Last year, Governor Tom Wolf has proposed a $330 million Tech Tax as his primary vehicle to balance the state’s 2017-18 budget.
The Council’s membership quickly responded to our rally cry against the tax. After receiving more than 3,300 letters, phone calls and office visits from concerned technology leaders, the General Assembly ultimately rejected the Governor’s proposal.
Our Government Affairs team is closely monitoring the 2018 budget process and stands ready to once again rally opposition to this tax if the Governor chooses to revisit the issue.
Tech Tax Threat:
Had this tax been adopted, it would have impacted nearly every business in the Commonwealth. Many business leaders still remembered the last incarnation of the Tech Tax in Pennsylvania (the Computer Services Tax), which was adopted in 1991 and repealed six years later after intensive lobbying from our state's technology sector.
The estimated $330 million tax hike on technology investments is highest business tax ever proposed by Governor Wolf, exceeding even his proposed levy on the Marcellus shale industry.
Breaking News: Speaker Turzai just issued a statement that he is opposed to the tech tax.
Looking Back: Computer Servcies Sales and Use Tax Study from 1997
Who Should Be Concerned?
Consumers of technology services (listed below) will face a new sales tax of up to seven percent in Allegheny County.
These are the services that we project will face the new Tech Tax:
Data Processing, Hosting and Related Services (NAICS code 518210)
- Application hosting
- Application service providers (ASPs)
- ASPs (Application Service Providers)
- Automated data processing services
- Computer data storage services
- Computer input preparation services
- Computer time leasing
- Computer time rental
- Computer time sharing services
- Data capture imaging services
- Data entry services
- Data processing computer services
- Data processing services (except payroll services, financial transaction processing services)
- Disk and diskette recertification services
- Electronic data processing services
- Media streaming services
- Microfiche recording and imaging services
- Microfilm recording and imaging services
- Optical scanning services
- Scanning services, optical
- Video and audio streaming services
- Web hosting
Custom Computer Programming Services (NAICS code 541511)
- Applications software programming services, custom computer
- Computer program or software development, custom
- Computer programming services, custom
- Computer software analysis and design services, custom
- Computer software programming services, custom
- Computer software support services, custom
- Programming services, custom computer
- Software analysis and design services, custom computer
- Software programming services, custom computer
- Web (i.e. Internet) page design services, custom
Computer Systems Design Services (NAICS code 541512)
- CAD (computer-aided design) systems integration design services
- CAE (computer-aided engineering) systems integration design services
- CAM (computer-aided manufacturing) systems integration design services
- Computer hardware consulting services or consultants
- Computer software consulting services or consultants
- Computer systems integration analysis and design services
- Computer systems integration design consulting services
- Computer systems integrator services
- Computer-aided design (CAD) systems integration design services
- Computer-aided engineering (CAE) systems integration design services
- Computer-aided manufacturing (CAM) systems integration design services
- Information management computer systems integration design services
- Local area network (LAN) computer systems integration design services
- Network systems integration design services, computer
- Office automation computer systems integration design services
- Systems integration design consulting services, computer
- Systems integration design services, computer
Computer Facilities Management Services (NAICS code 541513)
- Computer systems facilities (i.e. clients’ facilities) management and operation services
- Data processing facilities (i.e. clients’ facilities) management and operation services
- Facilities (i.e., clients’ facilities) management and operation services, computer systems or data processing
- Facilities (i.e., clients’ facilities) support services, computer systems or data processing.
Other Computer Related Services (NAICS code 541519)
- Computer disaster recovery services
- Software installation services, computer
What Can You Do To Help
TODAY: We need your help in contacting legislators to urge their opposition to the Tech Tax. You can use the Council’s advocacy tool here to quickly and easily contact your legislator:
Please contact Brian Kennedy on our team if you are able to join us: firstname.lastname@example.org