§ 60.11. Credit reporting services.
(a) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise:
Administrative supplies—(i) Tangible personal property which is consumed in one of the following manners:
(A) Used but not transferred in the performance of this service.
(B) Transferred by a vendor to another party in connection with the performance of the vendor’s services when the property is not a critical element of the service.
(ii) Examples of the property include sales invoices, receipts, contracts, estimate sheets, confirmations or other similar items.
Credit information—Information relating to the history of financial transactions of a person or other entity including the description of the business, names of owners, related companies, financial statements, income, sales, timeliness of payments, competition, pending litigation matters, credit history, credit rating, credit verification or information from public records.
Credit investigations—The obtaining of credit information.
Credit reporting services—The providing of credit information by hard copy, electronic media, verbal or another method of transferring credit information.(b) Scope. Effective October 1, 1991, the sale at retail or use of credit reporting services is subject to tax. Credit reporting services are subject to tax when the information or report is delivered to or received at a location in this Commonwealth.
(c) Examples of taxable services. The following are examples of taxable credit reporting services:
(1) Providing mercantile or consumer credit information.
(2) Performing of credit investigations.
(3) Providing a credit report by a credit reporting bureau.
(4) Verifying of credit by a credit clearinghouse or credit bureau.
(d) Examples of services which are not credit reporting services. The following are examples of services which are not credit reporting services:
(1) Processing loan applications and the computing of loan availability.
(2) Performing audits and preparation of financial statements and annual reports.
(3) Performing property or real estate appraisals.
(4) Performing personal and background investigations which are not in connection with credit investigations.
(e) Purchase price. The total amount charged for providing credit reporting services is subject to tax.
(f) Exclusions.
(1) Credit reporting services are exempt if purchased by qualified charitable organizations, volunteer fire companies, religious organizations and nonprofit educational institutions, except if used in an unrelated trade or business. The services are also exempt if purchased by the Federal government or its instrumentalities; the Commonwealth, its instrumentalities or subdivisions including public school districts. The manufacturing, mining, processing, public utility, farming, dairying, agriculture, horticulture or floriculture exclusion does not apply.
(2) The vendor of credit reporting services may claim the resale exemption upon its purchase of tangible personal property which is transferred to its purchaser or a third party in the performance of its credit reporting services. The vendor may also purchase credit reporting services from another provider which the vendor resells to its customer. The vendor may not claim the resale exemption upon its purchase of administrative supplies or the purchase of other taxable services which it may use in the performance of its credit reporting services.
(i) The following are examples of property or services which may be purchased exempt for resale when used in the performing of credit reporting services:
(A) Credit reporting information which is purchased for the purpose of selling credit reporting services.
(B) Property transferred to the purchaser which contains credit information, including envelopes.
(C) Copying charges incurred in the obtaining of credit information documents which are transferred to the purchaser.
(ii) The following are examples of property or services which are taxable when used in the performing of credit reporting services:
(A) Administrative supplies.
(B) Investigative reports or documents used in the obtaining of credit information which are not transferred to the purchaser.
(C) Computer services and equipment which are used in the performance of credit reporting services including the charge for the transmitting of information to the purchaser.
(D) Copying charges incurred in the obtaining of credit information documents which are not transferred to the customer.
Source The provisions of this § 60.11 adopted January 8, 1993, effective January 9, 1993, 23 Pa.B. 189.
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