Pursuits

Digital Downloads Taxed as Pennsylvania Closes Budget Shortfall

  • Apps, e-cigarette taxes to help close $1.3 billion gap
  • Lawmakers passed revenue bills Wednesday to balance budget
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Pennsylvania’s legislature approved a hodgepodge of taxes to close a $1.3 billion budget shortfall that spurred S&P Global Ratings to warnBloomberg Terminal that it may downgrade the state.

Lawmakers Wednesday acted to extend taxes on previously exempt smokeless tobacco and e-cigarettes, increase the tax on a pack of cigarettes by $1, and levy the state’s 6 percent sales tax on digital downloads such as apps and music.