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
Scenario: Claiming a refund for the sales tax paid on the purchase of wine which is then resold
Under Act 39, a wine expanded permit holder must charge sales tax to its customers on sales of wines. Additionally, the permit holder must also pay sales tax at time of purchase. The permit holder/retailer can then claim a refund from the Department for the sales tax it paid upon its purchase of the wine which it then resold. What will be the reporting mechanism for obtaining this refund from the Department?
In lieu of a refund, Wine Expanded Permit licensees may recover the tax paid on the original purchase price to the PLCB when filing their Sales, Use, and Hotel Occupancy Tax return with the Department. A licensee may claim a “Tax Paid Purchase Resold” (TPPR) credit on a sales tax return within three years of a purchase that is resold. The amount of the TPPR credit may not exceed the total amount due for that return or be less than zero.
Unused TPPR credits can be carried forward on subsequent returns. The licensee should keep documentation supporting the TPPR credit taken for at least three years from the date the return is filed.