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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2021 - 2022
Regular Session
MEMORANDUM
| Posted: | April 7, 2022 10:02 AM |
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| From: | Senator John T. Yudichak and Sen. Ryan P. Aument |
| To: | All Senate members |
| Subject: | Sales Tax Holiday for Restaurant Supplies and Construction Materials |
| Seventeen states across the nation held a sales tax holiday in 2021. Pennsylvania was not one of them. In fact, PA has not had a sales tax holiday since 2000-2001, when the incentive was applied to personal computer equipment for a two-week period. Elsewhere throughout the United States, targeted sales tax holidays benefit retailers by improving sales, helping low-income consumers save money and promoting economic growth. As our economy rebounds from the latest COVID variants, we can do a much better job in marketing Pennsylvania as a place to do business. In the near future, we intend to introduce legislation that will implement a sales tax holiday for restaurant supplies and building materials. This type of innovative, one-time sales tax holiday will assist our small restaurants and contractors by providing a financial incentive for doing business here. During a recent Senate Community, Economic & Recreational Development Committee hearing on small business assistance and economic recovery, entrepreneurs told lawmakers that recovery has not started. Unpredictability has plagued these industries for the last 24 months, and recovery will take years. The opportunity to provide goods and services to consumers without the added cost of a state sales tax would create an economic boost welcomed by our small businesses. A targeted sales tax holiday for restaurant supplies and building materials will help inject new life into industries that have struggled to overcome high inflation rates, a national workforce shortage and – among other issues – supply chain issues over the past few years. Please join us in co-sponsoring these important pieces of legislation. |
Document #1
| Description: | SALES TAX HOLIDAY for RESTAURANT SUPPLIES. This proposal will implement a sales tax holiday for restaurant supplies, including food, food ingredients and prepared food, as well as accessories and equipment. Nationwide, 90 thousand restaurants were forced to temporarily close, or permanently shut down, coinciding with the pandemic. According to the Independent Fiscal Office, the full-service restaurant industry lost 30,000 jobs in PA between December of 2019 and December of 2021. We encourage you to join us in supporting this legislative endeavor. |
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Document #2
| Description: | SALES TAX HOLIDAY for CONSTRUCTION MATERIALS. This proposal will implement a sales tax holiday for construction materials, and will encompass fixtures, machinery and equipment. According to the U.S Small Business Administration Office of Advocacy, there were 120,543 construction companies that were considered small businesses in Pennsylvania in 2021. Out of that figure, about 94,000 of those construction firms had just one employee, and less than 25,000 of those companies had between 1-19 staffers. We encourage you to join us in supporting this legislative initiative. |
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