Pennsylvania Governor Seeks Sales Tax Increase
- Mar 6, 2015 | Gail Cole
Governor Tom Wolf (D) is determined to provide historic tax relief for the people of Pennsylvania. To that end, his 2015-2016 Budget proposes significant changes to personal income tax and sales tax. This blog focuses on sales tax.
The 2015-16 Governor’s Executive Budget suggests both increasing the rate of sales tax and expanding it to more services. The Pennsylvania budget calls for the following:
- Increase the state rate from 6% to 6.6%, effective January 1, 2016.
- Broaden sales tax to numerous services.
- Eliminate “outdated exemptions” for basic television services, candy and gum, and amusement and recreation.
- Maintain exemptions for clothing, food, and prescription drugs.
- Amusement and recreation
- Business support services
- Cable television services
- Candy and gum
- Caskets and burial vaults
- Catalog and direct mail advertising
- Dry cleaning services
- Home health care services
- Legal services
- Non-prescription drugs
- Museum, historical sites and similar institutions
- Personal hygiene products
- Transportation services
- Waste collection
Automated sales tax software as a service allows businesses to stay on top of sales tax changes in Pennsylvania and other states. Learn more.