In the near future, I plan to introduce legislation to repeal the requirement for Pennsylvania businesses to remit “prepayments” for their sales tax collections.

As many of you know, the Accelerated Sales Tax (AST) Prepayment requires Pennsylvania businesses to actually remit their sales tax as prepayments based on the previous period's tax payment. As a result, many seasonal businesses and businesses with less predictable income streams are unfairly penalized by this policy, needlessly creating serious cash flow challenges for many of our valued employers.  

In an effort to simplify and improve our competitiveness in state tax law, my legislation seeks to take a very tangible step by repealing this prepayment requirement and thus allowing our businesses to simply remit collected sales tax revenues in accordance with their designated filing period (i.e. monthly, quarterly, or semi-annual basis). 

It is often cited how complex and onerous it can be to navigate Pennsylvania tax law, particularly for our business community. It’s time we make this change to eliminate the prepayment requirement to help foster an economic environment in which businesses want to locate and grow in Pennsylvania, thereby benefiting our constituents and communities.

I respectfully ask you to join me as a co-sponsor of this legislation.

Statutes/Laws affected:
Printer's No. 1509 (Apr 28, 2025): P.L.6, No.2