Pennsylvania governor abandons higher, broader sales tax

Jun 22, 2016 | Gail Cole

There's a time to fight and there's a time to shake hands.

Pennsylvania Governor Tom Wolf has long held firm on the need to increase and broaden sales tax and raise the personal income tax. Now he's willing to compromise. As the start of FY 2017 fast approaches, Gov. Wolf says there’s a way to meet the state’s needs without increasing either sales or personal income tax.

There was no budget for FY 2016 until late March 2016, and no one in Pennsylvania wants to relive that experience. This time around, Gov. Wolf is describing budget negotiations and conversations as going “very well” and says most lawmakers agree with his three top priorities: balancing the budget, providing more money for education, and funding efforts to reduce the state’s heroin crisis. His optimism is echoed by Republican House Majority Leader Dave Reed who says “his caucus is ‘very happy’ that Wolf backed away from his sales or income tax proposals” (Philly.com).

Details of the new plan have not yet been released, but according to the governor, the new budget will not include a sales tax rate increase, a broader sales tax, or an increase in the personal income tax.

Sales tax software (SaaS) enables businesses to seamlessly calculate, validate, and remit sales and use tax in all states. Learn more.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.

Avalara Author

Gail Cole

Avalara Author Gail Cole

Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.