Pennsylvania levies some of the highest taxes on cell phones in the country. Shapiro wants to eliminate two, which would fulfill a campaign promise.
Democratic Gov. Josh Shapiro pitched a plan to fulfill one of his campaign trail promises: getting rid of some of Pennsylvania’s cell phone taxes.in the state, Shapiro wants to eliminate both the sales and use tax and the gross receipts tax on cell phone services. Doing so would save Pennsylvanians $124 million each year, he said.
Shapiro’s plan would eliminate the 6% state sales and use tax on phone services and the 5% gross receipts tax on wireless service providers.that has a gross receipts tax on top of a sales and use tax for wireless services. The sales and use tax is paid by consumers who purchase phones and phone plans while the gross receipts tax is levied on businesses that sell phones and plans and is based on their annual revenue. The latter tax can be passed on to the consumer as a surcharge on their bills.
Shapiro will need the state legislature on board to eliminate these taxes, either by changing the state’s tax code or through another piece of legislation.
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