The PA Chamber joined with several business groups in sending a letter to state lawmakers expressing opposition to the proposed elimination of the vendor sales tax discount. As part of his 2010-11 proposed state budget, Gov. Ed Rendell wants to eliminate the 1 percent discount for non-motor sales tax. Currently, any business with a Pennsylvania sales tax license is eligible for the discount when the business submits its sales tax return and full payment on or before the due date. The administration wants to place the $73.6 million that would be generated from the discount’s repeal into a reserve account to fill budget gaps once federal stimulus dollars cease. The coalition letter took issue with the governor’s assessment that the cost and burden of businesses serving as tax collectors for the state is “fairly inconsequential.” According to a national study, retailers can incur costs of up to 13.47 percent for remitting and collecting the sales tax. This study also found that between 75 percent and 92 percent of retailers’ costs are not adequately compensated through vendor discounts. To read the letter, click here. In addition to the PA Chamber, the letter was signed by the Broadband Cable Association of Pennsylvania; Pennsylvania Retailers’ Association; National Federation of Independent Business; Pennsylvania Convenience Store Council; Pennsylvania Food Merchants Association; Comcast; Pennsylvania Restaurant Association; and the Pennsylvania E-Commerce Association.