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PA Act 45 Tax


Rumsey Electric abides by the Pennsylvania Sales and Use Tax Law, Act 45 of 1998, which states a contractor shall pay tax upon the purchase price of all property including materials, equipment, components and supplies which he furnishes and installs in the performance of his construction activities on a Real Estate structure. This tax shall be collected on all entities, including non taxable entities.

Pennsylvania Sales and Use Tax Regulation definition:

Contractor – Any person engaged in performing a construction contract or construction activities in the state of Pennsylvania. The term contractor includes prime contractors and subcontractors.
Construction Contract – A contract whether lump sum, cost plus, unit price or time and materials under which a person agrees to perform construction activities.
Construction Activities – Any activity resulting from an agreement or contract under which a contractor attaches, or affixes tangible personal property to Real Estate so as to become a permanent part thereof. In the absence of satisfactory evidence to the contrary, the following items, but not limited to, are presumed to become a permanent part of real estate.

Ballasts, lights
Blackboxes, electrical
Circuit breaker
Control Center (motor)

Electrical fixtures and outlets
Emergency lighting (built-in)
Heaters, baseboards 
Lighting fixtures, wires & switches


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