Pennsylvania is looking to close a $3 billion budget deficit and one of the proposals being considered is extending the state's 6% sales and use tax to commercial storage services.
A similar proposal was introduced in 2010, but warehouse operators successfully mounted a challenge to stop the tax. The new proposal was intended to become effective July 1, 2017, but has faced strong opposition. Cash hungry states continue to look for ways to close budget deficits. A growing trend in state sales and use taxation is to extend the state’s sales and use tax rate to currently exempted services in hopes to bring in additional revenue to offset budget deficits.
Pennsylvania is attempting to wrap up their budget proposals over the next several weeks, so it remains to be seen if this tax is still in the works.