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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session


Posted: April 23, 2015 04:07 PM
From: Senator Patrick M. Browne
To: All Senate members
Subject: Sales Tax Collection - Motor Vehicle Dealers
In the near future, I intend to reintroduce legislation that was introduced as Senate Bill 836 in the 2013-14 legislative session. This legislation would improve the Pennsylvania sales tax collection process in regards to motor vehicle dealers.

Currently, retailers in Pennsylvania are generally entitled to a 1% reduction in their sales taxes collected if they pay them on a timely basis. This allows them to recover a portion of the administrative costs of collecting and remitting the funds to the state every month. This is a win-win situation that retailers and the Commonwealth benefit from – unless the retailer is a motor vehicle dealer. Under the Tax Reform Code, new and used motor vehicle dealers have been excluded from the 1% sales tax reduction.

This legislation would provide for fairness in our sales tax collection system by providing motor vehicle dealers with the same compensation received by other retailers doing business in our state.

Cosponsors of Senate Bill 836 from last session included: Senators MENSCH, RAFFERTY, WAUGH, SOLOBAY, ALLOWAY and BOSCOLA.

Introduced as SB919