Pennsylvania Passes Economic Nexus Legislation

[July 11, 2019] On June 28, 2019, the governor of Pennsylvania signed HB 262 into law. Effective July 1, 2019, this law requires any person or business with $100,000 or more in annual gross sales to Pennsylvania customers to collect and remit Pennsylvania’s 6 percent sales tax on taxable transactions. The law codifies the economic nexus standard previously articulated by Pennsylvania in Sales and Use Tax Bulletin 2019-01. For more information on calculating your annual gross sales and determining if you are required to collect Pennsylvania sales tax, please visit the PA Department of Revenue’s website.

The law also suspends the previously existing requirement that certain online sellers must provide their customers with notices informing them that they may owe Pennsylvania use tax. Starting July 1, 2019, no online sellers, regardless of the amount of their Pennsylvania sales, are required to provide use tax notices to their customers. Additionally, those sellers who provided notices in the first half of 2019 are no longer required to provide the accompanying reports in January 2020 to either customers or the Department of Revenue.

More information on Pennsylvania’s economic nexus requirements.

View HB 262 in its entirety.

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Author

Daniel Kostrzewa

Daniel Kostrzewa is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Daniel focuses on domestic sales tax issues. Prior to joining Sovos in 2018, he worked as an attorney in Boston. Daniel received his B.A. in Economics from Boston College and J.D. from Boston College Law School. He is a member of the Massachusetts Bar.
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