Pennsylvania Taxes Sales of Electronically Delivered Items, Exempts Timber Equipment, Plans Amnesty Program

Thursday, July 21st, 2016

 
 
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Pennsylvania
General

Pennsylvania recently enacted a bill clarifying how it taxes electronically delivered items. Under the new law, canned software, video, photographs, music, books, and other media are included in the definition of "tangible personal property." The state taxes sales of "tangible personal property," so these items are taxable unless an exemption applies. The new definition is effective August 1, 2016. Note that these items qualify as tangible personal property even if they are electronically delivered or streamed to the customer.

The bill also exempts machinery, equipment, and supplies used in timber production and harvesting. This exemption applies to businesses that primarily produce and harvest trees to make wood, paper, or energy.

In addition, the bill provides that the Department of Revenue will offer an amnesty program before June 30, 2017. The amnesty program will allow participating taxpayers to avoid paying interest, penalties, or fees on eligible taxes owed to the state.

http://www.legis.state.pa.us/cfdocs/legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2015&sessInd=0&billBody=H&billTyp=B&billNbr=1198&pn=3731


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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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