All Pennsylvanians To Pay More, GOP Gleans From Report On Wolf’s Tax Plan

HARRISBURG, PA — Democratic Gov. Tom Wolf’s tax plan would hit all income classes and amount to a “huge tax grab,” said a leading Republican lawmaker.

But John Hanger, Wolf’s policy director, on Friday disputed the Independent Fiscal Office report’s main conclusions. Wolf’s plan “would benefit most Pennsylvania homeowners making up to $100,000 and renters up to $50,000,” Hanger said.

The report released this week makes a key observation when it says all groups would pay more — including a small net increase for the lowest income group, those making $25,000 or less annually, said House Appropriations Chairman Bill Adolph, R-Delaware County.

That “directly contradicts” claims by Wolf and testimony of top staffers at appropriations meetings, Adolph said.

Read more: http://triblive.com/state/pennsylvania/8239869-74/tax-wolf-budget#ixzz3YKajHAhL
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Wolf’s Sales Tax Proposal To Include More Goods, Services

HARRISBURG, PA — The Wolf administration this morning released estimates of the new revenue the state expects to bring in by expanding the 6 percent sales tax to include more items and services.

Gov. Tom Wolf’s budget proposal, which is the subject of ongoing hearings by the House and Senate appropriations committees, also would raise the rates of the sales and personal income taxes, while cutting corporate income taxes and providing homeowners with relief from school property taxes.

Applying a proposed 6.6 percent sales tax to a host of new purchases would bring the state approximately $1.16 billion in the fiscal year beginning July 1 and $2.97 billion in the following year, according to a memo released this morning by the Department of Revenue.

Read more:

http://www.post-gazette.com/news/state/2015/03/18/Wolf-s-sales-tax-proposal-to-include-more-goods-services-pennsylvania/stories/201503180188

Evaporating Cap On Pa. Gasoline Taxes To Offset Drops At Pump

Map of Pennsylvania, showing major cities and roads (Photo credit: Wikipedia)

If gasoline prices continue to hover where they are, Ron Stover might get rid of his Dodge Durango.

These days, the dark silver sport utility vehicle with its V8 engine costs $85 to fill.

“I haven’t filled it up in I don’t know how long,” said Stover, 39, of the North Side.

Pennsylvania drivers pay less for a gallon of gas than they did a year ago, but planned changes to a state tax could increase the cost down the road, even as experts predict prices nationwide might continue to drop.

Read more: http://triblive.com/state/pennsylvania/6977771-74/tax-taxes-gallon#ixzz3HpbJFanD
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Pennsylvania Tax Burden Ranks 10th Nationally

Map of Pennsylvania (Photo credit: Wikipedia)

Pennsylvanians’ state and local tax burden reached its lowest point in more than a decade in 2011, but it still climbed to rank as the nation’s 10th most onerous, up two spots from the year before, an analysis released this week shows.

The Washington-based Tax Foundation said Pennsylvanians shelled out $4,374 per capita in state and local taxes in 2011, or 10.3 percent of their per-capita income of $42,268. About 10.5 percent of income went toward state and local taxes in 2010, the foundation said.

“This trend was largely driven by the growth of income,” said Tax Foundation economist Liz Malm, explaining the slight decline.

About 27 percent of Pennsylvanians’ tax money went to other states. Aside from sales, excise, income, corporate and other taxes paid in other states, the Tax Foundation factors what it calls tax exporting.

Read more: http://triblive.com/news/adminpage/5882443-74/tax-state-taxes#ixzz2y3z5waOg
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CRIZ Program Could Bring Biz To Wilkes-Barre

Map of Pennsylvania highlighting Luzerne County (Photo credit: Wikipedia)

WILKES-BARRE — The state has a new economic development tool with the city’s name on it.

In truth, the City Revitalization and Improvement Zone program applies to seven other third-class cities and Delaware County, the applicant for the city of Chester. The program is included in a tax-reform package signed into law last July by Gov. Tom Corbett.

The program allows the eligible cities to use tax money generated in designated zones to pay down the debt taken on for job creation and economic-development projects.

Drew McLaughlin, Wilkes-Barre’s municipal affairs manager, said the city has been researching the CRIZ program for a while.

Read more: http://timesleader.com/news/local-news/953436/CRIZ-program-could-bring-biz-to-Wilkes-Barre

Pennsylvania Unveils Bid To Privatize Lottery

English: Pennsylvania Lottery official logo, which includes tagline, “Benefits Older Pennsylvanians. Every Day.” (Photo credit: Wikipedia)

HARRISBURG, Pa. (AP) – The Britain-based company that runs the national lottery in the United Kingdom is pledging to produce more than $34 billion in profits over 20 years if it wins a contract to manage the Pennsylvania Lottery, Gov. Tom Corbett‘s administration said Tuesday as it moves toward privatizing the state’s $3.5 billion system.

The administration said it will weigh the offer by Camelot Global Services, which it said is good until Dec. 31, and is the only one it said it will receive after two other companies that it would not identify dropped out.

The revelation of the bid was the first time that Corbett has disclosed the identity of an interested party since it announced in April that it would explore privatizing the lottery in an effort to raise more revenue for the programs for the elderly that are supported by the Pennsylvania Lottery. Other states, such as Indiana and New Jersey, have shown no need to keep such secrets while exploring private lottery management contracts.

Read more:  http://readingeagle.com/article.aspx?id=430433

Allentown’s Historic Americus Hotel Could Get NIZ Tax Help

The PPL Building (seen here in the distance) is the tallest building in Allentown, Pennsylvania. (Photo credit: Wikipedia)

Editor’s note:  This is great news! Revitalizing our Pennsylvania cities is important!

Vacant and dilapidated the past nine years, Allentown’s 12-story Americus Center Hotel got good news this week when the state decided the city can alter the borders of its downtown arena zone to include the historic hotel.

Any changes to the borders of its Neighborhood Improvement Zone, Pennsylvania Department of Revenue officials say, must be made before bonds are sold to fund the $220 million arena complex.

With the arena authority preparing to sell bonds next month, it means city officials will have to work fast, said Sara Hailstone, Allentown director of community and economic development.

“We will need to follow up with the Department of Revenue and work through the details,” Hailstone said. “This is a great opportunity for the city.”

Read more: http://www.mcall.com/news/local/allentown/mc-allentown-pa-arena-niz-20120819,0,6877859.story

Pennsylvania’s Online Shoppers Soon Will Have To Pay Sales Tax

Tax-free online purchases will be curtailed in Pennsylvania starting next month, but activists pushing for a federal law say much more needs to be done to address the issue of tax-free Internet shopping, and the millions in sales tax that states are missing out on.

Pennsylvania alone would lose between $254 million and $410 million in uncollected revenues this year without legislative intervention, according to a 2011 study by Carnegie Mellon University professor Robert Strauss.

But starting Sept. 1, online retailers with a physical presence in the state will have to pay at least 6 percent sales tax for items purchased by Pennsylvanians.

And for those shoppers in Allegheny County, the online sales tax would be 7 percent — a 6 percent share going to the state, and an additional 1 percent for Allegheny County. In Philadelphia, they tack on an extra 2 percent, meaning the online sales tax — just like the regular, bricks-and-mortar sales tax — would be 8 percent.

Read more: http://www.post-gazette.com/stories/business/legal/pennsylvanias-online-shoppers-soon-will-have-to-pay-sales-tax-649674/#ixzz246C7JCAT

Online Retailers Hoping Congress Acts As PA Delays Enforcement Of Sales Tax Law

HARRISBURG — Out-of-state retailers will not collect sales tax on goods they sell online to Pennsylvania residents until Sept. 1, according to the Pennsylvania Department of Revenue.

The clarification in the Pennsylvania tax law has spooked several advertisers into terminating their agreements withPennsylvania publishers in December.

As retailers adjust to the newly interpreted tax law, state residents must track the 6 percent sales tax on the goods they purchase and declare that amount on their 2011 tax return forms, according to the state tax code.

Opponents of the new law, which originally was expected to go into effect Wednesday, said the state will lose more than $22 million in revenue, because Internet companies won’t do business here.  (NO KIDDING!)

Read more: http://business-news.thestreet.com/montgomery-news/story/online-retailers-hoping-congress-acts-pa-delays-enforcement-sales-tax-law/1