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PRIOR PRINTER'S NO. 1965
PRINTER'S NO. 2017
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1549
Session of
2019
INTRODUCED BY MIHALEK, GABLER, MASSER, REESE, PICKETT, KAUFFMAN,
DUNBAR, GROVE, RYAN, STAATS, WEBSTER, BERNSTINE, CONKLIN,
OTTEN, STRUZZI, FEE, HEFFLEY, THOMAS AND KAIL, JUNE 3, 2019
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 5, 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
definitions and for imposition of tax; AND, IN SPECIAL TAXING
AUTHORITY, FURTHER PROVIDING FOR SPECIAL TAXING AUTHORITY.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 201(g) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a subclause and the section is amended by adding
clauses to read:
Section 201. Definitions.--* * *
(g) "Purchase price."
* * *
(9) The purchase price of "malt or brewed beverages" sold by
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a "manufacturer of malt or brewed beverages" directly to the
ultimate consumer for consumption on premises shall be twenty-
five per cent of the retail SALES price of the product sold to
the ultimate consumer "MALT OR BREWED BEVERAGES" SOLD for
consumption on premises.
* * *
(eee) "Liquor." Liquor as that term is defined in the
"Liquor Code."
(fff) "Malt or brewed beverages." Malt or brewed beverages
as that term is defined in the "Liquor Code."
(ggg) "Manufacturer of malt or brewed beverages."
Manufacturer of malt or brewed beverages as that term is defined
in the "Liquor Code."
(hhh) "Retail dispenser." Retail dispenser as that term is
defined in the "Liquor Code."
(iii) "Retail liquor licensee." A retail liquor license for
any premises kept or operated by a hotel, restaurant or club
issued by the Pennsylvania Liquor Control Board.
Section 2. Section 202 of the act is amended by adding a
clause to read:
Section 202. Imposition of Tax.--* * *
(h) (1) Notwithstanding any other provision of this
article, tax THE TAX SHALL BE IMPOSED ON A MANUFACTURER OF MALT
OR BREWED BEVERAGES with respect to sales of malt or brewed
beverages sold by a manufacturer of malt or brewed beverages
directly to the ultimate consumer for consumption on premises
shall be imposed on the manufacturer at the time of the sale to
the ultimate consumer within this Commonwealth and shall be paid
and reported by the manufacturer to the department in the time
and manner provided in this article .
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(2) THE TAX IMPOSED UNDER PARAGRAPH (1) SHALL BE PAID AND
REPORTED BY THE MANUFACTURER OF MALT OR BREWED BEVERAGES TO THE
DEPARTMENT IN THE TIME AND MANNER PROVIDED IN THIS ARTICLE.
(3) NOTWITHSTANDING ANY LAW TO THE CONTRARY, NOTHING IN THIS
CLAUSE SHALL PREVENT A LOCAL GOVERNMENT AUTHORIZED TO IMPOSE A
LOCAL ALCOHOLIC BEVERAGE TAX UNDER THE ACT OF JUNE 10, 1971
(P.L.153, NO.7), KNOWN AS THE FIRST CLASS SCHOOL DISTRICT LIQUOR
SALES TAX ACT OF 1971, OR 53 PA.C.S. ยง 8602 (RELATING TO LOCAL
FINANCIAL SUPPORT), FROM IMPOSING A LOCAL ALCOHOLIC BEVERAGE TAX
ON THE SALE AT RETAIL MADE BY A MANUFACTURER OF MALT OR BREWED
BEVERAGES TO THE ULTIMATE CONSUMER FOR CONSUMPTION ON PREMISES.
SECTION 3. SECTION 201-B(B), (C), (D) AND (E)(1) OF THE ACT
ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A SUBSECTION TO
READ:
SECTION 201-B. SPECIAL TAXING AUTHORITY.
* * *
(A.1) ADDITIONAL TAX ON MALT OR BREWED BEVERAGES SOLD BY
MANUFACTURERS OF MALT OR BREWED BEVERAGES.--
(1) A CITY OF THE FIRST CLASS MAY ELECT TO IMPOSE A TAX
ON THE SALE AT RETAIL OF MALT OR BREWED BEVERAGES SOLD BY A
MANUFACTURER OF MALT OR BREWED BEVERAGES DIRECTLY TO THE
ULTIMATE CONSUMER FOR CONSUMPTION OFF PREMISES, AS THOSE
TERMS ARE DEFINED IN SECTION 201.
(2) THE TAX IMPOSED UNDER PARAGRAPH (1) SHALL BE IN
ADDITION TO THE TAXES AUTHORIZED UNDER SECTION 503(A) AND (B)
OF THE ACT OF JUNE 5, 1991 (P.L.9, NO.6), KNOWN AS THE
PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR
CITIES OF THE FIRST CLASS, SECTION 202(A) AND (B) AND
SUBSECTION (A) .
(3) A TAX IMPOSED UNDER PARAGRAPH (1) ON SALES OR USES
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SHALL BE PAID TO AND RECEIVED BY THE DEPARTMENT OF REVENUE
AND, ALONG WITH INTEREST AND PENALTIES, LESS ANY REFUNDS AND
CREDITS PAID, SHALL BE CREDITED TO THE LOCAL SALES AND USE
TAX FUND CREATED UNDER THE PENNSYLVANIA INTERGOVERNMENTAL
COOPERATION AUTHORITY ACT FOR CITIES OF THE FIRST CLASS .
MONEY IN THE FUND SHALL BE DISBURSED AS PROVIDED IN SECTION
509 OF THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATION
AUTHORITY ACT FOR CITIES OF THE FIRST CLASS .
(B) RATE.--
(1) THE TAX AUTHORIZED UNDER SUBSECTION (A) SHALL BE
IMPOSED AND COLLECTED AT THE RATE OF 1% AND SHALL BE COMPUTED
AS SET FORTH IN SECTION 503(E)(2) OF THE PENNSYLVANIA
INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR CITIES OF THE
FIRST CLASS.
(2) THE TAX AUTHORIZED UNDER SUBSECTION (A.1) SHALL BE
IMPOSED AND COLLECTED AT A RATE OF 2%.
(C) COLLECTION.--THE TAX AUTHORIZED UNDER [SUBSECTION (A)]
SUBSECTIONS (A) AND (A.1) SHALL BE ADMINISTERED, COLLECTED,
DEPOSITED AND DISBURSED IN THE SAME MANNER AS THE TAX IMPOSED
UNDER CHAPTER 5 OF THE PENNSYLVANIA INTERGOVERNMENTAL
COOPERATION AUTHORITY ACT FOR CITIES OF THE FIRST CLASS, AND THE
SITUS OF THE TAX SHALL BE DETERMINED IN ACCORDANCE WITH THE
PENNSYLVANIA INTERGOVERNMENTAL COOPERATION AUTHORITY ACT FOR
CITIES OF THE FIRST CLASS AND ARTICLE II-A. THE DEPARTMENT OF
REVENUE SHALL USE THE MONEY RECEIVED FROM THE TAX AUTHORIZED
UNDER CHAPTER 5 OF THE PENNSYLVANIA INTERGOVERNMENTAL
COOPERATION AUTHORITY ACT FOR CITIES OF THE FIRST CLASS TO COVER
COSTS FOR THE ADMINISTRATION OF THE TAX AUTHORIZED UNDER
[SUBSECTION (A)] SUBSECTIONS (A) AND (A.1). THE DEPARTMENT OF
REVENUE SHALL NOT RETAIN ANY ADDITIONAL AMOUNTS FOR THE COST OF
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COLLECTING THE TAX AUTHORIZED UNDER [SUBSECTION (A)] SUBSECTIONS
(A) AND (A.1). NO ADDITIONAL FEE SHALL BE CHARGED FOR A LICENSE
OR LICENSE RENEWAL OTHER THAN THE LICENSE OR RENEWAL FEE
AUTHORIZED AND IMPOSED UNDER ARTICLE II.
(D) MUNICIPAL ACTION.--IN ORDER TO IMPOSE THE TAX UNDER
SUBSECTIONS (A) AND (A.1), THE GOVERNING BODY OF THE CITY SHALL
ADOPT AN ORDINANCE STATING THE TAX RATE. THE ORDINANCE MAY BE
ADOPTED PRIOR TO THE EFFECTIVE DATE OF THIS SUBSECTION. THE
ORDINANCE SHALL TAKE EFFECT NO EARLIER THAN 20 DAYS AFTER THE
ADOPTION OF THE ORDINANCE OR 20 DAYS AFTER THE EFFECTIVE DATE OF
THIS SECTION, WHICHEVER IS LATER. A CERTIFIED COPY OF THE CITY
ORDINANCE SHALL BE DELIVERED TO THE DEPARTMENT OF REVENUE WITHIN
TEN DAYS PRIOR TO OR AFTER THE EFFECTIVE DATE OF THE ORDINANCE.
A CERTIFIED COPY OF AN ORDINANCE TO REPEAL THE TAX AUTHORIZED
UNDER [SUBSECTION (A)] SUBSECTIONS (A) AND (A.1) SHALL BE
DELIVERED TO THE DEPARTMENT OF REVENUE AT LEAST 30 DAYS PRIOR TO
THE EFFECTIVE DATE OF REPEAL.
(E) USE OF TAX RECEIPTS.--
(1) MONEY RECEIVED BY THE CITY FROM THE LEVY, ASSESSMENT
AND COLLECTION OF THE TAX AUTHORIZED UNDER [SUBSECTION (A)]
SUBSECTIONS (A) AND (A.1) MAY ONLY BE PAID TO A SCHOOL
DISTRICT OF THE FIRST CLASS IN AN AMOUNT OF UP TO
$120,000,000 IF THE SECRETARY OF EDUCATION HAS MADE A
DETERMINATION, IN THE FORM OF AN ANNUAL CERTIFICATION
PUBLISHED IN THE PENNSYLVANIA BULLETIN, THAT THE SCHOOL
DISTRICT OF THE FIRST CLASS HAS, IN THE JUDGMENT OF THE
SECRETARY OF EDUCATION, BEGAN IMPLEMENTATION OF REFORMS THAT
PROVIDE FOR FISCAL STABILITY, EDUCATIONAL IMPROVEMENT AND
OPERATIONAL CONTROL.
* * *
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Section 3 4. This act shall take effect in 60 days.
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