SALT Blog - SALT Blawg

On Friday, June 30, New Jersey lawmakers approved the state’s budget and enacted new legislation that would overhaul several provisions of the corporate tax system. The $54.3 billion budget was approved closely along party lines with contention, while the new provisions of the corporate tax system were approved unanimously without debate.

2024 Budget

Significant tax changes were made in the 2024 budget to help increase affordability for working and middle class families. One of the major programs that will receive funding through the new budget is the property tax relief ...

Real estate assessment appeal deadlines are quickly approaching in Pennsylvania for 2024 assessed values.  Taxpayers should review their assessed values and determine whether an appeal is appropriate.  The following is a list of upcoming appeal deadlines for 2024 assessments for each county:

• August 1^st: Adams, Bucks, Butler, Cambria, Chester, Dauphin, Erie, Fayette, Franklin, Indiana,  Lackawanna, Lancaster, Lawrence, Lehigh, Luzerne, Monroe, Montgomery, Northampton and York
• August 15^th: Berks
• August 31^st: Wyoming
• September 1^st: Armstrong, Bedford, Blair, Bradford ...

On February 28, 2023, the Pennsylvania Supreme Court issued its evenly divided opinions in GM Berkshire Hills LLC v. Berks County Board of Assessment Appeals, 16 MAP 2022 (“Berkshire”).  In Berkshire, the Wilson School District (“WSD” or “school district”) adopted a policy of appealing recently sold properties that were potentially underassessed by at least $150,000. The Pennsylvania Supreme Court granted cert, agreeing to review two issues:

• whether the school district’s selective real estate tax assessment appeals violate the uniformity clause when the ...

The Pennsylvania Supreme Court issued its long-awaited decision in Synthes v. Commonwealth of Pennsylvania, 11 MAP 2021, a closely watched case dealing with differing interpretations of Pennsylvania’s costs of performance (“COP”) statute, which ultimately had the Department of Revenue (“DOR”) and the Office of Attorney General (“OAG”) on opposite sides. 

Prior to 2014, the statute required services to be sourced to the location of the “income-producing activity.”  Where the income-producing activity occurred both within and without Pennsylvania ...

To ring in the New Year, the Texas Comptroller announced needed guidance to remote sellers and marketplace facilitators regarding sales and use tax obligations for businesses that do not have a physical presence in Texas but sell or facilitate sales to Texas customers. 

In 2018, the US Supreme Court decided the case, South Dakota v. Wayfair, in which the Court altered the decades-long standard that prevented states from imposing sales tax obligations on businesses unless they had a physical presence in the state.  In Wayfair, the Court replaced the physical nexus standard with an ...

In an opinion released September 9, 2022, the Online Merchants Guild (“Guild”) secured a victory against the Pennsylvania Department of Revenue (“Department”) in its attempt to collect information and back taxes on an estimated 11,000 out-of-state sellers who stored inventory in Amazon’s warehouses in Pennsylvania. See Online Merchants Guild v. Hassell, Pa. Commw. Ct. No. 179 MD 2021, 9/9/2022.

During 2012, Amazon and the Pennsylvania Department of Revenue (“Department”) entered into an agreement whereby Amazon agreed to voluntarily collect and remit ...

On August 3, 2022, the Pennsylvania Commonwealth Court upheld a panel decision finding that a senior living facility failed to qualify as a “purely public charity” and therefore was not entitled to exemption from sales tax. See Friends Boarding Home of W. Quarterly Meeting v. Commonwealth, No. 332 F.R. 2018 (Pa. Commw. Ct. Aug. 3, 2022) (op. not reported).  In order to satisfy the requirements for a “purely public charity,” an institution must satisfy the five-part HUP test, which requires that an institution:

• Advance a charitable purpose;
• Donate or renders gratuitously a ...

Pennsylvania and Philadelphia have implemented important changes to their taxes, affecting both businesses and individuals.  Below are the highlights of those recent changes.   

Pennsylvania Tax Changes

Pennsylvania’s 2022-2023 Budget Bill (H.B. 1342), adopted July 8, 2022, implements significant corporate net income tax (CNIT) and personal income tax (PIT) changes for taxpayers.  While many taxpayers within Pennsylvania will be happy to hear of these changes, those outside of Pennsylvania may not be so jubilant.

CNIT Rate Reduction

Under the new law, the corporate net income ...

The SALT deduction cap, enacted by a Republican-controlled Congress in 2017, is a quagmire for Democrats.  They’ve made promises to repeal it, and have made a wedge issue out of it.  But repealing the cap would be regressive (it would benefit higher-income earners), which contradicts the party’s broader platform. 

Aside from repeal, leaders in the kill-the-cap campaign have sought to undo the SALT deduction cap by challenging its constitutionality in court and by enacting State statutes that seek to end-run the cap (known as “workaround statutes”).  But challenges to the ...

Since 2017 when the Tax Cuts & Jobs Act was enacted and placed a hard cap on state and local tax deductions, critics of the cap have campaigned to reverse it.  These critics (as well as the cap’s proponents) hail from every walk of life and political stripe.  But the mantel against the cap has been taken on most prominently by the Democratic Party and a handful of high-tax States that in recent election cycles have tended to vote Democrats into office, often labeled “Blue States.”  The efforts to overturn the cap have been three-fold: (1) state workaround statutes that seek to end-run the ...