1.) Property and/or services will be used directly and predominately by pur-
chaser in performing purchaser's operation of:
A. Manufacturing
B. Mining
C. Dairying
D. Processing
E. Farming
F. Shipbuilding
G. Timbering
This exemption is not valid for property or services used in: (a) construct-
ing, repairing or remodeling of real property, other than real property used
directly in exempt operations; or (b) maintenance, managerial, administra-
tive, supervisory, sales, delivery, warehousing or other nonoperational
activities. This exemption is not valid for vehicles that are required to be
registered under the Vehicle Code, as well as supplies and repair parts for
such vehicles, the PTA tire fee, and certain taxable services.
2.) Purchaser is a/an:
+ A. Instrumentality of the commonwealth (to include public
schools and state universities).
+ B. Political subdivision of the commonwealth (includes townships
and boroughs).
+ l C. Municipal authority created under the Municipality Authorities
Acts.
+ l D. Electric cooperative corporations created under the Electric
Cooperative Law of 1990.
l E. Cooperative agricultural associations required to pay corpo-
rate net income tax under the Cooperative Agricultural
Association Corporate Net Income Tax Act (exemption not
valid for registered vehicles).
+ l F. Credit unions organized under Federal Credit Union Act or
Commonwealth Credit Union Act.
+ l G. U.S. government, its agencies and instrumentalities.
l H. Federal employee on official business (exemption limited to
hotel occupancy tax only. A copy of orders or statement from
supervisor must be attached to this certificate).
I. School bus operator (This exemption certificate is limited to
the purchase of parts, repairs or maintenance services upon
vehicles licensed as school buses by the PA Department of
Transportation).
J. Charter Schools and Community Colleges.
Renewable Entities beginning with “75”:
K. Religious Organization
L. Nonprofit Educational Institution
M. Charitable Organization
Permanent Exemptions beginning with the two numbers “75”:
N. Volunteer Fire Company
O. Relief Association
Special Exemptions
P. Direct Pay Permit Holder
Q. Individual Holding Diplomatic ID
R. Keystone Opportunity Zone (beginning with two digit 72
account number)
S. Tourist Promotion Agency
Exemptions for exempt organizations K through S are limited to purchases
of tangible personal property or services for use and not for sale. Exempt
organizations K - O above, shall have an sales tax exemption certificate
number assigned by the PA Department of Revenue. Exempt organiza-
tions K-O above, are not exempt for purchases used for the following: (1)
constructions, improvement, repair or maintenance or any real property,
except supplies and materials used for routine repair or maintenance of the
real property; (2) any unrelated activities or operation of a public trade or
business; or (3) equipment used to maintain real property.
3.) Property and/or services will be resold or rented in the ordinary course of
purchaser's business. If purchaser does not have a PA Sales Tax License
ID (8 digit number assigned by the department), complete Number 8
explaining why such number is not required. This exemption is valid for
property or services to be resold: (1) in original form; or (2) as an ingredient
or component of other property.
4.) Property or services will be used directly and predominately by purchaser
in the production, delivery or rendition of public utility services as defined
by the PA Utility Code.
This exemption is not valid for property or services used for the following:
(1) construction, improvement, repair or maintenance of real property,
other than real property used directly in rendering the public utility services;
or (2) managerial, administrative, supervisor, sales or other nonopera-
tional activities; or (3) vehicles, as well as supplies and repair parts for
such vehicles, unless the predominant use is for providing a common car-
rier service; or (4) tools and equipment used but not installed in mainte-
nance of facilities or direct use equipment. Tools and equipment used to
repair "direct use" property are exempt from tax.
5.) Vendor/seller purchasing wrapping supplies and nonreturnable containers
used to wrap property which is sold to others.
6.) Canned computer software or services to canned computer software
directly utilized in conducting the business of banking purchased by a
financial institution subject to the Bank and Trust Company Shares Tax
(Article VII) or the Mutual Thrift Institutions Tax (Article XV).
7.) Seller is required to collect tax on canned software accessed remotely
when the user is located in PA. If the billing address is a PA address, the
presumption is that all users are located in PA. Purchaser is responsible
for apportioning and remitting the tax due to each taxing jurisdiction and
must provide the total number of licenses purchased and the number of
those licenses used outside PA on Line 8. Please note that any unused
licenses will be considered to be allocated to PA.
8.) Other (Attach a separate sheet of paper if more space is required).
*
Employees or representatives of the Commonwealth traveling on
Commonwealth duty are exempt from any taxes on hotel stays or room rentals
imposed by local governments that are in addition to the 6% state tax and the
1% Philadelphia and Allegheny County hotel occupancy tax.
GENERAL INSTRUCTIONS
Those purchasers set forth below may use this form in connection with the claim
for exemption for the following taxes:
a. State and local sales and use tax;
b. PTA rental fee or tax on leases of motor vehicles;
c. Hotel occupancy tax (state 6%, Philadelphia 1%, Allegheny 1%) if
referenced with the symbol (●);
d. PTA fee on the purchase of tires if referenced with the symbol (+);
e. Vehicle rental tax (VRT).
EXEMPTION REASONS