US Edition
Proposed end to some tax exemptions in PA could raise prices
PENNSYLVANIA, JUL 9 – Pennsylvania considers ending sales tax exemptions on groceries, candy, and legal services to address a $27 billion revenue gap amid budget challenges, officials say.
- Pennsylvania lawmakers are considering reducing some of the state's 109 sales tax exemptions to help address a significant budget deficit in 2025-2026.
- This effort comes as Pennsylvania faces persistent budget shortfalls, anticipated reductions in federal funding for programs such as Medicaid, and urgent financial demands for sectors including education and transportation.
- Pennsylvania imposes a 6% sales and use tax that brought in close to $15 billion in revenue, but numerous exemptions—including those for groceries, legal services, candy, and newspapers—result in an estimated $27 billion in potential revenue not being collected.
- Senate Majority Leader Joe Pittman highlighted that while some exemptions address essential needs, others reflect discretionary desires, and he questioned whether a compromise could be reached that might generate additional revenue.
- Lawmakers and budget negotiators express openness to reviewing exemptions, but recognize strong opposition from stakeholders and the political difficulty of taxing services.
12 Articles
12 Articles
Proposed end to some tax exemptions in PA could raise prices
HARRISBURG — Sales tax exemptions for everything from newspapers to legal services to candy cost the commonwealth billions every year, and at least one top policymaker says he’s open to getting rid of some as members wrestle with a significant budget deficit. Changes to the state’s tax code are rare. Any tax increase — or even a perceived one — can easily incite public outrage against state legislators who want to keep their seats. But as the Ge…
Prices on Certain Goods, Services Could Rise as PA Lawmakers Consider Axing Some Sales Tax Exemptions
With the budget overdue and facing significant deficits, one GOP leader says he’s willing to consider changes. By Stephen Caruso, Spotlight PA Photo courtesy of Amanda Berg / For Spotlight PA Spotlight PA is an independent, nonpartisan, and nonprofit newsroom producing investigative and public-service journalism that holds power to account and drives positive change in Pennsylvania. Sign up for our free newsletters. Sales tax exemptions for ever…
statecollege.com
explorejeffersonpa.comPrices on Certain Goods, Services Could Rise as Pa. Lawmakers Consider Axing Some Sales Tax Exemptions
Spotlight PA is an independent, nonpartisan and nonprofit newsroom producing investigative and public-service journalism that holds power to account and drives positive change in Pennsylvania. Sign up for our free newsletters. HARRISBURG — Sales tax exemptions for everything from newspapers to legal services to candy cost the commonwealth billions every year, and at least one top policymaker says he’s open to getting rid of some as members wrest…
Coverage Details
Bias Distribution
- 57% of the sources are Center
To view factuality data please Upgrade to Premium
