PRINTER'S NO. 3469
No. 2449 Session of 2004
INTRODUCED BY PHILLIPS, ALLEN, FEESE, ARMSTRONG, BOYD, CAPPELLI,
CLYMER, DENLINGER, FAIRCHILD, GEIST, GODSHALL, HARHAI,
HARRIS, HERSHEY, HESS, HORSEY, JAMES, PICKETT, SCAVELLO,
SCHRODER, B. SMITH, THOMAS AND YOUNGBLOOD, MARCH 17, 2004
REFERRED TO COMMITTEE ON FINANCE, MARCH 17, 2004
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 exclusions from the sales
11 and use tax.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 204(10) of the act of March 4, 1971
15 (P.L.6, No.2), known as the Tax Reform Code of 1971, amended
16 April 23, 1998 (P.L.239, No.45), is amended to read:
17 Section 204. Exclusions from Tax.--The tax imposed by
18 section 202 shall not be imposed upon any of the following:
19 * * *
20 (10) The sale at retail to or use by (i) any charitable
21 organization, volunteer firemen's organization or nonprofit
1 educational institution, or (ii) a religious organization for
2 religious purposes of tangible personal property or services
3 other than pursuant to a construction contract: Provided,
4 however, That the exclusion of this clause shall not apply with
5 respect to any tangible personal property or services used in
6 any unrelated trade or business carried on by such organization
7 or institution or with respect to any materials, supplies and
8 equipment used and transferred to such organization or
9 institution in the construction, reconstruction, remodeling,
10 renovation, repairs and maintenance of any real estate
11 structure, other than building machinery and equipment, except
12 materials and supplies when purchased by such organizations or
13 institutions for routine maintenance and repairs. If a vendor
14 acts in good faith in the maintenance of accurate records of
15 certificates, as prescribed by the Department of Revenue,
16 obtained from such organizations or institutions in order to
17 prove that the sale at retail or use of tangible personal
18 property is excluded under this clause from such tax, then the
19 vendor is not liable for collection of such tax, notwithstanding
20 a finding that the sale at retail or use of such tangible
21 personal property is subject to the tax imposed by section 202.
22 * * *
23 Section 2. This act shall take effect in 60 days.
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