Current through Register Vol. 54, No. 42, October 19, 2024
(a)Property directly used. Where a single unit of property is put to use in two different activities, one of which is a direct use and the other of which is not, the property is not exempt from tax unless the water well driller makes use of the property more than 50% of the time directly in mining operations. The following are examples of equipment, machinery, parts and their accessories, and materials and supplies which when predominantly used directly by a water well driller in the operation of water well drilling are exempt from tax: (1) Equipment, machinery, parts and their accessories are back hoe, compressors, drilling rigs, generators, grout mixers, hand tools, trenching machines, pump hoist, pumps and controls, test and mud pumps, water treatment equipment, welders.(2)Materials and supplies are casings, chemicals, electrical wiring, grouting materials, lining, pipe, tanks, wire rope and wire screen.(b)Property not directly used. Equipment, machinery, parts and their accessories and materials and supplies predominantly used by water well drillers in an activity or operation other than water well drilling are subject to tax. Such activities or operations include the repair, maintenance or service to an existing water well system. With respect to these activities, a water well driller is a construction contractor. Example. Water well driller "A" performs the operation of repairing or replacing a water tank and water pump for customer "B." In performing these services, "A" is not engaged in the operation of water well drilling. "A" is required to pay a tax upon any materials he transfers or installs in conjunction with his repair activity. "A" is also required to pay a tax upon any equipment he uses to install the tank or pump which is not predominantly used in the operation of water well drilling.
The provisions of this §43.4 adopted October 20, 1972, effective 10/21/1972, 2 Pa.B. 1969. This section cited in 61 Pa. Code § 43.5 (relating to procedure for claiming the exemption).