Section 503 - Refunds of state taxes, license fees, et ceteraThe Board of Finance and Revenue shall have the power, and its duty shall be,
(a) Except as hereinafter provided with respect to the Department of Transportation, to hear and determine any petition for the refund of taxes, license fees, penalties, fines, bonuses or other moneys paid to the Commonwealth and to which the Commonwealth is not rightfully or equitably entitled and, upon the allowance of any such petition, to refund such taxes, license fees, penalties, fines, bonuses or other moneys, out of the fund into which such taxes, license fees, penalties, fines, bonuses or other moneys were originally paid, or to credit the account of the person, association, corporation, body politic, or public officer entitled to the refund. So much of the proceeds of the various taxes, license fees, penalties, fines, bonuses or other moneys as shall be necessary for the payment of refunds out of the General or Special Funds shall be authorized by the Governor. In the case of moneys erroneously received by the Department of Transportation for motor licenses, permits, rental fees, penalties, fines, bonuses, or other moneys, the Department of Transportation may make direct refunds when necessary from funds appropriated therefor from the proceeds of the various motor license fees, etc. in the Motor License Fund, which appropriations are hereby authorized. A list of the final amounts of any such refunds or credits in excess of five thousand dollars ($5,000.00) hereafter granted for corporation taxes, the names of the corporations entitled thereto, and a brief summary of the reasons therefor, and a list of the names and final amounts of any such refunds or credits in excess of two hundred dollars ($200.00) hereafter granted to any persons or corporations shall be available for public inspection. The jurisdiction of the Board of Finance and Revenue to hear and determine a petition for refund, as aforesaid, shall not be affected or limited (I) by the fact that proceedings for review by the Board of Finance and Revenue or appeal to the Commonwealth Court, involving the same tax or bonus and period for which a refund is sought, are pending, have been withdrawn, or have been otherwise closed, provided such proceedings relate to other objections than those raised in the petition for refund, or provided such petition for refund is based upon a final judgment or decision of a court of competent jurisdiction holding the act of Assembly under which the petitioner paid the tax or other money involved to be unconstitutional or to have been erroneously interpreted, or (II) the fact that a petition for resettlement or reassessment involving the same tax or bonus and period and involving either the same or different questions than those raised in the petition for refund is pending has been withdrawn or has been otherwise closed. All such petitions for refund must be filed with the board within two years of the payment of which refund is requested, or within two years of the settlement in the case of taxes or bonus, whichever period last expired, except (1) Where a petition for refund filed by a domestic or foreign corporation involves the valuation of its capital, stock or in case of a foreign corporation the valuation of its tangible property for bonus purposes, or where a petition for refund filed by a bank, title insurance or trust company involves the valuation of its shares of stock, such petition must be filed with the board within one year of the payment of which refund is requested, or within one year of the settlement of such taxes or bonus, whichever period last expires.(2) When the estate upon which any transfer inheritance tax has been paid shall have consisted in whole or in part of a partnership, or other interest of uncertain value, or shall have been involved in litigation, by reason whereof there shall have been an overvaluation of that portion of the estate on which the tax has been assessed and paid, which overvaluation could not have been ascertained within said period of two years. In such case, the application for repayment shall be made to the Board of Finance and Revenue, within one year from the termination of such litigation, or ascertainment of such overvaluation.(3) When a court of record has adjudged a person to be legally dead, and thereafter, in the settlement of his or her estate, a transfer inheritance tax shall have been paid on such estate, and, after such payment has been made, such person shall reappear and the court shall rescind its order and adjudication. In such case, the petition to the board shall be filed within six months after the court shall have rescinded its order and adjudication.(4) Repealed. 1985, July 1, P.L. 78, No. 29, § 15, imd. effective.(b) To hear and determine any petition for the remission of penalties imposed and paid for failure to file any tax or bonus report within the time specified by law. If the board be satisfied that the failure to file the report was not wilful, that the report was actually filed within thirty days after it was due, and that the amount of tax or bonus, exclusive of penalty, admitted to be due, was paid to the Commonwealth within thirty days after the date when payment of the tax or bonus became due, it may allow the petition and refund the amount of the penalty, or any part thereof, out of the fund into which such penalty was originally paid, or credit the account of the person, association, corporation, body politic, or public officer by whom or which the penalty was paid, but no such petition shall be considered unless it be filed within two years after the penalty was paid. In the case of petitions for the remission of penalties imposed and paid for failure to file tentative reports for the year 1953 or fiscal years beginning in 1953 under section 4(b) of the Corporate Net Income Tax, as reenacted and amended, or undersection 4(b) of the Corporation Income Tax Law, as reenacted and amended, the board may allow such petitions if it is satisfied that the failure to file the tentative report was not wilful, that the tentative report was actually filed within one (1) year after it was due, and that the amount of tax required to be paid with such tentative report was paid to the Commonwealth within one (1) year after the date when payment of such tax became due, but no such petition shall be considered unless it is filed prior to the first day of July, 1956.
(c) To hear and determine petitions for the remission of penalties imposed but not paid for failure to file any tax or bonus report within the time specified by law. If the board be satisfied that the failure to file the report was not wilful, that the report was actually filed within thirty days after it was due, and that the amount of tax or bonus, exclusive of penalty, admitted to be due, was paid to the Commonwealth within thirty days after the date when payment of the tax or bonus became due, it may strike off the penalty, or any part thereof, but no such petition shall be considered unless it be filed within two years after the penalty was imposed. In the case of petitions for the remission of penalties imposed but not paid for failure to file tentative reports for the year 1953 or fiscal years beginning in 1953 under Section 4(b) of the Corporate Net Income Tax Act, as reenacted and amended, or under Section 4(b) of the Corporation Income Tax Law, as reenacted and amended, the Board may allow such petitions if it is satisfied that the failure to file the tentative report was not wilful, that the tentative report was actually filed within one (1) year after it was due, and that the amount of tax required to be paid with such tentative report was paid to the Commonwealth within one (1) year after the date when payment of such tax become due, but no such petition shall be considered unless it be filed prior to the first day of July, 1956.
(d) All petitions filed under this section shall be in such form as the board shall prescribe.(e) Any person, association, corporation, public officer, or other debtor, or the Commonwealth of Pennsylvania, aggrieved by the decision of the Board of Finance and Revenue on a petition for refund may appeal therefrom to the Commonwealth Court in the manner provided in section 1104 of this act for taking an appeal from the action of the Board of Finance and Revenue on a petition for review.(f) Notwithstanding any provisions of this act to the contrary, any refund of tuition or related fees due and owing from any State-owned educational institution shall be paid directly out of collections by such institution after approval by the comptroller of the Department of Education.(g) Notwithstanding any provisions to the contrary, any refund of charges and fees erroneously collected by and due and owing from any State-owned hospital, school or other institution maintained by the Department of Public Welfare or the Department of Health shall be paid directly out of collections by such institution after approval by the department comptroller.(h) Notwithstanding any provisions to the contrary, refunds of fees for licenses, permits and rentals erroneously collected by the departments, boards and commissions shall be paid directly out of collections by such departments, boards and commissions after approval by their respective comptrollers.(i) Notwithstanding any provisions to the contrary, the Board of Finance and Revenue shall not be required to make any refund which the Department of Revenue is empowered to make under section 1108 . 1929, April 9, P.L. 343, art. V, § 503. Amended 1931, June 1, P.L. 318, § 1; 1935, June 7, P.L. 283, § 2; 1939, June 6, P.L. 261, § 1; 1941, Aug. 5, P.L. 797, § 1; 1943, May 7, P.L. 229, § 1; 1945, May 15, P.L. 528, § 1; 1952, Jan. 19, P.L. (1951) 2178, § 1; 1956, March 6, P.L. (1955) 1218, § 1; 1957, July 13, P.L. 838, § 2; 1965, June 23, P.L. 134, §§ 1, 2; 1974, July 20, P.L. 546, No. 188, § 1, imd. effective; 1975, July 30, P.L. 143, No. 71, § 1, effective 7/1/1975; 1976, Dec. 2, P.L. 1220, No. 268, § 1; 1981, Dec. 17, P.L. 480, No. 140, § 1, imd. effective; 1982, Dec. 9, P.L. 1057, No. 248, § 1, imd. effective.