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Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 12720.503. Imposition of additional tax

Current as of January 01, 2026 | Updated by Findlaw Staff

(a) Sales.--The governing body of a city may levy, assess and collect upon each separate sale at retail of tangible personal property or services, as defined in Article II of the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971,  1 within that city a tax on the purchase price.  The tax shall be collected by the vendor from the purchaser and shall be paid over to the Commonwealth as provided in this chapter.

(b) Use.--In any city which imposes the tax authorized in subsection (a), there shall be levied, assessed and collected upon the use, within that city, of tangible personal property purchased at retail, and on services purchased at retail, as defined in Article II of the Tax Reform Code of 1971, a tax on the purchase price.  The tax shall be paid over to the Commonwealth by the person who makes such use.  The use tax imposed pursuant to this chapter shall not be paid over to the Commonwealth by any person who has paid the tax imposed by subsection (a) or has paid the tax imposed by this subsection to the vendor with respect to such use.

(c) Hotel.--In any city which imposes a tax authorized in subsection (a), there shall be levied, assessed and collected an excise tax on the rent upon every occupancy of a room or rooms in a hotel in the city.  The tax shall be collected by the operator or owner from the occupant and paid over to the Commonwealth.

(d) Rate and uniformity.--

(1) The tax authorized by subsections (a), (b) and (c) may be imposed at a rate of either 0.5% or 1%.

(2) The tax imposed by subsections (a), (b) and (c) shall be uniform.

(e) Tax computation.--The tax imposed under subsections (a), (b) and (c) shall be computed as follows:

(1) In cities imposing the tax authorized by this section at the rate of 0.5%, the tax shall be computed as follows:

(i) If the purchase price is $1 or less, no tax shall be collected.

(ii) If the purchase price is $1.01 or more but less than $3.01, 1¢ shall be collected.

(iii) If the purchase price is $3.01 or more but less than $5.01, 2¢ shall be collected.

(iv) If the purchase price is $5.01 or more but less than $7.01, 3¢ shall be collected.

(v) If the purchase price is $7.01 or more but less than $9.01, 4¢ shall be collected.

(vi) If the purchase price is $9.01 or more but less than $10.01, 5¢ shall be collected.

(vii) If the purchase price is more than $10, 0.5% of each $10 of purchase price plus the above bracket charges upon any fractional part of a $10 increment shall be collected.

(2) In cities imposing the tax authorized by this section at the rate of 1%, the tax shall be computed as follows:

(i) If the purchase price is 50¢ or less, no tax shall be collected.

(ii) If the purchase price is 51¢ or more but less than $1.51, 1¢ shall be collected.

(iii) If the purchase price is $1.51 or more but less than $2.51, 2¢ shall be collected.

(iv) If the purchase price is $2.51 or more but less than $3.51, 3¢ shall be collected.

(v) If the purchase price is $3.51 or more but less than $4.51, 4¢ shall be collected.

(vi) If the purchase price is $4.51 or more but less than $5.51, 5¢ shall be collected.

(vii) If the purchase price is $5.51 or more but less than $6.51, 6¢ shall be collected.

(viii) If the purchase price is $6.51 or more but less than $7.51, 7¢ shall be collected.

(ix) If the purchase price is $7.51 or more but less than $8.51, 8¢ shall be collected.

(x) If the purchase price is $8.51 or more but less than $9.51, 9¢ shall be collected.

(xi) If the purchase price is $9.51 or more but less than $10.01, 10¢ shall be collected.

(xii) If the purchase price is more than $10, 1% of each $10 purchase price plus the above bracket charges upon any fractional part of a $10 increment shall be collected.

1  72 P.S. § 7201 et seq.
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Cite this article: FindLaw.com - Pennsylvania Statutes Title 53 P.S. Municipal and Quasi-Municipal Corporations § 12720.503. Imposition of additional tax - last updated January 01, 2026 | https://codes.findlaw.com/pa/title-53-ps-municipal-and-quasimunicipal-corporations/pa-st-sect-53-12720-503/

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