Pennsylvania state Reps. Johanny Cepeda-Freytiz and Steve Samuelson have introduced House Bill 2300, legislation that would create a state program to automatically collect and remit sales tax in real time for every transaction. The bill was introduced on March 20, 2026, and referred to the House Finance Committee.
Under the proposal, software would handle the calculation, collection, and remittance of Pennsylvania’s 6% sales tax (plus applicable local taxes) directly to the state at the point of sale. Businesses would no longer need to hold collected tax and file periodic returns on their own.
For the roughly 1 million small businesses operating in Pennsylvania, the change could eliminate one of the most time-consuming parts of running a shop or storefront. Right now, business owners must track taxable sales, file returns monthly or quarterly through the state’s myPATH portal, and face penalties for late or incorrect filings.
The bill also includes an enforcement hook. Businesses with delinquent sales tax balances exceeding $5,000 could be required to use the automated software. Participation would otherwise be voluntary at first, and taxpayers could continue using the system after any mandatory period ends.
HB 2300 is a partisan Democrat bill backed by 9 sponsors. It has not yet received Republican co-sponsors, which matters in a closely divided state legislature. The bill’s first hearing before the House Finance Committee is scheduled for March 25, 2026, at 10:00 AM in Room 523 of the Irvis Office Building in Harrisburg.
Small business owners in Pennsylvania do not need to take any immediate action. The bill is in its earliest stage and would need to clear committee, pass both chambers, and be signed by the governor before it becomes law. But it is worth watching, especially for businesses that have struggled with sales tax compliance or have outstanding balances with the state.
The next step is the March 25 committee hearing, which will signal how much traction this idea has among lawmakers.
