Senate Co-Sponsorship Memoranda

In the near future I will introduce legislation to expand Pennsylvania’s Sales and Use Tax Vendor Discount that will help offset a portion of the additional expense incurred by businesses when they collect state sales tax.   
 

Before 2016, businesses that promptly submitted their sales tax enjoyed an unlimited discount equal to one percent of the tax collected. However, that discount was later capped at $300, regardless of the amount of sales tax collected by a business.  
 

In recent years, especially during the height of the COVID-19 pandemic, small businesses faced significant cost pressures. Rising expenses for fuel, agricultural projects, labor, rent, and transaction fees have created an enormous strain on businesses, particularly on small, local shops and restaurants. 
 

Additionally, sales tax collection creates another expense for businesses in the form of credit card swipe fees. Swipe fees are charged on the sales tax itself. Businesses are required to remit the full sales tax to the state even though the businesses themselves are unable to collect the full tax amount due to the fees that are deducted from the processing of the credit cards.  
 

This legislation would reduce the burden on businesses and reaffirm the state’s commitment to a mutually beneficial tax collection partnership with the private sector. By doing so, Pennsylvania signals its intent to remain fair, competitive, and supportive of our small businesses and fosters a fair and efficient system for collecting sales tax. 
 

Please join me in cosponsoring this important piece of legislation.