Caltagirone: Traffic signal tax exemption needs clarification

HARRISBURG, June 18 – State Rep. Thomas Caltagirone, D-Berks, today announced that H.B. 1168 has been approved by the House Finance Committee.

“This bill is all about fixing an interpretation of tax exemption for traffic signals,” Caltagirone said. “I want to make sure that our local municipalities are protected from paying hidden fees to collect more revenue. The way that the law is currently being interpreted leads to higher costs for our local municipalities. We need to clarify the language of this law so that costs continue to stay low for the maintenance and installation of traffic signals. In my opinion, the current narrow interpretation is absurd.”

The tax code provides an exemption from the state Sales and Use Tax for traffic signals as long as the traffic signal will be transferred to a tax-exempt governmental entity. In the past, the Department of Revenue exempted all the materials used to install traffic signals, but under the last administration the department narrowed the interpretation to only exempt the light assembly – the housing that holds the red, yellow and green light.

More information on this or other state-related matters is available by contacting Caltagirone’s district office at 610-376-1529.


CONTACT: Daniel Bixler
House Democratic Communications Office
Phone: 717-787-7895 ext. 6221