The Pennsylvania General Assembly has advanced a bill to temporarily exempt restaurants, bars, and hotels from the sales tax.
Under S.B. 1249, the sales tax "may not be imposed on restaurants, bars and hotels during the Governor's declaration of emergency issued on March 6, 2020 . . . and any renewal declaration." The provision would expire 180 days after the effective date of the bill.
The bill was filed August 11 and moved to the Senate Finance Committee the same day. It is part of a nine-bill coronavirus relief package that includes stimulus checks, a personal income tax holiday, a manufacturing and production tax credit, and an extension of unemployment compensation charges relief.
The move is part of an aggressive push to provide relief to the bar, restaurant, and hotel industry, which saw revenues plummet after closure orders that limited gatherings to 25 percent of the venue’s capacity. Sales tax remittances from bars and restaurants between April and June were $138.8 million, which is a 43.7 percent drop from the same period in 2019, according to the Department of Revenue.
Legislators on both sides of the aisle have recently filed bills to support the industry, indicating common ground for a relief package.
On August 11, Sen. Patrick Stefano (R) filed a co-sponsorship memo on a package of four bills based on recommendations by the Pennsylvania Restaurant and Lodging Association and the Pennsylvania Licensed Beverage and Tavern Association. The legislation would remove the 25 percent occupancy requirement and the requirement that food be purchased with alcohol and would waive license renewal and permit fees for one year.
H.B. 2753, sponsored by Rep. Kurt Masser (R), would eliminate late fees on sales tax payments during the disaster emergency. The bill was moved to the House Finance Committee August 6.
H.B. 2789, filed August 3 by Rep. Gary Day (R), would allow restaurants to retain sales taxes collected during restriction orders. Once the restrictions are removed, the restaurant could apply to the DOR to convert the collected sales tax into a grant.
And on July 30, Democratic Sens. Pam Iovino and James Brewster filed a co-sponsorship memo on a six-bill rescue package for restaurant, taverns, and clubs. One bill would eliminate late fees and penalties for delayed sales tax payments through June 30, 2021; other legislation would waive fees for license renewals, permits, and off-premises catering, and would temporarily increase the discount on wholesale wine and spirits purchased from the state Liquor Control Board.