Budget & Taxes

SB 207 gradually reduces Pennsylvania's corporate net income tax rate over time. It lowers the tax rate from 9.99% (for 1995-2022) to 4.99% by 2031, with incremental reductions each year (e.g., 8.99% for 2023, 8.49% for 2024, 7.99% for 2025). This bill directly affects corporations operating in Pennsylvania that pay state corporate income tax. The key mechanism is a scheduled, multi-year reduction in the tax rate for corporate net income, as specified in Section 402(b) of the Tax Reform Code of 1971.

SB 473 amends Pennsylvania's 1971 Tax Reform Code to adjust discounts for businesses that pay sales and use tax on time. It directly affects businesses filing sales tax returns (monthly, quarterly, or semiannually) by offering two discount options: a flat fee per return ($25, $75, or $150 based on filing frequency) plus a percentage discount (1% on the first $1 million of taxable revenue, then 0.25% on amounts over $1 million). The bill replaces the previous discount structure with these specific, tiered provisions to incentivize prompt tax payments. The changes take effect 60 days after enactment.