Bill Text: PA SB358 | 2009-2010 | Regular Session | Introduced

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Bill Title: In sales and use tax, further providing for definitions.

Spectrum: Slight Partisan Bill (Republican 8-4)

Status: (Introduced - Dead) 2009-02-20 - Referred to FINANCE [SB358 Detail]

Download: Pennsylvania-2009-SB358-Introduced.html

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PRINTER'S NO. 357
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 358 Session of2009
INTRODUCED BY GREENLEAF, TOMLINSON, KITCHEN, RAFFERTY, WASHINGTON, ERICKSON, WOZNIAK, FOLMER, GORDNER, O'PAKE, EARLL AND BROWNE, FEBRUARY 20, 2009
REFERRED TO FINANCE, FEBRUARY 20, 2009
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in sales and use tax, further providing for
definitions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 201(k)(8) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
April 23, 1998 (P.L.239, No.45), is amended and the section is
amended by adding clauses to read:
Section 201. Definitions.--The following words, terms and
phrases when used in this Article II shall have the meaning
ascribed to them in this section, except where the context
clearly indicates a different meaning:
* * *
(k) "Sale at retail."
* * *
(8) Any retention of possession, custody or a license to use
or consume tangible personal property or any further obtaining
of services described in subclauses (2), (3) and (4) of this
clause pursuant to a rental or service contract or other
arrangement (other than as security).
The term "sale at retail" shall not include (i) any such
transfer of tangible personal property or rendition of services
for the purpose of resale, including resale of items purchased
for resale by schools, school-related organizations and
nonprofit associations supporting or sponsoring sports programs,
or (ii) such rendition of services or the transfer of tangible
personal property including, but not limited to, machinery and
equipment and parts therefor and supplies to be used or consumed
by the purchaser directly in the operations of--
(A) The manufacture of tangible personal property.
(B) Farming, dairying, agriculture, horticulture or
floriculture when engaged in as a business enterprise. The term
"farming" shall include the propagation and raising of ranch
raised fur-bearing animals and the propagation of game birds for
commercial purposes by holders of propagation permits issued
under 34 Pa.C.S. (relating to game) and the propagation and
raising of horses to be used exclusively for commercial racing
activities.
(C) The producing, delivering or rendering of a public
utility service, or in constructing, reconstructing, remodeling,
repairing or maintaining the facilities which are directly used
in producing, delivering or rendering such service.
(D) Processing as defined in clause (d) of this section.
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The exclusions provided in paragraphs (A), (B), (C) and (D)
shall not apply to any vehicle required to be registered under
The Vehicle Code, except those vehicles used directly by a
public utility engaged in business as a common carrier; to
maintenance facilities; or to materials, supplies or equipment
to be used or consumed in the construction, reconstruction,
remodeling, repair or maintenance of real estate other than
directly used machinery, equipment, parts or foundations
therefor that may be affixed to such real estate.
The exclusions provided in paragraphs (A), (B), (C) and (D)
shall not apply to tangible personal property or services to be
used or consumed in managerial sales or other nonoperational
activities, nor to the purchase or use of tangible personal
property or services by any person other than the person
directly using the same in the operations described in
paragraphs (A), (B), (C) and (D) herein.
The exclusion provided in paragraph (C) shall not apply to
(i) construction materials, supplies or equipment used to
construct, reconstruct, remodel, repair or maintain facilities
not used directly by the purchaser in the production, delivering
or rendition of public utility service, (ii) construction
materials, supplies or equipment used to construct, reconstruct,
remodel, repair or maintain a building, road or similar
structure, or (iii) tools and equipment used but not installed
in the maintenance of facilities used directly in the
production, delivering or rendition of a public utility service.
The exclusions provided in paragraphs (A), (B), (C) and (D)
shall not apply to the services enumerated in clauses (k)(11)
through (18) and (w) through (kk), except that the exclusion
provided in this subclause for farming, dairying and agriculture
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shall apply to the service enumerated in clause (z).
* * *
(eee) "Nonprofit association." An entity which is organized
as a nonprofit corporation or nonprofit unincorporated
association under the laws of this Commonwealth or the United
States or any entity which is authorized to do business in this
Commonwealth as a nonprofit corporation or unincorporated
association under the laws of this Commonwealth, including, but
not limited to, youth or athletic associations, volunteer fire,
ambulance, religious, charitable, fraternal, veterans, civic,
county fair or agricultural associations, or any separately
chartered auxiliary of the foregoing, if organized and operated
on a nonprofit basis.
(fff) "Sports program." Baseball (including softball),
football, basketball, soccer and any other competitive sport
formally recognized as a sport by the United States Olympic
Committee as specified by and under the jurisdiction of the
Amateur Sports Act of 1978 (Public Law 95-606, 36 U.S.C. §
220501 et seq.), the Amateur Athletic Union or the National
Collegiate Athletic Association. The term shall be limited to a
program or that portion of a program that is organized for
recreational purposes and whose activities are substantially for
such purposes and which is primarily for participants who are
eighteen years of age or younger or whose nineteenth birthday
occurs during the year of participation or the competitive
season, whichever is longer. There shall be, however, no age
limitation for programs operated for persons with disabilities.
Section 2. This act shall take effect in 60 days.
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