ABC27 WHTM Correction: Pa. to get tougher on online retailers

Correction: Pa. to get tougher on online retailers

The following article makes corrections and clarifications to a Feb. 2 report from abc27 News:

The state Department of Revenue has set a new deadline for online retailers and other and other out-of-state sellers with a physical presence in Pennsylvania to become licensed and begin collecting sales tax.

The steps must be completed by Sept. 1.

Revenue Secretary Dan Meuser said the deadline was extended after the department heard from a number of businesses that said the original Feb. 1 deadline was impractical.

Meuser said the deadline would not be extended again. He said businesses that do not become registered and begin collecting Pennsylvania sales tax by Sept. 1 will face a variety of escalating enforcement options over time, including assessment, audit, lien or referral to a collection agency or the state attorney general's office.

State residents who shop online are reminded to check receipts for sales tax charges, and save purchase records that do not reflect a sales tax charge. When sales tax isn't collected by the seller, it becomes the purchaser's responsibility by law to report and pay use tax.

Use tax has been on the books since 1953, but because many taxpayers are unaware of their obligations, Pennsylvania's Personal Income Tax Return forms - beginning in 2011 - will include a use tax line.

Physical presence includes not only traditional brick-and-mortar stores, but also distribution or fulfillment centers, and sales, service and delivery people who regularly come into the state.

The department said in a statement that "Governor Corbett's pledge against new taxes underscores the importance of equitably enforcing existing tax law, to ensure everyone pays his or her fair share of what's already due."

"To that end, the Department of Revenue is pursing sales and use tax collection from both the retailer aspect and the consumer side, to educate businesses and individuals and facilitate voluntary compliance."

"As the popularity of Internet and mail-order shopping grows, individual consumers' use tax compliance and e-commerce retailers' compliance with sales tax collection obligations become increasingly important.

"The department is confident its balanced approach to addressing the sales/use tax issue will begin to close a tax gap estimated at $380 million this year and help level the playing field among e-commerce and brick-and-mortar businesses in Pennsylvania."