H1189B2355A03448 KMF:JMM 09/23/13 #90 A03448
AMENDMENTS TO HOUSE BILL NO. 1189
Sponsor: REPRESENTATIVE COX
Printer's No. 2355
3Providing for tax levies and information related to taxes;
4authorizing the imposition of a personal income tax or an
5earned income tax by a school district subject to voter
6approval; providing for imposition of and exclusions from a
7sales and use tax for the stabilization of education funding,
8for increase to the personal income tax, for certain
9licenses, for hotel occupancy tax, for procedure and
10administration of the tax, for expiration of authority to
11issue certain debt and for reporting by local government
12units of debt outstanding; establishing the Education
13Stabilization Fund; providing for disbursements from this
14fund; and repealing certain provisions of the Public School
15Code of 1949 and sales and use tax provisions of the Tax
16Reform Code of 1971.
17TABLE OF CONTENTS
18Chapter 1. Preliminary Provisions
19Section 101. Short title.
20Section 102. Definitions.
21Chapter 3. Taxation by School Districts
22Section 301. Scope.
23Section 302. Definitions.
24Section 303. Limitation.
25Section 304. Preemption.
26Section 305. General tax authorization.
27Section 306. Referendum.
28Section 307. Continuity of tax.
29Section 308. Collections.
30Section 309. Credits.
31Section 310. Exemption and special provisions.
32Section 311. Regulations.
33Chapter 4. Education Tax
34Section 401. Education tax.
37Subchapter A. Preliminary Provisions
38Section 701. Scope.
1Section 701.1. Definitions.
2Subchapter B. Sales and Use Tax
3Section 702. Imposition of tax.
4Section 703. Computation of tax.
5Subchapter C. Exclusions from Sales and Use Tax
6Section 704. Exclusions from tax.
7Section 705. Alternate imposition of tax.
8Section 706. Credit against tax.
9Subchapter D. Licenses
10Section 708. Licenses.
11Subchapter E. Hotel Occupancy Tax
12Section 709. Definitions.
13Section 710. Imposition of tax.
14Section 711. Seasonal tax returns.
15Subchapter F. Procedure and Administration
16Section 715. Persons required to make returns.
17Section 716. Form of returns.
18Section 717. Time for filing returns.
19Section 718. Extension of time for filing returns.
20Section 719. Place for filing returns.
23Section 721. Payment of tax.
24Section 722. Time of payment.
25Section 723. Other times for payment.
26Section 724. Place for payment.
27Section 725. Tax held in trust for Commonwealth.
28Section 726. Local receivers of use tax.
29Section 727. Discount.
30Section 728. (Reserved).
31Section 729. (Reserved).
32Section 730. Assessment.
33Section 731. Mode and time of assessment.
34Section 732. Reassessment.
35Section 733. (Reserved).
36Section 734. Review by Board of Finance and Revenue.
37Section 735. (Reserved).
38Section 736. Burden of proof.
39Section 737. Collection of tax.
42Section 739. Precollection of tax.
43Section 740. Bulk and auction sales.
46Section 742. Lien for taxes.
47Section 743. Suit for taxes.
48Section 744. Tax suit comity.
49Section 745. Service.
50Section 746. Collection and payment of tax on credit sales.
51Section 747. Prepayment of tax.
1Section 747.1. Refund of sales tax attributed to bad debt.
2Section 748. Registration of transient vendors.
3Section 748.1. Bond.
4Section 748.2. Notification to department.
5Section 748.3. Seizure of property.
6Section 748.4. Fines.
7Section 748.5. Transient vendors subject to chapter.
8Section 748.6. Promoters.
9Section 749. (Reserved).
10Section 750. (Reserved).
11Section 751. (Reserved).
12Section 752. Refunds.
13Section 753. Refund petition.
14Section 754. (Reserved).
15Section 755. (Reserved).
18Section 757. (Reserved).
19Section 758. Limitation on assessment and collection.
20Section 759. Failure to file return.
21Section 760. False or fraudulent return.
22Section 761. Extension of limitation period.
23Section 762. (Reserved).
24Section 763. (Reserved).
25Section 764. (Reserved).
26Section 765. Interest.
27Section 766. Additions to tax.
28Section 767. Penalties.
29Section 768. Criminal offenses.
30Section 769. Abatement of additions or penalties.
31Section 770. Rules and regulations.
32Section 771. Keeping of records.
33Section 771.1. Reports and records of promoters.
34Section 772. Examinations.
35Section 773. Records and examinations of delivery agents.
36Section 774. Unauthorized disclosure.
37Section 775. Cooperation with other governments.
38Section 776. Interstate compacts.
39Section 777. Bonds.
40Subchapter G. Funding Provisions
41Section 780. (Reserved).
42Section 781. Appropriation for refunds.
43Section 781.1. Construction.
44Section 782. Transfers to Education Stabilization Fund.
45Chapter 9. (Reserved)
46Chapter 11. Limitations on School District Taxation
49Section 1102. Transitional taxes.
3Chapter 12. Indebtedness
4Section 1201. Expiration of authority to issue debt.
7Chapter 13. Funding Provisions
8Section 1301. Definitions.
9Section 1302. Education Stabilization Fund.
12Chapter 15. Miscellaneous Provisions
13Section 1501. Transitional provision.
14Section 1502. Construction.
15Section 1503. Severability.
16Section 1504. Repeals.
17Section 1505. Applicability.
18Section 1506. Effective date.
24Section 101. Short title.
27Section 102. Definitions.
31"Department." The Department of Revenue of the Commonwealth.
37"Governing body." The board of school directors of a school
38district, except that the term shall mean the city council of a
39city of the first class for purposes of the levy and collection
40of any tax in a school district of the first class.
7"Secretary." The Secretary of Revenue of the Commonwealth.
11Taxation by School Districts
12Section 301. Scope.
13This chapter authorizes school districts to levy, assess and
14collect a tax on personal income or a tax on earned income and
15net profits as a means of abolishing property taxation by the
17Section 302. Definitions.
22Section 303. Limitation.
25Section 304. Preemption.
26No act of the General Assembly shall vacate or preempt any
27resolution passed or adopted under the authority of this
28chapter, or any other act, providing authority for the
29imposition of a tax by a school district, unless the act of the
30General Assembly expressly vacates or preempts the authority to
31pass or adopt resolutions.
32Section 305. General tax authorization.
33(a) General rule.--A board of school directors may, by
34resolution, levy, assess and collect or provide for the levying,
35assessment and collection of a tax on personal income or a tax
36on earned income and net profits for general revenue purposes.
37(b) Personal income tax.--
43(3) If a board of school directors seeks to impose a
44personal income tax under this subsection and the referendum
45under section 306 is approved by the electorate, the board of
46school directors shall have no authority to impose an earned
47income and net profits tax under subsection (c) or any other
4(i) Notwithstanding the provisions of section 353(f)
5of the Tax Reform Code of 1971, the Department of Revenue
6may permit the proper officer or an authorized agent of a
7school district imposing a personal income tax pursuant
8to this chapter to inspect the tax returns of any
9taxpayer of the school district or may furnish to the
10officer or an authorized agent an abstract of the return
11of income of any current or former resident of the school
12district or supply information concerning any item of
13income contained in any tax return. The officer or
14authorized agent of the school district imposing a tax
15under this chapter shall be furnished the requested
16information upon payment to the Department of Revenue of
17the actual cost of providing the requested information.
22(I) Disclose to any other individual or
23entity the amount or source of income, profits,
24losses, expenditures or any particular
25information concerning income, profits, losses or
26expenditures contained in any return.
31(III) Print, publish or publicize in any
32manner any return; any particular information
33contained in or concerning the return; any amount
34or source of income, profits, losses or
35expenditures in or concerning the return; or any
36particular information concerning income,
37profits, losses or expenditures contained in or
38relating to any return.
45(c) Earned income and net profits tax.--
1(3) If a board of school directors seeks to impose a tax
2on earned income and net profits under this subsection and
3the referendum under section 306 is approved by the
4electorate, the board of school directors shall have no
5authority to impose a personal income tax under subsection
6(b) or any other act.
7Section 306. Referendum.
8(a) General rule.--In order to levy a personal income tax or
9an earned income and net profits tax under this chapter, a
10governing body shall use the procedures set forth in subsections
11(b), (c), (d), (e), (f) and (g).
12(b) Approved by electorate.--
13(1) Subject to notice and public hearing requirements of
14subsection (g), a governing body may levy the personal income
15tax or earned income and net profits tax under this chapter
16only by obtaining the approval of the electorate of the
17affected school district in a public referendum at only the
18primary election preceding the fiscal year when the personal
19income tax or earned income and net profits tax will be
20initially imposed or the rate increased.
21(2) The referendum question must state the initial rate
22of the proposed personal income tax or earned income and net
23profits tax, the purpose of the tax, the duration of the tax
24and the amount of revenue to be generated by the
25implementation of the tax.
35(4) A nonlegal interpretative statement must accompany
36the question in accordance with section 201.1 of the act of
37June 3, 1937 (P.L.1333, No.320), known as the Pennsylvania
38Election Code, that includes the following:
44(c) School district located in more than one county.--In the
45event a school district is located in more than one county,
46petitions under this section shall be filed with the election
47officials of the county in which the administrative offices of
48the school district are located.
1conduct all necessary communications with the school district.
3(1) If the election officials of the county who receive
4the petition certify that it is sufficient under this section
5and determine that a question should be placed on the ballot,
6the decision shall be communicated to election officials in
7any other county in which the school district is also
9(2) Election officials in the other county or counties
10shall cooperate with election officials of the county that
11receives the petition to ensure that an identical question is
12placed on the ballot at the same election throughout the
13entire school district.
17(g) Adoption of resolution.--
21(2) Prior to adopting a resolution imposing the tax
22authorized by this section, the governing body shall give
23public notice of its intent to adopt the resolution in the
24manner provided by The Local Tax Enabling Act and shall
25conduct at least two public hearings regarding the proposed
26adoption of the resolution. One public hearing shall be
27conducted during normal business hours and one public hearing
28shall be conducted during evening hours or on a weekend.
29Section 307. Continuity of tax.
30Every tax levied under this chapter shall continue in force
31on a fiscal year basis without annual reenactment unless the
32rate of the tax is subsequently changed or the duration placed
33on the referendum has expired.
34Section 308. Collections.
38Section 309. Credits.
39(a) Credit.--Except as set forth in subsection (b), the
40provisions of The Local Tax Enabling Act shall be applied by a
41board of school directors to determine any credits applicable to
42a tax imposed under this chapter.
43(b) Limitation.--Payment of any tax on income to any state
44other than Pennsylvania or to any political subdivision located
45outside the boundaries of this Commonwealth by a resident of a
46school district located in this Commonwealth shall not be
47credited to and allowed as a deduction from the liability of
48such person for any income tax imposed by the school district of
49residence pursuant to this chapter.
50Section 310. Exemption and special provisions.
51(a) Earned income and net profits tax.--A school district
7Section 311. Regulations.
8A school district that imposes:
9(1) an earned income and net profits tax authorized
10under section 305(c) shall be subject to the provisions of
11The Local Tax Enabling Act and may adopt procedures for the
12processing of claims for credits and exemptions under section
13309 and 310; or
14(2) a personal income tax under section 305(b) shall be
15subject to all regulations adopted by the Department of
16Revenue in administering the tax due to the Commonwealth
17under Article III of the Tax Reform Code of 1971.
20Section 401. Education tax.
21(a) General rule.--In addition to the tax collected under
22section 302 of the Tax Reform Code of 1971, the Commonwealth
23shall impose the tax set forth in subsection (c) in the same
24manner as the tax under the Tax Reform Code of 1971.
25(b) Imposition of tax.--
26(1) Every resident individual, estate or trust shall be
27subject to, and shall pay for the privilege of receiving each
28of the classes of income enumerated in section 303 of the Tax
29Reform Code of 1971, a tax upon each dollar of income
30received by that resident during that resident's taxable year
31at the rate of 1.27%.
32(2) Every nonresident individual, estate or trust shall
33be subject to, and shall pay for the privilege of receiving
34each of the classes of income enumerated in section 303 of
35the Tax Reform Code of 1971 from sources within this
36Commonwealth, a tax upon each dollar of income received by
37that nonresident during that nonresident's taxable year at
38the rate of 1.27%.
42(d) Combination of tax forms.--The department shall
43incorporate the taxpayer reporting requirement for the
44implementation of this section into the forms utilized by the
45department under Article III of the Tax Reform Code of 1971.
50SALES AND USE TAX FOR THE
51STABILIZATION OF EDUCATION FUNDING
3Section 701. Scope.
4The tax provided for under this chapter shall be known as the
5Sales and Use Tax for the Stabilization of Education Funding,
6which shall be a replacement for the sales and use tax
7authorized under Article II of the Tax Reform Code of 1971 and
8that is repealed by this act.
9Section 701.1. Definitions.
13(a) "Soft drinks."
14(1) All nonalcoholic beverages, whether carbonated or
15not, such as soda water, ginger ale, Coca Cola, lime cola,
16Pepsi Cola, Dr Pepper, fruit juice when plain or carbonated
17water, flavoring or syrup is added, carbonated water,
18orangeade, lemonade, root beer or any and all preparations,
19commonly referred to as soft drinks, of whatsoever kind, and
20are further described as including any and all beverages,
21commonly referred to as soft drinks, which are made with or
22without the use of any syrup.
23(2) The term does not include natural fruit or vegetable
24juices or their concentrates, or noncarbonated fruit juice
25drinks containing not less than 25% by volume of natural
26fruit juices or of fruit juice which has been reconstituted
27to its original state, or natural concentrated fruit or
28vegetable juices reconstituted to their original state,
29whether any of the natural juices are frozen or unfrozen,
30sweetened or unsweetened, seasoned with salt or spice or
31unseasoned. The term also does not include coffee, coffee
32substitutes, tea, cocoa, natural fluid milk or noncarbonated
33drinks made from milk derivatives.
34(b) "Maintaining a place of business in this Commonwealth."
35(1) Having, maintaining or using within this
36Commonwealth, either directly or through a subsidiary,
37representative or an agent, an office, distribution house,
38sales house, warehouse, service enterprise or other place of
39business; or any agent of general or restricted authority, or
40representative, irrespective of whether the place of
41business, representative or agent is located in this
42Commonwealth, permanently or temporarily, or whether the
43person or subsidiary maintaining the place of business,
44representative or agent is authorized to do business within
46(2) Engaging in any activity as a business within this
47Commonwealth by any person, either directly or through a
48subsidiary, representative or an agent, in connection with
49the lease, sale or delivery of tangible personal property or
50the performance of services thereon for use, storage or
51consumption or in connection with the sale or delivery for
1use of the services described in subclauses (11) through (18)
2of clause (k) of this section, including, but not limited to,
3having, maintaining or using any office, distribution house,
4sales house, warehouse or other place of business, any stock
5of goods or any solicitor, canvasser, salesman,
6representative or agent under its authority, at its direction
7or with its permission, regardless of whether the person or
8subsidiary is authorized to do business in this Commonwealth.
9(3) Regularly or substantially soliciting orders within
10this Commonwealth in connection with the lease, sale or
11delivery of tangible personal property to or the performance
12thereon of services or in connection with the sale or
13delivery of the services described in subclauses (11) through
14(18) of clause (k) of this section for residents of this
15Commonwealth by means of catalogs or other advertising,
16whether the orders are accepted within or without this
29(3.4) Providing a customer's mobile telecommunications
30service deemed to be provided by the customer's home service
31provider under the Mobile Telecommunications Sourcing Act (4
32U.S.C. § 116). For purposes of this clause, words and phrases
33used in this clause shall have the meanings given to them in
34the Mobile Telecommunications Sourcing Act.
35(4) The term does not include:
44(ii) Visits by a person's employees or agents to the
45premises in this Commonwealth of an unaffiliated
46commercial printer with whom the person has contracted
47for printing in connection with said contract.
48(b.1) "Service performed in this Commonwealth."
49A service performed:
50(1) completely in this Commonwealth;
51(2) partially in this Commonwealth and partially outside
3(3) partially in this Commonwealth and partially outside
4this Commonwealth, when the recipient or user of the service
5is not located in this Commonwealth, but only to the extent
6of those services actually performed in this Commonwealth.
9A service performed partially in this Commonwealth and partially
10outside this Commonwealth shall be presumed to have been
11performed completely in this Commonwealth unless the taxpayer
12can show the place of performance by clear and convincing
13evidence. With respect to interstate telecommunications
14services, only services for interstate telecommunications which
15originate or are terminated in this Commonwealth and which are
16billed and charged to a service address in this Commonwealth
17shall be presumed to have been performed completely in this
18Commonwealth and shall be subject to tax.
19(c) "Manufacture." The performance of manufacturing,
20fabricating, compounding, processing or other operations,
21engaged in as a business, which place any tangible personal
22property in a form, composition or character different from that
23in which it is acquired whether for sale or use by the
24manufacturer, and shall include, but not be limited to:
25(1) Every operation commencing with the first production
26stage and ending with the completion of tangible personal
27property having the physical qualities, including packaging,
28if any, passing to the ultimate consumer, which it has when
29transferred by the manufacturer to another. For purposes of
30this definition, "operation" includes clean rooms and their
31component systems, including: environmental control systems,
32antistatic vertical walls and manufacturing platforms and
33floors which are independent of the real estate; process
34piping systems; specialized lighting systems; deionized water
35systems; process vacuum and compressed air systems; process
36and specialty gases; and alarm or warning devices
37specifically designed to warn of threats to the integrity of
38the product or people. For purposes of this definition, a
39"clean room" is a location with a self-contained, sealed
40environment with a controlled, closed air system independent
41from the facility's general environmental control system.
44(3) Refining, blasting, exploring, mining and quarrying
45for, or otherwise extracting from the earth or from waste or
46stock piles or from pits or banks any natural resources,
47minerals and mineral aggregates including blast furnace slag.
48(4) Building, rebuilding, repairing and making additions
49to, or replacements in or upon vessels designed for
50commercial use of registered tonnage of 50 tons or more when
51produced on special order of the purchaser, or when rebuilt,
5(i) product or utility service; or
11(6) Remanufacture for wholesale distribution by a
12remanufacturer of motor vehicle parts from used parts
13acquired in bulk by the remanufacturer using an assembly line
14process which involves the complete disassembly of such parts
15and integration of the components of such parts with other
16used or new components of parts, including the salvaging,
17recycling or reclaiming of used parts by the remanufacturer.
18(7) Remanufacture or retrofit by a manufacturer or
19remanufacturer of aircraft, armored vehicles, other defense-
20related vehicles having a finished value of at least $50,000.
21Remanufacture or retrofit involves the disassembly of such
22aircraft, vehicles, parts or components, including electric
23or electronic components, the integration of those parts and
24components with other used or new parts or components,
25including the salvaging, recycling or reclaiming of the used
26parts or components and the assembly of the new or used
27aircraft, vehicles, parts or components. The term does not
28include constructing, altering, servicing, repairing or
29improving real estate or repairing, servicing or installing
30tangible personal property, nor the cooking, freezing or
31baking of fruits, vegetables, mushrooms, fish, seafood,
32meats, poultry or bakery products. For purposes of this
33clause, the following terms or phrases have the following
44(c.1) "Blasting." The use of any combustible or explosive
45composition in the removal of material resources, minerals and
46mineral aggregates from the earth including the separation of
47the dirt, waste and refuse in which they are found.
4(1.1) The processing of fruits or vegetables by
5cleaning, cutting, coring, peeling or chopping and treating
6to preserve, sterilize or purify and substantially extend the
7useful shelf life of the fruits or vegetables, when the
8person engaged in the activity packages the property in
9sealed containers for wholesale distribution.
10(2) The scouring, carbonizing, cording, combing,
11throwing, twisting or winding of natural or synthetic fibers,
12or the spinning, bleaching, dyeing, printing or finishing of
13yarns or fabrics, when the activities are performed prior to
14sale to the ultimate consumer.
32(8) The operation of a saw mill or planing mill for the
33production of lumber or lumber products for sale. The
34operation of a saw mill or planing mill begins with the
35unloading by the operator of the saw mill or planing mill of
36logs, timber, pulpwood or other forms of wood material to be
37used in the saw mill or planing mill.
38(9) The milling for sale of flour or meal from grains.
39(9.1) The aging, stripping, conditioning, crushing and
40blending of tobacco leaves for use as cigar filler or as
41components of smokeless tobacco products for sale to
42manufacturers of tobacco products.
43(10) The slaughtering and dressing of animals for meat
44to be sold or to be used in preparing meat products for sale,
45and the preparation of meat products including lard, tallow,
46grease, cooking and inedible oils for wholesale distribution.
47(11) The processing of used lubricating oils.
1activity sells the items at retail at locations that do not
2constitute an establishment from which ready-to-eat food and
3beverages are sold. For purposes of this clause, a bakery, a
4pastry shop and a donut shop shall not be considered an
5establishment from which ready-to-eat food and beverages are
16(e) "Person." Any natural person, association, fiduciary,
17partnership, corporation or other entity, including the
18Commonwealth of Pennsylvania, its political subdivisions and
19instrumentalities and public authorities. Whenever used in
20prescribing and imposing a penalty or imposing a fine or
21imprisonment, or both, the term as applied to an association,
22includes the members of the association and, as applied to a
23corporation, the officers of the corporation.
24(f) "Purchase at retail."
25(1) The acquisition for a consideration of the
26ownership, custody or possession of tangible personal
27property other than for resale by the person acquiring the
28same when the acquisition is made for the purpose of
29consumption or use, whether the acquisition is absolute or
30conditional, and by any means it is effected.
31(2) The acquisition of a license to use or consume, and
32the rental or lease of tangible personal property, other than
33for resale regardless of the period of time the lessee has
34possession or custody of the property.
38(4) A retention after March 7, 1956, of possession,
39custody or a license to use or consume pursuant to a rental
40contract or other lease arrangement (other than as security)
41other than for resale.
45The term, with respect to liquor and malt or brewed beverages,
46includes the purchase of liquor from any Pennsylvania Liquor
47Store by any person for any purpose, and the purchase of malt or
48brewed beverages from a manufacturer of malt or brewed
49beverages, distributor or importing distributor by any person
50for any purpose, except purchases from a manufacturer of malt or
51brewed beverages by a distributor or importing distributor or
1purchases from an importing distributor by a distributor within
2the meaning of the Liquor Code. The term does not include any
3purchase of malt or brewed beverages from a retail dispenser or
4any purchase of liquor or malt or brewed beverages from a person
5holding a retail liquor license within the meaning of and
6pursuant to the provisions of the Liquor Code, but includes any
7purchase or acquisition of liquor or malt or brewed beverages
8other than pursuant to the provisions of the Liquor Code.
9(g) "Purchase price."
10(1) The total value of anything paid or delivered, or
11promised to be paid or delivered, whether money or otherwise,
12in complete performance of a sale at retail or purchase at
13retail, without any deduction on account of the cost or value
14of the property sold, cost or value of transportation, cost
15or value of labor or service, interest or discount paid or
16allowed after the sale is consummated, any other taxes
17imposed by the Commonwealth or any other expense except that
18there shall be excluded any gratuity or separately stated
19deposit charge for returnable containers.
20(2) The value of any tangible personal property actually
21taken in trade or exchange in lieu of the whole or any part
22of the purchase price shall be deducted from the purchase
23price. For the purpose of this clause, the amount allowed by
24reason of tangible personal property actually taken in trade
25or exchange shall be considered the value of such property.
26(3) (i) In determining the purchase price on the sale
27or use of taxable tangible personal property or a service
28where, because of affiliation of interests between the
29vendor and purchaser, or irrespective of any such
30affiliation, if for any other reason the purchase price
31declared by the vendor or taxpayer on the taxable sale or
32use of such tangible personal property or service is, in
33the opinion of the department, not indicative of the true
34value of the article or service or the fair price
35thereof, the department shall, pursuant to uniform and
36equitable rules, determine the amount of constructive
37purchase price on the basis of which the tax shall be
38computed and levied. The rules shall provide for a
39constructive amount of purchase price for each sale or
40use which would naturally and fairly be charged in an
41arms-length transaction in which the element of common
42interest between the vendor or purchaser is absent or, if
43no common interest exists, any other element causing a
44distortion of the price or value is likewise absent.
45(ii) For the purpose of this clause where a taxable
46sale or purchase at retail transaction occurs between a
47parent and a subsidiary, affiliate or controlled
48corporation of such parent corporation, there shall be a
49rebuttable presumption, that because of the common
50interest, the transaction was not at arms-length.
51(4) Where there is a transfer or retention of possession
1or custody, whether it is termed a rental, lease, service or
2otherwise, of tangible personal property including, but not
3limited to, linens, aprons, motor vehicles, trailers, tires,
4industrial office and construction equipment, and business
5machines the full consideration paid or delivered to the
6vendor or lessor shall be considered the purchase price, even
7though the consideration is separately stated and designated
8as payment for processing, laundering, service, maintenance,
9insurance, repairs, depreciation or otherwise. Where the
10vendor or lessor supplies or provides an employee to operate
11the tangible personal property, the value of the labor
12supplied may be excluded and shall not be considered as part
13of the purchase price if separately stated. There shall also
14be included as part of the purchase price the value of
15anything paid or delivered, or promised to be paid or
16delivered by a lessee, whether money or otherwise, to any
17person other than the vendor or lessor by reason of the
18maintenance, insurance or repair of the tangible personal
19property which a lessee has the possession or custody of
20under a rental contract or lease arrangement.
21(5) (i) With respect to the tax imposed by section
22702(a)(2), on any tangible personal property originally
23purchased by the user of the property six months or
24longer prior to the first taxable use of the property
25within this Commonwealth, the user may elect to pay tax
26on a substituted base determined by considering the
27purchase price of the property for tax purposes to be
28equal to the prevailing market price of similar tangible
29personal property at the time and place of the first use
30within this Commonwealth.
31(ii) The election must be made at the time of filing
32a tax return with the department and reporting the tax
33liability and paying the proper tax due plus all accrued
34penalties and interest, if any, within six months of the
35due date of such report and payment, as provided for by
36section 717(a) and (c).
37(6) The purchase price of employment agency services and
38help supply services shall be the service fee paid by the
39purchaser to the vendor or supplying entity. The term
40"service fee," as used in this subclause, means the total
41charge or fee of the vendor or supplying entity minus the
42costs of the supplied employee which costs are wages,
43salaries, bonuses and commissions, employment benefits,
44expense reimbursements and payroll and withholding taxes, to
45the extent that these costs are specifically itemized or that
46these costs in aggregate are stated in billings from the
47vendor or supplying entity. To the extent that these costs
48are not itemized or stated on the billings, then the service
49fee shall be the total charge or fee of the vendor or
51(7) Unless the vendor separately states that portion of
4(8) The purchase price of prebuilt housing shall be 60%
5of the manufacturer's selling price, provided that a
6manufacturer of prebuilt housing who precollects tax from a
7prebuilt housing builder at the time of the sale to the
8prebuilt housing builder shall have the option to collect tax
9on 60% of the selling price or on 100% of the actual cost of
10the supplies and materials used in the manufacture of the
12(h) "Purchaser." Any person who acquires, for a
13consideration, the ownership, custody or possession by sale,
14lease or otherwise of tangible personal property, or who obtains
15services in exchange for a purchase price but not including an
16employer who obtains services from his employees in exchange for
17wages or salaries when such services are rendered in the
18ordinary scope of their employment.
20(1) Any transfer of ownership, custody or possession of
21tangible personal property for a consideration, including the
22grant of a license to use or consume and transactions where
23the possession of the property is transferred but where the
24transferor retains title only as security for payment of the
25selling price whether the transaction is designated as
26bailment lease, conditional sale or otherwise.
27(2) The physical incorporation of tangible personal
28property as an ingredient or constituent into other tangible
29personal property, which is to be sold in the regular course
30of business or the performance of those services described in
31subclauses (2), (3) and (4) of clause (k) upon tangible
32personal property which is to be sold in the regular course
33of business or where the person incorporating the property
34has undertaken at the time of purchase to cause it to be
35transported in interstate commerce to a destination outside
36this Commonwealth. The term includes telecommunications
37services purchased by a cable operator or video programmer
38that are used to transport or deliver cable or video
39programming services which are sold in the regular course of
41(3) The term also includes tangible personal property
42purchased or having a situs within this Commonwealth solely
43for the purpose of being processed, fabricated or
44manufactured into, attached to or incorporated into tangible
45personal property and thereafter transported outside this
46Commonwealth for use exclusively outside this Commonwealth.
47(4) The term does not include any sale of malt or brewed
48beverages by a retail dispenser, or any sale of liquor or
49malt or brewed beverages by a person holding a retail liquor
50license within the meaning of the act of April 12, 1951
51(P.L.90, No.21), known as the Liquor Code.
1(5) The physical incorporation of tangible personal
2property as an ingredient or constituent in the construction
3of foundations for machinery or equipment the sale or use of
4which is excluded from tax under the provisions of paragraphs
5(A), (B), (C) and (D) of subclause (8) of clause (k) and
6subparagraphs (i), (ii), (iii) and (iv) of paragraph (B) of
7subclause (4) of clause (o), whether the foundations at the
8time of construction or transfer constitute tangible personal
9property or real estate.
11(1) Any natural person:
12(i) who is domiciled in this Commonwealth; or
16(2) Any corporation:
25(i) domiciled in this Commonwealth;
30(k) "Sale at retail."
31(1) Any transfer, for a consideration, of the ownership,
32custody or possession of tangible personal property,
33including the grant of a license to use or consume whether
34the transfer is absolute or conditional and by any means the
35transfer is effected.
36(2) The rendition of the service of printing or
37imprinting of tangible personal property for a consideration
38for persons who furnish, either directly or indirectly, the
39materials used in the printing or imprinting.
40(3) The rendition for a consideration of the service of:
48(4) The rendition for a consideration of the service of
49repairing, altering, mending, pressing, fitting, dyeing,
50laundering, drycleaning or cleaning tangible personal
51property other than wearing apparel or shoes, or applying or
1installing tangible personal property as a repair or
2replacement part of other tangible personal property other
3than wearing apparel or shoes for a consideration, regardless
4of whether the services are performed directly or by any
5means other than by coin-operated self-service laundry
6equipment for wearing apparel or household goods and whether
7or not any tangible personal property is transferred in
8conjunction with the activity, except such services as are
9rendered in the construction, reconstruction, remodeling,
10repair or maintenance of real estate.
14(8) Any retention of possession, custody or a license to
15use or consume tangible personal property or any further
16obtaining of services described in subclauses (2), (3) and
17(4) of this clause pursuant to a rental or service contract
18or other arrangement (other than as security). The term does
22(ii) the rendition of services or the transfer of
23tangible personal property, including, but not limited
24to, machinery and equipment and their parts and supplies
25to be used or consumed by the purchaser directly in the
29(B) Farming, dairying, agriculture, horticulture
30or floriculture when engaged in as a business
31enterprise. The term "farming" includes the
32propagation and raising of ranch raised fur-bearing
33animals and the propagation of game birds for
34commercial purposes by holders of propagation permits
35issued under 34 Pa.C.S. (relating to game) and the
36propagation and raising of horses to be used
37exclusively for commercial racing activities.
38(C) The producing, delivering or rendering of a
39public utility service, or in constructing,
40reconstructing, remodeling, repairing or maintaining
41the facilities which are directly used in producing,
42delivering or rendering the service.
43(D) Processing as defined in clause (d). The
44exclusions provided in this paragraph or paragraph
45(A), (B) or (C) do not apply to any vehicle required
46registered under 75 Pa.C.S. (relating to vehicles),
47except those vehicles used directly by a public
48utility engaged in business as a common carrier; to
49maintenance facilities; or to materials, supplies or
50equipment to be used or consumed in the construction,
51reconstruction, remodeling, repair or maintenance of
1real estate other than directly used machinery,
2equipment, parts or foundations that may be affixed
3to such real estate. The exclusions provided in this
4paragraph or paragraph (A), (B) or (C) do not apply
5to tangible personal property or services to be used
6or consumed in managerial sales or other
7nonoperational activities, nor to the purchase or use
8of tangible personal property or services by any
9person other than the person directly using the same
10in the operations described in this paragraph or
11paragraph (A), (B) or (C).
12The exclusion provided in paragraph (C) does not apply to:
13(i) construction materials, supplies or equipment
14used to construct, reconstruct, remodel, repair or
15maintain facilities not used directly by the purchaser in
16the production, delivering or rendition of public utility
21(iii) tools and equipment used but not installed in
22the maintenance of facilities used directly in the
23production, delivering or rendition of a public utility
24service. The exclusions provided in paragraphs (A), (B),
25(C) and (D) do not apply to the services enumerated in
26clauses (k)(11) through (18) and (w) through (kk), except
27that the exclusion provided in this subclause for
28farming, dairying and agriculture shall apply to the
29service enumerated in clause (z).
30(9) Where tangible personal property or services are
31utilized for purposes constituting a sale at retail and for
32purposes excluded from the definition of "sale at retail," it
33shall be presumed that the tangible personal property or
34services are utilized for purposes constituting a sale at
35retail and subject to tax unless the user proves to the
36department that the predominant purposes for which such
37tangible personal property or services are utilized do not
38constitute a sale at retail.
39(10) The term, with respect to liquor and malt or brewed
40beverages, includes the sale of liquor by any Pennsylvania
41liquor store to any person for any purpose, and the sale of
42malt or brewed beverages by a manufacturer of malt or brewed
43beverages, distributor or importing distributor to any person
44for any purpose, except sales by a manufacturer of malt or
45brewed beverages to a distributor or importing distributor or
46sales by an importing distributor to a distributor within the
47meaning of the act of April 12, 1951 (P.L.90, No.21), known
48as the Liquor Code. The term does not include any sale of
49malt or brewed beverages by a retail dispenser or any sale of
50liquor or malt or brewed beverages by a person holding a
51retail liquor license within the meaning of and pursuant to
22(20) Except as otherwise provided under section 704, the
23rendition for a consideration of any service when the primary
24objective of the purchaser is the receipt of any benefit of
25the service performed, as distinguished from the receipt of
26property. The following provisions shall apply:
33(iii) With respect to services performed in this
34Commonwealth for a recipient or user of the services
35located in another state in which the services, had they
36been performed in that state, would not be subject to a
37sales or use tax under the laws of that state, then no
38tax may be imposed under this chapter.
42(l) "Storage." Any keeping or retention of tangible
43personal property within this Commonwealth for any purpose
44including the interim keeping, retaining or exercising any right
45or power over such tangible personal property. This term is in
46no way limited to the provision of self-storage service.
47(m) "Tangible personal property." Corporeal personal
48property including, but not limited to, goods, wares,
49merchandise, steam and natural and manufactured and bottled gas
50for non-residential use, electricity for non-residential use,
51prepaid telecommunications, premium cable or premium video
1programming service, spirituous or vinous liquor and malt or
2brewed beverages and soft drinks, interstate telecommunications
3service originating or terminating in this Commonwealth and
4charged to a service address in this Commonwealth, intrastate
5telecommunications service with the exception of:
8(2) Charges for telephone calls paid for by inserting
9money into a telephone accepting direct deposits of money to
10operate, provided further, the service address of any
11intrastate telecommunications service is deemed to be within
12this Commonwealth or within a political subdivision,
13regardless of how or where billed or paid.
14In the case of any interstate or intrastate telecommunications
15service, any charge paid through a credit or payment mechanism
16which does not relate to a service address, such as a bank,
17travel, credit or debit card, but not including prepaid
18telecommunications, is deemed attributable to the address of
19origination of the telecommunications service.
23(1) The exercise of any right or power incidental to the
24ownership, custody or possession of tangible personal
25property and includes, but is not limited to, transportation,
26storage or consumption.
27(2) The obtaining by a purchaser of the service of
28printing or imprinting of tangible personal property when the
29purchaser furnishes, either directly or indirectly, the
30articles used in the printing or imprinting.
31(3) The obtaining by a purchaser of the services of:
32(i) washing, cleaning, waxing, polishing or
33lubricating of motor vehicles regardless of whether any
34tangible personal property is transferred to the
35purchaser in conjunction with the services; and
39(4) The obtaining by a purchaser of the service of
40repairing, altering, mending, pressing, fitting, dyeing,
41laundering, drycleaning or cleaning tangible personal
42property other than wearing apparel or shoes or applying or
43installing tangible personal property as a repair or
44replacement part of other tangible personal property,
45including, but not limited to, wearing apparel or shoes,
46regardless of whether the services are performed directly or
47by any means other than by means of coin-operated self-
48service laundry equipment for wearing apparel or household
49goods, and regardless of whether any tangible personal
50property is transferred to the purchaser in conjunction with
51the activity. The term "use" does not include:
1(A) Any tangible personal property acquired and
2kept, retained or over which power is exercised
3within this Commonwealth on which the taxing of the
4storage, use or other consumption thereof is
5expressly prohibited by the Constitution of the
6United States or which is excluded from tax under
7other provisions of this chapter.
8(B) The use or consumption of tangible personal
9property, including, but not limited to, machinery
10and equipment and parts therefor, and supplies or the
11obtaining of the services described in subclauses
12(2), (3) and (4) of this clause directly in the
14(i) The manufacture of tangible personal property.
15(ii) Farming, dairying, agriculture, horticulture or
16floriculture when engaged in as a business enterprise.
17The term includes the propagation and raising of ranch-
18raised furbearing animals and the propagation of game
19birds for commercial purposes by holders of propagation
20permits issued under 34 Pa.C.S. (relating to game) and
21the propagation and raising of horses to be used
22exclusively for commercial racing activities.
23(iii) The producing, delivering or rendering of a
24public utility service, or in constructing,
25reconstructing, remodeling, repairing or maintaining the
26facilities which are directly used in producing,
27delivering or rendering such service.
28(iv) Processing as defined in subclause (d).
29The exclusions provided in subparagraphs (i), (ii), (iii)
30and (iv) do not apply to any vehicle required to be
31registered under 75 Pa.C.S. (relating to vehicles) except
32those vehicles directly used by a public utility engaged
33in the business as a common carrier; to maintenance
34facilities; or to materials, supplies or equipment to be
35used or consumed in the construction, reconstruction,
36remodeling, repair or maintenance of real estate other
37than directly used machinery, equipment, parts or
38foundations therefor that may be affixed to such real
39estate. The exclusions provided in subparagraphs (i),
40(ii), (iii) and this subparagraph do not apply to
41tangible personal property or services to be used or
42consumed in managerial sales or other nonoperational
43activities, nor to the purchase or use of tangible
44personal property or services by any person other than
45the person directly using the same in the operations
46described in subparagraphs (i), (ii), (iii) and this
47subparagraph. The exclusion provided in subparagraph
48(iii) does not apply to:
7The exclusion provided in subparagraphs (i), (ii), (iii)
8and this subparagraph does not apply to the services
9enumerated in clauses (9) through (16) and (w) through
10(kk), except that the exclusion provided in subparagraph
11(ii) for farming, dairying and agriculture shall apply to
12the service enumerated in clause (z).
13(5) Where tangible personal property or services are
14utilized for purposes constituting a use, and for purposes
15excluded from the definition of "use," it shall be presumed
16that the property or services are utilized for purposes
17constituting a sale at retail and subject to tax unless the
18user proves to the department that the predominant purposes
19for which the property or services are utilized do not
20constitute a sale at retail.
21(6) The term, with respect to liquor and malt or brewed
22beverages, includes the purchase of liquor from any
23Pennsylvania Liquor Store by any person for any purpose and
24the purchase of malt or brewed beverages from a manufacturer
25of malt or brewed beverages, distributor or importing
26distributor by any person for any purpose, except purchases
27from a manufacturer of malt or brewed beverages by a
28distributor or importing distributor, or purchases from an
29importing distributor by a distributor within the meaning of
30the act of April 12, 1951 (P.L.90, No.21), known as the
31Liquor Code. The term does not include any purchase of malt
32or brewed beverages from a retail dispenser or any purchase
33of liquor or malt or brewed beverages from a person holding a
34retail liquor license within the meaning of and pursuant to
35the provisions of the Liquor Code, but includes the exercise
36of any right or power incidental to the ownership, custody or
37possession of liquor or malt or brewed beverages obtained by
38the person exercising the right or power in any manner other
39than pursuant to the provisions of the Liquor Code.
40(7) The use of tangible personal property purchased at
41retail on which the services described in subclauses (2), (3)
42and (4) of this clause have been performed shall be deemed to
43be a use of said services by the person using the property.
45(9) The obtaining by the purchaser of lobbying services.
9(17) The obtaining by a construction contractor of
10tangible personal property or services provided to tangible
11personal property which will be used pursuant to a
12construction contract regardless of whether the tangible
13personal property or services are transferred.
16(19) Except as otherwise provided under section 704, the
17obtaining by the purchaser of any service, not otherwise set
18forth in this definition, when the primary objective of the
19purchaser is the receipt of any benefit of the service
20performed, as distinguished from the receipt of property. The
21following provisions shall apply:
28(iii) With respect to services performed in this
29Commonwealth for a recipient or user of the services
30located in another state in which the services, had they
31been performed in that state, would not be subject to a
32sales or use tax under the laws of that state, then no
33tax may be imposed under this chapter.
37(p) "Vendor." Any person maintaining a place of business in
38this Commonwealth, selling or leasing tangible personal
39property, or rendering services, the sale or use of which is
40subject to the tax imposed by this chapter but not including any
41employee who in the ordinary scope of employment renders
42services to his employer in exchange for wages and salaries.
44(r) "Gratuity." Any amount paid or remitted for services
45performed in conjunction with any sale of food or beverages, or
46hotel or motel accommodations which amount is in excess of the
47charges and the tax for such food, beverages or accommodations
48regardless of the method of billing or payment.
3(t) "Transient vendor."
4(1) Any person who:
5(i) brings into this Commonwealth, by automobile,
6truck or other means of transportation, or purchases in
7this Commonwealth tangible personal property the sale or
8use of which is subject to the tax imposed by this
9chapter or comes into this Commonwealth to perform
10services the sale or use of which is subject to the tax
11imposed by this chapter;
15(iii) does not maintain an established office,
16distribution house, saleshouse, warehouse, service
17enterprise, residence from which business is conducted or
18other place of business within this Commonwealth.
23(3) The term does not include a person who handcrafts
24items for sale at special events, including, but not limited
25to, fairs, carnivals, art and craft shows and other festivals
26and celebrations within this Commonwealth.
27(u) "Promoter." A person who either, directly or
28indirectly, rents, leases or otherwise operates or grants
29permission to any person to use space at a show for the display
30for sale or for the sale of tangible personal property or
31services subject to tax under section 702.
32(v) "Show." An event, the primary purpose of which involves
33the display or exhibition of any tangible personal property or
34services for sale, including, but not limited to, a flea market,
35antique show, coin show, stamp show, comic book show, hobby
36show, automobile show, fair or any similar show, whether held
37regularly or of a temporary nature, at which more than one
38vendor displays for sale or sells tangible personal property or
39services subject to tax under section 702.
43(x) "Adjustment services, collection services or credit
44reporting services." Providing collection or adjustments of
45accounts receivable or mercantile or consumer credit reporting,
46including, but not limited to, services of the type provided by
47adjustment bureaus or collection agencies, consumer or
48mercantile credit reporting bureaus, credit bureaus or agencies,
49credit clearinghouses or credit investigation services. The term
50does not include providing credit card service with collection
51by a central agency, providing debt counseling or adjustment
3(y) "Secretarial or editing services." Providing services
4which include, but are not limited to, editing, letter writing,
5proofreading, resume writing, typing or word processing. The
6term does not include court reporting and stenographic services.
7(z) "Disinfecting or pest control services." Providing
8disinfecting, termite control, insect control, rodent control or
9other pest control services. The term includes, but is not
10limited to, deodorant servicing of rest rooms, washroom
11sanitation service, rest room cleaning service, extermination
12service or fumigating service. As used in this clause, the term
13"fumigating service" does not include the fumigation of
14agricultural commodities or containers used for agricultural
15commodities. As used in this clause, the term "insect control"
16does not include the gypsy moth control spraying of trees which
17are harvested for commercial purposes.
18(aa) "Building maintenance or cleaning services." Providing
19services which include, but are not limited to, janitorial, maid
20or housekeeping service, office or interior building cleaning or
21maintenance service, window cleaning service, floor waxing
22service, lighting maintenance service such as bulb replacement,
23cleaning, chimney cleaning service, acoustical tile cleaning
24service, venetian blind cleaning, cleaning and maintenance of
25telephone booths or cleaning and degreasing of service stations.
26The term does not include: repairs on buildings and other
27structures; the maintenance or repair of boilers, furnaces and
28residential air conditioning equipment or their parts; the
29painting, wallpapering or applying other like coverings to
30interior walls, ceilings or floors; or the exterior painting of
32(bb) "Employment agency services." Providing employment
33services to a prospective employer or employee other than
34employment services provided by theatrical employment agencies
35and motion picture casting bureaus. The term includes, but is
36not limited to, services of the type provided by employment
37agencies, executive placing services and labor contractor
38employment agencies other than farm labor.
39(cc) "Help supply services." Providing temporary or
40continuing help where the help supplied is on the payroll of the
41supplying person or entity, but is under the supervision of the
42individual or business to which help is furnished. The term
43includes, but is not limited to, service of a type provided by
44labor and manpower pools, employee leasing services, office help
45supply services, temporary help services, usher services,
46modeling services or fashion show model supply services. The
47term does not include: providing farm labor services or human
48health-related services, including nursing, home health care and
49personal care. As used in this clause, "personal care" shall
50include providing at least one of the following types of
51assistance to persons with limited ability for self-care:
1(1) dressing, bathing or feeding;
2(2) supervising self-administered medication;
17(kk) "Self-storage service." Providing a building, a room
18in a building or a secured area within a building with separate
19access provided for each purchaser of self-storage service,
20primarily for the purpose of storing personal property. The term
21does not include service involving:
22(1) safe deposit boxes by financial institutions;
23(2) storage in refrigerator or freezer units;
24(3) storage in commercial warehouses;
25(4) facilities for goods distribution; and
28(ll) "Cable or video programming service." Cable television
29services, video programming services, community antenna
30television services or any other distribution of television,
31video, audio or radio services which is transmitted with or
32without the use of wires to purchasers.
33If a purchaser receives or agrees to receive cable or video
34programming service, then the following charges are included in
35the purchase price: charges for installation or repair of any
36cable or video programming service, upgrade to include
37additional premium cable or premium video programming service,
38downgrade to exclude all or some premium cable or premium video
39programming service, additional cable outlets in excess of ten
40or any other charge or fee related to cable or video programming
41services. The term does not apply to: transmissions by public
42television, public radio services or official Federal, State or
43local government cable services; local origination programming
44which provides a variety of public service programs unique to
45the community, programming which provides coverage of public
46affairs issues which are presented without commentary or
47analysis, including United States Congressional proceedings, or
48programming which is substantially related to religious
49subjects; or subscriber charges for access to a video dial tone
50system or charges by a common carrier to a video programmer for
51the transport of video programming.
2(nn) "Construction contract." A written or oral contract or
3agreement for the construction, reconstruction, remodeling,
4renovation or repair of real estate or a real estate structure.
5The term shall not apply to services which are taxable under
6clauses (k)(14) and (17) and (o)(12) and (15).
21(5) alarms limited to fire, security and detection;
26(8) laboratory system;
27(9) cathodic protection system; or
28(10) furniture, cabinetry and kitchen equipment.
29The term includes boilers, chillers, air cleaners, humidifiers,
30fans, switchgear, pumps, telephones, speakers, horns, motion
31detectors, dampers, actuators, grills, registers, traffic
32signals, sensors, card access devices, guardrails, medial
33devices, floor troughs and grates and laundry equipment,
34together with integral coverings and enclosures, regardless of
35whether: the item constitutes a fixture or is otherwise affixed
36to the real estate; damage would be done to the item or its
37surroundings on removal; or the item is physically located
38within a real estate structure. The term does not include
39guardrail posts, pipes, fittings, pipe supports and hangers,
40valves, underground tanks, wire, conduit, receptacle and
41junction boxes, insulation, ductwork and coverings.
45(1) a charitable organization, a volunteer firemen's
46organization, a nonprofit educational institution or a
47religious organization for religious purposes and which
48qualifies as an institution of purely public charity under
49the act of November 26, 1997 (P.L.508, No.55), known as the
50Institutions of Purely Public Charity Act;
51(2) the United States; or
3The term includes building machinery and equipment; developed or
4undeveloped land; streets; roads; highways; parking lots;
5stadiums and stadium seating; recreational courts; sidewalks;
6foundations; structural supports; walls; floors; ceilings;
7roofs; doors; canopies; millwork; elevators; windows and
8external window coverings; outdoor advertising boards or signs;
9airport runways; bridges; dams; dikes; traffic control devices,
10including traffic signs; satellite dishes; antennas; guardrail
11posts; pipes; fittings; pipe supports and hangers; valves;
12underground tanks; wire; conduit; receptacle and junction boxes;
13insulation; ductwork and coverings; and any structure or item
14similar to any of the foregoing, regardless of whether the
15structure or item constitutes a fixture or is affixed to the
16real estate; or damage would be done to the structure or item or
17its surroundings on removal.
18(rr) "Telecommunications service." Any one-way transmission
19or any two-way, interactive transmission of sounds, signals or
20other intelligence converted to like form which effects or is
21intended to effect meaningful communications by electronic or
22electromagnetic means via wire, cable, satellite, light waves,
23microwaves, radio waves or other transmission media. The term
24includes all types of telecommunication transmissions, local,
25toll, wide-area or any other type of telephone service; private
26line service; telegraph service; radio repeater service;
27wireless communication service; personal communications system
28service; cellular telecommunication service; specialized mobile
29radio service; stationary two-way radio service; and paging
30service. The term does not include any of the following:
37(i) The transport over the Internet or any
38proprietary network using the Internet protocol of
39telephone calls, facsimile transmissions or other
40telecommunications traffic to or from end users on the
41public switched telephone network if the signal sent from
42or received by an end user is not in an Internet
47(4) Mobile telecommunications services.
51(tt) "Commercial racing activities." Any of the following:
7(uu) "Prepaid telecommunications." A tangible item
8containing a prepaid authorization number that can be used
9solely to obtain telecommunications service, including any
10renewal or increases in the prepaid amount.
11(vv) "Prebuilt housing." Either of the following:
12(1) Manufactured housing, including mobile homes, which
13bears a label as required by and referred to in the act of
14November 17, 1982 (P.L.676, No.192), known as the
15Manufactured Housing Construction and Safety Standards
24(yy) "Prebuilt housing sale." A sale of prebuilt housing to
25a prebuilt housing purchaser, including a sale to a landlord,
26without regard to whether the person making the sale is
27responsible for installing the prebuilt housing or whether the
28prebuilt housing becomes a real estate structure upon
29installation. Temporary installation by a prebuilt housing
30builder for display purposes of a unit held for resale shall not
31be considered occupancy for residential purposes.
35(aaa) "Mobile telecommunications service." Mobile
36telecommunications service as that term is defined in the Mobile
37Telecommunications Sourcing Act (Public Law 106-252, 4 U.S.C. §
38116 et seq.).
41(ccc) "Prepaid mobile telecommunications service." Mobile
42telecommunications service which is paid for in advance and
43which enables the origination of calls using an access number,
44authorization code or both, regardless of whether manually or
45electronically dialed, if the remaining amount of units of the
46prepaid mobile telecommunications service is known by the
47service provider of the prepaid mobile telecommunications
48service on a continuous basis. The term does not include the
49advance purchase of mobile telecommunications service if the
50purchase is pursuant to a service contract between the service
51provider and customer and if the service contract requires the
7(2) where there are at least 200 telephone lines; and
11(i) customer service and support;
12(ii) technical assistance;
13(iii) help desk service;
14(iv) providing information;
15(v) conducting surveys;
16(vi) revenue collections; or
17(vii) receiving orders or reservations.
21(eee) "Dental services." The general and usual services
22rendered and care administered by doctors of dental medicine or
23doctors of dental surgery, as defined in the act of May 1, 1933
24(P.L.216, No.76), known as The Dental Law.
25(fff) "Physician services." The general and usual services
26rendered and care administered by medical doctors, as defined in
27the act of December 20, 1985 (P.L.457, No.112), known as the
28Medical Practice Act of 1985, or doctors of osteopathy, as
29defined in the act of October 5, 1978 (P.L.1109, No.261), known
30as the Osteopathic Medical Practice Act.
31(ggg) "Clothing." All vesture, wearing apparel, raiments,
32garments, footwear and other articles of clothing, including
33clothing patterns and items that are to be a component part of
34clothing, worn or carried on or about the human body including,
35but not limited to, all accessories, ornamental wear, formal day
36or evening apparel and articles made of fur on the hide or pelt
37or any material imitative of fur and articles of which such fur,
38real, imitation or synthetic, is the component material of chief
39value and sporting goods and clothing not normally used or worn
40when not engaged in sports.
43(1) Soft drinks.
51(ii) from persons engaged in the business of
1operating establishments from which ready-to-eat food and
2beverages are sold, including, but not limited to,
3restaurants, cafes, lunch counters, private and social
4clubs, taverns, dining cars, hotels, night clubs, fast
5food operations, pizzerias, fairs, carnivals, lunch
6carts, ice cream stands, snack bars, cafeterias, employee
7cafeterias, theaters, stadiums, arenas, amusement parks,
8carryout shops, coffee shops and other establishments
9whether mobile or immobile.
10For purposes of this clause, a bakery, a pastry shop, a donut
11shop, a delicatessen, a grocery store, a supermarket, a farmer's
12market, a convenience store or a vending machine shall not be
13considered an establishment from which food or beverages ready
14to eat are sold except for the sale of meals, sandwiches, food
15from salad bars, hand-dipped or hand-served ice-based products
16including ice cream and yogurt, hot soup, hot pizza and other
17hot food items, brewed coffee and hot beverages. For purposes of
18this subclause, beverages shall not include malt and brewed
19beverages and spiritous and vinous liquors but shall include
22SALES AND USE TAX
23Section 702. Imposition of tax.
26(1) There is hereby imposed on each separate sale at
27retail of tangible personal property or services in this
28Commonwealth a tax of 7% of the purchase price, which tax
29shall be collected by the vendor from the purchaser, and
30shall be paid over to the Commonwealth as provided in this
32(2) There is hereby imposed on the use in this
33Commonwealth of tangible personal property purchased at
34retail and on those services purchased at retail a tax of 7%
35of the purchase price, which tax shall be paid to the
36Commonwealth by the person who makes such use as provided
37under this chapter, except that the tax shall not be paid to
38the Commonwealth by the person where the person has paid the
39tax imposed by paragraph (1) or has paid the tax imposed by
40this subsection to the vendor with respect to the use.
42(c) Telecommunications service.--
43(1) Notwithstanding any other provisions of this
44chapter, the tax with respect to telecommunications service
45within the meaning of "tangible personal property" in section
46701 shall be computed at the rate of 7% on the total amount
47charged to customers for the services, irrespective of
48whether such charge is based on a flat rate or on a message
4(3) To prevent actual multistate taxation of interstate
5telecommunications service, any taxpayer, on proof that the
6taxpayer has paid a similar tax to another state on the same
7interstate telecommunications service, shall be allowed a
8credit against the tax imposed by this section on the same
9interstate telecommunications service to the extent of the
10amount of the tax properly due and paid to the other state.
11(d) Coin-operated vending machines.--Notwithstanding any
12other provisions of this chapter, the sale or use of food and
13beverages dispensed by means of coin-operated vending machines
14shall be taxed at the rate of 7% of the receipts collected from
15any coin-operated vending machine which dispenses food and
16beverages that were previously taxable.
17(e) Prepaid telecommunications.--
18(1) Notwithstanding any provisions of this chapter, the
19sale or use of prepaid telecommunications evidenced by the
20transfer of tangible personal property shall be subject to
21the tax imposed by subsection (a).
22(2) The sale or use of prepaid telecommunications not
23evidenced by the transfer of tangible personal property shall
24be subject to the tax imposed by subsection (a) and shall be
25deemed to occur at the purchaser's billing address.
26(3) (i) Notwithstanding paragraph (2), the sale or use
27of prepaid telecommunications service not evidenced by
28the transfer of tangible personal property shall be taxed
29at the rate of 7% of the receipts collected on each sale
30if the service provider elects to collect the tax imposed
31by this chapter on receipts of each sale.
36(e.1) Prepaid mobile telecommunications service.--
37(1) Notwithstanding any other provision of this chapter,
38the sale or use of prepaid mobile telecommunications service
39evidenced by the transfer of tangible personal property shall
40be subject to the tax imposed by subsection (a).
41(2) The sale or use of prepaid mobile telecommunications
42service not evidenced by the transfer of tangible personal
43property shall be subject to the tax imposed by subsection
44(a) and shall be deemed to occur at the purchaser's billing
45address or the location associated with the mobile telephone
46number or the point of sale, whichever is applicable.
47(3) (i) Notwithstanding paragraph (2), the sale or use
48of prepaid mobile telecommunications service not
49evidenced by the transfer of tangible personal property
50shall be taxed at the rate of 7% of the receipts
51collected on each sale if the service provider elects to
7(f) Prebuilt housing.--
8(1) Notwithstanding any other provision of this chapter,
9tax with respect to sales of prebuilt housing shall be
10imposed on the prebuilt housing builder at the time of the
11prebuilt housing sale within this Commonwealth and shall be
12paid and reported by the prebuilt housing builder to the
13department in the time and manner provided in this chapter.
17(3) In any case where prebuilt housing is purchased and
18the tax is not paid by the prebuilt housing builder or
19precollected by the manufacturer, the prebuilt housing
20purchaser shall remit tax directly to the department if the
21prebuilt housing is used in this Commonwealth without regard
22to whether the prebuilt housing becomes a real estate
24(g) Home service providers.--
25(1) Notwithstanding any other provisions of this chapter
26and in accordance with the Mobile Telecommunications Sourcing
27Act (Public Law 106-252, 4 U.S.C. § 116 et seq.), the sale or
28use of mobile telecommunications services which are deemed to
29be provided to a customer by a home service provider under 4
30U.S.C. § 117 (relating to sourcing rules) shall be subject to
31the tax of 7% of the purchase price, which tax shall be
32collected by the home service provider from the customer, and
33shall be paid over to the Commonwealth as provided in this
34chapter if the customer's place of primary use is located
35within this Commonwealth, regardless of where the mobile
36telecommunications services originate, terminate or pass
41Section 703. Computation of tax.
42(a) Table to be published.--Within 60 days of the effective
43date of this section, the department shall prepare and publish
44as a notice in the Pennsylvania Bulletin a table setting forth
45the amount of tax imposed under section 702 for purchase prices
46that are less than $1.
51EXCLUSIONS FROM SALES AND USE TAX
1Section 704. Exclusions from tax.
4(1) The sale at retail or use of tangible personal
5property (other than motor vehicles, trailers, semi-trailers,
6motor boats, aircraft or other similar tangible personal
7property required under either Federal law or laws of this
8Commonwealth to be registered or licensed) or services sold
9by or purchased from a person not a vendor in an isolated
10transaction or sold by or purchased from a person who is a
11vendor but is not a vendor with respect to the tangible
12personal property or services sold or purchased in such
13transaction, provided that inventory and stock in trade so
14sold or purchased shall not be excluded from the tax by the
15provisions of this subsection.
16(2) The use of tangible personal property purchased by a
17nonresident person outside of, and brought into this
18Commonwealth for use therein for a period not to exceed seven
19days, or for any period of time when such nonresident is a
20tourist or vacationer and, in either case not consumed within
22(3) (i) The use of tangible personal property purchased
23outside this Commonwealth for use outside this
24Commonwealth by a then nonresident natural person or a
25business entity not actually doing business within this
26Commonwealth, who later brings the tangible personal
27property into this Commonwealth in connection with the
28person's or entity's establishment of a permanent
29business or residence in this Commonwealth, provided that
30the property was purchased more than six months prior to
31the date it was first brought into this Commonwealth or
32prior to the establishment of the business or residence,
33whichever first occurs.
34(ii) This paragraph shall not apply to tangible
35personal property temporarily brought into this
36Commonwealth for the performance of contracts for the
37construction, reconstruction, remodeling, repairing and
38maintenance of real estate.
48(10) (i) The sale at retail to or use by any charitable
49organization, volunteer firefighters' organization or
50nonprofit educational institution or a religious
51organization for religious purposes of tangible personal
3(ii) This paragraph shall not apply with respect to
4any tangible personal property or services used in any
5unrelated trade or business carried on by the
6organization or institution or with respect to any
7materials, supplies and equipment used and transferred to
8the organization or institution in the construction,
9reconstruction, remodeling, renovation, repairs and
10maintenance of any real estate structure, other than
11building machinery and equipment, except materials and
12supplies when purchased by the organization or
13institution for routine maintenance and repairs.
18(12) (i) The sale at retail to, or use by the United
19States, this Commonwealth or its instrumentalities or
20political subdivisions, nonpublic schools, charter
21schools, cyber charter schools or vocational schools of
22tangible personal property or services.
27(iii) As used in this paragraph, the terms
28"nonpublic school," "charter school," "cyber charter
29school," "vocational school," "supervisor" and "home
30education program" shall have the meanings given to them
31in the Public School Code of 1949.
32(13) The sale at retail, or use of wrapping paper,
33wrapping twine, bags, cartons, tape, rope, labels,
34nonreturnable containers and all other wrapping supplies,
35when such use is incidental to the delivery of any personal
36property, except that any charge for wrapping or packaging
37shall be subject to tax at the rate imposed by section 702.
42(15) Sale at retail of tangible personal property or
43services used or consumed in building, rebuilding, repairing
44and making additions to or replacements in and upon vessels
45designed for commercial use of registered tonnage of 50 tons
46or more upon special order of the purchaser, or when rebuilt,
47repaired or enlarged, or when replacements are made upon
48order of or for the account of the owner.
4(17) The sale at retail or use of prescription
5medicines, drugs or medical supplies, crutches and
6wheelchairs for the use of persons with disabilities and
7invalids, artificial limbs, artificial eyes and artificial
8hearing devices when designed to be worn on the person of the
9purchaser or user, false teeth and materials used by a
10dentist in dental treatment, eyeglasses when especially
11designed or prescribed by an ophthalmologist, oculist or
12optometrist for the personal use of the owner or purchaser
13and artificial braces and supports designed solely for the
14use of persons with disabilities or any other therapeutic,
15prosthetic or artificial device designed for the use of a
16particular individual to correct or alleviate a physical
17incapacity, including, but not limited to, hospital beds,
18iron lungs and kidney machines.
19(18) The sale at retail or use of coal.
25(24) The sale at retail or use of motor vehicles,
26trailers and semitrailers, or bodies attached to the chassis
27thereof, sold to a nonresident of this Commonwealth to be
28used outside this Commonwealth and which are registered in a
29state other than this Commonwealth within 20 days after
30delivery to the vendee.
31(25) The sale at retail or use of water.
32(26) The sale at retail or use of all vesture, wearing
33apparel, raiments, garments, footwear and other articles of
34clothing with a purchase price of less than $50, including
35clothing patterns and items that are to be a component part
36of clothing, worn or carried on or about the human body but
37all accessories, ornamental wear, formal day or evening
38apparel and articles made of fur on the hide or pelt or any
39material imitative of fur and articles of which such fur,
40real, imitation or synthetic, is the component material of
41chief value, but only if such value is more than three times
42the value of the next most valuable component material, and
43sporting goods and clothing not normally used or worn when
44not engaged in sports shall not be excluded from the tax.
47(29) The sale at retail or use of food and beverages
48that are federally approved items for the Women, Infants and
49Children Program under section 17 of the Child Nutrition Act
50of 1966 (Public Law 89-642, 42 U.S.C. § 1786).
51(30) (i) The sale at retail or use of any printed or
3(ii) This paragraph shall not include the sale at
4retail or use of mail order catalogs and direct mail
5advertising literature or materials, including electoral
6literature or materials, such as envelopes, address
7labels and a one-time license to use a list of names and
8mailing addresses for each delivery of direct mail
9advertising literature or materials, including electoral
10literature or materials, through the United States Postal
24(40) The sale at retail of supplies and materials to
25tourist promotion agencies, which receive grants from the
26Commonwealth, for distribution to the public as promotional
27material or the use of such supplies and materials by said
28agencies for said purposes.
36(44) The sale at retail or use of firewood.
1unincorporated association under the laws of this
2Commonwealth or the United States or any entity which is
3authorized to do business in this Commonwealth as a
4nonprofit corporation or unincorporated association under
5the laws of this Commonwealth, including, but not limited
6to, youth or athletic associations, volunteer fire,
7ambulance, religious, charitable, fraternal, veterans,
8civic, or any separately chartered auxiliary of the
9foregoing, if organized and operated on a nonprofit
11"Sports program." Baseball, softball, football,
12basketball, soccer and any other competitive sport
13formally recognized as a sport by the United States
14Olympic Committee as specified by and under the
15jurisdiction of the Amateur Sports Act of 1978 (Public
16Law 95-606, 36 U.S.C. Ch. 2205), the Amateur Athletic
17Union or the National Collegiate Athletic Association.
18The term shall be limited to a program or that portion of
19a program that is organized for recreational purposes and
20whose activities are substantially for such purposes and
21which is primarily for participants who are 18 years of
22age or younger or whose 19th birthday occurs during the
23year of participation or the competitive season,
24whichever is longer. There shall, however, be no age
25limitation for programs operated for persons with
26physical handicaps or persons with mental retardation.
27"Support." The funds raised from sales are used to
28pay the expenses of a sports program or the nonprofit
29association sells the food and beverages at a location
30where a sports program is being conducted under this
31chapter or the Tax Reform Code of 1971.
33(51) The sale at retail or use of interior office
34building cleaning services but only as relates to the costs
35of the supplied employee, which costs are wages, salaries,
36bonuses and commissions, employment benefits, expense
37reimbursements and payroll and withholding taxes, to the
38extent that these costs are specifically itemized or that
39these costs in aggregate are stated in billings from the
40vendor or supplying entity.
45(56) The sale at retail or use of tangible personal
46property or services used, transferred or consumed in
47installing or repairing equipment or devices designed to
48assist persons in ascending or descending a stairway when:
1equipment or device.
10(i) transferred pursuant to a construction contract
11for any charitable organization, volunteer firemen's
12organization, nonprofit educational institution or
13religious organization for religious purposes, provided
14that the building machinery and equipment and services
15thereto are not used in any unrelated trade or business;
21(59) The sale at retail or use of molds and related mold
22equipment used directly and predominantly in the manufacture
23of products, regardless of whether the person that holds
24title to the equipment manufactures a product.
27(62) The sale at retail or use of tangible personal
28property or services which are directly used in farming,
29dairying or agriculture when engaged in as a business
30enterprise, regardless of whether the sale is made to the
31person directly engaged in the business enterprise or to a
32person contracting with the person directly engaged in the
33business enterprise for the production of food.
35(64) The sale at retail to or use by a construction
36contractor, employed by a public school district pursuant to
37a construction contract, of any materials and building
38supplies which, during construction or reconstruction, are
39made part of any public school building utilized for
40instructional classroom education within this Commonwealth,
41if the construction or reconstruction:
1shall have the following meanings:
2(i) "court" includes:
12(iii) "official document" means a record as defined
13in section 102 of the Right-to-Know Law. The term shall
14include notes of court testimony, deposition transcripts,
15driving records, accident reports, birth and death
16certificates, deeds, divorce decrees and other similar
18(67) The sale at retail or use of repair or replacement
19parts, including the installation of those parts, exclusively
20for use in helicopters and similar rotorcraft or in
21overhauling or rebuilding of helicopters and similar
22rotorcraft or helicopters and similar rotorcraft components.
30(71) The sale at retail of insurance premiums.
33(73) An investment or gain on an investment, including,
34but not limited to, bank deposits, stocks and bonds,
35including any commissions, maintenance costs and other
36charges, which commissions, maintenance costs and other
37charges related to the making of such investment or a gain
39(74) The rental of real property.
40(75) The sale at retail of tuition.
44(i) Legal services.
47(iii) Accounting, auditing and bookkeeping services.
48(iv) Specialized design services.
51(vi) Services to building and dwellings.
3(viii) Scientific research and development services.
4(ix) Information services.
5(x) Administrative services.
8(xii) Parking lot and garage services.
13(79) The sale at retail to or use by a person of legal
14services rendered by an attorney where the payment is made
15pursuant to a contingency fee based upon a percentage of the
16amount recovered with respect to a legal claim or dispute.
17(80) The sale at retail to or use by a person of the
18services rendered by or under the supervision of a licensed
19real estate broker, associate broker or salesperson in
20connection with any aspect of the sale, lease or acquisition
21of any interest in real property.
48Section 705. Alternate imposition of tax.
1the "dealer's class," acquires a motor vehicle, trailer or
2semitrailer for the purpose of resale, and prior to such resale,
3uses the motor vehicle, trailer or semitrailer for a taxable use
4under this chapter or the Tax Reform Code of 1971, the person
5may pay a tax equal to 7% of the fair rental value of the motor
6vehicle, trailer or semitrailer during use.
7(b) Aircraft.--A commercial aircraft operator who acquires
8an aircraft for the purpose of resale, or lease, or is entitled
9to claim another valid exemption at the time of purchase, and
10subsequent to the purchase, periodically uses the same aircraft
11for a taxable use under this chapter or the Tax Reform Code of
121971, may elect to pay a tax equal to 7% of the fair rental
13value of the aircraft during such use.
17Section 706. Credit against tax.
18(a) Tax paid to another state.--
19(1) A credit against the tax imposed by section 702
20shall be granted with respect to tangible personal property
21or services purchased for use outside the Commonwealth equal
22to the tax paid to another state by reason of the imposition
23by the other state of a tax similar to the tax imposed by
25(2) No credit under paragraph (1) shall be granted
26unless the other state grants substantially similar tax
27relief by reason of the payment of tax under this chapter or
28under the Tax Reform Code of 1971.
29(b) Telecommunications services.--A credit against the tax
30imposed by section 702 on telecommunications services shall be
31granted to a call center for gross receipts tax paid by a
32telephone company on the receipts derived from the sale of
33incoming and outgoing interstate telecommunications services to
34the call center under section 1101(a)(2) of the Tax Reform Code
35of 1971. The following apply:
36(1) A telephone company, on request, shall notify a call
37center of the amount of gross receipts tax paid by the
38telephone company on the receipts derived from the sale of
39incoming and outgoing interstate telecommunications services
40to the call center.
44(3) By February 15, a taxpayer must submit an
45application to the department for gross receipts tax paid on
46the receipts derived from the sale of incoming and outgoing
47interstate telecommunications services incurred in the prior
3(5) The total amount of tax credits provided for in this
4subsection and approved by the department shall not exceed
5$30,000,000 in any fiscal year. If the total amount of tax
6credits applied for by all applicants exceeds the amount
7allocated for those credits, then the credit to be received
8by each applicant shall be determined as follows:
15(A) the quotient under subparagraph (i); by
16(B) the amount allocated for all tax credits.
19Section 708. Licenses.
20(a) Duty to obtain license.--Every person maintaining a
21place of business in this Commonwealth, selling or leasing
22services or tangible personal property, the sale or use of which
23is subject to tax and who has not obtained a license from the
24department, shall, prior to the beginning of business, make
25application to the department, on a form prescribed by the
26department, for a license. If such person maintains more than
27one place of business in this Commonwealth, the license shall be
28issued for the principal place of business in this Commonwealth.
29(b) Criteria for issuance of license.--
30(1) The department shall, after the receipt of an
31application, issue the license applied for under subsection
32(a) if the applicant filed all required State tax reports and
33paid any State taxes not subject to a timely perfected
34administrative or judicial appeal or subject to a duly
35authorized deferred payment plan. The license shall be
37(2) All licenses in effect on the effective date of this
38section under former Article III of the Tax Reform Code of
391971 and all licenses issued or renewed on or after the
40effective date of this section shall be valid for a period of
42(b.1) Refusal of license.--
43(1) If an applicant for a license or any person holding
44a license has not filed all required State tax reports and
45paid any State taxes not subject to a timely perfected
46administrative or judicial appeal or subject to a duly
47authorized deferred payment plan, the department may refuse
48to issue, may suspend or may revoke said license.
3(3) An applicant or licensee aggrieved by the
4determination of the department may file an appeal pursuant
5to the provisions for administrative appeals in this chapter.
6In the case of a suspension or revocation which is appealed,
7the license shall remain valid pending a final outcome of the
9(4) Notwithstanding section 774 or sections 353(f),
10408(b), 603, 702, 802, 904 and 1102 of the Tax Reform Code of
111971, or any other provision of law to the contrary, if no
12appeal is taken or if an appeal is taken and denied at the
13conclusion of the appeal process, the department may
14disclose, by publication or otherwise, the identity of a
15person and the fact that the person's license has been
16refused, suspended or revoked under this subsection.
17Disclosure may include the basis for refusal, suspension or
20(1) A person that maintains a place of business in this
21Commonwealth for the purpose of selling or leasing services
22or tangible personal property, the sale or use of which is
23subject to tax, without having first been licensed by the
24department shall be guilty of a summary offense and, upon
25conviction thereof, be sentenced to pay a fine of not less
26than $300 nor more than $1,500 and, in default thereof, a
27term of imprisonment of not less than five days nor more than
31(3) For purposes of this subsection, the offering for
32sale or lease of any service or tangible personal property,
33the sale or use of which is subject to tax, during any
34calendar day shall constitute a separate violation.
35(4) The secretary may designate employees of the
36department to enforce the provisions of this subsection. The
37employees shall exhibit proof of and be within the scope of
38the designation when instituting proceedings as provided by
39the Pennsylvania Rules of Criminal Procedure.
44HOTEL OCCUPANCY TAX
45Section 709. Definitions.
1institution summer camp for children, hospital or nursing home.
2"Occupancy." The use or possession or the right to the use or
3possession by any person, other than a permanent resident, of
4any room or rooms in a hotel for any purpose or the right to the
5use or possession of the furnishings or to the services and
6accommodations accompanying the use and possession of the room
8"Occupant." A person, other than a permanent resident, who,
9for a consideration, uses, possesses or has a right to use or
10possess any room or rooms in a hotel under any lease,
11concession, permit, right of access, license or agreement.
12"Operator." Any person who operates a hotel.
16"Rent." The consideration received for occupancy valued in
17money, whether received in money or otherwise, including all
18receipts, cash, credits and property or services of any kind or
19nature, and also any amount for which the occupant is liable for
20the occupancy without any deduction. The term "rent" shall not
21include a gratuity.
22(b) Other definitions.--The following words and phrases,
23when used in Subchapters D and F, shall, in addition to the
24meaning ascribed to them by section 701, have the meaning
25ascribed to them in this subsection, except where the context
26clearly indicates a different meaning:
29"Purchase at retail." Occupancy.
30"Purchase price." Rent.
35"Tangible personal property." Occupancy.
38Section 710. Imposition of tax.
39There is hereby imposed an excise tax of 7% of the rent on
40every occupancy of a room or rooms in a hotel in this
41Commonwealth, which tax shall be collected by the operator from
42the occupant and paid over to the Commonwealth as provided in
43this chapter and deposited into the Education Stabilization
45Section 711. Seasonal tax returns.
46Notwithstanding any other provisions in this chapter or the
47Tax Reform Code of 1971, the department may, by regulation,
48waive the requirement for the filing of quarterly returns in the
49case of any operator whose hotel is operated only during certain
50seasons of the year, and may provide for the filing of returns
51by such persons at times other than those provided by section
3PROCEDURE AND ADMINISTRATION
4Section 715. Persons required to make returns.
8Section 716. Form of returns.
9The returns required by section 715 shall be on forms
10prescribed by the department and shall show such information
11with respect to the taxes imposed by this chapter as the
12department may reasonably require.
13Section 717. Time for filing returns.
14(a) Monthly reporting.--A return shall be filed monthly with
15respect to each month by every licensee whose total tax reported
16or, in the event no report is filed, the total tax which should
17have been reported, for the third calendar quarter of the
18preceding year equals or exceeds $600. The returns shall be
19filed on or before the 20th day of the next succeeding month
20with respect to which the return is made. Any licensee required
21to file monthly returns under this chapter shall be relieved
22from filing quarterly returns.
23(b) Annual reporting.--No annual return shall be filed,
24except as may be required by rules and regulations of the
25department promulgated and published at least 60 days prior to
26the end of the year with respect to which the returns are made.
27Where such annual returns are required, licensees shall not be
28required to file such returns prior to the 20th day of the year
29succeeding the year with respect to which the returns are made.
30(c) Persons other than licensees.--Any person, other than a
31licensee, liable to pay to the department any tax under this
32chapter, shall file a return on or before the 20th day of the
33month succeeding the month in which the person becomes liable
34for the tax.
35(d) Waivers.--The department, by regulation, may waive the
36requirement for the filing of quarterly return in the case of
37any licensee whose individual tax collections do not exceed $75
38per calendar quarter and may provide for reporting on a less
39frequent basis in such cases.
40Section 718. Extension of time for filing returns.
41The department may, on written application and for good cause
42shown, grant a reasonable extension of time for filing any
43return required under this subchapter. However, the time for
44making a return shall not be extended for more than three
46Section 719. Place for filing returns.
1(a) General rule.--Notwithstanding the provisions of any
2State tax law to the contrary, whenever a report or payment of
3all or any portion of a State tax is required by law to be
4received by the department or other agency of the Commonwealth
5on or before a day certain, the taxpayer shall be deemed to have
6complied with the law if the letter transmitting the report or
7payment of the tax which has been received by the department is
8postmarked by the United States Postal Service on or prior to
9the final day on which the payment is to be received.
10(b) Presentation of receipt.--For the purposes of this
11chapter, presentation of a receipt indicating that the report or
12payment was mailed by registered or certified mail on or before
13the due date shall be evidence of timely filing and payment.
14Section 721. Payment of tax.
18Section 722. Time of payment.
19(a) General rule.--The tax imposed by this chapter and
20incurred or collected by a licensee shall be due and payable by
21the licensee on the day the return is required to be filed under
22the provisions of section 717 and the payment must accompany the
23return for the preceding period.
24(b) Other payments.--If the amount of tax due for the
25preceding year as shown by the annual return of a taxpayer is
26greater than the amount already paid by the taxpayer in
27connection with the taxpayer's monthly or quarterly returns, the
28taxpayer shall send with the annual return a remittance for the
29unpaid amount of tax for the year.
34Section 723. Other times for payment.
38Section 724. Place for payment.
41Section 725. Tax held in trust for Commonwealth.
42(a) General rule.--All taxes collected by any person from
43purchasers in accordance with this chapter and all taxes
44collected by any person from purchasers under color of this
45chapter which have not been properly refunded by the person to
46the purchaser shall constitute a trust fund for the
47Commonwealth, and such trust shall be enforceable against such
48person, the person's representatives and any person, other than
49a purchaser to whom a refund has been made properly, receiving
50any part of the fund without consideration, or knowing that the
51taxpayer is committing a breach of trust.
1(b) Presumption.--Any person receiving payment of a lawful
2obligation of the taxpayer from the fund identified under
3subsection (a) shall be presumed to have received the same in
4good faith and without any knowledge of the breach of trust.
5(c) Right to petition and appeal.--Any person, other than a
6taxpayer, against whom the department makes any claim under this
7section shall have the same right to petition and appeal as is
8given taxpayers by any provisions of this subchapter.
9Section 726. Local receivers of use tax.
10(a) General rule.--In every county, except counties of the
11first class, the county treasurer shall receive use tax due and
12payable under this chapter from any person other than a
13licensee. The receiving of the taxes shall be pursuant to rules
14and regulations promulgated by the department and on forms
15furnished by the department.
16(b) Deduction for administrative costs.--Each county
17treasurer shall remit to the department all use taxes received
18under the authority of this section minus the costs of
19administering this section not to exceed 1% of the amount of use
20taxes received, which amount shall be retained in lieu of any
21commission otherwise allowable by law for the collection of the
23Section 727. Discount.
24(a) General rule.--Subject to the provisions of subsection
25(b), if a return is filed by a licensee and the tax shown to be
26due thereon less any discount is paid all within the time
27prescribed, the licensee shall be entitled to credit and apply
28against the tax payable by the licensee a discount of 1% of the
29amount of the tax collected by the licensee, as compensation for
30the expense of collecting and remitting the tax due by the
31licensee and as consideration of the prompt payment.
35(1) For a monthly filer, $25 per return.
36(2) For a quarterly filer, $75 per return.
37(3) For a semiannual filer, $150 per return.
38Section 728. (Reserved).
39Section 729. (Reserved).
40Section 730. Assessment.
41The department shall make the inquiries, determinations and
42assessments of the tax, including interest, additions and
43penalties, imposed by this chapter. A notice of assessment and
44demand for payment shall be mailed by certified mail to the
45taxpayer. The notice shall set forth the basis of the
47Section 731. Mode and time of assessment.
48(a) Duty to examine.--
1with the return, the department shall issue an assessment for
2the difference, together with an addition of 3% of the
3difference, which shall be paid to the department within ten
4days after a notice of the assessment has been mailed to the
6(2) If such assessment is not paid within ten days,
7there shall be added and paid to the department an additional
83% of the difference for each month during which the
9assessment remains unpaid. The total of all additions shall
10not exceed 18% of the difference shown on the assessment.
11(b) Underestimated tax on returns.--
12(1) If the department determines that any return or
13returns of any taxpayer understates the amount of tax due, it
14shall determine the proper amount and shall ascertain the
15difference between the amount of tax shown in the return and
16the amount determined. The difference may be referred to as
23(c) Estimated assessments.--
24(1) In the event that any taxpayer fails to file a
25return required by this chapter, the department may make an
26estimated assessment, based on information available, of the
27proper amount of tax owed by the taxpayer and shall send a
28notice of assessment in the estimated amount to the taxpayer.
33(1) The department may conduct the studies necessary to
34compute effective rates by business classification, based
35upon the ratio between the tax required to be collected and
36taxable sales and to use such rates in arriving at the
37apparent tax liability of a taxpayer.
38(2) Any assessment based on such rates shall be prima
39facie correct, except that the rate shall not be considered
40where a taxpayer establishes the rate is based on a sample
41inapplicable to the taxpayer.
42Section 732. Reassessment.
46Section 733. (Reserved).
47Section 734. Review by Board of Finance and Revenue.
3(2) The failure of the department to notify the
4petitioner of a decision within the time provided by section
5732 shall act as a denial of such petition, and a petition
6for review may be filed with the Board of Finance and Revenue
7within 120 days of the date prior to which the department
8should have mailed to the petitioner its notice of decision.
9(b) Contents of petition for review.--Each petition for
10review filed under this section shall state specifically the
11reasons on which the petitioner relies, or shall incorporate by
12reference the petition for reassessment in which the reasons are
13stated. The petition shall be supported by affidavit that it is
14not made for the purpose of delay and that the facts set forth
15in the petition are true.
16(c) Action by board.--
30Section 735. (Reserved).
31Section 736. Burden of proof.
35Section 737. Collection of tax.
41(1) Every person maintaining a place of business in this
42Commonwealth and selling or leasing tangible personal
43property or services, the sale or use of which is subject to
44tax shall collect the tax from the purchaser or lessee at the
45time of making the sale or lease, and shall remit the tax to
46the department, unless the collection and remittance is
47otherwise provided for in this chapter.
48(2) (i) Every person not otherwise required to collect
49tax that delivers tangible personal property to a
50location within this Commonwealth and that unpacks,
51positions, places or assembles the tangible personal
1property shall collect the tax from the purchaser at the
2time of delivery and shall remit the tax to the
3department if the person delivering the tangible personal
4property is responsible for collecting any portion of the
5purchase price of the tangible personal property
6delivered and the purchaser has not provided the person
7with proof that the tax imposed by this chapter has been
8or will be collected by the seller or that the purchaser
9provided the seller with a valid exemption certificate.
10(ii) Every person required to collect tax under this
11paragraph shall be deemed to be selling or leasing
12tangible personal property or services, the sale or use
13of which is subject to the tax imposed under section 702.
14(3) Any person required under this chapter to collect
15tax from another person, who shall fail to collect the proper
16amount of the tax, shall be liable for the full amount of the
17tax which the person should have collected.
18(c) Certificate for tax-exempt sales or leases.--
19(1) If the tax does not apply to the sale or lease of
20tangible personal property or services, the purchaser or
21lessee shall furnish to the vendor a certificate indicating
22that the sale is not legally subject to the tax. The
23certificate shall be in substantially such form as the
24department may, by regulation, prescribe.
25(2) Where the tangible personal property or service is
26of a type which is never subject to the tax imposed or where
27the sale or lease is in interstate commerce, the certificate
28need not be furnished.
29(3) Where a series of transactions are not subject to
30tax, a purchaser or user may furnish the vendor with a single
31exemption certificate in substantially such form and valid
32for such period of time as the department may, by regulation,
36(5) An exemption certificate, which is complete and
37regular and on its face discloses a valid basis of exemption
38if taken in good faith, shall relieve the vendor from the
39liability imposed by this section.
40(6) An exemption certificate:
41(i) accepted by a vendor from a natural person
42domiciled within this Commonwealth or any association,
43fiduciary, partnership, corporation or other entity,
44either authorized to do business within this Commonwealth
45or having an established place of business within this
46Commonwealth, in the ordinary course of the vendor's
48(ii) which on its face discloses a valid basis of
49exemption consistent with the activity of the purchaser
50and character of the property or service being purchased
51or which is provided to the vendor by a charitable,
5(iv) which, in the case of any purchase costing $200
6or more, is accompanied by a sworn declaration on a form
7to be provided by the department of an intended usage of
8the property or service which would render it nontaxable,
12(1) The department may authorize a purchaser or lessee
13who acquires tangible personal property or services under
14circumstances which make it impossible at the time of
15acquisition to determine the manner in which the tangible
16personal property or service will be used, to pay the tax
17directly to the department, and waive the collection of the
18tax by the vendor.
23(3) If a direct payment permit is granted, its use shall
24be subject to conditions specified by the department, and the
25payment of tax on all acquisitions pursuant to the permit
26shall be made directly to the department by the permit
30(a) General rule.--Notwithstanding the provisions of section
31737(b)(1), tax due on the sale at retail or use of a motor
32vehicle, trailer or semitrailer, except mobile homes as defined
33in 75 Pa.C.S. (relating to vehicles), required by law to be
34registered with the department under the provisions of 75
35Pa.C.S. shall be paid by the purchaser or user directly to the
36department on application to the department for an issuance of a
37certificate of title on the motor vehicle, trailer or
45(2) The department may cancel or suspend any record of
46certificate of title or registration of a motor vehicle,
47trailer or semitrailer when the check received in payment of
48the tax on the vehicle is not paid on demand.
3Section 739. Precollection of tax.
5(1) Except as otherwise provided under paragraph (2),
6the department may, by regulation, authorize or require
7particular categories of vendors selling tangible personal
8property for resale to precollect from the purchaser the tax
9which the purchaser will collect on making a sale at retail
10of the tangible personal property.
11(2) The department, pursuant to this section, may not
12require a vendor to precollect tax from a purchaser who
13purchases for resale more than $1,000 worth of tangible
14personal property from the vendor per year.
15(b) No license required.--In any case in which a vendor has
16been authorized to prepay the tax to the person from whom the
17vendor purchased the tangible personal property for resale, the
18vendor authorized to prepay the tax may, under the regulations
19of the department, be relieved from the duty to secure a license
20if the duty arises only by reason of the vendor's sale of the
21tangible personal property with respect to which the vendor is,
22under authorization of the department, to prepay the tax.
24(1) The vendor, on making a sale at retail of tangible
25personal property with respect to which the vendor has
26prepaid the tax, must separately state at the time of resale
27the proper amount of tax on the transaction, and reimburse
28itself on account of the taxes which the vendor has
30(2) If the vendor collects a greater amount of tax in
31any reporting period than the vendor previously prepaid on
32purchase of the goods with respect to which the vendor
33prepaid the tax, the vendor must file a return and remit the
34balance to the Commonwealth at the time at which a return
35would otherwise be due with respect to the sales.
36Section 740. Bulk and auction sales.
37A person who sells or causes to be sold at auction, or who
38sells or transfers in bulk, 51% or more of any stock, of goods,
39wares or merchandise of any kind, fixtures, machinery,
40equipment, buildings or real estate, involved in a business for
41which the person is licensed or required to be licensed under
42this chapter, or is liable for filing use tax returns in
43accordance with this chapter, shall be subject to the provisions
44of section 1403 of The Fiscal Code.
47(a) General rule.--The department may collect any tax:
3(3) Within 30 days from the date of the decision of the
4Board of Finance and Revenue on a petition for review, or of
5the expiration of the board's time for acting on the
6petition, if no appeal has been made.
9(b) Limitation on defenses.--
10(1) Subject to the provisions of paragraph (2), in any
11such case in a proceeding for the collection of the taxes,
12the person against whom the taxes were assessed shall not be
13permitted to set up any ground of defense that might have
14been determined by the department, the Board of Finance and
15Revenue or the courts.
16(2) The defense of failure of the department to mail
17notice of assessment or reassessment to the taxpayer and the
18defense of payment of assessment or reassessment may be
19raised in proceedings for collection by a motion to stay the
21Section 742. Lien for taxes.
22(a) Nature and effect of lien.--
23(1) If any person liable to pay any tax neglects or
24refuses to pay the same after demand, the amount, including
25any interest, addition or penalty, together with any costs
26that may accrue in addition, shall be a lien in favor of the
27Commonwealth on the property, both real and personal, of the
28person but only after same has been entered and docketed of
29record by the prothonotary of the county where the property
31(2) The department may, at any time, transmit to the
32prothonotaries of the respective counties certified copies of
33all liens for taxes imposed by this chapter or the Tax Reform
34Code of 1971 and penalties and interest.
41(b) Priority status.--
42(1) The lien imposed under this section shall have
43priority from the date of its recording, and shall be fully
44paid and satisfied out of the proceeds of any judicial sale
45of property before any other obligation, judgment, claim,
46lien or estate to which the property may subsequently become
47subject, except costs of the sale and of the writ on which
48the sale was made, and real estate taxes and municipal claims
49against such property, but shall be subordinate to mortgages
50and other liens existing and duly recorded or entered of
51record prior to the recording of the tax lien.
1(2) In the case of a judicial sale of property, subject
2to a lien imposed under this section, on a lien or claim over
3which the lien imposed under this section has priority, the
4sale shall discharge the lien imposed under this section to
5the extent only that the proceeds are applied to its payment,
6and the lien shall continue in full force and effect as to
7the balance remaining unpaid.
11(4) (i) The lien of the taxes, interest and penalties,
12shall continue for five years from the date of entry, and
13may be revived and continued in the manner now or
14hereafter provided for renewal of judgments, or as may be
15provided in The Fiscal Code, and a writ of execution may
16directly issue upon the lien without the issuance and
17prosecution to judgment of a writ of scire facias.
18(ii) Not less than ten days before issuance of any
19execution on the lien, notice of the filing and the
20effect of the lien shall be sent by registered mail to
21the taxpayer at the taxpayer's last known post office
23(iii) The lien shall have no effect on any stock of
24goods, wares or merchandise regularly sold or leased in
25the ordinary course of business by the person against
26whom the lien has been entered, unless and until a writ
27of execution has been issued and a levy made on the stock
28of goods, wares and merchandise.
29(c) Penalty.--Any willful failure of any prothonotary to
30carry out any duty imposed on the prothonotary under this
31section shall be a misdemeanor, and, upon conviction, the
32prothonotary shall be sentenced to pay a fine not more than
33$1,000 and costs of prosecution or to a term of imprisonment not
34exceeding one year, or both.
35(d) Priority payment from distribution.--
36(1) Except as otherwise provided under the law, in the
37distribution, voluntary or compulsory, in receivership,
38bankruptcy or otherwise, of the property or estate of any
39person, all taxes imposed by this chapter which are due and
40unpaid and are not collectible under section 725 shall be
41paid from the first money available for distribution in
42priority to all other claims and liens, except insofar as the
43laws of the United States may give a prior claim to the
45(2) Any person charged with the administration or
46distribution of the property or estate, who violates the
47provisions of this section, shall be personally liable for
48any taxes imposed by this chapter, which are accrued and
49unpaid and are chargeable against the person whose property
50or estate is being administered or distributed.
51(e) Construction.--Subject to the limitations contained in
1this chapter as to the assessment of taxes, nothing contained in
2this section shall be construed to restrict, prohibit or limit
3the use by the department in collecting taxes finally due and
4payable of any other remedy or procedure available at law or
5equity for the collection of debts.
6Section 743. Suit for taxes.
7(a) General rule.--At any time within three years after any
8tax or any amount of tax shall be finally due and payable, the
9department may commence an action in the courts of this
10Commonwealth, of any state or of the United States, in the name
11of the Commonwealth, to collect the amount of tax due together
12with additions, interest, penalties and costs in the manner
13provided at law or in equity for the collection of ordinary
15(b) Prosecution by Attorney General.--The Attorney General
16shall prosecute the action and, except as provided in this
17chapter, the provisions of the Rules of Civil Procedure and the
18provisions of the laws of this Commonwealth relating to civil
19procedures and remedies shall, to the extent that they are
20applicable, be available in such proceedings.
21(c) Construction.--The provisions of this section are in
22addition to any process, remedy or procedure for the collection
23of taxes provided by this chapter or by the laws of this
24Commonwealth, and this section is neither limited by nor
25intended to limit any such process, remedy or procedure.
26Section 744. Tax suit comity.
27The courts of this Commonwealth shall recognize and enforce
28liabilities for sales and use taxes, lawfully imposed by any
29other state if the other state extends a like comity to this
31Section 745. Service.
32(a) General rule.--Any person who maintains a place of
33business in this Commonwealth is deemed to have appointed the
34Secretary of the Commonwealth as the person's agent for the
35acceptance of service of process or notice in any proceedings
36for the enforcement of the civil provisions of this chapter, and
37any service made upon the Secretary of the Commonwealth as agent
38shall be of the same legal force and validity as if the service
39had been personally made on the person.
40(b) Substitute service.--Where service cannot be made on the
41person in the manner provided by other laws of this Commonwealth
42relating to service of process, service may be made on the
43Secretary of the Commonwealth and, in such case, a copy of the
44process or notice shall also be personally served on any agent
45or representative of the person who may be found within this
46Commonwealth, or where no such agent or representative may be
47found a copy of the process or notice shall be sent by
48registered mail to the person at the last known address of the
49person's principal place of business, home office or residence.
50Section 746. Collection and payment of tax on credit sales.
51If any sale subject to tax under this chapter is wholly or
1partly on credit, the vendor shall require the purchaser to pay
2in cash at the time the sale is made, or within 30 days
3thereafter, the total amount of tax due upon the entire purchase
4price. The vendor shall remit the tax to the department,
5regardless of whether payment was made by the purchaser to the
6vendor, with the next return required to be filed under section
8Section 747. Prepayment of tax.
9(a) General rule.--Whenever a vendor is prohibited by law or
10governmental regulation to charge and collect the purchase price
11in advance of or at the time of delivery, the vendor shall
12prepay the tax as required by section 722, but in that case, if
13the purchaser fails to pay to the vendor the total amount of the
14purchase price and the tax and the amount is written off as
15uncollectible by the vendor, the vendor shall not be liable for
16the tax and shall be entitled to a credit or refund of the tax
18(b) Subsequent collection of tax.--If the purchase price is
19thereafter collected, in whole or in part, the amount collected
20shall be first applied to the payment of the entire tax portion
21of the bill, and shall be remitted to the department by the
22vendor with the first return filed after such collection.
23(c) Time period for refund.--Tax prepaid shall be subject to
24refund on petition to the department under the provisions of
25section 752, filed within 105 days of the close of the fiscal
26year in which the accounts are written off.
27Section 747.1. Refund of sales tax attributed to bad debt.
2(c) Assignment.--A vendor may assign its right to petition
3and receive a refund of sales tax attributed to a bad debt to an
4affiliated entity. A vendor may not assign its right to petition
5and receive a refund of sales tax attributed to a bad debt to
6any other person.
10(e) Contents of petition for refund.--The documentation,
11procedures and methods for claiming and calculating the refund
12allowed under this section shall be in such form as the
13department may prescribe.
14(f) Subsequent collection.--If the purchase price that is
15attributed to a prior bad debt refund is collected in whole or
16in part, the vendor or affiliated entity shall remit the
17proportional tax to the department with the first return filed
18after the collection.
19(g) Interest prohibited.--Notwithstanding the provisions of
20section 806.1 of The Fiscal Code, no interest shall be paid by
21the Commonwealth on refunds of sales tax attributed to bad debt
22under this section.
32(i) Definition.--For purposes of this section, the term
33"affiliated entity" means any corporation that is part of the
34same affiliated group as the vendor as defined by section
351504(a)(1) of the Internal Revenue Code of 1986.
36Section 748. Registration of transient vendors.
37(a) General rule.--Prior to conducting business or otherwise
38commencing operations in this Commonwealth, a transient vendor
39shall register with the department. The application for
40registration shall be in such form and contain such information
41as the department, by regulation, shall prescribe and shall set
42forth truthfully and accurately the information desired by the
43department. This registration shall be renewed and updated
45(b) Certificate to be issued.--After registration and the
46posting of the bond required by section 748.1, the department
47shall issue to the transient vendor a certificate valid for one
48year. On renewal of registration, the department shall issue a
49new certificate valid for one year, if the department is
50satisfied that the transient vendor has complied with the
51provisions of this chapter.
1(c) Possession and exhibition of certificate.--The transient
2vendor shall possess the certificate at all times when
3conducting business within this Commonwealth and shall exhibit
4the certificate upon demand by authorized employees of the
5department or any law enforcement officer.
6(d) Contents of certificate.--The certificate issued by the
7department shall state that the transient vendor named in the
8certificate has registered with the department and shall provide
9notice to the transient vendor that:
10(1) The transient vendor must notify the department in
11writing before it enters this Commonwealth to conduct
12business, of the location or locations where it intends to
13conduct business and the date or dates on which it intends to
22Section 748.1. Bond.
23(a) General rule.--Upon registration with the department, a
24transient vendor shall also post a bond with the department in
25the amount of $500 as surety for compliance with the provisions
26of this chapter. After a period of demonstrated compliance with
27these provisions or, if the transient vendor provides the
28license number of a promoter who has notified the department of
29a show, in accordance with the provisions of section 748.6(a),
30the department may reduce the amount of bond required of a
31transient vendor or may eliminate the bond entirely.
32(b) Voluntary suspension of certificate.--A transient vendor
33may file a request for voluntary suspension of certificate with
34the department. If the department is satisfied that the
35provisions of this chapter have been complied with and has
36possession of the transient vendor's certificate, it shall
37return the bond posted to the transient vendor.
38Section 748.2. Notification to department.
39(a) General rule.--Prior to entering this Commonwealth to
40conduct business, a transient vendor shall notify the department
41in writing of the location or locations where it intends to
42conduct business and the date or dates on which it intends to
44(b) Inspection of records.--While conducting business in
45this Commonwealth, the transient vendor shall permit authorized
46employees of the department to inspect its sales records,
47including, but not limited to, sales receipts and inventory or
48price lists and to permit inspection of the tangible personal
49property offered for sale at retail.
1issued to a transient vendor if the transient vendor:
12Section 748.3. Seizure of property.
13(a) General rule.--If a transient vendor conducting business
14in this Commonwealth fails to exhibit a valid certificate on
15demand by authorized employees of the department, those
16authorized employees shall seize, without warrant, the tangible
17personal property and the automobile, truck or other means of
18transportation used to transport or carry that property. All
19property seized shall be deemed contraband and shall be subject
20to immediate forfeiture proceedings instituted by the department
21pursuant to procedures adopted by regulation, except as
22otherwise provided by this section.
31Section 748.4. Fines.
32Any transient vendor conducting business in this Commonwealth
33while its certificate is suspended or revoked, as provided by
34sections 748.1(b) and 748.2(c), commits a misdemeanor of the
35third degree and, upon conviction, shall be sentenced to pay a
36fine of not more than $2,500 for each offense.
37Section 748.5. Transient vendors subject to chapter.
41Section 748.6. Promoters.
42(a) General rule.--A promoter of a show or shows in this
43Commonwealth may annually file with the department an
44application for a promoter's license stating the location and
45dates of such show or shows. The application shall be filed at
46least 30 days prior to the opening of the first show and shall
47be in such form as the department may prescribe.
1charge a license to operate such shows.
2(2) If application for a license under this section has
3been timely filed and if the license has not been received by
4the promoter prior to the opening of the show, the
5authorization contained in this section with respect to the
6obtaining of a promoter's license shall be deemed to have
7been complied with, unless or until the promoter receives
8notice from the department denying the application for a
10(c) Compliance.--Any promoter who is a vendor under the
11provisions of section 701 shall comply with all the provisions
12of this chapter applicable to vendors and with the provisions of
13this section applicable to promoters.
14(d) Prohibited conduct.--No licensed promoter shall permit
15any person to display for sale or to sell tangible personal
16property or services subject to tax under section 702 at a show
17unless the person is licensed under section 708 and provides to
18the promoter the information required under law.
20(1) Any licensed promoter who:
32(2) The department may deny the promoter a license
33certificate to operate a show for a period of not more than
34six months from the date of such denial. The penalty shall be
35in addition to any other penalty imposed by this chapter.
36(3) Within 20 days of notice of denial or revocation of
37a license by the department, the promoter may petition the
38department for a hearing pursuant to 2 Pa.C.S. (relating to
39administrative law and procedure).
40Section 749. (Reserved).
41Section 750. (Reserved).
42Section 751. (Reserved).
43Section 752. Refunds.
44(a) General rule.--Subject to the provisions of subsection
45(b), the department shall, pursuant to the provisions of Article
46XXVII of the Tax Reform Code of 1971, refund all taxes, interest
47and penalties paid to the Commonwealth under the provisions of
48this chapter and to which the Commonwealth is not rightfully
49entitled. The refunds shall be made to the person, the person's
50heirs, successors, assigns or other personal representatives,
51who actually paid the tax.
1(b) Exception.--No refund shall be made under this section
2with respect to any payment made by reason of an assessment with
3respect to which a taxpayer has filed a petition for
4reassessment pursuant to section 2702 of the Tax Reform Code of
51971 to the extent that the petition has been determined
6adversely to the taxpayer by a decision which is no longer
7subject to further review or appeal.
8(c) Construction.--Nothing contained in this section shall
9be deemed to prohibit a taxpayer who has filed a timely petition
10for reassessment from amending it to a petition for refund where
11the petitioner has paid the tax assessed.
12Section 753. Refund petition.
13(a) General rule.--Except as provided for in subsection (b)
14and section 756, the refund or credit of tax, interest or
15penalty provided for by section 752 shall be made only where the
16person who has actually paid the tax files a petition for refund
17with the department under Article XXVII of the Tax Reform Code
18of 1971, within the limits of section 3003.1 of the Tax Reform
19Code of 1971.
20(b) Assessments.--A refund or credit of tax, interest or
21penalty paid as a result of an assessment made by the department
22under section 731 shall be made only where the person who has
23actually paid the tax files with the department a petition for a
24refund with the department under Article XXVII of the Tax Reform
25Code of 1971 within the time limits of section 3003.1 of the Tax
26Reform Code of 1971. The filing of a petition for refund under
27the provisions of this subsection shall not affect the abatement
28of interest, additions or penalties to which the person may be
29entitled by reason of the person's payment of the assessment.
30Section 754. (Reserved).
31Section 755. (Reserved).
34(a) General rule.--Any party to a transaction who has paid
35tax by reason of a transaction with respect to which the
36department is assessing tax against another person may, within
37six months after the filing by the department of the assessment
38against the other person, file a special petition for refund,
39notwithstanding the person's failure to timely file a petition
40pursuant to section 3003.1 of the Tax Reform Code of 1971. The
41provisions of Article XXVII of the Tax Reform Code of 1971 shall
42be applicable to the special petition for refund, except that
43the department need not act on the petition until there is a
44final determination as to the propriety of the assessment filed
45against the other party to the transaction. Where a petition is
46filed under this provision in order to take advantage of the
47extended period of limitations, overpayments by the petitioner
48shall be refunded but only to the extent of the actual tax,
49without consideration of interest and penalties, paid by the
50other party to the transaction.
51(b) Purpose.--The purpose of this section is to avoid
1duplicate payment of tax where a determination is made by the
2department that one party to a transaction is subject to tax,
3and another party to the transaction has previously paid tax
4with respect to the transaction and, as such, this section shall
5be construed as extending right beyond that provided for by
6section 753, and not to limit the other section.
7Section 757. (Reserved).
8Section 758. Limitation on assessment and collection.
9The amount of the tax imposed by this chapter or the Tax
10Reform Code of 1971 shall be assessed within three years after
11the date when the return provided for by section 717(a) or (c)
12is filed or the end of the year in which the tax liability
13arises, whichever occurs later. Any assessment may be made at
14any time during the period notwithstanding that the department
15may have made one or more previous assessments against the
16taxpayer for the year in question, or for any part of the year.
17In any case, no credit shall be given for any penalty previously
18assessed or paid.
19Section 759. Failure to file return.
23Section 760. False or fraudulent return.
27Section 761. Extension of limitation period.
28Notwithstanding any other provisions of this subchapter
29where, before the expiration of the period prescribed in that
30other provision for the assessment of a tax, a taxpayer has
31consented in writing that the period be extended, the amount of
32tax due may be assessed at any time within the extended period.
33The period so extended may be extended further by subsequent
34consents in writing made before the expiration of the extended
36Section 762. (Reserved).
37Section 763. (Reserved).
38Section 764. (Reserved).
39Section 765. Interest.
40If any amount of tax imposed by this chapter is not paid to
41the department on or before the last date prescribed for
42payment, interest on the amount at the rate of .75% per month
43for each month, or fraction thereof, from the date, shall be
44paid for the period from the last date to the date paid. The
45last date prescribed for payment shall be determined under
46section 722(a) or (c) without regard to any extension of time
47for payment. In the case of any amount assessed as a deficiency
48or as an estimated assessment, the date prescribed for payment
49shall be 30 days after notice of the assessment.
50Section 766. Additions to tax.
51(a) Failure to file return.--In the case of failure to file
1any return required by section 715 on the date prescribed for
2the return, determined with regard to any extension of time for
3filing, and, in the case in which a return filed understates the
4true amount due by more than 50%, there shall be added to the
5amount of tax actually due 5% of the amount of the tax if the
6failure to file a proper return is for not more than one month,
7with an additional 5% for each additional month, or fraction
8thereof, during which such failure continues, not exceeding 25%
9in the aggregate. In every case at least $2 shall be added.
10(b) Addition for understatement.--There shall be added to
11every assessment under section 731(b) an addition equal to 5% of
12the amount of the understatement and no addition to the tax
13shall be paid under section 731(a).
14(c) Interest.--If the department assesses a tax according to
15section 731(a), (b) or (c), there shall be added to the amount
16of the deficiency interest at the rate of .75% per month for
17each month, or fraction thereof, from the date prescribed by
18subsection (a) or section 722(c) for the payment of the tax to
19the date of notice of the assessment.
20Section 767. Penalties.
21(a) General rule.--The penalties, additions, interest and
22liabilities provided by this chapter shall be paid on notice and
23demand by the department, and shall be assessed and collected in
24the same manner as taxes. Except as otherwise provided, any
25reference in this chapter to tax imposed by this chapter shall
26be deemed also to refer to the penalties, additions, interest
27and liabilities provided by this chapter.
28(b) Monetary penalty.--Any person who willfully attempts, in
29any manner, to evade or defeat the tax imposed by this chapter,
30or the payment thereof, or to assist any other person to evade
31or defeat the tax imposed by this chapter, or the payment
32thereof, or to receive a refund improperly shall, in addition to
33other penalties provided by law, be liable for a penalty equal
34to one-half of the total amount of the tax evaded.
35(c) Burden of proof.--In any direct proceeding arising out
36of a petition for reassessment or refund as provided in this
37chapter, in which an issue of fact is raised with respect to
38whether a return is fraudulent or with respect to the propriety
39of the imposition by the department of the penalty prescribed in
40subsection (b), the burden of proof with respect to the issue
41shall be on the department.
42Section 768. Criminal offenses.
43(a) False returns.--Any person who with intent to defraud
44the Commonwealth willfully makes, or causes to be made, any
45return required by this chapter which is false commits a
46misdemeanor and, upon conviction, shall be sentenced to pay a
47fine of not more than $2,000 or to imprisonment not exceeding
48three years, or both.
1(1) advertises or holds out or states to the public or
2to any purchaser or user, directly or indirectly, that the
3tax or any part imposed by this chapter will be absorbed by
4the person, or that it will not be added to the purchase
5price of the tangible personal property or services described
6in section 701(k)(2), (3), (4) and (11) through (18) sold or,
7if added, that the tax or any part will be refunded, other
8than when the person refunds the purchase price because of
9the property being returned to the vendor;
10(2) sells or leases tangible personal property or the
11services, the sale or use of which by the purchaser is
12subject to tax under this chapter, and willfully fails to
13collect the tax from the purchaser and timely remit the same
14to the department;
15(3) willfully fails or neglects to timely file any
16return or report required by this chapter or, as a taxpayer,
17refuses to timely pay any tax, penalty or interest imposed or
18provided for by this chapter, or willfully fails to preserve
19the person's books, papers and records as directed by the
21(4) refuses to permit the department or any of its
22authorized agents to examine the person's books, records or
23papers, or who knowingly makes any incomplete, false or
24fraudulent return or report;
37(1) Any person who maintains a place of business outside
38this Commonwealth may absorb the tax with respect to taxable
39sales made in the normal course of business to customers
40present at that place of business without being subject to
41the penalty and fines.
42(2) Advertising tax-included prices shall be
43permissible, if the prepaid services are sold by the service
44provider, for prepaid telecommunications services not
45evidenced by the transfer of tangible personal property or
46for prepaid mobile telecommunications services.
50Section 769. Abatement of additions or penalties.
51On the filing of a petition for reassessment or a petition
1for refund as provided under this chapter by a taxpayer,
2additions or penalties imposed on the taxpayer by this chapter
3or the Tax Reform Code of 1971 may be waived or abated, in whole
4or in part, where the petitioner has established that the
5petitioner has acted in good faith, without negligence and with
6no intent to defraud.
7Section 770. Rules and regulations.
8(a) General rule.--The department shall enforce the
9provisions of this chapter and shall prescribe, adopt,
10promulgate and enforce rules and regulations not inconsistent
11with the provisions of this chapter, relating to any matter or
12thing pertaining to the administration and enforcement of the
13provisions of this chapter, and the collection of taxes,
14penalties and interest imposed by this chapter. The department
15may prescribe the extent, if any, to which any of the rules and
16regulations shall be applied without retroactive effect.
17(b) Determination of purchase price.--
18(1) In determining the purchase price of taxable sales
19where, because of affiliation of interests between the vendor
20and the purchaser or irrespective of any such affiliation, if
21for any other reason, the purchase price of the sale is in
22the opinion of the department not indicative of the true
23value of the article or the fair price of the article, the
24department shall, pursuant to uniform and equitable rules,
25determine the amount of constructive purchase price on the
26basis of which the tax shall be computed and levied.
27(2) The rules shall provide for a constructive amount of
28a purchase price for each sale, which price shall equal a
29price for the article which would naturally and fairly be
30charged in an arm's-length transaction in which the element
31of common interests between vendor and purchaser or, if no
32common interest exists, any other element causing a
33distortion of the price or value is absent.
34(3) For the purpose of this chapter where a taxable sale
35occurs between a parent corporation and a subsidiary
36affiliate or controlled corporation of such parent, there
37shall be a rebuttable presumption that because of such common
38interest the transaction was not at arm's-length.
39Section 771. Keeping of records.
40(a) Persons liable for taxes.--Every person liable for any
41tax imposed by this chapter, or for the collection of the tax,
42shall keep the records, render such statements, make the returns
43and comply with the rules and regulations as the department may,
44from time to time, prescribe regarding matters pertinent to the
45person's business. Whenever in the judgment of the department it
46is necessary, it may require any person, by notice served on the
47person, or by regulations, to make the returns, render the
48statements or keep the records as the department deems
49sufficient to show whether the person is liable to pay or
50collect tax under this chapter.
51(b) Persons collecting taxes.--Any person liable to collect
1tax from another person under the provisions of this chapter
2shall file reports, keep records, make payments and be subject
3to interest and penalties as provided for under this chapter, in
4the same manner as if the person were directly subject to the
7(1) A nonresident who does business in this Commonwealth
8as a retail dealer shall keep adequate records of the
9business and of the tax due with respect to the business,
10which records shall at all times be retained within this
11Commonwealth unless retention outside this Commonwealth is
12authorized by the department.
19(d) Retail dealers.--
20(1) Any person doing business as a retail dealer who at
21the same time is engaged in another business which does not
22involve the making of sales taxable under this chapter shall
23keep separate books and records of the person's businesses so
24as to show the sales taxable under this chapter separately
25from the sales not taxable under this chapter.
26(2) If the person fails to keep such separate books and
27records, the person shall be liable for tax at the rate
28designated in section 702 on the entire purchase price of
29sales from both or all of the person's businesses.
30(e) Segregation of taxes required.--
31(1) In those instances where a vendor gives no sales
32memoranda or uses registers showing only total sales, the
33vendor shall adopt some method of segregating tax from sales
34receipts and keep records showing the segregation, all in
35accordance with proper accounting and business practices.
36(2) A vendor may apply to the department for permission
37to use a collection and recording procedure which will show
38the information as the law requires with reasonable accuracy
39and simplicity. The application must contain a detailed
40description of the procedure to be adopted.
50Section 771.1. Reports and records of promoters.
51Every licensed promoter shall keep a record of the date and
1place of each show and the name, address, sales, use and hotel
2occupancy license number of every person whom the licensed
3promoter permits to display for sale or to sell tangible
4personal property or services subject to tax under section 702
5at the show. The records shall be open for inspection and
6examination at any reasonable time by the department or a duly
7authorized representative, and the records shall, unless the
8department consents in writing to an earlier destruction, be
9preserved for three years after the date the report was filed or
10the date it was due, whichever occurs later, except that the
11department may by regulation require that they be kept for a
12longer period of time.
13Section 772. Examinations.
14(a) Power of department.--The department or any of its
15authorized agents may examine the books, papers and records of
16any taxpayer in order to verify the accuracy and completeness of
17any return made or if no return was made, to ascertain and
18assess the tax imposed by this chapter. The department may
19require the preservation of all such books, papers and records
20for any period deemed proper by it but not to exceed three years
21from the end of the calendar year to which the records relate.
25(c) Other powers of department.--
26(1) The department is further authorized to examine any
27person, under oath, concerning taxable sales or use by any
28taxpayer or concerning any other matter relating to the
29enforcement or administration of this chapter, and to this
30end may compel the production of books, papers and records
31and the attendance of all persons whether as parties or
32witnesses whom it believes to have knowledge of such matters.
36Section 773. Records and examinations of delivery agents.
37Every agent for the purpose of delivery of goods shipped into
38this Commonwealth by a nonresident, including, but not limited
39to, a common carrier, shall maintain adequate records of such
40deliveries pursuant to rules and regulations adopted by the
41department and shall make the records available to the
42department upon request after due notice.
43Section 774. Unauthorized disclosure.
44Any information gained by the department as a result of any
45return, examination, investigation, hearing or verification
46required or authorized by this chapter shall be confidential,
47except for official purposes and except in accordance with
48proper judicial order or as otherwise provided by law, and any
49person unlawfully divulging such information commits a
50misdemeanor and, upon conviction, shall be sentenced to pay a
51fine of not more than $1,000 and costs of prosecution or to
1imprisonment for not more than one year, or both.
2Section 775. Cooperation with other governments.
3Notwithstanding the provisions of section 774, the department
4may permit the Commissioner of Internal Revenue of the United
5States, or the proper officer of any state, or the authorized
6representative of either such officer, to inspect the tax
7returns of any taxpayer, or may furnish to the officer or to the
8officer's authorized representative an abstract of the return of
9any taxpayer, or supply the officer or the authorized
10representative with information concerning any item contained in
11any return or disclosed by the report of any examination or
12investigation of the return of any taxpayer. This permission
13shall be granted only if the statutes of the United States or of
14such other state, as the case may be, grant substantially
15similar privileges to the proper officer of the Commonwealth
16charged with the administration of this chapter.
17Section 776. Interstate compacts.
18(a) General rule.--The Governor, or the Governor's
19authorized representative, may confer with the Governor and the
20authorized representatives of other states with respect to
21reciprocal use tax collection between the Commonwealth and such
23(b) Other powers.--The Governor, or the Governor's
24authorized representative, may join with the authorities of
25other states to conduct joint investigations, to exchange
26information, hold joint hearings and enter into compacts or
27interstate agreements with such other states to accomplish
28uniform reciprocal use tax collections between those states who
29are parties to any compact or interstate agreement and the
31Section 777. Bonds.
33(1) Whenever the department, in its discretion, deems it
34necessary to protect the revenues to be obtained under the
35provisions of this chapter, it may require any nonresident
36natural person or any foreign corporation, association,
37fiduciary, partnership or other entity, not authorized to do
38in this Commonwealth or not having an established place of
39business in this Commonwealth and subject to the tax imposed
40by section 702, to file a bond issued by a surety company
41authorized to do business in this Commonwealth and approved
42by the Insurance Commissioner as to solvency and
43responsibility, in such amounts as it may fix, to secure the
44payment of any tax or penalties due, or which may become due,
45from a natural person or corporation.
46(2) In order to protect the revenues to be obtained
47under the provisions of this chapter, the department shall
48require any nonresident natural person or any foreign
49corporation, association, fiduciary, partnership or entity,
50who or which is a building contractor, or who or which is a
51supplier delivering building materials for work in this
1Commonwealth and is not authorized to do business in this
2Commonwealth or does not have an established place of
3business in this Commonwealth and is subject to the tax
4imposed by section 702, to file a bond issued by a surety
5company authorized to do business in this Commonwealth and
6approved by the Insurance Commissioner as to solvency and
7responsibility, in the amounts as it may fix, to secure the
8payments of any tax or penalties due, or which may become
9due, from a natural person, corporation or other entity.
10(3) The department may also require a bond of any person
11petitioning the department for reassessment, in the case of
12any assessment over $500 or where it is of the opinion that
13the ultimate collection is in jeopardy.
14(4) (i) The department may, for a period of three
15years, require a bond of any person who has on three or
16more occasions within a 12-month period either filed a
17return or made payment to the department more than 30
23(iii) The taxpayer shall file a bond within five
24days after the giving of the notice by the department
25unless, within the five-day period, the taxpayer requests
26in writing a hearing before the secretary or the
27secretary's representative at which hearing the
28necessity, propriety and amount of the bond shall be
29determined by the secretary or a representative. The
30determination shall be final and shall be complied within
3115 days after notice is mailed to the taxpayer.
32(b) Alternative security.--
36(2) Such securities or cash shall be kept in the custody
37of the department, who may, at any time, without notice to
38the depositor, apply them to any tax and/or interest or
39penalties due, and for that purpose the securities may be
40sold by the department, at public or private sale, on five
41days' written notice to the depositor.
42(c) Lien may be filed.--
46(2) All funds received on execution of the judgment on
47the lien shall be refunded to the taxpayer with 3% interest
48should a final determination be made that the taxpayer does
49not owe any payment to the department.
1Section 780. (Reserved).
2Section 781. Appropriation for refunds.
3So much of the proceeds of the tax imposed by this chapter as
4shall be necessary for the payment of refunds, enforcement or
5administration under this chapter is hereby appropriated for
7Section 781.1. Construction.
8To the extent that the language of this chapter is identical
9to that of equivalent provisions in the former act of March 6,
101956 (P.L.1228, No.381), known as the Tax Act of 1963 for
11Education, or Article II of the Tax Reform Code of 1971, that
12language shall be deemed a reenactment of such identical
14Section 782. Transfers to Education Stabilization Fund.
15(a) Legislative intent.--It is the intent of the General
16Assembly to increase the rate of the current sales and use tax
17and broaden the sales and use tax base in order to provide funds
18for the operating expenses of school districts and as a means to
19abolish the school property tax.
20(b) Deposit of sales and use tax collected.--The secretary
21shall deposit into the Education Stabilization Fund revenues
22received on or after January 1, 2014, regardless of the
23transaction date, that equal the portion of the tax imposed by
24this chapter as follows:
33(3) All of the tax collected on expanded sales and uses.
36(1) The sale at retail or use of disposable diapers;
37premoistened wipes; incontinence products; colostomy
38deodorants; toilet paper; sanitary napkins, tampons or
39similar items used for feminine hygiene; or toothpaste,
40toothbrushes or dental floss.
1"legal newspaper" or a publication containing matters of
2general interest and reports of current events which
3qualifies as a "newspaper of general circulation" qualified
4to carry a "legal advertisement" as those terms are defined
5in 45 Pa.C.S. § 101 (relating to definitions), not including
6magazines. The term "newspaper" also includes any printed
7advertising materials circulated with such newspaper
8regardless of where or by whom such printed advertising
9material was produced.
15(8) The sale at retail or use of textbooks for use in
16schools, colleges and universities, either public or private,
17when purchased in behalf of or through such schools, colleges
18or universities provided such institutions of learning are
19recognized by the Department of Education.
23(10) The sale at retail or use of mail order catalogs
24and direct mail advertising literature or materials,
25including electoral literature or materials, such as
26envelopes, address labels and a one-time license to use a
27list of names and mailing addresses for each delivery of
28direct mail advertising literature or materials, including
29electoral literature or materials, through the United States
31(11) The sale at retail of horses, if at the time of
32purchase, the seller is directed to ship or deliver the horse
33to an out-of-State location, whether or not the charges for
34shipment are paid for by the seller or the purchaser.
35(12) The sale at retail of supplies and materials to
36tourist promotion agencies, which receive grants from the
37Commonwealth, for distribution to the public as promotional
38material or the use of such supplies and materials by said
39agencies for said purposes.
40(13) The sale at retail or use of materials used in the
41construction and erection of objects purchased by not-for-
42profit organizations for purposes of commemoration and
43memorialization of historical events, provided that the
44object is erected upon publicly owned property or property to
45be conveyed to a public entity upon the commemoration or
46memorialization of the historical event.
7(i) transferred pursuant to a construction contract
8for any charitable organization, volunteer firemen's
9organization, volunteer firefighters' relief association,
10nonprofit educational institution or religious
11organization for religious purposes, provided that the
12building machinery and equipment and services thereto are
13not used in any unrelated trade or business; or
17(17) The sale or use of used prebuilt housing.
18(18) The sale at retail to or use of food and
19nonalcoholic beverages by an airline which will transfer the
20food or nonalcoholic beverages to passengers in connection
21with the rendering of the airline service.
24(20) The sale at retail or use of investment metal
25bullion and investment coins. "Investment metal bullion"
26means any elementary precious metal which has been put
27through a process of smelting or refining, including, but not
28limited to, gold, silver, platinum and palladium, and which
29is in such state or condition that its value depends upon its
30content and not its form. "Investment metal bullion" does not
31include precious metal which has been assembled, fabricated,
32manufactured or processed in one or more specific and
33customary industrial, professional, aesthetic or artistic
34uses. "Investment coins" means numismatic coins or other
35forms of money and legal tender manufactured of gold, silver,
36platinum, palladium or other metal and of the United States
37or any foreign nation with a fair market value greater than
38any nominal value of such coins. "Investment coins" does not
39include jewelry or works of art made of coins, nor does it
40include commemorative medallions.
45SCHOOL DISTRICT TAXATION
48(a) Abrogating authority to impose certain taxes.--
1provisions of section 1102, January 1, 2014.
2(2) The authority of a city of the first class to impose
3or continue to provide for the imposition or continuation of
4any tax, including, but not limited to, the real property
5tax, for the use of a school district of the first class
6shall expire in accordance with section 1102(b).
7(b) Collection of certain taxes unaffected.--The provisions
8of this section or any other provision of this act shall not
9prevent or interfere with any action of any school district to
10collect any tax owed by any taxpayer prior to the repeal of any
11law authorizing such tax after such law is repealed pursuant to
13(c) Limitations on adoption of personal income taxes and
14earned income taxes authorized under Chapter 3.--A school
15district that adopts a personal income tax pursuant to Chapter 3
16may not adopt an earned income tax. A school district that
17adopts an earned income tax under Chapter 3 may not adopt a
18personal income tax.
19Section 1102. Transitional taxes.
20(a) Transitional taxes for school districts other than
21school districts of the first class.--Notwithstanding any other
22provision of the Public School Code of 1949 or any other law to
27(2) For all fiscal years beginning after June 30, 2014,
28no school district shall have any power or authority to levy,
29assess and collect any real property tax, except as necessary
30to fund the annual debt service payments for its outstanding
31debt in existence on December 31, 2012.
35(1) Any school district of the first class and city of
36the first class may continue to levy, assess and collect a
37real property tax and all other taxes in existence on July
3831, 2013 at the rates in effect on that date for the use of a
39coterminous school district of the first class for fiscal
40year 2013-2014. The authority to levy, assess and collect
41such taxes for the use of coterminous school districts shall
42expire at midnight on December 31, 2013.
43(2) For all fiscal years beginning after June 30, 2013,
44no city of the first class shall have any power or authority
45to levy, assess and collect any of the taxes identified under
46paragraph (1) for school purposes, except as necessary to
47fund the annual debt service payments for its outstanding
48debt in existence on December 31, 2012.
51The personal income or earned income tax levied shall not be
1invalidated by reason of the fact that in determining the amount
2to be raised by such tax no deduction was made for
3appropriations or reimbursements paid or payable by the
4Commonwealth to the school district.
7Notwithstanding any other provision of the Public School Code
8of 1949 or any other law to the contrary, nothing in this act
9shall be construed to limit or impair a city of the first class
10from levying, assessing or collecting any tax for municipal
11purposes or from increasing the millage for real estate taxes or
12revenues if the revenues derived from the real property tax are
13used solely for municipal purposes.
16Section 1201. Expiration of authority to issue debt.
17No school district, including a school district of the first
18class, shall incur any electoral debt, lease rental debt or
19nonelectoral debt under 53 Pa.C.S. Pt. VII Subpt. B after the
20effective date of this section unless such debt is authorized
21under Chapter 3 or any other law.
25(1) Each school district, including a school district of
26the first class, shall identify the outstanding amount of all
27electoral debt, lease rental debt or nonelectoral debt
28incurred as of December 31, 2012.
29(2) On or before September 30, 2013, each school
30district, including a school district of the first class,
31shall certify and report to the Department of Revenue the
32outstanding amount of all electoral debt, lease rental debt
33or nonelectoral debt incurred as of December 31, 2012,
34together with any information requested by the department in
35order for the Commonwealth to comply with requirements of
37(b) Audit by Department of Revenue.--
38(1) The Department of Revenue shall audit each report
39submitted under subsection (a) and shall certify the amount
40of each report and the total aggregate amount of all reports
41to the State Treasurer on or before March 31, 2014.
42(2) If the Department of Revenue disputes all or any
43portion of a report submitted under subsection (a), the
44department shall not include such amount in the certification
45to the State Treasurer and shall notify the school district
46in writing of the exclusion from the certification.
49Section 1301. Definitions.
1context clearly indicates otherwise:
2"Base revenue." The money a school district receives from
3school property taxes during fiscal year 2013-2014 less the
4amount necessary to fund the annual debt service payments for
5its outstanding debt in existence on December 31, 2012.
6"Cost of living factor." The lesser of:
17Section 1302. Education Stabilization Fund.
20(b) Sources.--The following are the sources of the fund:
21(1) Money collected by the department under:
22(i) section 401; or
23(ii) Chapter 7.
31(4) Return on money in the fund.
34(d) Continuing appropriation.--The money of the fund is
35hereby continuously appropriated to the department as provided
36in this act. This appropriation shall not lapse at the end of
37any fiscal year.
42(1) Ascertain base revenue.
44(i) the amount ascertained under paragraph (1); by
45(ii) the cost of living factor.
47(i) the product under paragraph (2); by
51(b) Annual adjustment.--In fiscal year 2015-2016 and each
6(i) the amount ascertained under paragraph (1); by
7(ii) the cost of living factor.
9(i) the product under paragraph (2); by
15Section 1501. Transitional provision.
16(a) Sales and use tax.--Notwithstanding the repeal of
17Article II of the Tax Reform Code of 1971, under section 1504,
18the department shall have the authority to enforce the
19collection of taxes imposed for transactions that occur prior to
20the effective date of this section under former Article II of
21the Tax Reform Code of 1971. The taxes collected after January
221, 2014, regardless of the transaction date, shall be deposited
23as provided in section 782.
24(b) Other taxes.--Notwithstanding the repeal of any
25provision of the Public School Code of 1949 or of any other law
26authorizing school districts to impose taxes, a governing body
27shall have the authority to enforce, after the effective date of
28the repeal, the collection of taxes levied and assessed under
29those former provisions prior to the effective date of the
30repeal under section 1504.
31Section 1502. Construction.
32Any and all references in any other act to Article II or any
33provision in Article II of the Tax Reform Code of 1971 shall be
34deemed a reference to Chapter 7 of this act or the corresponding
35provisions in Chapter 7 of this act.
36Section 1503. Severability.
37The provisions of this act are severable as follows:
38(1) If any provision of this act is held invalid, the
39invalidity shall not affect other provisions or applications
40of this act which can be given effect without the invalid
41provision or application.
42(2) Under no circumstances shall the invalidity of any
43provision or application of this act affect the validity of
44any provision in this act that abolishes the power of the
45governing body and any school district and city of the first
46class or any other political subdivision to levy, assess or
47collect a tax on any interest in real property for school
49Section 1504. Repeals.
5(2) Any provision of the Public School Code of 1949 and
6of any other law relating to the authority of any school
7district to levy, assess and collect any tax on real property
8and the power of any city of the first class to levy, assess
9and collect any tax real property for school purposes is
10repealed upon the expiration of the respective schedule
11prescribed in sections 1101 and 1102.
18(5) Any provision of the act of August 9, 1963 (P.L.643,
19No.341), known as the First Class City Public Education Home
20Rule Act, and any home rule school district charter adopted
21pursuant thereto is repealed insofar as it is inconsistent
22with this act.
28Section 1505. Applicability.
29Section 1504(b)(6) and Chapter 7 shall apply January 1, 2014.
30Section 1506. Effective date.
31This act shall take effect as follows: