We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. These documents are classified as Revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.

Q&A with the Pennsylvania Department of Revenue

In regard to Act 13 of 2019, Will additional guidance on the definition of an "animal housing facility" be provided by Jan 1, 2020?

Nov 15, 2019
Q:

a. Will additional guidance on the definition of an "animal housing facility" be provided by Jan 1, 2020?

b. Will there be additional guidance on the definition of a "Youth Center" provided before Jan 1, 2020?

c. Can the Department of Revenue please explain the sales tax absorption section?

A:

The Department was unaware of any specific questions, so we had not planned on issuing guidance. If specific questions need to be answered, DOR can issue guidance. When such guidance would be released depends on the nature of the questions and when we receive them.

Act 13 changed sales tax law so it is now permissible for a seller to include or "absorb" the sales tax due in the price being charged to the customer (and paid by the seller). To do so, the seller must do four things:

(1) Indicate on the receipt that it is paying the tax on behalf of the purchaser.
(2) State the amount of tax being paid.
(3) Account for the purchase price and tax on its books separately.
(4) Calculate the sales tax by multiplying the purchase price by the tax rate.

If a seller indicates to the public that it is absorbing the sales tax, the seller is solely responsible for paying the tax.

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Disclaimer

These documents provide a summary of the answers provided by the Department of Revenue to the PICPA Committee on State Taxation at its annual question and answer session. These documents are classified as revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on their specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.