The sales and use tax information below was prepared by the Pennsylvania Department of Revenue:
Pennsylvania Sales and Use Tax on All-Terrain Vehicles (ATVs) and Snowmobiles
Sales of All-Terrain Vehicles (ATVs) and snowmobiles are subject to Pennsylvania sales tax at the rate of 6 percent of the purchase price when taken possession of or subsequently used in Pennsylvania. An additional 1 percent local sales tax applies to items purchased or used in Allegheny County. Two percent local tax applies to items purchased or first used in Philadelphia on or after Oct. 8, 2009. Prior to Oct. 8, 2009, the Philadelphia local tax was 1 percent. The dealer collects the sales tax at the time of the sale and forwards it, along with the application for title and registration, to the PA Department of Conservation and Natural Resources (DCNR). Services performed on ATVs and snowmobiles are also subject to state and local sales tax.
If an ATV or snowmobile is purchased without payment of Pennsylvania sales tax to the vendor, the purchaser is responsible for remitting the tax to the Commonwealth. This is called use tax. The use tax rate is the same as the sales tax rate, 6 percent. If the ATV or snowmobile is sold or used in Allegheny County, an additional 1 percent local sales tax applies. Two percent local tax applies to items purchased or first used in Philadelphia on or after Oct. 8, 2009. Prior to Oct. 8, 2009, the Philadelphia local tax was 1 percent.
Pennsylvania will grant credit for sales tax properly paid to another state on the purchase of an ATV or snowmobile if that state grants similar credit to Pennsylvania.
Sales and Use Tax Exemptions
Exemptions are allowed for ATV and snowmobile purchases or use by the U. S. Government; the Commonwealth and its political subdivisions; and ambassadors, ministers and consular officers of foreign governments. Purchases by organizations recognized by Pennsylvania as institutions of purely public charity are also exempt if the ATV or snowmobile is used in fulfilling the organization’s charitable purpose. In addition, there are exemptions for certain business activities, depending on how these items are used.
For ATVs, the most common business exemption claim is for farming. Only ATVs that qualify as multipurpose agricultural vehicles are eligible for the farming exemption. In order for an ATV to be a multipurpose agricultural vehicle, the vehicle must be exclusively used for agricultural purposes and must be operated on the farm, on roads adjoining the farm or between the purchaser’s farms, no more than two miles apart.
The Department of Revenue is authorized to review all sales tax exemption claims, and it regularly reviews exemption claims for ATVs and snowmobiles.
If a dealer is unable to provide documentation to support a purchaser’s exemption claim, the department will assess sales tax on the transaction against the dealer. Likewise, if the Department of Revenue reviews a purchaser’s records and determines the purchaser’s exemption claim is not valid, the purchaser will receive notification from the department by letter, assessing use tax on the transaction and requesting payment of the tax. Tax assessments include penalty and interest.
Pennsylvania Exemption Certificate
The purchaser of an ATV or snowmobile may claim a sales tax exemption by providing the dealer with a valid Pennsylvania Exemption Certificate (Rev 1220-AS). A certificate is valid when it is complete and discloses a basis for exemption consistent with the activity of the purchaser and the character of the property or service purchased.
False or fraudulent statements made with regard to exemption by the buyer or seller is a misdemeanor and may result in enforcement actions by the Department of Revenue.
Sales and Use Tax Questions
For more information regarding sales and use tax, please visit www.revenue.state.pa.us or call 717-787-1064 (Dept. of Revenue, Taxpayer Service and Information Center). Written inquiries may be sent to:
Pennsylvania Department of Revenue
Office of Chief Counsel
PO Box 281061
Harrisburg, PA 17128-1061