Lawmakers look to taxes on Big Tech to help cover state spending needs
Pennsylvania lawmakers are discussing new taxes on the tech industry as part of upcoming budget negotiations. One proposal involves ending the state's sales tax exemption for data center construction and maintenance, aiming to recover projected revenue losses. This initiative seeks to balance the state's finances.
Pennsylvania lawmakers are currently negotiating the state's budget and exploring options to address a projected $2 billion tax revenue shortfall by 2031. Among the proposals being considered are new taxes targeting the tech industry.
One specific option floated includes eliminating the state's sales tax exemption that applies to purchases related to the construction and upkeep of data centers. Lawmakers aim to ensure the Shapiro administration holds corporate middlemen, like pharmacy benefit managers, accountable, though the primary focus mentioned regarding tech is the sales tax exemption.
The discussions are centered in Harrisburg as part of broader efforts to balance the commonwealth's financial books. The Latrobe Bulletin reported on these budget talks, highlighting the potential impact on the tech sector.