By a vote of 102 to 88, the House passed a Tax Code bill -- House Bill 542 (Thomas-D- Philadelphia)-- as a first step in moving a revenue package to support the $31.9 billion General Fund budget they passed in June.
House Majority Leader David Reed (R-Indiana) said the bill authorizes the Commonwealth Financing Authority to borrow $1.5 billion by securitizing or liquidating the Tobacco Settlement and possibly other General Fund monies, would apply the Sales Tax to online marketplaces ($43.5 million) and impose a new 12 percent assessment on fireworks purchases ($31.7 million).
Also included are provisions related to the Net Operating Loss in the event of an adverse PA Supreme Court decision, changes to the timing and withholding of individual and lease taxes, added a deduction for manufacturing innovation and reinvestment, establishes two film production tax credit districts, established an entertainment economic enhancement program tax credit for rehearsal areas.
There is no commercial storage, hotel or natural gas severance tax.
Click Here for a House Fiscal Note and summary of House Bill 542.
The bill now goes back to the Senate for a concurrence vote.
The Associated Press reported tonight Senate Republicans and Gov. Wolf would only say they would look at the proposal. A Governor’s Office spokesperson continued to press for action on a natural gas severance tax.
Although not part of the Majority Leader’s budget proposal, the House Finance Committee is scheduled to take up a severance tax bill-- House Bill 1401 (DiGirolamo-R- Bucks)-- at a meeting set for Wednesday.
The other parts of Majority Leader Reed’s revenue package, but not yet scheduled for action by the House, are--
-- Fiscal Code Bill: special fund transfers $300 million (not identified yet);
-- Administrative Code Bill (House Bill 118 in House Rules): Professional Liability Joint Underwriting Association Fund transfer language (last number was $200 million); and
-- Gaming expansion (the last number was $200 million, House Bill 271 in Senate Rules).
Rep. Reed also said it was a House Republican goal to pass funding for state-related universities.
The House returns to session at 11:00 a.m. on Wednesday as does the Senate.
(Based on Periscope webcast of Rep. Reed’s comments by PLS Reporter.)
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