We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. These documents are classified as Revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.
Q&A with the Pennsylvania Department of Revenue
Can you purchase raised flooring tax free as tangible personal property?
ABC converts a portion if its existing office building into a climate-controlled IT room. ABC hires a contractor to install raised flooring for proper functioning of the computer equipment. Can ABC purchase the raised flooring tax free as tangible personal property or would the DOR treat the flooring as a real estate structure subject to tax unless it qualified as exempt building, machinery & equipment under §7201(pp)?
Flooring does not qualify as building machinery and equipment and the purchase of the flooring is taxable whether purchased by the contractor or ABC.