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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY ARGALL, SOLOBAY, RAFFERTY, GREENLEAF, ALLOWAY, EICHELBERGER, ORIE, WAUGH, FONTANA, FOLMER, TARTAGLIONE, COSTA, BREWSTER, YUDICHAK AND KASUNIC, APRIL 21, 2011 |
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| REFERRED TO FINANCE, APRIL 21, 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 exemption certificates. |
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 (P.L. |
15 | 6, No.2), known as the Tax Reform Code of 1971, amended April |
16 | 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 |
22 | firefighters' relief association as defined in section 2 of the |
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1 | act of June 11, 1968 (P.L.149, No.84), known as the "Volunteer |
2 | Firefighters' Relief Association Act," or nonprofit educational |
3 | institution, or (ii) a religious organization for religious |
4 | purposes of tangible personal property or services other than |
5 | pursuant to a construction contract: Provided, however, That the |
6 | exclusion of this clause shall not apply with respect to any |
7 | tangible personal property or services used in any unrelated |
8 | trade or business carried on by such organization or institution |
9 | or with respect to any materials, supplies and equipment used |
10 | and transferred to such organization or institution in the |
11 | construction, reconstruction, remodeling, renovation, repairs |
12 | and maintenance of any real estate structure, other than |
13 | building machinery and equipment, except materials and supplies |
14 | when purchased by such organizations or institutions for routine |
15 | maintenance and repairs. |
16 | * * * |
17 | Section 2. Section 237(c) of the act, amended July 1, 1985 |
18 | (P.L.78, No.29), is amended and the section is amended by adding |
19 | a subsection to read: |
20 | Section 237. Collection of Tax.--* * * |
21 | (c) Exemption Certificates. If the tax does not apply to the |
22 | sale or lease of tangible personal property or services, the |
23 | purchaser or lessee shall furnish to the vendor a certificate |
24 | indicating that the sale is not legally subject to the tax. The |
25 | certificate shall be in substantially such form as the |
26 | department may, by regulation, prescribe. Where the tangible |
27 | personal property or service is of a type which is never subject |
28 | to the tax imposed or where the sale or lease is in interstate |
29 | commerce, such certificate need not be furnished. Where a series |
30 | of transactions are not subject to tax, a purchaser or user may |
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1 | furnish the vendor with a single exemption certificate in |
2 | substantially such form and valid for such period of time as the |
3 | department may, by regulation, prescribe[.], provided that an |
4 | exemption certificate furnished to a volunteer firefighters' |
5 | relief association or volunteer firemen's organization shall be |
6 | considered permanent. The department shall provide all school |
7 | districts and intermediate units with a permanent tax exemption |
8 | number. An exemption certificate, which is complete and regular |
9 | and on its face discloses a valid basis of exemption if taken in |
10 | good faith, shall relieve the vendor from the liability imposed |
11 | by this section. An exemption certificate accepted by a vendor |
12 | from a natural person domiciled within this Commonwealth or any |
13 | association, fiduciary, partnership, corporation or other |
14 | entity, either authorized to do business within this |
15 | Commonwealth or having an established place of business within |
16 | this Commonwealth, in the ordinary course of the vendor's |
17 | business, which on its face discloses a valid basis of exemption |
18 | consistent with the activity of the purchaser and character of |
19 | the property or service being purchased or which is provided to |
20 | the vendor by a charitable, religious, educational, volunteer |
21 | firefighters' relief association or volunteer firemen's |
22 | organization and contains the organization's charitable |
23 | exemption number and which, in the case of any purchase costing |
24 | two hundred dollars ($200) or more, is accompanied by a sworn |
25 | declaration on a form to be provided by the department of an |
26 | intended usage of the property or service which would render it |
27 | nontaxable, shall be presumed to be taken in good faith and the |
28 | burden of proving otherwise shall be on the Department of |
29 | Revenue. |
30 | (c.1) Surrender of Exemption Certificate. If a volunteer |
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1 | firefighters' relief association or volunteer firemen's |
2 | organization that has been furnished an exemption certificate |
3 | dissolves, the association or organization shall surrender the |
4 | exemption certificate to the department within sixty days. |
5 | * * * |
6 | Section 3. This act shall take effect in 60 days. |
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