HARRISBURG – The PA Senate Finance Committee approved legislation providing tax relief for PA’s small businesses by restoring the Sales Tax Vendor Discount. Senate Bill 473, sponsored by York County Sen. Kristin Phillips-Hill, would lift the current cap on the discount businesses receive for timely collecting and remitting state sales tax, a change that would reduce administrative burdens and support local job creators. Prior to 2016, businesses that submitted sales tax on time received a vendor discount equal to 1% of the amount collected, with no cap. That discount was later limited to just $300 per month, regardless of the size or scope of the business. The bill eliminates the cap, allowing businesses to receive the full discount as originally intended to help offset the cost of compliance, including transaction fees, bookkeeping, and payment processing costs. Phillips-Hill added that her bill sends a strong message that PA values our small businesses and wants to remain competitive with neighboring states. Senate Bill 473 now moves to the full state Senate for consideration.
SEN. KRISTIN PHILLIPS-HILL