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Bill > SB206
PA SB206
In personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.
summary
Introduced
01/29/2025
01/29/2025
In Committee
01/29/2025
01/29/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Regular Session
Bill Summary
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon; providing procedures for the payment, collection, administration and enforcement thereof; providing for tax credits in certain cases; conferring powers and imposing duties upon the Department of Revenue, certain employers, fiduciaries, individuals, persons, corporations and other entities; prescribing crimes, offenses and penalties," in personal income tax, further providing for imposition of tax, for when withholding not required, for returns and liability and for return of Pennsylvania S corporation.
AI Summary
This bill proposes significant changes to Pennsylvania's personal income tax regulations, primarily focusing on the expiration of current tax provisions at the end of 2025. Specifically, the bill eliminates the current 3.07% personal income tax rate for residents, individuals, estates, and trusts starting January 1, 2026, effectively ending personal income tax collection in the state. Additionally, the bill removes requirements for employers to withhold state income taxes from employee wages after January 1, 2026, and eliminates the necessity for taxpayers to file state income tax returns and for Pennsylvania S corporations to submit detailed tax returns for taxable years beginning on or after December 31, 2025. These changes would fundamentally alter Pennsylvania's tax structure by essentially sunsetting the state's personal income tax system. The bill provides for immediate implementation and includes standard provisions repealing any inconsistent previous laws or regulations, suggesting a comprehensive approach to dismantling the current personal income tax framework.
Committee Categories
Budget and Finance
Sponsors (6)
Greg Rothman (R)*,
Jarrett Coleman (R),
Jay Costa (D),
Chris Gebhard (R),
Doug Mastriano (R),
Devlin Robinson (R),
Last Action
Referred to FINANCE (on 01/29/2025)
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