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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | May 4, 2016 11:37 AM |
|---|---|
| From: | Senator John R. Gordner |
| To: | All Senate members |
| Subject: | Proposed Legislation Providing for an Exemption to the Sales and Use Tax for Certain Reused Packaging Materials |
| In the near future, I will be introducing legislation which exempts from the sales and use tax certain packaging materials that are reused by manufacturers. Currently, most packaging materials purchased by manufacturers to deliver their products to retail establishments are exempt from the sales and use tax when they are initially purchased from a supplier. Under an interpretation of the Tax Reform Code by the Department of Revenue, if those packaging materials are then reused by the manufacturer, they are then subject to the sales and use tax. This discourages manufacturers from reusing such supplies as cardboard boxes – a practice which should be rewarded not punished. This legislation would clarify that specifically, cardboard boxes and other similar containers would also be exempt from the sales and use tax if they are reused in the delivery of products. This would mainly impact manufacturers of snack food products that stock their products in retail establishments as opposed to those who ship their goods to be stocked by the employees of the retail establishment. Thank you for your consideration and please feel free to contact my office if you have any questions regarding this proposed legislation. |
Introduced as SB1317