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Pennsylvania State Senate
04/18/2024 11:59 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=13488
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Senate Co-Sponsorship Memoranda

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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: October 9, 2013 03:09 PM
From: Senator Jay Costa
To: All Senate members
Subject: Marketplace Fairness Act Study
 
In the very near future, I will be introducing legislation to direct the Legislative Budget and Finance Committee (LBFC) to study the Streamlined Sales and Use Tax Agreement. We must fully understand the fiscal impact and how Pennsylvania may be able to best use the revenues that are generated if the Commonwealth decides to enter this agreement.

The Streamlined Sales and Use Tax Agreement, if adopted by Pennsylvania or required by federal law, would require retailers nationwide, to collect and remit Pennsylvania Sales Taxes on purchases on the Internet from Pennsylvania residents.

It is estimated that the collection of these taxes could generate more than $200 million in revenues for the Commonwealth of Pennsylvania. However, it will require that the General Assembly adopt authorizing legislation in order to participate in the collection of these revenues. To understand the scope and magnitude of this proposal, my legislation will ask the LBFC to study the following:
  • Whether PA retailers are currently obligated to collect and remit sales taxes to other states who are signatories of the current agreement;
  • Determine the obligations and tax burden to Pennsylvania retailers if Pennsylvania became a signatory to the agreement;
  • Estimate the amount of tax revenue that may be collected if Pennsylvania became a signatory to the agreement;
  • Determine the additional amount of property tax relief available if half of the revenue generated were deposited into the Property Tax Relief Fund;
  • Determine the amount of tuition assistance that could be provided to Pennsylvania students in the form of grants for higher education assistance.

Please join me in cosponsoring this legislation.

Introduced as SR272