On August 20, the Pennsylvania Department of Revenue issued Corporation Tax Bulletin 2018-04, which announces the Department’s position regarding the scope of taxable and nontaxable telecommunications receipts for Gross Receipts Tax (“GRT”) purposes based on the Pennsylvania Supreme Court’s decision in Verizon Pennsylvania, Inc. v. Commonwealth, 127 A.3d 745 (Pa. 2015), and Act 52
New Bulletin Addresses Statutory “Fix” for PA Bonus Depreciation Decoupling
After enactment of the Federal Tax Cuts and Jobs Act last year (which allowed taxpayers to claim bonus depreciation for the full cost of eligible property placed in service after September 27, 2017), the Pennsylvania Department of Revenue issued Corporation Tax Bulletin 2017-02. In Bulletin 2017-02, the Department concluded that corporate taxpayers were required to
Taxes in the Capitol – Week Ending June 22, 2018
SB 1056, amends the Tax Reform Code to align state law with the federal law’s 100% bonus depreciation. Signed in the House and the Senate on June 22, 2018.
SB 735, would amend the Real Estate Tax Sale Law to establish an optional County Demolition and Rehabilitation Fund in certain counties, funded by
United States Supreme Court Strikes Down Quill: Physical Presence Standard Gone
In a widely anticipated decision in the state tax world, the United States Supreme Court, in South Dakota v. Wayfair (June 21, 2018), has struck down the sales tax physical presence standard set forth in Quill Corp. v. North Dakota, 504 U.S. 298 (1992), and National Bellas Hess, Inc. v. Department of Rev. of Ill.
Tax Practitioners and Corporations Alert—PA May be Slowly Coming into the Modern Tax World
Tax Practitioners and Finance VPs should keep an eye out this week for significant activity coming out of the Pennsylvania legislature that will align the PA tax structure with that of the feds—in some areas.
The House Finance Committee will vote on June 19 on SB 1056, which will align PA bonus depreciation with
Commonwealth Court Rules in Favor of Taxpayer in Case Involving Scope of “Building Machinery and Equipment” Exemption
In Green Acres Contracting Company, Inc. v. Commonwealth, 81 F.R. 2013 (6/13/2017), the Commonwealth Court, en banc, reversed a decision issued by a three-judge panel of the court in August 2016 regarding the scope of the term “guardrails” in the statutory definition of exempt “building machinery and equipment” (“BME”). The panel had determined that nuts,
Department of Revenue Announces Major Procedural Changes for Large Sales and Use Tax Refund Claims
In Sales & Use Tax Bulletin 2017-01 (April 10, 2017), the Pennsylvania Department of Revenue announced major changes in its procedures for the handling of sales and use tax refund petitions. The Bulletin provides that “large” refund requests may be addressed through the field audit process. This will be accomplished by allowing the Board of
Department of Revenue Issues Revised Ruling on Taxability of Software Support Services
As discussed in prior posts, Sales and Use Tax Ruling No. SUT-17-001, issued by the Pennsylvania Department of Revenue in February, raised concerns that the Department’s interpretation of the term “support” in Act 89 of 2016 exceeded the scope of the taxing statute. In response to complaints that its original ruling was overbroad, the Department
Department of Revenue Removes Software Support Services Ruling from Website
As discussed in prior blog posts, Ruling No. SUT-17-001 issued by the Pennsylvania Department of Revenue in February raised concerns that the Department’s interpretation of the term “support” in Act 89 of 2016 exceeded the scope of the statute. Act 89 imposed tax on digital products, and on “maintenance, updates and support” for such products,
Bloomberg BNA Article Discusses Pennsylvania’s Recent Ruling on Software Support Services
Reproduced with permission from Daily Report for Executives, 35 DER (Feb. 23, 2017). Copyright 2017 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com.
Daily Report for Executives™
February 23, 2017
Sales and Use Taxes
- Pennsylvania Deems All Software Support Now Taxable
BNA Snapshot
- Had been tax-exempt since 1997
- Applies to all