Here's A Place In The USA Where You Won't Pay Any Tax On Your Lottery Wins - Yet
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Many players outside the area probably don’t know if Pennsylvania taxes lottery winnings. PHOTO: ABC27
If you win Powerball or Mega Millions in Pennsylvania, you won't be paying state taxes - yet. Here's what happened when Dennis Owens of ABC27 asked five lawmakers about whether they knew that Pennsylvania doesn't tax winnings.
All five were unaware, including speaker of the House Mike Turzai.
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The Pennsylvania Lottery headquarters.PHOTO: ABC27
“I have to be honest,” Turzai (R-Allegheny) said with a smile. “I did not know lottery winnings were not subject to personal income tax.”
Neither did Representative Tom Murt (R-Montgomery/Philadelphia) when it was mentioned it to him at 11 a.m.
By noon, Murt said he was in the initial stages of crafting a bill to tax lottery proceeds.
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Powerball jackpot winner Steven Lloyd won $37 million, tax-free.PHOTO: ABC27
“I was already in touch with Research in the Finance Committee,” Murt said less than an hour after the initial conversation. “I explained the concept as you [Dennis Owens] and I discussed and they’re already working on draft legislation.”
Pennsylvannia's Governor Wolf’s budget plan is a proposal to tax lottery winnings over $600. Wolf’s spokesman says that California and Pennsylvania are the only states with income taxes that exempt lottery proceeds.
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Camilla Brown doesn't mind paying tax on her winnings.PHOTO: ABC27
But Camilla Brown has a different thought. ABC27 caught up with Camilla at the lottery self-serve machine in the Capitol cafeteria. She had a fistful of tickets, a pleasant smile and a generous outlook.
She said if she could just win, she’d happily pay Pennsylvania.
“I think that’s fair,” Brown said. “If I win $75 million, I wouldn’t mind paying 3-percent state taxes.”
Lottery winnings are still subject to federal withholdings.
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