PROPOSED RULEMAKING
DEPARTMENT
OF REVENUE
[61 PA. CODE CH. 31]
Sales and Use Tax; Duplicating
[27 Pa.B. 933] The Department of Revenue (Department), under authority contained in section 270 of the Tax Reform Code of 1971 (code) (72 P. S. § 7270), proposes to amend § 31.22 (relating to duplicating) to read as set forth in Annex A. Section 270(a) of the code specifically provides that the Department is authorized and empowered to prescribe, adopt, promulgate and enforce, rules and regulations consistent with the provisions of Article II of the code (72 P. S. §§ 7201--7282).
The proposal sets forth more clearly the Department's current policy relating to duplicating. The changes to § 31.22, in part, respond to questions the Department has received, which made it apparent that clarification was needed in the regulation.
Specifically, subsection (a) has been divided into two paragraphs. Paragraph (1) addresses duplication of documents provided by the customer and reiterates existing language with some minor revisions. Paragraph (2) details the treatment of duplication of documents not provided by the customer. This paragraph explains that when the document being duplicated is provided by the vendor in the ordinary course of business, the charge for copies is taxable unless the document is an official document.
Subsection (b) is amended to provide that vendors may claim the resale exemption on purchases of tangible personal property, such as toner or paper, that is transferred to the customer in connection with the sale of a duplicated document.
Fiscal Impact
The Department has determined that the proposed amendment will have no significant fiscal impact on the Commonwealth.
Paperwork
The proposed amendment will not generate significant additional paperwork for the public or the Commonwealth.
Effectiveness/Sunset Date
The amendments will become effective upon final publication in the Pennsylvania Bulletin. The regulation will be monitored annually. No sunset date has been assigned.
Contact Person
Interested persons are invited to submit in writing any comments, suggestions or objections regarding the proposed amendment to Anita M. Doucette, Office of Chief Counsel, Department of Revenue, Dept. 281061, Harrisburg, PA 17128-1061, within 30 days after the date of the publication of this notice in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 11, 1997, the Department submitted a copy of this proposed amendment to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance. In addition to submitting the proposal, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of this material is available to the public upon request.
If IRRC has objections to any portion of the proposed amendment, it will notify the Department within 30 days from the close of the public comment period. The notification shall specify the regulatory review criteria that have not been met by the portion of the proposed amendment to which an objection is made. The act specifies detailed procedures for review of objections raised, prior to final publication of the regulation, by the Department, the General Assembly and the Governor.
ROBERT A. JUDGE,
SecretaryFiscal Note: 15-379. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 61. REVENUE
PART I. DEPARTMENT OF REVENUE
Subpart B. GENERAL FUND REVENUES
ARTICLE II. SALES AND USE TAX
CHAPTER 31. IMPOSITION
SPECIALIZED TYPES OF BUSINESS OR PROPERTY § 31.22. Duplicating.
(a) Sale at retail of taxable property.
(1) Duplication of documents provided by customer. Persons engaged in the process of accuratelyduplicating, reproducing or forming a durable medium for the reproduction of an original document are vendors of [copies] tangible personal property purchased by their customers, regardless of whether [or not] the copies are produced to the special order of the customer. Duplicating includes [, but is not limited to,] the production of photostatic copies or blueprints. Sales tax applies to all [charges for the products sold at retail, including] charges for the [making of copies out of materials] duplicating of documents furnished by the customer. The purchase price may not be reduced on account of expenses incurred [,] such as amounts paid for rentals of equipment, [or] salaries or wages paid to assistants, regardless of whether [or not such] the expenses are itemized in billings to customers.
(2) Duplication of documents not provided by customer. When the document being duplicated is provided by the vendor in the ordinary course of the vendor's business, the charge for copies sold is taxable unless the document is an official document. An official document includes notes of court testimony, deposition transcripts, medical records, blueprints, driving records, accident reports, birth and death certificates, deeds, divorce decrees and other similar documents.
(b) Purchase of supplies and equipment. Vendors may claim the resale exemption on purchases of tangible personal property, such as toner or paper, that is transferred to the customer in connection with the sale of a duplicated document. The purchase of [items] supplies and equipment, such as chemicals, film, proof paper, developer units or [other supplies] similar items used or consumed in the process of duplicating, reproducing or forming a durable medium for the reproduction of an original is subject to tax, unless the vendor is entitled to claim an exemption under § 32.36 (relating to printing and related businesses). Repair services do not qualify for the resale exemption. [Vendors may claim the resale exemption on purchases of tangible personal property which they directly resell or incorporate into products which they resell.]
[Pa.B. Doc. No. 97-255. Filed for public inspection February 21, 1997, 9:00 a.m.]
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