The budget-balancing tax plan passed earlier today by the Senate did not impact the PA Motor License Fund. Last year, the General Assembly enacted a plan essentially capping the draw of funds from the Motor License Fund to the General Fund that go to pay for State Police operations. Today’s action by the Senate does not change that action. Further, the Senate action leaves intact the accelerated decrease in the MLF diversion, from $802 to $778 million, which was included in the FY 2018 spending plan enacted in June. The Senate revenue package includes a severance tax on natural gas, raises the gross receipts tax on electric customers and requires the collection of sales taxes on most online transactions. It still must be passed by the House which has shown an unwillingness to increase taxes.
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