Statement on proposed PA Technology Tax (PACT)

Governor Tom Wolf recently proposed a massive Technology Tax to balance Pennsylvania's 2017-18 budget.

If adopted, this tax will impact nearly every business in the Commonwealth. Many business leaders will remember the last incarnation of the Tech Tax in Pennsylvania (the Computer Services Tax), which was adopted in 1991 and repealed six years later after intensive lobbying from our Pennsylvania's technology sector.

In collaboration with the Pittsburgh Technology Council, we need help from the community to fight against this new Tech Tax. Reach out to your local legislators today.

The budget estimates a $330-380 million tax increase on Pennsylvania’s technology sector. This is the highest business tax proposed this year by Governor Wolf. Currently only 4 states have such a tax- -NH, CT, SD and HI. Both MA and MD imposed such a tax under Democratic Governors, but repealed it prior to implementation.

Consumers of technology services (listed below) are projected to face new sales tax of up to seven percent:
Customized Software or App Development
Modifications to Software
Data Center / Hosting Services
System Integration
Help Desk Services
Website Development and Hosting Services
Data Storage and Retrieval Services
Information Security or Disaster Recovery Services
Installation and Wiring Services
Consulting Agreements
Software Training Services
Costs for Marketing Computer Hardware
Reporting Services

PLEASE NOTE: This is an initial list of services that are believed to be taxed under the proposal. The Governor has yet to release his legislative language. Many additional services may be added to this list.

“PACT opposes the proposed Pennsylvania Technology Tax. If adopted, this tax will impact nearly every business in the Commonwealth. We are in collaboration with the Pittsburgh Technology Council in the effort to fight against this proposal. We encourage PACT members to contact their local state legislators to show support in opposition of the newly proposed tech tax as well as to attend a Lobbying Day on June 6 in Harrisburg. Here, we plan to meet with Gov. Wolf’s administration and the Technology Councils of Pennsylvania,” explained PACT President and CEO, Dean Miller.

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