PRINTER'S NO. 359
No. 338 Session of 2005
INTRODUCED BY SCAVELLO, LEH, BENNINGHOFF, ADOLPH, ALLEN, ARMSTRONG, BAKER, BALDWIN, BARRAR, BASTIAN, BOYD, BROWNE, BUNT, CALTAGIRONE, CAPPELLI, CAUSER, CLYMER, CORNELL, CRAHALLA, CREIGHTON, DALLY, DeLUCA, DENLINGER, ELLIS, FAIRCHILD, FICHTER, FLICK, FORCIER, GEIST, GEORGE, GINGRICH, GOODMAN, GRUCELA, HARHART, HARPER, HARRIS, HENNESSEY, HERSHEY, HESS, HICKERNELL, HUTCHINSON, KAUFFMAN, M. KELLER, KILLION, LEDERER, LESCOVITZ, MAJOR, MANN, MARSICO, McGEEHAN, McGILL, McILHATTAN, McNAUGHTON, METCALFE, MILLARD, S. MILLER, MUSTIO, NAILOR, O'NEILL, PETRARCA, PETRI, PHILLIPS, PICKETT, PYLE, READSHAW, REICHLEY, ROHRER, RUBLEY, SAINATO, SATHER, SCHRODER, SHANER, STERN, R. STEVENSON, TANGRETTI, E. Z. TAYLOR, TURZAI, WATSON, WILT, WRIGHT AND YOUNGBLOOD, FEBRUARY 8, 2005
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 8, 2005
AN ACT 1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An 2 act relating to tax reform and State taxation by codifying 3 and enumerating certain subjects of taxation and imposing 4 taxes thereon; providing procedures for the payment, 5 collection, administration and enforcement thereof; providing 6 for tax credits in certain cases; conferring powers and 7 imposing duties upon the Department of Revenue, certain 8 employers, fiduciaries, individuals, persons, corporations 9 and other entities; prescribing crimes, offenses and 10 penalties," further providing, in gross receipts tax, for the 11 imposition of tax; and making a related repeal. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 1101(a), (a.1) and (j) of the act of 15 March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 16 1971, amended or added December 23, 2003 (P.L.250, No.46), are
1 amended to read: 2 Section 1101. Imposition of Tax.--(a) General Rule.--Every 3 pipeline company, conduit company, steamboat company, canal 4 company, slack water navigation company, transportation company, 5 and every other company, association, joint-stock association, 6 or limited partnership, now or hereafter incorporated or 7 organized by or under any law of this Commonwealth, or now or 8 hereafter organized or incorporated by any other state or by the 9 United States or any foreign government, and doing business in 10 this Commonwealth, and every copartnership, person or persons 11 owning, operating or leasing to or from another corporation, 12 company, association, joint-stock association, limited 13 partnership, copartnership, person or persons, any pipeline, 14 conduit, steamboat, canal, slack water navigation, or other 15 device for the transportation of freight, passengers, baggage, 16 or oil, except motor vehicles and railroads, and every limited 17 partnership, association, joint-stock association, corporation 18 or company engaged in, or hereafter engaged in, the 19 transportation of freight or oil within this State, and every 20 telephone company , telegraph company or provider of mobile 21 telecommunications services now or hereafter incorporated or 22 organized by or under any law of this Commonwealth, or now or 23 hereafter organized or incorporated by any other state or by the 24 United States or any foreign government and doing business in 25 this Commonwealth, and every limited partnership, association, 26 joint-stock association, copartnership, person or persons, 27 engaged in telephone or telegraph business or providing mobile 28 telecommunications services in this Commonwealth, shall pay to 29 the State Treasurer, through the Department of Revenue, a tax of 30 forty-five mills with a surtax equal to five mills upon each 20050H0338B0359 - 2 -
1 dollar of the gross receipts of the corporation, company or 2 association, limited partnership, joint-stock association, 3 copartnership, person or persons, received from: 4 (1) passengers, baggage, oil and freight transported wholly 5 within this State; 6 (2) telegraph or telephone messages transmitted wholly 7 within this State and telegraph or telephone messages 8 transmitted in interstate commerce after December 31, 2005, and 9 before January 1, 2007, where such messages originate or 10 terminate in this State and the charges for such messages are 11 billed to a service address in this State, except gross receipts 12 derived from: 13 (i) the sales of access to the Internet, as set forth in 14 Article II, made to the ultimate consumer; and 15 (ii) the sales for resale to persons, partnerships, 16 associations, corporations or political subdivisions subject to 17 the tax imposed by this article upon gross receipts derived from 18 such resale of telecommunications services, including: 19 (A) telecommunications exchange access to interconnect with 20 a local exchange carrier's network; 21 (B) network elements on an unbundled basis; and 22 (C) sales of telecommunications services to interconnect 23 with providers of mobile telecommunications services; and 24 (3) mobile telecommunications services messages sourced to 25 this Commonwealth after December 31, 2005, and before January 1, 26 2007, based on the place of primary use standard set forth in 27 the Mobile Telecommunications Sourcing Act (4 U.S.C. § 117), 28 except gross receipts derived from: 29 (i) the sales of access to the Internet, as set forth in 30 Article II, made to the ultimate consumer; and 20050H0338B0359 - 3 -
1 (ii) the sales for resale to persons, partnerships, 2 associations, corporations or political subdivisions subject to 3 the tax imposed by this article upon gross receipts derived from 4 such resale of mobile telecommunications services, including 5 sales of mobile telecommunications services to interconnect with 6 providers of telecommunications services. 7 (a.1) Credit.--Telegraph or telephone companies or providers 8 of mobile telecommunications services that pay a gross receipts 9 tax to another state on messages or services after December 31, 10 2005, and before January 1, 2007, which are taxable under this 11 article are entitled to a credit against the tax due under this 12 article. The credit allowed with respect to the messages or 13 services shall not exceed the tax under this article with 14 respect to the messages or services. 15 * * * 16 (j) Schedule for Estimated Payments.-- 17 (1) For calendar year 2004, the following schedule applies 18 to the payment of the tax under subsection(a)(3): 19 (i) Forty per cent of the estimated tax shall be due on 20 March 15, 2004. 21 (ii) Forty per cent of the estimated tax shall be due on 22 June 15, 2004. 23 (iii) Twenty per cent of the estimated tax shall be due on 24 September 15, 2004. 25 (2) [For calendar years after 2004, the payment of the 26 estimated tax under subsection (a)(3) shall be due in accordance 27 with section 3003.2.] This subsection shall expire January 1, 28 2007. 29 Section 2. Section 33(12) of the act of December 23, 2003 30 (P.L.250, No.46), entitled "An act Amending the act of March 4, 20050H0338B0359 - 4 -
1 1971 (P.L.6, No.2), entitled 'An act relating to tax reform and 2 State taxation by codifying and enumerating certain subjects of 3 taxation and imposing taxes thereon; providing procedures for 4 the payment, collection, administration and enforcement thereof; 5 providing for tax credits in certain cases; conferring powers 6 and imposing duties upon the Department of Revenue, certain 7 employers, fiduciaries, individuals, persons, corporations and 8 other entities; prescribing crimes, offenses and penalties,' 9 further providing, in sales and use tax, for definitions, for 10 exclusions, for credits, for licenses and for transfers to 11 Public Transportation Assistance Fund; further providing, in 12 personal income tax, for definitions, for imposition, for 13 special tax provisions for poverty, for returns and liability 14 and for returns and records; further providing, in corporate net 15 income tax, for definitions and for interests in unincorporated 16 entities; providing, in corporate net income tax, for additional 17 withholding requirements; further providing, in capital stock 18 franchise tax, for definitions and reports, for imposition and 19 for expiration; further providing, in utilities gross receipts 20 tax, for imposition; further providing, in public utility realty 21 tax, for surcharges; providing, in public utility realty tax, 22 for additional tax; further providing, in cigarette tax, for 23 incidence and rate of tax, for floor tax, for stamp to evidence 24 the tax and for commissions on sales; establishing, in relation 25 to cigarette tax, the Health Care Provider Retention Account; 26 further providing, in research and development tax credit, for 27 carryover, for limitations and for reports; further providing, 28 in malt beverage tax, for limited tax credits; further 29 providing, in inheritance tax, for definitions, for exempt 30 transfers, for estate tax and for estate tax returns; further 20050H0338B0359 - 5 -
1 providing for the Public Transportation Assistance Fund and 2 providing for its administration; further providing for 3 estimated tax and for underpayment of estimated tax; providing 4 for authority to attach wages; and repealing provisions relating 5 to the Public Transportation Assistance Fund," is repealed. 6 Section 3. This act shall take effect immediately. A7L72JS/20050H0338B0359 - 6 -