HARRISBURG – Legislation by Rep. Jesse Topper (R-Bedford/Franklin/Fulton) aims to end the antiquated practice of requiring Pennsylvania businesses to pay an estimated sales tax in advance, replacing it with the policy that businesses pay only the sales tax they actually collect.
“This outdated collection scheme is akin to requiring consumers to estimate, and pay in advance, the sales tax they think they may pay in a year. It just doesn’t make sense,” Topper said. “This change would provide much needed relief for our small businesses that continue to try to rebuild after the extraordinary challenges of these past two years.”
Currently, businesses are required to prepay the amount of sales tax they are expecting to collect based on the previous year’s collection. Some businesses have to make an additional payment at the end of a tax period if they underestimated the amount of sales tax they’d collect.
“Prepaying sales tax cuts into a business’ bottom line, creates cash flow problems and consumes valuable time and resources that could be devoted to issues that would actually grow a business,” Topper said.
Topper introduced the legislation as House Bill 2277
. It is now in the House Finance Committee awaiting consideration.
Editors Note: To download a clip of Rep. Jesse Topper discussing House Bill 2277, click here
, then click on the three dots in the bottom right corner and select “download.”
Representative Jesse Topper
Pennsylvania House of Representatives
Media Contact: Greg Gross