PRINTER'S NO. 764
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
728
Session of
2019
INTRODUCED BY DeLUCA, McNEILL, HILL-EVANS, READSHAW AND NEILSON,
MARCH 6, 2019
REFERRED TO COMMITTEE ON FINANCE, MARCH 6, 2019
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," in sales and use tax, further providing for
exclusions from tax and providing for political advertisement
tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 204(35) 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 204. Exclusions from Tax.--The tax imposed by
section 202 shall not be imposed upon any of the following:
* * *
(35) [The] Except as provided in Part V-B, the sale at
retail or use of mail order catalogs and direct mail advertising
literature or materials, including electoral literature or
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materials, such as envelopes, address labels and a one-time
license to use a list of names and mailing addresses for each
delivery of direct mail advertising literature or materials,
including electoral literature or materials, through the United
States Postal Service.
Section 2. Article II of the act is amended by adding a part
to read:
PART V-B
POLITICAL ADVERTISEMENT TAX
Section 214. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Media company." An entity which broadcasts, publishes or
otherwise communicates a political advertisement for a fee.
"Political advertisement." A communication by means of any
broadcast, cable or satellite communication, newspaper,
magazine, outdoor advertising facility, mass mailing or
telephone bank to the general public which advocates a candidate
for public office or a political party or any other form of
advertisement whose primary function is to disseminate a
political message.
"Sale at retail." A transfer for consideration of the
ownership, custody or possession of a political advertisement,
including the grant of a license to use or consume the
advertisement, whether the transfer is absolute or conditional
and regardless of how the transfer is made.
"Use." The exercise of any right or power incidental to the
ownership, custody or possession of a political advertisement,
including transportation, storage or consumption. The term shall
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include the printing of a political advertisement when a media
company furnishes, either directly or indirectly, the articles
used in printing.
Section 214.1. Imposition of tax.
(a) Sales tax.--There is imposed upon each separate sale at
retail of a political advertisement in this Commonwealth a tax
of 6% of the purchase price, which shall be collected by a media
company from any purchaser and shall be paid over to the
Commonwealth as provided under this part.
(b) Use tax.--There is imposed on the use within this
Commonwealth of a political advertisement purchased at retail a
tax of 6% of the purchase price, which shall be paid to the
Commonwealth by the person who makes the use, except that the
tax shall not be paid to the Commonwealth by that person where
the tax imposed under subsection (a) is or has been paid or the
tax imposed under this subsection is paid by the media company
with regard to the use.
Section 214.2. Credit for sales and use taxes paid.
A purchaser may claim a credit for taxes paid under this
article.
Section 214.3. Deposit of money.
Money collected from the tax imposed under this part, and
interest earned on the money, shall be deposited into the
General Fund.
Section 214.4. Rules and regulations.
The department may promulgate rules and regulations for the
implementation and administration of this part.
Section 3. This act shall take effect in 60 days.
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