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House Co-Sponsorship Memoranda
House of Representatives
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | June 4, 2013 02:22 PM |
|---|---|
| From: | Representative Michael Peifer |
| To: | All House members |
| Subject: | Board of Finance and Revenue Proposed changes |
| In the near future, I plan to introduce legislation that will amend the corporate tax appeals and administrative procedures within the Board of Finance and Revenue (BF&R). My proposed legislation follows many of the recommendations outlined at a recent House Finance Committee public hearing. Specifically, the legislation I will be introducing will streamline and bring greater transparency to the six-member BF&R. Created by statute, the BF&R consists of the State Treasurer, Attorney General, Auditor General, Secretary of Revenue, Secretary of State, and Governor’s General Counsel. The state treasurer serves as the BF&R’s chairman, meaning that BF&R’s approximately 23 employees are on Treasury’s payroll. There is a perceived need to reform BF&R’s tax appeals function. Various groups, most notably the Pennsylvania Institute of Certified Public Accountants (PICPA) and the Pennsylvania Chamber, have been critical of Pennsylvania’s tax appeals process, specifically the lack of independence associated with the make-up of BF&R. Efforts to reform Pennsylvania’s tax appeals process have been under way for decades, but none have garnered the critical support of key stakeholders necessary to make structural changes to the system. Under my proposal, a reconstituted BF&R will consist of three members; two will be nominated by the governor and confirmed by the Senate for staggered six-year terms, while the third will be the State Treasurer, or his designee, who will also serve as chair. These individuals should have, at minimum, qualifications as a lawyer or an accountant with at least 10 years of relevant tax experience. BF&R will continue to perform nontax functions (selecting depositories and managing certain investments). Taxpayers will see little change to the process. Appeals from the Board of Appeals would continue to be filed with BF&R; BF&R staff would continue to prepare cases for review by board members, similar to what is currently being done by the staff. Such preparation would include summaries of the taxpayers’ arguments, summaries of the Department of Revenue’s position and other relevant information, and a proposed decision and order. Taxpayers and/or their representatives would continue to have the opportunity to appear before BF&R. In addition, Department of Revenue representatives would be permitted to appear before BF&R as well. A decision would be reached by a majority of the BF&R. Such decision would be sent to the taxpayer and be published in some form, redacting confidential taxpayer information. Appeals to Commonwealth Court would continue to be de novo (factual record would be determined at the Commonwealth Court through negotiations or testimony), and the Office of Attorney General would continue to represent the Commonwealth. |
Introduced as HB1541