Current through Register Vol. 54, No. 45, November 9, 2024
Section 46.7 - Nonresident contractors(a)Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise: Construction equipment and supplies-Property, such as cranes, dozers, graders, vehicles, hand tools, shoring lumber, lubricants, administrative supplies, and the like, which a construction contractor uses but does not install so as to become a part of the facility constructed within this Commonwealth. See §§ 31.11-31.16 (relating to construction contractors).
Prevailing market price-The price which an item will bring if offered for sale in the open market at the time and place of the taxable use within this Commonwealth.
(b)Construction equipment and supplies purchased within this Commonwealth. An item of construction equipment or supply purchased or leased and delivered within this Commonwealth by a nonresident contractor is subject to sales tax upon its purchase price. See § 33.2 (relating to scope).(c)Construction equipment and supplies purchased outside of this Commonwealth and used but not consumed in this Commonwealth. Construction equipment and supplies purchased outside of this Commonwealth by a non-resident construction contractor and which are used but not consumed in this Commonwealth for 7 days or less are exempt from tax. These purchases are subject to tax when the property is used in this Commonwealth beyond 7 days.(d)Construction equipment and supplies purchased outside of this Commonwealth and consumed in this Commonwealth. Construction equipment and supplies purchased outside of this Commonwealth by a nonresident contractor and consumed in this Commonwealth in the performance of a construction contract are subject to tax regardless of the length of time they are used in this Commonwealth.(e)Tax payment. When a nonresident construction contractor purchases or leases equipment and supplies from a supplier in this Commonwealth and delivery of the property is made within this Commonwealth, sales tax shall be paid upon the full purchase price to the supplier. In all other cases of taxable purchases or use of property within this Commonwealth, the nonresident contractor shall remit and pay tax directly to the Department. Contractors may obtain a use tax license number with which to remit the tax to the Department.(f)Use tax base. Use tax on taxable property shall be reported by the nonresident contractor either on the original purchase price paid or on the prevailing market price if the nonresident contractor purchased the equipment or supplies 6 months or longer prior to its first taxable use in this Commonwealth.(g)Fair rental value. Effective March 4, 1971, a nonresident construction contractor is no longer permitted to pay tax on the basis of fair rental value.(h)Credit against tax. A construction contractor may take credit against tax owed to the Commonwealth with respect to individual items of construction equipment and supplies used within this Commonwealth equal to the tax paid to another state upon the individual items of equipment by reason of a tax similar to the tax imposed by the Commonwealth. Credit will not be granted unless the other state grants similar tax relief to persons who have paid tax to the Commonwealth. A listing of the states granting similar relief may be obtained from the Department, Attention: Legal Bureau, upon request.The provisions of this §46.7 adopted September 29, 1972, effective 9/30/1972, 2 Pa.B. 1816; amended March 19, 1993, effective 3/20/1993, 23 Pa.B. 1322. This section cited in 61 Pa. Code § 46.9 (relating to financial institution security equipment).