PRINTER'S NO. 2850
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2014
Session of
2019
INTRODUCED BY KAUFER, MILLARD, OWLETT AND ZIMMERMAN,
NOVEMBER 14, 2019
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 14, 2019
AN ACT
Establishing the Transportation Reinvestment and Improvement
Program; and providing for transfers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the
Transportation Reinvestment and Improvement Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Transportation of the
Commonwealth.
"Eligible tax." Any of the following taxes:
(1) Corporate net income tax, capital stock and
franchise tax, bank shares tax, personal income tax paid by
shareholders, members or partners of Subchapter S
corporations, limited liability companies, partnerships or
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sole proprietors on income other than passive activity income
as defined under section 469 of the Internal Revenue Code of
1986 (Public Law 99-516, 26 U.S.C. § 1 et seq.) or business
privilege tax.
(2) Sales and use tax, only to the extent the tax is
related to the activity of a qualified business. The term
includes sales and use taxes on material used for
construction by the qualified business and business personal
property to be used by the qualified business.
(3) The hotel occupancy tax imposed under Part V of
Article II of the act of March 4, 1971 (P.L.6, No.2), known
as the Tax Reform Code of 1971.
(4) Personal income tax withheld from its employees by a
qualified business for work performed by the qualified
business.
(5) All taxes paid to the Commonwealth, or an amount
equal to all of the taxes paid to the Commonwealth, related
to the purchase or sale of liquor, wine or malt or brewed
beverages by a licensee who is a qualified business.
"Fund." The Transportation Reinvestment Improvement Program
Fund established under section 4.
"Office." The Office of the Budget.
"Program." The Transportation Reinvestment and Improvement
Program established under section 3.
"Qualified business." An entity that is awarded funding
through the program. The term does not include an agent, broker
or representative of a business.
Section 3. The Transportation Reinvestment and Improvement
Program.
(a) Establishment.--The Transportation Reinvestment and
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Improvement Program is established in the department.
(b) Certain costs funded by program.--The department shall
pay up to 80% of all fees, costs and expenses for a qualified
business which are incident to or arise from the qualified
business obtaining a highway occupancy permit from the
department, including inspection costs and the cost of related
highway improvements that increased traffic or surface drainage
may necessitate.
(c) Application.--The department shall prescribe the form
and manner in which a highway occupancy permittee may apply to
become a qualified business under the program.
Section 4. Transportation Reinvestment Improvement Program
Fund.
(a) Establishment.--A special fund is established within the
State Treasury to be known as the Transportation Reinvestment
Improvement Program Fund.
(b) Initial transfer.--The department shall make an initial
transfer of $25,000,000 from the Multimodal Transportation Fund
established under 74 Pa.C.S. § 2102 (relating to Multimodal
Transportation Fund) to the fund on or before July 1 of the
fiscal year following the effective date of this act.
(c) Use of money in fund.--Money in the fund shall be used
only for the purposes of the program established under this act.
Section 5. Report.
(a) Qualified business report.--No later than June 15 in the
year following a qualified business's approval and June 15 of
each year thereafter, each qualified business shall file a
report with the Department of Revenue in a form or manner
required by the Department of Revenue which includes all of the
following:
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(1) Amount of each eligible tax which was paid to the
Commonwealth by the qualified business in the prior calendar
year.
(2) Amount of each eligible tax refund received from the
Commonwealth in the prior calendar year by the qualified
business.
(b) Penalties.--
(1) Failure to file a timely and complete report under
subsection (a) may result in the imposition of a penalty of
the lesser of:
(i) 10% of all eligible tax due the taxing authority
in the prior calendar year; or
(ii) $1,000.
(2) A penalty for a violation of subsection (a) shall be
imposed, assessed and collected by the Department of Revenue
under the procedures of Article II of the act of March 4,
1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
Money collected under this paragraph shall be deposited in
the fund.
Section 6. Certification.
By October 15 following the year of approval as a qualified
business, and October 15 of each year thereafter, the Department
of Revenue shall do the following for each qualified business
for the prior calendar year:
(1) For a qualified business which files a qualified
business report for the prior calendar year, determine an
amount by subtracting the amount of eligible tax refunds
received from the amount of eligible tax paid.
(2) Certify to the office the amount calculated under
paragraph (1).
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Section 7. Transfers.
(a) Office.--Within 10 days of receiving the certified
amount from the Department of Revenue under section 6, the State
Treasurer shall transfer an amount equal to the amount certified
under section 6 from the General Fund to the fund in accordance
with subsection (b).
(b) State Treasurer.--The State Treasurer shall transfer to
the fund the amount directed under subsection (a) until the
initial funds, along with an additional 10% of the amount of the
initial funds, expended by the department for the qualified
business under this act are retired.
Section 8. Effective date.
This act shall take effect in 60 days.
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