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Pennsylvania House of Representatives
04/20/2024 11:32 AM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=27942
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: January 24, 2019 01:53 PM
From: Representative Thomas R. Caltagirone
To: All House members
Subject: Misinterpretation of Sales Tax Exemption for Traffic Signal Construction
 
The Department of Revenue is narrowly interpreting the tax exemption for "traffic signals" in order to collect more revenue. Unfortunately, this interpretation is causing local municipalities to incur increased cost to install or maintain traffic signals. I want to make certain local municipalities are protected from this hidden tax.

The tax code provides an exemption for traffic signals as long as the traffic signal will be transferred to a tax exempt governmental entity. In the past the Department exempted all the materials used to install traffic signals but under the last administration they narrowed the interpretation to only exempt the light assembly (the assembly that holds the red, yellow and green light). In my opinion this narrow interpretation is absurd and we need to fix it with legislation.

Please cosponsor this legislation.


Introduced as HB1168