Current through Register Vol. 54, No. 45, November 9, 2024
Section 9.3 - Additional services which are subject to tax(a) Beginning October 1, 1991, the services described in this section are subject to State and local sales tax. If the service was purchased prior to October 1, 1991, that portion of the contract relating to the value of the contract after October 1, 1991, is subject to tax. The manufacturing, mining, processing, farming, dairying and public utility exemptions do not apply to the purchase or use of these services. These services are presumed to be subject to Pennsylvania sales tax if the delivery or benefit of the service occurs in this Commonwealth. Use tax is due if the purchaser of the services does not pay tax to the vendor. (1)Lobbying services. Consideration paid to a "lobbyist" for "lobbying" as those terms are defined in the Lobbying Registration and Regulation Act (46 P. S. §§ 148.1-148.7b).(2)Adjustment, collection and credit reporting services. Consideration paid or retained for the adjustment of accounts, the collection of accounts receivable, credit investigations or the issuing of mercantile and consumer credit reports. Charges for providing credit card and collection services by a central agency, debt counseling or adjustment services for individuals or the billing or collection of an account by local exchange telephone companies are not subject to tax.(3)Secretarial and editing services. Charges for secretarial and editing services. Examples include: editing, letter writing, word processing, proofreading, filing, sorting, resume writing, typing, answering services and other secretarial duties. Charges for court reporting or stenographic services are not subject to tax.(4)Employment agencies services. Charges for providing employment services to an employer or an employe of the type performed by an employment agency, executive placing services or labor employment contractor. Charges by theatrical employment agencies, motion picture casting bureaus and services relating to the hiring of farm labor are not subject to tax.(5)Help supply services. Charges for providing temporary or continuing help services under a contract in which the helper is supervised by the person or business needing the help and the helper is on the payroll of the person or agency providing the help. Examples include: labor and manpower pools, employe leasing services, office help supply services, temporary help services, usher services, escort services, bartending services, modeling services and fashion-show model supply services. Charges for services relating to the hiring of farm labor are not subject to tax.(6)Computer program services. Charges for providing computer programming or computer software design and analysis. Examples include: services of the type provided by or through computer programming services, customer computer programming services or assistance services, computer code authors and free-lance computer software writers, software upgrading or modification, custom software programming, custom computer programs or system software developments, custom computer software systems analysis and design and custom application software programming.(7)Computer integrated systems design services. (i) Charges for developing or modifying computer software and packaging or bundling the software with computer hardware (computer and computer peripheral equipment) to create and market an integrated system for specific application, if the person rendering this service performs the following when providing the service:(A) The development or modification of the computer software.(B) The marketing of computer hardware.(C) Is involved in all phases of systems development from design through installation.(ii) Examples include: computer systems integration, computer network systems integrations, local area network (LAN) systems integration, office automation or systems analysis, computer systems value-added resellers, computer systems turnkey vendors, computer-aided design (CAD) systems services, computer-aided engineering (CAE) systems services or computer-aided manufacturing (CAM) system services.(8)Computer processing, data preparation or processing services. Charges for computer processing, data preparation or processing services. Examples include: providing processing and preparation of reports from data supplied by the customer or a specialized service, such as data entry services, and the like, making data processing equipment available on an hourly, time-sharing or other basis; computer time-sharing and leasing or rental of computer time; computer tabulating and calculating services; data entry, processing or verification services; key-punch services and optical scanning data services.(9)Information retrieval services. Charges for providing computer online information retrieval services. Examples include: data base information retrieval services; online information retrieval services, and the like.(10)Computer facilities management services. Charges for providing onsite computer facilities management services, controlling the operation of data processing facilities and similar services.(11)Other computer-related services. Charges for supplying computer-related services not described or included in paragraphs (6)-(10). Examples include: computer consulting services; software documentation services; disk, diskette or tape conversion; disk, diskette or tape recertification services; computer hardware and software requirement analysis services; testing and debugging services; software documentation services; software installation services; software training services; reformatting editing services and data recovery services.(b) Services described in this subsection are presumed to be subject to sales tax if the service is provided at a location or service address within this Commonwealth. Except for storage services, the following are presumed to be subject to use tax if the applicable sales tax was not charged at the time of the purchase of the service.(1)Disinfecting and pest control services. Charges for disinfecting, termite control, insect control, rodent control or other pest control services. Examples include: deodorizing rest rooms, sanitizing washrooms, cleaning rest rooms, exterminating or fumigating services.(2)Building maintenance and cleaning services. Charges for providing maintenance and cleaning services. Examples include: janitorial, maid or housekeeping service; office or interior building cleaning or maintenance service; window cleaning service; floor waxing service; lighting maintenance service, such as bulb replacement; furnace and air conditioning filter replacement; chimney and spouting cleaning service; acoustical tile cleaning service; venetian blind cleaning; building siding cleaning; cleaning and maintenance of telephone booths and cleaning and degreasing of service stations. The term "building maintenance or cleaning services" does not include repairs performed on buildings and other structures.(3)Lawn care services. Charges for lawn upkeep. Examples include: fertilization, weed control, lawn mowing, shrubbery trimming, lawn thatching, leaf raking and other lawn treatment services. Charges for landscaping, sodding and grass seeding of new lawns is not subject to tax.(4)Storage service. Charges for the storage of corporeal personal property within a building or similar structure, such as a storage shed, warehouse, truck or airport terminal, freezer locker, and the like. The term "corporeal personal property" includes goods, wares or merchandise; furniture and household goods; vehicles; furs; and farm products. Charges for the storage of personal property outside of a building or similar structure are not subject to tax. The term "storage" includes the storage of vehicles in a building. The term does not include parking in a parking garage.(5)Pay television. Charges for cable television, community antenna television and other distribution of television, video or radio services, with or without the use of wires, to subscribers or paying customers in excess of charges for the minimum or basic service. Charges relating to the installation or repair of the pay television services are subject to tax. Charges for the minimum or basic service as well as its installation and repair are not subject to tax.The provisions of this §9.3 adopted September 20, 1991, effective 9/21/1991, 21 Pa.B. 4290.