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07/20/2024 12:06 PM
Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20210&cosponId=36651
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House of Representatives
Session of 2021 - 2022 Regular Session

MEMORANDUM

Posted: January 4, 2022 09:22 AM
From: Representative Jesse Topper
To: All House members
Subject: Repeal AST Prepayment Requirement
 
In the near future, I plan to introduce legislation to repeal the requirement for Pennsylvania businesses to remit “prepayments” for their sales tax collections.
 
As many may know, the Accelerated Sales Tax (AST) Prepayment requires Pennsylvania businesses with actual tax liabilities for the third quarter of a previous year in excess of $25,000 to remit “prepayments” for their collected sales tax. More specifically, if the business has collections in excess of $25,000 but less than $100,000, the prepayment must be equal to either 50% of the actual tax liability for the same month of the previous year or, at minimum, 50% of the actual tax liability for the current collection period. For business with collection in excess of $100,000, the prepayment must be equal to 50% of the actual tax liability for the same month of the previous year. All remittances for prepayments are due by the 20th of the current month, with final returns for sales tax collections due by the 20th of the following month.
 
In an effort to help promote simplicity when it comes to state tax law, my legislation seeks to take a very real step by repealing this prepayment requirement and thus allowing our businesses to simply remit collected sales tax revenues in accordance with their designated filing period (i.e. monthly, quarterly, or semi-annual basis). 
 
It is often cited how complex and onerous Pennsylvania state tax law can be to navigate, particularly for our business community. It’s time we make this change to eliminate the prepayment requirement to help foster an economic environment in which businesses want to locate and grow, thereby benefitting our constituents and communities.

I respectfully ask for your consideration to join me as a co-sponsor of this legislation. 
 



Introduced as HB2277