PROPOSED RULEMAKING
[ 61 PA. CODE CH. 53 ]
Clothing
[39 Pa.B. 1209]
[Saturday, March 7, 2009]The Department of Revenue (Department), under section 270 of the Tax Reform Code of 1971 (TRC) (72 P. S. § 7270), proposes amendments to 61 Pa. Code Chapter 53. ''Wearing Apparel,'' by renaming the chapter ''Clothing,'' amending definitions, conforming the regulation to the statute, clarifying examples and the scope in § 53.1 to read as set forth in Annex A.
Purpose of Proposed Rulemaking
The proposed rulemaking will conform to Pennsylvania law and avoid any confusion for taxpayers paying Sales and Use Taxes. In addition, the proposed rulemaking codifies legislative changes relating to clothing patterns that were set forth in Act 23-2000 (See section 204(26) of the TRC 72 P. S. § 7204(26)).
Explanation of Regulatory Requirements
The major reason for this amendment is to bring the regulation into conformity with the statute. The current definition of ''wearing apparel'' in § 53.1(a)(7) (relating to clothing) when read in conjunction with § 53.1(b)(3) would appear to exempt from Sales and Use Tax the service of repairing, altering, mending, pressing, fitting, dyeing, laundering, drycleaning or cleaning of accessories, ornamental wear, formal day or evening apparel, fur articles and sporting goods and clothing. (The statute in section 201(k)(4) and (o)(4) of the TRC (72 P. S. § 7201(k)(4) and (o)(4)) excludes from the definition of ''sale at retail'' and ''use'' the repairing, altering, mending, pressing, fitting, dyeing, laundering, drycleaning or cleaning of only wearing apparel or shoes. Although ''wearing apparel'' is not defined in the TRC, it is referred to in section 7204(26) of the TRC as a subset of clothing. That section provides an exemption from tax for ''all vesture, wearing apparel, raiments, garments, footwear and other articles of clothing . . . but all accessories, ornamental wear, formal day or evening apparel, and articles made of fur . . . and sporting goods and clothing not normally used or worn when not engaged in sports shall not be excluded from tax.'' This language clearly indicates that wearing apparel is clothing since wearing apparel is followed by ''and other articles of clothing.'' The language also indicates that accessories, ornamental wear, formal day or evening apparel, fur articles, sporting goods and sporting clothing are not clothing or wearing apparel and the sale or use of these items are taxable.
To bring the regulation into conformity with the statute, the ''definitions'' subsection in § 53.1(a) has been amended. ''Clothing'' has been enhanced to mirror language in the statute in section 204(26) of the TRC. The definition for ''wearing apparel'' has been deleted.
The ''scope'' subsection has been amended in § 53.1(b) to remove language and insert clarifying language that mirrors language in the statute in sections 7201(k)(4) and (o)(4) and 7204(26) of the TRC. Language has been added in § 53.1(c) to clarify examples of accessories, ornamental wear, formal day or evening apparel, fur articles and sporting goods and sporting clothing. The word ''wearing apparel'' has been deleted from this subsection.
In subsection (d), the word ''patterns'' has been deleted to mirror the statute as a result of Act 23-2000.
Affected Parties
Taxpayers in this Commonwealth paying Sales and Use Tax may be affected by the proposed amendment although it is believed that the repairers, alterers, and the like, of accessories, ornamental wear, and the like, have been charging Sales Tax on these services.
Fiscal Impact
The Department has determined that the proposed amendment will have minimal fiscal impact on the Commonwealth.
Paperwork
The proposed amendment will not create additional paperwork for the public or the Commonwealth.
Effectiveness/Sunset Date
The proposed amendment will become effective upon final-form publication in the Pennsylvania Bulletin. The regulation is scheduled for review within 5 years of final publication. No sunset date has been assigned.
Contact Person
Interested persons are invited to submit in writing any comments, suggestions or objections regarding the proposed amendment to Mary R. Sprunk, Office of Chief Counsel, Department of Revenue, P. O. Box 281061, Harrisburg, PA 17128-1061, within 30 days after the date of the publication of this notice in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 20, 2009, the Department submitted a copy of this proposed amendment to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the House Committee on Finance and the Senate Committee on Finance (Committees). In addition to submitting the proposed amendment, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of this material is available to the public upon request.
The Committees may, at any time prior to the submittal of the final-form regulation, convey to the agency and the Commission, their comments, recommendations and objections to the proposed regulation. IRRC may, within 30 days of the close of the public comment period, submit to the agency and Committees any comments, recommendations and objections to the proposed amendment. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review of objections raised, prior to final publication of the amendment, by the Department, the General Assembly and the Governor.
THOMAS W. WOLF,
SecretaryFiscal Note: 15-446. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 61. REVENUE
PART I. DEPARTMENT OF REVENUE
Subpart B. GENERAL FUND REVENUES
ARTICLE II. SALES AND USE TAX
CHAPTER 53. [WEARING APPAREL] CLOTHING § 53.1. Clothing.
(a) Definitions. The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
* * * * * (2) Clothing--Articles, including vesture, wearing apparel, raiments, garments or shoes, which are designed to cover the human body as ordinary or everyday wear.
* * * * * [(7) Wearing apparel--Articles worn or carried on or about the human body including but not limited to clothing, accessories, ornamental wear, formal day or evening apparel, fur articles and sporting goods and sporting clothing.]
(b) Scope. [Scope shall conform with] This section applies to the following transactions:
* * * * * (3) A charge for the service of repairing, altering, mending, pressing, fitting, dyeing, laundering, drycleaning or cleaning [wearing apparel] shoes of any type or clothing is not subject to tax with the exception of the [following:
(i) Imprinting] imprinting or printing of clothing belonging to others.
[(ii) Alterations of formal day and evening apparel made at the time of sale by the seller.]
(4) A charge for the service of repairing, altering, mending, pressing, fitting, dyeing, laundering, drycleaning or cleaning accessories, ornamental wear, formal day or evening apparel, fur articles or sporting goods and sporting clothing, except for shoes of any type shall be subject to tax unless the purchaser is entitled to claim an exemption under the law.
(c) Examples [of wearing apparel]. The following are examples of [wearing apparel] accessories, ornamental wear, formal day or evening apparel, fur articles and sporting goods and sporting clothing:
* * * * * (d) Materials to be incorporated in clothing[--]. The sale of items such as fabrics, thread, knitting yarn, buttons, snaps and zippers, to be incorporated into clothing [may] are not [be] subject to tax[; however, the]. The sale of property such as needles, [patterns,] dress forms, scissors and thimbles, shall be subject to tax unless the purchaser is engaged in the business of manufacturing or of purchasing the items for resale.
[Pa.B. Doc. No. 09-412. Filed for public inspection March 6, 2009, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
