Good News for Pennsylvania Businesses

by Steven Sodini 5. June 2014 12:23
The Pennsylvania legislature has passed a bill that we expect will spur economic expansion and job creation within the Commonwealth by ensuring that local business taxes are collected more fairly and equitably. Previously a PA Supreme Court decision had undone the traditional process for determining business privilege tax (BPT), and this had effectively opened the door to double taxation of companies doing business in multiple jurisdictions.  The new legislation clarifies when a BPT can be levied, and eliminates potential for double taxation. HB 1513, which is now officially known as Act 42 of 2014, will take effect for taxable years commencing on or after Jan. 1, 2014.  The bill will prevent municipalities, cities, and other local governments from arbitrarily or excessively applying local business taxes to any company or employer that performs work within their boundaries for 15 days or less in a given calendar year.  It will also protect businesses from being charged the gross receipts tax twice by separate municipalities for the same earnings.   Click here for a detailed analysis of this legislation, prepared by the State and Local Tax office of our alliance partner BDO.
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Categories: Tax