THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY CALTAGIRONE, EACHUS, McCALL AND D. EVANS, JULY 17, 2009

REFERRED TO COMMITTEE ON APPROPRIATIONS, JULY 17, 2009  

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," providing for an optional sales and use tax for

third class counties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 201 introductory paragraph of the act of

March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971, is amended to read:

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

phrases when used in this Article II or in Article II-B shall

have the meaning ascribed to them in this section, except where

the context clearly indicates a different meaning:

* * *

Section 2.  The act is amended by adding an article to read:

ARTICLE II-B

OPTIONAL SALES AND USE TAX FOR COUNTIES OF THE THIRD CLASS

Section 201-B.  Definitions.

(a)  Article II.--The definitions in section 201 apply to

this article.

(b)  Specific.--The following words and phrases when used in

this article shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"County."  A county of the third class.

"Fund."  The Local Sales and Use Tax Fund.

Section 202-B.  Construction.

(a)  Additional tax.--The tax imposed by a county under this

article shall be in addition to any tax imposed by the

Commonwealth under Article II.

(b)  Article II.--Except for the differing situs provisions

under section 204-B, Article II applies to this article.

Section 203-B.  Imposition.

(a)  Sales.--

(1)  The governing body of a county may levy, assess and

collect, upon each separate sale at retail of tangible

personal property or services within the county, a tax on the

purchase price.

(2)  The tax shall be collected by the vendor from the

purchaser and shall be paid over to the Commonwealth as

provided in this article.

(b)  Use.--

(1)  If a county imposes the tax under subsection (a),

the governing body of the county shall levy, assess and

collect, upon the use within the county of tangible personal

property purchased at retail and of services purchased at

retail, a tax on the purchase price.

(2)  Except as set forth in paragraph (3), the tax shall

be paid over to the Commonwealth by the person that makes the

use.

(3)  The tax shall not be paid over to the Commonwealth

by a person that, with respect to the same taxable subject:

(i)  has paid the tax under subsection (a); or

(ii)  has paid the tax imposed by this subsection to

the vendor.

(c)  Rate and uniformity.--The rate of the tax authorized by

this section shall be 1%.

(d)  Computation.--The tax under this section shall be

computed as follows:

(1)  If the purchase price is 50¢ or less, no tax shall

be collected.

(2)  If the purchase price is 51¢ or more but less than

$1.51, 1¢ shall be collected.

(3)  If the purchase price is $1.51 or more but less than

$2.51, 2¢ shall be collected.

(4)  If the purchase price is $2.51 or more but less than

$3.51, 3¢ shall be collected.

(5)  If the purchase price is $3.51 or more but less than

$4.51, 4¢ shall be collected.

(6)  If the purchase price is $4.51 or more but less than

$5.51, 5¢ shall be collected.

(7)  If the purchase price is $5.51 or more but less than

$6.51, 6¢ shall be collected.

(8)  If the purchase price is $6.51 or more but less than

$7.51, 7¢ shall be collected.

(9)  If the purchase price is $7.51 or more but less than

$8.51, 8¢ shall be collected.

(10)  If the purchase price is $8.51 or more but less

than $9.51, 9¢ shall be collected.

(11)  If the purchase price is $9.51 or more but less

than $10.01, 10¢ shall be collected.

(12)  If the purchase price is more than $10, 1% of each

$10 purchase price plus the above bracket charges upon any

fractional part of a $10 increment shall be collected.

Section 204-B.  Situs for imposition of tax.

(a)  Situs for retail sales.--Except as otherwise set forth

in this section, a sale at retail shall be deemed to be

consummated at the place of business of the retailer. If a

retailer has more than one place of business in this

Commonwealth which participates in the sale, the sale shall be

deemed to be consummated at the place of business of the

retailer where the initial order for the tangible personal

property is taken, even though the order must be forwarded

elsewhere for acceptance, approval of credit, shipment or

billing. A sale by a retailer's employee shall be deemed to be

consummated at the place of business from which that employee

works.

(b)  Out-of-State delivery.--Subsection (a) does not apply if

the tangible personal property sold is delivered by the retailer

to:

(1)  an out-of-State destination;

(2)  a common carrier for delivery to an out-of-State

destination; or

(3)  the United States Post Office for delivery to an

out-of-State destination.

(c)  Situs for vehicle, aircraft and motorcraft sales.--

(1)  This subsection applies to all of the following:

(i)  A mobile home, motor vehicle, semitrailer or

trailer, as defined in 75 Pa.C.S. § 102 (relating to

definitions).

(ii)  Any aircraft, motorboat or similar item of

tangible personal property required under either Federal

or State law to be registered or licensed.

(2)  The sale at retail or use of an item listed in

paragraph (1) shall be deemed to have been completed or used

at the address of the purchaser or user.

(3)  The tax due on an item listed in paragraph (1) shall

be paid by the purchaser or user:

(i)  to the Department of Transportation at the time

of making application for the issuance of a certificate

of title; or

(ii)  if licensing by the Department of

Transportation is not required or obtained, to the

department.

(d)  Situs for utility services.--

(1)  The sale or use of steam, natural and manufactured

gas and electricity shall be deemed to occur at the service

address in the county where the meter which registers the

service is located, without regard to where the services are

rendered.

(2)  The sale or use of telephone service shall be deemed

to occur at the address where the telephone equipment is

located and to which the telephone number is assigned.

(3)  The sale or use of telegraph services shall be

deemed to occur where the telegraph originated.

Section 205-B.  Licenses.

(a)  Issuance and renewal.--

(1)  The license issued under Article II or a separate

license may be issued by the department for the collection

and reporting of the taxes imposed by section 203-B.

(2)  The license is subject to renewal periodically as

required by the department in regulations but in no event

more frequently than once within a five-year period.

(3)  No fee shall be charged for either a license or any

renewal.

(b)  Assignment.--The license shall be nonassignable.

(c)  Liability.--Failure of a person to obtain a license

shall not relieve the person of liability to pay the taxes

imposed by this article.

Section 206-B.  Department.

(a)  Administration.--The department has the following powers

and duties to administer this article:

(1)  Promulgate regulations.

(2)  Enforce this article and regulations under this

article and subsection (b).

(b)  Existing regulations.--The regulations promulgated under

section 270 shall be applicable to the taxes imposed by section

203-B insofar as the regulations are consistent with section

203-B.

(c)  Administrative costs.--The department shall use the

money to cover the cost of administration of the tax authorized

by this article, and the department shall not retain any

additional amounts for the costs of collection of the tax

authorized by this article.

Section 207-B.  Dedication and disbursement.

(a)  Fund.--

(1)  At least every two weeks, the department shall pay

to the State Treasurer the money from the tax, interest and

penalties, minus refunds and credits, under this article.

(2)  The State Treasurer shall credit the money under

paragraph (1) to the fund. During any period prior to the

credit of money, interest earned on money shall be deposited

into the fund.

(3)  Money in the fund under paragraph (2) shall be the

property of the county from which the money was collected and

shall be distributed as provided in this section.

(4)  Pending disbursement to the county, money in the

fund under paragraph (2) shall be invested as is other money

in the custody of the State Treasurer in the manner provided

by law. All earnings received from the investment or deposit

of the money shall be credited to the fund.

(5)  Money in the fund under paragraph (2):

(i)  shall not lapse at the end of any fiscal year;

(ii)  shall not be transferred to any other fund; and

(iii)  shall be used exclusively as provided in this

section.

(b)  Disbursement.--By the tenth day of the month, the State

Treasurer shall disburse to the county the total amount of money

which is, as of the last day of the previous month, contained in

the fund under subsection (a)(2) and was collected for that

county.

Section 208-B.  County action.

(a)  Adoption of ordinance.--If a county desires to impose

the tax under section 203-B, the governing body of the county

must adopt an ordinance stating the tax rate. The effective date

of the ordinance must be:

(1)  at least 30 days after adoption; and

(2)  on the first day of a month.

(b)  Notification to department.--A certified copy of a

county ordinance imposing the tax authorized by section 203-B

shall be delivered to the department within ten days after the

adoption of the ordinance.

(c)  Copy of repeal ordinance.--A certified copy of a repeal

ordinance shall be delivered to the department at least 30 days

prior to the effective date of the repeal.

Section 209-B.  Expiration.

This article shall expire July 1, 2014. Notwithstanding the

expiration of this article, tax imposed under section 203-B on

sales or uses occurring before July 1, 2014, shall be subject to

section 207-B.

Section 3.  This act shall take effect immediately.