Pennsylvania Revenue Department Clarifies Existing Sales Tax Nexus Law for Remote Sellers

News for Immediate Release

Dec. 1, 2011

Revenue Department Clarifies Existing Sales Tax Nexus Law for Remote Sellers

Harrisburg, Pa.The Department of Revenue today issued a Tax Bulletin to explain existing sales tax nexus law for remote sellers, clarifying the law and the department’s authority to require e-commerce and other out-of-state sellers with physical presence in Pennsylvania to collect sales tax.

“There have been many questions about when businesses are required to collect sales tax, and this bulletin spells out the law for remote sellers so they better understand how to comply,” said Revenue Secretary Dan Meuser. “It’s simply a matter of fairness under the existing law, and it’s essential that both e-commerce retailers with nexus and brick-and-mortar stores in Pennsylvania, many of which are small businesses employing thousands of Pennsylvanians with retail jobs, are treated equally.”

Sales and Use Tax Bulletin 2011-01 relies on in-state activity to establish nexus, as required by the U.S. Constitution, and provides examples of in-state activity sufficient to require sales tax registration and collection.

The Tax Reform Code nexus language has been in place for many years, but because taxpayers may not be familiar with it, the bulletin is being issued as a clarification of existing law.

This effort to address with retailers sales tax collection requirements coincides with a consumer-based approach to simplify use tax reporting and payment. Beginning in January 2012, individuals will be able to self-report use tax on the Pennsylvania personal income tax return.

“Our goal with regard to e-commerce and remote sellers is two-fold. On one hand, we’re clarifying nexus and informing retailers with nexus they should begin collecting sales tax. On the other hand we’re providing a clear and simple reporting mechanism for individuals to report and pay use tax annually, when sales tax wasn’t paid,” said Meuser. “The department’s uniform collection and enforcement of sales and use tax is key to fostering fair competition among e-commerce and brick-and-mortar businesses.”

Companies whose business activities establish nexus in Pennsylvania must become licensed to collect sales tax as soon as possible, but no later than by Feb. 1, 2012.

Companies with Pennsylvania nexus that fail to begin collecting sales tax as required by law may be pursued by a variety of escalating enforcement options over time, including audit, assessment, lien and/or referral of the case to a collection agency or the Office of Attorney General.

In cases where companies with nexus blatantly disregard the Tax Bulletin and their obligations to begin collecting sales tax, the department has the statutory authority to look back at least three years for audit and assessment purposes.

Companies with legal questions regarding establishment of nexus are encouraged to call the department’s Office of Chief Counsel at 717-787-1382. Companies with questions regarding sales tax registration, collection and reporting requirements are encouraged to call the business tax Taxpayer Service and Information Center at 717-787-1064.

Media contactElizabeth Brassell, 717-787-6960

Editor’s NoteSales and Use Tax Bulletin 2011-01, found on the department’s website,, clarifies the department’s authority to require ecommerce and other out-of-state sellers with physical presence in Pennsylvania to collect sales tax.

WBZH Pottstown Looking To Air Local Musicians And Bands

Here is a great opportunity for Tri-County area musicians looking to get some air time!

REQUEST: Local Musicians and Bands… WE WANT YOUR MUSIC TO AIR!
That’s right “The Buzz” wants to include and highlight more local music into our daily format.  If you are a local performer or band and have original material we want to hear it and help promote the great sounds generating from the tri-county area and beyond.  Please forward a copy of your CD, a bio and a schedule of your performance dates to the attention of our Programming Director at 224 Maugers Mill Rd, Pottstown, PA 19464.

UFO Sighting In Allentown – Reported To Mutual UFO Network

Today’s odd news…

Several people saw three unidentified flying objects (UFO’s) above the Sam’s Club in Allentown last night around 5:15pm.  Pictures were taken and eye-witness accounts were given.  The three objects were visible for about 40 seconds and were traveling in a straight line. 

To read the full story, click here:,0,7448115.story?track=rss

Luzerne County Teen Makes Christmas CD To Benefit NEPA Flood Victims

DURYEA, PA – This time of year, holiday CDs are a dime a dozen.  But for flood victims in Duryea, Jordan Marsh’s “A Little Christmas Guitar” is one of a kind, a priceless symbol of the Christmas spirit, an embodiment of what it means to give to others during the holiday season.

The 16-year-old, a volunteer member of Excelsior Hose Co. No. 2, saw the destruction of this summer’s floods firsthand, witnessing his neighbors and friends in Duryea throw away all of their most prized possessions after flood waters from Tropical Storm Lee and Hurricane Irene destroyed their homes and ravaged their properties.

Read more:

United States Postal Service Slowing Down To Save Money

USPS service delivery truck in a residential a...

Image via Wikipedia

So it looks like the Slowskys may have a new company to shill for soon.  Those DSL loving turtles may soon be able to work for the United States Postal Service (USPS).

According to recent revelations from the USPS, you will need to start mailing your letters a day or two earlier in order for them to arrive on time.  This spring, first-class mail will take a day or two longer to reach its destination.  About half of the mail processing centers in the US will be closed to save money.  You can forget mailing a letter and having it delivered the next day.  In addition, stamp prices will rise a penny to .45 cents, starting January 22nd.

Along with the mail processing center closings, 3,700 post office locations are slated to be closed and up to 100,000 USPS employees could be furloughed.  The USPS is billions of dollars in the red!

Eliminating Saturday mail delivery is still under consideration!  You can expect more fees and even slower delivery times for bulk mail and periodicals too!

Wal-Mart Exploring A New Line Of Smaller Stores, E-commerce and Green Technology

The latest brainchild from Wal-Mart is smaller stores.  There are two new concepts that Wal-Mart is rolling out.  The first is the Wal-Mart Express store which will be under 15,000 square-feet.  The second is the Wal-Mart Neighborhood Market which will be between 30,000 and 60,000 square-feet.  These smaller stores make more sense for urban environments or places where large tracts of land are unavailable to build a 185,000 Super-Center.

Wal-Mart is rolling out their new “Pick Up Today” service where customers can order online and pick up their merchandise at a local Wal-Mart.  This concept will help keep store sizes smaller.  Stocking less merchandise takes up less floor space.  It also cuts down on shipping costs and waiting time for customers.  You can pick up your merchandise the same day you order it online.

Finally, Wal-Mart is going greener.  Look for solar arrays, LED lighting and skylights in new and remodeled stores.

The Iconic Pottstown Cup Has Reopened!

For all you former diners from “The Cup” at 903 North Charlotte Street I have good news to report.  The open sign is lit, there are cars in the parking lot and customers are inside eating!

Drop on by and support a Pottstown business!  Buy local first!

I will be checking it out soon and posting a review!