THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SCAVELLO, BOBACK, BOYD, BROOKS, D. COSTA, CREIGHTON, DALEY, DAVIDSON, DeLUCA, FLECK, GEIST, GEORGE, GILLEN, GOODMAN, GROVE, HORNAMAN, MILLARD, MILLER, SCHRODER, TRUITT, WAGNER AND YOUNGBLOOD, NOVEMBER 15, 2011

REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 15, 2011  

AN ACT

Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An

act relating to tax reform and State taxation by codifying

and enumerating certain subjects of taxation and imposing

taxes thereon; providing procedures for the payment,

collection, administration and enforcement thereof; providing

for tax credits in certain cases; conferring powers and

imposing duties upon the Department of Revenue, certain

employers, fiduciaries, individuals, persons, corporations

and other entities; prescribing crimes, offenses and

penalties," further providing for the definition of "purchase

price"; and abrogating a regulation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 201(g) of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended

by adding a paragraph to read:

Section 201.  Definitions.--The following words, terms and

phrases when used in this Article II shall have the meaning

ascribed to them in this section, except where the context

clearly indicates a different meaning:

* * *

(g)  "Purchase price."

* * *

(1.1)  If a retailer accepts a form of discount, a new

purchase price shall be established for an item being

discounted. For the purpose of this subclause, a discount is

defined as:

(i)  an on-the-spot cash discount;

(ii)  an employee discount;

(iii)  a volume discount;

(iv)  a store discount, such as "buy one, get one free";

(v)  a wholesaler's or trade discount;

(vi)  a rebate; or

(vii)  a store or manufacturer's coupon.

Section 2.  The regulation of the Department of Revenue under

61 Pa. Code § 33.2(b)(2) (relating to scope) is abrogated. 

Section 3.  This act shall take effect in 60 days.