(a)
General provisions.
(1)
General. This section is
promulgated to administer section 2301 of the TRC (72 P. S. §
9301).
(2)
Registration. A person
who makes sales, rentals or leases subject to a tax or fee under subsection
(b), (c) or (d) is required to apply for a Public Transportation Assistance Tax
License Number on a form prescribed by the Department. The registration is
separate from sales tax registration required under section 208 of the TRC
(72 P. S. §
7208).
(3)
Returns. The taxes and
fees collected under subsection (b), (c) or (d) shall be reported on a return
prescribed by the Department. The returns shall be filed under sections 217-220
of the TRC (
72 P. S. §§
7217-
7220) and §
34.3 (relating to tax
returns).
(4)
Payment. Payment of the taxes and fees under subsection (b), (c) or
(d) shall be made under sections 221-224 of the TRC (72 P. S. §§
7221-7224).
(5)
Imposition of tax. The
taxes and fees imposed under subsection (b), (c) or (d) are in addition to
Sales or Use Tax and are excluded from the computation of tax for Sales and Use
Tax purposes.
(6)
Exemption
certificates. Claims for exemption from the taxes and fees imposed
under subsection (b), (c) or (d) shall be supported by the use of a valid
Pennsylvania Exemption Certificate.
(7)
Direct payment permit. A
direct payment permit issued under §
34.4 (relating to direct payment
permit) may be used in conjunction with the taxes and fees imposed under this
section.
(8)
Applicability
of TRC. Article II of the TRC (72 P. S. §§
7201-7282) and regulations promulgated
thereunder apply to the taxes and fees imposed under subsection (b), (c) or
(d).
(b)
Tire
fee.
(1)
Definitions. The following words and terms, when used in this
subsection, have the following meanings, unless the context clearly indicates
otherwise:
Highway use-The use of a tire on a
vehicle which is required to be licensed for highway use. If a tire is of the
type used on a vehicle normally required to be licensed for highway use under
75 Pa.C.S. §§
1301-1318 (relating to general provisions),
the tire shall be presumed to be for highway use.
Sale-A transfer of the ownership of new
tires for a consideration whether the transfer is absolute or conditional and
by whatever means the transfer has been effected. The term does not include a
rental or lease.
(2)
Scope. Effective October 1, 1991, the sale of a new tire which
is delivered to a location in this Commonwealth for highway use is subject to a
$1 fee. The fee shall be collected by the vendor from the purchaser. If the
vendor fails to collect, report or remit the tire fee, the vendor shall be
assessed the fee. If the purchaser does not pay the fee to the vendor, the
purchaser shall be assessed the tire fee. The sale of new tires in conjunction
with the sale of other property shall be subject to the tire fee. There is no
exclusion for exempt organizations or businesses engaged in manufacturing,
processing, farming, dairying, printing, mining or rendering a public utility
service.
(3)
Exclusions. The following transactions are excluded from tax:
(i) The sale of tires not for highway
use.
(ii) The sale of new tires to
governmental entities.
(iii) The
rental or lease of new tires. The lessor is required to pay the tire fee on the
purchase of tires to be rented or leased.
(iv) The sale of used tires including
retreads or recaps.
(v) The sale of
tires when delivered to the purchaser at an out-of-State location. The
subsequent use of the tires within this Commonwealth is not subject to the tire
fee.
(4)
Examples
of sales subject to the tire fee.
(i) A purchaser buys a new or used automobile
with four new tires and one spare tire. A tire fee of $5 is due on the sale of
five new tires.
(ii) A leasing
company buys new tires to use as replacements on its leased licensed vehicle
fleet. Since the tires are for highway use, the purchase of the tires by the
leasing company is subject to the tire fee.
(iii) A church buys a new tire to replace a
tire on a vehicle registered in the name of the church. The purchase of the
tire by the church is subject to the tire fee.
(iv) A trucking company buys tires from an
out-of-State vendor. The tires are delivered to the trucking company in this
Commonwealth. The sale of the tires is subject to the tire fee.
(v) A new car dealer withdraws an automobile
from inventory and makes a taxable use of the automobile for sales and use tax
purposes. The dealer is required to pay the tire fee directly to the
Department.
(vi) A garage replaces
a tire in connection with the repair of a damaged motor vehicle. The sale of
the tire is subject to the tire fee regardless of whether the cost of the
repair is covered by an insurance contract.
(5)
Examples of sales not subject to
the tire fee.
(i) A used car dealer
buys new tires to place on a vehicle to be resold. The purchase of tires by the
dealer is not subject to the tire fee. The subsequent sale of the vehicle with
the new tires to a purchaser for highway use is subject to the tire
fee.
(ii) A lessee rents a vehicle
with new tires from a leasing company. A tire fee is not due on the rental. The
lessor is liable for paying the tire fee on the purchase of the
tires.
(iii) A manufacturer
purchases new tires for use on forklifts not required to be licensed for
highway use. The purchase is not subject to the tire fee.
(iv) A trucking company buys new tires from
an out-of-State vendor. The tires are delivered to the trucking company at an
out-of-State location. The sale or use of the tires is not subject to the tire
fee even though the tires are subsequently used in this Commonwealth.
(v) A retail tire dealer purchases tires from
a tire manufacturer for resale. As the retail tire dealer is not purchasing the
tires for highway use, the purchase is not subject to the tire fee. The retail
tire dealer's subsequent sale of the tire to a customer for highway use is
subject to the tire fee.
(c)
Motor vehicle lease tax.
(1)
Definitions. The
following words and terms, when used in this subsection, have the following
meanings, unless the context clearly indicates otherwise:
Lease-A contract for the use of a motor
vehicle for 30 days or more.
Lease price-Full consideration paid or
delivered or promised to be paid or delivered to the lessor for a lease period
under a lease agreement, whether it is money or otherwise, even though the
consideration is separately stated and designated as a payment for downpayment,
service, maintenance, insurance, repairs, depreciation, excess mileage fees or
similar charges.
(i) The term also
includes an accelerated lease payment or buy out purchase price whether or not
made in connection with the termination of the lease.
(ii) The term does not include the option
purchase price, penalty fees for early termination of lease, damage fees or
similar charges.
(iii) The term
does not include Sales Tax imposed on the lease price.
(iv) Credits or refunds which reduce the
lease price reduce the amount subject to tax even though the credits or refunds
are issued after termination of the lease.
(v) If the lessor fails to separately state
the lease price of other property, such as a trailer, from the lease of a motor
vehicle, the total lease price is subject to tax.
Motor vehicle-A self-propelled device
in, upon or by which a person or property is or may be transported or drawn
upon a public highway, except tractors, power shovels, road machinery,
agricultural machinery and vehicles which move upon or are guided by a track or
trolley. The term does not include trucks in Class 4 or higher as defined in
75 Pa.C.S. §
1916(a)(1) (relating to
trucks and truck tractors). Title
75 Pa.C.S. §
1916(a)(1) currently defines
trucks in Class 4 as those having a registered gross or combination weight
between 9,001 and 11,000 pounds.
(2)
Scope. Effective October
1, 1991, each lease of a motor vehicle subject to the tax imposed by section
202 of the TRC (72 P. S. §
7202) is
subject to an additional tax of 3% of the total lease price charged. This tax
will be imposed upon lease payments due on or after October 1, 1991, regardless
of the date upon which the lease was executed. Lease payments made on or after
April 1, 1995, for the use of trucks in Class 4 or higher as defined in
75 Pa.C.S. §
1916(a)(1) are not subject
to the tax. The tax shall be collected by the lessor from the lessee. If the
lessor fails to collect, report or remit the tax, the lessor shall be assessed
the tax. If the lessee does not pay the tax to the lessor, the lessee shall be
assessed the tax.
(3)
Exclusions. If the lease of a motor vehicle is exempt from Sales and
Use Tax imposed by section 202 of the TRC, the lease is exempt from the tax
imposed under this subsection.
(d)
Motor vehicle rental
fee.
(1)
Definitions. The following words and terms, when used in this
subsection, have the following meanings, unless the context clearly indicates
otherwise:
Motor vehicle-A self-propelled device
in, upon or by which a person or property is or may be transported or drawn
upon a public highway, except tractors, power shovels, road machinery,
agricultural machinery and vehicles which move upon or are guided by a track or
trolley.
Rental-A contract for the use of a motor
vehicle for less than 30 days.
(2)
Scope. Effective October
1, 1991, each rental of a motor vehicle subject to the tax imposed by section
202 of the TRC is also subject to a fee of $2 for each day or part of a day for
which the vehicle is rented. The fee shall be collected by the lessor from the
lessee. If the lessor fails to collect, report or remit the fee, the lessor
shall be assessed the fee. If the lessee does not pay the fee to the lessor,
the lessee shall be assessed the fee. If a motor vehicle is rented for less
than 30 days, and the use of the motor vehicle subsequently extends beyond a
29-day period, the transaction remains a rental, and the rental payments
continue to be subject to the fee until the rental contract is terminated. With
respect to lease payments paid in accordance with a lease contract, lease
payments are subject to tax at the rate of 3%.
(3)
Exclusions. If the
rental of a motor vehicle is exempt from Sales and Use Tax imposed by section
202 of the TRC (72 P. S. §
7202), the
rental is exempt from the fee imposed under this subsection.
(4)
Examples of rentals subject to
the rental fee.
(i) A lessee rents a
motor vehicle from a rental company for 5 hours. The rental is subject to a $2
rental fee.
(ii) A lessee rents a
motor vehicle from a rental company for 1 day. The vehicle is returned to the
lessor 5 hours after the end of the rental period. If the lessee is charged the
daily rental rate plus an additional charge for the period after the end of the
rental period, a rental fee of $4 is due.
(iii) A lessee rents a motor vehicle from a
rental company under a daily rental contract. The rental is subject to a $2 per
day rental fee. The lessee returns the motor vehicle to the lessor at the end
of the 15th day and enters into a lease contract. During the first 15 days, the
lessee is required to pay a rental fee of $2 per day. For the period after the
15th day, the lessee is required to pay a tax of 3% of the lease
payment.
