appropriated to the
department on a continuing basis for the purpose of enhancing
school safety measures implemented by school districts as
provided by the laws of this Commonwealth.
(b) Transfers.--The department shall determine the amount of
money remitted under section 2202(c) for each fiscal year and
provide notice of the amount to the State Treasurer on an annual
basis. Upon receipt of the notice under this subsection, the
State Treasurer shall transfer the amount of money remitted
under section 2202(c) to the account.
Section 2204. Penalties.
(a) Collection or remittance.--A retailer who fails to
collect or remit the tax imposed under section 2202(a) shall be
liable for a penalty equal to one-half of the total amount of
the tax.
(b) Payment.--A retailer shall pay the penalty imposed under
subsection (a) upon notice and demand by the department. The
department shall assess and collect the penalty in the same
manner as a tax imposed under section 2202(a).
Section 2. This act shall take effect in 60 days.
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