Sales Tax Expansion in PA - a sign of the future?

[woodward]

The Commonwealth of PA just adopted some new sales tax items. Currently the statewide sales tax is 6%, but in the Philadelphia and Pittsburgh areas it is 7%. Effective with the new budget that took place 7/1/16 the sales tax has been expanded to digital downloads and streaming services such as ebooks, games, music and audio, photographs, and video.

A sign of the future. I am certain other states and/or municipalities will be looking for a similar implementation in the future.

[theboyfromxtown]

The people in charge are always ready to spot new ways of taking our money.

[greg jones]

Not surprised! About 10 years ago, many states realised how much revenue from sales tax was lost from certain types of brick and mortar stores moving to the internet in many industries like music and books. They started sales on internet orders. Since more sales from downloads than physical purchases are happening, sales tax on downloads was bound to happen.

[lockhartgary]

I also heard a little while ago that, in PA i believe, they were considering a soda tax.

[nabob]

The real money comes from "Unclaimed Property". When a company writes checks for wages, customer refunds, vendor payments, etc., any checks remaining outstanding after a specified dormancy period has to be given to the state of the payee's residence if the money can't be given to the original payee. This is called Escheat. The state becomes the custodian of the funds and often makes it difficult for the payee to claim the funds. The state holds the money and collects interest while doing so. Many corporations are domiciled in Delaware. Delaware gets to keep anything not tied to an identifyable payee. The company for which I work is currently being audited by Delaware. Delaware can legally examine unclaimed property records for the last thirty years. Since no company keeps records that far back, huge assessment get levied. Most of Delaware's operating budget comes from escheated funds.

[soulster]

The Commonwealth of PA just adopted some new sales tax items. Currently the statewide sales tax is 6%, but in the Philadelphia and Pittsburgh areas it is 7%. Effective with the new budget that took place 7/1/16 the sales tax has been expanded to digital downloads and streaming services such as ebooks, games, music and audio, photographs, and video.

A sign of the future. I am certain other states and/or municipalities will be looking for a similar implementation in the future.

California has been doing this for some time now. Anytime I download from Pono, I am charged sales tax.

[soulster]

I also heard a little while ago that, in PA i believe, they were considering a soda tax.

If you keep up on the news, you'll find that it was already signed into law for the city of Philadelphia.

And, of course, businesses, and civil libertarians don't like it.
http://nophillygrocerytax.com/news.aspx?ArticleID=Article%20121

[lockhartgary]

If you keep up on the news, you'll find that it was already signed into law for the city of Philadelphia.

And, of course, businesses, and civil libertarians don't like it.
http://nophillygrocerytax.com/news.aspx?ArticleID=Article%20121

I had forgotten about the issue until this post, so thanks for the update.

[woodward]

I had forgotten about the issue until this post, so thanks for the update.

It doesn't take effect until 1/1/2017; hopefully the law will be challenged and thrown under the bus [[so to speak).

[soulster]

So, what exactly is the reason people hate this new tax on sodas?

[woodward]

So, what exactly is the reason people hate this new tax on sodas?

Because there are zillions of people in Philadelphia who used to collect General Assistance welfare benefits which have been discontinued a while back. This will impact these people immensely.

[TheMotownManiac]

Because it's another BS tax that effects sodas biggest consumers: lower income and minorities disproportionately while, once again, needed funds are not sought from the 1% who can actually afford it and not have it change their lifestyle. Additionally, soda is already taxed by sales tax. I'm all for teaching kids more healthy eating habits, but do the education first - then tax the poor. Personally, I'd like all ultra low income folks to be exempt from paying sales tax on food, clothing and other essentials.