CPA Now Blog

With both the political and economic environments seemingly ripe for such a discussion, the Pennsylvania General Assembly appears poised to address a variety of tax law changes. One that could appear on the legislative agenda is PICPA’s effort to address the growing inequity in state and local taxation via an elective pass-through entity tax.

Annually, the PICPA and the Pennsylvania Department of Revenue (DOR) meet to discuss issues affecting CPA practitioners and their clients and to bring clarity to complex regulations. In October 2021, the PICPA State Taxation Steering Committee hosted the DOR. Topics covered include personal income and corporate tax, sales and use tax, and administrative issues.

Act 116 of 2020 permits boards and commissions under the Bureau of Professional and Occupational Affairs to allow licensees who earn continuing education credits in excess of the amount required for license renewal to carry over excess credits and apply them to the next biennial renewal period. Unfortunately that does not include CPAs.

This year, we experienced a political unicorn in Harrisburg. Not only were the 2021-2022 state budget negotiations relatively painless, but also everything was voted on in an expedient fashion and the budget was wrapped well before the start of the new fiscal year on July 1. Adding to the overall ease of the process – and probably another political unicorn – was the state’s revenue surplus and unused funds received from the federal government for COVID relief.

Much of politics is local, to paraphrase former U.S. Speaker of House Thomas P. O’Neill, and Pennsylvania voters in May 2021 will determine who will vie for positions in the county courthouse, townships, boroughs, and school boards. This year’s primary election, however, has added significance with proposed amendments to the state constitution.