Would codify program that instantly sends sales tax to the state

HARRISBURG, March 23 – After the success of a recent pilot by the PA Department of Revenue, state Reps. Johanny Cepeda-Freytiz and Steve Samuelson have introduced legislation to codify a program that would instantly remit sales tax to the state.

The legislation, H.B. 2300, would officially establish the use of software that collects sales and use tax in real time for each transaction and sends it to the Department of Revenue, taking the burden of handling sales and use tax off the taxpayer.

“As a small business owner myself, I know convenience and predictability can be hard to come by when you run a business,” said Cepeda-Freytiz. “This legislation would afford our small businesses just that, while ensuring 100% compliance among those who use it. This is a solution that clearly makes work easier for the businesses that fuel our economy and the state government.”

Cepeda-Freytiz previously owned Mi Casa Su Casa Café, a breakfast and lunch café in downtown Reading that opened in 2007.

The legislation would also allow the Department of Revenue to mandate use of the software for taxpayers with certain arrearages, with the first-year costs covered by the department. After the pilot program, three out of four participants chose to continue using the software at their own expense.

House Bill 2300 has been referred to the House Finance Committee, chaired by Samuelson. The Finance Committee plans to hold a hearing on the legislation at 10 a.m. on Wednesday, March 25, in Room 523 of the Irvis Office Building in the State Capitol Complex.

Information provided to TVL by:
Walker Kmetz