PRINTER'S NO. 475
No. 452 Session of 2001
INTRODUCED BY WAUGH, COSTA, ROBBINS, M. WHITE, BOSCOLA, BODACK, MOWERY, SCHWARTZ, ARMSTRONG AND LEMMOND, FEBRUARY 15, 2001
REFERRED TO FINANCE, FEBRUARY 15, 2001
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," exempting equipment used for recycling from sales 11 and use tax. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 201(k)(8) 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 201. Definitions.--The following words, terms and 18 phrases when used in this Article II shall have the meaning 19 ascribed to them in this section, except where the context 20 clearly indicates a different meaning: 21 * * * 22 (k) "Sale at retail."
1 * * * 2 (8) Any retention of possession, custody or a license to use 3 or consume tangible personal property or any further obtaining 4 of services described in subclauses (2), (3) and (4) of this 5 clause pursuant to a rental or service contract or other 6 arrangement (other than as security). 7 The term "sale at retail" shall not include (i) any such 8 transfer of tangible personal property or rendition of services 9 for the purpose of resale, or (ii) such rendition of services or 10 the transfer of tangible personal property including, but not 11 limited to, machinery and equipment and parts therefor and 12 supplies to be used or consumed by the purchaser directly in the 13 operations of-- 14 (A) The manufacture of tangible personal property. 15 (B) Farming, dairying, agriculture, horticulture or 16 floriculture when engaged in as a business enterprise. The term 17 "farming" shall include the propagation and raising of ranch 18 raised fur-bearing animals and the propagation of game birds for 19 commercial purposes by holders of propagation permits issued 20 under 34 Pa.C.S. (relating to game) and the propagation and 21 raising of horses to be used exclusively for commercial racing 22 activities. 23 (C) The producing, delivering or rendering of a public 24 utility service, or in constructing, reconstructing, remodeling, 25 repairing or maintaining the facilities which are directly used 26 in producing, delivering or rendering such service. 27 (D) Processing as defined in clause (d) of this section. 28 (E) Recycling of tangible personal property. 29 The exclusions provided in paragraphs (A), (B), (C) [and 30 (D)], (D) and (E) shall not apply to any vehicle required to be 20010S0452B0475 - 2 -
1 registered under The Vehicle Code, except those vehicles used 2 directly by a public utility engaged in business as a common 3 carrier; to maintenance facilities; or to materials, supplies or 4 equipment to be used or consumed in the construction, 5 reconstruction, remodeling, repair or maintenance of real estate 6 other than directly used machinery, equipment, parts or 7 foundations therefor that may be affixed to such real estate. 8 The exclusions provided in paragraphs (A), (B), (C) [and 9 (D)], (D) and (E) shall not apply to tangible personal property 10 or services to be used or consumed in managerial sales or other 11 nonoperational activities, nor to the purchase or use of 12 tangible personal property or services by any person other than 13 the person directly using the same in the operations described 14 in paragraphs (A), (B), (C) [and (D)], (D) and (E) herein. 15 The exclusion provided in paragraph (C) shall not apply to 16 (i) construction materials, supplies or equipment used to 17 construct, reconstruct, remodel, repair or maintain facilities 18 not used directly by the purchaser in the production, delivering 19 or rendition of public utility service, (ii) construction 20 materials, supplies or equipment used to construct, reconstruct, 21 remodel, repair or maintain a building, road or similar 22 structure, or (iii) tools and equipment used but not installed 23 in the maintenance of facilities used directly in the 24 production, delivering or rendition of a public utility service. 25 The exclusions provided in paragraphs (A), (B), (C) [and 26 (D)], (D) and (E) shall not apply to the services enumerated in 27 clauses (k)(11) through (18) and (w) through (kk), except that 28 the exclusion provided in this subclause for farming, dairying 29 and agriculture shall apply to the service enumerated in clause 30 (z). 20010S0452B0475 - 3 -
1 * * * 2 Section 2. This act shall take effect in 60 days. L27L72JS/20010S0452B0475 - 4 -