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Gov. Wolf lifts sales tax prepayment requirements for 3 months

Businesses that collect Pennsylvania sales taxes will not have to make accelerated sales tax prepayments in April, May and June due to income shortfalls from social distancing requirements, Gov. Tom Wolf announced Tuesday.

Businesses that normally have a monthly prepayment requirement will not be charged penalties for missing the next three monthly prepayment deadlines, Wolf said. The state Department of Revenue is asking businesses to remit the sales taxes collected during each prior month on April 20, May 20 and June 22 as any other monthly filer would.

“The spread of COVID-19 has put a tremendous strain on many businesses throughout the commonwealth that collect Pennsylvania sales tax,” Wolf said. “Waiving this prepayment requirement will provide support to our businesses at a time when they are doing their part to help us prevent the spread of the virus.”

Business taxpayers with a tax liability greater than $25,000 in the third quarter of the preceding year are normally required to make monthly sales tax prepayments by the 20th of each month to the state. But since many businesses have had to cease operations if considered not “life-sustaining” under the governor’s emergency response to the coronavirus spread, the state revenue department has eased several tax deadlines this year to help businesses retain cash flow.

The state revenue department has extended the deadline to file state personal income tax returns to July 15, extended the deadline to file information returns related to S corporation, partnerships and estates to July 15 and extended the due date for corporations with tax returns due in May to Aug. 14.

“We will continue to work with Gov. Wolf and members of his administration to consider other steps that we can take to help the business community,” Revenue Secretary Dan Hassell said. “It’s important that we do everything that we can to help businesses during this unprecedented health crisis.”

Justin Henry is the regional reporter for the Central Penn Business Journal and the Lehigh Valley Business. He can be reached at jhenry@bridgetowermedia.com.

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