1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," in sales and use tax, providing for tax imposed
11on on-road vehicles and on-road trailers.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

14Section 1. The act of March 4, 1971 (P.L.6, No.2), known as 
15the Tax Reform Code of 1971, is amended by adding a section to
16read:

17Section 238.1. Tax Imposed on On-Road Vehicles and On-Road
18Trailers.--(a) Notwithstanding any other provision of this act,
19the tax due on the sale at retail or use of an on-road vehicle
20and on-road trailer shall be deposited as follows:

21(1) Beginning in fiscal year 2013-2014, twenty-five per cent
22of the tax shall be deposited into the Motor License Fund and

1seventy-five per cent of the tax shall be deposited into the
2General Fund.

3(2) Beginning in fiscal year 2014-2015, fifty per cent of
4the tax shall be deposited into the Motor License Fund and fifty
5per cent of the tax shall be deposited into the General Fund.

6(3) Beginning in fiscal year 2015-2016, seventy-five per
7cent of the tax shall be deposited into the Motor License Fund
8and twenty-five per cent of the tax shall be deposited into the
9General Fund.

10(4) Beginning in fiscal year 2016-2017, and each fiscal year
11thereafter, one hundred per cent of the tax shall be deposited
12into the Motor License Fund.

13(b) Notwithstanding any other provision of this act, all
14interest and penalties associated with the sale at retail or use
15of an on-road vehicle or an on-road trailer shall be deposited
16as follows:

17(1) Beginning in fiscal year 2013-2014, twenty-five per cent
18of the associated interest and penalties shall be deposited into
19the Motor License Fund and seventy-five per cent of the
20associated interest and penalties shall be deposited into the
21General Fund.

22(2) Beginning in fiscal year 2014-2015, fifty per cent of
23the associated interest and penalties shall be deposited into
24the Motor License Fund and fifty per cent of the associated
25interest and penalties shall be deposited into the General Fund.

26(3) Beginning in fiscal year 2015-2016, seventy-five per
27cent of the associated interest and penalties shall be deposited
28into the Motor License Fund and twenty-five per cent of the
29associated interest and penalties shall be deposited into the
30General Fund.

1(4) Beginning in fiscal year 2016-2017, and each fiscal year
2thereafter, one hundred per cent of the associated interest and
3penalties shall be deposited into the Motor License Fund.

4(c) For the purposes of this section:

5(1) "On-road trailer" shall be defined as a trailer that is
6capable of being towed by an on-road vehicle.

7(2) "On-road vehicle" shall be defined as a motor vehicle
8that is titled, registered, annually inspected and, as such, is
9authorized for use on the roadways of this Commonwealth.

10Section 2. This act shall take effect in 60 days.