Reed Smith Client Alerts

Today, the Pennsylvania Senate passed an amended version of House Bill 542 (HB 542), which includes tax code changes that are estimated to generate $571 million in new revenue. (A brief overview of some of the noteworthy changes is included below.) HB 542 passed the Senate with bipartisan support, and our understanding is that Governor Wolf also supports the bill. However, before the bill can move to the Governor and become law, the Pennsylvania House will have an opportunity to either accept, reject, or further amend the bill. The House’s next scheduled session is not until September 11, but they could be called back earlier for a special session.

Marketplace Provider Sales Tax Requirements

HB 542 would require marketplace providers to collect sales tax on each sale that they facilitate for a marketplace seller. The Senate Appropriations Committee estimated that in the 2017/2018 fiscal year alone, this provision would generate $43.5 million in new revenue. This provision follows on the heels of similar provisions seeking to impose sales and use tax obligations on marketplace providers enacted by Minnesota and Washington earlier this year. [See our prior alerts here and here.]