Pennsylvania Use Tax Update

New Line on PA Tax Return Forms

Some internet vendors falsely advertise their products as “tax free”. However, Pennsylvania law requires the payment of use tax by any person who purchases taxable goods delivered to Pennsylvania if sales tax is not collected by the vendor.

The use tax also applies to purchases made through toll-free numbers, mail order catalogs and services such as lawn care, maintenance and housekeeping services.

In an effort to encourage compliance with the use tax law, a new line has been added to the PA-40 Pennsylvania Personal Income Tax Return. Line 25 will ask for a calculation of your use tax due. The tax rate is the same as the 6 percent state sales tax, plus 1 percent local tax for items delivered to Allegheny County and 2 percent for items delivered to Philadelphia.

If you have incomplete receipts or your related purchases totaled less than $1,000 in 2011, you may use a table prepared by the PA Department of Revenue to estimate your use tax liability. Click below for a copy of the Use Tax Worksheet and table of Estimated Use Tax Due:

The Pennsylvania Department of Revenue considers the use tax an important source of revenue for the Pennsylvania General Fund and is prepared to enforce penalties and interest for late payment of use tax.

Use Tax Calculation Worksheet