SALT Report 1241 – The Pennsylvania Department of Revenue issued a reminder for Internet shoppers this holiday season. Anyone planning to take advantage of online sales are being asked to check their receipts for sales tax charges, and to save any purchase records that do not reflect sales tax to simplify the payment of use tax in the New Year.
The use tax rate is the same as the sales tax rate of 6% and is due when Pennsylvania sales tax is either underpaid or not paid on all purchases made online, through toll-free numbers (800, 888, 866 and 877), through mail order catalogs or from an out-of-state location. Use tax also applies to purchases of taxable items and services used in Pennsylvania when sales tax was not paid.
In an effort to raise awareness about use tax obligations and encourage voluntary compliance with use tax laws the department is simplifying the use tax reporting and payment process by adding a use tax line to the PA-40 Pennsylvania Personal Income Tax Return. Taxpayers will be able to report and pay use tax annually using padirectfile, Fed/State e-File or the paper PA-40 beginning January 2012.
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