HARRISBURG — The Pennsylvania House of Representatives has unanimously approved legislation that would eliminate the state’s gross receipts tax on utility services.
House Bill 2224 would remove the nearly 6% tax currently applied to utility bills. Supporters of the measure estimate the change would reduce taxes paid by Pennsylvania residents and businesses by approximately $1.7 billion annually.
The gross receipts tax is collected on certain utility services and is reflected in the rates paid by consumers. Backers of the proposal say eliminating the tax would help reduce household expenses at a time when many families are facing higher costs for essential services.
The legislation was approved by a unanimous vote in the House on Monday.
House Bill 2224 will now move to the next stage of consideration in the Pennsylvania General Assembly.
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