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
Adding Value – McNees PA Tax Blog
Adding Value – McNees PA Tax Blog, published by McNees Wallace & Nurick LLC, focuses on Pennsylvania state and local tax issues, including real estate tax appeals, tax exemption qualifications for non-profit entities, sales and use tax regulations, and procedural developments in tax litigation. The blog covers case law updates, administrative guidance, and legislative changes affecting tax compliance and disputes. It also addresses specialized topics such as tax treatment of employment agency services, IRS election forms relevant to tax planning, and settlement agreement enforcement in tax-related cases. The content is aimed at legal professionals and taxpayers navigating complex tax regulations in Pennsylvania.
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PA DOR ISSUES GUIDANCE ON LIKE-KIND EXCHANGES
On September 27, 2022, the Pennsylvania Department of Revenue (“DOR”) issued a revision of Personal Income Tax Bulletin 2006-07 (the “Bulletin”), which confirms that recent Pennsylvania legislation reversed longstanding caselaw that disallowed deferral of gain recognition for like-kind exchanges. Under…
Commonwealth Court Grants 100% Exemption for Historic Building
By Adam Koelsch
In In Re: Appeal of the Coatesville Area S.D., et al., Nos.1130 & 1161 C.D. 2018 (Pa. Commw. Ct. Aug. 19, 2022), the Commonwealth Court decided cross-appeals of a taxing school district and a property owner regarding the owner’s entitlement…
Pennsylvania – “Open for Business” or “Open to Tax”
Governor Wolf and other Pennsylvania lawmakers recently passed the state budget for FY22-23 (the “Budget”). Coming in at $45.2 billion, the negotiations entailed to finalize the Budget appear to be worth the effort by having the best of both worlds-…
Historical drops in Common Level Ratios Should have Commercial Pennsylvania Property Owners Contemplating Annual Assessment Appeals for the 2023 Tax Year
By Paul Morcom
With historical drops in common level ratios throughout Pennsylvania’s 67 counties from last year to this year, commercial or industrial property owners should be reviewing their assessed values for potential reductions for the 2023 tax year.
The annual assessment appeal…
Non-Fungible Tokens – Subject to Pennsylvania Sales and Use Tax
This past May, the Pennsylvania Department of Revenue issued REV-717, an updated guide for retailers on the Commonwealth’s State and Local Sales, Use and Hotel Occupancy Tax.
Interestingly, the portion of REV-717 discussing computer hardware and software specifically enumerated non-fungible…
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…
City of Philadelphia’s 2018 Real Estate Tax Assessments are Unconstitutional
By Adam Koelsch
On June 8, 2022, the Pennsylvania Supreme Court denied the City of Philadelphia’s (the “City”) Petition for Allowance of Appeal from the decision of the Commonwealth Court in Duffield House Assocs., L.P. v. City of Phila., 260 A.3d 329 (Pa.…
Philadelphia Reassessment Update
By Paul Morcom
The City’s Office of Property Assessment is planning to post the results of reassessments of all properties in Philadelphia by Monday, May 9, 2022.
The new values of more than 580,000 residential, commercial, industrial, and institutional properties in Philadelphia are…
Commonwealth Court Denies Manufacturing Exclusion and Help Supply Services for Sales and Use Tax
In Quality Driven Copack, Inc. v. Commonwealth of Pennsylvania, No. 879 F.R. 2013 (decided December 29, 2021) (opinion not reported), the Pennsylvania Commonwealth Court (the “Commonwealth Court”) held that for the Taxpayer to qualify under the manufacturing exclusion for sales…