House Approves Dunbar Bill to Prevent Double-Taxing Businesses
10/17/2013
HARRISBURG – The state House on Wednesday in Harrisburg approved a bill introduced by Rep. George Dunbar (R-Westmoreland) that would protect job creators in Pennsylvania against being double-taxed by various municipalities.

“This bill is about providing tax fairness and predictability for Pennsylvania’s job creators,” Dunbar said. “When businesses are double-taxed, they cannot invest that lost money in their operations or hire more workers. Excessively taxing employers kills jobs.”

Dunbar’s legislation – House Bill 1513 – would protect employers against the arbitrary and excessive application of local business taxes.

Under current law, businesses may be required to pay a business privilege tax to the municipality in which they are located. However, some municipalities and other taxing authorities have tried to use these taxes to squeeze revenues out of employers who simply conduct transactions within the authority’s boundaries.

For example, a construction company may be asked to pay the business privilege tax to the municipality in which it is located. However, if the same company travels across the state to perform work in another city and sets up a trailer for the week the work is being completed, the city may currently try to impose a business privilege tax on the construction company.

“What we have seen is that municipalities are stretching to find ways to collect revenues,” Dunbar said. “In doing so, they see out-of-area businesses as good targets. We want to close this loophole so the tax is applied fairly without stunting job creation.”

Dunbar’s bill would prevent a municipality from applying the local business taxes to a company that performs work in the municipality for two weeks or less. It also would ensure that a company could not be charged the gross receipts tax twice by different municipalities for the same earnings.

“This is an issue of fairness and promoting economic expansion and job creation,” Dunbar said.

Dunbar’s bill now heads to the Senate for consideration.

Representative George Dunbar
56th District
Pennsylvania House of Representatives

Media Contact: Ty McCauslin
717.772.9979
tmccausl@pahousegop.com  
RepDunbar.com / Facebook.com/RepDunbar 

Share |