Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.
The Pennsylvania General Assembly’s fall session is in full swing. Lawmakers have an array of tax measures potentially still in play as final bills for the year are being considered. Several have all been developed in coordination with the PICPA State Tax Thought Leadership Committee and subcommittees.
With a complex system covering various taxes at the local level, Pennsylvania faces challenges when it comes to fairness, efficiency, and economic growth. There is an urgent need for reform Pennsylvania’s local tax structure to ensure a more equitable and sustainable system.
Each Pennsylvania budget cycle has its own unique challenges, with occasional political obstacles thrown in. This year was unique for the seeming deep freeze that settled on Harrisburg despite the summer heat. Although both chambers of the Pennsylvania General Assembly approved the state spending plan, the Senate adjourned without finalizing the bill, leaving the budget in legislative limbo.
State budget negotiations are in full swing in Harrisburg, which is when many tax bills are proposed and agreed to. This year, the PICPA is urging the General Assembly to act on legislation that will help small businesses in the state and correct a tax unfairness.
U.S. Public Law 86-272 provides enormous protection from state income tax in instances where a company has limited activities within a state. If a taxpayer falls within the scope of the federal law, it will not be subject to a particular state’s income tax. However, there has been an uptick in states challenging taxpayers’ protection claims under Public Law 86-272 , so much so that some see an attempt to eviscerate it.