Section 240.4 - Tax expenditures (Adm. Code Section 624)(a) As used in this section, "tax expenditure" shall mean a reduction in revenue that would otherwise be collected by the Commonwealth as the result of an exemption, reduction, deduction, limitation, exclusion, tax deferral, discount, commission, credit, preferential rate or preferential treatment under any of the following: (1) Sales tax imposed by Article II of the act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971." (2) Personal income tax imposed by Article III of the "Tax Reform Code of 1971." (3) Corporate net income tax imposed by Article IV of the "Tax Reform Code of 1971." (4) Capital stock/franchise tax imposed by Article VI of the "Tax Reform Code of 1971."(5) Bank shares tax imposed by Article VII of the "Tax Reform Code of 1971." (6) Title insurance and trust companies shares tax imposed by Article VIII of the "Tax Reform Code of 1971." (7) Insurance premiums tax imposed by Article IX of the "Tax Reform Code of 1971." (8) Utility gross receipts tax imposed by Article XI of the "Tax Reform Code of 1971." (9) Liquid fuels and fuel use taxes.(10) Realty transfer tax imposed by Article XI-C of the "Tax Reform Code of 1971." (11) Cigarette tax imposed by Article XII of the "Tax Reform Code of 1971." (12) Mutual thrift institutions tax imposed by Article XV of the "Tax Reform Code of 1971." (13) Oil company franchise tax imposed by 75 Pa.C.S. Ch. 95 (relating to taxes for highway maintenance and construction). (14) Motor carriers road tax imposed by 75 Pa.C.S. Ch. 96 (relating to motor carriers road tax). (15) Inheritance tax imposed by Article XXI of the "Tax Reform Code of 1971." (16) Unemployment compensation contributions imposed by the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L. 2897, No. 1), known as the "Unemployment Compensation Law." (17) Utility realty tax imposed by Article XI-A of the "Tax Reform Code of 1971." (18) Gross receipts tax on motor carriers imposed by the act of June 22, 1931 (P.L. 694, No. 255), referred to as the Motor Carriers Gross Receipts Tax Act. (19) Marine insurance underwriting profits tax imposed by the act of May 13, 1927 (P.L. 998, No. 486), entitled "An act imposing a tax for State purposes on marine insurance underwriting profits, and providing for the collection of such tax." (20) Co-operative agricultural association corporate net income tax imposed pursuant to the act of May 23, 1945 (P.L. 893, No. 360), known as the "Co-operative Agricultural Association Corporate Net Income Tax Act." (21) Electric co-operative corporation tax imposed by the act of June 21, 1937 (P.L. 1969, No. 389), known as the "Electric Cooperative Corporation Act." (22) Malt beverage tax imposed by Article XX of the "Tax Reform Code of 1971." (23) Spirituous and vinous liquors tax imposed by the act of December 5, 1933 (Sp.Sess., P.L. 38, No. 6), known as the "Spirituous and Vinous Liquor Tax Law." (24) Vehicle registration fees imposed pursuant to 75 Pa.C.S. (relating to vehicles).(25) Motorbus road tax imposed by 75 Pa.C.S. Ch. 98 (relating to motorbus road tax). (26) General exemptions: (i) The exemptions granted pursuant to section 15 of the act of March 31, 1949 (P.L. 372, No. 34), known as "The General State Authority Act of one thousand nine hundred forty-nine." (ii) The exemption granted pursuant to 40 Pa.C.S. § 6307(b) (relating to exemptions applicable to certificated professional health care service corporations).(iii) The exemptions granted pursuant to section 23 of the act of May 28, 1937 (P.L. 955, No. 265), known as the "Housing Authorities Law." (iv) The exemptions granted pursuant to section 15 of the act of May 2, 1945 (P.L. 382, No. 164), known as the "Municipality Authorities Act of 1945." (v) The exemptions granted pursuant to section 15 of the act of June 5, 1947 (P.L. 458, No. 208), known as the "Parking Authority Law." (vi) The exemptions granted pursuant to section 17 of the act of April 18, 1949 (P.L. 604, No. 128), known as the "State Highway and Bridge Authority Act." (vii) The exemptions granted pursuant to section 14 of the act of July 5, 1947 (P.L. 1217, No. 498), known as the "State Public School Building Authority Act." (27) Statutory exemptions, reductions, deductions, limitations, exclusions, tax deferrals, discounts, commissions, credits, preferential rates or preferential treatments established after the effective date of this section.(b) The term shall not include any statutory exemption, reduction, deduction, limitation, exclusion, tax deferral, discount, commission, credit, preferential rate or preferential treatment for local tax purposes.(c) At the time required for the submission of the budget to the General Assembly under section 613, the Governor shall also submit to the General Assembly a tax expenditure plan for not less than the prior fiscal year, the current fiscal year, this budget year and the four (4) succeeding fiscal years, which plan shall include the following information:(1) The actual or estimated revenue loss to the Commonwealth caused by each tax expenditure in each fiscal year covered by the plan.(2) The actual or estimated cost of administering and implementing each tax expenditure for each fiscal year covered by the plan.(3) The actual or estimated number and description, in reasonable detail, of taxpayers benefiting from each tax expenditure in each fiscal year covered by the plan.(4) The purpose of each tax expenditure in terms of desired accomplishments.(d) The Governor may also submit to the General Assembly an assessment of each tax expenditure based on whether or not each tax expenditure has been successful in meeting the purpose for which it was enacted and on whether each tax expenditure is the most fiscally effective means of achieving its purpose.(e) Contents of the tax expenditure plan shall be as follows: (1) For the first fiscal year in which a tax expenditure plan is required, the plan need only provide the required information for tax expenditures itemized in subsection (a)(1), (5), (6), (7), (12), (16) and (19).(2) For the second year in which a tax expenditure plan is required, the plan need only provide the required information for the tax expenditures itemized in subsection (a)(1), (3), (4), (5), (6), (7), (8), (12), (16), (17), (19), (20) and (21).(3) For the third year in which a tax expenditure plan is required, the plan need only provide the required information for the tax expenditures itemized in subsection (a)(1), (2), (3), (4), (5), (6), (7), (8), (9), (12), (13), (14), (16), (17), (18), (19), (20), (21) and (24).(4) For the fourth year in which a tax expenditure plan is required, the plan shall provide the required information for all tax expenditures itemized in subsection (a).(f) All data in the tax expenditure plan outlined in subsection (c) shall be revised and updated every two years.(g) The Secretary of the Budget may obtain the information required for compliance with this section from all State agencies in like manner as provided for budget information under this article.(h) The Secretary of the Budget is hereby authorized to obtain such data as may be needed for compliance with this section from the appropriate local government officials.(i) The General Assembly recognizes that the exemption from taxation accorded religious institutions is founded on principles of church-state separation, and nothing in this section is intended to express or imply that tax exemption constitutes subsidization of the religious activities of such institutions, nor shall this section be construed to authorize the imposition of any additional requirements on such institutions relating to tax exemption.(j) The initial two (2) tax expenditure plans required under this section shall be deemed in compliance with this section if the tax expenditure plan consists, at a minimum, of the tax expenditures reported by the Governor to the General Assembly for fiscal year 1992-1993.1929, April 9, P.L. 177, No. 175, art. VI, § 624, added 1992, Dec. 18, P.L. 1638, No. 180, § 1, imd. effective.