Posted: | February 13, 2013 05:47 PM |
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From: | Senator Patrick M. Browne |
To: | All Senate members |
Subject: | Business Privilege Tax |
In the near future, I intend to re-introduce legislation which was Senate Bill 405 of the 2011-12 legislative session. In its decision in V.L. Rendina, Inc. v. Harrisburg and the Harrisburg School District, 130 MAP 2005, 2007 Pa. LEXIS 2872 (Pa. Dec. 27, 2007), the Pennsylvania Supreme Court reversed its previous position that a municipality cannot tax an entity that lacks a permanent base of operations within its borders. As a result of this decision, ambiguity now exists with respect to a municipality’s ability to tax any and all taxpayers conducting any business within its borders despite the court’s prior distinction between a business “privilege” tax and a business “transaction” tax. This legislation would amend the Local Tax Enabling Act to clarify this ambiguity and to make absolutely clear when a municipality may tax a company performing work within its borders. Specifically, this legislation will amend the Local Tax Enabling Act to provide that:
Cosponsors of Senate Bill 405 of the 2011-12 session included Senators FOLMER and ALLOWAY. |
Introduced as SB631