Q&A with the Pennsylvania Department of Revenue

Can you purchase raised flooring tax free as tangible personal property?

Sep 25, 2014
Q:

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)?

A:

Flooring does not qualify as building machinery and equipment and the purchase of the flooring is taxable whether purchased by the contractor or ABC.

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These documents provide a summary of the answers provided by the Department of Revenue to the PICPA Committee on State Taxation at its annual question and answer session. 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 their specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.