§ 3202 — Definitions
This text of Pennsylvania § 3202 (Definitions) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
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The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Class 1 venue."A stadium, arena, other structure or property at which concerts are performed and which is either of the following:
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The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Class 1 venue."A stadium, arena, other structure or property at which concerts are performed and which is either of the following:
(1) all of the following:
(i) located in a city of the first class or a county of the second class;
(ii) owned by any of the following:
(A) a municipality;
(B) an authority formed under Article XXV-A of the act of July 28, 1953 (P.L.723, No.230), known as the Second Class County Code; or
(C) a State-related institution; and
(iii) constructed in a manner in which the venue has a seating capacity of at least 10,000; or
(2) leased by or affiliated with a qualified charitable corporation for the performance of a concert.
(3) (Deleted by amendment).
"Class 2 venue."A stadium, arena or other structure at which concerts are performed and which is all of the following:
(1) Located outside the geographic boundaries of a city of the first class or a county of the second class.
(2) Constructed in a manner in which the venue has a seating capacity of at least 6,000.
"Class 3 venue."A stadium, arena, other structure or property which is any of the following:
(1) Located within a neighborhood improvement zone as defined in section 1902-B of the Tax Reform Code.
(2) Owned by or affiliated with a State-related institution.
(3) Owned by the Commonwealth and affiliated with the State System of Higher Education.
(4) (Deleted by amendment).
"Concert."A live performance of music in the presence of individuals who view the performance.
"Concert tour equipment."Includes stage, set, scenery, design elements, automation, rigging, trusses, spotlights, lighting, sound equipment, video equipment, special effects, cases, communication devices, power distribution equipment, backline, personal protective equipment and other miscellaneous equipment or supplies used during a concert or rehearsal.
"Maintained a place of business"or"maintaining a place of business."All of the following:
(1) Owning or renting at least 2,500 square feet of office, warehouse or other space within this Commonwealth for at least 24 consecutive months.
(2) Using an office, warehouse or other space located within this Commonwealth to sell, lease, manufacture or deliver tangible personal property or in the performance of a service.
(3) Employing individuals subject to Pennsylvania employment taxes in the sale, lease, manufacture or delivery of tangible personal property or in the performance of a service.
(4) If in the business of selling, leasing, manufacturing or delivering tangible personal property, maintaining an inventory of tangible personal property within this Commonwealth for the sale, lease or delivery to residents of or entities doing business in this Commonwealth.
(5) Regularly engaging in the business of leasing, selling or the delivery of tangible personal property or the performance of a service on a daily basis for residents of or entities doing business in this Commonwealth.
(6) Publishing the physical address at which the entity regularly conducts its lease, sale or delivery of tangible personal property or the performance of a service within this Commonwealth on the entity's publicly accessible Internet website and on the entity's invoices and contracts.
(7) Registering to do business within this Commonwealth with the Department of State.
"Minimum rehearsal and tour requirements."During a tour, all of the following must occur:
(1) The purchase or rental of concert tour equipment, in an amount of at least $2,500,000, from companies located and maintaining a place of business in this Commonwealth for use on the tour.
(2) A rehearsal at a qualified rehearsal facility for a minimum of 10 days.
(3) At least one concert performed at a class 1 venue.
(4) At least one concert performed at a venue which is located in a municipality other than the municipality in which the class 1 venue under paragraph (3) is located.
(5) The taxpayer shall maintain a place of business in this Commonwealth or employ a representative for the period beginning with the start date and ending with the award of tax certificates under section 3203(e) (relating to procedure).
"Pass-through entity."Any of the following:
(1) A partnership as defined in section 301(n.0) of the Tax Reform Code.
(2) A Pennsylvania S corporation as defined in section 301(n.1) of the Tax Reform Code.
(3) An unincorporated entity subject to section 307.21 of the Tax Reform Code.
"Pennsylvania live events industry."A qualified rehearsal facility, vendors of concert tour equipment located and maintaining a place of business in this Commonwealth, venues located in this Commonwealth and any promoter of live performances located and maintaining a place of business in this Commonwealth.
"Pennsylvania rehearsal and tour expenses."The sum of Pennsylvania rehearsal expenses and tour expenses. The term includes Pennsylvania rehearsal expenses and tour expenses paid prior to or during a rehearsal or tour.
"Pennsylvania rehearsal expense."A rehearsal expense which is incurred or will be incurred within this Commonwealth. The term includes:
(1) A payment which is made or will be made by a recipient to a person upon which withholding will be made on the payment by the recipient as required under Part VII of Article III of the Tax Reform Code or a payment which is made or will be made to a person that is required to make estimated payments under Part VIII of Article III of the Tax Reform Code.
(2) A payment which is made or will be made to a personal service corporation representing individual talent if the tax imposed by Article IV of the Tax Reform Code will be paid or accrued on the net income of the corporation for the taxable year.
(3) A payment which is made or will be made to a pass-through entity representing individual talent for which withholding will be made by the pass-through entity on the payment as required under Part VII or VII-A of Article III of the Tax Reform Code.
"Personal protective equipment."Includes equipment, services and supplies necessary to screen, test, shield or protect performers or individuals from health pathogens during a rehearsal or tour. The term includes costs associated with cleaning and disinfecting qualified rehearsal facilities and venues used on a tour and costs associated with complying with safety protocols established to combat COVID-19 and other health pathogens.
"Qualified charitable corporation."A nonprofit corporation which is or does all of the following:
(1) Is incorporated in and operates exclusively within this Commonwealth.
(2) Is organized exclusively for charitable, literary or educational purposes within the meaning of 26 U.S.C. § 501(c)(3) (relating to exemption from tax on corporations, certain trusts, etc.) to promote and support performances of the musical arts in Pennsylvania.
(3) Is recognized, or intends to apply for recognition, by the United States Internal Revenue Service as a tax-exempt organization under 26 U.S.C. § 501(c)(3).
(4) Employs a representative.
(5) Is registered by the department under section 3210(b) (relating to registrations).
"Qualified rehearsal and tour expense."All Pennsylvania rehearsal and tour expenses if Pennsylvania rehearsal expenses comprise or will comprise at least 60% of the total rehearsal expenses. The term shall not include more than $2,000,000 in the aggregate of compensation paid or to be paid to individuals or payment made or to be made to entities representing an individual for services provided in the tour.
"Qualified rehearsal facility."A rehearsal facility which does both of the following:
(1) meets at least six of the following criteria:
(i) Has had a minimum of $8,000,000 invested in the rehearsal facility in land or structure, or a combination of land and structure.
(ii) Has a permanent grid system with a capacity of 1,000,000 pounds.
(iii) Has a built-in power supply system available at a minimum of 3,200 amps without the need for supplemental generators.
(iv) Has a height from floor to permanent grid of a minimum of 80 feet.
(v) Has at least two sliding or roll-up access doors with a minimum height of 14 feet.
(vi) Has a perimeter security system which includes 24-hour, seven-days-a-week security cameras and the use of access control identification badges.
(vii) Has a service area with production offices, catering and dressing rooms with a minimum of 5,000 square feet.
(viii) Is located within one mile of a minimum of two companies which provide concert tour equipment for use on a tour.
(2) Is registered by the department under section 3210(a).
"Qualified tax liability."The liability for taxes imposed under Article III, IV, VI, VII, VIII, IX or XV of the Tax Reform Code. The term does not include tax withheld by an employer from an employee under Article III of the Tax Reform Code.
"Recipient."A taxpayer that has been awarded a tax credit under section 3203(e).
"Rehearsal."An event or series of events which occur in preparation for a tour prior to the start of the tour or during a tour when additional preparation may be needed.
"Rehearsal expense."All of the following which are incurred or will be incurred during a rehearsal:
(1) Compensation paid or to be paid to an individual employed in the rehearsal of the performance.
(2) Payment to a personal service corporation representing individual talent.
(3) Payment to a pass-through entity representing individual talent.
(4) The costs of construction, operations, editing, photography, staging, lighting, wardrobe and accessories.
(5) The cost of leasing vehicles.
(6) The cost of transportation of people or concert tour equipment to or from a train station, bus depot, airport or other transportation facility or directly from a residence or business entity.
(7) The cost of ground transportation of individuals for an entire tour if the ground transportation is purchased or will be purchased from a transportation company maintaining a place of business in this Commonwealth.
(8) The cost of ground or air transportation of concert tour equipment for an entire tour if the ground or air transportation is purchased or will be purchased from a transportation company maintaining a place of business in this Commonwealth.
(9) The cost of insurance coverage for an entire tour if the insurance coverage is purchased or will be purchased through an insurance agent maintaining a place of business in this Commonwealth.
(10) The cost of food and lodging.
(11) The cost of purchasing or renting concert tour equipment.
(12) The cost of renting a facility located in this Commonwealth for rehearsal if the rental is purchased or will be purchased through a qualified rehearsal facility.
(13) The cost of emergency or medical support services required to conduct a rehearsal.
"Rehearsal facility."As follows:
(1) A facility primarily used for rehearsals which is all of the following:
(i) Located within this Commonwealth.
(ii) A minimum of 20,000 square feet of column-free, unobstructed floor space.
(2) The term does not include a facility at which concerts are capable of being held.
"Representative."A person that meets all of the following criteria:
(1) Is authorized to communicate with the department on behalf of a qualified charitable corporation or taxpayer regarding an application submitted under section 3203(a).
(2) Maintains a place of business in this Commonwealth.
(3) Has substantial experience working with the Pennsylvania live events industry.
(4) Has employees who are registered with the Department of Revenue in accordance with section 1706-A.1 of the Tax Reform Code.
(5) Is registered by the department under section 3210(c).
"Start date."The date the first set of concert tour equipment arrives or is expected to arrive at a qualified rehearsal facility.
"State-related institution."As the term is defined in 62 Pa.C.S. § 103 (relating to definitions).
"Tax credit."The concert rehearsal and tour tax credit as provided under this chapter.
"Tax Reform Code."The act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
"Taxpayer."A musical performer or performers or a concert tour management company of a musical performer or performers subject to tax under Article III, IV or VI of the Tax Reform Code. The term does not include contractors or subcontractors of a musical performer or performers or of a concert tour management company of a musical performer or performers.
"Tour."A series of concerts performed or to be performed by a musical performer in more than one location. The term includes at least one rehearsal.
"Tour expense."As follows:
(1) Costs incurred or which will be incurred during a tour for venues located in this Commonwealth. The term includes all of the following:
(i) A payment which is made or will be made by a recipient to a person upon which withholding will be made on the payment by the recipient as required under Part VII of Article III of the Tax Reform Code or a payment which is made or will be made to a person who is required to make estimated payments under Part VIII of Article III of the Tax Reform Code.
(ii) The cost of transportation of people which is incurred or will be incurred while transporting to or from a train station, bus depot, airport or other transportation facility or while transporting directly from a residence or business entity located in this Commonwealth, or which is incurred or will be incurred for transportation provided by a company which is subject to the tax imposed under Article III or IV of the Tax Reform Code.
(iii) The cost of leasing vehicles upon which the tax imposed by Article II of the Tax Reform Code will be paid or accrued.
(iv) The cost of purchasing or renting facilities and equipment from or through a resident of this Commonwealth or an entity subject to taxation in this Commonwealth.
(v) The cost of food and lodging which is incurred or will be incurred from a facility located in this Commonwealth.
(vi) Expenses which are incurred or will be incurred in marketing or advertising a tour at venues located within this Commonwealth.
(vii) The cost of merchandise which is purchased or will be purchased from a company located within this Commonwealth and used on the tour.
(viii) A payment which is made or will be made to a personal service corporation representing individual talent if the tax imposed by Article IV of the Tax Reform Code will be paid or accrued on the net income of the corporation for the taxable year.
(ix) A payment which is made or will be made to a pass-through entity representing individual talent for which withholding will be made by the pass-through entity on the payment as required under Part VII or VII-A of Article III of the Tax Reform Code.
(2) The cost of concert tour equipment not used during rehearsal but used for an entire tour if the concert tour equipment is purchased or will be purchased from a company maintaining a place of business in this Commonwealth and subject to the tax imposed under Article III or IV of the Tax Reform Code. The term includes the cost of personal protective equipment which is purchased or will be purchased from a company located within this Commonwealth and used on the tour.
(3) The term does not include development cost, including the writing of music or lyrics.
"Venue."A class 1 venue, class 2 venue or class 3 venue.
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