Pennsylvania Sales Tax Information

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Drexel University and Philadelphia Health & Education Corporation, d/b/a Drexel University College of Medicine, are non-profit educational institutions exempt from Pennsylvania sales tax. However, the exemption to which we are entitled, only applies to the purchase of tangible personal property or services that are either used in an activity which bears a reasonable relationship to the purpose for which we exist (i.e. instruction, research or healthcare) or which is a material or supply used in the routine maintenance or repair of real estate used in an activity which bears a reasonable relationship to the purpose for which we exist. All other purchases made by Drexel and the College of Medicine are considered taxable.

 

Examples of Purchases exempt from PA sales tax

A.) Material or supplies used in routine maintenance or repair of real estate:

    Paint
    Paint Brushes
    Light Bulbs
    Cement for repointing
    Expendable mops or brushes
    Floor wax
    Carpet shampoos
    Replacement window panes
    Roofing tar
    Patch asphalt

    B.) Building Machinery and equipment:

    Air conditioning equipment
    Electrical equipment
    Plumbing equipment
    Communications equipment (voice, video, data, sound, master clock and noise abatement)
    Fire equipment
    Security and detection alarms
    Control systems (including energy management, traffic, parking lot and building access)
    Medical systems (including diagnosis, treatment equipment, medical gas, nurse call and doctor paging systems)
    Laboratory systems
    Cathodic protection systems
    Furniture
    Cabinetry
    Kitchen equipment
    Boilers
    Chillers
    Air cleaners
    Humidifiers fans
    Switchgear
    Pumps
    Telephones
    Speakers
    Horns
    Motion detectors
    Dampers
    Actuators
    Grills
    Registers
    Traffic signals
    Sensors
    Card access devices
    Guard-rails
    Medial devices
    Floor troughs and grates
    Laundry equipment

    C.) Utility services

    Fuel oil
    Petroleum products used in connection with exempt activities
    Steam
    Gas
    Electricity
    Telephone service

Examples of taxable Purchases

A.) Materials, supplies and equipment used and installed in the construction, reconstruction, remodeling, repair or maintenance of real estate which become a permanent part of the structure:

    Drywall
    Studs
    Furnace
    Bricks or building blocks
    Light fixtures
    Wall to wall carpeting
    Windows
    Conduit
    Wire
    Cable
    Pipes
    Fittings
    Pipe supports and hangars
    Guardrail posts
    Valves
    Underground tanks
    Receptacle boxes
    Junction boxes
    Insulation
    Ductwork and coverings

    B.) Tools and equipment used for routine maintenance:

    Hammers
    Saws
    Lawn mowers
    Snow blowers
    Floor polishers
    Small tools (screwdrivers, wrenches, pliers, etc)
    Corded or cordless drills
    Shovels, spades
    Off road vehicles (golf carts & ATVs)

We are also not exempt from the hotel occupancy tax on charges for occupancy of hotels, motels and similar establishments.

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