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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20150&cosponId=17084
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House of Representatives
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: January 30, 2015 03:47 PM
From: Representative Patrick J. Harkins
To: All House members
Subject: Exclude Delivery Charges from Sales Tax
 
In the near future, I plan to introduce legislation that would amend the Tax Reform Code of 1971 to exclude delivery charges from the Pennsylvania sales and use tax.

Effective March 4, 1971, the definition of “purchase price” permits for the imposition of Pennsylvania’s sales and use tax on separately stated delivery charges that are billed by a vendor and made in conjunction with a taxable transaction. Similarly, if a vendor delivers a taxable item to a Pennsylvania customer through the mail, charges by the vendor for the cost of the taxable item and the postage fee are subject to taxation, even if these charges are stated separately on the invoice.

Numerous states throughout the nation do not levy sales tax on delivery charges, as these charges are a component of preparing and moving the goods from the vendor to the customer, and do not represent any additional value to the good being delivered. Under my legislation, delivery charges and related postage fees would no longer be subject to Pennsylvania’s sales and use tax.

Please join me in sponsoring this legislation.