Posted: | March 13, 2017 04:31 PM |
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From: | Representative Seth M. Grove |
To: | All House members |
Subject: | Vendor Discount |
In the near future, I plan to introduce legislation which repeals the cap placed on companies for reimbursement when they remit the sales tax they have collected, on behalf of the state, to the Department of Revenue. Prior to the cap being placed on vendors during our last budget;, the state allowed vendors to keep 1% of the sales tax they collected if they remitted the revenue in a timely fashion. While this 1% reimbursement was financially helpful, the simple truth is the 1% never came close to covering the cost companies’ face when they collect the tax in the first place. Although at face value because sales tax as a consumer seems simple enough, the truth is the archaic requirements for collection drive up costs for companies. These costs are in part associated with the requirement on companies to determine what items are taxable under the sales tax and what items are not taxable. If the company happens to remit the wrong amount to the department, they are then liable to remit the difference out of their own bottom line. Furthermore, this does not include the cost of complying with yearly audits by the Department of Revenue. Please join me and co-sponsor this legislation to reduce costs on businesses in the Commonwealth. Should you have any questions please contact Jordan Grant at 717-767-3947 or by email at Jgrant@pahousegop.com |
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View Attachment |
Introduced as HB993