Pennsylvania sales tax is levied on consumption, retail sell and use of tangible goods and services at a rate of 6%. It is collected from the purchasers by the vendors. The Pennsylvania sales tax is paid to the Commonwealth. In addition to it, a local sales tax of 1% is imposed over and above the state rate on sale of taxable goods and services in Allegheny and Philadelphia. The local sales tax that is to be imposed on the sell of motor vehicles is ascertained by the address of residence of the purchaser. The following are the tax-exempt goods in Pennsylvania:
Unprepared food
Medicines and drugs
Most clothes and footwear
Textbooks
Sales conducted with the purpose of resale
Heating fuels used in residential purposes like electricity, oil, gas, firewood and coal
Funeral expenses
Gum and candy
Computer services
Sales tax in Pennsylvania is not imposed on taxable goods and services if they come with food stamps. The Philadelphia City Council imposes sales tax from 1st October 1991 as per the Pennsylvania Intergovernmental Cooperation Authority Act. Returns can be filed on a monthly, quarterly, semi-annual basis accordingly.
E-Tides (Electronic Tax Information and Data Exchange System) is the result of a partnership between the Pennsylvania Department of Revenue and Labor & Industry. This Internet filing system facilitates the electronic filing of sales tax returns. The modes of payment offered by E-Tides include the following:
- ACH Debit
- ACH Credit
- Credit Cards
The payments of sales tax are due by the 20th day of the month following the month of the sale. Monthly returns are payable when there is a tax liability in excess of $600 for the third calendar quarter. When the liability amount is below $600, a quarterly return needs to be filed. Such reports are due on the 20th days of January, April, July and October. Semi annual returns, on the other hand, need to be filed when the total annual collection of tax is lower than or equal to $75.
