Bill Text: PA HB251 | 2009-2010 | Regular Session | Introduced

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

Spectrum: Slight Partisan Bill (Republican 51-25)

Status: (Introduced - Dead) 2009-02-04 - Referred to FINANCE [HB251 Detail]

Download: Pennsylvania-2009-HB251-Introduced.html

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PRINTER'S NO. 261
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 251 Session of2009
INTRODUCED BY PICKETT, TURZAI, BAKER, BEAR, BELFANTI, BEYER, BOYD, BRENNAN, CALTAGIRONE, CARROLL, CLYMER, CREIGHTON, DeWEESE, ELLIS, EVERETT, FABRIZIO, FAIRCHILD, FLECK, GEIST, GEORGE, GIBBONS, GINGRICH, GOODMAN, GRELL, GROVE, HARRIS, HENNESSEY, HESS, HICKERNELL, HORNAMAN, HUTCHINSON, KAUFFMAN, M. KELLER, KORTZ, LONGIETTI, MAJOR, MANN, MARSICO, MELIO, MILLARD, MILLER, MILNE, MUSTIO, O'NEILL, PALLONE, PAYNE, PEIFER, PERRY, PETRI, PHILLIPS, PYLE, RAPP, READSHAW, REICHLEY, ROAE, ROHRER, SAYLOR, SCAVELLO, SIPTROTH, S. H. SMITH, SOLOBAY, STABACK, STERN, STEVENSON, SWANGER, TRUE, VULAKOVICH, WALKO, WANSACZ, WHITE AND YOUNGBLOOD, FEBRUARY 4, 2009
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 4, 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
exemption certificates.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 237(c) of the act of March 4, 1971 (P.L.
6, No.2), known as the Tax Reform Code of 1971, amended July 1,
1985 (P.L.78, No.29), is amended to read:
Section 237. Collection of Tax.--* * *
(c) Exemption Certificates. If the tax does not apply to the
sale or lease of tangible personal property or services, the
purchaser or lessee shall furnish to the vendor a certificate
indicating that the sale is not legally subject to the tax. The
certificate shall be in substantially such form as the
department may, by regulation, prescribe. Where the tangible
personal property or service is of a type which is never subject
to the tax imposed or where the sale or lease is in interstate
commerce, such certificate need not be furnished. Where a series
of transactions are not subject to tax, a purchaser or user may
furnish the vendor with a single exemption certificate in
substantially such form and valid for such period of time as the
department may, by regulation, prescribe[.], provided that an
exemption certificate furnished to a volunteer firemen's
organization shall be considered permanent. The department shall
provide all school districts and intermediate units with a
permanent tax exemption number. An exemption certificate, which
is complete and regular and on its face discloses a valid basis
of exemption if taken in good faith, shall relieve the vendor
from the liability imposed by this section. An exemption
certificate accepted by a vendor from a natural person domiciled
within this Commonwealth or any association, fiduciary,
partnership, corporation or other entity, either authorized to
do business within this Commonwealth or having an established
place of business within this Commonwealth, in the ordinary
course of the vendor's business, which on its face discloses a
valid basis of exemption consistent with the activity of the
purchaser and character of the property or service being
purchased or which is provided to the vendor by a charitable,
religious, educational, volunteer firefighters' relief
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association or volunteer firemen's organization and contains the
organization's charitable exemption number and which, in the
case of any purchase costing two hundred dollars ($200) or more,
is accompanied by a sworn declaration on a form to be provided
by the department of an intended usage of the property or
service which would render it nontaxable, shall be presumed to
be taken in good faith and the burden of proving otherwise shall
be on the Department of Revenue.
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Section 2. This act shall take effect immediately.
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