PRINTER'S NO. 2750
No. 2022 Session of 1984
INTRODUCED BY KLINGAMAN, DOMBROWSKI, TRELLO, LEVI, PETERSON,
WILSON, AFFLERBACH, D. W. SNYDER, SEMMEL, HUTCHINSON, PIEVSKY
AND ZWIKL, APRIL 24, 1984
REFERRED TO COMMITTEE ON TRANSPORTATION, APRIL 24, 1984
AN ACT
1 Amending the act of May 21, 1931 (P.L.149, No.105), entitled, as
2 amended, "An act imposing a State tax, payable by those
3 herein defined as distributors, on liquid fuels used or sold
4 and delivered within the Commonwealth, which are practically,
5 and commercially suitable for use in internal combustion
6 engines for the generation of power; providing for the
7 collection and lien of the tax, and the distribution and use
8 of the proceeds thereof; requiring such distributors to
9 secure permits, to file corporate surety bonds and reports,
10 and to retain certain records; imposing duties on retail
11 dealers, common carriers, county commissioners, and such
12 distributors; providing for rewards; imposing certain costs
13 on counties; conferring powers and imposing duties on certain
14 State officers and departments; providing for refunds;
15 imposing penalties; and making an appropriation," exempting
16 certain cemetery vehicles and equipment from the tax; and
17 making editorial changes.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Section 4 of the act of May 21, 1931 (P.L.149,
21 No.105), known as The Liquid Fuels Tax Act, amended December 19,
22 1975 (P.L.556, No.156), is amended to read:
23 Section 4. Imposition of Tax; Exemptions and Deductions.--A
24 permanent State tax of eight cents a gallon, or fractional part
25 thereof, is hereby imposed and assessed upon all liquid fuels
1 used or sold and delivered by distributors within this
2 Commonwealth, excepting liquid fuels delivered to the United
3 States Government on presentation of a duly authorized United
4 States Government exemption certificate or other evidence
5 satisfactory to the department, and such liquid fuels used or
6 sold and delivered as are not within the taxing power of this
7 Commonwealth under the Commerce Clause of the Constitution of
8 the United States and excepting liquid fuels used as fuel in
9 aircraft or aircraft engines and excepting liquid fuels
10 delivered to the Commonwealth, every political subdivision, any
11 volunteer fire company, any volunteer ambulance service, any
12 volunteer rescue squad, any second class county port authority,
13 any cemetery for use in nonlicensed vehicles or equipment for
14 cemetery purposes, and nonpublic schools not operated for profit
15 on presentation of evidence satisfactory to the department. The
16 tax herein imposed and assessed shall be collected by and paid
17 to the Commonwealth but once in respect to any liquid fuels.
18 In lieu of the foregoing taxes, a permanent State tax of one
19 and one-half cents a gallon, or fractional part thereof, is
20 hereby imposed and assessed upon all liquid fuels used or sold
21 and delivered by distributors within this Commonwealth for use
22 as fuel in propeller-driven piston engine aircraft or aircraft
23 engines, and, except as hereinafter provided, one and one-half
24 cents a gallon, or fractional part thereof, upon all liquid
25 fuels used or sold and delivered by distributors within this
26 Commonwealth for use as fuel in turbine propeller jet, turbo-
27 jet, or jet driven aircraft and aircraft engines. Beginning
28 January 1, 1960, and thereafter, a State tax of one cent a
29 gallon, or fractional part thereof, is hereby imposed and
30 assessed upon all liquid fuels used or sold and delivered by
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1 distributors within this Commonwealth for use as fuel in turbine
2 propeller jet, turbo-jet, or jet driven aircraft and aircraft
3 engines.
4 Distributors shall be liable to the Commonwealth for the
5 collection and payment of the tax imposed by this act. The tax
6 imposed by this act shall be collected by the distributor at the
7 time the liquid fuels are used or sold and delivered by the
8 distributor and shall be borne by the consumer.
9 The department shall allow such handling and storage losses
10 of liquid fuels as are substantiated to its satisfaction.
11 Section 2. Section 17 of the act, amended March 12, 1957
12 (P.L.8, No.3), July 15, 1969 (P.L.161, No.65) and December 19,
13 1975 (P.L.556, No.156), is amended to read:
14 Section 17. Refunds.--The Board of Finance and Revenue may
15 refund to distributors taxes, penalties, and interest paid by
16 them on liquid fuels delivered to the United States government,
17 or paid as the result of an error of law or of fact or of both
18 law and fact. Claims for such refunds shall be made under the
19 procedure prescribed by The Fiscal Code.
20 Any person who shall use or buy liquid fuels on which the tax
21 imposed by this act shall have been paid and shall consume the
22 same (i) in the operation of any nonlicensed farm tractor or
23 licensed farm tractor when used off the highways for
24 agricultural purposes or nonlicensed powered farm machinery for
25 purposes relating to the actual production of farm products or
26 (ii) in the operation of a vehicle of a volunteer fire company,
27 volunteer ambulance service or volunteer rescue squad or (iii)
28 in the operation of a nonlicensed vehicle or equipment by a
29 cemetery for cemetery purposes shall be reimbursed the full
30 amount of such tax.
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1 When the tax imposed by this act shall have been paid and the
2 fuel on which such tax has been imposed shall have been consumed
3 in the operation of motorboats or watercraft upon the waters of
4 the Commonwealth, including waterways bordering on the
5 Commonwealth, the full amount of such tax shall be refunded to
6 the Boating Fund of the Fish Commission on petition to the Board
7 of Finance and Revenue in accordance with prescribed procedures.
8 In accordance with such procedures, the Pennsylvania Fish
9 Commission shall biannually calculate the amount of liquid fuels
10 tax consumed by said motorcraft and furnish such information
11 relating to its calculations and data as may be prescribed or
12 required by the Board of Finance and Revenue. This board shall
13 review the petition and motorboat fuel consumption calculations
14 of the Pennsylvania Fish Commission and then determine the
15 amount of liquid fuels tax paid on liquid fuels consumed in the
16 propulsion of motorboats and other motorcraft on the waters of
17 the Commonwealth, including waterways bordering on the
18 Commonwealth, and shall certify to the State Treasurer to refund
19 annually to the Boating Fund of the Fish Commission the amount
20 so determined. The Department of [Highways] Transportation shall
21 be accorded the right to appear at such proceedings and make its
22 views known.
23 Said moneys shall be used by the Pennsylvania Fish Commission
24 acting by itself or by agreement with other State and Federal
25 agencies including, but not limited to, the Navigation
26 Commission for the Delaware River, the Department of [Forests
27 and Waters] Environmental Resources, the Department of Health,
28 and the Federal Bureau of Outdoor Recreation, only for the
29 improvement of the waters of Pennsylvania on which motorboats
30 are permitted to operate and may be used, including but not
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1 limited to the development and construction of motorboat areas;
2 the dredging and clearing of water areas where motorboats can be
3 used; the placement and replacement of navigational aids; the
4 purchase, development and maintenance of public access sites and
5 facilities to and on waters where motorboating is permitted; the
6 patrolling of motorboating waters; the publishing of nautical
7 charts in those areas of Pennsylvania not covered by nautical
8 charts published by the United States Coast and Geodetic Survey
9 or the United States Army Engineers; and the administrative
10 expenses arising out of such activities.
11 Any person who shall use or buy any liquid fuel on which a
12 tax imposed by this act in excess of one and one-half cents a
13 gallon shall have been paid and shall use such liquid fuel in
14 propeller-driven aircraft or aircraft engines, or who shall use
15 or buy any liquid fuel on which a tax imposed by this act in
16 excess of one and one-half cents per gallon shall have been paid
17 and shall use such liquid fuel in jet or turbo-jet propelled
18 aircraft or aircraft engines, shall be reimbursed in the amount
19 of such excess.
20 All such claims for reimbursement shall be made upon a form
21 to be furnished by the Board of Finance and Revenue and shall
22 include, in addition to such other information as the board may
23 by regulation prescribe, the name and address of the claimant,
24 the period of time and the number of gallons of liquid fuels
25 used for which reimbursement is claimed, a description of the
26 farm or cemetery machinery, aircraft or aircraft engine in which
27 such liquid fuels have been used and the purposes for which such
28 machinery, aircraft or aircraft engine has been used, the size
29 of the farm or cemetery and part thereof in cultivation or use
30 on which such liquid fuels have been used. Each such claim shall
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1 contain statements that the liquid fuels for which reimbursement
2 is claimed have been used only for purposes for which
3 reimbursements are permitted, that records of the amounts of
4 such fuels used in each piece of farm or cemetery machinery,
5 aircraft or aircraft engine have been kept, and that no part of
6 such claim has been paid except as stated. Each such claim shall
7 contain a declaration that it and accompanying receipts are true
8 and correct to the best of claimant's knowledge and shall be
9 signed by the claimant or the person claiming on his behalf.
10 Every claim shall be accompanied by receipts indicating that the
11 liquid fuels or excess liquid fuels tax was paid on the liquid
12 fuels for which reimbursement is claimed. All records of
13 purchases of liquid fuels and use in each tractor or powered
14 machinery, aircraft or aircraft engine shall be kept for a
15 period of two years. Every such claim shall be made annually for
16 the preceding year ending on the thirtieth day of June and shall
17 be submitted to the Board of Finance and Revenue not later than
18 the thirtieth day of September of each year and the board shall
19 refuse to consider any claim received or postmarked later than
20 such date. The claimant shall satisfy the board that he has paid
21 the tax and that the liquid fuels have been consumed by him for
22 purposes for which reimbursements are permitted under this
23 section. The board may require any claimant to furnish such
24 further information, proof, or fuller explanation as it shall
25 deem necessary. The action of the Board of Finance and Revenue
26 in granting or refusing reimbursement shall be final. The board
27 shall deduct the sum of one dollar and fifty cents ($1.50),
28 which shall be considered as a filing fee, from every claim for
29 reimbursement granted. Such filing fees are hereby specifically
30 appropriated to the Board of Finance and Revenue and to the
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1 Department of Revenue for expenses of any nature whatsoever
2 incurred in the administration of the reimbursement provisions
3 of this act. The Board of Finance and Revenue shall have the
4 power to refer to the Department of Revenue, for investigation,
5 any claim for reimbursement filed under the provisions of this
6 act and it shall be the duty of the Department of Revenue to
7 investigate such application and report to the Board of Finance
8 and Revenue relative thereto. Any person making any false or
9 fraudulent statement for the purpose of obtaining reimbursement
10 shall be guilty of a misdemeanor, and, upon conviction thereof,
11 shall be sentenced to pay a fine of not more than one thousand
12 dollars ($1000) or to undergo imprisonment for not more than six
13 (6) months, or both.
14 All refunds and reimbursements of moneys allowed hereunder
15 shall be paid from the Motor License Fund and the Liquid Fuels
16 Tax Fund in amounts equal to the original distribution and
17 payment of such moneys into said funds: Provided, That
18 reimbursement for taxes paid on liquid fuels consumed in the
19 operation of tractors and powered machinery for purposes
20 relating to the actual production of farm products and in the
21 operation of vehicles and machinery for the operation of
22 cemeteries and reimbursement for taxes paid on liquid fuels used
23 in aircraft or aircraft engines shall be paid out of the Motor
24 License Fund.
25 As much of the moneys, from time to time, in the Motor
26 License Fund and the Liquid Fuels Tax Fund, as may be necessary,
27 is hereby appropriated to the Board of Finance and Revenue for
28 the purpose of making refunds and reimbursements as herein
29 authorized. Estimates of the amounts to be expended from these
30 funds for refunds and reimbursements, from time to time, by the
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1 board shall be submitted to the Governor for his approval or
2 disapproval as in the case of other appropriations to
3 administrative departments, boards and commissions; and it shall
4 be unlawful for the Auditor General to honor any requisition of
5 the Board of Finance and Revenue for the expenditure of moneys
6 hereunder in excess of the estimates approved by the Governor.
7 The provisions of this section relating to reimbursement of
8 taxes paid on liquid fuels consumed in the operation of tractors
9 and powered machines for purposes relating to the actual
10 production of farm products shall apply only to liquid fuels
11 purchased on and after the first day of July, one thousand nine
12 hundred fifty-five.
13 The Pennsylvania Aeronautics Commission is authorized to make
14 allocations of taxes collected under this act to airports in
15 proportion to the average of their allocations received from the
16 Pennsylvania Aeronautics Commission during the period for which
17 they have received such allocations not to exceed five years or,
18 in the case of airports having no such allocation experience, in
19 equal proportion with other airports based upon comparative
20 collections under this tax. In no case shall the amount
21 apportioned to the airport be less than the highest amount
22 apportioned in any one of the previous five years.
23 Section 3. This act shall take effect immediately.
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