reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › VALUATION OF CAPITAL STOCK › Section 155.24 - Valuation methods

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
In general valuation will be made in accordance with
						the following:
(1) The Department recognizes
						that no arithmetical method is of itself adequate and complete in all instances
						in determining the capital stock value. In using an arithmetical method,
						further adjustments may be needed to take into consideration other influencing
						factors, in addition to those factors set forth in §
													155.23 (relating to determination
						of valuation factors), such as the nature of the business of the taxpayer
						(industrial, manufacturing, investment, personal service, utility and so
						forth), the financial history of the taxpayer, the liquidity of the taxpayer's
						balance sheet assets, extraordinary and nonrecurring transactions and other
						pertinent factors. The amount of weight given each factor may vary depending
						upon the facts and circumstances pertinent to each taxpayer.
(2) As a general rule, since the stockholder
						equity, as determined in subsection (b)(1), is representative of the taxpayer's
						financial history, its balance sheet assets and liabilities, and the taxpayer's
						present worth as represented by the taxpayer itself, stockholder equity will
						represent the minimum value the Department will employ to determine the capital
						stock value.
(i) Generally, the stockholder
						equity will adequately reflect the capital stock value of those taxpayers whose
						operations have produced a loss or low earnings in the current tax year or in
						the preceding tax years.
(ii) If,
						for those taxpayers whose operations have produced high earnings in the current
						tax year or in the preceding tax years the stockholder equity generally does
						not adequately reflect the capital stock value. Therefore, to account for the
						effect of the high earnings, those taxpayers will also employ the Three-way and
						Five-way Methods to determine the capital stock value.
(iii) What is determined to be high or low
						earnings shall depend upon the facts and circumstances pertinent to each
						individual case.
(3) When
						the taxpayer's stock is involved in a substantial number of transactions or
						when a substantial number of the taxpayer's shares are traded or disposed
						during the taxable year, the market value of stock becomes a factor for the
						determination of the capital stock value.
(4) A copy of the taxpayer's Annual Report to
						the Securities and Exchange Commission or any other documents or reports which
						set forth the taxpayer's corporate financial statements shall be submitted to
						the Department.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › VALUATION OF CAPITAL STOCK › Section 155.25 - Capital stock value-fixed formula

Current through Register Vol. 54, No. 28, July 13, 2024
(a) For calendar years 1984, 1985 and 1986
						and fiscal years beginning in 1984, 1985 and 1986:
Capital Stock Value is the amount computed under the
						  following formula: one-half times the sum of the average net income capitalized
						  at the rate of 9 1/2% plus 75% of net worth, the algebraic equivalent of which
						  is:
.5 x (average net income/.095 + (.75) (net
						  worth)).
(b) For calendar
						year 1987 and fiscal years beginning in 1987 and each year thereafter:
Capital Stock Value is the amount computed under the
						  following formula: the product of one-half times the sum of the average net
						  income capitalized at the rate of 9 1/2% plus 75% of net worth from which
						  product shall be subtracted $50,000, the algebraic equivalent of which
						  is:
.5 x (average net income/.095 + (.75) (net worth))) -
						  50,000
The provisions of this §
														155.25 issued under section 408 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														155.21 (relating to
							 general).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › VALUATION OF CAPITAL STOCK › Section 155.29 - Minimum tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
Under the act of December 23, 1983 (P. L. 370, No.
						90) that amended Article VI of the TRC (72 P. S. §§
													601-614), applicable commencing with calendar
						year 1983 and to each year thereafter, a minimum Capital Stock or Foreign
						Franchise Tax of $75 is imposed on corporations maintaining a corporate tax
						account. The minimum tax shall be due even in those instances where the actual
						tax due under the fixed formula or alternative capital stock valuation methods
						is less than $75. The minimum tax will be prorated if the corporation does not
						have a full tax year in this Commonwealth.
(b)
Family farm
						corporations.
Corporations qualifying as family farm corporations
						under section 602.2 of the TRC (72 P. S. §
													7602.2) are not subject to the minimum
						tax.
(c)
Inactive
						corporations.
Corporations which are inactive and which have qualified
						to file and have filed an Out of Existence Affidavit (Form REV-238 CT), in the
						case of domestic corporations, or a Withdrawal Affidavit (Form REV-238 CT), in
						the case of foreign corporations, are not subject to the minimum tax commencing
						with the date the affidavit is filed. Corporations which are inactive and which
						have not filed either an Out of Existence or Withdrawal Affidavit are subject
						to the minimum tax. An inactive corporation is one which owns no property, has
						no employes, does no business and carries on no activities. See §
												151.11 (relating to
						termination).
(d)
Skeleton
						reports.
Corporations which are inactive and which have been qualified
						to file and have filed Skeleton Reports under §
												151.12 (relating to minimum
						reporting) are subject to the minimum tax.
Example.
Corporation A, an inactive
						  foreign corporation, has not filed a Withdrawal Affidavit. In order to retain
						  its corporate name, Corporation A files a Skeleton Report for the calendar year
						  1985. Corporation A, being inactive, has no net worth. Corporation A had
						  average net income of $20,000 for 1985, based on the following net income or
						  loss:
1981
$90,000
1982
$40,000
1983
($10,000)
1984
($20,000)
1985
$0
Notwithstanding the fixed formula value of Corporation
						  A of $105,263 (.5 x ($20,000/.095 + (.75)(0)), the Foreign Franchise Tax due
						  would be the minimum tax of $75.
The provisions of this §
														155.29 issued under section 408 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7408).
This section cited in 61 Pa. Code §
														155.28 (relating to capital stock
							 value methods-fixed formula).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 155 - CAPITAL STOCK TAX AND FOREIGN FRANCHISE TAX › VALUATION OF CAPITAL STOCK › Section 155.30 - Regulated investment companies

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General
. Commencing with
						the calendar year 1985 and each year thereafter, the Capital Stock or Foreign
						Franchise Tax of a regulated investment company is the sum of the following
						products:
(1) Seventy five dollars multiplied
						by the quotient, rounded to the nearest whole number, produced by dividing the
						net asset value of the regulated investment company by 1 million.
(2) The apportioned undistributed Personal
						Income Tax income of the regulated investment company multiplied by the
						Personal Income Tax rate for the same tax year.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 158 - MUTUAL THRIFT INSTITUTIONS TAX › Section 158.1 - Imposition of tax

Current through Register Vol. 54, No. 28, July 13, 2024
There is imposed on every mutual thrift institution
						located within this Commonwealth, an excise tax on the privilege of doing
						business in this Commonwealth, measured at the rate of 11 1/2% upon the annual
						net earnings or income of the institution. See section 1501 of the TRC
						(72
						P. S. §
												8501).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 158 - MUTUAL THRIFT INSTITUTIONS TAX › Section 158.2 - Mutual thrift institutions

Current through Register Vol. 54, No. 28, July 13, 2024
As used in this chapter, mutual thrift institution or
						institution means every savings bank without capital stock incorporated by or
						under the statutes of the Commonwealth, every building and loan association,
						every savings and loan association incorporated under the statutes of this
						Commonwealth, every Federal savings and loan association incorporated under the
						statutes of the United States and every savings institution having capital
						stock incorporated by or under the statutes of this Commonwealth or under the
						statutes of the United States and located within this
						Commonwealth.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 158 - MUTUAL THRIFT INSTITUTIONS TAX › Section 158.3 - Net operating loss

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
For the calendar year 1983 and fiscal year beginning
					 in 1983 and each year thereafter, a net operating loss shall be allowed as a
					 deduction and carried forward 3 succeeding years. Each prior year's loss shall
					 be carried to the earliest year to which the loss may be first carried, and if
					 not utilized in the 3 succeeding years, the loss will expire. A net operating
					 loss deduction is permitted only to the extent of net earnings or income and
					 may not be utilized in the current year to decrease net earnings or income
					 below zero or to increase a net loss. The amount of a prior year's loss may be
					 determined with respect to time limitations imposed with respect to the tax
					 report for the year in which the net operating loss is claimed as a deduction
					 against net earnings or income.
(b)
Change in ownership.
(1)
					 Under section 1052(e.1) of the TRC (72 P. S. §
													8502(e.1)), in the case of a change in the
					 ownership of a mutual thrift institution effected in a manner described in
					 section 381 or 382 of the IRC (26 U.S.C.A. §§
													381 or
					 382), a net operating loss from a
					 year prior to the change in ownership may be utilized, but subject to certain
					 limitations provided in the IRC with respect to the use of net operating losses
					 after a change in ownership shall apply for the purpose of computing the
					 portion of the net operating loss carryover recognized for purposes of the
					 Mutual Thrift Institutions Tax, whether the change is effected by purchase,
					 liquidation, acquisition of stock or reorganization. The applicable limitations
					 include limitations imposed by the IRC solely on account of a change in
					 ownership, including, but not limited to, sections 269, 318 (insofar as it
					 defines the scope of IRC 382), 381 and 382 of the IRC (26 U.S.C.A. §§
													269,
					 318,
					 381 and
					 382).
(2) Because the computation of income and
					 loss for purposes of the tax differs in many respects from the computation of
					 taxable income and loss for Federal and Pennsylvania Corporate Net Income Tax
					 purposes, the carryover of losses is not limited by the Federal consolidated
					 return regulations or section 338 of the IRC (26 U.S.C.A. §
													338), providing for the considered
					 termination of corporate existence upon the making of certain elections for
					 Federal income tax purposes.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 158 - MUTUAL THRIFT INSTITUTIONS TAX › Section 158.4 - Report and payment of tax; extensions

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A mutual thrift institution closing its
					 fiscal year upon December 31 shall annually, on or before April 15 of each
					 year, make a report to the Department, setting forth the entire amount of net
					 earnings or income or net operating loss received or accrued by the mutual
					 thrift institution from sources during the preceding year.
(b) A mutual thrift institution closing its
					 fiscal year books upon some other date shall make an annual report of net
					 earnings or income or net operating loss received or accrued during its fiscal
					 year on or before 105 days after the close of its fiscal year.
(c) A mutual thrift institution is required
					 to make payment of Tentative Tax under Article XXX of the TRC (72 P. S.
					 §§
												10001-10004). The remaining
					 portion of tax due shall be paid at the time the tax report is required to be
					 made.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 158 - MUTUAL THRIFT INSTITUTIONS TAX › Section 158.5 - Settlement and resettlement of tax

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Settlement.
Settlement
					 of tax due shall be made, so far as possible, so that notice thereof may be
					 mailed to the institution before the end of the year succeeding the year for
					 which the tax report was made. See section 801 of the FC (72 P. S. §
												801). In the case of an institution which
					 requests an extension of time in which to file its report, settlement shall be
					 made, so far as possible, so that notice thereof may be mailed to the
					 institution not later than 60 days after the end of the year succeeding the
					 year for which the tax report was made. In the case of a tax report which is
					 filed after the original due date, or if an extension has been requested, after
					 the extended due date, settlement shall be made, so far as possible, so that
					 notice thereof may be mailed to the institution before the end of the year
					 succeeding the year in which the report was filed with the
					 Department.
(b)
Resettlement.
Within 90 days after the date upon which the
					 copy of a settlement was mailed to the institution with which the settlement
					 was made, the institution or the Commonwealth may file with the Department a
					 petition for resettlement. See section 1102 of the FC (72 P. S. §
												1102). Within 2 years of a settlement or
					 resettlement, except those appealed from, the Department may resettle the tax
					 due (see section 1105 of the FC (72 P. S. §
												1105)). With respect to settlements or
					 resettlements which have been appealed from, the Department is authorized to
					 resettle under section 1105 of the FC if the Board of Finance and Revenue has
					 not acted upon taxpayer's petition. If the Board of Finance and Revenue has
					 acted upon taxpayer's petition, the Department will have authority to make a
					 resettlement, if the resettlement does not negate and is consistent with the
					 action of the Board of Finance and Revenue on an issue raised before the
					 Board.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 158 - MUTUAL THRIFT INSTITUTIONS TAX › Section 158.6 - Institutions exempt from other corporate taxes

Current through Register Vol. 54, No. 28, July 13, 2024
Institutions subject to the Mutual Thrift Institutions
						Tax are exempt from other corporate taxes imposed by the Commonwealth,
						including, but not limited to, the Corporate Net Income, Capital
						Stock-Franchise, Bank Shares and Corporate Loans Taxes.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 159 - PUBLIC UTILITY REALTY TAX › Section 159.1 - General

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Power
					 of Department to audit annual reports submitted by local taxing
					 authorities.
The Department has the power to audit the annual reports
					 submitted by local taxing authorities.
(b)
Right to contest audit or
					 distribution by Department.
Affected public utilities and local taxing
					 authorities have no statutory or administrative right to contest the audit or
					 the distribution by the Department.
(c)
Correctness of annual
					 reports.
Annual reports submitted to the Department by local taxing
					 authorities are prima facie correct, but the prima facie correctness may be
					 rebutted by evidence submitted by affected public utilities.
(d)
Rights of affected public
					 utilities.
Affected public utilities have a right to assist the
					 Department in the audit by the Department of the annual reports submitted by
					 the local taxing authorities.
(e)
Confidentiality of annual reports.
Section 731 of the FC
					 (72
					 P. S. §
												731), pertaining to confidential
					 information, does not apply to reports submitted by local taxing
					 authorities.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 159 - PUBLIC UTILITY REALTY TAX › Section 159.2 - Reports by local taxing authorities

Current through Register Vol. 54, No. 28, July 13, 2024
Cut-off date on adjustments.
The cut-off
						date on adjustments shall conform with the following:
(1) An adjustment to the assessed values, tax
					 rates, realty tax equivalent or total tax receipts shall be submitted by a
					 local taxing authority to the Department on or before August 1 of the year the
					 Department will distribute to each reporting local taxing authority its share
					 of the total realty tax equivalent.
(2) If the adjustment is submitted by a local
					 taxing authority to the Department after the August 1 cut-off date, the
					 adjustment will be incorporated into the determination by the Department in its
					 next subsequent distribution.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 160 - UTILITIES GROSS RECEIPTS TAX › Section 160.11 - Railroad gross receipts tax credit

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Availability.
Railroad
					 companies may, under section 1101.2 of the TRC (72 P. S. §
												8101.2), apply for a tax credit for tax years
					 commencing 1981 equal to 25% of the actual amount expended during the preceding
					 calendar year, starting 1980, in this Commonwealth for the maintenance and
					 improvement of rights-of-way.
(b)
Applications.
Application for credit shall be made upon Form
					 REV-1269 AS (9-80) SCHEDULE RR not later than 60 days prior to the commencement
					 of the tax year to which the credit is to be applied. Terms and conditions set
					 forth in section 1101.2 of the TRC (72 P. S. §
												8101.2) shall be met.
(c)
Adjustment of credit.
Assuming no material change in the facts between the date of application and
					 the close of the tax year to which it relates, the decision of the Secretary
					 granting or denying a claimed tax credit is final, subject only to review by
					 the Commonwealth Court in the manner prescribed by
					 2
					 Pa.C.S. §§
												701-704 (relating to
					 judicial review of Commonwealth agency action). The amount of a credit granted
					 is, of course, subject to adjustment by the Department with respect to that
					 portion of the credit application based upon estimated rather than actual
					 expenditures. The adjustment shall be made by the Department following
					 submission by the railroad company of the annual report required by section
					 1101.2 of the TRC (72 P. S. §
												8101.2)
					 showing actual expenditures for the entire year.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 161 - UNAUTHORIZED INSURANCE COMPANIES › REPORTS OF PAYMENT OF TAX › Section 161.11 - General

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The Unlicensed
						Insurers Act requires a surplus lines agent who sells insurance coverage of an
						unlicensed insurer to file a Gross Premiums Tax Report-Surplus Lines Agent
						(Form RCT-123) with the Department and the Insurance Commissioner. See section
						11(c) of the act of January 24, 1966 (P. L. 1509, No. 531) (40 P. S. §
													1006.11(c)).
(b) An insured who buys insurance from an
						unlicensed insurer, or renews the insurance, other than insurance procured
						through a surplus lines agent, is required to file a Gross Premiums Tax
						Report-For Premiums paid to Unauthorized Insurance Companies, Associations,
						Exchanges, etc. (Form RCT-122) with the Department and the Insurance
						Commissioner. See section 11(e) of the act of January 24, 1966 (P. L. 1509, No.
						531) (40 P. S. §
													1006.11(e)).
(c) From the effective date of this section
						parties filing Gross Premiums Tax Report-Surplus Lines Agent and Gross Premiums
						Tax Report-For Premiums paid to Unauthorized Insurance Companies, Associations,
						Exchanges, etc., under the requirements in subsection (a) and (b) may file both
						copies with the Department.
(d)
						Filing of both copies with the Department will be considered compliance with
						the filing requirements.
(e) Upon
						receipt the Department will transmit one copy of the report to the Insurance
						Commissioner.
(f) The Department
						will furnish one copy of the report to the Insurance Commissioner regardless of
						the number of copies actually filed by the public with the
						Department.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 162 - INSURANCE COMPANIES SUBJECT TO TAX IN THIS COMMONWEALTH › Section 162.1 - Retaliatory charge imposed on insurance companies

Current through Register Vol. 54, No. 28, July 13, 2024
(a) A taxpayer domiciled outside of this
					 Commonwealth and subject to the Insurance Premiums Tax imposed by Article IX of
					 the TRC (72 P. S. §§
												7901-7906) or the Marine Insurance Tax
					 (72
					 P. S. §§
												2281-2284) shall report to
					 the Department taxes, licenses or fees which an insurance company domiciled in
					 this Commonwealth would be required to pay to the taxpayer's state of domicile
					 or political subdivisions thereof if the Commonwealth company conducted the
					 same volume and kind of business in the taxpayer's state of domicile which the
					 taxpayer conducts in this Commonwealth.
(b) For each tax, license or fee, taxpayer
					 shall include a description of the tax, license or fee, the percentage rate or
					 amount, and items used in the determination of the base to which the rate or
					 amount is applicable. The taxpayer shall include with its Pennsylvania
					 Insurance Premiums or Marine Insurance Tax report, or as soon thereafter as
					 possible, a copy of every tax report filed by the taxpayer with its domiciliary
					 state or political subdivisions thereof. Reports which are not included in the
					 Pennsylvania Insurance Premiums Tax report shall be forwarded to the Speciality
					 Tax Division, Department of Revenue, Strawberry Square, Harrisburg,
					 Pennsylvania 17127.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 170 - CORPORATION TAX PRONOUNCEMENTS-STATEMENTS OF POLICY › NONBUSINESS INCOME › Section 170.1 - Nonbusiness income-liquidations; effect of Laurel Pipe Line decision

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The significant
						factual elements involved in
Laurel Pipe Line Co. v. Board of Fin.
						& Revenue
, 642 A.2d 472 (Pa. 1994) are as follows:
(1) The pipeline operation in issue had been
						discontinued and was idle for at least 3 years.
(2) The remaining pipeline operation of the
						company was independent from the pipeline operation that was sold, including a
						distinctive geographical separation.
(3) No proceeds of the sale were used to
						acquire any assets for future use in the business, nor were any reinvested back
						into the operations of the business.
(4) No proceeds of the sale were used to
						generate income for future use in the business operations, nor were any
						invested in financial securities that would generate income for the
						company.
(5) The entire after-tax
						net proceeds from the sale were distributed to the shareholders in the form of
						a dividend.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 170 - CORPORATION TAX PRONOUNCEMENTS-STATEMENTS OF POLICY › NONBUSINESS INCOME › Section 170.3 - Nonbusiness income-application of Canteen Corporation decision

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Canteen
						Corp. v. Commonwealth
, 818 A.2d 594 (Pa. Cmwlth. 2003) will not be
						applied to taxable years beginning after December 31, 1998.
(b) The policy implications are as follows:
(1) It is the policy of the Department of
						Revenue that the part of the decision in
Canteen Corp. v.
						Commonwealth
, 818 A.2d 594 (Pa. Cmwlth. 2003), which held that gains
						or losses from section 338 transactions produce nonbusiness income, does not
						apply to taxable years beginning after December 31, 1998, because of statutory
						amendments to the definition of "business income." In accordance with §
													153.81 (relating to elections
						under 26 U.S.C.A. §
														338) taxable income generated as a result of
						a section 338 election will be treated as business income.
(2) The part of the decision which held that
						the fictional sale of assets by the target corporation must be recognized by
						the Commonwealth will be followed so that the target corporation's sales factor
						will include, when required by law, the proceeds assigned to each asset which
						is deemed to have been sold.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article VI - Corporation Taxes › Chapter 170 - CORPORATION TAX PRONOUNCEMENTS-STATEMENTS OF POLICY › SALES APPORTIONMENT FACTOR › Section 170.11 - Documentation requirements to establish out-of-State sales after Gilmour Manufacturing decision

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In
Commonwealth v. Gilmour Manufacturing Corporation
, 573 Pa.
						143, 822 A.2d 676 (2003), the Supreme Court held that for purposes of
						calculating its Pennsylvania sales apportionment factor for the Corporate Net
						Income Tax, a Pennsylvania corporation is not required to include in the
						numerator sales of goods to out-of-State buyers who retrieve the goods at the
						seller's place of business in this Commonwealth and then transport the goods
						out of this Commonwealth. The Court determined that section 401(3)2(a)(16) of
						the Tax Reform Code (72 P. S. §
													7401(3) 2(a)(16)) mandated
						that conclusion with regard to the "dock sales," regardless of whether the
						buyer personally retrieves the item using his own means of transport or by
						engaging the services of a for-hire motor carrier. The Court ruled that the
						Department regulation on the subject, §
												153.26(b)(2)
						(relating to sales factor), was inconsistent with the statutory requirement
						insofar as it required the inclusion of the sales in the numerator of the
						taxpayer's sales factor.
(b) The
						Court's holding excludes from the Pennsylvania portion of the apportionment
						factor only sales to out-of-State buyers who transport the goods out of this
						Commonwealth. Sales to purchasers who do not transport the goods outside of
						this Commonwealth for use or resale are Pennsylvania sales for purposes of
						calculating the sales factor numerator. Thus, in the absence of sufficient
						evidence establishing an ultimate destination to an out-of-State location,
						sales of goods in which delivery is made to the buyer at a Pennsylvania
						location must be reported as Pennsylvania sales and included in the numerator
						of the Pennsylvania sales apportionment fraction.
(c) Documentation sufficient to establish an
						out-of-State sale includes:
(1) Bills of
						lading of the carrier establishing that the goods were destined for or
						delivered to an out-of-State location.
(2) Delivery instructions from the purchaser
						to the carrier establishing that the goods were to be transported out of this
						Commonwealth.
(3) Warehouse
						receipts of the purchaser showing that the goods were delivered to an
						out-of-State location.
(4) Invoices
						issued by the taxpayer/seller to the purchaser showing an out-of-State delivery
						address.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 301 - GENERAL PROVISIONS › Section 301.1 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The following words and terms, when used in this subpart,
					 have the following meanings, unless the context clearly indicates otherwise:
Act
-The Liquid Fuels Tax Act
					 (72
					 P. S. §§
											2611a-2611z).
Board
-Board of Finance and Revenue of this
					 Commonwealth.
Bureau
-The Bureau of Liquid Fuels Tax of
					 the Department.
Political subdivision
-A county, city,
					 borough, incorporated town, township, school district, vocational school
					 district and county institution district.
Tax
or
liquid fuels
					 tax
-The tax imposed upon liquid fuels in this Commonwealth as set
					 forth in the act.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › GENERAL PROVISIONS › Section 303.1 - Purpose

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter is promulgated by the Board and the
						Department in order to effect refunds of liquid fuels tax to political
						subdivisions as set forth in the act, in accordance with the opinion of the
						Attorney General of the Commonwealth of July 28, 1970.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › REFUND PROCEDURE › Section 303.11 - Refund

Current through Register Vol. 54, No. 28, July 13, 2024
The refund of the tax on liquid fuels to political
						subdivisions apply only to the political subdivisions who have not been granted
						exemption of the tax by their registered distributor at the time of
						purchase.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › REFUND PROCEDURE › Section 303.12 - Claims

Current through Register Vol. 54, No. 28, July 13, 2024
Claims for refunds by political subdivisions shall be
						made annually, ending December 31, and shall be submitted to the Board not
						later than March 31, of the succeeding year: and the Board will refuse to
						consider a claim received or postmarked after that date.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › REFUND PROCEDURE › Section 303.13 - Form

Current through Register Vol. 54, No. 28, July 13, 2024
Claims for reimbursement of the tax shall be made upon a
						form furnished by the Board and shall include the name and address of the
						claimant, the period of time and the number of gallons of liquid fuels used for
						which reimbursement is claimed, and a descriptive list of the automotive
						equipment of the political subdivision which consumed the fuel. The claim shall
						contain verification or certification that the liquid fuels for which
						reimbursement is claimed have been used only by the equipment of the political
						subdivision and that no part of such claim has been paid except as
						stated.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › REFUND PROCEDURE › Section 303.14 - Declaration

Current through Register Vol. 54, No. 28, July 13, 2024
The claim shall contain a declaration that it is true and
						correct to the best of the knowledge of the claimant and shall be signed by a
						responsible official of the political subdivision.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › RECORDS, EVIDENCE AND FILING FEES › Section 303.21 - Receipts

Current through Register Vol. 54, No. 28, July 13, 2024
Every claim shall be accompanied by receipts indicating
						that the liquid fuels tax was paid on the liquid fuels for which reimbursement
						is claimed.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › RECORDS, EVIDENCE AND FILING FEES › Section 303.22 - Satisfaction

Current through Register Vol. 54, No. 28, July 13, 2024
The claimant shall satisfy the Board that he has paid the
						tax and that the liquid fuels have been consumed by the political
						subdivision.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › RECORDS, EVIDENCE AND FILING FEES › Section 303.23 - Filing fee

Current through Register Vol. 54, No. 28, July 13, 2024
The Board will deduct the sum of $1.50 which shall be
						considered as a filing fee for every claim for reimbursement granted. The
						filing fees are specifically appropriated to the Board and to the Department
						for expenses incurred in the administration of the reimbursement provision of
						this chapter.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › RECORDS, EVIDENCE AND FILING FEES › Section 303.24 - Investigation

Current through Register Vol. 54, No. 28, July 13, 2024
The Board will refer to the Department for investigation
						a claim for reimbursement with which it is not satisfied, and it will be the
						duty of the Department to investigate the claim and report to the
						Board.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 303 - TAX REFUNDS FOR POLITICAL SUBDIVISIONS › RECORDS, EVIDENCE AND FILING FEES › Section 303.25 - Affidavit

Current through Register Vol. 54, No. 28, July 13, 2024
The Board will have the right, in order to further
						substantiate the credit claim, to request a sworn affidavit from the vendor
						stating that it has sold the specific number of gallons of motor fuel to the
						claimant and that the liquid fuels tax has been paid on the motor
						fuel.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 305 - LICENSED DEALER-USERS › GENERAL › Section 305.1 - Requirements

Current through Register Vol. 54, No. 28, July 13, 2024
A licensed dealer-user shall keep complete and accurate
						records of tax paid or tax free fuels received within this Commonwealth from
						any and all sources. Fuels include diesel fuel, fuel oil, kerosene, tractor
						fuels, jet fuels, liquefied gases, but not gasoline. Records shall be kept of
						the following operations and retained for at least 2 years; failure on the part
						of a dealer-user to comply with the act and this subpart shall result in
						suspension or revocation of dealer-user licenses:
(1) A physical inventory shall be taken of
					 fuels on hand at the start of business on the first day of each month. A record
					 shall be kept of tank measurements and the gallons, as per calibration charts
					 which are required to be in dealer-user possession for each storage
					 facility.
(2) A record of fuels
					 received shall be kept showing the gallons received, date, name of supplier and
					 address. Purchase invoices and the like shall be available to cover all
					 receipts.
(3) A record shall be
					 kept of all taxable or nontaxable fuels sold or used. Serially numbered sales
					 tickets of unlimited sequence bearing dealer-user printed name and address
					 shall be made out for each withdrawal showing date, customer name and address,
					 gallons used, sold or delivered. Tickets shall be prepared, at least in
					 duplicate, one copy given to the customer and the other copy retained in files
					 in numerical order. Tickets shall be accounted for and the fuel use tax shall
					 be shown separately on all that cover taxable sales or use of fuels. Tickets
					 covering disbursements of fuels not subject to the fuel use tax shall bear an
					 explanation of the use. Tax will be collected on fuels delivered to customers,
					 including other licensed dealer-users, by the dealer-user delivering or placing
					 the fuel into fuel supply tanks of motor vehicles. In no event shall it be
					 permissible to collect the fuel use tax on fuels delivered to customers in any
					 other manner.
(4) A daily record
					 shall be kept of meter readings of pumps dispensing fuels. Fuels metered, as
					 well as any nonmetered gallons, shall be properly accounted for and supported
					 by serially numbered sales tickets.
(5) A stock control shall be prepared for
					 each calendar month showing opening physical inventory, receipts, closing
					 physical inventory, consumption, disbursements and stock losses or
					 gains.
(6) An adequate record of
					 cash received and paid out shall be kept for the normal conduct of the business
					 covered.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 305 - LICENSED DEALER-USERS › MERGER, CREATION OR DISCONTINUANCE OF ACTIVITIES › Section 305.11 - General

Current through Register Vol. 54, No. 28, July 13, 2024
Each change effected in corporate structure by corporate
						merger, creation of a new corporation or discontinuation of corporation
						activities, must be reported to the Department. This section provides for the
						method of reporting according to the type of activity undertaken by a
						corporation or corporations.
This section cited in 61 Pa. Code §
													305.12 (relating to
						  definitions).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 305 - LICENSED DEALER-USERS › MERGER, CREATION OR DISCONTINUANCE OF ACTIVITIES › Section 305.12 - Definitions

Current through Register Vol. 54, No. 28, July 13, 2024
The definitions set forth in proposed Regulation 9 at 8
						Pa.B. 3051 (November 4, 1978) applies to §§
											305.11-305.15 (relating to merger,
						creation or discontinuance of activities).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 305 - LICENSED DEALER-USERS › MERGER, CREATION OR DISCONTINUANCE OF ACTIVITIES › Section 305.13 - Merger

Current through Register Vol. 54, No. 28, July 13, 2024
(a) When two or
					 more corporations licensed for fuel use tax purposes are merged into a single
					 corporation, the surviving corporation or new corporate entity shall report to
					 the Department concerning the status of the merged corporation or corporations
					 with respect to fuel use tax which may be due the Commonwealth from locations
					 at which the merged corporation or corporations maintained corporate
					 operations.
(b) The corporation
					 which is merged shall report the merger to the Department in writing within 5
					 days of the date of merger. The notice shall contain the name and address of
					 the purchaser or transferee.
(c) It
					 shall be the duty of a purchaser of a corporation or of the resulting new
					 corporate entity to surrender to the Department a fuel use tax license which
					 had been issued to the corporation and to pay taxes, interest, penalties, fees
					 and fines which are due from the corporation as of the date of merger, within
					 10 days of the date of the transaction.
(d) For the purpose of determining the amount
					 of fuel use tax payable by the surviving corporation or new corporate entity,
					 it shall apply for a fuel use tax license and it shall report on or before the
					 next to the last business day of each month, upon forms prescribed by the
					 Department and under oath or affirmation, the amount of fuel used at each of
					 the corporation's business locations during the preceding month.
(e) The surviving corporation or new
					 corporate entity shall include with each report payment of the tax due on fuel
					 used during the preceding month. Fuel not accounted for will be deemed to have
					 been used for a taxable purpose.
(f) If the report is filed and the tax paid
					 on time, a discount of 2.0% of the gross amount of tax shall be allowed to the
					 corporation filing the report and remitting the tax.
This section cited in 61 Pa. Code §
													305.12 (relating to
						  definitions).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 305 - LICENSED DEALER-USERS › MERGER, CREATION OR DISCONTINUANCE OF ACTIVITIES › Section 305.14 - Creation

Current through Register Vol. 54, No. 28, July 13, 2024
If a new corporation is created which is subject to the
						provisions of the Fuel Use Tax Act (72 P. S. §§
												2614.1-2614.24), it shall apply for a license
						on forms prescribed by the Department and report and remit tax upon fuel used
						at each of the corporation's business locations on or before the next to the
						last business day of each month. The report shall be upon forms prescribed by
						the Department and made under oath or affirmation. If the report is filed and
						the tax paid on time, a discount of 2% of the gross amount of tax shall be
						allowed to the corporation filing the report and remitting the
						tax.
This section cited in 61 Pa. Code §
													305.12 (relating to
						  definitions).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 305 - LICENSED DEALER-USERS › MERGER, CREATION OR DISCONTINUANCE OF ACTIVITIES › Section 305.15 - Dissolution

Current through Register Vol. 54, No. 28, July 13, 2024
If a corporation licensed for fuel use tax purposes is
						dissolved without its merger with another corporation, it shall notify the
						Department in writing within 5 days after the discontinuation of its corporate
						activities. The notice shall contain the date of discontinuation. Within 10
						days after the discontinuance the licensee shall surrender to the Department
						any fuel use tax license under which it had operated and pay taxes, interest,
						penalties and fines, which are due by it.
This section cited in 61 Pa. Code §
													305.12 (relating to
						  definitions).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 307 - PROOF OF AUTHORITY › Section 307.1 - Renewal requirements

Current through Register Vol. 54, No. 28, July 13, 2024
Liquid fuels permits, certificates of authority, powers of
					 attorney and liquid fuels tax bonds shall be renewed annually, and applications
					 for liquid fuels permits shall incorporate or be accompanied by up-to-date and
					 sworn or certified financial statements showing resources and liabilities of
					 the applicant.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 307 - PROOF OF AUTHORITY › Section 307.2 - Signing

Current through Register Vol. 54, No. 28, July 13, 2024
The Department requires that the application of a
					 corporation for liquid fuels permit be signed by the president or vice
					 president and the secretary or assistant secretary or treasurer or assistant
					 treasurer of the corporation. If signed by any other officer of the
					 corporation, a certificate of the secretary shall accompany the application
					 showing the authority of the officer to bind the corporation by the officer's
					 act. The signature and title of the officer should be placed on the two lines
					 immediately beneath the line provided for the signature of the corporation on
					 the application.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 307 - PROOF OF AUTHORITY › Section 307.3 - Additional names

Current through Register Vol. 54, No. 28, July 13, 2024
The Department requires that every corporate applicant for
					 a liquid fuels permit give under line six of the application the name of the
					 executive officer charged with the duty of filing liquid fuels tax reports,
					 either in accordance with the minutes adopted by a board of directors meeting,
					 or as set forth in the bylaws of the corporation.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 307 - PROOF OF AUTHORITY › Section 307.4 - Authorization of persons to file

Current through Register Vol. 54, No. 28, July 13, 2024
If a corporation wishes to authorize an employe or agent to
					 file liquid fuels tax reports, the name of the employe or agent shall be shown
					 under line six of the application, and evidence of authority in the form of a
					 certified copy of the minutes of the board of directors, by which authority to
					 sign and file reports was granted, shall accompany the application for liquid
					 fuels permit, but this may not be construed in any way to relieve the officers
					 of the corporation of the responsibilities imposed by the
					 act.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart C - Liquid Fuels Tax › Chapter 307 - PROOF OF AUTHORITY › Section 307.5 - Partnership or association

Current through Register Vol. 54, No. 28, July 13, 2024
In the case of a partnership or association, the
					 application for liquid fuels permit and liquid fuels tax reports may be filed
					 by any one of the partners or members.