Pennsylvania Act 1932-53 (session 1) — "EMERGENCY RELIEF SALES TAX ACT"

Act text

"EMERGENCY RELIEF SALES TAX ACT"
         Act of Aug. 19, 1932, Special Session 1, P.L. 92, No. 53     Cl. 72
                      Special Session No. 1 of 1932
                               No. 1932-53

                                  AN ACT

     To provide revenue by imposing an emergency sales tax for State
        purposes upon sales of tangible personal property by vendors,
        as herein defined; prescribing the method and manner of
        collecting such tax; and providing penalties.

        Section 1.  Short Title.--Be it enacted, &c., That this act
     shall be known, and may be cited, as the "Emergency Relief Sales
     Tax Act."
        Section 2.  Definitions.--The following words, terms, and
     phrases, when used in this act, shall have the meanings ascribed
     to them in this section, except where the context clearly
     indicates a different meaning.
        "Association."  Any partnership, limited partnership, or
     other form of unincorporated enterprise owned by two or more
     persons.
        "Department."  The Department of Revenue of this
     Commonwealth.
        "Gross Income."  The value proceeding or accruing from the
     sale of tangible personal property, including all receipts, cash
     and credits, without any deduction on account of the cost of the
     property sold, the cost of materials used, labor or service
     cost, interest or discount paid, or any other expense
     whatsoever.
        "Sale."  Any transfer, exchange or barter, in any manner or
     by any means whatsoever, for a consideration.
        "Vendor."  Every natural person, association, or corporation
     who or which sells tangible personal property to a consumer or
     to any person for any purpose other than for resale; but the
     term "vendor" shall not include farmers who sell their own farm
     products. Whenever used in any clause prescribing a fine or
     imprisonment, or both, the term "vendor," as applied to
     associations, shall mean the partners or members thereof, and,
     as applied to corporations, the officers thereof.
        The singular shall include the plural, and the masculine
     shall include the feminine and the neuter. Section headings
     shall not be deemed or construed to limit the text of the
     sections of this act.
        Section 3.  Imposition and Rate of Tax.--A State tax is
     hereby imposed and assessed upon sales of tangible personal
     property, at the rate of one per centum upon each dollar of the
     gross income derived from the sales of such property, during the
     six months period ending February twenty-eighth, one thousand
     nine hundred thirty-three, or any part of such period, except
     such sales of tangible personal property made to the United
     States Government upon evidence satisfactory to the department,
     and except such sales as are not within the taxing power of this
     Commonwealth under the Commerce Clause of the Constitution of
     the United States. Such tax shall be paid at the time and in the
     manner hereinafter provided.
        Section 4.  Vendors to File Return.--For the purpose of
     ascertaining the amount of tax payable under this act, it shall
     be the duty of every vendor, on or before the first day of
     April, one thousand nine hundred thirty-three, to transmit to
     the department, upon a form prescribed, prepared, and furnished
     by the department, a return, under oath or affirmation, of the
     gross income arising from sales of tangible personal property
     during the preceding six months' period ending February twenty-
     eighth, one thousand nine hundred thirty-three. Such return
     shall show such further information as the department may
     prescribe.
        Section 5.  Assessment and Payment of Tax.--Every vendor, at
     the time of making the return required under section four, shall
     compute and pay to the department the tax due to the
     Commonwealth by him for the preceding six months' period. The
     amount of all taxes imposed under the provisions of this act
     shall be due and payable at the time the return for such six
     months' period is required to be filed with the department by
     this act: Provided, however, That any vendor may, on or before
     the first day of April, one thousand nine hundred and thirty-
     three, pay one-half of such tax concurrently with the filing of
     such report, and may pay the remaining one-half of the said tax
     in a single instalment on or before the fifteenth day of May,
     one thousand nine hundred and thirty-three, but the amount of
     the tax not paid on or before the first day of April, one
     thousand nine hundred and thirty-three, shall bear interest at
     the rate of six per centum per annum until the fifteenth day of
     May, one thousand nine hundred and thirty-three, and twelve per
     centum per annum thereafter.
        (5 amended May 18, 1933, P.L.808, No.126)
        Section 6.  Retention of Records by Vendors.--Every vendor
     shall maintain and keep for a period of two years such record or
     records of tangible personal property sold within this
     Commonwealth by such vendor, together with invoices, bills of
     lading and other pertinent papers, as may be required by the
     department.
        Section 7.  Additional Assessment.--If the department is not
     satisfied with the return and payment of tax made by any vendor
     under the provisions of this act, it is hereby authorized and
     empowered to make an additional assessment of the tax due by
     such taxpayer, based upon the facts contained in the return or
     upon any information within its possession or that shall come
     into its possession. Promptly after the date of such additional
     assessment, the department shall give or send, by mail or
     otherwise, a notice thereof to the vendor, together with written
     notice of the time when and the place where the vendor may be
     heard on a petition for reassessment, as hereinafter provided.
        Section 8.  Estimated Assessment upon Failure to File
     Return.--If a vendor shall neglect or refuse to make any return
     and payment of tax required by this act, the department shall--
     if it deem it more conducive to the public interest, because of
     the supposed smallness of the debt or for any other reason, not
     to compel the exhibition of the vendor's account--make an
     estimated assessment of the probable amount of the account of
     the delinquent, together with a penalty of ten per centum of the
     amount so assessed. The department shall promptly thereafter
     give or send, by mail or otherwise, notice of such estimated
     assessment and penalty to the vendor against whom the same was
     made. There shall be no right to petition for reassessment or to
     appeal from any such estimated assessment made on account of the
     neglect or refusal of such vendor to make any return and payment
     of tax within a time prescribed by this act, but the department
     may permit the required return to be filed and permit a tax to
     be paid on the basis of such return, subject to investigation as
     in other cases. There shall be no right to appeal from the
     refusal of the department to permit the filing of a return in
     such a case.
        Section 9.  Estimated Additional Assessments upon Refusal to
     Permit Examination of Books.--The department shall have the
     power to make an estimated additional assessment, to which shall
     be added a penalty of ten per centum of the assessment, against
     any vendor who has filed any return as required by this act but
     who refuses to permit the department, or any duly authorized
     agent thereof, to examine his books of account and papers
     pertaining to the business for which the return was made. The
     department shall promptly thereafter give or send, by mail or
     otherwise, notice of such estimated additional assessment and
     penalty to the vendor, together with written notice of the time
     when and the place where the vendor may be heard on a petition
     for reassessment, as hereinafter provided.
        Section 10.  Payment and Due Date of Taxes Assessed by the
     Department.--All taxes and penalties resulting from any
     assessment made by the department shall be due and payable ten
     days after notice thereof is given or sent, by mail or
     otherwise, to the vendor against whom such assessment was made.
        Section 11.  Petition for Reassessment of Certain
     Assessments; Notice.--Any vendor against whom an additional
     assessment or estimated additional assessment shall be made by
     the department may petition for a reassessment. Notice of an
     intention to file such a petition or to appear and be heard
     shall be given to the department prior to the time the amount
     becomes due and payable, to wit, within ten days after notice of
     such assessment is given to the vendor as provided in this act.
     Petitions for reassessment may be filed with the department on
     or before the date designated in the notice of such assessment
     when hearings on such petitions will be held. The department
     shall hold such hearings in each county as may be necessary to
     hear and determine petitions for reassessment. Such hearings
     shall be held at the time and place indicated in the notice of
     such assessment given to the vendor. All petitions filed with
     the department shall set forth specifically and in detail the
     grounds upon which it is claimed such assessment is erroneous or
     unlawful, and shall be accompanied by an affidavit, under oath
     or affirmation, certifying to the correctness of the facts
     stated therein. If no petition for reassessment is filed with
     the department, the vendor may, in lieu thereof, appear at the
     hearing and present his petition orally, in which event all
     testimony or statements of facts shall be made under oath or
     affirmation.
        If the vendor is still dissatisfied with the finding of the
     department, he shall have the right to appeal to the court of
     common pleas of the proper county within twenty days after
     notice of the determination of the petition is given to him by
     the department. If any vendor shall fail to give due notice of
     an intention to petition for reassessment or to file a petition
     for reassessment after due notice of his intention to do so, or
     to appeal to the court of common pleas, within the time and in
     the manner herein set forth, the right to do so shall be forever
     barred, and any such vendor so failing shall not thereafter be
     permitted, in a suit for the recovery of such tax, to set up any
     ground of defense which might have been determined either by the
     department or the court of common pleas as aforesaid: Provided,
     That nothing contained in this section shall be construed to
     grant to any such vendor the right to petition for reassessment
     or to appeal from estimated assessments made by the department
     for neglect or refusal to make a return within the time
     prescribed by this act: And provided further, That every appeal
     to the court of common pleas under this section shall specify
     all the objections to the assessment, and any objection not
     specified in the appeal shall not be considered by the court. In
     all cases of petitions for reassessment and appeals, the burden
     of proof shall be on the petitioner or appellant, as the case
     may be.
        Section 12.  Enforcement; Rules and Regulations.--The
     department is hereby charged with the enforcement of the
     provisions of this act, and is hereby authorized and empowered
     to prescribe, adopt, promulgate, and enforce rules and
     regulations relating to any matter or thing pertaining to the
     administration and enforcement of the provisions of this act,
     and the collection of taxes, penalties and interest imposed by
     this act.
        Section 13.  Inquisitorial Powers of Department.--The
     department, or any agent authorized in writing by it, is hereby
     authorized to examine the books, papers, records and equipment,
     and to investigate the character of the business of any vendor,
     in order to verify the accuracy of any return made, or, if no
     return was made by such vendor, to ascertain and assess the tax
     imposed by this act. Every such vendor is hereby directed and
     required to give to the department, or its duly authorized
     agent, the means, facilities and opportunity for such
     examinations and investigations as are hereby provided and
     required. Any information gained by the department, as a result
     of any returns, investigations or verifications required to be
     made by this act, shall be confidential except for official
     purposes, and any person divulging such information shall be
     guilty of a misdemeanor, and, upon conviction thereof, shall be
     sentenced to pay a fine of not less than one hundred dollars
     ($100.00) or more than five hundred dollars ($500.00), and costs
     of prosecution, or to undergo imprisonment for not more than six
     months, or both.
        Section 14.  Department to Prepare and Furnish Returns.--The
     department is hereby authorized to prepare and have printed
     proper forms for returns to be distributed, upon request, to
     vendors.
        Section 15.  Collection of Delinquent Taxes.--The department
     shall call upon the Department of Justice to collect any taxes
     or penalties imposed under the provisions of this act which are
     not paid within thirty days from--
        (1)  The date the taxes are due and payable, if a return was
     filed.
        (2)  Ten days after notice of an additional or estimated
     additional assessment is given or sent to the vendor, as
     heretofore provided, if no notice of an intention to petition
     for reassessment or if no petition for reassessment is filed
     with the department.
        (3)  Ten days after notice of an estimated assessment is
     given or sent to the vendor, as heretofore provided.
        (4)  The date of the determination of a petition for
     reassessment by the department, if an appeal is not taken to the
     court of common pleas.
        Section 16.  Interest.--The tax imposed by this act shall
     bear interest at the rate of twelve per centum per annum from
     the date such tax is due and payable, except that any tax found
     due as the result of an appeal to the court of common pleas, or
     any appellate court, shall bear interest at the rate of six per
     centum per annum from the date the tax was originally due and
     payable. In cases of petitions to the department for
     reassessment, any balance finally found due by the department
     shall bear interest at the rate of twelve per centum per annum
     from ten days after notice of the additional or estimated
     additional assessment was given to the vendor by the department.
        Section 17.  Penalties.--(a)  Any vendor who shall
     intentionally neglect or refuse to make the return to the
     department, as required by this act, shall be guilty of a
     misdemeanor, and, upon conviction thereof, shall be sentenced to
     pay a fine of not less than one hundred dollars ($100.00) or not
     more than five hundred dollars ($500.00), and costs of
     prosecution, or to undergo imprisonment for not more than six
     months, or both, in the discretion of the court.
        (b)  Any vendor who shall refuse to permit the department, or
     any agent appointed in writing by it, to examine his books,
     papers, invoices and other records, in and upon any premises
     where the same are kept, to the extent necessary to verify any
     return made or to ascertain and assess the tax imposed by this
     act if no return was made, or who shall fail or refuse to
     maintain and keep for two years such records, invoices, bills of
     lading and other papers pertaining to the sale of tangible
     personal property as may be required by the department, shall be
     guilty of a misdemeanor, and, upon conviction thereof, shall be
     sentenced to pay a fine of not less than one hundred dollars
     ($100.00) or more than five hundred dollars ($500.00), or to
     suffer imprisonment of not more than six months, or both, in the
     discretion of the court.
        Section 18.  Disposition of Tax, Fines and Penalties.--All
     taxes, fees, interest, fines and penalties imposed by this act
     shall be paid into the State Treasury, through the department,
     and credited to the General Fund.
        Section 19.  Continuance of Existing Powers.--The powers
     conferred by this act upon the department relating to the
     administration or enforcement of this act shall be in addition
     to, but not exclusive of, any other powers heretofore or
     hereafter conferred upon the department by law.
        Section 20.  Purpose of Act to Provide Relief Funds.--The
     purpose of this act is to provide revenue to meet any
     appropriations for unemployment relief made by the extraordinary
     session of the General Assembly of one thousand nine hundred
     thirty-two.
        Section 21.  Vendors May Add Price of Tax to Retail Price of
     Property Sold.--Vendors may add to the retail price of any
     tangible personal property, the sale of which is subject to a
     tax hereunder, one per centum of the retail price, provided the
     retail price and the one per centum, representing the tax
     imposed by this act, be separately stated on price display
     signs, tickets and tags, and bills rendered in connection with
     the sale of such property.
        Section 22.  Emergency Tax in Addition to Existing Taxes.--
     The tax imposed by this act shall be in addition to any taxes
     now imposed by law upon vendors.
        Section 23.  Constitutionality.--It is the intention of the
     General Assembly, that, if this act cannot take effect in its
     entirety because of the judgment of any court of competent
     jurisdiction holding unconstitutional any part or parts thereof,
     the remaining provisions of the act shall be given full force
     and effect as completely as if the part or parts held
     unconstitutional had not been included herein.
        Section 24.  Effective Date.--This act shall become effective
     immediately upon its passage, and approval by the Governor.