Pa. Gov. Ridge Proposes "Tax-Free PC" Holiday
- By Dan Caterinicchia, Dan Caterinicchia
- Mar 05, 2000
Pennsylvanians soon will have two week-long opportunities to purchase personal
computers tax-free, thanks to an initiative announced Thursday by Gov. Tom
Ridge's "Tax-Free PC" holiday is designed to encourage residents to
embrace technology in their homes.
"It's so important for our children to have access to computers at a
young age, where they can learn skills that will carry them into the technology-driven
work force of the 21st century," Ridge said in a statement. "And we want
their parents and grandparents to feel comfortable using computers, too,
so they also can enjoy the benefits of being online."
The tax-free holidays will give families who normally cannot afford
the $1,800 average cost of a computer and related equipment a chance to
purchase them without having to pay the state's 6 percent sales tax.
"This tax cut would save our consumer more than $100 on that purchase,"
he said. "Plus, we hope to work with our retailers to create additional
sales at the time of the tax holiday so consumers can save a lot more."
The fiscal impact to the state is expected to be $8.3 million in lost
tax revenue, including $200,000 each for Philadelphia and Allegheny counties.
Ridge introduced the sales tax holiday for computers during his budget
address in February. "It will need legislative approval as part of the [overall]
budget process, but we're pretty confident that will happen," said Ridge
spokesman Steve Aaron.
The two sales tax-free PC weeks will coincide with back-to-school season
in August and the President's Day holiday in February of 2001.