Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article II - Sales and Use Tax › Chapter 47 - RENTALS › Section 47.18 - Totalizator equipment

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:
Corporation
-A corporation licensed under
						section 203 of the Race Horse Industry Reform Act (4 P. S. §
													325.203).
Prevailing market price
-The price which
						the equipment will bring if offered for sale in the open market at the time the
						equipment is brought into this Commonwealth.
Resident
-A natural person, partnership,
						corporation, association or other entity which is domiciled, maintains a place
						of business or is authorized to do business in this Commonwealth.
Totalizator company
-A business providing
						electronic totalizator equipment to a corporation.
(b)
Scope.
A totalizator
					 company shall conform with the following:
(1)
Charges to a corporation.
A totalizator company which provides
					 electronic totalizator equipment to a corporation in connection with parimutuel
					 betting is deemed to be rendering a nontaxable service. Therefore, charges made
					 by the totalizator company to a corporation in connection with rendering its
					 nontaxable service is exempt from sales and use taxes.
(2)
Purchases by a resident
					 totalizator company.
A totalizator company is considered to be the
					 consumer of equipment, materials or supplies, and services thereto, which it
					 uses in the rendition of its nontaxable service. Accordingly, a totalizator
					 company shall pay sales or use tax of this Commonwealth in accordance with this
					 subsection:
(i)
Purchases involving
					 delivery within this Commonwealth.
A purchase of taxable property and
					 services which involve delivery within this Commonwealth is subject to sales or
					 use tax at the effective rate of tax upon the full purchase price, including
					 charges for delivery. Credit will not be granted for taxes illegally imposed
					 and paid to states other than the Commonwealth.
(ii) Purchases involving delivery outside of
					 this Commonwealth but later brought into this Commonwealth:
(A)
Purchases within 6
					 months.
Property, including property upon which a taxable service has
					 been performed, which has been brought into this Commonwealth within 6 months
					 of the date of purchase or service is subject to tax at the effective rate upon
					 the original purchase price, including charges for delivery. See subsection
					 (c).
(B)
Purchases beyond 6
					 months.
Property, including property upon which a taxable service has
					 been performed, which has been brought into this Commonwealth beyond 6 months
					 of the date of purchase or service, is subject to tax at the effective rate of
					 tax upon the original purchase price of the property or service including
					 charges for delivery.
(3)
Purchases by nonresident
					 totalizator company.
Notwithstanding subsection (b), when a
					 nonresident totalizator company brings property, including property upon which
					 a taxable service has been performed, into this Commonwealth in connection with
					 the establishment of a permanent residence, the totalizator company shall pay
					 use tax of the Commonwealth with respect to the property in accordance with
					 this subsection:
(i)
Purchases within
					 6 months.
Property, including property upon which a taxable service
					 has been performed, which has been brought into this Commonwealth within 6
					 months of the date of purchase, is subject to tax at the effective rate on the
					 original purchase price, including charges for delivery.
(ii)
Purchases beyond 6
					 months.
Property, including property upon which a taxable service has
					 been performed, which has been brought into this Commonwealth beyond 6 months
					 of the date of purchase, is exempt from Commonwealth sales or use
					 tax.
(4)
Fair
					 rental value.
There is no authority under the TRC by which a
					 totalizator company may pay tax upon the basis of the fair rental value of
					 property which is subject to tax.