Pennsylvania’s sales tax is imposed only on the “service fee” portion of charges for “employment agency services,” “help supply services,” and “interior office building cleaning services” (collectively, the “Services”). See 72 P.S. §§ 7201(g)(6), 7204(51). The taxable “service fee” is the total charge for the Services less the “costs” of the supplied employee which are
83(b) Elections Made Easy: Understanding the New IRS Form 15620
The Internal Revenue Service (IRS) has recently released a new form, 15620, which will significantly impact the way taxpayers report certain transactions in relation to Section 83(b) elections.
What is an 83(b) Election?
An 83(b) election is a valuable tax strategy for individuals who receive property, such as restricted stock or LLC ownership interests, as
PA COMMONWEALTH COURT INVALIDATES CITY OF PITTSBURGH’S LOCAL INCOME TAX ON NONRESIDENT SPORTS FACILITY WORKERS
On January 10, 2024, the Commonwealth Court held in NHL Players Ass’n v. City of Pittsburgh, (No. 1150 C.D. 2022) that the City of Pittsburgh’s Facility Tax — a unique tax on nonresidents who use a sports stadium or arena (“Facility”) to engage in an athletic event or other performance — violated the Pennsylvania
Update on Tower Health’s Chester and Montgomery County Real Estate Tax Exemption Appeals
On October 16, 2023, the Pennsylvania Supreme Court granted Tower Health’s Petition for Allowance of Appeal related to the Montgomery County hospital property. The Supreme Court is going to address the following two issues on appeal:
- Whether the Commonwealth Court erred by holding that Pottstown Hospital, LLC, offered substantial executive compensation based upon the financial
UPCOMING PENNSYLVANIA ANNUAL ASSESSMENT APPEAL DEADLINES POST AUGUST 1
Now that the 2024 tax year August 1 annual assessment appeal filing deadline has passed for 26 counties in Pennsylvania, the appeal deadlines for the remaining 41 counties are as follows:
August 15
Berks
August 31
Wyoming
September 1
ARMSTRONG, BEDFORD, BRADFORD, CAMERON, CARBON, CENTRE, CLEARFIELD, CLINTON, COLUMBIA, CUMBERLAND, ELK, FOREST, FULTON, GREENE, HUNTINGDON, JEFFERSON
PA Commonwealth Court Flatlines Nonprofit Hospitals Exempt Status for Real Property Taxes
On February 10, 2023, in a much-anticipated group of Opinions, the Pennsylvania Commonwealth Court (“Court”) held that four separate Tower Health hospitals (one in Montgomery County and three in Chester County) did not qualify as institutions of purely public charity and thus, the hospitals were not entitled to real property tax exemptions for the 2018
Allegheny County – Bonus – Real Estate Tax Assessment Appeal Deadline – March 31, 2023
The deadline for filing a real estate tax assessment appeal for the 2023 tax year is fast approaching in Allegheny County. The deadline is March 31, 2023. Normally, you would only be able to appeal the assessment for the 2023 tax year, however, because of the shenanigans with Allegheny County manipulating the Common Level Ratio
New Year, New Useful Guidance: Clarification on Inflation Reduction Act’s New Excise Tax for Share Redemptions
This past summer under the Inflation Reduction Act, Congress enacted new Internal Revenue Code (“Code”) Section 4501, which imposes an excise tax on certain corporate redemptions or repurchases by a corporation of its own stock. Essentially, Section 4501 only applies to “Covered Corporations”, which more or less translates to corporations whose stock is publicly traded.
Circle of Seasons: A Refresher on the Importance of Administrative Formalities
In Circle of Seasons Charter School v. Northwestern Lehigh School District, 273 A.3d 23 (Pa. Cmwlth. 2022), the Pennsylvania Commonwealth Court reversed the trial court decision, and the matter was remanded to the common pleas court to transfer the matter to the County of Lehigh Board of Assessment Appeals via a nunc pro tunc
Philadelphia Publishes FAQs Addressing Expiration of Its Temporary Nexus Waiver
In February, the City of Philadelphia published FAQs regarding expiration of the temporary nexus waiver that had been in place during the COVID-19 pandemic. During the pandemic, the City had temporarily waived its legal nexus threshold that considers the presence of employees working temporarily from home within the City as sufficient to establish nexus for