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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY DeLUCA, LEVDANSKY, BELFANTI, BEYER, CALTAGIRONE, CARROLL, D. COSTA, GIBBONS, GINGRICH, GOODMAN, GRUCELA, HARKINS, HESS, HORNAMAN, KOTIK, MANDERINO, MELIO, MILLER, QUINN, READSHAW, SANTONI, SIPTROTH, SOLOBAY, STURLA, WATERS AND FRANKEL, OCTOBER 29, 2009 |
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| REFERRED TO COMMITTEE ON FINANCE, OCTOBER 29, 2009 |
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| AN ACT |
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1 | Establishing the Sales and Use Tax Commission; and providing for |
2 | study and report on sales and use tax. |
3 | WHEREAS, Since the enactment of this Commonwealth's first |
4 | sales and use tax, significant changes in the structure of the |
5 | State's economy have occurred; and |
6 | WHEREAS, These changes have had both salutary and detrimental |
7 | effects on business and consumers in this Commonwealth; and |
8 | WHEREAS, The sales and use tax has become checkered with more |
9 | than 50 exclusions and exemptions; and |
10 | WHEREAS, The addition of certain exclusions and exemptions |
11 | has caused confusion for consumers and vendors in the payment |
12 | and collection of the sales and use tax; and |
13 | WHEREAS, Many of the existing exclusions and exemptions have |
14 | become antiquated and obsolete; and |
15 | WHEREAS, Ensuring greater fairness in the sales and use tax |
16 | will create a fair and more competitive climate leading to |
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1 | greater economic growth and stability in this Commonwealth; and |
2 | WHEREAS, Viable opportunities to broaden the sales and use |
3 | tax base should be comprehensively explored to enable this |
4 | Commonwealth to lower the overall tax burden on the citizens of |
5 | this State while also protecting the stability of the State |
6 | budget. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Short title. |
10 | This act shall be known and may be cited as the Sales and Use |
11 | Tax Study Act. |
12 | Section 2. Purpose. |
13 | The purpose of this act is to establish the Pennsylvania |
14 | Sales and Use Tax Commission to study and analyze the existing |
15 | sales and use tax law, and to propose recommendations to the |
16 | Governor and the General Assembly for amending the tax to: |
17 | (1) eliminate obsolete and unnecessary provisions; |
18 | (2) expand the tax base as necessary; |
19 | (3) ensure a competitive economic market in this State; |
20 | and |
21 | (4) protect the stability of the Commonwealth's budget. |
22 | Section 3. Definitions. |
23 | The following words and phrases when used in this act shall |
24 | have the meanings given to them in this section unless the |
25 | context clearly indicates otherwise: |
26 | "Commission." The Sales and Use Tax Study Commission |
27 | established under this act. |
28 | "Department." The Department of Revenue of the |
29 | Commonwealth. |
30 | Section 4. Pennsylvania Sales and Use Tax Commission. |
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1 | (a) Establishment.--There is hereby established the |
2 | Pennsylvania Sales and Use Tax Commission. |
3 | (b) Purpose.--The purpose of the commission shall be to |
4 | evaluate the current sales and use tax structure in the |
5 | Commonwealth and recommend changes to the sales and use tax |
6 | structure that will eliminate obsolete provisions and broaden |
7 | the tax base, as necessary, thereby allowing the overall tax |
8 | burden to be reduced and creating a better tax climate in this |
9 | Commonwealth. |
10 | Section 5. Tasks. |
11 | (a) Study.--The commission shall study viable options for |
12 | increasing fairness and competitiveness in the sales and use tax |
13 | structure of the Commonwealth. The commission shall develop |
14 | solutions to ensure that the portion of State general funds |
15 | derived from the sales and use tax is not diminished. |
16 | (b) Report.--The commission shall provide a comprehensive |
17 | report of the study conducted under subsection (a). The report |
18 | shall thoroughly discuss options and viable recommendations |
19 | considered and express clear rationales for options not |
20 | recommended. Specific changes to the sales and use tax |
21 | recommended by the commission shall be included in the report. |
22 | The commission shall present the report to the Governor, the |
23 | chairman and minority chairman of the Finance Committee of the |
24 | Senate and the chairman and minority chairman of the Finance |
25 | Committee of the House of Representatives on or before July 1, |
26 | 2010. |
27 | Section 6. Composition of the commission. |
28 | (a) Members.--The commission shall consist of the following |
29 | members: |
30 | (1) Seven members appointed by the Governor. The |
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1 | appointees shall be members of various constituencies |
2 | affected by or knowledgeable about the sales and use tax and |
3 | its impact on this Commonwealth's economy. These |
4 | constituencies include, but are not limited to, corporations, |
5 | tax policy experts and tax practitioners. Four of the |
6 | Governor's seven appointees, one from each organization, |
7 | shall be members of the Pennsylvania Bar Association, the |
8 | Pennsylvania Chamber of Business and Industry, the |
9 | Pennsylvania Institute of Certified Public Accountants and |
10 | the Pennsylvania Retailers Association. |
11 | (2) Each of the four caucuses of the General Assembly |
12 | shall select one private sector citizen representative from |
13 | constituencies affected by or knowledgeable about the |
14 | Commonwealth's business taxes. |
15 | Staff from organizations representing business organizations are |
16 | not eligible for membership on the commission. |
17 | (b) Chairperson.--The Secretary of Revenue shall chair the |
18 | commission and shall serve as a member. |
19 | (c) Staffing.--The Commonwealth shall, through the |
20 | department, provide reasonable and necessary clerical, research |
21 | and administrative support and may contract for research, |
22 | analysis and editorial work in support of the commission as |
23 | necessary. |
24 | Section 7. Public meetings. |
25 | All meetings, except for organizational meetings and planning |
26 | sessions shall be conducted as open meetings under 65 Pa.C.S. |
27 | Ch. 7 (relating to open meetings). |
28 | Section 8. Cooperation by State agencies. |
29 | The department shall serve as the administrative support |
30 | agency of the commission and shall provide facilities, personnel |
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1 | assistance, information and services necessary to fulfill the |
2 | mission of the commission. All other Commonwealth agencies are |
3 | directed to cooperate with and assist the commission in |
4 | fulfilling its duties and responsibilities. |
5 | Section 9. Expiration. |
6 | This act shall expire 180 days after the submission of the |
7 | report provided for under section 5. |
8 | Section 10. Effective date. |
9 | This act shall take effect immediately. |
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