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| PRIOR PRINTER'S NO. 1853 | PRINTER'S NO. 2241 |
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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, YOUNGBLOOD AND CURRY, MAY 13, 2009 |
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| AS REPORTED FROM COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 23, 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 gas | <-- |
4 | severance tax license registration certificate, for duties of | <-- |
5 | the Department of Revenue, for tax assessments and tax liens; |
6 | imposing penalties; providing for service of process, for |
7 | rulemaking, for cooperation with other governments and for |
8 | bonds; and 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 gas 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. Natural Gas Severance Tax Fund. | <-- |
26 | 1528. Administration of fund. |
27 | 1527 1529. Appropriation. | <-- |
28 | § 1501. Short title of chapter. |
29 | This chapter shall be known and may be cited as the Natural |
30 | Resource Gas Severance Tax Act. | <-- |
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1 | § 1502. Definitions. |
2 | The following words and phrases when used in this chapter |
3 | shall have the meanings given to them in this section unless the |
4 | context clearly indicates otherwise: |
5 | "Accredited laboratory." A facility engaged in the testing | <-- |
6 | and calibration of scientific measurement devices and certified |
7 | by the Department of Environmental Protection as having met the |
8 | department's standards for accreditation. |
9 | "Association." A partnership, limited partnership or any |
10 | other form of unincorporated enterprise owned or conducted by |
11 | two or more persons. |
12 | "Corporation." A corporation, joint stock association, |
13 | limited liability company, business trust or any other |
14 | incorporated enterprise organized under the laws of this |
15 | Commonwealth, the United States or any other state, territory or |
16 | foreign country or dependency. |
17 | "Department." The Department of Revenue of the Commonwealth. |
18 | "Fund." The Natural Gas Severance Tax Fund established under | <-- |
19 | section 1527. |
20 | "Gross value." The volume-weighted average market price for |
21 | all arms-length transactions that a producer receives at the |
22 | sales meter for natural gas during a reporting period. |
23 | "Meter." A device to measure the passage of volumes of gases |
24 | or liquids past a certain point. |
25 | "Municipality." A city, borough, incorporated town or a | <-- |
26 | township. |
27 | "Natural gas." A fossil fuel consisting of a mixture of |
28 | hydrocarbon gases, primarily methane, possibly including ethane, |
29 | propane, butane, pentane, carbon dioxide, oxygen, nitrogen and |
30 | hydrogen sulfide and other gas species. The term includes |
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1 | natural gas from oil fields known as associated gas or casing |
2 | head gas, natural gas fields known as nonassociated gas, coal |
3 | beds, shale beds and other formations. |
4 | "Non-producing "Nonproducing site." A point of severance | <-- |
5 | that is not capable of producing a natural gas in paying | <-- |
6 | quantities. |
7 | "Paying quantities." Profit to the producer, however small, |
8 | over the producer's current operating expenses. |
9 | "Person." Every natural person, including a corporation, | <-- |
10 | limited liability company, business trust, trust, guardian or |
11 | other fiduciary, association, government entity or corporation. |
12 | "Person." A natural person or a corporation, fiduciary, | <-- |
13 | association or other entity, including the Commonwealth, its |
14 | political subdivisions, instrumentalities and authorities. When |
15 | the term is used in a clause prescribing and imposing a penalty |
16 | or imposing a fine or imprisonment, or both, the term shall |
17 | include the members, as applied to an association, and the |
18 | officers, as applied to a corporation. |
19 | "Producer." A person who engages or continues within this |
20 | Commonwealth in the business of severing natural gas for sale, |
21 | profit or commercial use. The term does not include a person who |
22 | severs natural gas from a storage field. |
23 | "Producing site." A point of severance capable of producing |
24 | natural gas in paying quantities. |
25 | "Reporting period." A calendar month in which natural gas is |
26 | severed. |
27 | "Sales meter." A meter at the point where natural gas is |
28 | sold or transported to a purchaser or market. |
29 | "Sever," "severing" or "severance." The extraction or other |
30 | removal of a natural resource natural gas from the soil or water | <-- |
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1 | of this Commonwealth. |
2 | "Storage field." A natural formation or other site that is | <-- |
3 | used to store natural gas that did not originate from and has |
4 | been injected into the formation or site. |
5 | "Stripper well." A producing site or a nonproducing site |
6 | that is not capable of producing and does not produce more than |
7 | 60,000 cubic feet of natural gas per day. |
8 | "Tax." The tax imposed under this chapter. |
9 | "Taxpayer." A person subject to the tax imposed by this |
10 | chapter. |
11 | "Unit." A thousand cubic feet of natural gas measured at the |
12 | wellhead at a temperature of 60 degrees Fahrenheit and an |
13 | absolute pressure of 14.73 pounds per square inch in accordance |
14 | with American Gas Association Standards and according to Boyle's |
15 | law for the measurement of gas under varying pressures with |
16 | deviations as follows: |
17 | (1) The average absolute atmospheric pressure shall be |
18 | assumed to be 14.4 pounds to the square inch, regardless of |
19 | elevation or location of point of delivery above sea level or |
20 | variations in atmospheric pressure from time to time. |
21 | (2) The temperature of the gas passing the meters shall |
22 | be determined by the continuous use of a recording |
23 | thermometer installed to properly record the temperature of |
24 | gas flowing through the meters. The arithmetic average of the |
25 | temperature recorded each 24-hour day shall be used in |
26 | computing gas volumes. If a recording thermometer is not |
27 | installed, or if installed and not operating properly, an |
28 | average flowing temperature of 60 degrees Fahrenheit shall be |
29 | used in computing gas volume. |
30 | (3) The specific gravity of the gas shall be determined |
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1 | annually by tests made by the use of an Edwards or Acme |
2 | gravity balance, or at intervals as found necessary in |
3 | practice. Specific gravity determinations shall be used in |
4 | computing gas volumes. |
5 | (4) The deviation of the natural gas from Boyle's Law |
6 | shall be determined by annual tests or at other shorter |
7 | intervals as found necessary in practice. The apparatus and |
8 | method used in making the test shall be in accordance with |
9 | recommendations of the National Bureau of Standards or Report |
10 | No. 3 of the Gas Measurement Committee of the American Gas |
11 | Association, or amendments thereto. The results of the tests |
12 | shall be used in computing the volume of gas delivered under |
13 | this chapter. |
14 | "Wellhead meter." A meter placed at a producing or |
15 | nonproducing site to measure the volume of natural gas severed |
16 | for which a wellhead meter certification has been issued. | <-- |
17 | "Wellhead meter certification." A report issued by an | <-- |
18 | accredited laboratory certifying the accuracy of a wellhead |
19 | meter. |
20 | § 1503. Imposition of tax. |
21 | (a) Establishment.--There is levied a privilege natural gas | <-- |
22 | severance tax on every producer who severs natural gas. | <-- |
23 | (b) Rate.--The tax imposed in subsection (a) shall be 5% of |
24 | the gross value of units severed at the wellhead during a |
25 | reporting period, plus 4.7 cents per unit severed, but shall not | <-- |
26 | be imposed on units severed from a stripper well. |
27 | § 1504. Return and payment. |
28 | (a) Requirement.--Every producer is required to file a |
29 | return with the department, on a form to be prescribed by the |
30 | department, reporting all severed natural gas resources per | <-- |
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1 | reporting period and the tax due as imposed under section 1503 | <-- |
2 | (relating to imposition of tax). |
3 | (b) Filing.--The return required by subsection (a) shall be |
4 | filed with the department within 15 days following the end of |
5 | the second calendar month after a reporting period. |
6 | (c) Deadline.--The tax imposed under section 1503 is due on |
7 | the day the return is required to be filed and becomes | <-- |
8 | delinquent if not remitted to the department by that date. |
9 | § 1505. Natural resource gas severance tax registration. | <-- |
10 | (a) Application.--Before a producer severs natural gas in |
11 | this Commonwealth, the producer shall apply to the department |
12 | for a natural gas severance tax registration certificate. | <-- |
13 | (a.1) Application fee.--The department may charge an |
14 | application fee to cover the administrative costs associated |
15 | with the application and registration process. If the department |
16 | charges an application fee, the department shall not register a | <-- |
17 | producer or issue a registration certificate until the producer | <-- |
18 | has paid the application fee. |
19 | (a.2) Declaration.--As part of the application for | <-- |
20 | registration, the producer is required to provide The producer | <-- |
21 | shall include in its application a declaration of all sites in |
22 | this Commonwealth used by the producer for the severance of | <-- |
23 | natural gas. The declaration is to include all producing sites |
24 | and nonproducing sites as well as wellhead meter certification | <-- |
25 | for each. The producer is required to update the declaration |
26 | when the producer adds or removes a producing site or | <-- |
27 | nonproducing site in this Commonwealth or when there is a change |
28 | in the status of a producing site or nonproducing site or when | <-- |
29 | the producer uses a different accredited laboratory to certify |
30 | the accuracy of the producer's wellhead meters. The producer |
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1 | shall update the declaration within 30 days after a calendar |
2 | month in which a change to the declaration occurs. |
3 | (b) Issuance.--After Except as provided in subsection (c), | <-- |
4 | after the receipt of an application, the department shall issue |
5 | the a registration certificate applied for under subsection (a), | <-- |
6 | provided that said applicant shall have filed all required State |
7 | tax reports and paid any State taxes not subject to a timely |
8 | perfected administrative or judicial appeal or subject to a duly |
9 | authorized deferred payment plan. The registration certificate | <-- |
10 | shall be nonassignable. All registrants shall be required to |
11 | renew their registration certificates and wellhead meter | <-- |
12 | certifications on a staggered renewal system established by the |
13 | department. After the initial staggered period, a certificate | <-- |
14 | renewal period, a registration certificate or a wellhead meter | <-- |
15 | certification issued shall be valid for a period of five years. |
16 | (c) Refusal, suspension or revocation.--The department may |
17 | refuse to issue, suspend or revoke the a registration | <-- |
18 | certificate if the applicant or any person holding a certificate | <-- |
19 | registrant has not filed required State tax reports and paid | <-- |
20 | State taxes not subject to a timely perfected administrative or |
21 | judicial appeal or subject to a duly authorized deferred payment |
22 | plan. The department shall notify the applicant or registrant of |
23 | any refusal, suspension or revocation. The notice shall contain |
24 | a statement that the refusal, suspension or revocation may be |
25 | made public. The notice shall be made by first class mail. An |
26 | applicant or registrant aggrieved by the determination of the |
27 | department may file an appeal under the provisions for |
28 | administrative appeals in the act of March 4, 1971 (P.L.6, |
29 | No.2), known as the Tax Reform Code of 1971. In the case of a |
30 | suspension or revocation which is appealed, the registration and | <-- |
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1 | certificate shall remain valid pending a final outcome of the |
2 | appeals process. Notwithstanding sections 274, 353(f), 408(b), |
3 | 603, 702, 802, 904 and 1102 of the Tax Reform Code of 1971 or |
4 | any other provision of law, if no appeal is taken or if an |
5 | appeal is taken and denied at the conclusion of the appeal |
6 | process the department may disclose, by publication or |
7 | otherwise, the identity of a person producer and the fact that | <-- |
8 | the person's producer's registration and certificate has been | <-- |
9 | refused, suspended or revoked under this subsection. Disclosure |
10 | may include the basis for refusal, suspension or revocation. |
11 | (d) Violation.--A person severing natural gas in this |
12 | Commonwealth without holding a valid registration and | <-- |
13 | certificate under subsection (b) shall be guilty of a summary |
14 | offense and shall, upon conviction, be sentenced to pay a fine |
15 | of not less than $300 nor more than $1,500. In the event the |
16 | person convicted defaults, he shall be sentenced to imprisonment |
17 | for not less than five days nor more than 30 days. The penalties |
18 | imposed by this subsection shall be in addition to any other |
19 | penalties imposed by this chapter. For purposes of this |
20 | subsection, the severing of a natural gas during any calendar | <-- |
21 | day shall constitute a separate violation. The Secretary of |
22 | Revenue may designate employees of the department to enforce the |
23 | provisions of this subsection. The employees shall exhibit proof |
24 | of and be within the scope of the designation when instituting |
25 | proceedings as provided by the Pennsylvania Rules of Criminal |
26 | Procedure. |
27 | (e) Failure to obtain license registration certificate.-- | <-- |
28 | Failure to obtain a or hold a valid registration and certificate | <-- |
29 | does not relieve a person from liability for the tax imposed by |
30 | this chapter. |
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1 | § 1505.1. Meters. |
2 | A producer shall provide for and maintain a discrete wellhead |
3 | meter and a discrete sales meters meter. A producer shall ensure | <-- |
4 | that the meters are maintained according to industry standards. |
5 | Any wellhead meter installed after the effective date of this | <-- |
6 | section shall be a digital meter. |
7 | § 1506. Assessments. |
8 | (a) Authorization and requirement.--The department is |
9 | authorized and shall make the inquiries, determinations and |
10 | assessments of the natural gas severance tax, including | <-- |
11 | interest, additions and penalties imposed under this chapter. |
12 | (b) Notice.--The notice of assessment and demand for payment |
13 | shall be mailed to the taxpayer. The notice shall set forth the |
14 | basis of the assessment. The department shall issue a notice of | <-- |
15 | the assessment to the producer. The notice shall set forth the |
16 | department's basis for the assessment. The department shall send |
17 | the notice of assessment to the producer at his taxpayer at its | <-- |
18 | registered address via certified mail if the assessment |
19 | increases the producer's taxpayer's tax liability by $300. | <-- |
20 | Otherwise, the notice of assessment may be sent via regular |
21 | mail. |
22 | § 1507. Time for assessment. |
23 | (a) Requirement.--An assessment as provided under section |
24 | 1506 (relating to assessments) shall be made within three years |
25 | after the date when the return provided for by section 1504 |
26 | (relating to return and payment) is filed or the end of the year |
27 | in which the tax liability arises, whichever shall occur last. |
28 | For the purposes of this subsection and subsection (b), a return |
29 | filed before the last day prescribed for the filing period shall |
30 | be considered as filed on the last day. |
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1 | (b) Exception.--The assessment may be made at any time | <-- |
2 | within six years after the return is filed if the total tax that |
3 | is properly included on the return is in excess of 25% of the |
4 | total tax reported on the return. |
5 | (b) Exception.--If the taxpayer underpays the correct amount | <-- |
6 | of the tax due by 25% or more, the tax may be assessed within |
7 | six years after the date the return was filed. |
8 | (c) Intent to evade.--Where no return is filed or where the |
9 | taxpayer files a false or fraudulent return with intent to evade |
10 | the tax imposed by this chapter, the assessment may be made at |
11 | any time. |
12 | (d) Erroneous credit or refund.--Within three years of the |
13 | granting of a refund or credit or within the period in which an |
14 | assessment or reassessment may have been filed issued by the | <-- |
15 | department for the taxable period for which the refund was |
16 | granted, whichever period shall last occur, the department may |
17 | file issue an assessment to recover a refund or credit made or | <-- |
18 | allowed erroneously. |
19 | § 1508. Extension of limitation period. |
20 | Notwithstanding the provisions of this chapter, the |
21 | assessment period may be extended where in the event a taxpayer | <-- |
22 | has provided written consent before the expiration of the period |
23 | provided in section 1507 (relating to time for assessment) for a |
24 | tax assessment. The amount of tax due may be assessed at any |
25 | time within the extended period. The period extended may be | <-- |
26 | extended further by subsequent written consents made before the |
27 | expiration of the extended period. |
28 | § 1509. Reassessments. |
29 | A producer taxpayer against whom an assessment is made may | <-- |
30 | petition the department for a reassessment under Article XXVII |
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1 | of the act of March 4, 1971 (P.L.6, No.2), known as the Tax |
2 | Reform Code of 1971. |
3 | § 1510. Interest. |
4 | The department shall assess interest on any delinquent tax at |
5 | the rate prescribed under section 806 of the act of April 9, |
6 | 1929 (P.L.343, No. 176), known as The Fiscal Code. |
7 | § 1511. Penalties. |
8 | The department shall enforce the following penalties: |
9 | (1) A penalty against a valid producer without a natural | <-- |
10 | gas severance tax registration and certificate. The penalty | <-- |
11 | shall be $1 for every unit severed without a valid | <-- |
12 | registration and certificate. The department may assess this | <-- |
13 | penalty separately from or in conjunction with any assessment |
14 | of the natural gas severance tax. | <-- |
15 | (2) A penalty against a producer for failure to timely | <-- |
16 | file a return as required under section 1504 (relating to |
17 | return and payment). The penalty shall be 5% of the tax |
18 | liability to be reported on the return for each day beyond |
19 | the due date that the return is not filed. |
20 | (3) In addition to the penalty under paragraph (2), a |
21 | penalty against the producer for a willful failure to timely | <-- |
22 | file a return. The penalty shall be 200% of the tax liability |
23 | required to be reported on the return. |
24 | (4) A penalty against a producer for failure to timely |
25 | pay the tax as required by section 1504(c). The penalty shall |
26 | be 5% of the amount of tax due for each day beyond the |
27 | payment date that the tax is not paid. |
28 | § 1512. Criminal acts. |
29 | (a) Fraudulent return.--Any person with intent to defraud |
30 | the Commonwealth, who willfully makes or causes to be made a |
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1 | return required by this chapter which is false, is guilty of a |
2 | misdemeanor and shall, upon conviction, be sentenced to pay a |
3 | fine of not more than $2,000 or to imprisonment for not more |
4 | than three years, or both. |
5 | (b) Other crimes.-- |
6 | (1) Except as otherwise provided by subsection (a), a |
7 | producer person is guilty of a misdemeanor and shall, upon | <-- |
8 | conviction, be sentenced to pay a fine of not more than |
9 | $1,000 and costs of prosecution or to imprisonment for not |
10 | more than one year, or both, for any of the following: |
11 | (i) Willfully failing to timely remit the tax to the |
12 | department. |
13 | (ii) Willfully failing or neglecting to timely file |
14 | a return or report required by this chapter. |
15 | (iii) Refusing to timely pay a tax, penalty or |
16 | interest imposed or provided for by this chapter. |
17 | (iv) Willfully failing to preserve his its books, | <-- |
18 | papers and records as directed by the department. |
19 | (v) Refusing to permit the department or its |
20 | authorized agents to examine its books, records or |
21 | papers. |
22 | (vi) Knowingly make any incomplete, false or |
23 | fraudulent return or report. |
24 | (vii) Preventing or attempting to prevent the full |
25 | disclosure of the amount of natural gas severance tax | <-- |
26 | due. |
27 | (viii) Providing any person with a false statement |
28 | as to the payment of natural gas severance tax with | <-- |
29 | respect to any pertinent facts. |
30 | (ix) Making, uttering or issuing a false or |
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1 | fraudulent statement. |
2 | (2) The penalties imposed by this section shall be in |
3 | addition to other penalties imposed by this chapter. |
4 | § 1513. Abatement of additions or penalties. |
5 | Upon the filing of a petition for reassessment or a petition |
6 | for refund by a taxpayer as provided under this chapter, |
7 | additions or penalties imposed upon the taxpayer by this chapter |
8 | may be waived or abated in whole or in part where the petitioner |
9 | establishes that he acted in good faith, without negligence and |
10 | with no intent to defraud. |
11 | § 1514. Bulk and auction sales. |
12 | A person that sells or causes to be sold at auction, or that |
13 | sells or transfers in bulk, 51% or more of a stock of goods, |
14 | wares or merchandise of any kind, fixtures, machinery, |
15 | equipment, buildings or real estate or is involved in a business | <-- |
16 | for which the person is licensed or required to be licensed | <-- |
17 | holds a registration certificate or is required to obtain a | <-- |
18 | registration certificate under the provisions of this chapter |
19 | shall be subject to the provisions of section 1403 of the act of |
20 | April 9, 1929 (P.L.343, No.176), known as The Fiscal Code. |
21 | § 1515. Collection upon failure to request reassessment, review |
22 | or appeal. |
23 | (a) Power of department.--The department may collect a the | <-- |
24 | natural gas severance tax: |
25 | (1) If an assessment of the tax is not paid within 30 | <-- |
26 | days after notice to the taxpayer when no petition for |
27 | reassessment has been filed. |
28 | (2) Within 60 days of the reassessment, if no petition |
29 | for review has been filed. |
30 | (3) If no appeal has been made, within 30 days of: |
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1 | (i) the Board of Finance and Revenue's decision of a |
2 | petition for review; or |
3 | (ii) the expiration of the board's time for acting |
4 | upon the petition. |
5 | (4) In all cases of judicial sales, receiverships, |
6 | assignments or bankruptcies. |
7 | (b) Prohibition.--In a case for the collection of taxes |
8 | under subsection (a), the person taxpayer against whom they were | <-- |
9 | assessed shall not be permitted to set up a ground of defense |
10 | that might have been determined by the department, the Board of |
11 | Finance and Revenue or the courts, provided that the defense of |
12 | failure of the department to mail notice of assessment or |
13 | reassessment to the taxpayer and the defense of payment of |
14 | assessment or reassessment may be raised in proceedings for |
15 | collection by a motion to stay the proceedings. |
16 | § 1516. Tax liens. |
17 | (a) Lien imposed.--If any person liable to pay a tax | <-- |
18 | taxpayer neglects or refuses to pay the tax natural gas | <-- |
19 | severance tax for which the taxpayer is liable under this |
20 | chapter after demand, the amount, including interest, addition |
21 | or penalty, together with additional costs that may accrue, |
22 | shall be a lien in favor of the Commonwealth upon the real and |
23 | personal property of the person taxpayer but only after the same | <-- |
24 | has been entered and docketed of record by the prothonotary of |
25 | the county where the property is situated. The department may, |
26 | at any time, transmit to the prothonotaries of the respective |
27 | counties certified copies of all liens for taxes imposed by this | <-- |
28 | act and penalties and interest section. It shall be the duty of | <-- |
29 | the prothonotary receiving the lien to enter and docket the same |
30 | of record to the office of the prothonotary. The lien shall be |
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1 | indexed as judgments are now indexed. No prothonotary shall |
2 | require as a condition precedent to the entry of the lien the |
3 | payment of costs incidental to its entry. |
4 | (b) Priority of lien and effect on judicial sale.--Except |
5 | for the costs of the sale and the writ upon which the sale was |
6 | made and real estate taxes and municipal claims against the |
7 | property, the a lien imposed under this section shall have | <-- |
8 | priority from the date of its recording and shall be fully paid |
9 | and satisfied out of the proceeds of any judicial sale of |
10 | property subject to the lien, before any other obligation, | <-- |
11 | judgment, claim, lien or estate to which the property may |
12 | subsequently become subject, but shall be subordinate to |
13 | mortgages and other liens existing and duly recorded or entered |
14 | of record prior to the recording of the tax lien. | <-- |
15 | (c) No discharge by sale on junior lien.--In the case of a |
16 | judicial sale of property subject to a lien imposed under this |
17 | section, upon a lien or claim over which the lien imposed under |
18 | this section has priority, the sale shall discharge the lien |
19 | imposed under this section to the extent only that the proceeds |
20 | are applied to its payment, and the lien shall continue in full |
21 | force and effect as to the balance remaining unpaid. There shall |
22 | be no inquisition or condemnation upon any judicial sale of real |
23 | estate made by the Commonwealth under the provisions of this |
24 | chapter. The lien of the taxes, interest and penalties shall | <-- |
25 | continue as provided in the act of April 9, 1929 (P.L.343, |
26 | No.176), known as The Fiscal Code, and a writ of execution may |
27 | directly issue upon the lien without the issuance and |
28 | prosecution to judgment of a writ of scire facias, provided that |
29 | not less than ten days before issuance of any execution on the |
30 | lien, notice of the filing and the effect of the lien shall be |
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1 | sent by registered mail to the taxpayer at his its last known | <-- |
2 | post office address, provided further that the lien shall have |
3 | no effect upon any stock of goods, wares or merchandise |
4 | regularly sold or leased in the ordinary course of business by |
5 | the person taxpayer against whom the lien has been entered, | <-- |
6 | unless and until a writ of execution has been issued and a levy |
7 | made upon said stock of goods, wares and merchandise. |
8 | (d) Duty of prothonotary.--Any willful failure of any |
9 | prothonotary to carry out any duty imposed upon him by this |
10 | section shall be a misdemeanor. Upon conviction, he shall be |
11 | sentenced to pay a fine of not more than $1,000 and costs of |
12 | prosecution or to imprisonment for not more than one year, or |
13 | both. |
14 | (e) Priority.--Except as provided in this chapter, the |
15 | distribution, voluntary or compulsory, in receivership, |
16 | bankruptcy or otherwise of the property or estate of any person, |
17 | all taxes imposed by this chapter which are due and unpaid and |
18 | are not collectible under the provisions of section 225 of the |
19 | act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code |
20 | of 1971, shall be paid from the first money available for |
21 | distribution in priority to all other claims and liens, except |
22 | as the laws of the United States may give priority to a claim to |
23 | the Federal Government. A person charged with the administration |
24 | or distribution of the property or estate who violates the |
25 | provisions of this section shall be personally liable for the |
26 | taxes imposed by this chapter which are accrued and unpaid and |
27 | chargeable against the person whose property or estate is being |
28 | administered or distributed. |
29 | (f) Other remedies.--Subject to the limitations contained in |
30 | this chapter as to the assessment of taxes, nothing contained in |
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1 | this section shall be construed to restrict, prohibit or limit |
2 | the use by the department in collecting taxes due and payable of |
3 | another remedy or procedure available at law or equity for the |
4 | collection of debts. |
5 | § 1517. Tax suit reciprocity. |
6 | The courts of this Commonwealth shall recognize and enforce |
7 | liabilities for natural gas severance taxes lawfully imposed by |
8 | any other state, provided that the other state recognizes and |
9 | enforces the tax set forth in this chapter. |
10 | § 1518. Service. |
11 | A producer is deemed to have appointed the Secretary of the |
12 | Commonwealth its agent for the acceptance of service of process |
13 | or notice in a proceeding for the enforcement of the civil |
14 | provisions of this chapter and service made upon the Secretary |
15 | of the Commonwealth as agent shall be of the same legal force |
16 | and validity as if the service had been personally made upon the |
17 | person producer. Where service cannot be made upon the person | <-- |
18 | producer in the manner provided by other laws of this | <-- |
19 | Commonwealth relating to service of process, service may be made |
20 | upon the Secretary of the Commonwealth. In that case, a copy of |
21 | the process or notice shall be personally served upon any agent |
22 | or representative of the person producer who may be found within | <-- |
23 | this Commonwealth or, where no agent or representative may be |
24 | found, a copy of the process or notice shall be sent via |
25 | registered mail to the person producer at the last known address | <-- |
26 | of his its principal place of business, home office or | <-- |
27 | residence. |
28 | § 1519. Refunds. |
29 | Under Article XXVII of the act of March 4, 1971 (P.L.6, |
30 | No.2), known as the Tax Reform Code of 1971, the department |
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1 | shall refund all taxes, interest and penalties paid to the |
2 | Commonwealth under the provisions of this chapter to which the |
3 | Commonwealth is not rightfully entitled. The refunds shall be |
4 | made to the person or the person's heirs, successors, assigns or |
5 | other personal representatives who paid the tax, provided that |
6 | no refund shall be made under this section regarding a payment |
7 | made by reason of an assessment where a taxpayer has filed a |
8 | petition for reassessment under section 2702 of the Tax Reform |
9 | Code of 1971 to the extent the petition is adverse to the |
10 | taxpayer by a decision which is no longer subject to further |
11 | review or appeal. Nothing in this chapter shall prohibit a |
12 | taxpayer who has filed a timely petition for reassessment from |
13 | amending it to a petition for refund where the petitioner paid |
14 | the tax assessed. |
15 | § 1520. Refund petition. |
16 | (a) General rule.--Except as provided for in subsection (b), |
17 | the refund or credit of tax, interest or penalty provided for by |
18 | section 1519 (relating to refunds) shall be made only where the |
19 | person who has paid the tax files a petition for refund with the |
20 | department under Article XXVII of the act of March 4, 1971 |
21 | (P.L.6, No.2), known as the Tax Reform Code of 1971, within the |
22 | time limits of section 3003.1 of the Tax Reform Code of 1971. |
23 | (b) Severance tax license.-- Natural gas severance tax.--A | <-- |
24 | refund or credit of tax, interest or penalty paid as a result of |
25 | an assessment made by the department under section 1505 |
26 | (relating to natural resource gas severance tax registration), | <-- |
27 | shall be made only where the person who has paid the tax files |
28 | with the department a petition for a refund with the department |
29 | under Article XXVII within the time limits of section 3003.1 of |
30 | the Tax Reform Code of 1971. The filing of a petition for |
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1 | refund, under the provisions of this subsection, shall not |
2 | affect the abatement of interest, additions or penalties to |
3 | which the person may be entitled by reason of his payment of the |
4 | assessment. |
5 | § 1521. Rules and regulations. |
6 | The department is charged with the enforcement of the |
7 | provisions of this chapter and is authorized and empowered to |
8 | prescribe, adopt, promulgate and enforce rules and regulations |
9 | not inconsistent with the provisions of this chapter relating to |
10 | any matter or thing pertaining to the administration and |
11 | enforcement of the provisions of this chapter and the collection |
12 | of taxes, penalties and interest imposed by this chapter. The |
13 | department may prescribe the extent, if any, to which any of the |
14 | rules and regulations shall be applied without retroactive |
15 | effect. |
16 | § 1522. Recordkeeping. |
17 | (a) General rule.--Every person liable for any tax imposed |
18 | by this chapter, or for the collection of such tax, shall keep | <-- |
19 | records, including those enumerated in subsection (b), render |
20 | statements, make returns and comply with the rules and |
21 | regulations as the department may prescribe regarding matters |
22 | pertinent to the person's business. Whenever it is necessary, |
23 | the department may require a person, by notice served upon the |
24 | person or by regulations, to make returns, render statements or |
25 | keep records as the department deems sufficient to show whether |
26 | or not a person is liable to pay tax under this chapter. |
27 | (a.1) Records.--Records to be maintained are: |
28 | (1) Wellhead meter and sales meter charts for each | <-- |
29 | reporting period and the meter calibration and maintenance |
30 | records. If turbine meters are in use, the maintenance |
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1 | records will be made available to the department upon |
2 | request. |
3 | (2) Records, statements and other instruments furnished |
4 | to a producer by a person to whom the producer delivers for |
5 | sale, transport or delivery of natural gas. |
6 | (3) Records, statements and other instruments as the |
7 | department may prescribe by regulation. |
8 | (b) Records of nonresidents.--A nonresident who does |
9 | business in this Commonwealth as a producer shall keep adequate |
10 | records of the business and of the tax due as a result. The |
11 | records shall be retained within this Commonwealth unless |
12 | retention outside this Commonwealth is authorized by the |
13 | department. The department may require a taxpayer who desires to |
14 | retain records outside this Commonwealth to assume reasonable |
15 | out-of-State audit expenses. |
16 | (c) Keeping of separate records.--A person doing business as | <-- |
17 | a producer, who at the same time producer who is engaged in | <-- |
18 | another business or businesses which do not involve the severing |
19 | of natural gas taxable under this chapter, shall keep separate |
20 | books and records of the businesses so as to show the taxable |
21 | severing of natural gas under this chapter separately from other |
22 | business activities not taxable hereunder. If any person fails |
23 | to keep separate books and records, the person shall be liable |
24 | for a penalty equaling 100% of tax due under this chapter for |
25 | the period where separate records were not maintained. |
26 | § 1523. Examinations. |
27 | The department or any of its authorized agents are authorized |
28 | to examine the books, papers and records of any taxpayer in |
29 | order to verify the accuracy and completeness of any return made |
30 | or, if no return was made, to ascertain and assess the tax |
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1 | imposed by this chapter. The department may require the |
2 | preservation of all books, papers and records for any period |
3 | deemed proper by it but not to exceed three years from the end |
4 | of the calendar year to which the records relate. Every taxpayer |
5 | is required to give to the department or its agent the means, |
6 | facilities and opportunity for examinations and investigation |
7 | under this section. The department is further authorized to |
8 | examine any person, under oath, concerning the taxable severing |
9 | of natural gas by any taxpayer or concerning any other matter |
10 | relating to the enforcement or administration of this chapter, |
11 | and to this end may compel the production of books, papers and |
12 | records and the attendance of all persons whether as parties or |
13 | witnesses whom it believes to have knowledge of relevant |
14 | matters. The procedure for the hearings or examinations shall be |
15 | the same as that provided by the act of April 9, 1929 (P.L.343, |
16 | No. 176), known as The Fiscal Code. |
17 | § 1524. Unauthorized disclosure. |
18 | Any information gained by the department as a result of any |
19 | return, examination, investigation, hearing or verification |
20 | required or authorized by this chapter shall be confidential |
21 | except for official purposes and except in accordance with |
22 | proper judicial order or as otherwise provided by law, and any |
23 | person unlawfully divulging the information shall be guilty of a |
24 | misdemeanor and shall, upon conviction, be sentenced to pay a |
25 | fine of not more than $1000 and costs of prosecution or to |
26 | imprisonment for not more than one year, or both. |
27 | § 1525. Cooperation with other governments. |
28 | Notwithstanding the provisions of section 1517 (relating to |
29 | tax suit reciprocity), the department may permit the |
30 | Commissioner of the Internal Revenue Service of the United |
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1 | States, the proper officer of any state or the authorized |
2 | representative of either officer of them to inspect the tax | <-- |
3 | returns of any taxpayer, or may furnish to the commissioner or | <-- |
4 | officer or to his either of their authorized representative an | <-- |
5 | abstract of the return of any taxpayer, or supply him with |
6 | information concerning any item contained in any return or |
7 | disclosed by the report of any examination or investigation of |
8 | the return of any taxpayer. This permission shall be granted |
9 | only if the statutes laws of the United States or another state | <-- |
10 | grant substantially similar privileges to the proper officer of |
11 | the Commonwealth charged with the administration of this |
12 | chapter. |
13 | § 1526. Bonds. |
14 | (a) Taxpayer to file bond.--The department may require a |
15 | nonresident natural person or any foreign corporation, |
16 | association, fiduciary, partnership or other entity, not | <-- |
17 | authorized to do business within this Commonwealth or not having |
18 | an established place of business in this Commonwealth and |
19 | subject to the tax imposed by section 1503 (relating to |
20 | imposition of tax), to file a bond issued by a surety company |
21 | authorized to do business in this Commonwealth and approved by |
22 | the Insurance Commissioner as to solvency and responsibility, in |
23 | amounts as it may fix, to secure the payment of any tax or |
24 | penalties due or which may become due from a natural person or | <-- |
25 | nonresident natural person, corporation, association, fiduciary | <-- |
26 | or other entity whenever it deems it necessary to protect the |
27 | revenues obtained under this chapter. In order to protect the | <-- |
28 | revenues obtained under this chapter, the department shall |
29 | require a nonresident natural person or a foreign corporation, |
30 | association, fiduciary, partnership or entity who is not |
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1 | authorized to do business or does not have an established place |
2 | of business in this Commonwealth and is subject to the tax |
3 | imposed by section 1503, to file a bond issued by a surety |
4 | company authorized to do business in this Commonwealth and |
5 | approved by the Insurance Commissioner as to solvency and |
6 | responsibility, in amounts as it may fix, to secure the payments |
7 | of any tax or penalties due or which may become due from a |
8 | natural person, corporation or other entity. The department may |
9 | also require a bond of a person petitioning the department for |
10 | reassessment in the case of any assessment over $500 or where, |
11 | in its opinion, the ultimate collection is in jeopardy. For a |
12 | period of three years, the department may require a bond of any |
13 | person who has, on three or more occasions within a 12-month |
14 | period, either filed a return or made payment to the department |
15 | more than 30 days late. In the event the department determines a |
16 | taxpayer is required to file a bond, it shall give notice to the |
17 | taxpayer specifying the amount of the bond required. The |
18 | taxpayer shall file the bond within five days after notice is |
19 | given by the department unless, within five days, the taxpayer |
20 | shall request in writing a hearing before the Secretary of |
21 | Revenue or his representative. At the hearing, the necessity, |
22 | propriety and amount of the bond shall be determined by the |
23 | secretary or the secretary's representative. The determination |
24 | shall be final and the taxpayer shall comply with it within 15 |
25 | days after notice is mailed to the taxpayer. |
26 | (b) Securities in lieu of bond.--In lieu of the bond |
27 | required by this section securities approved by the department |
28 | or cash in a prescribed amount may be deposited. The securities |
29 | or cash shall be kept in the custody of the department. The |
30 | department may apply the securities or cash to a tax the tax | <-- |
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1 | imposed by this chapter and interest or penalties due without |
2 | notice to the depositor. The securities may be sold by the |
3 | department to pay a the tax and/or interest or penalties due at | <-- |
4 | public or private sale upon five days' written notice to the |
5 | depositor. |
6 | (c) Failure to file bond.--The department may file a lien |
7 | under section 1516 (relating to tax liens) against any taxpayer |
8 | who fails to file a bond when required to do so under this |
9 | section. All funds received upon execution of the judgment on |
10 | the lien shall be refunded to the taxpayer with 3% interest, |
11 | should a final determination be made that he it does not owe any | <-- |
12 | payment to the department. |
13 | § 1527. Natural Gas Severance Tax Fund. | <-- |
14 | (a) Establishment.--The Natural Gas Severance Tax Fund is |
15 | established as a separate fund in the State Treasury. |
16 | (b) Deposit.--The proceeds of the natural gas severance tax, |
17 | penalties and interest imposed by this chapter, less the amounts |
18 | appropriated under section 1529 (relating to appropriation), |
19 | shall be deposited into the fund. |
20 | (c) Restriction.--The money in the fund shall only be used |
21 | in accordance with section 1528 (relating to administration of |
22 | fund). |
23 | § 1528. Administration of fund. |
24 | (a) Transfers.--The State Treasurer shall make the following |
25 | transfers from the fund on a quarterly basis commencing on the |
26 | first business day of January 2010: |
27 | (1) Sixty percent to the General Fund. |
28 | (2) Three percent to the Department of Public Welfare to |
29 | provide cash and crisis grants to low-income households under |
30 | the Low Income Home Energy Assistance Program. |
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1 | (3) Fifteen percent to the Environmental Stewardship |
2 | Fund. |
3 | (4) Four percent to the Hazardous Sites Cleanup Fund. |
4 | (5) Five percent to the Liquid Fuels Tax Fund for the |
5 | reconstruction, maintenance and repair of State roadways and |
6 | bridges. The funds under this paragraph shall be: |
7 | (i) allocated in addition to and not in lieu of any |
8 | funds normally and customarily allocated to the |
9 | reconstruction, maintenance and repair of roadways and |
10 | bridges by the Department of Transportation; and |
11 | (ii) distributed equally among all the 67 counties |
12 | of this Commonwealth. |
13 | (b) Distributions.-- |
14 | (1) The State Treasurer shall distribute from the fund, |
15 | on a quarterly basis commencing on the first business day of |
16 | January 2010, 4.5% to municipalities where natural gas has |
17 | been severed and taxed under this chapter in the previous |
18 | quarter. The amount distributed shall be determined on a pro |
19 | rata basis as follows: The total amount to be distributed |
20 | under this paragraph is divided by the total number of |
21 | taxable gas units severed in the Commonwealth during the |
22 | preceding quarter; this quotient is then multiplied by the |
23 | total number of taxable gas units severed in the municipality |
24 | during the preceding quarter. The result equals the amount of |
25 | money to be distributed to the municipality, which shall be |
26 | used solely for any of the following: |
27 | (i) Reconstruction, maintenance and repair of |
28 | municipal roadways and bridges which the municipality has |
29 | determined have been or are being used extensively to |
30 | transport natural gas or equipment related to the |
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1 | production thereof. |
2 | (ii) Parks and recreation. |
3 | (iii) Industrial and commercial development. |
4 | (iv) Preservation and improvement of municipal water |
5 | supplies. |
6 | (v) Maintenance and capital improvements to the |
7 | municipal waste and sewage systems. |
8 | (vi) Preservation and reclamation of the surface |
9 | waters of the municipality. |
10 | (vii) Other lawful purposes reasonably related to |
11 | the consequences of severing natural gas in the |
12 | municipality. |
13 | (2) The State Treasurer shall distribute from the fund, |
14 | on a quarterly basis commencing on the first business day of |
15 | January 2010, 4.5% to counties where natural gas has been |
16 | severed and taxed under this chapter in the previous quarter. |
17 | The amount distributed to a county shall be determined on a |
18 | pro rata basis as follows: The total amount to be distributed |
19 | under this paragraph is divided by the total number of |
20 | taxable gas units severed in the Commonwealth during the |
21 | preceding quarter; this quotient is then multiplied by the |
22 | total number of taxable gas units severed in the county |
23 | during the preceding quarter. The result equals the amount of |
24 | money to be distributed to the county, which shall be |
25 | administered by a board comprised of the chairperson of the |
26 | board of county commissioners, a representative from the |
27 | natural gas producing municipalities within the county and a |
28 | county commissioner selected by the representative of the |
29 | natural gas producing municipalities. The board shall give |
30 | priority to the reconstruction, repair and maintenance of |
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1 | county roadways and bridges determined by the board to have |
2 | been and are used to transport natural gas or equipment |
3 | related to the production thereof and may allocate the |
4 | remainder to the county or its municipalities for any of the |
5 | purposes enumerated in subsection (b)(1). A simple majority |
6 | vote of all the members of the board shall be required for |
7 | any action under this paragraph. |
8 | (3) The State Treasurer shall distribute from the fund, |
9 | on a quarterly basis commencing on the first day of January |
10 | 2010, 2% to the Pennsylvania Game Commission, which shall be |
11 | used for the commission's operational, administrative and |
12 | enforcement costs. |
13 | (4) The State Treasurer shall distribute from the fund, |
14 | on a quarterly basis commencing on the first day of January |
15 | 2010, 2% to the Pennsylvania Fish and Boat Commission, which |
16 | shall be used for the commission's operational, |
17 | administrative and enforcement costs. |
18 | (c) Annual reports.--Counties and municipalities receiving |
19 | money from the fund under this section shall submit to the |
20 | Department of Transportation, on a form to be provided by the |
21 | Department of Transportation on its Internet website, within 30 |
22 | days following the end of each fiscal year a report that |
23 | accounts for the use of the money distributed to them under |
24 | section 1528 in the fiscal year preceding the date of the |
25 | report. The Department of Transportation shall submit to the |
26 | Governor, to the chair and minority chair of the Transportation |
27 | Committee of the Senate and the chair and minority chair of the |
28 | Transportation Committee of the House of Representatives within |
29 | 45 days following the end of each fiscal year a report that |
30 | accounts for the use of the money distributed to the Department |
|
1 | of Transportation under section 1528 in the fiscal year |
2 | preceding the date of the report and that includes copies of the |
3 | reports submitted to the Department of Transportation by the |
4 | counties and municipalities receiving money from the fund. |
5 | § 1527 1529. Appropriation. | <-- |
6 | The amount of the proceeds from the tax imposed by this |
7 | chapter as shall be necessary for the payment of refunds, |
8 | enforcement or administration under this chapter, is hereby |
9 | appropriated for such purposes. |
10 | Section 2. This act shall take effect October 1, 2009. |
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