PRINTER'S NO. 851
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
779
Session of
2019
INTRODUCED BY HICKERNELL, MURT, SCHMITT, SOLOMON, FEE, JAMES,
STAATS, ZIMMERMAN, RYAN, MENTZER, CIRESI, TOOHIL AND GILLEN,
MARCH 11, 2019
REFERRED TO COMMITTEE ON FINANCE, MARCH 11, 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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 204(49) 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:
* * *
(49) The sale at retail or use of food and beverages by
nonprofit associations which support sports programs or youth
centers. For purposes of this clause, the phrases:
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(i) "nonprofit association" means an entity which is
organized as a nonprofit corporation or nonprofit unincorporated
association under the laws of this Commonwealth or the United
States or any entity which is authorized to do business in this
Commonwealth as a nonprofit corporation or unincorporated
association under the laws of this Commonwealth, including, but
not limited to, youth or athletic associations, volunteer fire,
ambulance, religious, charitable, fraternal, veterans, civic, or
any separately chartered auxiliary of the foregoing, if
organized and operated on a nonprofit basis;
(iv) "sports program" means baseball (including softball),
football, basketball, soccer and any other competitive sport
formally recognized as a sport by the United States Olympic
Committee as specified by and under the jurisdiction of the
Amateur Sports Act of 1978 (Public Law 95-606, 36 U.S.C. § 371
et seq.), the Amateur Athletic Union or the National Collegiate
Athletic Association. The term shall be limited to a program or
that portion of a program that is organized for recreational
purposes and whose activities are substantially for such
purposes and which is primarily for participants who are 18
years of age or younger or whose 19th birthday occurs during the
year of participation or the competitive season, whichever is
longer. There shall, however, be no age limitation for programs
operated for persons with physical handicaps or persons with
mental retardation;
(v) "support" means:
(A) the funds raised from sales are used to pay the expenses
of a sports program or a youth center; or
(B) the nonprofit association sells the food and beverages
at a youth center or a location where a sports program is being
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conducted under this act[.];
(vi) " youth center " means a fixed location used primarily
for programs for individuals who are 19 years of age or younger
as long as the programs are:
(A) conducted primarily by volunteers;
(B) designed to advance recreational, civic or moral
objectives; and
(C) conducted by an organization that is qualified under
section 501(c)(3) of the Internal Revenue Code of 1986 (Public
Law 99-514, 26 U.S.C. § 501 (c)(3)) and that has obtained an
exemption number from the department as a charitable
organization under clause (10).
* * *
Section 2. The amendment of section 204(49) of the act shall
apply to sales at retail or uses after December 31, 2019.
Section 3. This act shall take effect immediately.
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