SB 1041 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax.

PRIOR PRINTER'S NO.

1546 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1696 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

WARD, LANGERHOLC, PITTMAN, REGAN, BARTOLOTTA, SCAVELLO,AUMENT, MASTRIANO,FEBRUARY J.19, 2020ARD, STEFANO, ARGALL, BAKER AND REFERRED TO FINANCE, FEBRUARY 19, 2020 AN ACT Amending 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 taxes thereon;

WARD,providing STEFANO,procedures ARGALL,for BAKER AND AUMENT, FEBRUARY 19, 2020 SENATOR HUTCHINSON, FINANCE, AS AMENDED, MAY 11, 2020 AN ACT Amending the actpayment, 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, administration and enforcement thereof;

conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations penalties," in sales and otheruse entities;tax, further providing for definitions.

prescribingThe crimes,General offensesAssembly andof penalties,"the inCommonwealth salesof andPennsylvania usehereby tax,enacts furtheras providingfollows: for definitions EXCLUSIONS FROM TAX.

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

Section 201(k)(8) and (o)(4) of the act of March <-- 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, are amended to read:

For the purpose of this subclause, the 20200SB1041PN169620200SB1041PN1546 - 2 - "direct use" of a multipurpose agricultural vehicle shall include repairing and maintaining buildings (including houses, garages, barns, stables, greenhouses, mushroom houses and storehouses), fences and stanchions permanently affixed to real estate, as well as prefarming and postfarming activities as defined in 61 Pa.

The exclusions provided in paragraphs (A), (B), (C) and (D) shall not apply to any vehicle required to be registered under 20200SB1041PN169620200SB1041PN1546 - 3 - The Vehicle Code, except those vehicles used directly by a public utility engaged in business as a common carrier;

* * * 20200SB1041PN169620200SB1041PN1546 - 4 - (o) "Use." * * * (4) The obtaining by a purchaser of the service of repairing, altering, mending, pressing, fitting, dyeing, laundering, drycleaning or cleaning tangible personal property other than wearing apparel or shoes or applying or installing tangible personal property as a repair or replacement part of other tangible personal property other than wearing apparel or shoes, whether or not the services are performed directly or by any means other than by means of coin-operated self-service laundry equipment for wearing apparel or household goods, and whether or not any tangible personal property is transferred to the purchaser in conjunction therewith, except such services as are obtained in the construction, reconstruction, remodeling, repair or maintenance of real estate:

The term "farming" shall include the propagation and raising of 20200SB1041PN169620200SB1041PN1546 - 5 - ranch-raised furbearing animals and the propagation of game birds for commercial purposes by holders of propagation permits issued under 34 Pa.C.S.

(2) All operations prior to the transport of the harvested product necessary for the removal of timber or forest products from the site, in-field processing of trees into logs or chips, complying with environmental protection and safety requirements applicable to the harvesting of forest products, loading of forest products onto highway vehicles for transport to storage or processing facilities and postharvesting site reclamation, 20200SB1041PN169620200SB1041PN1546 - 6 - including those activities necessary to improve timber growth or ensure natural or direct reforestation of the site.

The exclusion provided in subparagraph (iii) shall not apply to (A) construction materials, supplies or equipment used to construct, reconstruct, remodel, repair or maintain facilities not used directly by the purchaser in the production, delivering or rendition of public utility service or (B) tools and 20200SB1041PN169620200SB1041PN1546 - 7 - equipment used but not installed in the maintenance of facilities used directly in the production, delivering or rendition of a public utility service.

* * * SECTIONSection 1.2.

SECTION 204 OF THE ACT OF MARCH 4, 1971 (P.L.6, <-- NO.2), KNOWN AS THE TAX REFORM CODE OF 1971, IS AMENDED BY ADDING A PARAGRAPH TO READ:

SECTION 204.

EXCLUSIONS FROM TAX.--THE TAX IMPOSED BY SECTION 202 SHALL NOT BE IMPOSED UPON ANY OF THE FOLLOWING:

* * * (74) THE SALE AT RETAIL OR USE OF A "MULTIPURPOSE AGRICULTURAL VEHICLE," AS DEFINED IN 75 PA.C.S.

§ 102 (RELATING TO DEFINITIONS), IN ACCORDANCE WITH 75 PA.C.S.

§ 1302(17) (RELATING TO VEHICLES EXEMPT FROM REGISTRATION) OPERATED FOR THE BENEFIT OF OR PURSUANT TO THE OPERATION OF A FARM OWNED OR OPERATED BY THE OWNER OF THE VEHICLE OR A BUSINESS WHOSE ENTERPRISES AND ACTIVITIES ARE CONSIDERED PART OF FARMING.

FOR THE PURPOSE OF THIS SUBSECTION, THE USE OF A MULTIPURPOSE AGRICULTURAL VEHICLE IN FARMING INCLUDES REPAIRING AND MAINTAINING BUILDINGS, INCLUDING HOUSES, GARAGES, BARNS, STABLES, GREENHOUSES, MUSHROOM HOUSES AND STOREHOUSES, FENCES AND STANCHIONS PERMANENTLY AFFIXED TO REAL ESTATE, AS WELL AS TRANSPORTING FARMING PERSONNEL, COLLECTING, CONVEYING OR TRANSPORTING PROPERTY TO BE USED IN FARMING, AND TRANSPORTING OR CONVEYING THE FARM PRODUCT AFTER THE FINAL FARMING OPERATION 20200SB1041PN1696 - 8 - WHICH INCLUDES BUT DOES NOT EXTEND BEYOND THE OPERATION OF PACKAGING FOR THE ULTIMATE CONSUMER AND STORAGE.

Section 2.

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