§ 31.3. Exclusions.
The tax does not apply to the following:
(1) Sales of tangible personal property or rendition of services for resale. Resale includes incorporation of property as an ingredient into other tangible personal property which is either sold in the regular course of business or transported in interstate commerce to out-of-State destinations for use outside of this Commonwealth.
(2) Isolated transactions other than: sales of inventory and stock in trade; and sales of motor vehicles, trailers and semitrailers, motor boats, aircraft or other similar tangible personal property required under either Federal law or the laws of the Commonwealth to be registered or licensed.
(3) Gasoline and other motor fuels subject to The Liquid Fuels Tax Act (72 P. S. § § 2611a—2611c) and The Fuel Use Tax Act (72 P. S. § § 2614.1—2614.24).
(4) Tangible personal property used but not consumed within this Commonwealth if it is purchased outside of this Commonwealth and then brought into this Commonwealth for the following purposes:
(i) Temporary use not to exceed 7 days by a nonresident.
(ii) A period by a nonresident vacationer or tourist.
(5) Wrapping paper, wrapping twine, bags, cartons, tape, rope, labels, nonreturnable containers and other wrapping supplies, when the use is incidental to the delivery of tangible personal property. Charges for wrapping or packaging are subject to tax.
(6) Prescription or nonprescription medicines, drugs or medical supplies; crutches and wheelchairs; artificial limbs; artificial hearing devices; false teeth, materials used by a dentist in dental treatment; prescription eyeglasses for the personal use of the owner or purchaser; artificial braces and supports designed solely for persons with disabilities.
(7) Coal.
(8) Sales of motor vehicles, trailers, and semitrailers or bodies attached to the chassis thereof to a nonresident of this Commonwealth, to be used outside of this Commonwealth and which are registered in a state other than this Commonwealth within 20 days after delivery to the vendee.
(9) Water.
(10) Wearing apparel and footwear, and other articles of clothing carried on or about the human body. This exclusion does not include the following:
(i) Accessories.
(ii) Ornamental wear.
(iii) Formal wear.
(iv) Sporting goods and clothing normally used or worn when engaged in sports.
(v) Real or imitation fur articles if the fur is more than three times the value of the next most valuable component material.
(11) Charges for repairing, altering or cleaning clothing or shoes. Charges for cleaning household goods remain taxable except when performed by coin-operated, self-service laundry equipment.
(12) Food and nonalcoholic beverages for human consumption. This exemption does not apply to purchases from caterers or eating places when the purchase price of the total transaction exceeds 10¢. Spirituous and vinous liquors are subject to tax when purchased from a Pennsylvania Liquor store. Malt beverages are subject to tax when purchased from a brewer or distributor. Soft drinks are subject to tax when sold at the retail level by anyone for a price more than 10¢. Food and beverages purchased at or from a school or church in the ordinary course of its activities are exempt from tax.
(13) Caskets, burial vaults, markers and tombstones for human graves.
(14) The sale at retail or use of textbooks for use in schools, colleges and universities when the following are met:
(i) The textbooks are used in public or private schools, colleges and universities.
(ii) The textbooks are purchased on behalf of or through these schools, colleges and universities.
(iii) The schools, colleges and universities are recognized by the Department of Education.
(15) Vessels designed for commercial use of registered tonnage of 50 tons or more when produced on special order of the purchaser and property or services used or consumed in building, rebuilding and repairing these vessels.
(16) Sales or use of property or services to be used for ship cleaning, maintenance, fuel supplies, ships’ equipment, ships’ or sea stores, to be used or consumed by vessels to be operated principally outside of this Commonwealth.
(17) Motion picture film rented or licensed from a distributor for commercial exhibition.
(18) The sale at retail or use of mail order catalogs and direct mail advertising materials.
(19) Property upon which work or services are performed for the sole purpose of transporting the property in interstate commerce to a destination outside of this Commonwealth for exclusive use outside of this Commonwealth.
(20) Tangible personal property purchased outside of this Commonwealth by a nonresident and brought into this Commonwealth in connection with the establishment of a permanent business or residence herein, if the property was purchased more than 6 months prior to the date it was brought into this Commonwealth or more than 6 months prior to the establishment of the business or residence, whichever is earlier. This paragraph is not applicable to property temporarily in this Commonwealth for the performance of real estate construction or maintenance contracts.
(21) Sales to or use of tangible personal property or services by: charitable organizations; volunteer firemen’s organizations; nonprofit educational institutions; or religious organizations for religious purposes.
(i) This exclusion does not apply to property or services used in an unrelated trade or business carried on by this type of organization or institution. This exclusion does not apply to materials, supplies and equipment used in the construction, reconstruction, remodeling, repair and maintenance of real estate, other than materials and supplies used in routine maintenance and repairs of real estate.
(ii) Equipment used in the routine maintenance and repair of real estate is subject to tax.
(22) Property or services purchased by the United States, the Commonwealth or its political subdivisions, or instrumentalities thereof.
(23) Flags of the United States and the Commonwealth.
(24) The sale at retail or use of rail transportation equipment used in the movement of personalty.
(25) The sale at retail of horses, if at the time of purchase, the seller is directed to ship or deliver the horse to an out-of-State location. The seller shall obtain a bill of lading from the carrier or purchaser, reflecting the out-of-State destination. The seller shall execute and retain a ‘‘Certificate of Delivery to Destination Outside of the Commonwealth’’ to justify the noncollection of sales tax. If a horse is sold and delivered to a domiciled person prior to out-of-State delivery the ‘‘Certificate of Delivery to Destination Outside of the Commonwealth’’ shall have both bills of lading attached.
(26) The sale at retail or use of fish feed purchased by or on behalf of sportsmen’s clubs, fish cooperatives or nurseries approved by the Fish and Boat Commission.
(27) The sale at retail or use of supplies and materials to tourist promotion agencies, which receive grants from the Commonwealth, for distribution to the public as promotional material.
(28) The sale or use of brook trout, brown trout or rainbow trout.
(29) The sale at retail or use of buses to be used exclusively for the transportation of children for school purposes.
(30) The sale at retail or use of firewood cut into proper lengths for burning and used for fuel for cooking, hot water production or to heat residential dwellings.
Authority The provisions of this § 31.3 amended under section 270 of the Tax Reform Code of 1971 (72 P. S. § 7270).
Source The provisions of this § 31.3 amended January 20, 1984, effective January 21, 1984, 14 Pa.B. 222; amended September 14, 1984, effective September 15, 1984, 14 Pa.B. 3366; amended March 19, 1993, effective March 20, 1993, 23 Pa.B. 1322; amended March 24, 2000, effective March 25, 2000, 30 Pa.B. 1654. Immediately preceding text appears at serial pages (179189) to (179192).
Cross References This section cited in 61 Pa. Code § 31.6 (relating to persons rendering nontaxable services).
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