By Todd Northrop
The small number of states that don't tax lottery prizes has just shrunk by one state.
Pennsylvania lawmakers approved levying new taxes Wednesday on a variety of different things — including lottery prizes — to help support the $31.5 billion state budget that went into effect earlier this week.
The tax bill was approved by a 116-75 vote in the House and 28-22 vote in the Senate. Democrat Gov. Tom Wolf quickly signed the tax bill and related bills to complete the budget process into law. Lawmakers went home for the summer.
The action marks the resolution of nearly two weeks of behind-the-scenes haggling to come up with needed revenue sources after lawmakers approved the budget bill for fiscal 2016-17 on June 30.
As a result of the legislation, Pennsylvania lottery winnings will be subject to the state's 3.07 percent state personal income tax. It is unknown at this time how much of that tax will be withheld at the time of prize payout.
In addition to the new lottery taxes, the bill adds other revenue-generating measures, including:
- Increases the state cigarette tax by $1 to $2.60 a pack effective Aug. 1
- Imposes a 55-cents-an-ounce tax on roll-your-own and smokeless tobacco
- Adds a 40 percent wholesale tax on electronic cigarettes and other vaping devices
- Increases a state bank shares tax
- Extends the state's 6 percent sales tax to digital downloads, including video, streaming video, books, games, music apps and satellite radio effective Aug. 1
- Closes a loophole that allowed retailers to keep 1 percent of tax for themselves
- Allows consumers to buy wine in supermarkets
- Increases the state tax on casinos' gross revenue from table games by 2 percent
The budget is also being shored up by a number of one-time transfers among state funds and a $200 million five-year loan from a state malpractice liability fund for doctors. A tax amnesty program is also being instituted in order to bring in additional past due taxes.
Well, well.
The Gov and lawmakers took a poop on their citizens and hightailed it on home.
l just hope that California does not follow suit.
The power to tax is the power to destroy.
The legislature may be up for re-election in November. They will see if the voters notice these taxes.
Noise-gate, I agree with you about our California. Lotteries are a way to increase the States income. Why hinder that mission?
Are the Lawmakers Exempt from the Lottery Winnings Income Tax?
If i could be anonymous....I would not really care. But like always, they take without giving
Pennsylvania is The State Of Corruption!
Hey... look if you took the annuity out as a PA resident, it's time to move to a new state or end up with less.
One of the reasons the cash option is usually better. You know the tax situation now, and you can arrange the future income streams to minimize your taxes.
with these words of wisdom!
I'll bet they still try to tax you if you move!
This was passed with the help of RINO Dave Reed!
This says it all
Our townhall meeting had this as a topic of discussion back in November. Signatures were presented to thwart off this tax. Guess our representatives paid no mind to it.
Can someone advise if this is retroactive to payouts commencing from january 2016?
I recall New Jersey pulling this stunt and each year the taxes increased .....
Thank you PA for yet another tax to dig out the mismanaged budget projection. !
Now ya gotta PAY to win. !
The Wolf is knocking at the door.
This is wholesale greed if I ever saw it.
Many of these lawmakers are pulling in 6 figures, the people who will pay for this are pulling in 5.
And right around the corner, the 2017 Obamacare Employer Mandates, the new tax structure and the changes in Health care insurance costs, oh , and the increase for not having insurance.
Hope there is a special place in hell for all these people who believe they can take from us to fund their opulent lifestyles.
You really gonna complain about a 3% tax increase? Taxes are absurdly low, we need real increases.
I am fairly certain that California is looking at that possibility especially after the Chino Hills PB winner turned in their ticket. 13.3% is tough to overlook especially with the financial hardship the state is experiencing.
yes and its completely acceptable to complain and bring to the attention of the public.
today 3% , next year another 1%. Inch by inch more proceeds will go to the state.
Do you get a 3% raise each year? Some of us do not.
pandoras' box has been opened.
No we don't. After college, get married, start a family then tell us the government should take more of the money you earned.
Retroactive may depend on how many big winners PA had.
Greedy Jersey passed the law late in the year, (forget which) but there had been a big winner the previous springtime
and they could not keep their greedy paws off it !
Hard to top Jersey when it come to reaching into peoples pocket's.
They even want to raise our gas tax by 23cents , citing that it's the 2nd lowest in the country,
as tho that's a reason for raising it.
Greedy pols know they can get away with this B/C only winners will complain... and you know...not enough of them to scare them.
They also know winners will get no sympathy from non-winners and even less from non-players.
Explain why you believe in higher taxes. Let us all in on your reasons.
Are you one of those Bernie or bust or a disciple of his who think taxes should be 50-60% in order to pay for kids to have free college etc? What do you define as an exceptable tax rate for all Americans? Pray Tell.
Because mommy and daddy are liberals and he's a college student with no real life experiences.
Hmm, the other guy who called himself "King " said
" You know who l am?
Mowgli : No.
King : l am the King of the bander log. Call me Louie-..
. Guess who KingofEarth?
I can't decide whether you're on drugs or just trolling. (or both)
You seriously can't believe we need tax increases...unless YOU don't pay any, then it becomes crystal clear.
Ding Ding Ding! I believe we have a winner!
I wonder if the taxable amount holds at $601.00 and up?
I hope their summer break is miserable...bad food on their cruises, sea sickness,
on the plane to Europe air sickness and bad weiner schnitzel in Germany.
Every one of these weasels needs to start feeling what others are in PA. Summer
break is not an option for most but these clowns are going to enjoy theirs knowing
they worked hard to earn it...right.. An almost 2 fold increase per pack on cigarettes, .55/
ounce on tobacco and raised taxes on vaps? Oh and availability of wine in supermarkets!
I think it will impact the ones least able to afford it the most.. Their minimal wages are
not enough to afford $7.00 per pack cigarettes but they'll find a way to keep up. I don't
begrudge smoker's smoking and the added taxes are making that option a difficult one
to continue. Minimum wage is a joke, who can live on that and they want to target working
poor by taxing something most enjoy. Why, if they really had to, couldn't they focus on
something everyone uses and spread the penalty more evenly? Gas, clothes, milk, liquor..
that way more contribute. PA lawmakers should be required to work through break and
contribute their earnings to fix the mess they can't effectively manage. Even half of it
would help.
He has posted elsewhere that he is a far left socialist liberal who favors the 90% tax rate from the 1950's while also stating that MSNBC is for center-right moderate conservatives like Obama and Hillary....lol!! Go back and look at some of his previous posts to confirm it yourself as it boggles the mind how anyone thinks this is normal.
These jackpots advertised amounts are fiction. After taxes and reduced cash sum payout a winner receives less than half. Which is not amusing or amoosing ....
Thanks haymaker! Dang New Jersey is relentless. Pa will follow suit.
Neighbor said personal income starts from january... And this tax falls under that.
I agree with the poster who mentioned a more general tax ... Makes sense! Not that taxes are encouraged...
Tighening spending should have been its goal.
I agree. They (MUSL) prey on the occasional novice players who always seem to think the advertised annuity is what they receive (most don't even factor taxes).
Taxes are needed to be a developed country. We have one of the smallest rates in the developed world, it's time to catch up to our peers.
Bernie is a moderate centrist who flip flops between the center-left and center-right. 70% is a good rate, not too high or low.
Nope. They're both conservative trump supporters.
Now I know you're full of BS. Having fun with us?
We are a developed country, hello, were have you been? and, That does not make sense, you want us to catch up to who, France? Greece? Cuba? Japan?
You only want higher taxes if they will somehow end up in your pocket, now take your developed country BS AND SHOVE IT, AND ANYONE WHO THINKS WE ARE NOT A DEVELOPED COUNTRY IS A MORON.
Wait until you start earning some real money and see how you appreciate a high tax rate.
Apples don't fall far from the tree kingofreak.
The Private sector creates more then any Government ever could.
He's a troll , a simpleton at best.
Another tax evader in the making. Do as he says not as he does mentality.
Had to leave, hurry and get your friend, I clearly pointed out the differences in speaking styles, not the fonts like you claim, I'll know if it's not you. As they say in the world of lottery, I got your number!
These type tax increases gives credence to those that say take the money (lump sum cash) and run. see Annuity vs Cash Value topic
https://www.lotterypost.com/thread/305012
Lol lol
You mean he works for Hillary? Lol
rotflmao.
70% state
33% federal
2% local
7%sales
3% real estate
already it's over 100% taxation , getting a second job won't help.
Getting a doc to examine someone's thinking seems cheaper and wiser:)
Add me to that list.
Wow, states and the Federal government just love to rape lottery winners in the rear end!
Next year they will tax my Cialis, Levitra, and Viagra.
No more fun.
.
I used to go to PA to play, explicitly for the purpose of relocating there, collecting, and off to Californy.
Lately, I had been expecting the dreadful PA news.
For me, it mildly dims the light on my lotto dream.
I need to leave this area badly. Eventually, I will.
If anyone has advice on where in No. Californy I could find an affordable place, where I can grow the green stuff
as my medical condition warrants, please do.
I think I'm finished here. Bye
Groppo
Humboldt county, the weed capital of CA just passed an ordinance where u can grow ur own for medical and personal use.
Indica is the most popular strain. Happy puffing!
Smokers are huffing and puffing about $1 increase per pack. It pays to leave a poor state like PA.
Several years back, I want to say in 2010, New Hampshire enacted an absurd 10% tax on lottery winnings. The repealed it just a few years later after a considerable decline in lottery sales, most notably in border areas with other states. Perhaps the same thing will happen in PA.
This governor is even worse. How people believe everything about him is one thing. But I recall reading comments that yeah our commonwealth is getting <snip> on with these idiots who are in office.
Sad part is almost half the population have his same mentality. They pay no federal taxes, always want more subsidies and believe that the American dream is to have complete freedom to do nothing, have no productive value other than to continually complain/protest at those who actually work and indirectly support them.
We have our teachers and the media to thank for this calamity.
I rest my case.
Being the Hockey fan that I am, I can tell you this, many NHL'ERS are becoming American citizens because the cannot take the taxes in their home country.
Now let's get some facts straight, the 47% are working age people who work only part time or not at all.
The seniors, worked and paid taxes all their lives, they paid in Social Security and are entitled to it.
They Paid into Medicare and pay premiums for supplemental health insurance, nothing in your reasoning suggests putting people to work and creating a healthy economy.
Those countries to not provide free anything, they take that money by force from those who work hard and are successful. You want to punish people for being better then you , and that's what they are, better then you.
PA Lottery website stated that:
"Are Pennsylvania Lottery prizes taxable?
Yes. Beginning with prizes awarded January 1, 2016, Pennsylvania Lottery monetary prizes are taxable income and should be reported by winners when filing federal and state taxes.
Under law, Lottery cash prizes over $5,000 are subject to withholding. This means that the Lottery will withhold 25 percent in federal taxes and 3.07 percent in state taxes before paying the prize.
For all prizes of $600 or more, winners will receive a W-2G form from the Lottery to submit with their tax returns. These forms usually arrive by mail in February for prizes awarded in the preceding calendar year.
A winner's total tax liability on Lottery prizes depends on factors including income, deductions, exemptions and other factors, so please consult a qualified tax professional with any questions before filing a tax return. The Lottery cannot provide tax filing advice to individuals."
So looks like winners of 5k or more will now pay retroactive from january 2016. Bites for those who just won the raffle.....
Not Surprised PA isn't this the State of Brotherly LOVE
Philly is the city of brotherly love.
Pennsylvania is the keystone state.
Interestingly I wonder now if Philly will add an extra tax to lottery wins the way the nyc boroughs have.
Pa lottery players already fund the seniors so that the state doesn't have to budget for. They did not help out the seniors on this budget since the real estate rebates from gaming didn't really help as predicted....
wouldn't surprise me if Philly did that, after all they passed that soft drink tax that nearly doubles the price of a 2liter soda.
I still have friends and family there, but they all live near the Bucks or Montgomery county line and it's just a short drive to avoid it.
But if you live there and win that would be another story.
70% of the 47% are elderly and Republicans in the conferacy. You old Southern Reps are the laziest and most ignorant leeches in the world. And you have the nerve to say that you're anything but.
Tell that to literally everyone given the 47% INCLUDES the elderly. You can look it up, do so.
TheGameGrl is right, it's not the state, it's Philadelphia, the City of Brotherly Love, also known as the City of Brotherly Shove.
Personally, I'd be far more upset with a state that lets winners remain anonymous changing it's policy to disallow it then a state that started taxing winners.
Hey, there's no call for that nasty hateful language, you should be banned
More Hate Speech
A Republican SJW. I heard they existed, but I didn't think it was possible.
So you scooped this wealth of information straight out of the toilet right after you took a dump? Nice try there but you may get more relevant data by other means.
On a positive note you wont have stinky fingers when attempting to eat your next meal and folks around you might appreciate it.
I like the new additional sales tax revenue that Pennsylvania is going to impose.
Ok, so now they are going to tax lottery winnings - I can accept that. Buy why make it retroactive to Jan 2016? Who sponsored this bill? You can offset your winnings by proving you had equal losses but you must be able to substantiate those losses by showing copies of losing tickets, keeping a log of wins and losses, a journal, cancelled checks, etc. So how are we to substantiate losses from Jan thru August. Who would have kept those records? You want to raise money for the state of PA? Cut down on the size of the legislature and eliminate all of the dead weight in Harrisburg. The increase in the cigarette tax doesn't really bother me but it is a regressive tax that will impact low income populace more than anyone else. TERM LIMITS - TERM LIMITS - TERM LIMITS.