1Directing the Legislative Budget and Finance Committee to
2complete a study on collecting sales tax and to report its
3findings.

4WHEREAS, The Internet has in part provided access for
5consumers to virtually every retail establishment in the United
6States; and

7WHEREAS, Although Pennsylvania currently has a sales and use
8tax that requires the voluntary remittance of taxes for out-of-
9State purchases, enforcement of this provision is nearly
10impossible; and

11WHEREAS, In 2010, retail real estate accounted for 520,300
12jobs in Pennsylvania, representing 9.3% of total employment in
13this Commonwealth; and

14WHEREAS, Retail centers collected $5.3 billion in State sales
15tax revenue last year in addition to generating other revenue
16from business and property taxes; and

17WHEREAS, Some studies have suggested that Pennsylvania may
18see revenues as high as $706 million from collecting a sales and

1use tax on Internet sales while other estimates indicate that
2the overall net tax addition could have been between $246 and
3$398 million for calendar year 2012; and

4WHEREAS, Many states have voluntarily become signatories to
5the multistate Streamlined Sales and Use Tax Agreement that
6authorizes enhanced procedures for the collection and remittance
7of sales taxes across state lines by retailers; and

8WHEREAS, Implementation of the Streamlined Sales and Use Tax
9Agreement between the states makes it easier for all states with
10a sales tax to collect such taxes from out-of-State retailers;
11and

12WHEREAS, The Department of Revenue is currently monitoring
13and preparing for the implementation of such Federal
14legislation; therefore be it

15RESOLVED, That the Senate direct the Legislative Budget and
16Finance Committee to:

17(1) Determine if Pennsylvania retailers are currently
18obligated to pay sales tax to other states who are
19signatories to the Streamlined Sales and Use Tax Agreement
20and the aggregate amount of such sales tax remittance.

21(2) Determine the obligations and tax burden of
22Pennsylvania retailers if Pennsylvania would become a
23signatory to the agreement.

24(3) Estimate the amount of tax revenue that may be
25collected by the Department of Revenue if Pennsylvania would
26become a signatory to the agreement.

27(4) Determine the additional amount of property tax
28relief if 50% of the additional revenues collected under
29interstate sales tax collection were deposited in the
30Property Tax Relief Fund under 4 Pa.C.S. § 1409 and disbursed

1under the formula currently provided.

2(5) Determine the amount of tuition assistance in the
3form of grants that could be made available to Pennsylvania
4residents through the Pennsylvania Higher Education
5Assistance Agency (PHEAA) for postsecondary educational
6assistance if 50% of the additional revenues collected under
7interstate sales tax collection were deposited with PHEAA and
8disbursed to eligible residents;

9and be it further

10RESOLVED, That the Legislative Budget and Finance Committee
11issue its report by December 31, 2014.