DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT [12 PA. CODE CH. 33] Commercial Motion Picture Sales; Tax Exemption Certificate [28 Pa.B. 1530] The Department of Community and Economic Development (Department), under the authority of section 204(54) of the Tax Reform Code of 1971 (TRC) (72 P. S. § 7204(54)), proposes to adopt Chapter 33 (relating to commercial motion picture sales tax exemption certificate). The purpose of the proposed regulation is to prescribe a Pennsylvania Exemption Certificate (FORM REV-1220) as the form to be used by producers of commercial motion pictures, who are qualified to take advantage of the Pennsylvania Sales and Use Tax exclusion provided by section 204(54) of the TRC.
Introduction
Section 204(54) of the TRC excludes from the tax imposed by section 202 of the TRC (Pennsylvania sales tax) the ''sale at retail to or use by a producer of commercial motion pictures of any tangible personal property directly used in the production of a feature-length commercial motion picture distributed to a national audience: Provided, however, that the production of any motion picture for which the property will be used does not violate any Federal or State law; and, Provided further, that the purchaser shall furnish to the vendor a certificate substantially in the form as the Department of Community and Economic Development may, by regulation, prescribe, stating that the sale is exempt from tax pursuant to this clause.'' Before qualified producers of commercial motion pictures can take advantage of the tax exclusion, they must know what form of certificate to use. Under section 204(54) of the TRC, only the Department may prescribe the type of certificate to be used. The purpose of the proposed regulation is to prescribe a Pennsylvania Exemption Certificate (FORM REV-1220) as the form to be used by producers of commercial motion pictures, who are qualified to take advantage of the Pennsylvania Sales and Use Tax exclusion provided by section 204(54) of the TRC.
Analysis
Section 33.1 (relating to required form) prescribes the type of certificate to be furnished by a qualified producer of commercial motion pictures to a vendor to comply with the statutory exclusion from the Pennsylvania Sales and Use Tax.
Fiscal Impact
The proposed regulation has no fiscal impact on the Commonwealth, political subdivisions or the public.
Paperwork
Because the certificate to be used by qualified producers of commercial motion pictures is a Pennsylvania Exemption Certificate (FORM REV-1220) which is already in use, the proposed regulation imposes no new or different paperwork requirements.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 17, 1998, the Department submitted a copy of this proposed regulation to the Independent Regulatory Review Commission (IRRC), the Chairperson of the House Business and Economic Development Committee and the Chairperson of the Senate Community and Economic Development Committee. In addition to submitting the proposed regulation, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Improving Government Regulations.'' A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Commission, if IRRC has objections to any portion of the proposed regulation, it will notify the Department within 10 days of the close of the Committees' review period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulation, by the Department, the General Assembly and the Governor of objections raised.
Effective Date/Sunset Date
The proposed regulation shall take effect upon final publication in the Pennsylvania Bulletin, and shall apply retroactively to May 7, 1997.
The proposed regulation will expire when section 204(54) of the TRC no longer requires the Department to prescribe the type of certificate to be used under this section.
Contact Person
Interested persons are invited to submit in writing any comments, suggestions or objections regarding the proposed regulation to Jill B. Busch, Deputy Chief Counsel, Department of Community and Economic Development, Room 530 Forum Building, Harrisburg, PA 17120, (717) 783-8452.
SAMUEL E. HAYES, Jr.,
SecretaryFiscal Note: 4-67. No fiscal impact; (8) recommends adoption.
Annex A TITLE 12. COMMERCE, TRADE AND LOCAL GOVERNMENT PART I. GENERAL ADMINISTRATION Subpart E. COMMERCIAL MOTION PICTURES CHAPTER 33. COMMERCIAL MOTION PICTURE SALES TAX EXEMPTION CERTIFICATE § 33.1. Form required.
Producers of motion pictures, who are qualified to take advantage of the Pennsylvania Sales and Use Tax exclusion provided by section 204(54) of the Tax Reform Code of 1971 (72 P. S. § 7204(54)), shall use a Pennsylvania Exemption Certificate (FORM REV-1220).
[Pa.B. Doc. No. 98-482. Filed for public inspection March 27, 1998, 9:00 a.m.]
