PRIOR PRINTER'S NO. 3302 PRINTER'S NO. 3422
No. 2363 Session of 2002
INTRODUCED BY CORNELL, RUBLEY, M. WRIGHT, STABACK, FICHTER,
SATHER, SAYLOR, HERSHEY, HORSEY, CREIGHTON, NAILOR,
E. Z. TAYLOR, TIGUE, THOMAS, GRUCELA, CLARK, TRICH, MUNDY,
BELFANTI, ALLEN, TRELLO, MELIO, BUNT, CAPPELLI, PISTELLA,
YOUNGBLOOD, WOJNAROSKI, WASHINGTON, SOLOBAY, MARSICO, JAMES,
GABIG, WILT, G. WRIGHT, B. SMITH, McGILL, ADOLPH, CLYMER,
STEELMAN, PERZEL AND ZUG, FEBRUARY 12, 2002
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, MARCH 13, 2002
AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2 act relating to tax reform and State taxation by codifying
3 and enumerating certain subjects of taxation and imposing
4 taxes thereon; providing procedures for the payment,
5 collection, administration and enforcement thereof; providing
6 for tax credits in certain cases; conferring powers and
7 imposing duties upon the Department of Revenue, certain
8 employers, fiduciaries, individuals, persons, corporations
9 and other entities; prescribing crimes, offenses and
10 penalties," further providing for the definition of
11 "maintaining a place of business in this Commonwealth," for
12 collection of tax and for seizure of property.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 201(b) of the act of March 4, 1971
16 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
17 August 4, 1991 (P.L.97, No.22) and June 30, 1995 (P.L.139,
18 No.21), is amended to read:
19 Section 201. Definitions.--The following words, terms and
20 phrases when used in this Article II shall have the meaning
1 ascribed to them in this section, except where the context
2 clearly indicates a different meaning:
3 * * *
4 (b) "Maintaining a place of business in this Commonwealth."
5 (1) Having [or], maintaining or using within this
6 Commonwealth, directly or by [a] an agent or subsidiary, an
7 office, distribution house, sales house, warehouse, service
8 enterprise or other place of business, or any agent of general
9 or restricted authority irrespective of whether the place of
10 business or agent is located here permanently or temporarily or
11 whether the person or subsidiary maintaining such place of
12 business or agent is authorized to do business within this
13 Commonwealth; or
14 (2) The engaging in any activity as a business within this
15 Commonwealth by any person, directly or by [a] an agent or
16 subsidiary, in connection with the lease, sale or delivery of
17 tangible personal property or the performance of services
18 thereon for use, storage or consumption or in connection with
19 the sale or delivery for use of the services described in
20 subclauses (11) through (18) of clause (k) of this section,
21 including, but not limited to, having, maintaining or using any
22 office, distribution house, sales house, warehouse or other
23 place of business, any stock of goods or any solicitor,
24 canvasser, salesman, agent or representative under its
25 authority, at its direction or with its permission, regardless
26 of whether the person or subsidiary is authorized to do business
27 in this Commonwealth.
28 (3) Regularly or substantially soliciting orders within this
29 Commonwealth in connection with the lease, sale or delivery of
30 tangible personal property to or the performance thereon of
20020H2363B3422 - 2 -
1 services or in connection with the sale or delivery of the
2 services described in subclauses (11) through (18) of clause (k)
3 of this section for residents of this Commonwealth by means of
4 catalogues or other advertising, whether such orders are
5 accepted within or without this Commonwealth.
6 (3.1) The entering of this Commonwealth on a regular basis
7 by any person to provide assembly, service or repair for
8 tangible personal property, either directly or indirectly
9 through an agent, subsidiary or any person delivering tangible <--
10 personal property on behalf of such person. OR SUBSIDIARY. <--
11 (3.2) Delivering furniture TANGIBLE PERSONAL PROPERTY to <--
12 residences, places of business or other locations within this
13 Commonwealth on a regular basis when such delivery also includes
14 the unpacking or assembling of such furniture TANGIBLE PERSONAL <--
15 PROPERTY.
16 (3.3) Having any other contact with this Commonwealth that
17 would allow the Commonwealth to require a person to collect and
18 remit tax under the Constitution of the United States.
19 (4) The term "maintaining a place of business in this
20 Commonwealth" shall not include:
21 (i) Owning or leasing of tangible or intangible property by
22 a person who has contracted with an unaffiliated commercial
23 printer for printing, provided that:
24 (A) the property is for use by the commercial printer; and
25 (B) the property is located at the Pennsylvania premises of
26 the commercial printer.
27 (ii) Visits by a person's employes or agents to the premises
28 in this Commonwealth of an unaffiliated commercial printer with
29 whom the person has contracted for printing in connection with
30 said contract.
20020H2363B3422 - 3 -
1 * * *
2 Section 2. Section 237(b) of the act, amended December 28,
3 1972 (P.L.1633, No.340) and May 24, 2000 (P.L.106, No.23), is
4 amended to read:
5 Section 237. Collection of Tax.--* * *
6 (b) Collection by Persons Maintaining a Place of Business in
7 the Commonwealth. (1) Every person maintaining a place of
8 business in this Commonwealth and selling or leasing tangible
9 personal property or services, the sale or use of which is
10 subject to tax shall collect the tax from the purchaser or
11 lessee at the time of making the sale or lease, and shall remit
12 the tax to the department, unless such collection and remittance
13 is otherwise provided for in this article.
14 (1.1) Every person maintaining a place of business in this
15 Commonwealth who delivers furniture TANGIBLE PERSONAL PROPERTY <--
16 to a location within this Commonwealth and also unpacks or
17 assembles such furniture TANGIBLE PERSONAL PROPERTY shall <--
18 collect the tax from the purchaser at the time of delivery, and
19 shall remit the tax to the department: Provided, however, That
20 this collection obligation shall apply only if the person
21 delivering the furniture TANGIBLE PERSONAL PROPERTY is <--
22 responsible for collecting all or any portion of the purchase
23 price on behalf of the seller and such person has not obtained
24 from the seller a certification that the tax due under this
25 article has been or will be collected by the seller or that the
26 purchaser has provided the seller with a valid exemption
27 certificate. Every person required to collect tax under this
28 subclause shall be deemed to be selling or leasing services or
29 tangible personal property, the sale or use of which is subject
30 to tax, for purposes of this article.
20020H2363B3422 - 4 -
1 (2) Any person required under this article to collect tax
2 from another person, who shall fail to collect the proper amount
3 of such tax, shall be liable for the full amount of the tax
4 which he should have collected.
5 * * *
6 Section 3. Section 248.3 of the act, added December 22, 1983
7 (P.L.300, No.82), is amended by adding a subsection to read:
8 Section 248.3. Seizure of Property.--(a) If a transient
9 vendor conducting business within the Commonwealth fails to
10 exhibit a valid certificate upon demand by authorized employes
11 of the department, those authorized employes shall have the
12 authority to seize, without warrant, the tangible personal
13 property and the automobile, truck or other means of
14 transportation used to transport or carry that property. All
15 property seized shall be deemed contraband and shall be subject
16 to immediate forfeiture proceedings instituted by the department
17 pursuant to procedures adopted by regulation, except as
18 otherwise provided by this section.
19 (b) Property seized pursuant to subsection (a) shall be
20 released upon:
21 (1) Presentation of a valid certificate to authorized
22 employes of the department; or
23 (2) Registration by the transient vendor with the department
24 and the posting of a bond in the amount of five hundred dollars
25 ($500), either immediately or within fifteen days after the
26 property is seized.
27 (c) If a person required to collect tax under section
28 237(b)(1.1) fails to provide a valid sales tax license number
29 upon demand by authorized employes of the department, the
30 employes shall have the authority to seize, without warrant,
20020H2363B3422 - 5 -
1 such person's truck or other means of transportation used to
2 transport or carry TANGIBLE PERSONAL property delivered to any <--
3 location within this Commonwealth. All property seized pursuant
4 to this subsection shall be deemed contraband and shall be
5 subject to immediate forfeiture proceedings instituted by the
6 department pursuant to the procedures adopted by regulation for
7 the forfeiture of property seized from transient vendors, except
8 that property seized pursuant to this subsection shall be
9 released upon presentation to authorized employes of the
10 department, within twenty days after the property is seized, of
11 satisfactory proof that a sales tax license number has been
12 obtained or applied for and that all delinquent tax returns, if
13 any, have been filed with the department and all tax reported on
14 such returns has been paid.
15 Section 4. This act shall take effect in 60 days.
B5L72MSP/20020H2363B3422 - 6 -