Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 31 - IMPOSITION › GENERAL PROVISIONS › Section 31.7 - Use tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Imposition
. Imposition of use tax shall conform with the
						following:
(1) A person who purchases taxable
						tangible personal property or services outside of this Commonwealth incurs a
						use tax liability at the rate of 6% of the purchase price if the property or
						services are subsequently used or consumed in this Commonwealth and
						Commonwealth tax is not paid to the vendor. The use tax is also incurred by a
						purchaser of taxable tangible personal property or services within this
						Commonwealth if tax is not paid to the vendor.
(2) Licensees shall report and pay use tax at
						the time their regular sales tax return is due. Nonlicensees shall report and
						pay use tax on or before the end of the month following the month during which
						the tax was incurred.
(3)
						Purchasers who are licensed by the Bureau of Sales and Use Tax (Bureau) or who
						reside outside of this Commonwealth shall pay the tax directly to the Bureau.
						Purchasers who reside in this Commonwealth, except those who reside in
						Philadelphia County, shall be given the option under the law of paying the tax
						either directly to the Bureau or to the treasurer of the county in which they
						reside. The following are illustrations of transactions which give rise to tax
						liability. It is assumed in each example that the vendor has not collected
						sales tax from his purchaser:
Example 1
. A resident of this
						  Commonwealth purchases a radio from a New York supply house. The purchaser
						  incurs use tax liability whether the purchaser brings it into the Commonwealth
						  himself or has it shipped to him.
Example 2
. A resident of this
						  Commonwealth purchases a radio from a Commonwealth vendor who fails to collect
						  tax on the transaction. The purchaser is liable for use tax.
Example 3
. A company has offices in
						  New York and this Commonwealth. It sends office equipment purchased in New York
						  to its offices in this Commonwealth. The company incurs use tax liability on
						  the equipment.
Example 4
. A New York firm has
						  salespersons soliciting orders in this Commonwealth. It purchases advertising
						  displays in New York which it uses for promotional purposes in this
						  Commonwealth. The company incurs use tax liability on the displays.
Example 5
. A furniture manufacturer
						  purchases lumber tax-exempt under a resale exemption certificate. It uses some
						  of the lumber to repair its own office flooring. It incurs use tax liability on
						  the lumber.
Example 6
. A resident of this
						  Commonwealth has his truck repaired in New Jersey. The resident incurs use tax
						  liability on the repair charges when he brings his repaired truck into the
						  Commonwealth.
Example 7
. A contractor of this
						  Commonwealth purchases plumbing materials from a New York manufacturer to
						  install in houses the contractor is building in this Commonwealth. He incurs
						  use tax liability on the materials.
Example 8
. An Ohio contractor brings
						  equipment and materials into this Commonwealth to use or consume in
						  constructing an office building. He incurs use tax liability on the equipment
						  and materials.