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.

The PICPA has a political action committee to serve the unique interests of CPAs in Pennsylvania’s political process. A dedicated PAC might come as a surprise to many PICPA members, but it’s true.