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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GEORGE, LEVDANSKY, BELFANTI, BRENNAN, CARROLL, FREEMAN, GOODMAN, GRUCELA, HORNAMAN, JOSEPHS, MAHONEY, McILVAINE SMITH, MUNDY, MYERS, SIPTROTH, K. SMITH, STABACK, STURLA, J. TAYLOR AND YOUNGBLOOD, MAY 13, 2009 |
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| REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MAY 13, 2009 |
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| AN ACT |
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1 | Amending Title 72 (Taxation and Fiscal Affairs) of the |
2 | Pennsylvania Consolidated Statutes, imposing a tax on the |
3 | extraction of natural gas; providing for natural resource |
4 | severance tax license, for duties of the Department of |
5 | Revenue, for tax assessments and tax liens; imposing |
6 | penalties; providing for service of process, for rulemaking, |
7 | for cooperation with other governments and for bonds; and |
8 | making an appropriation. |
9 | The General Assembly of the Commonwealth of Pennsylvania |
10 | hereby enacts as follows: |
11 | Section 1. Title 72 of the Pennsylvania Consolidated |
12 | Statutes is amended by adding a chapter to read: |
13 | CHAPTER 15 |
14 | SEVERANCE TAX |
15 | Sec. |
16 | 1501. Short title of chapter. |
17 | 1502. Definitions. |
18 | 1503. Imposition of tax. |
19 | 1504. Return and payment. |
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1 | 1505. Natural resource severance tax registration. |
2 | 1505.1 Meters. |
3 | 1506. Assessments. |
4 | 1507. Time for assessment. |
5 | 1508. Extension of limitation period. |
6 | 1509. Reassessments. |
7 | 1510. Interest. |
8 | 1511. Penalties. |
9 | 1512. Criminal acts. |
10 | 1513. Abatement of additions or penalties. |
11 | 1514. Bulk and auction sales. |
12 | 1515. Collection upon failure to request reassessment, review |
13 | or appeal. |
14 | 1516. Tax liens. |
15 | 1517. Tax suit reciprocity. |
16 | 1518. Service. |
17 | 1519. Refunds. |
18 | 1520. Refund petition. |
19 | 1521. Rules and regulations. |
20 | 1522. Recordkeeping. |
21 | 1523. Examinations. |
22 | 1524. Unauthorized disclosure. |
23 | 1525. Cooperation with other governments. |
24 | 1526. Bonds. |
25 | 1527. Appropriation. |
26 | § 1501. Short title of chapter. |
27 | This chapter shall be known and may be cited as the Natural |
28 | Resource Severance Tax Act. |
29 | § 1502. Definitions. |
30 | The following words and phrases when used in this chapter |
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1 | shall have the meanings given to them in this section unless the |
2 | context clearly indicates otherwise: |
3 | "Association." A partnership, limited partnership or any |
4 | other form of unincorporated enterprise owned or conducted by |
5 | two or more persons. |
6 | "Corporation." A corporation, joint stock association, |
7 | limited liability company, business trust or any other |
8 | incorporated enterprise organized under the laws of this |
9 | Commonwealth, the United States or any other state, territory or |
10 | foreign country or dependency. |
11 | "Department." The Department of Revenue of the Commonwealth. |
12 | "Gross value." The volume-weighted average market price for |
13 | all arms-length transactions that a producer receives at the |
14 | sales meter for natural gas during a reporting period. |
15 | "Meter." A device to measure the passage of volumes of gases |
16 | or liquids past a certain point. |
17 | "Natural gas." A fossil fuel consisting of a mixture of |
18 | hydrocarbon gases, primarily methane, possibly including ethane, |
19 | propane, butane, pentane, carbon dioxide, oxygen, nitrogen and |
20 | hydrogen sulfide and other gas species. The term includes |
21 | natural gas from oil fields known as associated gas or casing |
22 | head gas, natural gas fields known as nonassociated gas, coal |
23 | beds, shale beds and other formations. |
24 | "Non-producing site." A point of severance that is not |
25 | capable of producing a natural gas in paying quantities. |
26 | "Paying quantities." Profit to the producer, however small, |
27 | over the producer's current operating expenses. |
28 | "Person." Every natural person, including a corporation, |
29 | limited liability company, business trust, trust, guardian or |
30 | other fiduciary, association, government entity or corporation. |
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1 | "Producer." A person who engages or continues within this |
2 | Commonwealth in the business of severing natural gas for sale, |
3 | profit or commercial use. The term does not include a person who |
4 | severs natural gas from a storage field. |
5 | "Producing site." A point of severance capable of producing |
6 | natural gas in paying quantities. |
7 | "Reporting period." A calendar month in which natural gas is |
8 | severed. |
9 | "Sales meter." A meter at the point where natural gas is |
10 | sold or transported to a purchaser or market. |
11 | "Sever," "severing" or "severance." The extraction or other |
12 | removal of a natural resource from the soil or water of this |
13 | Commonwealth. |
14 | "Tax." The tax imposed under this chapter. |
15 | "Taxpayer." A person subject to the tax imposed by this |
16 | chapter. |
17 | "Unit." A thousand cubic feet of natural gas measured at the |
18 | wellhead at a temperature of 60 degrees Fahrenheit and an |
19 | absolute pressure of 14.73 pounds per square inch in accordance |
20 | with American Gas Association Standards and according to Boyle's |
21 | law for the measurement of gas under varying pressures with |
22 | deviations as follows: |
23 | (1) The average absolute atmospheric pressure shall be |
24 | assumed to be 14.4 pounds to the square inch, regardless of |
25 | elevation or location of point of delivery above sea level or |
26 | variations in atmospheric pressure from time to time. |
27 | (2) The temperature of the gas passing the meters shall |
28 | be determined by the continuous use of a recording |
29 | thermometer installed to properly record the temperature of |
30 | gas flowing through the meters. The arithmetic average of the |
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1 | temperature recorded each 24-hour day shall be used in |
2 | computing gas volumes. If a recording thermometer is not |
3 | installed, or if installed and not operating properly, an |
4 | average flowing temperature of 60 degrees Fahrenheit shall be |
5 | used in computing gas volume. |
6 | (3) The specific gravity of the gas shall be determined |
7 | annually by tests made by the use of an Edwards or Acme |
8 | gravity balance, or at intervals as found necessary in |
9 | practice. Specific gravity determinations shall be used in |
10 | computing gas volumes. |
11 | (4) The deviation of the natural gas from Boyle's Law |
12 | shall be determined by annual tests or at other shorter |
13 | intervals as found necessary in practice. The apparatus and |
14 | method used in making the test shall be in accordance with |
15 | recommendations of the National Bureau of Standards or Report |
16 | No. 3 of the Gas Measurement Committee of the American Gas |
17 | Association, or amendments thereto. The results of the tests |
18 | shall be used in computing the volume of gas delivered under |
19 | this chapter. |
20 | "Wellhead meter." A meter placed at a producing or |
21 | nonproducing site to measure the volume of natural gas severed. |
22 | § 1503. Imposition of tax. |
23 | (a) Establishment.--There is levied a privilege tax on every |
24 | producer who severs natural gas. |
25 | (b) Rate.--The tax imposed in subsection (a) shall be 5% of |
26 | the gross value of units severed at the wellhead during a |
27 | reporting period, plus 4.7 cents per unit severed. |
28 | § 1504. Return and payment. |
29 | (a) Requirement.--Every producer is required to file a |
30 | return with the department, on a form to be prescribed by the |
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1 | department, reporting all severed natural gas resources per |
2 | reporting period and the tax due as imposed under section 1503 |
3 | (relating to imposition of tax). |
4 | (b) Filing.--The return required by subsection (a) shall be |
5 | filed with the department within 15 days following the end of |
6 | the second calendar month after a reporting period. |
7 | (c) Deadline.--The tax imposed under section 1503 is due on |
8 | the day required to be filed and becomes delinquent if not |
9 | remitted to the department by that date. |
10 | § 1505. Natural resource severance tax registration. |
11 | (a) Application.--Before a producer severs natural gas in |
12 | this Commonwealth, the producer shall apply to the department |
13 | for a severance tax registration certificate. |
14 | (a.1) Application fee.--The department may charge an |
15 | application fee to cover the administrative costs associated |
16 | with the application and registration process. If the department |
17 | charges an application fee, the department shall not register a |
18 | producer or issue a certificate until the producer has paid the |
19 | application fee. |
20 | (a.2) Declaration.--As part of the application for |
21 | registration, the producer is required to provide a declaration |
22 | of all sites in this Commonwealth used for the severance of |
23 | natural gas. The declaration is to include all producing sites |
24 | and nonproducing sites. The producer is required to update the |
25 | declaration when the producer adds or removes a producing or |
26 | nonproducing site in this Commonwealth or when there is a change |
27 | in the status of a producing or nonproducing site. The producer |
28 | shall update the declaration within 30 days after a calendar |
29 | month in which a change to the declaration occurs. |
30 | (b) Issuance.--After the receipt of an application, the |
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1 | department shall issue the certificate applied for under |
2 | subsection (a), provided that said applicant shall have filed |
3 | all required State tax reports and paid any State taxes not |
4 | subject to a timely perfected administrative or judicial appeal |
5 | or subject to a duly authorized deferred payment plan. The |
6 | certificate shall be nonassignable. All registrants shall be |
7 | required to renew their registration on a staggered renewal |
8 | system established by the department. After the initial |
9 | staggered period, a certificate issued shall be valid for a |
10 | period of five years. |
11 | (c) Refusal, suspension or revocation.--The department may |
12 | refuse to issue, suspend or revoke the certificate if the |
13 | applicant or any person holding a certificate has not filed |
14 | required State tax reports and paid State taxes not subject to a |
15 | timely perfected administrative or judicial appeal or subject to |
16 | a duly authorized deferred payment plan. The department shall |
17 | notify the applicant or registrant of any refusal, suspension or |
18 | revocation. The notice shall contain a statement that the |
19 | refusal, suspension or revocation may be made public. The notice |
20 | shall be made by first class mail. An applicant or registrant |
21 | aggrieved by the determination of the department may file an |
22 | appeal under the provisions for administrative appeals in the |
23 | act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code |
24 | of 1971. In the case of a suspension or revocation which is |
25 | appealed, the registration and certificate shall remain valid |
26 | pending a final outcome of the appeals process. Notwithstanding |
27 | sections 274, 353(f), 408(b), 603, 702, 802, 904 and 1102 of the |
28 | Tax Reform Code of 1971 or any other provision of law, if no |
29 | appeal is taken or if an appeal is taken and denied at the |
30 | conclusion of the appeal process the department may disclose, by |
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1 | publication or otherwise, the identity of a person and the fact |
2 | that the person's registration and certificate has been refused, |
3 | suspended or revoked under this subsection. Disclosure may |
4 | include the basis for refusal, suspension or revocation. |
5 | (d) Violation.--A person severing natural gas in this |
6 | Commonwealth without holding a valid registration and |
7 | certificate under subsection (b) shall be guilty of a summary |
8 | offense and shall, upon conviction, be sentenced to pay a fine |
9 | of not less than $300 nor more than $1,500. In the event the |
10 | person convicted defaults, he shall be sentenced to imprisonment |
11 | for not less than five days nor more than 30 days. The penalties |
12 | imposed by this subsection shall be in addition to any other |
13 | penalties imposed by this chapter. For purposes of this |
14 | subsection, the severing of a natural gas during any calendar |
15 | day shall constitute a separate violation. The Secretary of |
16 | Revenue may designate employees of the department to enforce the |
17 | provisions of this subsection. The employees shall exhibit proof |
18 | of and be within the scope of the designation when instituting |
19 | proceedings as provided by the Pennsylvania Rules of Criminal |
20 | Procedure. |
21 | (e) Failure to obtain license.--Failure to obtain a |
22 | registration and certificate does not relieve a person from |
23 | liability for the tax imposed by this chapter. |
24 | § 1505.1. Meters. |
25 | A producer shall provide for and maintain a discrete wellhead |
26 | and sales meters. A producer shall ensure that the meters are |
27 | maintained according to industry standards. |
28 | § 1506. Assessments. |
29 | (a) Authorization and requirement.--The department is |
30 | authorized and shall make the inquiries, determinations and |
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1 | assessments of the tax, including interest, additions and |
2 | penalties imposed under this chapter. |
3 | (b) Notice.--The notice of assessment and demand for payment |
4 | shall be mailed to the taxpayer. The notice shall set forth the |
5 | basis of the assessment. The department shall issue a notice of |
6 | the assessment to the producer. The notice shall set forth the |
7 | department's basis for the assessment. The department shall send |
8 | the notice of assessment to the producer at his registered |
9 | address via certified mail if the assessment increases the |
10 | producer's tax liability by $300. Otherwise, the notice of |
11 | assessment may be sent via regular mail. |
12 | § 1507. Time for assessment. |
13 | (a) Requirement.--An assessment as provided under section |
14 | 1506 (relating to assessments) shall be made within three years |
15 | after the date when the return provided for by section 1504 |
16 | (relating to return and payment) is filed or the end of the year |
17 | in which the tax liability arises, whichever shall occur last. |
18 | For the purposes of this subsection and subsection (b), a return |
19 | filed before the last day prescribed for the filing period shall |
20 | be considered as filed on the last day. |
21 | (b) Exception.--The assessment may be made at any time |
22 | within six years after the return is filed if the total tax that |
23 | is properly included on the return is in excess of 25% of the |
24 | total tax reported on the return. |
25 | (c) Intent to evade.--Where no return is filed or where the |
26 | taxpayer files a false or fraudulent return with intent to evade |
27 | the tax imposed by this chapter, the assessment may be made at |
28 | any time. |
29 | (d) Erroneous credit or refund.--Within three years of the |
30 | granting of a refund or credit or within the period in which an |
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1 | assessment or reassessment may have been filed by the department |
2 | for the taxable period for which the refund was granted, |
3 | whichever period shall last occur, the department may file an |
4 | assessment to recover a refund or credit made or allowed |
5 | erroneously. |
6 | § 1508. Extension of limitation period. |
7 | Notwithstanding the provisions of this chapter, the |
8 | assessment period may be extended where a taxpayer has provided |
9 | written consent before the expiration of the period provided in |
10 | section 1507 (relating to time for assessment) for a tax |
11 | assessment. The amount of tax due may be assessed at any time |
12 | within the extended period. The period extended may be extended |
13 | further by subsequent written consents made before the |
14 | expiration of the extended period. |
15 | § 1509. Reassessments. |
16 | A producer against whom an assessment is made may petition |
17 | the department for a reassessment under Article XXVII of the act |
18 | of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of |
19 | 1971. |
20 | § 1510. Interest. |
21 | The department shall assess interest on any delinquent tax at |
22 | the rate prescribed under section 806 of the act of April 9, |
23 | 1929 (P.L.343, No. 176), known as The Fiscal Code. |
24 | § 1511. Penalties. |
25 | The department shall enforce the following penalties: |
26 | (1) A penalty against a producer without a natural gas |
27 | severance tax registration and certificate. The penalty shall |
28 | be $1 for every unit severed without a registration and |
29 | certificate. The department may assess this penalty |
30 | separately from or in conjunction with any assessment of tax. |
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1 | (2) A penalty against a producer for failure to file a |
2 | return as required under section 1504 (relating to return and |
3 | payment). The penalty shall be 5% of the tax liability to be |
4 | reported on the return for each day beyond the due date that |
5 | the return is not filed. |
6 | (3) In addition to the penalty under paragraph (2), a |
7 | penalty against the producer for a willful failure to file a |
8 | return. The penalty shall be 200% of the tax liability |
9 | required to be reported on the return. |
10 | (4) A penalty against a producer for failure to timely |
11 | pay the tax as required by section 1504(c). The penalty shall |
12 | be 5% of the amount of tax due for each day beyond the |
13 | payment date that the tax is not paid. |
14 | § 1512. Criminal acts. |
15 | (a) Fraudulent return.--Any person with intent to defraud |
16 | the Commonwealth, who willfully makes or causes to be made a |
17 | return required by this chapter which is false, is guilty of a |
18 | misdemeanor and shall, upon conviction, be sentenced to pay a |
19 | fine of not more than $2,000 or to imprisonment for not more |
20 | than three years, or both. |
21 | (b) Other crimes.-- |
22 | (1) Except as otherwise provided by subsection (a), a |
23 | producer is guilty of a misdemeanor and shall, upon |
24 | conviction, be sentenced to pay a fine of not more than |
25 | $1,000 and costs of prosecution or to imprisonment for not |
26 | more than one year, or both, for any of the following: |
27 | (i) Willfully failing to timely remit the tax to the |
28 | department. |
29 | (ii) Willfully failing or neglecting to timely file |
30 | a return or report required by this chapter. |
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1 | (iii) Refusing to timely pay a tax, penalty or |
2 | interest imposed or provided for by this chapter. |
3 | (iv) Willfully failing to preserve his books, papers |
4 | and records as directed by the department. |
5 | (v) Refusing to permit the department or its |
6 | authorized agents to examine its books, records or |
7 | papers. |
8 | (vi) Knowingly make any incomplete, false or |
9 | fraudulent return or report. |
10 | (vii) Preventing or attempting to prevent the full |
11 | disclosure of the amount of tax due. |
12 | (viii) Providing any person with a false statement |
13 | as to the payment of tax with respect to any pertinent |
14 | facts. |
15 | (ix) Making, uttering or issuing a false or |
16 | fraudulent statement. |
17 | (2) The penalties imposed by this section shall be in |
18 | addition to other penalties imposed by this chapter. |
19 | § 1513. Abatement of additions or penalties. |
20 | Upon the filing of a petition for reassessment or a petition |
21 | for refund by a taxpayer as provided under this chapter, |
22 | additions or penalties imposed upon the taxpayer by this chapter |
23 | may be waived or abated in whole or in part where the petitioner |
24 | establishes that he acted in good faith, without negligence and |
25 | with no intent to defraud. |
26 | § 1514. Bulk and auction sales. |
27 | A person that sells or causes to be sold at auction, or that |
28 | sells or transfers in bulk, 51% or more of a stock of goods, |
29 | wares or merchandise of any kind, fixtures, machinery, |
30 | equipment, buildings or real estate or is involved in a business |
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1 | for which the person is licensed or required to be licensed |
2 | under the provisions of this chapter shall be subject to the |
3 | provisions of section 1403 of the act of April 9, 1929 (P.L.343, |
4 | No.176), known as The Fiscal Code. |
5 | § 1515. Collection upon failure to request reassessment, review |
6 | or appeal. |
7 | (a) Power of department.--The department may collect a tax: |
8 | (1) If an assessment of tax is not paid within 30 days |
9 | after notice to the taxpayer when no petition for |
10 | reassessment has been filed. |
11 | (2) Within 60 days of the reassessment, if no petition |
12 | for review has been filed. |
13 | (3) If no appeal has been made, within 30 days of: |
14 | (i) the Board of Finance and Revenue's decision of a |
15 | petition for review; or |
16 | (ii) the expiration of the board's time for acting |
17 | upon the petition. |
18 | (4) In all cases of judicial sales, receiverships, |
19 | assignments or bankruptcies. |
20 | (b) Prohibition.--In a case for the collection of taxes |
21 | under subsection (a), the person against whom they were assessed |
22 | shall not be permitted to set up a ground of defense that might |
23 | have been determined by the department, the Board of Finance and |
24 | Revenue or the courts, provided that the defense of failure of |
25 | the department to mail notice of assessment or reassessment to |
26 | the taxpayer and the defense of payment of assessment or |
27 | reassessment may be raised in proceedings for collection by a |
28 | motion to stay the proceedings. |
29 | § 1516. Tax liens. |
30 | (a) Lien imposed.--If any person liable to pay a tax |
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1 | neglects or refuses to pay the tax after demand, the amount, |
2 | including interest, addition or penalty, together with |
3 | additional costs that may accrue, shall be a lien in favor of |
4 | the Commonwealth upon the real and personal property of the |
5 | person but only after the same has been entered and docketed of |
6 | record by the prothonotary of the county where the property is |
7 | situated. The department may, at any time, transmit to the |
8 | prothonotaries of the respective counties certified copies of |
9 | all liens for taxes imposed by this act and penalties and |
10 | interest. It shall be the duty of the prothonotary receiving the |
11 | lien to enter and docket the same of record to the office of the |
12 | prothonotary. The lien shall be indexed as judgments are now |
13 | indexed. No prothonotary shall require as a condition precedent |
14 | to the entry of the lien the payment of costs incidental to its |
15 | entry. |
16 | (b) Priority of lien and effect on judicial sale.--Except |
17 | for the costs of the sale and the writ upon which the sale was |
18 | made and real estate taxes and municipal claims against the |
19 | property, the lien imposed under this section shall have |
20 | priority from the date of its recording and shall be fully paid |
21 | and satisfied out of the proceeds of any judicial sale of |
22 | property subject to, before any other obligation, judgment, |
23 | claim, lien or estate to which the property may subsequently |
24 | become subject, but shall be subordinate to mortgages and other |
25 | liens existing and duly recorded or entered of record prior to |
26 | the recording of the tax lien. |
27 | (c) No discharge by sale on junior lien.--In the case of a |
28 | judicial sale of property subject to a lien imposed under this |
29 | section, upon a lien or claim over which the lien imposed under |
30 | this section has priority, the sale shall discharge the lien |
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1 | imposed under this section to the extent only that the proceeds |
2 | are applied to its payment, and the lien shall continue in full |
3 | force and effect as to the balance remaining unpaid. There shall |
4 | be no inquisition or condemnation upon any judicial sale of real |
5 | estate made by the Commonwealth under the provisions of this |
6 | chapter. The lien of the taxes, interest and penalties shall |
7 | continue as provided in the act of April 9, 1929 (P.L.343, |
8 | No.176), known as The Fiscal Code, and a writ of execution may |
9 | directly issue upon the lien without the issuance and |
10 | prosecution to judgment of a writ of scire facias, provided that |
11 | not less than ten days before issuance of any execution on the |
12 | lien, notice of the filing and the effect of the lien shall be |
13 | sent by registered mail to the taxpayer at his last known post |
14 | office address, provided further that the lien shall have no |
15 | effect upon any stock of goods, wares or merchandise regularly |
16 | sold or leased in the ordinary course of business by the person |
17 | against whom the lien has been entered, unless and until a writ |
18 | of execution has been issued and a levy made upon said stock of |
19 | goods, wares and merchandise. |
20 | (d) Duty of prothonotary.--Any willful failure of any |
21 | prothonotary to carry out any duty imposed upon him by this |
22 | section shall be a misdemeanor. Upon conviction, he shall be |
23 | sentenced to pay a fine of not more than $1,000 and costs of |
24 | prosecution or to imprisonment for not more than one year, or |
25 | both. |
26 | (e) Priority.--Except as provided in this chapter, the |
27 | distribution, voluntary or compulsory, in receivership, |
28 | bankruptcy or otherwise of the property or estate of any person, |
29 | all taxes imposed by this chapter which are due and unpaid and |
30 | are not collectible under the provisions of section 225 of the |
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1 | act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code |
2 | of 1971, shall be paid from the first money available for |
3 | distribution in priority to all other claims and liens, except |
4 | as the laws of the United States may give priority to a claim to |
5 | the Federal Government. A person charged with the administration |
6 | or distribution of the property or estate who violates the |
7 | provisions of this section shall be personally liable for the |
8 | taxes imposed by this chapter which are accrued and unpaid and |
9 | chargeable against the person whose property or estate is being |
10 | administered or distributed. |
11 | (f) Other remedies.--Subject to the limitations contained in |
12 | this chapter as to the assessment of taxes, nothing contained in |
13 | this section shall be construed to restrict, prohibit or limit |
14 | the use by the department in collecting taxes due and payable of |
15 | another remedy or procedure available at law or equity for the |
16 | collection of debts. |
17 | § 1517. Tax suit reciprocity. |
18 | The courts of this Commonwealth shall recognize and enforce |
19 | liabilities for natural gas severance taxes lawfully imposed by |
20 | any other state, provided that the other state recognizes and |
21 | enforces the tax set forth in this chapter. |
22 | § 1518. Service. |
23 | A producer is deemed to have appointed the Secretary of the |
24 | Commonwealth its agent for the acceptance of service of process |
25 | or notice in a proceeding for the enforcement of the civil |
26 | provisions of this chapter and service made upon the Secretary |
27 | of the Commonwealth as agent shall be of the same legal force |
28 | and validity as if the service had been personally made upon the |
29 | person. Where service cannot be made upon the person in the |
30 | manner provided by other laws of this Commonwealth relating to |
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1 | service of process, service may be made upon the Secretary of |
2 | the Commonwealth. In that case, a copy of the process or notice |
3 | shall be personally served upon any agent or representative of |
4 | the person who may be found within this Commonwealth or, where |
5 | no agent or representative may be found, a copy of the process |
6 | or notice shall be sent via registered mail to the person at the |
7 | last known address of his principal place of business, home |
8 | office or residence. |
9 | § 1519. Refunds. |
10 | Under Article XXVII of the act of March 4, 1971 (P.L.6, |
11 | No.2), known as the Tax Reform Code of 1971, the department |
12 | shall refund all taxes, interest and penalties paid to the |
13 | Commonwealth under the provisions of this chapter to which the |
14 | Commonwealth is not rightfully entitled. The refunds shall be |
15 | made to the person or the person's heirs, successors, assigns or |
16 | other personal representatives who paid the tax, provided that |
17 | no refund shall be made under this section regarding a payment |
18 | made by reason of an assessment where a taxpayer has filed a |
19 | petition for reassessment under section 2702 of the Tax Reform |
20 | Code of 1971 to the extent the petition is adverse to the |
21 | taxpayer by a decision which is no longer subject to further |
22 | review or appeal. Nothing in this chapter shall prohibit a |
23 | taxpayer who has filed a timely petition for reassessment from |
24 | amending it to a petition for refund where the petitioner paid |
25 | the tax assessed. |
26 | § 1520. Refund petition. |
27 | (a) General rule.--Except as provided for in subsection (b), |
28 | the refund or credit of tax, interest or penalty provided for by |
29 | section 1519 (relating to refunds) shall be made only where the |
30 | person who has paid the tax files a petition for refund with the |
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1 | department under Article XXVII of the act of March 4, 1971 |
2 | (P.L.6, No.2), known as the Tax Reform Code of 1971, within the |
3 | time limits of section 3003.1 of the Tax Reform Code of 1971. |
4 | (b) Severance tax license.--A refund or credit of tax, |
5 | interest or penalty paid as a result of an assessment made by |
6 | the department under section 1505 (relating to natural resource |
7 | severance tax registration), shall be made only where the person |
8 | who has paid the tax files with the department a petition for a |
9 | refund with the department under Article XXVII within the time |
10 | limits of section 3003.1 of the Tax Reform Code of 1971. The |
11 | filing of a petition for refund, under the provisions of this |
12 | subsection, shall not affect the abatement of interest, |
13 | additions or penalties to which the person may be entitled by |
14 | reason of his payment of the assessment. |
15 | § 1521. Rules and regulations. |
16 | The department is charged with the enforcement of the |
17 | provisions of this chapter and is authorized and empowered to |
18 | prescribe, adopt, promulgate and enforce rules and regulations |
19 | not inconsistent with the provisions of this chapter relating to |
20 | any matter or thing pertaining to the administration and |
21 | enforcement of the provisions of this chapter and the collection |
22 | of taxes, penalties and interest imposed by this chapter. The |
23 | department may prescribe the extent, if any, to which any of the |
24 | rules and regulations shall be applied without retroactive |
25 | effect. |
26 | § 1522. Recordkeeping. |
27 | (a) General rule.--Every person liable for any tax imposed |
28 | by this chapter, or for the collection, shall keep records, |
29 | including those enumerated in subsection (b), render statements, |
30 | make returns and comply with the rules and regulations as the |
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1 | department may prescribe regarding matters pertinent to the |
2 | person's business. Whenever it is necessary, the department may |
3 | require a person, by notice served upon the person or by |
4 | regulations, to make returns, render statements or keep records |
5 | as the department deems sufficient to show whether or not a |
6 | person is liable to pay tax under this chapter. |
7 | (a.1) Records.--Records to be maintained are: |
8 | (1) Wellhead and sales meter charts for each reporting |
9 | period and the meter calibration and maintenance records. If |
10 | turbine meters are in use, the maintenance records will be |
11 | made available to the department upon request. |
12 | (2) Records, statements and other instruments furnished |
13 | to a producer by a person to whom the producer delivers for |
14 | sale, transport or delivery of natural gas. |
15 | (3) Records, statements and other instruments as the |
16 | department may prescribe by regulation. |
17 | (b) Records of nonresidents.--A nonresident who does |
18 | business in this Commonwealth as a producer shall keep adequate |
19 | records of the business and of the tax due as a result. The |
20 | records shall be retained within this Commonwealth unless |
21 | retention outside this Commonwealth is authorized by the |
22 | department. The department may require a taxpayer who desires to |
23 | retain records outside this Commonwealth to assume reasonable |
24 | out-of-State audit expenses. |
25 | (c) Keeping of separate records.--A person doing business as |
26 | a producer, who at the same time is engaged in another business |
27 | or businesses which do not involve the severing of natural gas |
28 | taxable under this chapter, shall keep separate books and |
29 | records of the businesses so as to show the taxable severing of |
30 | natural gas under this chapter separately from other business |
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1 | activities not taxable hereunder. If any person fails to keep |
2 | separate books and records, the person shall be liable for a |
3 | penalty equaling 100% of tax due under this chapter for the |
4 | period where separate records were not maintained. |
5 | § 1523. Examinations. |
6 | The department or any of its authorized agents are authorized |
7 | to examine the books, papers and records of any taxpayer in |
8 | order to verify the accuracy and completeness of any return made |
9 | or, if no return was made, to ascertain and assess the tax |
10 | imposed by this chapter. The department may require the |
11 | preservation of all books, papers and records for any period |
12 | deemed proper by it but not to exceed three years from the end |
13 | of the calendar year to which the records relate. Every taxpayer |
14 | is required to give to the department or its agent the means, |
15 | facilities and opportunity for examinations and investigation |
16 | under this section. The department is further authorized to |
17 | examine any person, under oath, concerning the taxable severing |
18 | of natural gas by any taxpayer or concerning any other matter |
19 | relating to the enforcement or administration of this chapter, |
20 | and to this end may compel the production of books, papers and |
21 | records and the attendance of all persons whether as parties or |
22 | witnesses whom it believes to have knowledge of relevant |
23 | matters. The procedure for the hearings or examinations shall be |
24 | the same as that provided by the act of April 9, 1929 (P.L.343, |
25 | No. 176), known as The Fiscal Code. |
26 | § 1524. Unauthorized disclosure. |
27 | Any information gained by the department as a result of any |
28 | return, examination, investigation, hearing or verification |
29 | required or authorized by this chapter shall be confidential |
30 | except for official purposes and except in accordance with |
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1 | proper judicial order or as otherwise provided by law, and any |
2 | person unlawfully divulging the information shall be guilty of a |
3 | misdemeanor and shall, upon conviction, be sentenced to pay a |
4 | fine of not more than $1000 and costs of prosecution or to |
5 | imprisonment for not more than one year, or both. |
6 | § 1525. Cooperation with other governments. |
7 | Notwithstanding the provisions of section 1517 (relating to |
8 | tax suit reciprocity), the department may permit the |
9 | Commissioner of the Internal Revenue Service of the United |
10 | States, the proper officer of any state or the authorized |
11 | representative of either officer to inspect the tax returns of |
12 | any taxpayer, or may furnish to the officer or to his authorized |
13 | representative an abstract of the return of any taxpayer, or |
14 | supply him with information concerning any item contained in any |
15 | return or disclosed by the report of any examination or |
16 | investigation of the return of any taxpayer. This permission |
17 | shall be granted only if the statutes of the United States or |
18 | another state grant substantially similar privileges to the |
19 | proper officer of the Commonwealth charged with the |
20 | administration of this chapter. |
21 | § 1526. Bonds. |
22 | (a) Taxpayer to file bond.--The department may require a |
23 | nonresident natural person or any foreign corporation, |
24 | association, fiduciary, partnership or other entity, not |
25 | authorized to do business within this Commonwealth or not having |
26 | an established place of business in this Commonwealth and |
27 | subject to the tax imposed by section 1503 (relating to |
28 | imposition of tax), to file a bond issued by a surety company |
29 | authorized to do business in this Commonwealth and approved by |
30 | the Insurance Commissioner as to solvency and responsibility, in |
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1 | amounts as it may fix, to secure the payment of any tax or |
2 | penalties due or which may become due from a natural person or |
3 | corporation whenever it deems it necessary to protect the |
4 | revenues obtained under this chapter. In order to protect the |
5 | revenues obtained under this chapter, the department shall |
6 | require a nonresident natural person or a foreign corporation, |
7 | association, fiduciary, partnership or entity who is not |
8 | authorized to do business or does not have an established place |
9 | of business in this Commonwealth and is subject to the tax |
10 | imposed by section 1503, to file a bond issued by a surety |
11 | company authorized to do business in this Commonwealth and |
12 | approved by the Insurance Commissioner as to solvency and |
13 | responsibility, in amounts as it may fix, to secure the payments |
14 | of any tax or penalties due or which may become due from a |
15 | natural person, corporation or other entity. The department may |
16 | also require a bond of a person petitioning the department for |
17 | reassessment in the case of any assessment over $500 or where, |
18 | in its opinion, the ultimate collection is in jeopardy. For a |
19 | period of three years, the department may require a bond of any |
20 | person who has, on three or more occasions within a 12-month |
21 | period, either filed a return or made payment to the department |
22 | more than 30 days late. In the event the department determines a |
23 | taxpayer is required to file a bond, it shall give notice to the |
24 | taxpayer specifying the amount of the bond required. The |
25 | taxpayer shall file the bond within five days after notice is |
26 | given by the department unless, within five days, the taxpayer |
27 | shall request in writing a hearing before the Secretary of |
28 | Revenue or his representative. At the hearing, the necessity, |
29 | propriety and amount of the bond shall be determined by the |
30 | secretary or the secretary's representative. The determination |
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1 | shall be final and the taxpayer shall comply with it within 15 |
2 | days after notice is mailed to the taxpayer. |
3 | (b) Securities in lieu of bond.--In lieu of the bond |
4 | required by this section securities approved by the department |
5 | or cash in a prescribed amount may be deposited. The securities |
6 | or cash shall be kept in the custody of the department. The |
7 | department may apply the securities or cash to a tax and |
8 | interest or penalties due without notice to the depositor. The |
9 | securities may be sold by the department to pay a tax and/or |
10 | interest or penalties due at public or private sale upon five |
11 | days' written notice to the depositor. |
12 | (c) Failure to file bond.--The department may file a lien |
13 | under section 1516 (relating to tax liens) against any taxpayer |
14 | who fails to file a bond when required to do so under this |
15 | section. All funds received upon execution of the judgment on |
16 | the lien shall be refunded to the taxpayer with 3% interest, |
17 | should a final determination be made that he does not owe any |
18 | payment to the department. |
19 | § 1527. Appropriation. |
20 | The amount of the proceeds from the tax imposed by this |
21 | chapter as shall be necessary for the payment of refunds, |
22 | enforcement or administration under this chapter, is hereby |
23 | appropriated for such purposes. |
24 | Section 2. This act shall take effect October 1, 2009. |
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