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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | June 19, 2013 02:35 PM |
|---|---|
| From: | Representative Garth D. Everett |
| To: | All House members |
| Subject: | Collection of Delinquent Sales/Use Tax by the Department of Revenue |
| In the near future, I plan to introduce legislation to assist the collection of delinquent Sales/Use Tax by the Department of Revenue. Under current law, individuals and businesses failing to pay the sales/use tax are afforded a 90 day appeal period following an assessment notice from the Department and then, later in the collection process, another 90 day appeal period following the issuance of a notice of license revocation. This proposed legislation will reduce the second appeal period for sales tax license revocation from 90 to 30 days. This second 90 day period for the delinquent taxpayer to appeal the sales tax license revocation only allows the seriously delinquent taxpayer to continue its bad behavior by continuing to conduct business operations and further collecting sales tax without remitting it to the Department. Decreasing the appeal period will enhance the efficiency of field agent collections activity and accelerate delinquent account resolution and the remittance of unpaid trust fund taxes. The practical effect of this legislation is that it will decrease the minimum time from which the initial assessment notice of unpaid taxes is issued to the date a citation can be issued from 315 days to 255 days – adequate time for any law abiding taxpayer to resolve issues and discrepancies with the Department. Finally, I would point out that this process change will not impact the 97.6% of businesses in Pennsylvania who remit their sales/use taxes on time and will only be aimed at the .06% of “bad actors” who fail to pay the taxes owed after receiving an assessment notice. I look forward to answering any of your questions and working with you on this issue. |
Introduced as HB1593