PRINTER'S NO. 3389

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No. 2472 Session of 1990

        INTRODUCED BY LESCOVITZ, PESCI, COY, HALUSKA, HERMAN, NOYE,
           JOHNSON, KENNEY, DALEY, PISTELLA, TELEK, TIGUE, MORRIS,
           D. R. WRIGHT, BILLOW AND CORRIGAN, APRIL 23, 1990

        REFERRED TO COMMITTEE ON FINANCE, APRIL 23, 1990

                                     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," providing for reciprocal agreements with
    11     adjoining states relating to sales tax assessment against
    12     political subdivisions.

    13     The General Assembly of the Commonwealth of Pennsylvania
    14  hereby enacts as follows:
    15     Section 1.  Section 204(12) of the act of March 4, 1971
    16  (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
    17  to read:
    18     Section 204.  Exclusions from Tax.--The tax imposed by
    19  section 202 shall not be imposed upon
    20     * * *
    21     (12)  The sale at retail to, or use [by the United States,
    22  this Commonwealth or its instrumentalities or political

     1  subdivisions of tangible personal property or services.] of
     2  tangible personal property or services by:
     3     (i)  The United States;
     4     (ii)  This Commonwealth or its instrumentalities or political
     5  subdivisions;
     6     (iii)  Another state or that state's instrumentalities or
     7  political subdivisions provided that the Secretary of Revenue,
     8  with the approval of the Governor, enter into a reciprocal
     9  agreement with the other state which provides that purchases by
    10  this Commonwealth and its instrumentalities and political
    11  subdivisions in the other state shall also be excluded from tax
    12  imposition of any sales and use tax.
    13     * * *
    14     Section 2.  This act shall take effect in 60 days.











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