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Sales tax remittance improvements signed into law

Chamber members' successful effort ends burdensome semi-monthly reporting requirement

Since it was signed into law in 2009, the PA Chamber has been working with state lawmakers to eliminate a burdensome twice-monthly sales tax remittance reporting requirement that took effect in May of this year.

Enacted as a way to accelerate state revenue collections, Act 48 of 2009 made Pennsylvania the only state in the nation to require semi-monthly sales tax remittance. The law imposed a significant burden on business; particularly large businesses with facilities in multiple states that needed to incur additional expenses to create new data retrieval and reporting systems just for their Pennsylvania operations.

Act 26 of 2011 eliminates this requirement and replaces it with a monthly reporting standard that includes an estimated tax for the current month based on the prior year’s remittance and a true-up payment for the prior month tax. This process will save businesses and the Department of Revenue the time and expense of having to perform double the work to process returns.

Additionally, the new “estimated payment system” will still successfully generate additional revenue while eliminating the burden on job creators to file sales tax statements every 10 days.

PA Chamber members applaud lawmakers for including this improvement in the Fiscal Code bill adopted as part of the 2011-12 state budget.

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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with thousands of statewide members representing businesses of all sizes and all industry sectors. The PA Chamber is The Statewide Voice of Business™. More information is available on the Chamber’s website at www.pachamber.org.

   
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