PRINTER'S NO. 1340
No. 1041 Session of 2007
INTRODUCED BY PICCOLA, FOLMER, ORIE, RAFFERTY, WAUGH, O'PAKE AND D. WHITE, AUGUST 1, 2007
REFERRED TO FINANCE, AUGUST 1, 2007
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," in sales and use tax, further providing for 11 definitions and for exclusions from tax. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. Section 201(k)(4), (m) and (o)(4) and (8) of the 15 act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code 16 of 1971, amended May 7, 1997 (P.L.85, No.7), April 23, 1998 17 (P.L.239, No.45) and May 24, 2000 (P.L.106, No.23), are amended 18 and subsection (k) is amended by adding a clause to read: 19 Section 201. Definitions.--The following words, terms and 20 phrases when used in this Article II shall have the meaning 21 ascribed to them in this section, except where the context 22 clearly indicates a different meaning:
1 * * * 2 (k) "Sale at retail." 3 * * * 4 (4) The rendition for a consideration of the service of 5 repairing, altering, mending, pressing, fitting, dyeing, 6 laundering, drycleaning or cleaning tangible personal property 7 [other than] including, but not limited to, wearing apparel or 8 shoes, or applying or installing tangible personal property as a 9 repair or replacement part of other tangible personal property 10 [except] including, but not limited to, wearing apparel or shoes 11 for a consideration, whether or not the services are performed 12 directly or by any means other than by coin-operated self- 13 service laundry equipment for wearing apparel or household goods 14 and whether or not any tangible personal property is transferred 15 in conjunction therewith.[, except such services as are rendered 16 in the construction, reconstruction, remodeling, repair or 17 maintenance of real estate: Provided, however, That this 18 subclause shall not be deemed to impose tax upon such services 19 in the preparation for sale of new items which are excluded from 20 the tax under clause (26) of section 204, or upon diaper 21 service.] 22 * * * 23 (20) (i) The rendition for a consideration of any service, 24 other than a medical service, when the primary objective of the 25 purchaser is the receipt of any benefit of the service 26 performed, as distinguished from the receipt of property. In 27 determining what is a service, the intended use or stated 28 objective of the contracting parties shall not necessarily be 29 controlling. "Medical service" means any service obtained at or 30 through a health care facility as defined in section 103 of the 20070S1041B1340 - 2 -
1 act of July 19, 1979 (P.L.130, No.48), known as the "Health Care 2 Facilities Act." 3 (ii) Any service performed in this Commonwealth shall be 4 subject to the tax imposed under this article unless 5 specifically exempted in this article. With respect to services, 6 other than telecommunication services, such services shall be 7 considered to be performed in this Commonwealth if: 8 (A) performed completely in this Commonwealth; 9 (B) performed partially in this Commonwealth and partially 10 outside of this Commonwealth when the recipient or user of the 11 service is located in this Commonwealth and no sales or use tax 12 equal in rate to that imposed under this article has been paid 13 to another state for the service performed partially in that 14 state; or 15 (C) the place of performance cannot be determined if the 16 recipient or user of the service is located in this 17 Commonwealth. 18 (iii) With respect to services, other than telecommunication 19 services, such services performed partially in this Commonwealth 20 and partially outside of this Commonwealth shall be presumed to 21 have been performed completely in this Commonwealth unless the 22 taxpayer can show the place of performance by clear and 23 convincing evidence. With respect to interstate 24 telecommunication services, only those charges for interstate 25 telecommunications which originate or are received in this 26 Commonwealth and which are billed and charged to a service 27 address in this Commonwealth shall be subject to tax. 28 * * * 29 (m) "Tangible personal property." Corporeal personal 30 property including, but not limited to, goods, wares, 20070S1041B1340 - 3 -
1 merchandise, steam and natural and manufactured and bottled gas
2 [for non-residential use], electricity [for non-residential
3 use], prepaid telecommunications, premium cable or premium video
4 programming service, spirituous or vinous liquor and malt or
5 brewed beverages and soft drinks, interstate telecommunications
6 service originating or terminating in the Commonwealth and
7 charged to a service address in this Commonwealth, [intrastate
8 telecommunications service with the exception of (i) subscriber
9 line charges and basic local telephone service for residential
10 use and (ii) charges for telephone calls paid for by inserting
11 money into a telephone accepting direct deposits of money to
12 operate,] provided further, the service address of any
13 intrastate telecommunications service is deemed to be within
14 this Commonwealth or within a political subdivision, regardless
15 of how or where billed or paid. In the case of any such
16 interstate or intrastate telecommunications service, any charge
17 paid through a credit or payment mechanism which does not relate
18 to a service address, such as a bank, travel, credit or debit
19 card, but not including prepaid telecommunications, is deemed
20 attributable to the address of origination of the
21 telecommunications service.
22 * * *
23 (o) "Use."
24 * * *
25 (4) The obtaining by a purchaser of the service of
26 repairing, altering, mending, pressing, fitting, dyeing,
27 laundering, drycleaning or cleaning tangible personal property
28 [other than] including, but not limited to, wearing apparel or
29 shoes or applying or installing tangible personal property as a
30 repair or replacement part of other tangible personal property
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1 [other than] including, but not limited to, wearing apparel or 2 shoes, whether or not the services are performed directly or by 3 any means other than by means of coin-operated self-service 4 laundry equipment for wearing apparel or household goods, and 5 whether or not any tangible personal property is transferred to 6 the purchaser in conjunction therewith[, except such services as 7 are obtained in the construction, reconstruction, remodeling, 8 repair or maintenance of real estate: Provided, however, That 9 this subclause shall not be deemed to impose tax upon such 10 services in the preparation for sale of new items which are 11 excluded from the tax under clause (26) of section 204, or upon 12 diaper service: And provided further, That the]. The term "use" 13 shall not include-- 14 (A) Any tangible personal property acquired and kept, 15 retained or over which power is exercised within this 16 Commonwealth on which the taxing of the storage, use or other 17 consumption thereof is expressly prohibited by the Constitution 18 of the United States or which is excluded from tax under other 19 provisions of this article. 20 (B) The use or consumption of tangible personal property, 21 including but not limited to machinery and equipment and parts 22 therefor, and supplies or the obtaining of the services 23 described in subclauses (2), (3) and (4) of this clause directly 24 in the operations of-- 25 (i) The manufacture of tangible personal property. 26 (ii) Farming, dairying, agriculture, horticulture or 27 floriculture when engaged in as a business enterprise. The term 28 "farming" shall include the propagation and raising of ranch- 29 raised furbearing animals and the propagation of game birds for 30 commercial purposes by holders of propagation permits issued 20070S1041B1340 - 5 -
1 under 34 Pa.C.S. (relating to game) and the propagation and 2 raising of horses to be used exclusively for commercial racing 3 activities. 4 (iii) The producing, delivering or rendering of a public 5 utility service, or in constructing, reconstructing, remodeling, 6 repairing or maintaining the facilities which are directly used 7 in producing, delivering or rendering such service. 8 (iv) Processing as defined in subclause (d) of this section. 9 The exclusions provided in subparagraphs (i), (ii), (iii) and 10 (iv) shall not apply to any vehicle required to be registered 11 under The Vehicle Code except those vehicles directly used by a 12 public utility engaged in the business as a common carrier; to 13 maintenance facilities; or to materials, supplies or equipment 14 to be used or consumed in the construction, reconstruction, 15 remodeling, repair or maintenance of real estate other than 16 directly used machinery, equipment, parts or foundations 17 therefor that may be affixed to such real estate. The exclusions 18 provided in subparagraphs (i), (ii), (iii) and (iv) shall not 19 apply to tangible personal property or services to be used or 20 consumed in managerial sales or other nonoperational activities, 21 nor to the purchase or use of tangible personal property or 22 services by any person other than the person directly using the 23 same in the operations described in subparagraphs (i), (ii), 24 (iii) and (iv). 25 The exclusion provided in subparagraph (iii) shall not apply 26 to (A) construction materials, supplies or equipment used to 27 construct, reconstruct, remodel, repair or maintain facilities 28 not used directly by the purchaser in the production, delivering 29 or rendition of public utility service or (B) tools and 30 equipment used but not installed in the maintenance of 20070S1041B1340 - 6 -
1 facilities used directly in the production, delivering or 2 rendition of a public utility service. 3 The exclusion provided in subparagraphs (i), (ii), (iii) and 4 (iv) shall not apply to the services enumerated in clauses 5 (o)(9) through (16) and (w) through (kk), except that the 6 exclusion provided in subparagraph (ii) for farming, dairying 7 and agriculture shall apply to the service enumerated in clause 8 (z). 9 * * * 10 [(8) The term "use" shall not include the providing of a 11 motor vehicle to a nonprofit private or public school to be used 12 by such a school for the sole purpose of driver education.] 13 * * * 14 Section 2. Section 204 of the act, amended, added or 15 repealed August 31, 1971 (P.L.362, No.93), July 20, 1974 16 (P.L.535, No.183), October 17, 1974 (P.L.756, No.255), December 17 14, 1977 (P.L.322, No.93), October 27, 1979 (P.L.242, No.79), 18 December 8, 1980 (P.L.1117, No.195), December 16, 1980 19 (P.L.1240, No.223), October 22, 1981 (P.L.314, No.109), June 23, 20 1982 (P.L.610, No.172), December 9, 1982 (P.L.1047, No.246), 21 July 21, 1983 (P.L.63, No.29), December 19, 1985 (P.L.354, 22 No.100), July 13, 1987 (P.L.317, No.58), August 4, 1991 (P.L.97, 23 No.22), December 13, 1991 (P.L.373, No.40), June 16, 1994 24 (P.L.279, No.48), June 30, 1995 (P.L.139, No.21), May 7, 1997 25 (P.L.85, No.7), April 23, 1998 (P.L.239, No.45), May 12, 1999 26 (P.L.26, No.4), May 24, 2000 (P.L.106, No.23), December 20, 2000 27 (P.L.841, No.119), June 22, 2001 (P.L.353, No.23), June 29, 2002 28 (P.L.559, No.89), December 23, 2003 (P.L.250, No.46), July 6, 29 2006 (P.L.319, No.67) and November 29, 2006 (P.L.1630, No.189), 30 is amended to read: 20070S1041B1340 - 7 -
1 Section 204. Exclusions from Tax.--The tax imposed by 2 section 202 shall not be imposed upon any of the following: 3 (1) The sale at retail or use of tangible personal property 4 (other than motor vehicles, trailers, semi-trailers, motor 5 boats, aircraft or other similar tangible personal property 6 required under either Federal law or laws of this Commonwealth 7 to be registered or licensed) or services sold by or purchased 8 from a person not a vendor in an isolated transaction or sold by 9 or purchased from a person who is a vendor but is not a vendor 10 with respect to the tangible personal property or services sold 11 or purchased in such transaction: Provided, That inventory and 12 stock in trade so sold or purchased, shall not be excluded from 13 the tax by the provisions of this subsection. 14 (2) The use of tangible personal property purchased by a 15 nonresident person outside of, and brought into this 16 Commonwealth for use therein for a period not to exceed seven 17 days, or for any period of time when such nonresident is a 18 tourist or vacationer and, in either case not consumed within 19 the Commonwealth. 20 (3) The use of tangible personal property purchased outside 21 this Commonwealth for use outside this Commonwealth by a then 22 nonresident natural person or a business entity not actually 23 doing business within this Commonwealth, who later brings such 24 tangible personal property into this Commonwealth in connection 25 with his establishment of a permanent business or residence in 26 this Commonwealth: Provided, That such property was purchased 27 more than six months prior to the date it was first brought into 28 this Commonwealth or prior to the establishment of such business 29 or residence, whichever first occurs. This exclusion shall not 30 apply to tangible personal property temporarily brought into 20070S1041B1340 - 8 -
1 Pennsylvania for the performance of contracts for the
2 construction, reconstruction, remodeling, repairing and
3 maintenance of real estate.
4 [(4) The sale at retail or use of disposable diapers; pre-
5 moistened wipes; incontinence products; colostomy deodorants;
6 toilet paper; sanitary napkins, tampons or similar items used
7 for feminine hygiene; or toothpaste, toothbrushes or dental
8 floss.
9 (5) The sale at retail or use of steam, natural and
10 manufactured and bottled gas, fuel oil, electricity or
11 intrastate subscriber line charges, basic local telephone
12 service or telegraph service when purchased directly by the user
13 thereof solely for his own residential use and charges for
14 telephone calls paid for by inserting money into a telephone
15 accepting direct deposits of money to operate.]
16 (10) The sale at retail to, or use by (i) any charitable
17 organization, volunteer firemen's organization or nonprofit
18 educational institution, or (ii) a religious organization for
19 religious purposes of tangible personal property or services
20 other than pursuant to a construction contract: Provided,
21 however, That the exclusion of this clause shall not apply with
22 respect to any tangible personal property or services used in
23 any unrelated trade or business carried on by such organization
24 or institution or with respect to any materials, supplies and
25 equipment used and transferred to such organization or
26 institution in the construction, reconstruction, remodeling,
27 renovation, repairs and maintenance of any real estate
28 structure, other than building machinery and equipment, except
29 materials and supplies when purchased by such organizations or
30 institutions for routine maintenance and repairs.
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1 (11) The sale at retail, or use of gasoline and other motor 2 fuels, the sales of which are otherwise subject to excise taxes 3 under [the act of May 21, 1931 (P.L.194), known as the "Liquid 4 Fuels Tax Act," and the act of January 14, 1952 (P.L.1965), 5 known as the "Fuel Use Tax Act."] 75 Pa.C.S. Ch. 90 (relating to 6 liquid fuels and fuels tax). 7 (12) The sale at retail to, or use by the United States, 8 this Commonwealth or its instrumentalities or political 9 subdivisions of tangible personal property or services. 10 [(13) The sale at retail, or use of wrapping paper, wrapping 11 twine, bags, cartons, tape, rope, labels, nonreturnable 12 containers and all other wrapping supplies, when such use is 13 incidental to the delivery of any personal property, except that 14 any charge for wrapping or packaging shall be subject to tax at 15 the rate imposed by section 202. 16 (14) Sale at retail or use of vessels designed for 17 commercial use of registered tonnage of fifty tons or more when 18 produced by the builders thereof upon special order of the 19 purchaser. 20 (15) Sale at retail of tangible personal property or 21 services used or consumed in building, rebuilding, repairing and 22 making additions to or replacements in and upon vessels designed 23 for commercial use of registered tonnage of fifty tons or more 24 upon special order of the purchaser, or when rebuilt, repaired 25 or enlarged, or when replacements are made upon order of or for 26 the account of the owner. 27 (16) The sale at retail or use of tangible personal property 28 or services to be used or consumed for ship cleaning or 29 maintenance or as fuel, supplies, ships' equipment, ships' 30 stores or sea stores on vessels designed for commercial use of 20070S1041B1340 - 10 -
1 registered tonnage of fifty tons or more to be operated 2 principally outside the limits of the Commonwealth.] 3 (17) The sale at retail or use of prescription [or non- 4 prescription] medicines[,] or drugs or prescription or 5 nonprescription medical supplies, crutches and wheelchairs for 6 the use of cripples and invalids, artificial limbs, artificial 7 eyes and artificial hearing devices when designed to be worn on 8 the person of the purchaser or user, false teeth and materials 9 used by a dentist in dental treatment, eyeglasses when 10 especially designed or prescribed by an ophthalmologist, oculist 11 or optometrist for the personal use of the owner or purchaser 12 and artificial braces and supports designed solely for the use 13 of crippled persons or any other therapeutic, prosthetic or 14 artificial device designed for the use of a particular 15 individual to correct or alleviate a physical incapacity, 16 including but not limited to hospital beds, iron lungs, and 17 kidney machines. 18 [(18) The sale at retail or use of coal.] 19 (24) The sale at retail or use of motor vehicles, trailers 20 and semi-trailers, or bodies attached to the chassis thereof, 21 sold to a nonresident of Pennsylvania to be used outside of 22 Pennsylvania and which are registered in a state other than 23 Pennsylvania within twenty days after delivery to the vendee. 24 [(25) The sale at retail or use of water. 25 (26) The sale at retail or use of all vesture, wearing 26 apparel, raiments, garments, footwear and other articles of 27 clothing, including clothing patterns and items that are to be a 28 component part of clothing, worn or carried on or about the 29 human body but all accessories, ornamental wear, formal day or 30 evening apparel, and articles made of fur on the hide or pelt or 20070S1041B1340 - 11 -
1 any material imitative of fur and articles of which such fur, 2 real, imitation or synthetic, is the component material of chief 3 value, but only if such value is more than three times the value 4 of the next most valuable component material, and sporting goods 5 and clothing not normally used or worn when not engaged in 6 sports shall not be excluded from the tax. 7 (28) The sale at retail or use of religious publications 8 sold by religious groups and Bibles and religious articles.] 9 (29) The sale at retail or use of food and beverages for 10 human consumption, except that this exclusion shall not apply 11 with respect to-- 12 (i) Soft drinks; 13 (ii) Malt and brewed beverages and spirituous and vinous 14 liquors; 15 (iii) Food or beverages, whether sold for consumption on or 16 off the premises or on a "take-out" or "to go" basis or 17 delivered to the purchaser or consumer, when purchased (A) from 18 persons engaged in the business of catering; or (B) from persons 19 engaged in the business of operating establishments from which 20 ready-to-eat food and beverages are sold, including, but not 21 limited to, restaurants, cafes, lunch counters, private and 22 social clubs, taverns, dining cars, hotels, night clubs, fast 23 food operations, pizzerias, fairs, carnivals, lunch carts, ice 24 cream stands, snack bars, cafeterias, employe cafeterias, 25 theaters, stadiums, arenas, amusement parks, carryout shops, 26 coffee shops and other establishments whether mobile or 27 immobile. For purposes of this clause, a bakery, a pastry shop, 28 a donut shop, a delicatessen, a grocery store, a supermarket, a 29 farmer's market, a convenience store or a vending machine shall 30 not be considered an establishment from which food or beverages 20070S1041B1340 - 12 -
1 ready to eat are sold except for the sale of meals, sandwiches, 2 food from salad bars, hand-dipped or hand-served iced based 3 products including ice cream and yogurt, hot soup, hot pizza and 4 other hot food items, brewed coffee and hot beverages. For 5 purposes of this subclause, beverages shall not include malt and 6 brewed beverages and spirituous and vinous liquors but shall 7 include soft drinks. The sale at retail of food and beverages at 8 or from a school or church in the ordinary course of the 9 activities of such organization is not subject to tax. 10 [(30) The sale at retail or use of newspapers. For purposes 11 of this section, the term "newspaper" shall mean a "legal 12 newspaper" or a publication containing matters of general 13 interest and reports of current events which qualifies as a 14 "newspaper of general circulation" qualified to carry a "legal 15 advertisement" as those terms are defined in 45 Pa.C.S. § 101 16 (relating to definitions), not including magazines. This 17 exclusion shall also include any printed advertising materials 18 circulated with such newspaper regardless of where or by whom 19 such printed advertising material was produced. 20 (31) The sale at retail or use of caskets and burial vaults 21 for human remains and markers and tombstones for human graves.] 22 (32) The sale at retail or use of flags of the United States 23 of America and the Commonwealth of Pennsylvania. 24 [(33) The sale at retail or use of textbooks for use in 25 schools, colleges and universities, either public or private 26 when purchased in behalf of or through such schools, colleges or 27 universities provided such institutions of learning are 28 recognized by the Department of Education. 29 (34) The sale at retail, or use of motion picture film 30 rented or licensed from a distributor for the purpose of 20070S1041B1340 - 13 -
1 commercial exhibition. 2 (35) The sale at retail or use of mail order catalogs and 3 direct mail advertising literature or materials, including 4 electoral literature or materials, such as envelopes, address 5 labels and a one-time license to use a list of names and mailing 6 addresses for each delivery of direct mail advertising 7 literature or materials, including electoral literature or 8 materials, through the United States Postal Service. 9 (36) The sale at retail or use of rail transportation 10 equipment used in the movement of personalty. 11 (37) The sale at retail of buses to be used under contract 12 with school districts that are replacements for buses destroyed 13 or lost in the flood of 1977 for a period ending December 31, 14 1977 in the counties of Armstrong, Bedford, Cambria, Indiana, 15 Jefferson, Somerset and Westmoreland, or the use of such buses. 16 (38) The sale at retail of horses, if at the time of 17 purchase, the seller is directed to ship or deliver the horse to 18 an out-of-State location, whether or not the charges for 19 shipment are paid for by the seller or the purchaser; the seller 20 shall obtain a bill of lading, either from the carrier or from 21 the purchaser, who, in turn has obtained the bill of lading from 22 the carrier, reflecting delivery to the out-of-State address to 23 which the horse has been shipped. The seller shall execute a 24 "Certificate of Delivery to Destination Outside of the 25 Commonwealth" for each bill of lading reflecting out-of-State 26 delivery. The seller shall be required to retain the certificate 27 of delivery form to justify the noncollection of sales tax with 28 respect to the transaction to which the form relates. 29 In transactions where a horse is sold by the seller and 30 delivered to a domiciled person, agent or corporation prior to 20070S1041B1340 - 14 -
1 its being delivered to an out-of-State location, the 2 "Certificate of Delivery to Destination Outside of the 3 Commonwealth" form must have attached to it bills of lading both 4 for the transfer to the domiciled person, agent or corporation 5 and from the aforementioned to the out-of-State location. 6 (39) The sale at retail or use of fish feed purchased by or 7 on behalf of sportsmen's clubs, fish cooperatives or nurseries 8 approved by the Pennsylvania Fish Commission. 9 (40) The sale at retail of supplies and materials to tourist 10 promotion agencies, which receive grants from the Commonwealth, 11 for distribution to the public as promotional material or the 12 use of such supplies and materials by said agencies for said 13 purposes. 14 (41) The sale at retail of supplies and materials to tourist 15 promotion agencies, which receive grants from the Commonwealth, 16 for distribution to the public as promotional material or the 17 use of such supplies and materials by said agencies for said 18 purposes. 19 (42) The sale or use of brook trout (salvelinus fontinalis), 20 brown trout (Salmo trutta) or rainbow trout (Salmo gairdneri). 21 (43) The sale at retail or use of buses to be used 22 exclusively for the transportation of children for school 23 purposes. 24 (44) The sale at retail or use of firewood. For the purpose 25 of this clause, firewood shall mean the product of trees when 26 severed from the land and cut into proper lengths for burning 27 and pellets made from pure wood sawdust if used for fuel for 28 cooking, hot water production or to heat residential dwellings. 29 (45) The sale at retail or use of materials used in the 30 construction and erection of objects purchased by not-for-profit 20070S1041B1340 - 15 -
1 organizations for purposes of commemoration and memorialization 2 of historical events, provided that the object is erected upon 3 publicly owned property or property to be conveyed to a public 4 entity upon the commemoration or memorialization of the 5 historical event.] 6 (46) The sale at retail or use of tangible personal property 7 purchased in accordance with the Food Stamp Act of 1977, as 8 amended (Public Law 95-113, 7 U.S.C. §§ 2011-2029). 9 [(47) The net purchase price of the sale at retail or use of 10 electric vehicles, hybrid electric vehicles and zero emission 11 vehicles as defined in 75 Pa.C.S. § 102 (relating to 12 definitions). "Net purchase price" shall mean the difference 13 between the purchase price of an electric vehicle, hybrid 14 electric vehicle or zero emission vehicle and the average retail 15 list price of a comparable vehicle. "Comparable vehicle" shall 16 mean, in the case of a passenger car, the overall average list 17 price of a passenger car in the United States; in the case of a 18 passenger truck, the overall average list price of a passenger 19 truck in the United States; and, in the case of a van, the 20 overall average retail list price of a van in the United States. 21 The Department of Revenue shall promulgate rules and regulations 22 to enforce this exemption and determine the average retail list 23 price as defined under "comparable vehicle" on an annual basis. 24 In the event that a qualified motor vehicle is something other 25 than a passenger car, passenger truck or van, the Department of 26 Revenue shall determine the average list price of a comparable 27 vehicle classification. This clause shall expire December 31, 28 1999. 29 (48) The sale at retail or use of power units for vehicles 30 that are exempt under clause (47). This clause shall expire 20070S1041B1340 - 16 -
1 December 31, 1999.] 2 (49) The sale at retail or use of [food and beverages] 3 tangible personal property or services by a nonprofit 4 [associations] association which support [sports programs] the 5 charitable purposes of the nonprofit association. For purposes 6 of this clause, the phrases: 7 (i) "nonprofit association" means an entity which is 8 organized as a nonprofit corporation or nonprofit unincorporated 9 association under the laws of this Commonwealth or the United 10 States or any entity which is authorized to do business in this 11 Commonwealth as a nonprofit corporation or unincorporated 12 association under the laws of this Commonwealth, including, but 13 not limited to, youth or athletic associations, volunteer fire, 14 ambulance, religious, charitable, fraternal, veterans, civic, or 15 any separately chartered auxiliary of the foregoing, if 16 organized and operated on a nonprofit basis; and 17 [(iv) "sports program" means baseball (including softball), 18 football, basketball, soccer and any other competitive sport 19 formally recognized as a sport by the United States Olympic 20 Committee as specified by and under the jurisdiction of the 21 Amateur Sports Act of 1978 (Public Law 95-606, 36 U.S.C. § 371 22 et seq.), the Amateur Athletic Union or the National Collegiate 23 Athletic Association. The term shall be limited to a program or 24 that portion of a program that is organized for recreational 25 purposes and whose activities are substantially for such 26 purposes and which is primarily for participants who are 18 27 years of age or younger or whose 19th birthday occurs during the 28 year of participation or the competitive season, whichever is 29 longer. There shall, however, be no age limitation for programs 30 operated for persons with physical handicaps or persons with 20070S1041B1340 - 17 -
1 mental retardation; 2 (v) "support" means the funds raised from sales are used to 3 pay the expenses of a sports program or the nonprofit 4 association sells the food and beverages at a location where a 5 sports program is being conducted under this act. 6 (50) The sale at retail or use of subscriptions for 7 magazines. The term "magazine" refers to a periodical published 8 at regular intervals not exceeding three months and which are 9 circulated among the general public, containing matters of 10 general interest and reports of current events published for the 11 purpose of disseminating information of a public character or 12 devoted to literature, the sciences, art or some special 13 industry. This exclusion shall also include any printed 14 advertising material circulated with the periodical or 15 publication regardless of where or by whom the printed 16 advertising material was produced. 17 (51) The sale at retail or use of interior office building 18 cleaning services but only as relates to the costs of the 19 supplied employe, which costs are wages, salaries, bonuses and 20 commissions, employment benefits, expense reimbursements, and 21 payroll and withholding taxes, to the extent that these costs 22 are specifically itemized or that these costs in aggregate are 23 stated in billings from the vender or supplying entity. 24 (53) The sale at retail or use of candy or gum regardless of 25 the location from which the candy or gum is sold. 26 (54) The sale at retail to or use by a producer of 27 commercial motion pictures of any tangible personal property 28 directly used in the production of a feature-length commercial 29 motion picture distributed to a national audience: Provided, 30 however, That the production of any motion picture for which the 20070S1041B1340 - 18 -
1 property will be used does not violate any Federal or State law; 2 and Provided further That the purchaser shall furnish to the 3 vendor a certificate substantially in the form as the Department 4 of Community and Economic Development may, by regulation, 5 prescribe, stating that the sale is exempt from tax pursuant to 6 this clause. 7 (55) The sale at retail or use of horses to be used 8 exclusively for commercial racing activities and the sale at 9 retail and use of feed, bedding, grooming supplies, riding tack, 10 farrier services, portable stalls and sulkies for horses used 11 exclusively for commercial racing activities.] 12 (56) The sale at retail or use of tangible personal property 13 or services used, transferred or consumed in installing or 14 repairing equipment or devices designed to assist persons in 15 ascending or descending a stairway when: 16 (i) The equipment or devices are used by a person who, by 17 virtue of a physical disability, is unable to ascend or descend 18 stairs without the aid of such equipment or device. 19 (ii) The equipment or device is installed or used in such 20 person's place of residence. 21 (iii) A physician has certified the physical disability of 22 the person in whose residence the equipment or device is 23 installed or used. 24 (57) The sale at retail to or use by a construction 25 contractor of building machinery and equipment and services 26 thereto that are: 27 (i) transferred pursuant to a construction contract for any 28 charitable organization, volunteer firemen's organization, 29 nonprofit educational institution or religious organization for 30 religious purposes, provided that the building machinery and 20070S1041B1340 - 19 -
1 equipment and services thereto are not used in any unrelated 2 trade or business; or 3 (ii) transferred to the United States or the Commonwealth or 4 its instrumentalities or political subdivisions[; or]. 5 [(58) The sale at retail or use of a personal computer, a 6 peripheral device or an Internet access device, or a service 7 contract or single-user licensed software purchased in 8 conjunction with a personal computer, peripheral device or 9 Internet access device, during the exclusion period by an 10 individual purchaser for nonbusiness use. The exclusion does not 11 include a sale at retail or use of, leasing, rental or repair of 12 a personal computer, peripheral device or Internet access 13 device; mainframe computers; network servers; local area network 14 hubs; routers and network cabling; network operating systems; 15 multiple-user licensed software; minicomputers; hand-held 16 computers; personal digital assistants without Internet access; 17 hardware word processors; graphical calculators; video game 18 consoles; telephones; digital cameras; pagers; compact discs 19 encoded with music or movies; and digital versatile discs 20 encoded with music or movies. For purposes of this clause, the 21 phrase "exclusion period" means the period of time from August 22 5, 2001, to and including August 12, 2001, and from February 17, 23 2002, to and including February 24, 2002. For purposes of this 24 clause, "purchaser" means an individual who places an order and 25 pays the purchase price by cash or credit during the exclusion 26 period even if delivery takes place after the exclusion period.] 27 (59) The sale at retail or use of molds and related mold 28 equipment used directly and predominantly in the manufacture of 29 products, regardless of whether the person that holds title to 30 the equipment manufactures a product. 20070S1041B1340 - 20 -
1 (60) The sale or use of used prebuilt housing. 2 [(61) The sale at retail to or use of food and nonalcoholic 3 beverages by an airline which will transfer the food or 4 nonalcoholic beverages to passengers in connection with the 5 rendering of the airline service.] 6 (62) The sale at retail or use of tangible personal property 7 or services which are directly used in farming, dairying or 8 agriculture when engaged in as a business enterprise whether or 9 not the sale is made to the person directly engaged in the 10 business enterprise or to a person contracting with the person 11 directly engaged in the business enterprise for the production 12 of food. 13 [(63) The sale at retail or use of separately stated fees 14 paid pursuant to 13 Pa.C.S. § 9525 (relating to fees).] 15 (64) The sale at retail to or use by a construction 16 contractor, employed by a public school district pursuant to a 17 construction contract, of any materials and building supplies 18 which, during construction or reconstruction, are made part of 19 any public school building utilized for instructional classroom 20 education within this Commonwealth, if the construction or 21 reconstruction: 22 (i) is necessitated by a disaster emergency, as defined in 23 35 Pa.C.S. § 7102 (relating to definitions); and 24 (ii) takes place during the period when there is a 25 declaration of disaster emergency under 35 Pa.C.S. § 7301(c) 26 (relating to general authority of Governor). 27 (65) The sale at retail or use of investment metal bullion 28 and investment coins. "Investment metal bullion" means any 29 elementary precious metal which has been put through a process 30 of smelting or refining, including, but not limited to, gold, 20070S1041B1340 - 21 -
1 silver, platinum and palladium, and which is in such state or 2 condition that its value depends upon its content and not its 3 form. "Investment metal bullion" does not include precious metal 4 which has been assembled, fabricated, manufactured or processed 5 in one or more specific and customary industrial, professional, 6 aesthetic or artistic uses. "Investment coins" means numismatic 7 coins or other forms of money and legal tender manufactured of 8 gold, silver, platinum, palladium or other metal and of the 9 United States or any foreign nation with a fair market value 10 greater than any nominal value of such coins. "Investment coins" 11 does not include jewelry or works of art made of coins, nor does 12 it include commemorative medallions. 13 (66) The sale at retail or use of copies of an official 14 document sold by a government agency or a court. For the 15 purposes of this clause, the following terms or phrases shall 16 have the following meanings: 17 (i) "court" includes: 18 (A) an "appellate court" as defined in 42 Pa.C.S. § 102 19 (relating to definitions); 20 (B) a "court of common pleas" as defined in 42 Pa.C.S. § 21 102; 22 (C) the "minor judiciary" as defined in 42 Pa.C.S. § 102; 23 (ii) "government agency" means an "agency" as defined in 24 section 1 of the act of June 21, 1957 (P.L.390, No.212), 25 referred to as the "Right-to-Know Law"; 26 (iii) "official document" means a "record" as defined in 27 section 1 of the "Right-to-Know Law." The term shall include 28 notes of court testimony, deposition transcripts, driving 29 records, accident reports, birth and death certificates, deeds, 30 divorce decrees and other similar documents. 20070S1041B1340 - 22 -
1 (67) The sale at retail of medical goods or services by a 2 hospital. 3 (68) The sale at retail of medical, dental or hospice 4 services. 5 (69) The sale at retail or use of goods or services 6 involving Medicare Part B transactions. 7 (70) The sale or rental of real property. 8 Section 3. This act shall apply to sales and uses occurring 9 or commencing 120 days after the effective date of this section. 10 Section 4. This act shall take effect immediately. G24L72DMS/20070S1041B1340 - 23 -