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| PRIOR PRINTER'S NO. 573 | PRINTER'S NO. 1056 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY DINNIMAN, BAKER, ALLOWAY, BOSCOLA, BROWNE, BRUBAKER, COSTA, ERICKSON, FERLO, FONTANA, HUGHES, KASUNIC, LEACH, YUDICHAK, ORIE, RAFFERTY, SOLOBAY, WAUGH, D. WHITE, MENSCH AND ARGALL, FEBRUARY 17, 2011 |
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| SENATOR BRUBAKER, FINANCE, AS AMENDED, APRIL 13, 2011 |
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| AN ACT |
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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," in sales and use tax, further providing for |
11 | exclusions from tax and for collection of 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, volunteer |
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1 | firefighters' relief association as defined in section 2 of the | <-- |
2 | act of June 11, 1968 (P.L.149, No.84), known as the "Volunteer |
3 | Firefighters' Relief Association Act," 35 Pa.C.S. § 7412 | <-- |
4 | (relating to definitions) or nonprofit educational institution, |
5 | or (ii) a religious organization for religious purposes of |
6 | tangible personal property or services other than pursuant to a |
7 | construction contract: Provided, however, That the exclusion of |
8 | this clause shall not apply with respect to any tangible |
9 | personal property or services used in any unrelated trade or |
10 | business carried on by such organization or institution or with |
11 | respect to any materials, supplies and equipment used and |
12 | transferred to such organization or institution in the |
13 | construction, reconstruction, remodeling, renovation, repairs |
14 | and maintenance of any real estate structure, other than |
15 | building machinery and equipment, except materials and supplies |
16 | when purchased by such organizations or institutions for routine |
17 | maintenance and repairs. If the department has issued sales tax | <-- |
18 | exempt status to a volunteer firefighters' organization or a |
19 | volunteer firefighters' relief association, the sales tax exempt |
20 | status shall be permanent unless the activities of the |
21 | organization or association change so that the organization or |
22 | association does not qualify for sales tax exempt status, in |
23 | which case the organization or association is required to |
24 | immediately notify the department of the changes. After |
25 | notification of such changes or upon review of an audit by the |
26 | Auditor General under 35 Pa.C.S. § 7418 (relating to audits), |
27 | the department may determine that an organization or association |
28 | no longer qualifies for sales tax exempt status and may revoke |
29 | the sales tax exempt status of the organization or association. |
30 | * * * |
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1 | Section 2. Section 237(c) of the act, amended July 1, 1985 |
2 | (P.L.78, No.29), is amended to read: |
3 | Section 237. Collection of Tax.--* * * |
4 | (c) Exemption Certificates. If the tax does not apply to the |
5 | sale or lease of tangible personal property or services, the |
6 | purchaser or lessee shall furnish to the vendor a certificate |
7 | indicating that the sale is not legally subject to the tax. The |
8 | certificate shall be in substantially such form as the |
9 | department may, by regulation, prescribe. Where the tangible |
10 | personal property or service is of a type which is never subject |
11 | to the tax imposed or where the sale or lease is in interstate |
12 | commerce, such certificate need not be furnished. Where a series |
13 | of transactions are not subject to tax, a purchaser or user may |
14 | furnish the vendor with a single exemption certificate in |
15 | substantially such form and valid for such period of time as the |
16 | department may, by regulation, prescribe[.], provided that an | <-- |
17 | exemption certificate furnished to a volunteer firefighters' |
18 | relief association or volunteer firemen's organization shall be |
19 | considered permanent. The department shall provide all school |
20 | districts and intermediate units with a permanent tax exemption |
21 | number. An exemption certificate, which is complete and regular |
22 | and on its face discloses a valid basis of exemption if taken in |
23 | good faith, shall relieve the vendor from the liability imposed |
24 | by this section. An exemption certificate accepted by a vendor |
25 | from a natural person domiciled within this Commonwealth or any |
26 | association, fiduciary, partnership, corporation or other |
27 | entity, either authorized to do business within this |
28 | Commonwealth or having an established place of business within |
29 | this Commonwealth, in the ordinary course of the vendor's |
30 | business, which on its face discloses a valid basis of exemption |
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1 | consistent with the activity of the purchaser and character of |
2 | the property or service being purchased or which is provided to |
3 | the vendor by a charitable, religious, educational, volunteer |
4 | firefighters' relief association or volunteer firemen's |
5 | organization and contains the organization's charitable |
6 | exemption number and which, in the case of any purchase costing |
7 | two hundred dollars ($200) or more, is accompanied by a sworn |
8 | declaration on a form to be provided by the department of an |
9 | intended usage of the property or service which would render it |
10 | nontaxable, shall be presumed to be taken in good faith and the |
11 | burden of proving otherwise shall be on the Department of |
12 | Revenue. |
13 | * * * |
14 | Section 3. This act shall take effect in 60 days. |
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