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                                                       PRINTER'S NO. 114



No. 95 Session of 2003



                                     AN ACT

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

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Sections 201(g)(8), (m) and (yy), 202(f) and
    16  204(60) of the act of March 4, 1971 (P.L.6, No.2), known as the
    17  Tax Reform Code of 1971, amended or added May 24, 2000 (P.L.106,
    18  No.23), are amended to read:
    19     Section 201.  Definitions.--The following words, terms and
    20  phrases when used in this Article II shall have the meaning
    21  ascribed to them in this section, except where the context
    22  clearly indicates a different meaning:
    23     * * *

     1     (g)  "Purchase price."
     2     * * *
     3     [(8)  The purchase price of prebuilt housing shall be sixty
     4  per cent of the manufacturer's selling price: Provided, however,
     5  That a manufacturer of prebuilt housing who precollects tax from
     6  a prebuilt housing builder at the time of the sale to the
     7  prebuilt housing builder shall have the option to collect tax on
     8  sixty per cent of the selling price or on one hundred per cent
     9  of the actual cost of the supplies and materials used in the
    10  manufacture of the prebuilt housing.]
    11     * * *
    12     (m)  "Tangible personal property." Corporeal personal
    13  property including, but not limited to, goods, wares,
    14  merchandise, steam and natural and manufactured and bottled gas
    15  for non-residential use, electricity for non-residential use,
    16  prebuilt housing, prepaid telecommunications, premium cable or
    17  premium video programming service, spirituous or vinous liquor
    18  and malt or brewed beverages and soft drinks, interstate
    19  telecommunications service originating or terminating in the
    20  Commonwealth and charged to a service address in this
    21  Commonwealth, intrastate telecommunications service with the
    22  exception of (i) subscriber line charges and basic local
    23  telephone service for residential use and (ii) charges for
    24  telephone calls paid for by inserting money into a telephone
    25  accepting direct deposits of money to operate, provided further,
    26  the service address of any intrastate telecommunications service
    27  is deemed to be within this Commonwealth or within a political
    28  subdivision, regardless of how or where billed or paid. In the
    29  case of any such interstate or intrastate telecommunications
    30  service, any charge paid through a credit or payment mechanism
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     1  which does not relate to a service address, such as a bank,
     2  travel, credit or debit card, but not including prepaid
     3  telecommunications, is deemed attributable to the address of
     4  origination of the telecommunications service.
     5     * * *
     6     (yy)  "Prebuilt housing sale."  A sale of prebuilt housing to
     7  a prebuilt housing purchaser, including a sale to a landlord,
     8  without regard to whether the person making the sale is
     9  responsible for installing the prebuilt housing or whether the
    10  prebuilt housing [becomes a real estate structure] is used for
    11  residential purposes upon installation. Temporary installation
    12  by a prebuilt housing builder for display purposes of a unit
    13  held for resale shall not be considered occupancy for
    14  residential purposes.
    15     * * *
    16     Section 202.  Imposition of Tax.--* * *
    17     (f)  Notwithstanding any other provision of this article, tax
    18  with respect to sales of prebuilt housing shall be imposed on
    19  the prebuilt housing [builder] purchaser at the time of the
    20  prebuilt housing sale within this Commonwealth and shall be
    21  [paid] collected and reported by the prebuilt housing builder to
    22  the department in the time and manner provided in this article[:
    23  Provided, however, That a manufacturer of prebuilt housing may,
    24  at its option, precollect the tax from the prebuilt housing
    25  builder at the time of sale to the prebuilt housing builder]. In
    26  any case where prebuilt housing is purchased and the tax is not
    27  [paid] collected by the prebuilt housing builder or
    28  [precollected] by the manufacturer, the prebuilt housing
    29  purchaser shall remit tax directly to the department if the
    30  prebuilt housing is used in this Commonwealth [without regard to
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     1  whether the prebuilt housing becomes a real estate structure].
     2  Prebuilt housing shall not be classified as real property and
     3  shall not be subject to any local real property or real estate
     4  taxation.
     5     Section 204.  Exclusions from Tax.--The tax imposed by
     6  section 202 shall not be imposed upon any of the following:
     7     * * *
     8     [(60)  The sale or use of used prebuilt housing.]
     9     * * *
    10     Section 2.  This act shall take effect January 1, 2004, or
    11  immediately, whichever is later.

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