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| PRIOR PRINTER'S NOS. 395, 1055 | PRINTER'S NO. 1534 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BROWNE, FOLMER, ORIE, ALLOWAY, M. WHITE, FONTANA, LEACH, YUDICHAK AND BLAKE, FEBRUARY 4, 2011 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, SEPTEMBER 19, 2011 |
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| AN ACT |
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1 | Amending the act of December 31, 1965 (P.L.1257, No.511), |
2 | entitled "An act empowering cities of the second class, |
3 | cities of the second class A, cities of the third class, |
4 | boroughs, towns, townships of the first class, townships of |
5 | the second class, school districts of the second class, |
6 | school districts of the third class and school districts of |
7 | the fourth class including independent school districts, to |
8 | levy, assess, collect or to provide for the levying, |
9 | assessment and collection of certain taxes subject to maximum |
10 | limitations for general revenue purposes; authorizing the |
11 | establishment of bureaus and the appointment and compensation |
12 | of officers, agencies and employes to assess and collect such |
13 | taxes; providing for joint collection of certain taxes, |
14 | prescribing certain definitions and other provisions for |
15 | taxes levied and assessed upon earned income, providing for |
16 | annual audits and for collection of delinquent taxes, and |
17 | permitting and requiring penalties to be imposed and |
18 | enforced, including penalties for disclosure of confidential |
19 | information, providing an appeal from the ordinance or |
20 | resolution levying such taxes to the court of quarter |
21 | sessions and to the Supreme Court and Superior Court," |
22 | further providing for delegation of taxing powers and |
23 | restrictions. |
24 | The General Assembly of the Commonwealth of Pennsylvania |
25 | hereby enacts as follows: |
26 | Section 1. Section 301.1(f)(12) of the act of December 31, |
27 | 1965 (P.L.1257, No.511), known as The Local Tax Enabling Act, |
28 | amended October 15, 2008 (P.L.1615, No.130), is amended to read: |
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1 | Section 301.1. Delegation of Taxing Powers and Restrictions |
2 | Thereon.--* * * |
3 | (f) Such local authorities shall not have authority by |
4 | virtue of this act: |
5 | * * * |
6 | (12) To levy, assess and collect a mercantile or business |
7 | privilege tax on gross receipts or part thereof which are: (i) |
8 | discounts allowed to purchasers as cash discounts for prompt |
9 | payment of their bills; (ii) charges advanced by a seller for |
10 | freight, delivery or other transportation for the purchaser in |
11 | accordance with the terms of a contract of sale; (iii) received |
12 | upon the sale of an article of personal property which was |
13 | acquired by the seller as a trade-in to the extent that the |
14 | gross receipts in the sale of the article taken in trade does |
15 | not exceed the amount of trade-in allowance made in acquiring |
16 | such article; (iv) refunds, credits or allowances given to a |
17 | purchaser on account of defects in goods sold or merchandise |
18 | returned; (v) Pennsylvania sales tax; (vi) based on the value of |
19 | exchanges or transfers between one seller and another seller who |
20 | transfers property with the understanding that property of an |
21 | identical description will be returned at a subsequent date; |
22 | however, when sellers engaged in similar lines of business |
23 | exchange property and one of them makes payment to the other in |
24 | addition to the property exchanged, the additional payment |
25 | received may be included in the gross receipts of the seller |
26 | receiving such additional cash payments; (vii) of sellers from |
27 | sales to other sellers in the same line where the seller |
28 | transfers the title or possession at the same price for which |
29 | the seller acquired the merchandise; or (viii) transfers between |
30 | one department, branch or division of a corporation or other |
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1 | business entity of goods, wares and merchandise to another |
2 | department, branch or division of the same corporation or |
3 | business entity and which are recorded on the books to reflect |
4 | such interdepartmental transactions. A mercantile or business | <-- |
5 | privilege tax on gross receipts or on the privilege of doing |
6 | business within or from a location within a local taxing |
7 | jurisdiction may be imposed by a local taxing jurisdiction only |
8 | if the privilege of doing business is exercised through a base |
9 | of operations in the local taxing jurisdiction. In the case of a |
10 | tax on the privilege of doing business within or from a location |
11 | within a local taxing jurisdiction, no tax shall be imposed on |
12 | gross receipts from activities which are also subject to a tax |
13 | imposed by another local taxing jurisdiction on the privilege of |
14 | doing business or on business receipts within that other |
15 | jurisdiction. The taxpayer may exclude the gross receipts that |
16 | are taxed or taxable in the other local jurisdiction A | <-- |
17 | mercantile or transaction tax on the privilege of conducting |
18 | specific transactions or business within a taxing jurisdiction |
19 | on the gross receipts from such transactions or business may be |
20 | imposed by a local taxing jurisdiction wherein such business |
21 | transactions took place. A taxpayer may exclude such gross |
22 | receipts from any tax on or measured by such gross receipts |
23 | which is imposed by a jurisdiction in which the taxpayer |
24 | maintains a base of operations. A business privilege tax on the |
25 | privilege of doing business within a taxing jurisdiction on or |
26 | measured by gross receipts may be imposed by the local taxing |
27 | jurisdiction only if the privilege of doing business is |
28 | exercised through a base of operations in the local taxing |
29 | jurisdiction. If a taxpayer maintains more than one base of |
30 | operations, the local taxing jurisdiction shall only be able to |
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1 | tax the gross receipts generated by the base of operations |
2 | located within that local taxing jurisdiction. For purposes of |
3 | this section, the term "base of operations" shall mean an |
4 | actual, physical and permanent place of business from which a |
5 | taxpayer manages, directs and controls its business activities |
6 | at that location and shall not include a structure which is |
7 | utilized in a municipality for the purpose of overseeing |
8 | construction for the duration of the construction project. |
9 | * * * |
10 | Section 2. The amendment of section 301.1(f)(12) of the act |
11 | shall apply to taxable years beginning after December 31, 2011. |
12 | Section 3. This act shall take effect immediately. |
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