HARRISBURG– Sen. Kristin Phillips-Hill (R-York) announced significant progress in the effort to support Pennsylvania’s small businesses with the passage of Senate Bill 1225 through the Senate Finance Committee. The legislation aims to enhance the Sales and Use Tax Vendor Discount, providing much-needed relief to small businesses across the state. Historically, Pennsylvania businesses received a 1% discount on promptly submitted sales tax, ensuring a fair and supportive tax collection process. However, changes in recent years capped this benefit at $300, regardless of tax collection volume, placing an undue burden on small businesses during challenging economic times, exacerbated by the COVID-19 pandemic. Phillips-Hill emphasized the critical need for this legislation. “Small businesses are the backbone of our economy, and they have faced unprecedented challenges, particularly during the pandemic,” she said. “This legislation is about ensuring our tax policies reflect the realities faced by our local shops and restaurants as they are responsible for collecting and remitting more than $14 billion in sales taxes annually.” By expanding the Sales and Use Tax Vendor Discount, the state reinforces its commitment to a collaborative partnership with the private sector, fostering economic resilience and fairness in tax collection practices. Senate Bill 1225 advances to the full Senate for further consideration.