Legislative Update HARRISBURG OVERVIEW:
Now after months of nearly consecutive session, the Pennsylvania General Assembly is taking a short recess. While official summer session schedules have not been released, we are anticipating that the legislature returns for a couple weeks in August. With the elections quickly approaching and the second half of the 2020-2021 budget incomplete, time is very limited.
It goes without saying that a LOT has changed in both politics and our everyday lives since our last report. Below is a brief timeline of the past few months in Harrisburg. While the state was slowly reopening after the COVID-19 shutdowns, the legislature passed a short-term $26 billion budget plan for Fiscal Year 2020-21. The plan essentially provided for five-months’ worth of spending based on the blueprint from last year’s budget. It was signed by the Governor on May 29th. It didn’t include any tax increases. However, the legislature will need to return to negotiate the final seven-months of the budget later in 2020. And based on the anticipated multi-billion-dollar shortfall, tax increases will likely be implemented. This is something we will be monitoring closely on behalf of PDFA’s members.
Most recently, discussion around the Capitol (and around the Commonwealth) has largely been focused on school re-openings post-COVID-19 closures: if, when and how? Closely tied to that, there are questions about the restarting of school sports. Right now, it appears that most of these decisions are being left to the local districts, under the guidance of the Departments of Health and Education. Our office will continue to provide updates on this topic as they become available.
It’s also important to note that the House of Representatives’ Speaker Mike Turzai (R-Allegheny) resigned in June to take a position as General Counsel for Peoples Gas in Pittsburgh. As a result, there were several shifts within the Republican Caucus leadership including:
LEGISLATION: SB 1036 – Tax Exemption Clarification As you are aware, one of PDFA’s top legislative priorities this session is Senator Doug Mastriano’s (R-Franklin) SB 1036. It would amend the Tax Reform Code to clarify that Cervidae livestock operations are exempt from the Sales & Use Tax, regardless of whether the animals are marketed for game, recreational purposes, animal parts or products, or human consumption. Similarly, Cervidae livestock operations that propagate and raise cervids for hunting shall be exempt from the Sales & Use Tax. This language will align the Tax Code with Act 51 of 2006, which defined and recognized “Cervidae livestock operations” as normal agricultural operations, and will hopefully provide the Department of Revenue with much-needed clarification.
• Majority Leader Bryan Cutler (R-Lancaster) was elected as the new Speaker of the House; • Majority Whip Kerry Benninghoff (R-Centre) was elected as the new Majority Leader in the House; and • Majority Policy Committee Chairwoman Representative Donna Oberlander (R-Clarion) was elected to serve as the new Majority Whip. Legislative session continued for the next few months, with many legislators and staff continuing to work remotely. They returned to bills that were put on a temporary hold during the shutdown, including PDFA’s SB 1036. See below for more details.
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