Benninghoff: House Finance Committee Approves Bill to Prevent Over-Taxing Small Employers
HARRISBURG – The House Finance Committee, chaired by Rep. Kerry Benninghoff (R-Centre/Mifflin), this week approved a bill aimed at preventing small employers in Pennsylvania from being over-taxed.

“In these trying economic times, the last thing we want is for state government to take too much out of the pockets of job-creating small employers,” Benninghoff said. “Small businesses should remit the taxes they owe, but should not be forced to pay more than that amount.”

House Bill 2000 was introduced to correct a problem with the way Pennsylvania currently requires businesses to remit the Sales and Use Tax (SUT). Businesses that collect a certain amount of SUT revenue must make payments based on how much they collected during the same month in the previous year.

Because the tax payments are based on the previous year instead of current collections, some businesses have been overtaxed.

The proposal would give merchants the option of continuing to make the pre-payments based on the previous year’s collections or to calculate the SUT collected on actual sales and remit that amount to the Commonwealth.

“When government takes more than its fair share in taxes from small employers, Pennsylvania’s economy suffers,” Benninghoff said. “That leaves less money for those employers to invest in their business or pay their workers. There is a problem in the way the law currently works and we are working to correct it.”

House Bill 2000 now moves to the full House for consideration.

State Representative Kerry Benninghoff
171st District, Pennsylvania House of Representatives
Contact: Dan Massing
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