61 Pa. Code § 31.44 - Computation of tax
(a)
Purchase price. The tax is computed upon the full amount of
the purchase price of a vehicle less the trade-in deduction. A deduction from
the purchase price shall be permitted for an amount equal to the amount of a
trade-in allowed on the purchase, if the trade-in occurs at the same time of
the sale. A separate or independent sale of a vehicle is not considered a
trade-in, even if the proceeds of the sale are immediately applied by the
seller to a purchase of a vehicle from the buyer. The following items are
included in the amount of the purchase price:
(1) Federal Excise Tax, since it is not a tax
at the retail level.
(2) Financing
and insurance charges, unless the charges are separately stated as a separate
item upon the customer's invoice.
(3) Delivery or freight charges for delivery
of a vehicle from a manufacturer or distributor to a dealer whether or not they
are separately stated upon the customer's invoice. Delivery charges from the
dealer to the customer whether or not they are separately stated upon the
customer's invoice.
(4) Warranty or
"service" charges.
(5) Charges for
preparation of or additional work upon a vehicle.
(6) Additional accessories or equipment
placed in or upon the vehicle by the dealer even though the charge may be
separately stated upon the customer's invoice.
(b)
Transactions not at arm's
length. When because of affiliation of interests between the seller
and purchaser, or for another reason, the purchase price stated is not
indicative of the true value of the vehicle, the purchase price shall, for
purpose of the imposition of this tax, be determined as the prevailing market
price of the vehicle.
(c)
Alternate imposition of tax. Alternate imposition of tax shall
conform with the following:
(1)
Registered dealers of motor vehicles, trailers or
semitrailers. A person may elect to pay tax equal to 6% of the fair
rental value of a new or used vehicle, if the following exist:
(i) The person is registered as a Registered
Dealer with the Bureau of Motor Vehicles.
(ii) The person acquires the motor vehicle,
trailer or semitrailer for the purpose of resale.
(iii) The person uses the motor vehicle,
trailer or semitrailer for a taxable use during a period not exceeding 1 year
from the date of acquisition to the date of resale.
(iv) The motor vehicle is not used as a
wrecker, parts truck, delivery truck, or courtesy car.
(2)
Time limits. If the
motor vehicle, trailer or semitrailer is used for a taxable use beyond 1 year
from the date of acquisition, the taxpayer shall be liable for a tax on the
prevailing market price of the vehicle at the time of acquisition. The taxpayer
will be allowed a credit equal to the tax paid due to the taxpayer's election
to pay alternate tax. Dealers actively and principally engaged in the business
of selling new or used motor boats, aircraft or similar tangible personal
property may not utilize this election to pay alternate tax.
(3)
Persons not establishing
permanent residence or business. A person, including a resident of
this Commonwealth or a member of the military service who designates an address
in this Commonwealth as the person's home of record, may elect to pay tax equal
to 6% of the prevailing market price of a vehicle if the person purchased the
vehicle 6 months or longer prior to its first taxable use in this
Commonwealth.
Notes
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