Tax & Accounting Blog

Pennsylvania to Add Use Tax Line to Income Tax Forms

Indirect Tax, Sales and Use Tax May 31, 2011

2011 Income tax forms will now include a line for taxpayers to pay their use taxes. It is estimated that approximately $350 million dollars per year of use tax on internet purchases does not get reported or paid. The Pennsylvania government has included a chart which estimates use tax owed based on household income, in case consumers weren’t tracking the 6% state tax owed on purchases where sales tax was not charged at the point of sale.

The cost of auditing everyone who fills in a “0” would be very expensive, but legislators hope that the line will at least make residents aware of the tax obligation. There is currently a form for remitting use tax due, but it is separate and apparently most residents don’t fill it out.