PRINTER'S NO. 2166
No. 1600 Session of 1990
INTRODUCED BY LEWIS, FATTAH AND FUMO, APRIL 30, 1990
REFERRED TO FINANCE, APRIL 30, 1990
AN ACT
1 Providing for the establishment, membership, powers and
2 operation of the Southeastern Pennsylvania Economic
3 Development Authority; granting the authority the limited
4 power to assess, levy and collect additional taxes on liquid
5 fuels and local sales; and providing for the expenditure of
6 revenues raised by the authority.
7 TABLE OF CONTENTS
8 Chapter 1. Preliminary Provisions
9 Section 101. Short title.
10 Section 102. Definitions.
11 Chapter 3. Organization of Southeastern Pennsylvania Economic
12 Development Authority
13 Section 301. Southeastern Pennsylvania Economic Development
14 Authority.
15 Section 302. Administration of authority.
16 Section 303. Southeastern Pennsylvania Economic Development
17 Authority Board.
18 Section 304. Resignation and removal of members; vacancies.
19 Section 305. Meetings, quorum, approval of resolution;
1 election of chairman.
2 Chapter 5. Operation of Authority
3 Section 501. Powers and duties.
4 Section 502. Public hearings.
5 Chapter 7. Fiscal Provisions
6 Subchapter A. Preliminary Fiscal Provisions
7 Section 701. Effective date for taxes.
8 Subchapter B. Tax Measures
9 Section 721. Imposition of liquid fuel tax.
10 Section 722. Additional sales and use tax.
11 Section 723. Optional sales and use tax.
12 Section 724. Situs for imposition of tax.
13 Section 725. Application of State law for sales and use tax.
14 Section 726. State preemption waiver.
15 Subchapter C. Expenditure of revenues
16 Section 731. Authority revenue utilization.
17 Section 732. Expenditures of optional sales and use tax
18 revenues.
19 Chapter 9. Miscellaneous Provisions
20 Section 901. Effective date.
21 The General Assembly of the Commonwealth of Pennsylvania
22 hereby enacts as follows:
23 CHAPTER 1
24 PRELIMINARY PROVISIONS
25 Section 101. Short title.
26 This act shall be known and may be cited as the Southeastern
27 Pennsylvania Economic Development Authority Act.
28 Section 102. Definitions.
29 The following words and phrases when used in this act shall
30 have the meanings given to them in this section unless the
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1 context clearly indicates otherwise:
2 "Authority." The Southeastern Pennsylvania Economic
3 Development Authority. The body corporate and politic created
4 pursuant to section 301.
5 "Board." The governing and policymaking body of the
6 Southeastern Pennsylvania Economic Development Authority.
7 "Commonwealth." The Commonwealth of Pennsylvania.
8 "County commissioners." The members of the board of county
9 commissioners in each of the counties in the metropolitan area,
10 except counties of the first class.
11 "Department." The Department of Revenue of the Commonwealth.
12 "Federal agency." The United States of America, the
13 President of the United States and any department or
14 corporation, agency or instrumentality, heretofore or hereafter
15 created, designated or established by the United States of
16 America.
17 "Governor." The Governor of the Commonwealth of
18 Pennsylvania.
19 "Legislative body." The term shall mean, in counties of the
20 first class, the city council; in the other counties the board
21 of county commissioners or the county council; and in the other
22 municipalities, that body authorized by law to enact ordinances.
23 "Majority." The whole number constituting more than half of
24 the total number, e.g., a majority of five equals three or more;
25 a majority of six equals four or more.
26 "Mayor." The chief executive officer of any first class city
27 in any first class county.
28 "Metropolitan area." All of the territory within the
29 boundaries of any county of the first class and all other
30 counties located in whole or in part within twenty miles of such
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1 first class county.
2 "Municipality." Any city, county, borough or township of the
3 first or second class within any metropolitan area.
4 "Persons." The term shall mean and include corporations,
5 associations and other legal entities, as well as natural
6 persons.
7 "SPEDA." The Southeastern Pennsylvania Economic Development
8 Authority.
9 CHAPTER 3
10 ORGANIZATION OF SOUTHEASTERN PENNSYLVANIA
11 ECONOMIC DEVELOPMENT AUTHORITY
12 Section 301. Southeastern Pennsylvania Economic Development
13 Authority.
14 (a) Authorization.--There is hereby authorized the creation
15 of a separate body corporate and politic in each metropolitan
16 area to be known as the Southeastern Pennsylvania Economic
17 Development Authority.
18 (b) Establishment.--The Southeastern Pennsylvania Economic
19 Development Authority shall be created when, within a
20 metropolitan area, a city of the first class and not less than
21 two of the adjoining counties, by ordinance or resolution
22 approving the establishment of the authority. The requirements
23 of this subsection shall occur no later than two years after the
24 effective date of this act.
25 (c) Boundaries.--The authority shall cover an area extending
26 to and including all of the territory in the cities and counties
27 which have approved the establishment of the authority.
28 (d) Status.--The authority shall in no way be deemed to be
29 an instrumentality of any city or county or other municipality
30 or engaged in the performance of a municipal function. The
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1 authority shall exercise the public powers of the Commonwealth
2 as an agency and instrumentality thereof.
3 Section 302. Administration of authority.
4 (a) Governing board.--The governing and policymaking body of
5 the authority shall be a board, to be known as the Southeastern
6 Pennsylvania Economic Development Authority Board, consisting of
7 members to be appointed as provided in section 303. All
8 appointees, except for the appointees of the Governor, must be
9 residents of the city or county from which they are appointed.
10 No board member shall be allowed any fees, perquisites or
11 emoluments, reward or compensation for services as a member or
12 officer of the authority, but shall be reimbursed for actual
13 expenses incurred by him in the performance of board duties.
14 (b) Policies.--The board may involve itself in the day-to-
15 day administration of the authority's business. It shall limit
16 its exercise of powers to such areas of discretion or policy as
17 the functions and programs of the authority, the authority's
18 operating and capital budgets, utilization of technology, the
19 organizational structure and the selection of personnel and the
20 establishment of salaries for such personnel.
21 Section 303. Southeastern Pennsylvania Economic Development
22 Authority Board.
23 (a) Appointment.--The board of the authority shall be
24 composed of at least seven members and no more than nine
25 members. The board members shall be appointed as follows:
26 (1) The mayor of any city of the first class within a
27 county of the first class shall, with the approval of the
28 city council, appoint three persons to serve as board
29 members.
30 (2) The county commissioners or the county council in
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1 each county which approves the establishment of the
2 authority, other than a county of the first class, may each
3 appoint one person to serve as a board member. The initial
4 term of such appointee shall expire on December 31 next
5 following the election of the county commissioners or county
6 council.
7 (3) The Governor shall appoint two persons, not of the
8 same political party, as members of the board. One person
9 appointed by the Governor may be from among the various
10 officials in the government of the Commonwealth, and whose
11 term as a board member shall run concurrently with that of
12 his Commonwealth position, if any, or the term of the
13 appointing Governor, whichever is shorter.
14 (b) Subsequent appointments.--At the expiration of the term
15 of any board member, a successor shall be appointed by the
16 appropriate appointing power, for a term of four years from such
17 expiration date.
18 (c) Certification.--The appointing powers shall certify
19 their respective appointments to the Secretary of the
20 Commonwealth. Within 30 days after certification of appointment
21 and before entering upon the duties of the office, each member
22 of the board shall take and subscribe the constitutional oath of
23 office and file it in the Office of the Secretary of the
24 Commonwealth.
25 Section 304. Resignation and removal of members; vacancies.
26 (a) General rule.--Members of the board shall hold office
27 for a term of four years and until their respective successors
28 have been appointed and have qualified.
29 (b) Removal.--An appointing power may remove any member of
30 the board appointed by that power only for incompetency, neglect
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1 of duty or malfeasance in office. No member shall be removed
2 prior to receiving a copy of the charges against him and an
3 opportunity of a public hearing, at a place in the metropolitan
4 area. The member subject to removal may appear in person or by
5 counsel, in his own defense upon not less than ten days' written
6 notice of the public hearing. A member removed for incompetency,
7 neglect of duty or malfeasance in office shall have the right to
8 appeal such removal to the court of common pleas of the county
9 for which he was appointed. Any appeal shall be limited to
10 errors of law or manifest and flagrant abuse of discretion.
11 (c) Vacancies.--
12 (1) In case an appointee fails to qualify within the time
13 required or abandons the office or in case of a member's
14 death, conviction of a felony or removal from office, the
15 office shall become vacant.
16 (2) A member shall be deemed to have abandoned the
17 office upon failure to attend any regular or special meeting
18 of the board, without excuse approved by resolution of the
19 board, for a period of four months, or upon removal of his
20 residence from the appointing city or county.
21 (3) Each vacancy shall be filled for the unexpired term
22 by appointment in like manner and with like regard as to the
23 place of residence of the appointee as in case of expiration
24 of the term of a member of the board.
25 Section 305. Meetings, quorum, approval of resolutions;
26 election of chairman.
27 (a) Meetings.--Regular meetings of the board shall be held
28 in the metropolitan area at least once in each calendar month
29 except July or August, at a time and place to be fixed by the
30 board. A majority of the board shall constitute a quorum for the
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1 transaction of business. All action of the board shall be by
2 resolution and the affirmative vote of a majority of all members
3 appointed to the board shall be necessary for the adoption of
4 any resolution.
5 (b) Officers.--The board shall elect from among its members
6 a chairman and a vice chairman, who shall serve for a term of
7 two years and until their successors shall have been elected and
8 qualified. The chairman and vice chairman shall perform such
9 duties as the board shall, by resolution, determine.
10 (c) Public records.--All resolutions and all proceedings of
11 the authority and all documents and records in its possession
12 shall be public records and open to public inspection. Documents
13 and records kept or prepared by the board for use in
14 negotiations or actions or proceedings to which the authority is
15 or may become a party shall be closed to the public.
16 CHAPTER 5
17 OPERATION OF AUTHORITY
18 Section 501. Powers and duties.
19 The authority shall have and may exercise all powers
20 necessary or convenient for the carrying out of it's purposes,
21 including but without limiting the generality of the foregoing,
22 the following rights or powers:
23 (1) To have perpetual existence.
24 (2) To sue and be sued, implead and be impleaded,
25 complain and defend in all courts, to petition any regulatory
26 body, or join in any proceeding before any such bodies or
27 courts in any matter affecting the operation of any project
28 of the authority.
29 (3) To adopt and use and alter at will a corporate seal.
30 (4) To establish a principal office within the
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1 metropolitan area and such other office or offices as may be
2 necessary for the carrying on of its duties.
3 (5) To acquire, purchase, hold, lease as lessee and use
4 any property, real, personal or mixed, tangible or
5 intangible, or any interest therein necessary, or desirable
6 for carrying out the purposes of the authority, and to sell,
7 lease as lessor, transfer and dispose of any property, or
8 interest therein, at any time acquired by it.
9 (6) To make and from time to time to amend and repeal
10 bylaws, rules, regulations and resolutions.
11 (7) To appoint officers, agents, employees and servants,
12 to prescribe their duties and fix their compensation,
13 subject, however, to specific provisions of this act.
14 (8) To fix, alter, charge and collect rentals and other
15 charges for its facilities at reasonable rates to be
16 determined exclusively by it for the purpose of providing for
17 the payment of all expenses and obligations of the authority,
18 including the acquisition, construction, improvement, repair,
19 maintenance and operation of its facilities and properties.
20 The authority shall determine by itself, exclusively, the
21 facilities to be operated by it, the services to be available
22 and the rates to be charged therefor.
23 (9) To borrow money from private lenders, or from the
24 Federal or State Government, or from any municipality in the
25 metropolitan area, in such amounts as may be necessary or
26 desirable for the operation and work of the authority.
27 (10) To make and execute all contracts and other
28 instruments necessary or convenient to the exercise of the
29 powers of the authority.
30 (11) To pledge, hypothecate, or otherwise encumber, all
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1 or any of the revenues or receipts of the authority not
2 dedicated by this act for a specific purpose as security for
3 all or any of the obligations of the authority.
4 (12) To enter into contracts with the Commonwealth, its
5 agencies and instrumentalities, municipalities or
6 corporations, on such terms as the authority shall deem
7 proper for the use of any facility of the authority, and
8 fixing the amount to be paid therefor.
9 (13) To enter into contracts of group insurance for the
10 benefit of its employees and to set up a retirement or
11 pension fund for such employees.
12 (14) To make available to the government of a
13 municipality or any appropriate agency, board or commission
14 thereof, the recommendations of the authority affecting any
15 area in the authority's field of operation or property
16 therein, which it may deem likely to promote the public
17 health, morals, safety and welfare.
18 (15) To form plans for the improvement of mass
19 transportation in order to promote the economic development
20 of the metropolitan area in which the authority operates; to
21 make recommendations concerning mass transportation
22 facilities which the authority does not own or operate; to
23 make recommendations concerning throughways and arterial
24 highway connections to the Department of Transportation and
25 to other appropriate governmental bodies; and otherwise to
26 cooperate with all such governmental bodies.
27 (16) The authority shall levy taxes on the subjects and
28 rates specified in sections 721 and 722.
29 (17) To adopt, consistent with the policies of this act
30 and from time to time amend, a comprehensive transit plan. A
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1 public hearing shall be conducted prior to adoption or
2 amendment. Notice of the public hearing shall be published in
3 two newspapers of general circulation and a publication
4 specifically designed to reach minorities not less than 30
5 days prior to such hearing.
6 (18) To do all acts and things necessary for the
7 promotion of its business, and the general welfare of the
8 authority to carry out the powers granted to it by this act
9 or any other statute.
10 Section 502. Public hearings.
11 All public hearings required by this act shall be conducted
12 so as to insure that:
13 (1) Members of the public are afforded a reasonable
14 opportunity to comment orally or in writing or both orally
15 and in writing concerning actions the authority proposes to
16 take.
17 (2) The site of the hearing is a convenient, accessible
18 location.
19 (3) Members of the public are adequately informed at the
20 outset regarding the purposes of the hearing and the matters
21 on the agenda.
22 (4) Reasonable and legitimate questions from members of
23 the public are answered.
24 CHAPTER 7
25 FISCAL PROVISIONS
26 SUBCHAPTER A
27 PRELIMINARY FISCAL PROVISIONS
28 Section 701. Effective date for taxes.
29 The taxes levied under sections 721 and 722 shall be first
30 collected on the first day of the month occurring at least 60
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1 days following the establishment of the authority.
2 SUBCHAPTER B
3 TAX MEASURES
4 Section 721. Imposition of liquid fuel tax.
5 (a) Subjects of tax.--In addition to the tax imposed upon
6 liquid fuels and fuels by the act of May 21, 1931 (P.L.149,
7 No.105), known as The Liquid Fuels Tax Act, the act of January
8 14, 1952 (1951 P.L.1965, No.550), known as the Fuel Use Tax Act,
9 sections 1101-B and 1121-B of the act of March 4, 1971 (P.L.6,
10 No.2), known as the Tax Reform Code of 1971, and the act of July
11 12, 1974 (P.L.458, No.161), referred to as the Liquid Fuels
12 Additional Tax Act, an additional tax in an amount of 4¢ per
13 gallon, or fractional part thereof, is hereby imposed and
14 assessed by the authority within the boundaries of it's member
15 municipalities, except as provided in subsections (b) and (c)
16 and except as otherwise provided by law, upon all:
17 (1) Liquid fuels used or sold and delivered by
18 distributors within the boundaries of the authority except
19 liquid fuels used as fuel in aircraft or aircraft engines
20 that are taxable under The Liquid Fuels Tax Act.
21 (2) Fuels used by dealer-users except the use of fuel in
22 aircraft or aircraft engines that are taxable under the Fuel
23 Use Tax Act.
24 (b) Liquid fuels tax exemptions.--The tax imposed on liquid
25 fuels by subsection (a) shall not be imposed upon liquid fuels
26 that are:
27 (1) Delivered to the Federal Government on presentation
28 of a duly authorized Federal Government exemption certificate
29 or other evidence that is satisfactory to the department.
30 (2) Used or sold and delivered which are not within the
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1 taxing power of this Commonwealth under the Commerce Clause
2 of the Constitution of the United States.
3 (3) Delivered to the Commonwealth, every political
4 subdivision, any volunteer fire company, any volunteer
5 ambulance service, any volunteer rescue squad and any
6 nonpublic school not operated for profit on presentation of
7 evidence that is satisfactory to the department.
8 (c) Fuel use tax exemptions.--The tax imposed by subsection
9 (a) shall not be imposed upon:
10 (1) Any fuel that is used by or sold and delivered to
11 the Federal Government, when such sales and deliveries are
12 supported by documentary evidence that is satisfactory to the
13 department.
14 (2) Any fuel not in excess of 50 gallons that is brought
15 into this Commonwealth in the fuel supply tanks or other
16 fueling receptacles or devices of a motor vehicle.
17 (3) Any fuel used by or sold or delivered for use in
18 farm machinery or equipment, engaged in the production or
19 harvesting of farm or agricultural products involving the use
20 of the public highways within a ten-mile radius or the
21 domicile of the owner of the machinery or equipment, when
22 such sales and deliveries are supported by documentary
23 evidence that is satisfactory to the department.
24 (4) Any fuel used by or sold or delivered to the
25 Commonwealth, its political subdivisions, any volunteer fire
26 company, any volunteer ambulance service, any volunteer
27 rescue squad and any nonpublic school not operated for
28 profit, when such sales and deliveries are supported by
29 documentary evidence that is satisfactory to the department.
30 Section 722. Additional sales and use tax.
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1 (a) Sales tax.--The authority, within the boundaries of its
2 member municipalities, shall levy, assess and collect upon each
3 separate sale at retail of tangible personal property or
4 services a tax on the purchase price. The tax shall be collected
5 by the vendor from the purchaser and shall be paid over to the
6 Commonwealth as provided in regulations.
7 (b) Use tax.--In addition to the tax authorized in
8 subsection (a), the authority shall levy, assess and collect,
9 within the boundaries of its member municipalities, upon the use
10 of tangible personal property purchased at retail and on
11 services purchased at retail a tax at the same rate as imposed
12 pursuant to subsection (a) on the purchase price. The tax shall
13 be paid to the Commonwealth by the person who makes such use as
14 provided in regulations. The use tax shall not be paid to the
15 Commonwealth by any person who has paid any authority tax
16 imposed under this section that is equal to or greater than the
17 tax imposed pursuant to either subsection (a) or this
18 subsection.
19 (c) Hotel occupancy tax.--In addition to the tax authorized
20 in subsection (a), the authority shall levy, assess and collect
21 an excise tax at the same rate as imposed pursuant to subsection
22 (a) on the rent upon every occupancy of a room or rooms in a
23 hotel within the boundaries of a member municipality. The tax
24 shall be collected by the operator or owner from the occupant
25 and shall be paid to the Commonwealth as provided in
26 regulations.
27 (d) Rate of tax.--
28 (1) The tax authorized by subsections (a), (b) and (c)
29 shall be imposed only at a rate of 0.5%.
30 (2) The rate imposed by subsections (a), (b) and (c)
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1 shall be uniform.
2 (e) Computation of tax.--The amount of tax imposed by this
3 section shall be computed as follows:
4 (1) If the purchase price is 99¢ or less, no tax shall
5 be collected.
6 (2) If the purchase price is $1 or more but less than
7 $3, 1¢ shall be collected.
8 (3) If the purchase price is $3 or more but less than
9 $5, 2¢ shall be collected.
10 (4) If the purchase price is $5 or more but less than
11 $7, 3¢ shall be collected.
12 (5) If the purchase price is $7 or more but less than
13 $9, 4¢ shall be collected.
14 (6) If the purchase price is $9 or more but less than
15 $10.01, 5¢ shall be collected.
16 (7) If the purchase price is more than $10, 0.5% of each
17 $10 of purchase price plus the above bracket charges upon any
18 fractional part of a $10 increment shall be collected.
19 (f) Discounts.--There shall be no discount allowed for any
20 taxes collected and reported under this section.
21 Section 723. Optional sales and use tax.
22 (a) Sales tax.--The board of commissioners in any county,
23 and the city council in a city of the first class which are
24 members of the authority, may levy, assess and collect upon each
25 separate sale at retail of tangible personal property or
26 services a tax on the purchase price. The tax shall be collected
27 by the vendor from the purchaser and shall be paid to the
28 Commonwealth as provided in regulations.
29 (b) Use tax.--In any county which imposes a tax authorized
30 in subsection (a), there shall be levied, assessed and collected
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1 upon the use within the county of tangible personal property
2 purchased at retail and on services purchased at retail a tax at
3 the same rate as imposed pursuant to subsection (a) on the
4 purchase price. The tax shall be paid to the Commonwealth by the
5 person who makes such use as provided in regulations. The use
6 tax shall not be paid to the Commonwealth by any person who has
7 paid any tax imposed under this section that is equal to or
8 greater than the tax imposed pursuant to either subsection (a)
9 or this subsection.
10 (c) Hotel occupancy tax.--In any county which imposes a tax
11 authorized in subsection (a), there shall be levied, assessed
12 and collected an excise tax at the same rate as imposed pursuant
13 to subsection (a) on the rent upon every occupancy of a room or
14 rooms in a hotel in the county. The tax shall be collected by
15 the operator or owner from the occupant and shall be paid to the
16 Commonwealth as provided in regulations.
17 (d) Rate of tax.--
18 (1) The tax authorized by subsections (a), (b) and (c)
19 may be imposed only at a rate of 0.5%.
20 (2) The rate imposed by subsections (a), (b) and (c)
21 shall be uniform.
22 (e) Computation of tax.--The amount of tax imposed by this
23 section shall be computed as follows:
24 (1) If the purchase price is 99¢ or less, no tax shall
25 be collected.
26 (2) If the purchase price is $1 or more but less than
27 $3, 1¢ shall be collected.
28 (3) If the purchase price is $3 or more but less than
29 $5, 2¢ shall be collected.
30 (4) If the purchase price is $5 or more but less than
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1 $7, 3¢ shall be collected.
2 (5) If the purchase price is $7 or more but less than
3 $9, 4¢ shall be collected.
4 (6) If the purchase price is $9 or more but less than
5 $10.01, 5¢ shall be collected.
6 (7) If the purchase price is more than $10, 0.5% of each
7 $10 of purchase price plus the above bracket charges upon any
8 fractional part of a $10 increment shall be collected.
9 (f) Discounts.--There shall be no discount allowed for any
10 taxes collected and reported under this section.
11 Section 724. Situs for imposition of tax.
12 (a) Situs for retail sales.--For purposes of sections 722
13 and 723 and except as otherwise provided in this section, a sale
14 at retail shall be deemed to be consummated at the place where
15 the vendor delivers or otherwise transfers physical possession
16 of the tangible personal property to the customer or its agent.
17 (b) Situs for interstate transactions.--If the tangible
18 personal property is shipped from outside this Commonwealth to a
19 customer within this Commonwealth, the tangible personal
20 property is subject to the use tax imposed by section 722(b) or
21 723(b) unless the vendor is licensed to collect the tax
22 authorized under section 722(a) or 723(a).
23 (c) Situs for vehicle, aircraft and motorcraft sales.--
24 (1) The sale at retail or use of a motor vehicle,
25 trailer or semitrailer, as defined in 75 Pa.C.S. (relating to
26 vehicles), shall be deemed to have been completed or used at
27 the address of the purchaser or user. The tax due shall be
28 paid by the purchaser or user directly to the Department of
29 Transportation at the time of making application for the
30 issuance of a certificate of title or directly to the
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1 department if a certificate of title is not obtained.
2 (2) The sale at retail or use of a motorboat, aircraft,
3 mobile home or similar tangible personal property that is
4 required under Federal law or the laws of this Commonwealth
5 to be registered or licensed and is purchased from a person
6 that is not engaged in the business of selling such property
7 shall be deemed to have been completed or used at the address
8 of the purchaser or user. The tax due shall be paid by the
9 purchaser or user at the time of registration or licensing or
10 directly to the department if registration or licensing is
11 not obtained.
12 (d) Situs for utility services.--The sale or use of steam,
13 natural and manufactured gas, electricity and intrastate
14 telephone and telegraph service shall be deemed to occur in the
15 county where the telephone number under which the service is
16 furnished is located or in the county where the telegraph
17 originated or in the county where the meter which registers the
18 service is located, without regard to where the services are
19 rendered.
20 Section 725. Application of State law for sales and use tax.
21 (a) General rule.--
22 (1) Except as otherwise provided in section 721, the
23 provisions of the act of May 21, 1931 (P.L.149, No.105),
24 known as The Liquid Fuels Tax Act, and the act of January 14,
25 1952 (1951 P.L.1965, No.550), known as the Fuel Use Tax Act,
26 shall apply to the tax imposed by section 721.
27 (2) Except as otherwise provided in this subchapter, the
28 provisions of Article II of the act of March 4, 1971 (P.L.6,
29 No.2), known as the Tax Reform Code of 1971, shall apply to
30 the taxes imposed by sections 722 and 723 insofar as they are
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1 applicable to such taxes.
2 (b) Licenses.--The license issued pursuant to Art. II of the
3 Tax Reform Code of 1971 or a separate license may be issued by
4 the department for the collection and reporting of the tax
5 imposed by sections 722 and 723. The license or licenses shall
6 be nonassignable and subject to renewal periodically at such
7 times as may be required by the department in regulations but in
8 no event more frequently than once in a five-year period. No fee
9 shall be charged for either a license or any renewal. Failure of
10 any person to obtain a license shall not relieve that person of
11 liability to pay the taxes imposed by this subchapter.
12 (c) Rules and regulations.--
13 (1) The rules and regulations promulgated under section
14 270 of the Tax Reform Code of 1971 shall be applicable to the
15 tax imposed by section 722 or 723 insofar as such rules and
16 regulations are consistent with sections 722 and 723.
17 (2) The department shall administer and enforce the
18 provisions of this subchapter and is authorized to promulgate
19 and enforce rules and regulations, not inconsistent with the
20 provisions of this subchapter, relating to any matter or
21 thing pertaining to the administration and enforcement of the
22 provisions of this subchapter. The department may prescribe
23 the extent to which any of such rules and regulations shall
24 be applied without retroactive effect.
25 (d) Exclusion from rate limitations.--The sales and use tax
26 under section 722 which is imposed by the authority and the
27 optional sales and use tax under section 723 which may be
28 imposed by a county of the first class coterminous with a city
29 of the first class shall not apply to the overall rate
30 limitations set forth in section 23(c) of the act of June 27,
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1 1986 (P.L.267, No.70), known as the Pennsylvania Convention
2 Center Authority Act.
3 (e) Procedure and administration.--Part VI of Article II of
4 the Tax Reform Code of 1971 is incorporated by reference into
5 this subchapter insofar as applicable.
6 Section 726. State preemption waiver.
7 The Commonwealth specifically waives its right of preemption
8 over the subject matter and the rates of taxation specified in
9 sections 721, 722 and 723.
10 SUBCHAPTER C
11 EXPENDITURE OF REVENUES
12 Section 731. Authority revenue utilization.
13 (a) Liquid fuel revenues.--All revenues raised by the
14 authority under section 721 shall be used to provide capital
15 funding for mass transit. Prior to the transfer of any of these
16 funds the authority and the recipient shall enter into a written
17 agreement setting forth all of the following:
18 (1) The specific capital projects and their locations.
19 (2) The time frame for their initiation and completion.
20 (3) Any penalties to be incurred for failure to comply
21 with the agreement.
22 (b) Sales and use tax revenues.--The authority shall provide
23 for the following expenditures from the revenues raised under
24 section 722:
25 (1) Thirty-three and one-third percent of the revenues
26 shall be used by the authority for the support of mass
27 transit operating or capital expenses.
28 (2) The balance of revenues shall be used by the
29 authority in support of activities in the following areas
30 only:
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1 (i) Criminal justice programs, including prisons.
2 (ii) Human services programs.
3 (iii) Environmental programs.
4 (iv) Cultural institutions, subject to the
5 limitation that no more than 2% of the remaining revenues
6 shall be expended for this purpose.
7 (v) Administrative cost, subject to the limitation
8 that no more than 2% of the remaining revenues shall be
9 expended for this purpose.
10 (3) Eighty percent of the funding provided by each of
11 the members of the authority will be expended on capital
12 projects within the boundaries of that authority member.
13 Section 732. Expenditures of optional sales and use tax
14 revenues.
15 Revenues raised from the tax imposed under section 723 shall
16 be expended in the following manner:
17 (1) Twenty-five percent of the revenue shall be
18 transferred to the authority for use pursuant to section
19 731(b)(2) and (3).
20 (2) The remaining balance may be used for the general
21 government operations of the county or city.
22 CHAPTER 9
23 MISCELLANEOUS PROVISIONS
24 Section 901. Effective date.
25 This act shall take effect in 60 days.
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