(a)
Definitions. The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise:
Prebuilt housing-Housing which
qualifies either as:
(i) Manufactured
housing, including mobile homes, which bears the label required by and referred
to in the Manufactured Housing Construction and Safety Standards Authorization
Act (35 P. S. §§
1656.1-1656.9).
(ii) Industrialized housing as defined in the
Industrialized Housing Act (35 P. S. §§
1651.1-1651.12).
(iii) The term includes all components or
accessories transferred at the time of the sale of the prebuilt housing.
Prebuilt housing builder-A person,
including a prebuilt housing manufacturer, that makes a prebuilt housing sale
to a prebuilt housing purchaser.
Prebuilt housing manufacturer-A person
who manufactures prebuilt housing for sale to a prebuilt housing builder or
prebuilt housing purchaser.
Prebuilt housing manufacturer's selling
price-
(i) The total
value of anything paid or delivered or promised to be paid or delivered,
whether it be money or otherwise, by a prebuilt housing builder to a prebuilt
housing manufacturer, for prebuilt housing, add-ons, insurance, seals,
deposits, dues, optional equipment and similar charges whether or not the
charges are separately stated on one or more purchase agreements.
(ii) The prebuilt housing manufacturer's
selling price does not include amounts representing delivery charges, erection
charges or set-up fees.
Prebuilt housing purchaser-A person
who purchases prebuilt housing in a transaction and who intends to occupy the
unit for residential purposes in this Commonwealth.
Prebuilt housing sale-A sale of
prebuilt housing to a prebuilt housing purchaser, including a sale to a
landlord, without regard to whether the person making the sale is responsible
for installing the prebuilt housing or whether the prebuilt housing becomes
real estate on installation. Temporary installation by a prebuilt housing
builder for display purposes of a unit held for resale will not be considered
occupancy for residential purposes.
Purchase price-The purchase price of
prebuilt housing shall be 60% of the prebuilt housing manufacturer's selling
price. A prebuilt housing manufacturer of prebuilt housing that elects to
precollect tax from the prebuilt housing builder shall have the option to
collect tax on 60% of the prebuilt housing manufacturer's selling price or on
100% of the actual cost of the supplies and materials used in the manufacture
of prebuilt housing.
Used prebuilt housing-Prebuilt housing
that was previously subject to a prebuilt housing sale to a prebuilt housing
purchaser.
(b)
Imposition of tax.
(1)
Prebuilt housing builder sales. A prebuilt housing builder is
required to pay tax on his purchase price of prebuilt housing sold to a
prebuilt housing purchaser within this Commonwealth, if the prebuilt housing
builder has not paid the applicable tax to the prebuilt housing manufacturer.
The prebuilt housing builder is required to pay tax without regard to whether
the prebuilt housing is sold as tangible personal property or as real estate.
The prebuilt housing builder's written contract with the prebuilt housing
purchaser shall clearly indicate that the prebuilt housing builder paid
applicable tax.
(2)
Trade-in. The value of a trade-in by a prebuilt housing
purchaser to a prebuilt housing builder in connection with the purchase of
housing may not be used to reduce the purchase price on which the prebuilt
housing builder is required to pay tax.
(3)
Used prebuilt housing.
Sales Tax is not imposed on the purchase price of used prebuilt
housing.
(c)
Prebuilt housing manufacturer's election to collect tax.
(1) Although section 202(f) of the TRC
(
72 P. S. §
7202(f))
requires the prebuilt housing builder to pay tax directly to the Department,
this statute also provides that the prebuilt housing manufacturer has the
option to collect tax from the prebuilt housing builder at the time of the
purchase of the prebuilt housing by the prebuilt housing builder from the
prebuilt housing manufacturer. If the prebuilt housing manufacturer elects to
collect tax, the prebuilt housing manufacturer is required to use either of the
following to establish the purchase price:
(i) Sixty percent of the prebuilt housing
manufacturer's selling price.
(ii)
One hundred percent of the actual cost of the supplies and materials used in
the manufacture of prebuilt housing.
(2) If a prebuilt housing manufacturer is
also acting as a prebuilt housing builder, the purchase price of the prebuilt
housing shall be 60% of the prebuilt housing manufacturer's selling
price.
(3) A prebuilt housing
manufacturer is not permitted to alternate between these two methods of
calculation without prior written notification to the Director of the
Department's Bureau of Audits.
(d)
Exemptions. No
exemptions apply to the sale of prebuilt housing. Prebuilt housing
manufacturers are therefore not required to obtain exemption certificates from
prebuilt housing builders. Unless the prebuilt housing manufacturer elects to
precollect the tax, the prebuilt housing builder is obligated to remit tax to
the Commonwealth on its sale of prebuilt housing to a prebuilt housing
purchaser.
(e)
Prefabricated buildings and components which do not qualify as prebuilt
housing. The sale and installation of prefabricated buildings,
components and accessories which do not qualify as prebuilt housing are
governed by §
31.12 (relating to imposition of
tax). Sales of prefabricated buildings, components and accessories, which do
not include installation, qualify as sales of tangible personal property.
Examples include construction site trailers, travel trailers and modular space
units.
(f)
Repair and
maintenance of prebuilt housing. This section relates only to prebuilt
housing sales and does not apply to the repair and maintenance of prebuilt
housing. The application of tax on charges made for the repair and maintenance
of prebuilt housing is governed by of §
31.12.
