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09/16/2019 12:57 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20170&cosponId=24103
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Senate of Pennsylvania
Session of 2017 - 2018 Regular Session

MEMORANDUM

Posted: June 8, 2017 09:48 AM
From: Senator Scott E. Hutchinson
To: All Senate members
Subject: Tech Tax Repeal
 
In the near future I intend to introduce legislation to amend the Tax Reform Code to exempt help desk and other tech support related services from the State’s sales and use tax.

As part of the Fiscal Year 2016/2017 budget, the sales and use tax provisions in the Tax Reform Code were amended to include the taxation of digitally downloaded books, video, apps, music or other electronic media or programing. Not only were the initial purchases included, but so were the “maintenance, updates and support” of these items. This tax on maintenance, updates and support inadvertently led to the taxation of tech support services like IT helpdesks or troubleshooting services.

My legislation would remove the term support from the definition of taxable tangible property regarding electronic media, and it would exclude services that provide advice or guidance concerning otherwise taxable digital or electronic tangible personal property from the sales and use tax.

Technology is everywhere in today’s economy. Businesses all over the Commonwealth, from big to small, use technology to help run their businesses. Left unaddressed, this inadvertent tax on technology support services will severely harm the technology industry and businesses all across the State.

I hope you will join me in sponsoring this legislation. If you have any questions regarding this legislation, please contact Nathan Akers in my office at 787-9684 or nakers@pasen.gov.



Introduced as SB770