PRINTER'S NO. 2261
No. 1578 Session of 2000
INTRODUCED BY WAUGH, ROBBINS, BOSCOLA, WHITE, MOWERY, EARLL,
SCHWARTZ, TILGHMAN AND LEMMOND, OCTOBER 26, 2000
REFERRED TO FINANCE, OCTOBER 26, 2000
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."
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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
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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).
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1 * * *
2 Section 2. This act shall take effect in 60 days.
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