393 Rescission of Sales and Use Tax exclusion for tangible personal property used in the production of commercial motion pictures

Title 61--REVENUE

DEPARTMENT OF REVENUE

[ 61 PA. CODE CH. 32 ]

Rescission of Sales and Use Tax Exclusion for Tangible Personal Property Used in the Production of Commercial Motion Pictures

[38 Pa.B. 1148]
[Saturday, March 8, 2008]

   The Department of Revenue (Department) is adopting a final-omitted regulation under sections 201 and 204 of the Tax Reform Code of 1971 (72 P. S. §§ 7201 and 7204). The Department proposes to rescind § 32.38 (relating to commercial motion pictures) as set forth in Annex A.

Purpose of Regulation

   Sections 1 and 1.1 of Act 55 of 2007 (P. L. 373, No. 55) (72 P. S. §§ 7201(c)(8) and 7204(54)) repealed the exclusion from Sales and Use Tax for tangible personal property used in the production of commercial motion pictures. This rescission took effect on October 1, 2007, and necessitates the Department's regulations be amended immediately to reflect this change in the statute and remove the obsolete regulation.

Explanation of Regulatory Requirements

   As a result of the enactment of Act 55 of 2007, the Department adopted a final-omitted regulation for the timely rescission of § 32.38, which was obsolete on October 1, 2007.

Fiscal Impact

   The Department has determined that the rescission will have minimal fiscal impact on the Commonwealth.

Paperwork

   The rescission will not generate substantial paperwork for the public or the Commonwealth.

Effectiveness/Sunset Date

   The rescission will become effective upon publication in the Pennsylvania Bulletin. No sunset date has been assigned.

Contact Person

   The contact person for an explanation of the rescission is Mary R. Sprunk, Office of Chief Counsel, Department of Revenue, P. O. Box 281061, Harrisburg, PA 17128-1061.

Regulatory Review

   Under section 5.1(c) of the Regulatory Review Act (71 P. S. § 745.5a(c)), on January 18, 2008, the Department submitted a copy of the final-omitted rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance. A copy of this material is available to the public upon request. On the same date, the final-omitted rulemaking was submitted to the Office of Attorney General for review and approval under the Commonwealth Attorneys Act (71 P. S. §§ 732-101--732-506). Under section 5.1(j.1) of the Regulatory Review Act (71 P. S. § 745.5a(j.1)), on February 20, 2008, the final-omitted rulemaking was deemed approved by the House and Senate Committees. Under section 5.1(e) of the Regulatory Review Act (71 P. S. § 745.5a(e)), IRRC met on February 21, 2008, and approved the final-omitted rulemaking.

Findings

   The Department finds that the rescission of this regulation is necessary and appropriate for the administration and enforcement of the authorizing statute. Under section 204 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. § 1204), the Department also finds that the proposed rulemaking procedures in sections 201 and 202 of the CDL (45 P. S. §§ 1201 and 1202) are unnecessary because it is in the public interest to expedite this rescission that rescinds a statutory exclusion from Sales and Use Tax effective October 1, 2007.

Order

   The Department, acting under the authorizing statute, orders that:

   (a)  The regulations of the Department, 61 Pa. Code Chapter 32, are amended by deleting § 32.38 to read as set forth in Annex A.

   (b)  The Secretary shall submit this order and Annex A to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.

   (c)  The Secretary shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (d)  This order shall take effect upon publication in the Pennsylvania Bulletin.

THOMAS W. WOLF,   
Secretary

   (Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 38 Pa.B. 1228 (March 8, 2008).)

   Fiscal Note: 15-442. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 61. REVENUE

PART I. DEPARTMENT OF REVENUE

Subpart B. GENERAL FUND REVENUES

ARTICLE II. SALES AND USE TAX

CHAPTER 32. EXEMPTIONS

§ 32.38. (Reserved).

[Pa.B. Doc. No. 08-393. Filed for public inspection March 7, 2008, 9:00 a.m.]