No Tax Increases Proposed in Governor’s Budget

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Pennsylvania Governor Tom Wolf recently proposed a 2019 – 2020 state budget.  The good news, initially, is that the Governor did not include any call for increased state income and sales taxes and, in fact, contains proposals to reduce the corporate state income tax as a means of making the Commonwealth more competitive in drawing […]

PA Announces Measurement Dates for Economic Nexus Standards

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Recently, Pennsylvania adopted an economic nexus standard with respect to determining whether an out-of-state entity is required to register for a license and subsequently collect, report and remit Pennsylvania Sales Tax.  The Commonwealth measures its sales and use tax economic nexus threshold by calendar-year sales preceding the collection period. Additionally, after the first year, collection […]

PA Adopts Economic Nexus Standard for Sales Tax Collection

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Sales Tax Background Most states have historically looked to nexus as a condition relevant to their capability to levy sales taxes. For decades, states have been bound by the United States Supreme Court National Bella Hess and Quill decisions in defining the required nexus standard for levying taxes in those states. The most relevant determinant of nexus […]

PA Amends Definition of “Income” for Property Tax/Rent Rebate Program

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For many Pennsylvania seniors, the property tax and rent rebate program has been an important tool in their financial planning. One of the inequities in computing the appropriate rebate has been in the treatment of pension benefits that were fully included in the calculation of income to determine qualification for the rebate. Now, a recently-passed […]

Pennsylvania Restores Bonus Depreciation Deduction

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One of the more complex matters facing state budgets is how best to deal with the largess of the federal government’s business incentives included in federal tax legislation. There is probably no area of the federal tax law where this issue is more costly for states than the capital expenditure initiatives included in several recent […]

PA Clarifies Guidance on Corporate Income Tax NOL Deductions

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On May 10, 2018, the Pennsylvania Department of Revenue issued new guidance stating that a corporate taxpayer can calculate its 2007 through 2016 net operating loss (NOL) using the greater of: the flat dollar cap; or the percentage cap. For tax years before 2007, Pennsylvania applies the flat dollar cap. The turnabout in the Commonwealth’s […]

PA Tax Updates & Reminders

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The Pennsylvania Department of Revenue recently released its December 2017/January 2018 newsletter, which highlights tax developments over the past year in the following areas: the sales and use tax treatment and requirements for marketplace sales; important personal income tax filing dates; amnesty penalties; and property tax/rent rebate program applications. See below for details and links […]

Pennsylvania Enacts Remote Seller Requirements and Other Changes to Sales and Use Tax Rules

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All states imposing a sales and use tax regime are struggling to collect taxes due on sales made through the Internet and from out-of-state vendors. Recently the Commonwealth of Pennsylvania enacted legislation that makes several changes to sales and use tax laws in the state. The key changes include requiring certain remote sellers, marketplace facilitators, […]

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Limited Opportunity for Pennsylvania Tax Amnesty

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It is not unusual for state and local governments to provide windows of opportunity for taxpayers to settle outstanding tax liabilities. Often, these programs allow for a reduced settlement, generally through a reduction or elimination of penalties due. While the Commonwealth of Pennsylvania is not one of those states that regularly undertakes such programs, the Department […]

Incorrect Tax Notices Frustrate Pennsylvania Taxpayers

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Since the Pennsylvania Department of Revenue (PA DOR) implemented a new technology system several years ago, numerous inaccurate tax notices have been mailed to taxpayers, who have been burdened with the task of resolving the issues. Read the article from the Winter 2017 GYF Perspectives. Contact Alex Palmer or Don Johnston for assistance.