Businesses in these areas are exempt from most business taxes. The purchaser gives the completed form to the seller when claiming an exemption on Sales Tax. The expiration will either be December 31 st of the current year or March 31 st of the following year. The benefits and complexity of KOZs derive from the wide array of state and local taxes on which the program is based. Keystone Opportunity Zones (KOZs) are areas designated by the Commonwealth of Pennsylvania that would benefit from additional investment. Businesses looking to expand from out of state need to locate and operate within a KOZ to receive state and local business tax exemptions. Uses. Provides certain state and local tax abatement to businesses and residents locating in designated zones. Mark Twain once said, “The report of my death was an exaggeration.” Similarly, the Pennsylvania Keystone Opportunity Zone (KOZ)1 program lives on and remains a driving force in Pennsylvania’s economic development, with some tax benefits extending out to 2035. The KOZ Sales and Use Tax Certificate of Exemption contain an expiration date on the certificate. Applicants are required under law to discontinue the use of a certificate after the expiration date and reapply for the program. 4. In the event a qualified business is denied exemption from Sales and Use Tax, the business will be required to pay the tax and petition for refund with the Board of Appeals. Effective immediately, the legislation authorizes the extension of tax exemptions, deductions, abatements, and credits; the… EXEMPT ORGANIZATIONS: This form may be used in conjunction with form REV-1715, Exempt Organization Declaration of Sales Tax Exemption, when a purchase of $200 or more is made by an organization which is registered with the PA Department of Revenue as an exempt organization. Designated by municipality, school district and county and approved by the Commonwealth of Pennsylvania, KOZ-eligible tenants may be exempt from state and local business taxes through a designated period. While the Pennsylvania sales tax of 6% applies to most transactions, there are certain items that may be exempt from taxation. What if the vendors do not want to accept the KOZ/KOEZ Sales and Use Tax PA Tax Exemption Certificate (REV-1220)? 4. EXEMPT ORGANIZATIONS: This form may be used in conjunction with form REV-1715, Exempt Organization Declaration of Sales Tax Exemption, when a purchase of $200 or more is made by an organization which is registered with the PA Department of Revenue as an exempt organization. DO NOT RETURN THIS FORM TO THE PA DEPARTMENT OF REVENUE. For companies already located in Pennsylvania, these exemptions can be realized, provided companies either: Increase full-time employment by at least 20 percent in the first full year in the Zone or harrisburg pa 17128-0901 pennsylvania exemption certificate state and local sales and use tax 0 state 6% and local 1 % hotel occupancy tax 0 public transportation assistance taxes and fees (pta) 0 vehicle rental tax (vrt) 0 additional local, city, county hotel tax * this form cannot be used to obtain a sales tax … In Pennsylvania, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.. Businesses, property owners and residents that are located in a KOZ, KOEZ/KOIZ are eligible to receive significant state and local tax benefits. Overview. The vendor is not required to accept the Exemption Form. Properly completed exemption certificates provide a valid reason for the exemption and are accepted in good faith to relieve the vendor from the collection of tax. FORM TO THE PA DEPARTMENT OF REVENUE. Sales Tax Exemptions in Pennsylvania . Using the REV-1220, exemptions from tax can be claimed for the following reasons: Companies that locate within a Keystone Opportunity Zone (KOZ) will enjoy tax exempt benefits. This page discusses various sales tax exemptions in Pennsylvania. Pennsylvania Governor Tom Corbett has signed legislation amending the Keystone Opportunity Zone (KOZ), Keystone Opportunity Expansion Zone (KOEZ), and Keystone Opportunity Improvement Zone (KOIZ) Act.