In July, the Pennsylvania General Assembly passed a revenue package for the Commonwealth, It was signed by Governor Wolf on July 13.
First, the bad news about the package:
Adding to the negative note, an obscure provision was inserted into the state fiscal code that made the additional two dollar per pack cigarette tax in Philadelphia permanent. The tax was originally required to be reauthorized in 2019.
Now, the good news:
The revenue package averted any sales tax expansion to products of importance to food retailers. Sales tax increases were dismissed early in the process, as were increased corporate tax or personal income tax rates.
Also, legislation increasing the minimum percentage markup from six percent to seven percent for cigarette sales was included in the fiscal code. The language was previously contained in Senate Bill 691, sponsored by Senator Bob Mensch. In addition to the markup, the language requires retailer to wholesaler payment for cigarettes in no less than 14 days, includes preemption language, and modernizes recording keeping provisions.This change has been priority legislation for PFMA.
First, the bad news about the package:
Adding to the negative note, an obscure provision was inserted into the state fiscal code that made the additional two dollar per pack cigarette tax in Philadelphia permanent. The tax was originally required to be reauthorized in 2019.
Now, the good news:
The revenue package averted any sales tax expansion to products of importance to food retailers. Sales tax increases were dismissed early in the process, as were increased corporate tax or personal income tax rates.
Also, legislation increasing the minimum percentage markup from six percent to seven percent for cigarette sales was included in the fiscal code. The language was previously contained in Senate Bill 691, sponsored by Senator Bob Mensch. In addition to the markup, the language requires retailer to wholesaler payment for cigarettes in no less than 14 days, includes preemption language, and modernizes recording keeping provisions.This change has been priority legislation for PFMA.
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