Section 32.23. Sales to the Commonwealth or its political subdivisions and sales by the Commonwealth and its political subdivisions

(a) Sales of tangible personal property or services to the Commonwealth, or its instrumentalities or political subdivisions, are not taxable under section 204(12) of the TRC (72 P. S. § 7204(12)). Sales to the individual teachers, school principals or other employes are taxable. The transaction is exempt only when the sale is made and invoiced directly to the exempt entity.

(1) Instrumentalities include departments, boards, commissions of the Commonwealth and public authorities created under the Municipality Authorities Act of 1945 (53 P. S. § § 301—322). Other public authorities claiming an exemption status shall make application to the Department of Revenue, Harrisburg, Pennsylvania. Attention: Office of Chief Counsel.

(2) Political subdivisions include county, city, borough, incorporated town, township, school district, vocational school district and county institution district.

(b) The sale to or use of tangible personal property by construction contractors in the construction, reconstruction, remodeling, repair and maintenance of real estate, including buildings, roads, structures and bridges, for or on behalf of the Commonwealth or its political subdivisions, is subject to tax.

(c) The sale at retail of personal property, which is taxable according to the TRC, is subject to the imposition of tax. These entities are permitted to purchase items for resale using the ‘‘resale’’ exemption and they shall register with the Department for the charging, collecting and reporting of tax.

The provisions of this § 32.23 amended September 14, 1984, effective September 15, 1984, 14 Pa.B. 3366; amended November 15, 1991, effective November 16, 1991, 21 Pa.B. 5345. Immediately preceding text appears at serial pages (149581) to (149582).

Notation

Cross References

This section cited in 61 Pa. Code § 32.1 (relating to definitions); 61 Pa. Code § 47.17 (relating to lease or rental of vehicles and rolling stock); 61 Pa. Code § 58.13 (relating to carpeting and other floor coverings); and 61 Pa. Code § 60.20 (relating to telecommunications service).