Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 44 - FARMING AND DAIRYING › Section 44.2 - Cooperative agricultural associations

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
General.
The provisions
					 of this section were repromulgated on July 14, 1973 as a result of the
					 Commonwealth Court decision in
Lehigh Valley Cooperative Farmers v.
					 Commonwealth
, 8 Pa. Commw. 18, 305 A.2d 908 (1973), which held that
					 cooperative agricultural associations required to pay corporate net income tax
					 under the Co-operative Agricultural Association Corporate Net Income Tax Act
					 (72
					 P. S. §§
												3420-21-3420-30) are
					 exempt upon their purchases of tangible personal property under the Tax Act of
					 1963 for Education (72 P. S. §§
												3403-1-3403-605 (repealed 1971)). The
					 provisions of this section also apply under the TRC. This section has been
					 revised to reflect the amendment to section 3 of the Co-operative Agricultural
					 Association Corporate Net Income Tax Act (72 P. S. §
												3420-23) by section 1 of the act of July 1,
					 1978 (P. L. 591, No. 112) (72 P. S. §
												3420-23) which requires cooperative
					 agricultural associations to pay sales and use taxes on registered vehicles
					 beginning August 31, 1978.
(b)
Sales and use tax exemption.
Cooperative agriculture
					 associations which are required to pay corporate net income tax under the
					 provisions of the Cooperative Agriculture Association Corporate Net Income Tax
					 Act (72 P. S. §§
												3420-21-3420-30) are exempt from the payment
					 of sales and use tax on their purchases of tangible personal property. The
					 exemption does not apply to the purchase, lease, repair or maintenance service
					 of any motor vehicle required to be registered under
					 75 Pa.C.S. §§
												101-9910 (relating to Vehicle Code). The
					 exemption does not inure to a construction contractor who, under a construction
					 contract with a cooperative agriculture association, is required to purchase
					 materials, supplies or equipment which are installed so as to become part of
					 the real estate under a construction contract.
(c)
Hotel Occupancy Tax
					 exemption.
Cooperative agriculture associations which are required to
					 pay corporate net income tax under the provisions of the Cooperative
					 Agriculture Association Corporate Net Income Tax Act (72 P.S.
					 §§
												3420-21-3420-30) are exempt from
					 the payment of hotel occupancy tax. The exemption applies only when the billing
					 for the rental of the room is charged to and paid directly by the association.
					 Hotel Occupancy Tax charged to an employe of the association who rents a room,
					 even though he will later be reimbursed by the association.
(d)
Procedure for claiming
					 exemption.
Cooperative agriculture associations may claim an exemption
					 upon their purchase of tangible personal property by tendering to their
					 supplier a properly executed blanket exemption certificate reflecting the
					 following language on the face thereof: "Property and/or services are exempt
					 from tax by virtue of the provisions of section 3 of the Co-operative
					 Agriculture Association Corporate Net Income Tax Act" (72 P. S.
					 §§
												3420-21-3420-30). A blanket
					 exemption certificate once tendered to a supplier may be used in lieu of the
					 payment of tax on all future purchases.
(e)
Cooperative agriculture
					 associations engaged in the business of making taxable sales.
Cooperative agriculture associations which are engaged in the business of
					 selling taxable tangible personal property or services are required to be
					 licensed by the Department for the purpose of collecting and remitting sales
					 tax upon any sales which they make. The fact that a cooperative agriculture
					 association is exempt from tax upon property which they use or consume in their
					 activities does not exempt them from the responsibility as vendors under the
					 TRC.
This section cited in 61 Pa. Code §
													47.17 (relating to lease or rental
						  of vehicles and rolling stock); and 61 Pa. Code §
													58.13 (relating to carpeting and
						  other floor coverings).