Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 153 - CORPORATE NET INCOME TAX › ALLOCATIONS AND APPORTIONMENTS › Section 153.26 - Sales factor

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Interest on United States securities and dividends received.
Gross receipts in the form of interest on United States securities and
						dividends received shall be excluded from sales. Reference should be made to
						section 401(3)2.(a)(1)(E), (15) and (17) of the TRC (72 P. S. §
													7401(3) 2.(a)(1)(E), (15)
						and (17)).
(b)
Sales of
						tangible personal property.
The following sales factors shall apply to
						the sale of tangible personal property.
(1)
When sales of tangible personal property are in this
						Commonwealth.
Sales of tangible personal property are in this
						Commonwealth if the property is delivered or shipped to a purchaser within this
						Commonwealth regardless of the f.o.b. point or other conditions of the sale.
						Reference should be made to section 401(3)2.(a)(16) of the TRC (72 P. S. §
														7401(3)
						2.(a)(16)).
(2)
General
						rule.
Sales of tangible personal property are in the state in which
						delivery to the purchaser occurs.
Example:
A taxpayer produces beer in
						  New York. Taxpayer sells the beer to a distributor located in this
						  Commonwealth. Distributor sends its truck into New York to taxpayer's plant to
						  pick up the beer and brings the beer back to its Commonwealth business
						  location. Delivery has occurred in New York and these taxpayer's sales are in
						  New York.
(3)
Definitions.
The following words and terms, when used in this
						chapter, have the following meanings, unless the context clearly indicates
						otherwise:
(i)
Delivered
-The
						physical transfer of possession of tangible personal property to the
						purchaser.
(ii)
Purchaser
-The term includes the following:
(A) The ultimate recipient of the property if
						the taxpayer, at the designation of the purchaser, delivers property in this
						Commonwealth to the ultimate recipient.
Example:
A taxpayer in this
						  Commonwealth sold merchandise to a purchaser in New York. Taxpayer directed the
						  manufacturer of the merchandise in Ohio to ship the merchandise to the
						  purchaser's customer in this Commonwealth under purchaser's instructions. The
						  sale by the taxpayer is in this Commonwealth.
(B) A consignee if the taxpayer (consignor)
						delivers or ships property in this Commonwealth to a consignee which the
						consignee subsequently sells.
Example:
The taxpayer (consignor)
						  located in Ohio ships property to this Commonwealth to a consignee. Consignee,
						  also a taxpayer, sells and ships such property to New York to its purchaser.
						  The consignor's sale is in this Commonwealth and the consignee's sale is in New
						  York.
(iii)
Shipped
-The transportation of tangible personal property,
						including delivery, to the purchaser.
(4)
Application of general
						rule.
The general rule shall be applied as follows:
(i) Property shall be deemed to be delivered
						to a purchaser within this Commonwealth if the shipment terminates in this
						Commonwealth, even though the property is subsequently transferred by the
						purchaser to another state.
Example:
A taxpayer makes a sale of
						  desks to a purchaser who maintains a central warehouse in this Commonwealth at
						  which merchandise purchases are received. The purchaser reships sale. The
						  taxpayer's desks shipped to the purchaser's warehouse in this Commonwealth are
						  sales in this Commonwealth.
(ii) When property is being shipped by a
						taxpayer (consignor) from the state of origin to a consignee in another state
						and is diverted while enroute and shipped in this Commonwealth to a purchaser,
						the sale is in this Commonwealth.
Example:
The taxpayer begins shipment
						  of property from Ohio to the purchaser's place of business in New York. While
						  enroute the property is diverted to and shipped to the purchaser's place of
						  business in this Commonwealth. The sale by the taxpayer is in this
						  Commonwealth.