Effective January 1, 1992, the sale at retail or use of self-storage service at a location in this Commonwealth is subject to tax. To qualify as a food retailer, the eating establishment is required to satisfy the following requirements. If the sale occurs on or after the effective date of the local tax, the sale is subject to the local tax. These include the following: Some plumbers will charge you an average of $50 to $300 as trip fees. During 1995, A shall collect tax on 60% of the amount invoiced for interior office building cleaning services. The sale of hot and cold drinks and prepackaged crackers and pretzels is subject to tax. 3136; amended June 3, 1994, effective June 4, 1994, 24 Pa.B. 2808; amended April 19, 1996, effective April 20, 1996, 26 Pa.B. For purposes of this section, an enclosed telephone booth is a building. The services are also exempt if purchased by the Federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions including public school districts. Other plumbers will charge you a service fee of $150 on average. (ii)Service fee method. Pat takes the computer home and pays the applicable local use tax to that county. (5)The fumigation of agricultural commodities or containers for agricultural commodities, effective January 1, 1992, is exempt. For example, a contractor could not accept an exemption for manufacturing equipment if they are installing racking at a warehouse facility that they know is not used for manufacturing. Agricultural commodityAn unprocessed farm product. (6)Collection services provided by an attorney not in conjunction with, or incidental to, the attorneys nontaxable performance of a legal service, or rendering of legal advice, which involve the application of legal skills. (d)Taxability of unbundled charges. If P makes a charge for delivery, the delivery charge is also subject to tax. (c)Building cleaning services. (6)Charges made by a creditor to a debtor for a dishonored check. Example: In 1994, A, a sole proprietor, reported gross sales of $50,000 and a net profit of $20,000. Whether or not you are a construction contractor, the sales and use tax rules regarding this industry affect you. (4)The purchase of disinfecting or pest control services which are predominately used directly in farming, dairying, agriculture, floriculture and horticulture, effective January 1, 1992, is exempt. (3)The following are examples of services which are not taxable under this category: (i)Vehicle parking in a parking lot or an unenclosed parking garage. Effective January 1, 1992, the following services are not taxable:the interior painting, wallpapering and application of other like coverings to walls, ceilings or floors; the exterior painting of buildings; and maintaining, cleaning, or repairing of boilers, furnaces or parts thereof. (A)The resale exemption does not apply to the transfer of property to the individual to whom the lobbying services are directed. Basic local telephone serviceThe provision of an access line and dial tone, to a fixed location, for purposes of sending or receiving a telecommunication service within a local calling area, regardless of whether the purchaser has limited or unlimited access to a private or a party line. (ii)The following are examples of property which is taxable when used in the performing of building maintenance services or building cleaning services: (B)Brooms, mops, brushes, dust rags, buckets, polishers, scrubbers and ladders. (ii)Wrapping supplies as defined by 32.1. (v)Franchise fees relating to premium cable service. The paging service originates in this Commonwealth because the paging service providers signals originate from antennas located in this Commonwealth. On April 4, 1992, Kathy established her residence in a taxable county. (iv)Storage of raw materials, in-process materials and finished products. Food retailerA business, or an identifiable location within a business, which is engaged in the sale of grocery type items for other than immediate consumption. You can also find additional information about Pennsylvania taxable and non-taxable sales tax items by reading the Retailers Information Guide Pennsylvania REV-717 which is on my website resource page. When equipment is exempt and the fee for the operator is separately stated, the operator fee is taxable. Only charges for the collection of debts against debtors located in this Commonwealth are taxable. (g)If a refund is determined to be due and the contractor has a valid assignment of rights from the exempt entity, the refund will be paid to the contractor. (4)Disinfecting hot tubs, food processing equipment, wearing apparel, medical instruments, trucks, containers or other property. (d)Examples of services which are not adjustment and collection services. (2)The vendor of help supply 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 help supply services. (5)Adjustment and collection services against multistate debtors are taxable when performed on behalf of a creditor who is doing business in this Commonwealth and the debtors address referred by the creditor for adjustment or collection is in this Commonwealth. 233; amended March 2, 2007, effective March 3, 2007, 37 Pa.B. 2525. E would not be required to collect sales tax on its sale of hoagies. When interior office building cleaning services are provided by a partnership, employe costs also include the partners net profits from business and guaranteed payments for services rendered as reportable for purposes of Pennsylvania individual income tax for the prior year. (ii)Businesses located on the premises of a school or church. However, if the business sells selected food or beverage items to the public or operates an eating establishment from which food or beverages are sold to the public in competition with other businesses selling similar items, the business is required to collect tax upon its sale of food and beverages to the public whether or not they are consumed on or off the premises of the school or church. (3)Telegrams paid for in cash at a telegraph office. FumigationThe performance of services to property which disinfects or destroys pests through the use of smoke, gas, gaseous chemicals or other fumigants. Reach out to your RKL advisor or contact us via the form below. The services are also exempt if purchased by the Federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions including public school districts. Printing or imprinting of tangible personal property of another. Because the telecommunications service was charged to equipment at a location that did not constitute a service address from which the call either originated or terminated, the service address is deemed to be this Commonwealth, the origination of the call. Three months later, Pat takes the computer to another taxable county to use while attending college for 4 years. 325.101325.402). Soft drinkA nonalcoholic beverage, in either powder or liquid form, whether or not carbonated, such as soda water, ginger ale, colas, root beer, flavored water, artificially carbonated water, orangeade, lemonade, juice drinks containing less than 25% by volume of natural fruit or vegetable juices, and similar drinks. (2)Safe deposit boxes rented from financial institutions. 6866; amended December 11, 1998, effective December 12, 1998, 28 Pa.B. (ii)Examples of this property include sales invoices, receipts, contracts, estimate sheets, confirmations or other similar items. It's important to ask your plumber whether they will be charging sales tax before hiring them. The guest is charged $5 per minute and the guests bill separately states this charge. (1)Secretarial and editing services are exempt from tax 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 Federal government or its instrumentalities; or the Commonwealth, its instrumentalities or subdivisions, including public school districts. (ii)A fair harness racing event approved by the Pennsylvania State Harness Racing Commission. (i)The following are examples of property which may be purchased exempt for resale when used in the performing of premium cable television services: (3)Persons who are engaged in the business of providing basic and premium cable services and are entitled to claim the processing exemption should make reference to 32.1, 32.32 and 42.1 (relating to definitions; manufacturing; processing; and definitions). Article II of the TRC imposes Sales and Use Tax upon certain tangible personal property and selected services. Washing, cleaning, waxing, polishing or lubricating of motor vehicles. (ii)The following are examples of property which may be purchased exempt for resale when transferred to the purchaser in the performing of lobbying services: (iii)The following are examples of property which are taxable when used in the performing of lobbying services: (G)Meals, gifts and other property or service provided to the individual to whom the lobbying service is directed. Selected food and beverage itemsSoft drinks; meals; sandwiches, including hoagies, hot dogs, hamburgers and similar sandwiches; food from salad bars; hand-dipped or hand-served ice-based products, including, ice cream, yogurt, frozen water-based products and similar items; hot soup; hot pizza, either whole or by the slice; other hot food items such as chicken, pork ribs, macaroni and cheese and similar items and hot drinks such as coffee, tea, cocoa and similar items. Tax shall be imposed on the total charge for disinfecting or pest control services. Employe costsPayments made or withheld by a vendor to an employe, including wages, salaries, bonuses, commissions, employment benefits, expense reimbursements, payroll, withholding taxes, employer paid social security tax or Federal and Pennsylvania unemployment taxes. (5)A publishing company purchases an editing service to proofread manuscripts prior to printing. (i)The following are examples of sales subject to the local tax: (A)John, a resident of a taxable county, purchases an automobile from an automobile dealer located in a taxable county. (4)The following are examples of sales which are subject to the local tax: (i)Jeff signed a contract for the lease of a television set from an appliance store located in a taxable county prior to the effective date of the local tax. This exclusion from tax expires on December 31, 1999. This can make tax filing a complicated process. Taxable sales from vending machines located in a nontaxable county are not subject to the local tax. He charges the call to a third party located outside this Commonwealth. (ii)Sale of candy, gum and prepackaged frozen items from vending machines. Gross feeThe total amount charged by the vendor excluding sales tax. Because the telephone call also originates in this Commonwealth, the telecommunications service is subject to Pennsylvania Sales and Use Tax. (B)Charges to video programmers for the transport of video programming. (C)U university operates a restaurant on university property. The cellular telephone service provider sends Janiss phone bills to her residence in this Commonwealth. However, if an eating establishment operates a separate department from which grocery type items are sold, the sale of the grocery type items is exempt from tax if the eating establishment fulfills the requirements in this section. (ii)If either the actual service fee, average employe cost or average service fee method is used, at a minimum, the invoice provided to the purchaser shall contain the following information: (3)Taxable portion of purchase price. GratuityA voluntary payment by the purchaser or a reasonable mandatory charge by the vendor, in lieu of the voluntary payment, which is billed to the purchaser for services rendered in connection with the purchase of food or beverages or hotel or motel accommodations. (A)The sale at retail or use of multiple copies or licenses of custom software to the original purchaser is not subject to tax. However, Gregg shall pay local tax upon the purchase price of property purchased within 6 months of establishing his residence in the taxable county. Therefore, the sale of food and beverage items is subject to tax when sold at a fair or carnival. On sales in excess of 50, the tax shall be computed using the following formula:(Gross receipts 1.07) x .01 = local tax due (Gross receipts 1.07) x .06 = State tax due. The lease payments due on or after the effective date of the local tax are subject to the local sales tax. The set is delivered to Tim at his residence in a taxable county. 1434; reserved May 26, 2006, effective May 27, 2006, 36 Pa.B. (ii)The nonprofit association sells food and beverages at a location where a sports program is being conducted. (III)Gross salary and expenses paid to the lobbyist employe for services rendered to the organization which do not involve lobbying activities would not be used in calculating the ratio or percentage. IXC may claim resale on the access charge. Plumbing Estimates: How Much Do Plumbers Charge? (C)A lobbyist may not claim the resale exemption upon the purchase of administrative supplies or the purchase of other taxable services which the lobbyist may use in the performance of lobbying services. (1)Adjustment or collection 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. No statutes or acts will be found at this website. 2006). Effective October 1, 1991, the sale at retail or use of lobbying services is subject to tax if the benefit or delivery of the service occurs in this Commonwealth. (ii)Janis, a Pennsylvania resident, calls Newark, New Jersey from her cellular telephone while driving through Scranton, Pennsylvania, which is within her assigned cellular telephone service area. (1)General. (4)If Form REV-1220 is properly annotated, the same form may be used in claiming exemption under subsection (b)(1) and (3). (ii)Example:John calls New York from a telephone in this Commonwealth and charges the call to his calling card, a credit payment mechanism related to his home telephone in Florida. (3)Deodorizing and disinfecting buildings, restrooms, washrooms or other areas in a building. Tax is imposed upon the total purchase price billed to the purchaser for the food or beverages, including an amount billed for delivery but excluding a separately stated amount representing a gratuity. Building repair servicesServices to a building which do not qualify as a building maintenance service or building cleaning service. Employment agency servicesThe service of attempting to procure or procuring temporary or permanent employment for prospective employes or employers. The materials are subject to the local tax. The local tax on aircraft is payable to the Department. (9)Sale of food and beverages by nonprofit associations which support sports programs. The court disagreed, saying that a determination on TPP permanence needs to consider the character of the object, its ability to be installed and removed, its degree of portability and whether it maintains its functional integrity after installation. Sales tax refund procedures regarding contracts with exempt entities. Building maintenance or building cleaning services. (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. (2)Communications to the Governor or his staff advocating the approval or veto of legislation. The provisions of this 60.4 adopted January 8, 1993, effective January 9, 1993, 23 Pa.B. The sale of candy, gum and prepackaged frozen milk or frozen water-based products from a vending machine prior to October 1, 1991, and on or after December 13, 1991, is not subject to tax. Is there a list of services subject to PA sales and use tax? Accordingly, the service address is defined as the mobile telephone switching office in this Commonwealth that transmits the signal. (2)Since the enactment of the TRC, the bundled charges for the generation, transmission and distribution of electricity for nonresidential use, together with other charges representing reimbursements to the seller for taxes, fuel adjustment costs and similar charges, have been subject to tax. The service charge, which is not in lieu of the gratuity, is taxable. (iv)A National credit card company incorporated in Delaware with an office in this Commonwealth hires a Delaware collection agency to collect debts from its delinquent customers. Caras pager is activated while she is attending a conference in New York City. (1)The sale of food and beverages by nonprofit associations which support sports programs is not subject to tax. (4)Charges for points, taxes, insurance, escrow fees and late penalties by financial institutions in connection with loans and mortgages. Nonpremium cable serviceThat portion of a cable television service; community antenna television service or another distribution of television, video, audio or radio service which does not qualify as premium cable service, including the following: installation and repair of nonpremium cable service; tier packages with no premium cable service; additional premium cable outlets up to an accumulative number of ten for an indiviudal customer; public television or radio services; local origination programming which provides a variety of public service programs unique to the community; programming which provides coverage of public affairs issues which are presented without commentary or analysis such as Congressional proceedings and programming substantially related to religious subjects. The term does not include, as part of a furnace, the duct work, humidifier, chimney, air cleaner, utility lines into the furnace or similar items. (D)Copying charges incurred in the obtaining of credit information documents which are not transferred to the customer. For example: Company A receives 1,000 pamphlets, envelopes and labels from Company C. Company A is to fold and stuff the pamphlets into the envelopes and affix the mailing labels. The term does not include employe recruiting, training, liability insurance, bonding expenses and other costs. In any instance, a key to ensuring exemption is that the contractor exercises good faith in accepting the certificate. These services include both cleaning the building and repairing it. Second, section 2804 of the act gives the Pennsylvania Public Utility Commission the authority to require the unbundling of electric utility services, tariffs and customer bills to separate the charges for generation, transmission and distribution. What Services Are Subject to Pennsylvania Sales Tax? T also sells prepared seafood such as lobsters, clams and crabs which may be purchased for consumption on or off the premises. (b)Scope. (ii)Upgrading to include additional premium cable service. (6)An individual purchases the service of editing a home video and inserting music. Level 3 Commcns, LLC v. Commonwealth, 125 A.3d 832 (Pa. Cmwlth. However, the sale of candy, gum and prepackaged frozen milk and frozen water-based products is exempt from tax. Telecommunications service. What transactions are subject to the sales tax in Pennsylvania? The provisions of this 60.7 adopted July 22, 1994, effective July 23, 1994, 24 Pa.B. (B)Organized primarily for participants who are 18 years of age or younger or whose 19th birthday occurs during the year of participation or the competitive season, whichever is longer. The essential premise is that a contractor is performing a construction activity when they attach or affix TPP to become a permanent part of real estate, and they are performing a sales activity when they install TPP that does not become a permanent part of the real estate. Intrastate and interstate telecommunications services billed to PA service addresses except subscriber line charges and basic local residential phone service for residential use and payphone service. Example:Lobbyist L, located in Pittsburgh, received $1,000 from A company to perform lobbying activities. Pennsylvania Sales Tax Guide and Calculator 2022 - TaxJar (A)S public school prepares lunch at the school cafeteria which it sells to its students. When considering your own contracts for construction versus sales activities, it is prudent to rely on a combination of the lists in the regulations with the overall concept defined by the court. Spectrum Arena L.P. v. Only the charges for cleaning services are subject to sales tax. Electric vehicleA motor vehicle which operates solely by use of a battery or battery pack and which meets the applicable Federal motor vehicle safety standards. N is not an exempt organization under 32.21. The manufacturing, mining, processing or the public utility exclusion does not apply. The typing of the letter is incidental to the nontaxable service of folding, stuffing and attaching labels and therefore is not taxable. Candy and gumThe term candy refers to all types of preparations commonly referred to as candy, including hard candy, caramel, chocolate candy, licorice, fudge, cotton candy, caramel coated popcorn, chocolate coated granola bars and similar items. 190. L would use the same procedure at the time of filing his remaining quarterly sales tax returns during the calendar year. Examples are as follows: (i)A Maryland collection agency is hired to collect debts owed to a Maryland company which is doing business in this Commonwealth and the debtors are located in this Commonwealth. (a)Scope. The provisions of this 60.1 adopted January 8, 1993, effective January 9, 1993, 23 Pa.B. Example:The lease of offices within a building includes the providing of janitorial services for each of the offices. They should charge tax on any materials they used, however in most places labor is not taxed. If the agency collects a $100 debt and $20 penalty fee, the collection agency shall charge $1.20 tax ($20 x 6%) to the creditor. (a)Definitions. The distinction between construction and sales activities is crucial. The sales are not made from a vending machine. The sale of unprepared lobsters, clams and crabs from the separate department is not subject to tax. (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. Chapter 28 of 66 Pa.C.S. The sale of fish dinners by F is subject to tax including those sales made during the first 3 weeks of the calendar year. Because the service address of the collect call is located in a taxable county, the service is subject to the local tax. The term food and beverages includes all forms of food and beverages for human consumption. Gross feeTotal amount charged by the seller excluding sales tax. However, the sale of soft drinks, coffee and hand-dipped ice cream by B is subject to tax. (3)A Pennsylvania employer contacts a vendor outside this Commonwealth and accepts an employe for its location in this Commonwealth. (2)The following are examples of sales not subject to the local tax: (i)A business headquartered in a taxable county purchases electricity for its location in a nontaxable county. I also sells ice cream cakes, pies and prepackaged ice cream sundaes from a separate department and maintains separate sales records. Example:Gregg places a call from Philadelphia, Pennsylvania to Scranton, Pennsylvania. (1)The following comparable vehicle amounts will be used from October 1, 1991, through December 31, 1993: (2)The following comparable vehicle amounts will be used from January 1, 1994, through December 31, 1994: (3)The following comparable vehicle amounts will be used from January 1, 1996, through December 31, 1996: (4)The following comparable vehicle amounts will be used from January 1, 1997, through December 31, 1997: (5)The following comparable vehicle amounts will be used from January 1, 1998, through December 31, 1998: (6)The following comparable vehicle amounts will be used from January 1, 1999, through December 31, 1999: The provisions of this 60.14 adopted July 2, 1993, effective July 3, 1993, 23 Pa.B. The manufacturing, mining, processing, public utility, farming, dairying, agriculture, horticulture or floriculture exclusion does not apply. The provisions of this 60.11 adopted January 8, 1993, effective January 9, 1993, 23 Pa.B. Generally, a construction contractor will pay Sales or Use Tax on the purchase price of all property, including materials, equipment, components, and supplies, which it furnishes and installs in the performance of its construction contract, whether or not the items or services are transferred. (ii)A salesperson for a business located in a nontaxable county makes a cellular telephone call within a taxable county which is billed to the service address of the equipment located in the nontaxable county. If the lease is resold to another lessor in a taxable county, the new lessor is responsible for collecting the local sales tax on the remaining lease payments. (ii)An entity which is authorized to do business in this Commonwealth as a nonprofit corporation or unincorporated association under the laws of the Commonwealth, and which is organized and operated on a nonprofit basis, including the following associations or separately chartered auxiliaries thereof: (H)Civic. (i)Schools and churches. For example, not all plumbers charge by the hour. (B)Provides the purchaser additional, different or restructured information. Residents are required to eat one meal at the dining room each day and are automatically billed for this meal with their other charges. We take care of the payments, too. Building maintenance or cleaning services. (b)The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise: (2)Effective January 1, 1992, the purchase price of employment agency services subject to tax is the service fee if the employe costs are separately stated; otherwise, the gross fee is subject to tax. Immediately preceding text appears at serial pages (190210) to (190218) and (197837). Lobbying 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. For states with the highest taxes, Maine ranked fourth in the U.S. A new study shows that Mainers' tax burdens are one of the highest in the country. Building maintenance services include: (1)General maintenance of an apartment building. (ii)Pat, a resident of a taxable county, purchases a computer in a nontaxable county. Caras service address is defined as her billing address in this Commonwealth because her pager is designed to receive a telecommunications service from a mobile location. The vendor may also purchase credit reporting services from another provider which the vendor resells to its customer. The term does not include on-line, interactive information services to the extent that access to these services is accomplished through use of a dial-up or telephone line, or a wireless or direct-to-home satellite transmission. (i)The effective dates of the local tax in counties that have adopted the local tax are as follows: (ii)When a county adopts the local tax or changes the rate of the local tax, the Department will publish a notice in the Pennsylvania Bulletin and codify the change in subsection (a)(15)(i). (B)The dues or fees received by an organization or firm relating to the expenditure of time and expenses by an employe of the organization or firm in the performance of lobbying services for a member or purchaser. 178; reserved August 4, 2000, effective August 5, 2000, 30 Pa.B. (D)The sale at retail or use of a canned software maintenance contract constitutes a prepayment for services to tangible personal property and is subject to tax. This consideration is the value, expressed in terms of money, of the units or minutes that are reduced from the card upon each use. (F)Personal communications system (PCS) service. C also sells ice cream products such as hand-dipped ice cream by the cone, dish, pint or quart as well as coffee, milk shakes and ice cream sodas. (2)An operator of a vending machine selling taxable property, other than food or beverages, is required to collect and remit the local sales tax upon each individual sale of taxable property in accordance with the local tax bracket system.

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