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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Total Cost Of Pennsylvania’s Proposed Budget: $78.6 Billion

HARRISBURG, PA – Pennsylvania could own a bunch of professional sports team if it wanted.

OK, maybe we’re taking some liberty with that, but there is some math to back it up. If Gov. Tom Wolf’s budget is enacted exactly as he presented it earlier this month, the state’s total operating budget would soar to $78.6 billion, the highest level ever.

To put that in perspective, it’s enough to buy all 32 teams in the National Football League, based on average team values compiled by Forbes.com. And then for fun, the state still could buy all 30 teams in Major League Baseball and have enough left to build a few state-of-the-art stadiums.

Of course, that’s assuming the state would spend nothing on its actual responsibilities, like public education and roads and bridges. But for our purposes, it helps illustrate the sheer volume of state spending that’s on the table.

Read more:

http://www.timesherald.com/general-news/20150319/total-cost-of-pennsylvanias-proposed-budget-786-billion

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

Pennsylvania Sales Tax Solution Sought

Traditional merchants are suffering a 6 percent disadvantage over their Internet-only competitors this holiday season.

Though the Supreme Court recently affirmed the right of states to tax online purchases made by state residents, it really didn’t help small-business owners.

Online appliance sellers routinely boast they sell appliances free of sales tax and often offer free delivery on big-ticket items despite a requirement that Internet merchants collect the 6 percent sales tax on anything they sell for use in Pennsylvania, said Brian Sutton, part owner of Maidencreek TV & Appliance in Maidencreek Township.

“They do it all the time,” Sutton said. “We’ve been dealing with this for years.”

Read more: http://readingeagle.com/article/20131216/NEWS/312169981#.Uq8i_vRDsxI

Bill To Boost Neighborhood Climate Could Freeze Out Reading

Map of Pennsylvania (Photo credit: Wikipedia)

Two competing bills are being introduced in the state Senate that would expand Allentown’s Neighborhood Improvement Zone – unique and highly successful but also highly criticized – to other Pennsylvania cities.

One bill would include Reading; the other would not.

The prize for any city is the zones’ new ability to retain state personal income and sales tax revenue generated in the zone, using it to repay bond issues for demolition, infrastructure and even new buildings.

But both bills, in answer to charges that Allentown’s gains are the state’s losses, would limit how much state tax can be kept locally.

Sen. Lloyd Smucker, a Lancaster Republican, introduced the first bill in early May to authorize what he calls City Revitalization and Improvement Zones.  Its pilot program applies only to cities with 40,000 to 70,000 people.

Read more:  http://readingeagle.com/article.aspx?id=484975

State Budget Action Takes Center Stage This Week In The House, But Will It Get Done On Time?

The House today is expected to begin debate on a $28.3 billion state spending plan for next year.

It is the House Republicans’ 2013-14 budget proposal, one of three that has been put on the table along with ones from Gov. Tom Corbett and Senate Democrats.

None of the three plans call for any increases in in broad-based taxes, such as the sales tax or personal income taxes.

Much of today’s debate is likely to  focus on amendments that reflect the House Democrats’ priorities that would raise the proposed total spending level to $28.7 billion.  The additional money they want to spend would be directed to K-12 and higher education and social services.

Read more:  http://www.pennlive.com/midstate/index.ssf/2013/06/state_budget_action_takes_cent.html#incart_m-rpt-2

Report: Pa. House Bill To Abolish School Property Taxes Would Fall $1.5 Billion Short

Map of Pennsylvania (Photo credit: Wikipedia)

HARRISBURG — A House bill to eliminate all school property taxes would fall $1.5 billion short of generating enough money to replace the revenue existing property taxes raise, according to a report from Pennsylvania‘s Independent Fiscal Office.

“The IFO has confirmed the views I held in June,” when the bill was tabled, said Rep. Tim Briggs, D-Montgomery, who released the report over the weekend. “House Bill 1776 simply does not raise the revenue it claims to provide.”

Sponsors of the bill estimated it would raise about $10 billion a year by increasing the state’s income tax rate to 4 percent from 3.04 percent and the state sales tax rate to 7 percent from 6 percent.

Allegheny County‘s rate, already at 7 percent, would jump to 8 percent.

Read more: http://www.post-gazette.com/stories/local/state/report-pa-house-bill-to-abolish-school-property-taxes-would-fall-15-billion-short-655676/#ixzz284Jq3PIH

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

State: No Bailout For Scranton

HARRISBURG, PA – Scranton Mayor Chris Doherty lobbied Corbett administration officials and leading lawmakers Monday to provide a new sales tax revenue stream to his fiscally troubled city.

Meanwhile, a top state official told city residents not to expect a state bailout for immediate budget problems.

Mr. Doherty said during a visit to the state Capitol that enacting a state law to give Scranton a share of a countywide 1 percent sales tax would be a way to recognize the city’s lead role in a state court case that resulted in it owing millions of dollars of back arbitration awards to city firefighters and police officers.

“We are the one that fought the battle for DCED in Act 47; here is a way to help us out,” Mr. Doherty said.

Read more: http://thetimes-tribune.com/news/state-no-bailout-for-scranton-1.1328492

Pennsylvania House Panel Considers Eliminating School Property Tax

HARRISBURG, PA – The House Finance Committee today wrangled with a controversial idea — eliminating school property taxes and replacing the money with higher state personal income taxes and higher state sales taxes.

Rep. Jim Cox, R-Berks, said property taxes on residential and commercial buildings are a major burden for many owners, especially senior citizens on fixed incomes.

“Even when the mortgage on a house is paid off, the owner still has to ‘rent’ it from the government by paying school property taxes, and that isn’t fair,” he said. Some owners have lost their homes when they were unable to pay rising property taxes, he added.

Read more: http://www.post-gazette.com/stories/local/state/state-house-panel-considers-eliminating-school-property-tax-636889/

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

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 contact:  Elizabeth Brassell, 717-787-6960

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