HOUSE AMENDED
PRIOR PRINTER'S NOS. 378, 978 PRINTER'S NO. 1797
No. 365 Session of 1989
INTRODUCED BY ARMSTRONG, HELFRICK, RHOADES, LEMMOND, BRIGHTBILL,
SHAFFER, MADIGAN, PETERSON, SALVATORE, WENGER AND PECORA,
FEBRUARY 1, 1989
AS REPORTED FROM COMMITTEE ON FINANCE, HOUSE OF REPRESENTATIVES,
AS AMENDED, DECEMBER 11, 1989
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 sales and
11 use tax; AND FURTHER DEFINING THE TERMS "EMPLOYE" AND <--
12 "EMPLOYER" FOR PERSONAL INCOME TAX PURPOSES.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Section 204(1) 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 (1) The sale at retail or use of tangible personal property
21 (other than motor vehicles, trailers, semi-trailers, motor
1 boats, aircraft or other similar tangible personal property
2 required under either Federal law or laws of this Commonwealth
3 to be registered or licensed) or services sold by or purchased
4 from a person not a vendor in an isolated transaction or sold by
5 or purchased from a person who is a vendor but is not a vendor
6 with respect to the tangible personal property or services sold
7 or purchased in such transaction: Provided, That inventory and
8 stock in trade so sold or purchased, shall not be excluded from
9 the tax by the provisions of this subsection. Isolated
10 transactions include sales of tangible personal property or
11 services: <--
12 (i) By a group which supports, benefits, enhances and <--
13 encourages the purposes of a specific charitable organization
14 and which is sponsored by or affiliated with the organization,
15 regardless of the number of sales and the number of days on
16 which sales occur in any year;
17 (I) BY A NONPROFIT OR PUBLIC ELEMENTARY OR SECONDARY <--
18 EDUCATIONAL INSTITUTION, REGARDLESS OF THE NUMBER OF SALES AND
19 THE NUMBER OF DAYS ON WHICH SALES OCCUR IN ANY YEAR;
20 (ii) By a group which supports, benefits, enhances and
21 encourages the purposes of a nonprofit OR PUBLIC ELEMENTARY OR <--
22 SECONDARY educational institution and which is sponsored by or
23 affiliated with the institution, regardless of the number of
24 sales and the number of days on which sales occur in any year;
25 and
26 (iii) By volunteer firefighters', ambulance or rescue squad
27 organizations if sales occur no more frequently than six times
28 in any year and on no more than a total of twelve days in any
29 year.
30 * * *
19890S0365B1797 - 2 -
1 Section 2. This act shall take effect immediately. <--
2 SECTION 2. SECTION 301(G) AND (H) OF THE ACT, ADDED AUGUST <--
3 31, 1971 (P.L.362, NO.93), ARE AMENDED TO READ:
4 SECTION 301. DEFINITIONS.--THE FOLLOWING WORDS, TERMS AND
5 PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANING
6 ASCRIBED TO THEM IN THIS SECTION EXCEPT WHERE THE CONTEXT
7 CLEARLY INDICATES A DIFFERENT MEANING. ANY REFERENCE IN THIS
8 ARTICLE TO THE INTERNAL REVENUE CODE SHALL INCLUDE THE INTERNAL
9 REVENUE CODE OF 1954, AS AMENDED TO THE DATE ON WHICH THIS
10 ARTICLE IS EFFECTIVE:
11 * * *
12 (G) "EMPLOYE" MEANS ANY INDIVIDUAL [WHO RENDERS SERVICES TO
13 AN EMPLOYER AND RECEIVES OR ACCRUES COMPENSATION. ANY PERSON]
14 FROM WHOSE [COMPENSATION] WAGES AN EMPLOYER IS REQUIRED UNDER
15 THE INTERNAL REVENUE CODE TO WITHHOLD FEDERAL INCOME TAX [SHALL
16 PRIMA FACIE BE DEEMED AN EMPLOYE].
17 (H) "EMPLOYER" MEANS AN INDIVIDUAL, PARTNERSHIP,
18 ASSOCIATION, CORPORATION, GOVERNMENTAL BODY OR UNIT OR AGENCY,
19 OR ANY OTHER ENTITY WHO OR THAT [EMPLOYS ONE OR MORE PERSONS FOR
20 COMPENSATION. ANY PERSON] IS REQUIRED UNDER THE INTERNAL REVENUE
21 CODE TO WITHHOLD FEDERAL INCOME TAX FROM [COMPENSATION] WAGES
22 PAID TO AN EMPLOYE [SHALL PRIMA FACIE BE DEEMED AN EMPLOYER].
23 * * *
24 SECTION 3. SECTION 2 OF THIS ACT SHALL APPLY TO TAXABLE
25 YEARS BEGINNING ON OR AFTER JANUARY 1, 1990.
26 SECTION 4. THIS ACT SHALL TAKE EFFECT JULY 1, 1990.
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