Pennsylvania Act 84 was signed by Governor Tom Wolf on July 13, 2016. The following is a summary of some of the main points that may interest you.
PENNSYLVANIA ACT 84 HIGHLIGHTS
SALES & USE TAX

Electronically or digitally delivered items (often called digital downloads): Starting August 1, 2016, the sales and use tax specifically extends to items delivered to a customer electronically or digitally or by streaming unless the transfer is otherwise exempt.

 

Sales tax vendor discount: For sales tax returns for periods ending after August 1, 2016, the sales tax vendor discount is capped at the lesser of one percent of the amount of sales tax collected or $25 on a monthly return, $75 on a quarterly return or $150 on a semi-annual return.
CIGARETTE & TOBACCO PRODUCTS TAXES

Cigarette Tax: Starting August 1, 2016, the state tax on cigarettes is $2.60 per pack, a $1.00 per pack increase. In Philadelphia the tax will be $4.60 per pack.

 

Other Tobacco Products: Some other tobacco products will be subject to a $0.55 per ounce tax and/or a minimum tax per package of $0.66. Electronic cigarettes will be subject to a 40 percent tax on the wholesale price.
CORPORATION TAX

Corporate report due dates: For tax years beginning  after December 31,2015, corporate net income tax reports (RCT-101) are due 30 days after the due date of the federal report.
 
Amending corporate reports (RTC-101): Beginning with amended
 reports filedafter December 31, 2016 , t axpayers will have three years from the due date of theoriginal report to file an amended report. The department will have one year from the datethe amended report is filed to notify the taxpayer if the changes are not accepted. 

PERSONAL INCOME TAX

PA Lottery winnings: Retroactive to January
 1, 2016, the Pennsylvania personal  income tax applies to cash prizes from the Pennsylvania Lottery.
 
TAP Contribution Checkoff: Starting in the 2016 tax year, taxpayers receiving a  personal income tax refund will have the option of designating all or a portion of their  fund as a contribution to a Tuition Account Program directly from their personal income  tax return.
OTHER TAXES
   

Inheritance Tax: The exemption for family farms and family businesses are amended,allowing for farms and businesses that are transferred "to or for the benefit of' a member of the same family to be exempt from the taxable estate. This exclusion extends to transfers of trusts for the benefit of membersofthe same family.  Relatives of a decedent's spouse have been added tothedefinition of "members of the same family." The farm provision is effective retroactiveto dates of death after December 31, 2012, while the business provision is retroactiveto dates of deathafter June 30,2013.

 

Tax amnesty: The Act provides for a tax amnesty program to be implemented by the Department of Revenue. The Governor will establish the 60-day period that must end by June 30, 2017. During amnesty, the department will waive 100 percent of penalties and half of the interest due on taxes delinquent as of December 31,2015.
TAX CREDIT & ECONOMIC DEVELOPMENT PROGRAMS
   

Educational Tax Credits: Funding has increased from $100 million to $125 million for the aggregate amount of all tax credits approved for contributions from business firms to eligible education organization. The DCED will be required to notify applicants of the status of the application in writing within 90 days of submitting the application to the Department.
T ax Credit for New Jobs: Formerly referred to as the Job Creation Tax Credit program,  this Program is available to eligible businesses who, within three years from a  negotiated start date, create 25 or more jobs or increase employment by 20%.  The tax credit has been amended to include an incentive for businesses to hire veterans  for a job tax credit equivalent to $2,500 per veteran hired. The amendment is effective  immediately.  
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