Pocono News Section

Governor's Budget Calls for Sales Tax Changes

Governor's Budget Calls for Sales Tax Changes - Tuesday, February 9, 2010 at 6:35PM EST

Reported by: Eva Mastromatteo
Tuesday, Feb 9, 2010 @ 06:35pm EST
Did you ever think about the things you do, and if they're taxed?
Admission to the movie theater and buying some candy is exempt from the Pennsylvania sales tax. But if you buy popcorn or soda from this same counter, you have to pay a sales tax. Governor Ed Rendell cites loopholes, saying, "My proposal calls for the elimination of these loopholes so that everyone pays his or her fair share of the sales tax. "
The governor wants food, clothing and prescription drugs to remain tax-free. His plan is to eliminate 74 non-essential exemptions to the state sales tax and drop the tax from six to four perdent.
Dorothy Gaughn of Wilkes-Barre says, "Actually, I think it would even out i the end."
Some consumers don't view the tax as an issue.
Co-owner of Liberty Cleaners in Wilkes-Barre, Stacey Papadopolos, says "They (customers) never question us. They never ask why its taxed or not."
Liberty Cleaners says drapes and comforters are taxed because they're home items, while clothes are not.
A loophole: Buying detergent is taxed. Soda is taxed, too. Now fruit juices and bottled water could see the same. Rendell says the plan would also tax services from lawyers and accountants, while preserving an exemption for manufacturers and non-profit cultural institutions.
Jim Straub of KIngston doesn't buy it.
"I just feel like they're playing with it. Not seriously dealing with it. They're playing with it."
And by "they," he means legislators, who now have a lot of homework ahead of them, as they work to review and revise the governor's proposal over the next few months.