§ 31.15. Reciprocal credit for taxes paid other states.
(a) A contractor may be entitled to a tax credit against tax owed to the Commonwealth upon property used or consumed in this state. To be entitled to such credit, the following conditions shall be met:
(1) Purchase and possession of the property shall be made in a state other than this Commonwealth; and
(2) Sales tax shall have been legally paid upon the property to the other state; and
(3) The sales tax law of the other state must grant substantially the same tax credit for sales tax paid to the Commonwealth. A list of states granting tax credit is available from the Department, attention Legal Bureau.
(b) A contractor who is entitled to tax credit against sales tax owed to the Commonwealth may do so at the time he files his sales or use tax return. He shall indicate upon the return the amount of tax which he owes and the amount of tax credit he is taking in a similar manner to the taking of TPPR credit outlined in § 31.14 (relating to taxes paid purchases resold (TPPR). A contractor taking reciprocal tax credit shall maintain supporting records as justification for tax credit taken on his tax return.
Source The provisions of this § 31.15 adopted April 14, 1972, effective April 14, 1972, 2 Pa.B. 667.
Cross References This section cited in 61 Pa. Code § 31.11 (relating to definitions); 61 Pa. Code § 46.3 (relating to construction contractor installing stained glass windows); 61 Pa. Code § 46.7 (relating to nonresident contractors); and 61 Pa. Code § 46.8 (relating to industrialized housing).
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