Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 60 - SALES AND USE TAX PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 60.16 - Local Sales, Use and Hotel Occupancy Tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General provisions.
(1)
General.
This section is
					 promulgated to administer the provisions of sections 501-509 of the
					 Pennsylvania Intergovernmental Cooperation Authority Act for Cities of the
					 First Class (53 P. S. §§
													12720.501-12720.509) and sections
					 3150-B-3157-B of the Second Class County Code (16 P. S. §§
													6150-B-6157-B).
(2)
Registration.
A person
					 making a sale, rental or lease subject to tax under this section shall apply
					 for a license on a form prescribed by the Department.
(3)
Returns.
The taxes
					 collected under this section shall be reported on a return prescribed by the
					 Department and filed under sections 217-220 of the TRC (72 P. S.
					 §§
													7217-7220) and §
												34.3 (relating to tax
					 returns).
(4)
Payment.
Payment shall be made under sections 221-224 of the
					 TRC (72 P. S. §§
													7221-7224).
(5)
Imposition of tax.
Unless otherwise specifically noted, Article II of the TRC (72 P. S.
					 §§
													7201-7281.1) and regulations
					 thereunder apply to the taxes imposed under this section.
(6)
Exemption certificates.
A claim for exemption from taxes imposed under this section shall be supported
					 by a valid Pennsylvania exemption certificate.
(7)
Direct payment permit.
A
					 purchaser may use a direct payment permit issued under §
												34.4 (relating to direct payment
					 permit) in conjunction with the sales tax imposed under this section. A
					 purchaser may not use a direct payment permit in connection with the purchase
					 of vehicles, food and beverages or hotel occupancies.
(8)
Local tax.
The term
					 local tax means sales, use or hotel occupancy tax imposed by a county of this
					 Commonwealth or the city of Philadelphia and administered by the
					 Department.
(9)
State
					 tax.
The term State tax means sales, use or hotel occupancy tax
					 imposed by Article II of the TRC.
(10)
Local sales and use
					 tax.
For purposes of this section, the local sales tax is the tax
					 which is collected by the vendor and the local use tax is the tax payable if
					 the vendor is not required or fails to collect the proper amount of local sales
					 tax.
(11)
Point of
					 sale.
Local sales tax is imposed at the point of sale. A sale of
					 property or a service delivered to a location within this Commonwealth is
					 deemed to occur at the place of business of the retailer. A sale of property or
					 a service delivered by the retailer or its agent to an out-of-State destination
					 is subject to neither the State nor the local tax. The local tax is in addition
					 to the State tax if a sale is deemed to have occurred in a taxable county.
					 There are no transactions which are only subject to the local tax.
(12)
Tax bracket schedule.
The 1% local sales and use tax is computed in accordance with the following
					 bracket schedule:
(i)
Purchase price
Tax
50 or less
0
51 but less than $1.51
1
$1.51 but less than $2.51
2
$2.51 but less than $3.51
3
$3.51 but less than $4.51
4
$4.51 but less than $5.51
5
$5.51 but less than $6.51
6
$6.51 but less than $7.51
7
$7.51 but less than $8.51
8
$8.51 but less than $9.51
9
$9.51 but less than $10.01
10
(ii) The tax on purchases in excess of $10 is
					 1% of each $10 of the purchase price plus the bracket charge on a fractional
					 part of a $10 increment under subparagraph (i).
(13)
Taxable county.
A
					 county or the city of Philadelphia which has adopted the local tax.
(14)
Nontaxable county.
A
					 county which has not adopted the local tax.
(15)
Effective date of local
					 tax.
(i) The effective dates of the
					 local tax in counties that have adopted the local tax are as follows:
County
Effective
								Date
Rate
Allegheny
July 1, 1994
1%
Philadelphia
October 1, 1991
1%
(ii) When a county adopts the local tax or
					 changes the rate of the local tax, the Department will publish a notice in the
Pennsylvania Bulletin
and codify the change in subsection
					 (a)(15)(i).