Wolf expects $3 billion annually by cutting sales tax exemptions

Written by The Associated Press | Mar 18, 2015 9:27 AM

(Harrisburg) -- Governor Tom Wolf's administration says state government would reap $3 billion a year under its plan to expand a 6.6 percent sales tax to include transactions on 45 categories of products or services that are currently exempt. 

It released the list today. 

The money is a key part of the Democratic governor's plan to pump $3.2 billion a year into cutting school property taxes and providing $2 billion in new aid to pre-kindergarten programs and public schools over his four-year term. 

Increasing the tax rate by 10 percent to 6.6 percent would raise an extra $1 billion a year. But removing the exemptions is a much bigger source of money.

The biggest exemptions include purchases of non-prescription drugs, tickets to entertainment venues and the services of real estate agents.  

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