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PA Bulletin, Doc. No. 05-56

RULES AND REGULATIONS

Title 61--REVENUE

DEPARTMENT OF REVENUE

[61 PA. CODE CH. 32]

Corrective Amendment to 61 Pa. Code § 32.34(a)(3)(iii)(G)

[35 Pa.B. 256]

   The Department of Revenue has discovered a discrepancy between the agency text of 61 Pa. Code § 32.34(a)(3)(iii)(G) (relating to public utilities) originally the Pennsylvania Code Reporter (MTS 109) (December 1983) and the official text of 61 Pa. Code § 32.34(a)(3)(iii)(G) codified in the December 1990 Pennsylvania Code Reporter (Master Transmittal Sheet No. 193), and as currently appearing in the Pennsylvania Code. The word ''not'' was inadvertently deleted from the last sentence of subsection (a)(3)(iii)(G).

   Therefore, under 45 Pa.C.S. § 901: The Department of Revenue has deposited with the Legislative Reference Bureau a corrective amendment to 61 Pa. Code § 32.34(a)(3)(iii)(G). The corrective amendment to 61 Pa. Code § 32.34(a)(3)(iii)(G) is effective as of December 1, 1990, the date the defective official text was announced in the Pennsylvania Bulletin.

   The correct version of 61 Pa. Code § 32.34(a)(3)(iii)(G) appears in Annex A, with ellipses referring to the existing text of the regulation.

Annex A

TITLE 61.  REVENUE

PART I.  DEPARTMENT OF REVENUE

Subpart B.  GENERAL FUND REVENUES

ARTICLE II.  SALES AND USE TAX

CHAPTER 32.  EXEMPTIONS

BUSINESS EXEMPTIONS

§ 32.34.  Public utilities.

   (a)  Equipment, machinery, parts and foundations therefor, and supplies used directly in rendering public utility service. The purchase or use by a public utility of tangible personal property or services performed thereon to be predominantly used directly by it in producing, delivering or rendering of a public utility service or constructing, reconstructing, remodeling, repairing or maintaining facilities directly used in the service is exempt from tax, whether or not the facilities constitute real estate. However, for purposes of this exemption, real estate does not include buildings, roads or similar facilities. Effective March 4, 1971, foundations for exempt machinery or equipment became subject to tax and remained taxable until February 9, 1981. Effective February 7, 1981, foundations used to support equipment, machinery and parts used directly in rendering a public utility service are exempt from tax. The term ''foundations'' includes sand, gravel, crushed rock, concrete or similar material used as bedding or surrounding pipe used directly in rendering a public utility sanitary sewer or water service. Purchases of any vehicles required to be registered under 75 Pa.C.S. §§ 101--9909 (relating to Vehicle Code), except those vehicles used directly by a public utility engaged in business as a common carrier as well as supplies and repair parts for the vehicles, is subject to tax.

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   (3)  Property not directly used. Property in the following categories is not directly used in public utility operations and the purchase or use of the property is subject to tax:

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   (iii)  Managerial, sales or other nonoperational activities. Property used in managerial, sales or other nonoperational activities is not directly used in the production, delivery or rendition of a public utility service and is therefore subject to tax. This category includes, but is not limited to, property used in any of the following activities:

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   (G)  Activities prior to production, delivery or rendition of services. Property used to transport personnel or to collect, convey or transport other property, and storage facilities or devices used to store or hold property prior to its use in the production, delivery or rendition of a public utility service is subject to tax. Property used to transport, store or hold the actual product which is delivered as a public utility service is directly used and therefore is not subject to tax.

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[Pa.B. Doc. No. 05-56. Filed for public inspection January 7, 2005, 9:00 a.m.]


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