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11/09/2024 12:04 AM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20150&cosponId=20167
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Senate of Pennsylvania
Session of 2015 - 2016 Regular Session

MEMORANDUM

Posted: May 4, 2016 11:37 AM
From: Senator John R. Gordner
To: All Senate members
Subject: Proposed Legislation Providing for an Exemption to the Sales and Use Tax for Certain Reused Packaging Materials
 
In the near future, I will be introducing legislation which exempts from the sales and use tax certain packaging materials that are reused by manufacturers.

Currently, most packaging materials purchased by manufacturers to deliver their products to retail establishments are exempt from the sales and use tax when they are initially purchased from a supplier. Under an interpretation of the Tax Reform Code by the Department of Revenue, if those packaging materials are then reused by the manufacturer, they are then subject to the sales and use tax. This discourages manufacturers from reusing such supplies as cardboard boxes – a practice which should be rewarded not punished.

This legislation would clarify that specifically, cardboard boxes and other similar containers would also be exempt from the sales and use tax if they are reused in the delivery of products. This would mainly impact manufacturers of snack food products that stock their products in retail establishments as opposed to those who ship their goods to be stocked by the employees of the retail establishment.

Thank you for your consideration and please feel free to contact my office if you have any questions regarding this proposed legislation.




Introduced as SB1317


Memo Updated: May 4, 2016 11:38 AM