H0377B2849A04949 JKL:DHB 12/07/07 #90 A04949
AMENDMENTS TO HOUSE BILL NO. 377
Sponsor: REPRESENTATIVE ELLIS
Printer's No. 2849
1 Amend Title, page 1, line 10, by inserting after
2 "penalties,""
3 further providing, in sales and use tax, for the
4 definition of "tangible personal property"; and
5 Amend Bill, page 1, lines 14 through 16, by striking out all
6 of said lines and inserting
7 Section 1. Section 201(m) of the act of March 4, 1971
8 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended May
9 24, 2000 (P.L.106, No.23), is amended to read:
10 Section 201. Definitions.--The following words, terms and
11 phrases when used in this Article II shall have the meaning
12 ascribed to them in this section, except where the context
13 clearly indicates a different meaning:
14 * * *
15 (m) "Tangible personal property."
16 (1) Corporeal personal property including, but not limited
17 to, goods, wares, merchandise, steam and natural and
18 manufactured and bottled gas for non-residential use,
19 electricity for non-residential use, prepaid telecommunications,
20 premium cable or premium video programming service, spirituous
21 or vinous liquor and malt or brewed beverages and soft drinks,
22 interstate telecommunications service originating or terminating
23 in the Commonwealth and charged to a service address in this
24 Commonwealth, intrastate telecommunications service with the
25 exception of (i) subscriber line charges and basic local
26 telephone service for residential use and (ii) charges for
27 telephone calls paid for by inserting money into a telephone
28 accepting direct deposits of money to operate, provided further,
29 the service address of any intrastate telecommunications service
30 is deemed to be within this Commonwealth or within a political
31 subdivision, regardless of how or where billed or paid. In the
32 case of any such interstate or intrastate telecommunications
33 service, any charge paid through a credit or payment mechanism
34 which does not relate to a service address, such as a bank,
35 travel, credit or debit card, but not including prepaid
36 telecommunications, is deemed attributable to the address of
37 origination of the telecommunications service. The term shall
38 not include computer software, other than prewritten computer
39 software delivered to the purchaser by tangible storage media.
1 (2) For the purposes of this clause, the following words and
2 phrases shall have the meanings given to them in this subclause:
3 "Computer software." A set of coded instructions designed to
4 cause a computer or automatic data processing equipment to
5 perform a task.
6 "Prewritten computer software." The term shall have the same
7 meaning as "computer software," including prewritten upgrades,
8 which is not designed and developed by the author or other
9 creator to the specifications of a specific purchaser. The
10 combining of two or more prewritten computer software programs
11 or prewritten portions of the program does not cause the
12 combination to be other than prewritten computer software. The
13 term includes software designed and developed by the author or
14 other creator to the specifications of a specific purchaser when
15 it is sold to a person other than the specific purchaser. Where
16 a person modifies or enhances computer software of which the
17 person is not the author or creator, the person shall be deemed
18 to be the author or creator only of the person's modifications
19 or enhancements. Prewritten computer software or a prewritten
20 portion of prewritten computer software that is modified or
21 enhanced to any degree, where the modification or enhancement is
22 designed and developed to the specifications of a specific
23 purchaser, remains prewritten computer software except that
24 where there is a reasonable, separately stated charge, invoice
25 or other statement of the price given to the purchaser for the
26 modification or enhancement, the modification or enhancement
27 shall not constitute prewritten computer software.
28 * * *
29 Section 1.1. The act is amended by adding a section to read:
30 Amend Sec. 2, page 2, line 27, by striking out "immediately"
31 and inserting
32 July 1, 2008
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