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Senate of Pennsylvania
Session of 2019 - 2020 Regular Session


Posted: April 12, 2019 11:14 AM
From: Senator Scott E. Hutchinson
To: All Senate members
Subject: Clarifying the Strategic Development Area Sales and Use Tax Exemption
In the near future, I intend to introduce legislation that will clarify an existing sales and use tax exemption on certain services or goods purchased by qualified businesses located within a Strategic Development Area (SDA).

The Department of Revenue’s recent interpretation of the term “exclusive use” has led to businesses being taxed on items simply due to incidental use outside of an SDA. For example, if a business provides a laptop or mobile phone to their employees for use at work, and the employees take those devices home at the end of the workday, they would no longer qualify under the “exclusive use” provision according to the Department’s interpretation.

I believe if an employee uses a laptop, mobile phone or similar item outside of an SDA for incidental amounts of time, they should still be considered tax-exempt work items, which was the original intent of the law. This legislation will clarify the term “exclusive use” to reflect that original intent, thereby giving businesses more flexibility to invest and grow by using these important incentives.

Please consider joining me in sponsoring this important legislation. If you have any questions regarding this legislation please contact Justin Leventry in my office at 787-9684 or jleventry@pasen.gov.

Introduced as SB616