York County News

Legislation aimed at providing tax relief for small businesses in Pennsylvania has been approved by the Senate Finance Committee. The bill, sponsored by Sen. Kristin Phillips-Hill (R-York), seeks to restore the Sales and Use Tax Vendor Discount, which was previously capped.

Senate Bill 473 proposes lifting the current cap on discounts given to businesses that collect and remit state sales tax on time. This change is intended to reduce administrative burdens and support local job creators.

"Small businesses serve as the backbone of our local communities, and they should not be penalized for doing the state’s work in collecting and remitting sales tax," said Phillips-Hill. "This legislation restores fairness and ensures we provide real relief to small businesses that have faced enormous cost pressures, especially since the COVID-19 pandemic."

Before 2016, Pennsylvania offered a vendor discount of one percent of the collected sales tax with no cap. However, this was later limited to $300 per month per business. The new legislation aims to remove this cap, allowing businesses to receive the full discount again. This move would help offset compliance costs such as transaction fees and bookkeeping expenses.

"Increasing costs for fuel, labor, rent, and supplies continue to strain small businesses across the commonwealth," Phillips-Hill added. "This legislation sends a strong message that Pennsylvania values our small businesses and wants to remain competitive with neighboring states."

The bill will now proceed to the full Senate for further consideration.