61 Pa. Code § 60.11 - Credit reporting services
(a)
Definitions. The following words and terms, when used in this
section, have the following meanings, unless the context clearly indicates
otherwise:
Administrative supplies-
(i) Tangible personal property which is
consumed in one of the following manners:
(A)
Used but not transferred in the performance of this service.
(B) Transferred by a vendor to another party
in connection with the performance of the vendor's services when the property
is not a critical element of the service.
(ii) Examples of the property include sales
invoices, receipts, contracts, estimate sheets, confirmations or other similar
items.
Credit information-Information relating to the history of financial transactions of a person or other entity including the description of the business, names of owners, related companies, financial statements, income, sales, timeliness of payments, competition, pending litigation matters, credit history, credit rating, credit verification or information from public records.
Credit investigations-The obtaining of credit information.
Credit reporting services-The providing of credit information by hard copy, electronic media, verbal or another method of transferring credit information.
(b)
Scope. Effective October
1, 1991, the sale at retail or use of credit reporting services is subject to
tax. Credit reporting services are subject to tax when the information or
report is delivered to or received at a location in this
Commonwealth.
(c)
Examples
of taxable services. The following are examples of taxable credit
reporting services:
(1) Providing mercantile
or consumer credit information.
(2)
Performing of credit investigations.
(3) Providing a credit report by a credit
reporting bureau.
(4) Verifying of
credit by a credit clearinghouse or credit bureau.
(d)
Examples of services which are
not credit reporting services. The following are examples of services
which are not credit reporting services:
(1)
Processing loan applications and the computing of loan availability.
(2) Performing audits and preparation of
financial statements and annual reports.
(3) Performing property or real estate
appraisals.
(4) Performing personal
and background investigations which are not in connection with credit
investigations.
(e)
Purchase price. The total amount charged for providing credit
reporting services is subject to tax.
(f)
Exclusions.
(1) Credit reporting services are exempt if
purchased by qualified charitable organizations, volunteer fire companies,
religious organizations and nonprofit educational institutions, except if used
in an unrelated trade or business. The services are also exempt if purchased by
the Federal government or its instrumentalities; the Commonwealth, its
instrumentalities or subdivisions including public school districts. The
manufacturing, mining, processing, public utility, farming, dairying,
agriculture, horticulture or floriculture exclusion does not apply.
(2) The vendor of credit reporting services
may claim the resale exemption upon its purchase of tangible personal property
which is transferred to its purchaser or a third party in the performance of
its credit reporting services. The vendor may also purchase credit reporting
services from another provider which the vendor resells to its customer. The
vendor may not claim the resale exemption upon its purchase of administrative
supplies or the purchase of other taxable services which it may use in the
performance of its credit reporting services.
(i) The following are examples of property or
services which may be purchased exempt for resale when used in the performing
of credit reporting services:
(A) Credit
reporting information which is purchased for the purpose of selling credit
reporting services.
(B) Property
transferred to the purchaser which contains credit information, including
envelopes.
(C) Copying charges
incurred in the obtaining of credit information documents which are transferred
to the purchaser.
(ii)
The following are examples of property or services which are taxable when used
in the performing of credit reporting services:
(A) Administrative supplies.
(B) Investigative reports or documents used
in the obtaining of credit information which are not transferred to the
purchaser.
(C) Computer services
and equipment which are used in the performance of credit reporting services
including the charge for the transmitting of information to the
purchaser.
(D) Copying charges
incurred in the obtaining of credit information documents which are not
transferred to the customer.
Notes
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