HB 994 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in gross receipts tax, further providing for imposition of tax.

PRIOR PRINTER'S NO.

1155 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

2909 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

HARRIS,HARRIS RYAN AND PHILLIPS-HILL,RYAN, MARCH 28, 2017 ASREFERRED REPORTEDTO FROM COMMITTEE ON FINANCE, HOUSEMARCH OF28, REPRESENTATIVES,2017 AS AMENDED, JANUARY 23, 2018 AN ACT AmendingAmeact the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing collection,taxes administrationthereon; and enforcement thereof;

providing procedures for the payment, collection, administration and enforcement thereof;

prescribing crimes, offenses and penalties,"imposition inof grosstax.ss receipts tax, further providing for impositionThe General Assembly of tax.the Commonwealth of Pennsylvania hereby enacts as follows:

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1101(a)(3) 1101(A)(2) AND (3) of the act <-- of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, is ARE amended to read:

<-- Section 1101.

* * * (2)(3) TELEGRAPHmobile ORtelecommunications TELEPHONEservices MESSAGES[messages] TRANSMITTED, WHOLLYas <--defined WITHINin THISsection STATE201(aaa), ANDsourced TELEGRAPHto ORthis TELEPHONECommonwealth MESSAGESbased TRANSMITTEDon INthe INTERSTATEplace COMMERCEof WHEREprimary SUCHuse MESSAGESstandard ORIGINATEset 20170HB0994PN2909forth -in 2the -Mobile OR20170HB0994PN1155 TERMINATE- IN2 THIS- STATETelecommunications ANDSourcing THEAct CHARGES(4 FORU.S.C. SUCH MESSAGES ARE BILLED TO A SERVICE ADDRESS IN THIS STATE, EXCEPT GROSS RECEIPTS DERIVED FROM:

(I) THE SALES OF ACCESS TO THE INTERNET, AS SET FORTH IN ARTICLE II, MADE TO THE ULTIMATE CONSUMER;

AND (II) THE SALES FOR RESALE TO PERSONS, PARTNERSHIPS, ASSOCIATIONS, CORPORATIONS, OR POLITICAL SUBDIVISIONS SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE UPON GROSS RECEIPTS DERIVED FROM SUCH RESALE OF TELECOMMUNICATIONS SERVICES, INCLUDING:

(A) TELECOMMUNICATIONS EXCHANGE ACCESS TO INTERCONNECT WITH A LOCAL EXCHANGE CARRIER'S NETWORK;

(B) NETWORK ELEMENTS ON AN UNBUNDLED BASIS;

AND (C) SALES OF TELECOMMUNICATIONS SERVICES TO INTERCONNECT WITH PROVIDERS OF MOBILE TELECOMMUNICATIONS SERVICES;

AND (III) THE SALES OF TELEPHONES, TELEPHONE HANDSETS, MODEMS, TABLETS AND RELATED ACCESSORIES, INCLUDING CASES, CHARGERS, HOLSTERS, CLIPS, HANDS-FREE DEVICES, SCREEN PROTECTORS AND BATTERIES;

AND (3) mobile telecommunications services [messages] , as <-- defined in section 201(aaa), sourced to this Commonwealth based on the place of primary use standard set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C.

[and]and <-- (ii) the sales for resale to persons, partnerships, associations, corporations or political subdivisions subject to the tax imposed by this article upon gross receipts derived from such resale of mobile telecommunications services, including sales of mobile telecommunications services to interconnect with 20170HB0994PN2909 - 3 - providers of telecommunications services[.];services.

AND <-- (III) THE SALES OF TELEPHONES, TELEPHONE HANDSETS, MODEMS, TABLETS AND RELATED ACCESSORIES, INCLUDING CASES, CHARGERS, HOLSTERS, CLIPS, HANDS-FREE DEVICES, SCREEN PROTECTORS AND BATTERIES.

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