§ 43.6. Procedure for collection or payment of tax.
Water well drillers may be engaged in one or more of the following activities: Over-the-counter sales; repairing, servicing or maintaining existing water well systems; and water well drilling. In order that a water well driller may properly collect or pay tax with respect to these activities, he may utilize one of the following procedures depending upon the type of activities in which he is engaged.
(1) Situation where the water well driller is licensed to collect tax. A water well driller who is licensed to collect taxes because he makes over-the-counter sales is permitted to pay tax upon the property which he uses in his repair, service and maintenance activities by utilizing either one of the following two methods:
(i) By the payment of the tax to his supplier rather than claiming an exemption.
(ii) By payment of tax as use tax with his regular sales tax return.
(2) Situation where the water well driller is not licensed to collect tax. A water well driller who makes no over-the-counter sales is not required to be registered with the Bureau of Sales and Use Tax since he does not collect any sales tax. He may, however, pay tax upon any property which he uses in his repair, service or maintenance activities by utilizing either one of the following two methods:
(i) By payment of the tax to his supplier rather than claiming an exemption.
(ii) By payment of tax directly to the Bureau of Sales and Use Tax. This may be accomplished by obtaining a contractor’s registration number for which he will receive regular tax returns for the purpose of remitting use tax.
Source The provisions of this § 43.6 adopted October 20, 1972, effective October 21, 1972, 2 Pa.B. 1969.
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