reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 7 - BOARD OF APPEALS › Section 7.16 - Security upon petition for review

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General rule
. The
				  Pennsylvania Rules of Appellate Procedure provide that a petition for review of
				  an order of the Board of Finance and Revenue in a tax matter filed with the
				  Commonwealth Court operates as a supersedeas upon the filing of appropriate
				  security.
(b)
Alternate
				  procedure
. If appropriate security is not filed as described in
				  subsection (a), the Department will pursue collection activity, including the
				  filing of a lien, to collect unpaid tax, interest, additions or penalties
				  subject to the Commonwealth Court's review except as provided subsection
				  (c).
(c)
Rules and
				  procedures
.
(1)
Request for
				  Department review
. A person may submit a request to the Department to
				  determine whether the amount of unpaid tax, interest, additions or penalties is
				  in jeopardy of collection if appropriate security is not provided.
(2)
Determination
. If the
				  Department determines that the amount of unpaid tax, interest, additions or
				  penalties is not in jeopardy, then the Department will not pursue collection
				  activities during the Commonwealth Court's review. The Department's
				  determination will be based upon the documentation required to be submitted in
				  paragraph (3). The Department's determination under this paragraph is made
				  solely at the Department's discretion.
(3)
Procedure
. The request
				  under paragraph (1) shall be made in writing on a form prepared by the
				  Department. The written request shall include the person's most recent
				  financial statements, including a balance sheet, income statement and all notes
				  pertaining to the statements. The Department may request other financial
				  documentation. An individual may be required to submit a personal balance
				  sheet.
(4)
Appeal
				  rights
. There is not a right to appeal the Department's determination
				  under paragraph (2).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
					 have the following meanings, unless the context clearly indicates
					 otherwise.
Audit period
-The period of time for which
					 the audit is conducted.
Block sample
-One or more groups of
					 transactions selected as a unit from a population. For example, invoices
					 numbered 100 to 200, or transactions for the months of May and October.
Clustered sample
-A statistical sample in
					 which blocks of adjacent transactions are selected with known probability. A
					 statistical sample of transactions within the blocks may be selected, creating
					 a two-stage statistical sample.
Deviation from the mean
-The numerical
					 difference between a single statistical observation and the mean (average) of
					 all of the statistical observations.
Outlier
-A statistical observation that
					 appears to deviate markedly from other members of the sample from which it
					 came.
Population
-The total transactions during
					 an audit period from which the sample is selected.
Range
-The numerical difference between the
					 largest and smallest statistical observations in the sample.
Standard deviation
-The square root of the
					 average squared deviation from the mean.
Standard error
-The standard deviation
					 divided by the square root of the number of statistical observations in the
					 sample.
Statistical estimation
-A method of
					 estimating the numerical characteristics of a population, such as averages,
					 totals or ratios, from a statistical sample and estimating the precision of the
					 estimated characteristics.
Statistical sample
-A selection of
					 transactions in which each of the transactions in the population, or a stratum
					 from it, has a known chance of being selected. The term is also known as a
					 probability sample.
Stratum
-A subdivision of the population in
					 which the transactions within the subdivision are expected to be more uniform
					 with respect to the characteristics being examined than the transactions across
					 the subdivisions.
Taxpayer
-A person, association, fiduciary,
					 partnership, corporation or other entity required to pay, withhold or collect
					 any tax that is administered by the Department.
Test audit
-An audit of sampled
					 transactions selected by either a block sample or a statistical sample
					 method.
Test period
-A time period or periods
					 selected for the test audit; for example, the month of May.
Transaction
-The term includes an entry,
					 document, invoice or other record regardless of the method of creation or
					 retention.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.2 - Examination of books and records

Current through Register Vol. 54, No. 28, July 13, 2024
The Department may examine all books, papers and records of
					 a taxpayer or another person having possession of or dominion over these
					 records to:
(1) Verify the accuracy
				  and completeness of a tax return or tax report filed by the taxpayer and
				  ascertain or assess tax or other liability owed to the Commonwealth.
(2) Ascertain or assess tax or other
				  liability owed to the Commonwealth if no tax return or tax report has been
				  filed by the taxpayer.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.4 - Determination of liability

Current through Register Vol. 54, No. 28, July 13, 2024
The Department may determine tax liability owed by a
					 taxpayer to the Commonwealth based upon the facts contained in a tax return, a
					 tax report or other information that may come into the Department's
					 possession.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.5 - Determination of audit method

Current through Register Vol. 54, No. 28, July 13, 2024
When the taxpayer does not have complete records or when
					 the review of each transaction would be unduly burdensome on the Department to
					 conduct an audit in a timely and efficient manner, the Department will
					 determine whether to examine all of the records of a taxpayer for an entire
					 audit period, employ a test audit method or utilize a combination of audit
					 methods. In making this determination, the Department will consider the
					 following factors:
(1) The type of tax
				  under audit.
(2) The nature of the
				  taxpayer's business.
(3) The number
				  of transactions in the population.
(4) The adequacy and availability of the
				  taxpayer's records.
(5) Whether the
				  taxpayer's business is cyclical or seasonal.
(6) Whether significant changes in the
				  taxpayer's business or activities occurred during the audit period, such as
				  discontinuing or adding a line of business.
(7) Other relevant factors.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.7 - Statistical estimation and software

Current through Register Vol. 54, No. 28, July 13, 2024
The audit results shall be computed by projecting the audit
					 findings identified in the sample, as adjusted for outliers as provided in
					 §
										8a.6(3) (relating
					 to selection of sample) to the population, regardless of whether the sample is
					 a statistical sample or a block sample.
(1) When the Department employs the block
				  sampling method, the standard error cannot be estimated.
(2) When the Department employs the
				  statistical estimation method, a standard error of the estimate shall be
				  computed from the sample observations adjusted for outliers as provided in
				  §
										8a.6(3) to
				  indicate the reliability of the estimated average, total or ratio. The
				  Department may use software that has been designed in accordance with accepted
				  statistical practices. The formulas utilized by the software will be available
				  for examination by the taxpayer.
(3) Except as otherwise mutually agreed to by
				  the Department and the taxpayer, the number of observations in the sample will
				  be chosen so that the projected sample will, on the average, yield an estimated
				  precision within 25% of the midpoint of a 90% two-sided confidence interval. In
				  determining the size of the sample, the Department will use the sample size
				  selection table in paragraph (4). The estimated precision of the sample
				  selected may be less than or greater than 25%, depending upon the variability
				  in the sample data. The standard error and estimated precision will be
				  calculated and reviewed with the taxpayer. The sample size will be increased
				  upon the request of the taxpayer. The process of increasing the sample size
				  will be repeated until mutual agreement is reached between the taxpayer and the
				  Department on an acceptable number of observations.
(4) The following sample size selection table
				  identifies estimated sample sizes required to produce estimates with specified
				  precision:
Sample Size Selection Table
Precision
Confidence Interval (2
								sided)
Estimated Coefficient of Variation
								(CV)
0.25
0.50
0.65
0.75
1.00
1.50
2.00
3.00
5.00
5%
90%
								Normal
68
271
650
609
1,083
2,435
4,330
9,742
27,060
10%
Deviate
*
68
115
153
271
609
1,082
2,435
6,765
15%
1.645
*
31
51
68
121
271
481
1,082
3,007
20%
*
*
29
39
68
152
271
609
1,691
25%
*
*
*
25
44
97
173
390
1,082
30%
*
*
*
*
31
68
120
271
752
35%
*
*
*
*
23
50
88
199
552
40%
*
*
*
*
*
38
68
152
423
* Fewer than 20 sample observations are
					 required.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.8 - Test audit plan

Current through Register Vol. 54, No. 28, July 13, 2024
Prior to conducting a test audit, the Department will set
					 forth in writing a test audit plan and provide the taxpayer with an opportunity
					 to review and comment on the plan. The plan will describe the time period
					 subject to audit, the records subject to review, methods for selecting records,
					 statistical estimation procedures including the taxpayer's right to request an
					 increase in sample size and the manner in which any tax liability will be
					 calculated based upon the records reviewed.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.9 - Audit findings

Current through Register Vol. 54, No. 28, July 13, 2024
At the conclusion of the audit, the audit findings and a
					 copy of the work papers will be provided to the taxpayer. The auditor
					 will:
(1) Discuss the findings with
				  the taxpayer.
(2) Provide the
				  taxpayer the opportunity to comment in writing.
(3) Explain the procedures for the
				  processing, assessing and appealing of the audit findings.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 8a - ENFORCEMENT › Section 8a.10 - Taxpayer appeal

Current through Register Vol. 54, No. 28, July 13, 2024
The taxpayer may appeal the accuracy of a test audit by
					 providing clear and convincing evidence that the method used for selecting a
					 statistical sample or block sample test period and determining the tax
					 liability is erroneous, lacks a rational basis or produces a different result
					 when the complete records are considered.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 9 - REVENUE PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 9.2 - Sales and use tax changes

Current through Register Vol. 54, No. 28, July 13, 2024
The act of August 4, 1991 (P. L. 97, No. 22) (act) contains
					 numerous changes to Sales and Use Tax law found in Article II of the TRC
					 (72
					 P. S. §§
											7201-7282). The changes
					 are effective October 1, 1991. These changes also apply to Philadelphia Local
					 Sales Tax. The major changes are:
(1)
Services.
(i) The following
				  services are taxable:
(A) Lobbying
				  services.
(B) Adjustment services,
				  collection services or credit reporting services.
(C) Secretarial or editing
				  services.
(D) Disinfecting or pest
				  control services, building maintenance or cleaning services.
(E) Employment agency services, help supply
				  services or other personnel supply services.
(F) Computer programming or other computer
				  related services, including the provision of:
(I) Computer integrated systems
				  design.
(II) Computer
				  processing.
(III) Data preparation
				  or processing services.
(IV)
				  Information retrievable services or computer facilities management
				  services.
(G) Lawn care
				  services.
(H) Storage
				  services.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 9 - REVENUE PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 9.12 - Foreign dividends effect of Kraft decision

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The act of August 4, 1991 (P. L. 97, No.
				  22), effective for tax years beginning on or after January 1, 1991, amended the
				  Corporate Net Income (CNI) Tax by repealing the total exclusion of all
				  corporate dividends from taxable income and instead following the dividend
				  exclusion provided under the IRC. In addition, the foreign dividend gross-up
				  was specifically allowed as a deduction, while no foreign tax credit was
				  provided.
(b) In
Kraft
				  General Foods, Inc. v. Iowa Department of Revenue
, 112 S.Ct. 2365
				  (1992), decided June 18, 1992, the United States Supreme Court struck down an
				  Iowa statute imposed on a corporation's net income, substantially similar in
				  all material respects to the amended Pennsylvania CNI Tax, on the ground that
				  it facially discriminated against foreign commerce in violation of the Foreign
				  Commerce Clause. The Department has concluded that the
Kraft
decision is equally applicable to the CNI Tax to the extent that adoption of
				  the Federal tax base results in a facial discrimination against foreign
				  commerce by not allowing any deduction for certain foreign dividends.
(c) To administer the CNI Tax in a
				  constitutional manner, an additional deduction from the CNI Tax base for
				  foreign dividends is required.
See
for
				  example-
Commonwealth v. Curtis Publishing Co.
, 363 Pa. 299,
				  69 A.2d 410 (1949). Until the General Assembly amends the affected provision of
				  the CNI statute, the Department finds that by allowing a deduction for foreign
				  dividends in the following manner, discrimination is remedied and the original
				  intent of the General Assembly to tax at least a portion of Federally-taxable
				  dividends is achieved.
(1) The Department will
				  allow foreign dividends reported on lines 13 and 14 of the Federal return
				  Schedule C an additional deduction equal to one of the following:
(i) Seventy percent, if the dividends are
				  from a less than 20%-owned foreign corporation.
(ii) Eighty percent, if the dividends are
				  from a 20%-or-more-owned foreign corporation.
(iii) One hundred percent, if the dividends
				  are from a foreign corporation that meets the "80% voting and value test" of
				  section 1504(a)(2) of the IRC (26 U.S.C.A. §
													1504(a)(2)) and would
				  otherwise qualify for a 100% deduction under section 243(a)(3) of the IRC
				  (26 U.S.C.A. §
													243(a)(3)) if the foreign
				  corporation were a domestic corporation.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 9 - REVENUE PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 9.13 - Pennsylvania S Corporation election

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Generally
. The
				  shareholders of a corporation which qualifies as a "small corporation" under
				  subsection (b) may elect to be taxed as a Pennsylvania S Corporation. The
				  shareholders' election of Pennsylvania S Corporation status is valid only if
				  all shareholders of record on the day the election is filed sign a consent to
				  the election. If an election is made, each shareholder will be subject to
				  Pennsylvania Personal Income Tax on each shareholder's pro rata share of the S
				  Corporation income, whether distributed or not. For taxable years beginning on
				  or after January 1, 1998, the taxable income of a Pennsylvania S Corporation
				  for corporate net income tax purposes is the corporation's net recognized
				  built-in gain as determined for Federal income tax purposes under section
				  1374(d)(2) of the IRC (26
				  U.S.C.A. §
											1374(d)(2)).
(b)
Pennsylvania S Corporation
				  election.
A Pennsylvania S Corporation election may be made by the
				  shareholders of any small corporation that is subject to the Pennsylvania
				  corporate net income tax or that owns directly, or through a wholly owned
				  subsidiary, 100% of the stock of a qualified Subchapter S subsidiary that is
				  subject to the Pennsylvania corporate net income tax. A corporation is a small
				  corporation if it meets all of the following requirements:
(1) The corporation has a valid election in
				  effect under Subchapter S of the IRC of 1986 (26 U.S.C.A. §§
												1361-1379).
(2) The corporation would have qualified as a
				  Federal S Corporation under Subchapter S of the IRC of 1986, as amended to
				  January 1, 1997.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 9 - REVENUE PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 9.16 - Effect of Federal Small Business Job Protection Act

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Internal Revenue Code Subchapter
				  S revisions.
The United States Congress has enacted the Small Business
				  Job Protection Act of 1996 (Federal Act) (Pub.L. No. 104-188, 110 Stat.
				  1755 (1996)) to be effective for tax years beginning after December 31, 1996.
				  This act amends Subchapter S of the IRC by revising the manner in which Federal
				  S corporations may organize. Among other things, these revisions affect the
				  following areas:
(1) The number of
				  shareholders.
(2) The types of
				  shareholders.
(3) Affiliations with
				  other corporations.
(4) Invalid
				  elections.
(5) Reelections within 5
				  years after termination.
(6)
				  Interim closing of the books upon termination of a shareholder's
				  interest.
(7) Basis adjustments for
				  distributions occurring in loss years.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 9 - REVENUE PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 9.17 - Research and development tax credit implementation issues

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Research and Development Tax Credit
				  Law (72 P. S. §§ ___) provides for a credit against a taxpayer's
				  liabilities imposed under Article III, IV or VI of the TRC (72 P. S.
				  §§
											7301-7361,
				  7401-7412 and
				  7601-7606). The credit is
				  available to those businesses who incur expenses for qualified research and
				  development activities performed within this Commonwealth. This statement of
				  policy provides an explanation of eligible taxpayers.
(b) The Research and Development Tax Credit
				  Law's definition of Pennsylvania base amount requires that a taxpayer have at
				  least 1 taxable year preceding the taxable year in which the Pennsylvania
				  qualified research and development expenses are incurred. A taxpayer may not
				  apply for a research and development credit until the calendar year beginning
				  after the close of the taxpayer's second taxable year in which Pennsylvania
				  research and development expenses are incurred which are effectively connected
				  with the conduct of a trade or business within this Commonwealth.
(c) A taxpayer with Pennsylvania qualified
				  research and development expenses which are effectively connected with the
				  conduct of a trade or business within this Commonwealth in at least 2 preceding
				  taxable years, the second which ended on or before December 31, 1996, may apply
				  for a research and development tax credit by September 15, 1997. The credit
				  will be for those research and development expenses incurred in the taxpayer's
				  taxable year that ended in 1996. A taxpayer shall apply for the credit on the
				  form prescribed by the Department. The form is available by contacting the
				  Bureau of Corporation Taxes, Taxing Division-R & D Unit, Department 280703,
				  Harrisburg, Pennsylvania, 17128-0703.
(d) Section 306 of the TRC (72 P. S. §
											7306) explains that a partnership is not
				  subject to Personal Income Tax, but the income of a member of a partnership is
				  subject to the tax on his share of the income received by the partnership. As
				  the partner is the entity subject to tax under Article III of the TRC, and not
				  the partnership, each partner is entitled to a research and development tax
				  credit. The research and development credit applicable to a partnership may be
				  claimed by each partner on a pass through basis with each partner (taxpayer)
				  computing the credit on a pro rata basis.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 9 - REVENUE PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 9.18 - Cost of collection

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definition
. The following term, when used in this section, has
				  the following meaning:
Cost of collection-
Limited only to lien
					 filing costs, costs imposed under a Federal or other State tax refund offset
					 program, or costs incurred by the Department or the Office of Attorney General
					 in paying commissions or other remuneration, such as private attorneys' fees,
					 or fees to private collection agencies to collect the Department collectible
					 tax liabilities.
(b)
Reimbursement for cost of collection.
(1) The costs of collection incurred by the
				  Department or the Office of Attorney General on a liability for taxes
				  administered by the Department, in addition to all tax principal, interest,
				  penalties and fees, must be paid in full before the delinquent taxpayer's
				  liability will be extinguished by the Department on its records unless the cost
				  of collection is discharged by operation of law.
(2) Exceptions are as follows:
(i) Fuels tax liabilities.
(ii) Motor Carrier Road Tax liabilities. The
				  fuel tax system is excluded from these provisions because statutory provisions
				  in
				  75 Pa.C.S. §
													9014(b) (relating to
				  collection of unpaid taxes) already establish a commission that shall be paid
				  by a delinquent distributor when a delinquent fuel tax liability is paid by the
				  distributor, after institution of a suit by the Office of Attorney General and
				  the commissions under
				  75 Pa.C.S. §
													9014(b) already constitute a
				  lien on a delinquent distributor's property.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart A - General Provisions › Chapter 11 - ORGAN AND BONE MARROW DONOR TAX CREDIT › Section 11.1 - Organ and bone marrow donor tax credit

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Applicable taxes.
The
				  Organ and Bone Marrow Donor Act (35 P. S. §§
											6120.1-6120.6) provides for an organ or bone
				  marrow donor tax credit to be claimed by a business firm against the taxes
				  imposed under Article III, IV, VI, VII, VIII or XV of the Tax Reform Code of
				  1971.
(b)
Apportionment of
				  credit of multistate business firms.
The organ or bone marrow donor
				  tax credit that may be claimed against the taxes in subsection (a) by a
				  business firm subject to tax in more than one state shall be apportioned to
				  Pennsylvania by multiplying the credit by a fraction, the numerator of which is
				  the total amount paid in this Commonwealth during the tax period by the
				  business firm for compensation and the denominator of which is the total
				  compensation paid everywhere during the tax period.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this chapter,
						have the following meanings, unless the context clearly indicates
						otherwise:
Act
-The Race Horse Industry Reform Act
						(4 P.
						S. §§
												325.101-325.402).
Commission
-The State Horse Racing
						Commission or the State Harness Racing Commission of the Commonwealth.
Licensed corporations
-A corporation that
						has obtained a license from the Commission to conduct thoroughbred or harness
						meetings for parimutuel wagering.
Make-up-race day
-A previously
						authorized race day which was cancelled due to reasons beyond the control of
						the licensed corporation and which has been authorized and rescheduled by the
						Commission and certified as a make-up-race day to the Secretary under the
						section 207 of the act (4 P. S. §
												325.207).
Meeting
-The period within a calendar
						year for which approval to race has been granted by the Commission to a
						licensed corporation.
Multiple/exotic race
-A race involving
						two or more horses including exacta, daily double, quinella, trifecta and
						similar races.
"Outs" tickets
-A ticket resulting in a
						distribution from the parimutuel pool which has not been presented for
						payment.
Postmark date
-The date imprinted upon an
						envelope or wrapper by the United States Postal Service but does not include
						the postmark date printed by a postal meter licensed by the United States
						Postal Service.
Race day
-A day during a meeting for
						which horse or harness racing has been authorized by the Commission and which
						has been certified to the Secretary under section 207 of the act.
Secretary
-The Secretary of the
						Department.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.2 - Wagering tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
A licensed corporation shall pay daily to the
					 Department a tax upon the total amount wagered together with a tax upon the
					 total amount wagered in each multiple/exotic race during the race
					 day.
(b)
Filing tax return
					 and payment of tax.
Each licensed corporation shall file a tax return
					 for each race day including previously authorized race days which are
					 cancelled. The tax return together with the required tax and breakage shall be
					 filed with the Department by the due date. The tax return shall be in the
					 format prescribed by the Department and shall be completed in accordance with
					 instructions of the Department.
(c)
Due date.
(1) The wagering
					 tax return shall be filed, and tax payment and breakage shall be made by the
					 end of the day following the race day during which the wagers were
					 made.
(2) This subsection shall be
					 subject to §§
												21.6 and
					 21.7 (relating to extension of
					 time for filing tax returns; and timely mailing treated as timely filing and
					 payment).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.3 - Admission tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
A licensed corporation is required to collect and
					 remit to the Department a tax upon each admission. The tax is imposed upon one
					 of the following:
(1) The admission price
					 charged for individual admissions.
(2) The admission price charged for seasonal
					 discount tickets.
(3) The minimum
					 charge approved by the Commission in the case of free passes, cards or badges
					 issued under special promotional programs to persons other than those listed at
					 subsection (e).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.4 - Breakage

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
Licensed corporations which conduct thoroughbred
					 horse racing shall pay to the Department, in addition to wagering taxes, an
					 amount equal to 25% of the breakage retained by the corporation from total
					 wagers each racing day.
(b)
Payment date.
Breakage shall be paid daily to the Department
					 and shall accompany the wagering tax return filed with the Department. This
					 subsection shall be subject to the provisions of §§
											21.6 and
					 21.7 (relating to extension of
					 time for filing tax returns; and timely mailing treated as timely filing and
					 payment).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.5 - Unclaimed award money

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
Winning parimutuel tickets shall be presented for
					 payment to the licensed corporation by March 31 of the year following the
					 calendar year of purchase. The failure to present a winning ticket by that date
					 constitutes a waiver of the right to receive the award money. The licensed
					 corporation is required to remit to the Department unclaimed award
					 money.
(b)
Filing of return
					 and payment.
The licensed corporation shall file an unclaimed award
					 money return together with the unclaimed award money by the due date. The
					 return shall be in the format prescribed by the Department and shall be
					 completed in accordance with instructions of the Department.
(c)
Due date.
(1) The unclaimed award money return shall be
					 filed and all unclaimed award money shall be paid by April 10 of each
					 year.
(2) This subsection shall be
					 subject to §§
												21.6 and
					 21.7 (relating to extension of
					 time for filing tax returns; and timely mailing treated as timely filing and
					 payment).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.6 - Extension of time for filing tax returns

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
The Department
					 may, for good cause, grant to a licensed corporation an extended period of time
					 up to 60 days within which to file its wagering or admission tax return, if the
					 request for extension is in written form, is received by the Department, Attn:
					 Bureau of Examination, on or before the due date for filing the tax return to
					 which the extension relates, and specifies the extended date upon which the
					 return will be filed. Upon receipt of the request, the Department will in
					 writing advise the licensed corporation whether or not the request has been
					 granted. Notwithstanding the grant of an extension for filing a return, the
					 Department will impose interest upon the unpaid tax. The Department may not
					 impose penalties if the tax return is filed and the tax payment has been
					 remitted to the Department on or before the extended due date for filing the
					 tax return.
(b)
Nonbusiness
					 due date.
Whenever a due date for filing a wagering or admission tax
					 return falls on a Saturday, Sunday or on a day made a legal holiday by the
					 statutes of this Commonwealth or by the United States, the due date shall be
					 the next regular business day.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.7 - Timely mailing treated as timely filing and payment

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
A tax return
					 and payment enclosed in an envelope or wrapper which reflects a postmark date
					 shall be considered as filed by the postmark date. If the postmark date
					 reflects a date on or before the due date, the return and payment will be
					 deemed timely filed. If the postmark date reflects a date after the due date,
					 the tax return and payment will be considered as having been filed
					 late.
(b)
Registered
					 mail.
If a tax return and payment are sent by registered mail, the
					 date of registration shall be treated as the postmark date.
(c)
Certified mail.
If tax
					 return and payment are sent by certified mail, the postmark date imprinted on
					 the sender's receipt shall be treated as the postmark date.
(d)
No postmark and metered
					 marks.
Tax returns and payments enclosed in envelopes or wrappers
					 having no postmark date or having a postmark date printed by a meter, even if
					 licensed by the United States Postal Service, shall be deemed as having been
					 filed late if received by the Department more than 5 days after the due
					 date.
This section cited in 61 Pa. Code §
													21.2 (relating to wagering tax);
						  61 Pa. Code §
													21.3 (relating to admission tax);
						  61 Pa. Code §
													21.4 (relating to breakage); and
						  61 Pa. Code §
													21.5 (relating to unclaimed prize
						  money).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.8 - Interest and penalties

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Interest.
Wagering and admission tax paid or remitted to the
					 Department after the due date shall be subject to interest at the rate in
					 effect as determined by the Secretary, beginning on the day following the due
					 date and continuing to the date of payment.
(b)
Penalty.
Admission tax
					 paid or remitted to the Department after the due date or extended due date
					 under §
											21.6 (relating to extension of
					 time for filing tax returns), shall be subject to a penalty at the rate of 5.0
					 % per month, for each month the tax remains unpaid, beginning on the day
					 following the due date and continuing to the date of payment. If a licensed
					 corporation fails to file a wagering tax return by the due date or extended due
					 date and fails to file the return within 30 days following a written demand by
					 the Department, the licensed corporation shall be subject to a penalty of $500
					 in accordance with section 1703 of The Fiscal Code (72 P. S. §
												1703).
This section cited in 61 Pa. Code §
													21.10 (relating to
						  miscellaneous).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.9 - Records

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Required records.
A licensed corporation shall maintain
					 records which will permit the Department to examine and verify the following:
(1) Daily wagers.
(2) Contributions to, retention of and
					 distributions from the corporation's parimutuel pool.
(3) Unclaimed award monies or "outs"
					 listings.
(4) Manually processed
					 "outs" tickets.
(5) Taxable
					 admissions for which admission charges are made.
(6) Taxable seasonal discount ticket
					 programs.
(7) Taxable special
					 promotional programs for which free passes, cards or badges are
					 issued.
(8) Exempt free passes
					 issued to those individuals described at §
												21.3(e) (relating
					 to admission tax).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article I - Parimutuel Collections › Chapter 21 - GENERAL PROVISIONS › Section 21.10 - Miscellaneous

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Settlements.
(1)
Wagering or admissions tax.
If a licensed corporation fails to
					 pay to the Department the required wagering or admission tax by the due date,
					 the Department will determine the amount of tax interest and penalty due and
					 settle the tax together with interest and penalty, under §
												21.8 (relating to interest and
					 penalties).
(2)
Breakage
					 and unclaimed award money.
If a licensed corporation fails to pay to
					 the Department the required breakage and unclaimed award money by the due date,
					 the Department will determine the amount of unclaimed award money due and
					 settle the account with the licensed corporation.
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 31.1 - Persons and sales subject to tax

Current through Register Vol. 54, No. 28, July 13, 2024
An excise tax shall be imposed upon the sale at retail
						  or the use within this Commonwealth of tangible personal property and certain
						  services, unless otherwise exempted.
(1) Sale at retail includes a transfer for
						value of the ownership, custody or possession of tangible personal property.
						"Rentals or leases" of tangible personal property and the grant of a license to
						use or consume are sales at retail.
(2) Use includes the exercise of a right or
						power incidental to the ownership, custody or possession of tangible personal
						property and shall include, but not be limited to, transportation. Use also
						includes the obtaining of taxable services.
(3) The term tangible personal property
						includes, but is not limited to, the following:
(i) Goods, wares and merchandise, other than
						household supplies purchased from retail establishments for residential
						consumption.
(ii) Steam,
						electricity and fuel oil, when not purchased directly by the user solely for
						his own residential use.
(iii)
						Natural, manufactured or bottled gas when not purchased directly by the user
						solely for his own residential use.
(iv) Intrastate telephone and telegraph
						service for nonresidential use.
(v)
						Spirituous or vinous liquor.
(vi)
						Malt and brewed beverages.
(vii)
						Soft drinks.
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 31.2 - Rates

Current through Register Vol. 54, No. 28, July 13, 2024
The tax shall be imposed on the purchase price at a
						  rate of 6%.
(1) The purchase price is
						the total value of anything paid or delivered, or promised to be paid or
						delivered, whether it is money or otherwise, in complete performance of a sale,
						lease or purchase. Deductions from this total value may not be made on account
						of: the cost or value of the property sold; the cost or value of
						transportation; the cost or value of labor or service; interest or discount
						paid or allowed after the sale is consummated; and any other taxes imposed by
						the Commonwealth. A separately stated deposit charge for returnable containers
						shall be excluded from the determination of the purchase price.
(2) The tax shall be imposed according to the
						following schedule:
Purchase Price (in
									 cents)
Tax (in cents)
10 or less ...
No tax
11 but less than 18 ...
1
18 but less than 35 ...
2
35 but less than 51 ...
3
51 but less than 68 ...
4
68 but less than 85 ...
5
85 but less than $1.01 ...
6
$1.01 or more ...
6% of each dollar
									 plus above bracket charges for fraction of a dollar.
(3) The tax imposed shall be paid on each
						separate sale at retail. It shall be computed and collected on the basis of the
						total amount of taxable items in the transactions without regard to the value
						or price of the separate items making up the total amount of a single sales
						transaction. A vendor may neither advertise nor otherwise state that the tax or
						any part thereof will be absorbed by the vendor or not be charged.
(4) When referred to in advertising or other
						price quotations, the tax shall be separately stated. For example, an article
						selling for 99¢ may not be advertised at "$1.05" or "$1.05 including tax"
						but shall be advertised at "99¢ plus tax," "99¢ plus 6¢ tax" or
						"99¢." Credit shall be allowed for taxes paid to another state on tangible
						personal property purchased for use therein and later brought into this
						Commonwealth if the other state allows similar credit to this Commonwealth
						residents.
(5) When a purchaser
						fails to pay the tax to the vendor, the Commonwealth may collect the tax from
						the purchaser or the vendor.
This section cited in 61 Pa. Code §
														31.6 (relating to persons
							 rendering nontaxable services).
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 31.3 - Exclusions

Current through Register Vol. 54, No. 28, July 13, 2024
The tax does not apply to the following:
(1) Sales of tangible personal property or
						rendition of services for resale. Resale includes incorporation of property as
						an ingredient into other tangible personal property which is either sold in the
						regular course of business or transported in interstate commerce to
						out-of-State destinations for use outside of this Commonwealth.
(2) Isolated transactions other than: sales
						of inventory and stock in trade; and sales of motor vehicles, trailers and
						semitrailers, motor boats, aircraft or other similar tangible personal property
						required under either Federal law or the laws of the Commonwealth to be
						registered or licensed.
(3)
						Gasoline and other motor fuels subject to The Liquid Fuels Tax Act
						(72
						P. S. §§
													2611a-2611c) and The Fuel
						Use Tax Act (72 P. S. §§
													2614.1-2614.24).
(4) Tangible personal property used but not
						consumed within this Commonwealth if it is purchased outside of this
						Commonwealth and then brought into this Commonwealth for the following
						purposes:
(i) Temporary use not to exceed 7
						days by a nonresident.
(ii) A
						period by a nonresident vacationer or tourist.
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 31.4 - Rentals or leases of tangible personal property

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Imposition.
Transfers of
						possession or of custody of tangible personal property for consideration, by
						whatever means effected and irrespective of the terms employed by the parties
						to describe the transaction, are taxable. The rental, lease or license to use
						or consume tangible personal property is subject to tax. For example, when a
						machine shop grants to another the right to use its machinery on weekends for a
						fee, the transaction is taxable. Similarly, the grant of a right to use an
						electronic computer for a fee is subject to tax. If a transferee fails to pay
						the tax to the transferor in connection with a taxable transaction, the
						Commonwealth may collect the tax from the transferor or transferee.
(1) If the equipment is furnished with the
						services of an operator, it shall be presumed that the transaction involves a
						transfer of the right to use or direct the use of the equipment. This
						presumption may be rebutted by establishing that the work to be accomplished is
						exclusively under the control of the person who furnished the equipment and
						operator.
(2) If the equipment
						furnished with an operator consists of tools of the operator's trade and the
						value of the use of the tools is insignificant in relation to the operator's
						services performed, a taxable transfer will not be presumed or deemed to have
						occurred. For example, if a neighborhood gardener cuts lawns and provides other
						gardening services, the rakes, shears and other hand tools used will not be
						deemed to be transferred.
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 31.5 - Persons rendering taxable services

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Imposition.
The following services rendered upon tangible
						personal property are "taxable services" whether or not tangible personal
						property is transferred in conjunction with the rendition of the services:
(1) Repairing, altering, mending, pressing,
						fitting, dyeing, laundering, drycleaning or cleaning tangible personal property
						other than clothing or footwear. Effective July 1, 1971, charges for repairing,
						altering, mending, pressing, fitting, dyeing, laundering, drycleaning or
						cleaning clothing or footwear are exempt from tax. For example, if a bookcase
						is taken to a carpenter to have a defective shelf repaired, the charge for the
						repair is subject to tax. However, if a shoe is taken to a shoe repairperson to
						have a heel fixed, the charge for the repair is not subject to tax.
(2) Applying or installing tangible personal
						property as a repair or replacement part of other tangible personal property.
						For example, if a garage employe replaces a tire on an automobile with a new
						one, the installation charge plus the price of the new tire is subject to tax.
						If the garage employe merely replaces the old tire with a spare belonging to
						the car owner, the installation charge is nevertheless subject to
						tax.
(3) Labor or services billed
						by the vendor for delivering, installing or applying tangible personal property
						sold by the vendor even if the services are contracted for separately. The
						taxability of these services is effective March 4, 1971. For example, if a
						dealer delivers and installs a gas range which the dealer has sold, the charges
						for delivery and installation, as well as the price of the range, are taxable.
						The delivery and installation charges are taxable whether or not they are
						invoiced separately from the price of the range.
(4) Inspecting, altering, cleaning,
						lubricating, polishing, repairing or waxing motor vehicles.
(5) Printing or imprinting tangible personal
						property for persons furnishing the materials used in the operations. The
						services shall be taxable whether the person for whom they are rendered or the
						person's agent supplies the materials. When the person for whom taxable
						services are rendered fails to pay the tax to the person rendering the taxable
						services, the Commonwealth may collect tax from either party.