Welcome to our monthly legislative updates on what is happening in Harrisburg. We’re starting off 2021 with a recap of January and a look at Governor Wolf’s proposed 2021 legislative plan.
On February 3, Governor Wolf unveiled his proposal for Pennsylvania's 2021 legislative plan which looks to prioritize education, minimum wage increase, workforce recovery, human services protection, and COVID-19 safety. The $37.87 billion budget is due by July 1, with budget hearings scheduled between March 8 and April 22. An outline of the plan can be found here.
You can expect robust discussion by our legislators on the various aspects of the budget and we will look to update you moving forward.
We also wanted to highlight some legislation of interest from January.
House Bill 198 – Intended to exempt the forgiveness of indebtedness granted under the Paycheck Protection Program (PPP) from state personal income tax. If proceeds of a loan issued under the program were used by a business to cover payroll costs, payments of interest on mortgage and rent obligations, and utility payments, the business may have the amount forgiven from federal taxation.
Sales and Use Tax Bulletin 2021-01 – Face masks, including nonmedical cloth and disposable, are exempt from sales tax. “As of Oct. 30, 2020, in response to the ubiquitous use of nonmedical masks and face coverings, the department recognizes that both cloth and disposable nonmedical masks and face coverings are exempt from sales and use tax as everyday wear or clothing.”
Senate Bill 12 – Would raise Pennsylvania’s minimum wage to $12/hour, with a pathway to $15/hour. Would also eliminate “tipped minimum wage” ensuring all workers are making a living wage that is not dependent on patron generosity. This echoes efforts being discussed on a national level