Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 46 - CONSTRUCTION CONTRACTORS › Section 46.7 - Nonresident contractors

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Definitions.
The following words and terms, when used in this
					 section, have the following meanings, unless the context clearly indicates
					 otherwise:
Construction equipment and
						supplies
-Property, such as cranes, dozers, graders, vehicles, hand
						tools, shoring lumber, lubricants, administrative supplies, and the like, which
						a construction contractor uses but does not install so as to become a part of
						the facility constructed within this Commonwealth. See §§
												31.11-31.16 (relating to construction
						contractors).
Prevailing market price
-The price which
						an item will bring if offered for sale in the open market at the time and place
						of the taxable use within this Commonwealth.
(b)
Construction equipment and
					 supplies purchased within this Commonwealth.
An item of construction
					 equipment or supply purchased or leased and delivered within this Commonwealth
					 by a nonresident contractor is subject to sales tax upon its purchase price.
					 See § 33.2 (relating to scope).
(c)
Construction equipment and
					 supplies purchased outside of this Commonwealth and used but not consumed in
					 this Commonwealth.
Construction equipment and supplies purchased
					 outside of this Commonwealth by a non-resident construction contractor and
					 which are used but not consumed in this Commonwealth for 7 days or less are
					 exempt from tax. These purchases are subject to tax when the property is used
					 in this Commonwealth beyond 7 days.
(d)
Construction equipment and
					 supplies purchased outside of this Commonwealth and consumed in this
					 Commonwealth.
Construction equipment and supplies purchased outside of
					 this Commonwealth by a nonresident contractor and consumed in this Commonwealth
					 in the performance of a construction contract are subject to tax regardless of
					 the length of time they are used in this Commonwealth.
(e)
Tax payment.
When a
					 nonresident construction contractor purchases or leases equipment and supplies
					 from a supplier in this Commonwealth and delivery of the property is made
					 within this Commonwealth, sales tax shall be paid upon the full purchase price
					 to the supplier. In all other cases of taxable purchases or use of property
					 within this Commonwealth, the nonresident contractor shall remit and pay tax
					 directly to the Department. Contractors may obtain a use tax license number
					 with which to remit the tax to the Department.
(f)
Use tax base.
Use tax on
					 taxable property shall be reported by the nonresident contractor either on the
					 original purchase price paid or on the prevailing market price if the
					 nonresident contractor purchased the equipment or supplies 6 months or longer
					 prior to its first taxable use in this Commonwealth.
(g)
Fair rental value.
Effective March 4, 1971, a nonresident construction contractor is no longer
					 permitted to pay tax on the basis of fair rental value.
(h)
Credit against tax.
A
					 construction contractor may take credit against tax owed to the Commonwealth
					 with respect to individual items of construction equipment and supplies used
					 within this Commonwealth equal to the tax paid to another state upon the
					 individual items of equipment by reason of a tax similar to the tax imposed by
					 the Commonwealth. Credit will not be granted unless the other state grants
					 similar tax relief to persons who have paid tax to the Commonwealth. A listing
					 of the states granting similar relief may be obtained from the Department,
					 Attention: Legal Bureau, upon request.
This section cited in 61 Pa. Code §
													46.9 (relating to financial
						  institution security equipment).