Apr. 26, 2022
HARRISBURG – As businesses continue to struggle with staffing issues and high inflation, the House unanimously advanced legislation by Rep. Jesse Topper (R-Bedford/Franklin/Fulton) to provide relief from prepaying Sales and Use Taxes to the state.
“Pennsylvania’s antiquated pay-in-advance tax collection scheme only serves to make the state tax code even more difficult for businesses,” Topper said. “This bill would give them some relief at a time when they need it most.
Topper’s House Bill 2277
would end Pennsylvania’s Accelerated Sales Tax (AST) prepayments, which are based off estimated sales tax collections. Instead, business owners would only remit to the state the sales tax they actually collect.
Under the current system, business owners must take time out of their busy schedules to estimate each month how much Sales and Use Tax they think they may collect.
“Though business owners base their estimates off the previous year’s collections, the estimates aren’t always accurate, forcing them to make an additional payment at the end of a tax period if they underestimated the amount of sales tax they actually collected,” Topper said. “This a confusing practice that can easily be fixed by removing this odd prepayment requirement.”
Pennsylvania is just one of 17 states to have a prepayment requirement. Last year, Mississippi made its business tax code easier to navigate when it removed its accelerated tax payment requirement.
House Bill 2277 is now in the Senate for consideration.
Representative Jesse Topper
Pennsylvania House of Representatives
Media Contact: Greg Gross