Pennsylvania State and Local Tax Updates August 2019

Are you an online seller who does business in Pennsylvania?

August 28, 2019

If you’re a Pennsylvania resident who owes estimated PA income tax, your next due date is rolling up fast. The third installment of 2019 tax is due on Sept. 16. Under PA tax law, if you have at least $8,000 of income that isn’t subject to employer withholding for 2019, you may be required to make estimated payments or face tax penalties. To learn whether you must make estimated tax payments, read the full rules at https://bit.ly/2YurAJc or contact us for help. You can also print a coupon (Form PA-40ESR [I]) to accompany your tax payment here: https://bit.ly/2HMdAVY.

 


Do you have questions about Philadelphia’s sequestration program?

August 28, 2019

When owners of rental property fall behind in property tax, water and sewer charges and don’t arrange for payment, the city’s Dept. of Revenue (DOR) can request a court-appointed “sequestrator.” That person collects outstanding property-related charges from the owners until the debt is clear. The property owners must turn over the keys and leases and are prohibited from collecting rent from tenants. Tenants are not affected, but must pay rent to the sequestrator. The sequestrator will manage the building, collect rent, make repairs and pay building expenses.

Here are details from the Philadelphia DOR: https://bit.ly/2KKMCi2

 


Are you an online seller who does business in Pennsylvania?

August 21, 2019

If so, the PA Dept. of Revenue (PDOR) wants you to know the rules you must follow regarding sales tax. Businesses outside of PA that make at least $100,000 in annual gross sales are required to collect and remit sales tax to PDOR. Previously, sellers could elect to just notify customers that they owed sales tax and then report the sales to PDOR. This option has been eliminated. Instead, all marketplace facilitators and online sellers that have an economic presence in PA (that is, annual gross sales greater than $100,000) must register, collect, and remit PA sales tax, as of July 1, 2019.

Here’s more information: https://bit.ly/2TCNojD


Failure to pay property tax in Pennsylvania can lead to an involuntary property sale

August 21, 2019

When a married couple failed to pay property tax or establish a payment plan to pay the delinquent tax, the PA Tax Claim Bureau made great efforts to notify them that their property could be subject to a tax sale. They were notified by regular mail and by certified mail, but they responded to neither. Notice was also posted in two newspapers and both taxpayers were personally notified by a person who posted notices on the property. In court, the taxpayers claimed that the person posting the notices wasn’t properly authorized to notify them. The taxpayer’s objections were dismissed. (Sobolewski, 7/31/19)


Some Philadelphia senior citizens may qualify for a property tax advantage

August 14, 2019

Those who meet certain criteria can apply to freeze their city property taxes at the current level. Future increases are thus avoided, even if the tax rate or the property value rises. Property tax will, however, go down if tax rates or the property value decreases. Qualifying homeowners must meet these age requirements: be 65 or older, or live with a spouse who is at least 65 or the surviving spouse of a qualified taxpayer. Income for a single taxpayer cannot exceed $27,500, or $35,500 for a married couple. The deadline to apply is Sept. 13.

For details call (215) 686-6442 or email revenue.


Do you qualify for the Neighborhood Assistance Tax Credit in Pennsylvania?

August 14, 2019

Businesses may contribute to a neighborhood organization which engages in providing youth and adolescent development services, in exchange for tax credit equal to 55% of the amount of the donation. No more than $2 million of the total aggregate amount of tax credits available may be used toward youth and adolescent development services. The total amount of tax credits available for award is now, $36 million, up from $18 million, effective July 1, 2019.


Pittsburgh’s Paid Sick Day Act (PSDA) upheld in court

August 7, 2019

The PSDA requires that employers with at least 15 employees let employees accrue up to 40 hours of paid sick leave per year, at a rate of one hour for every 35 hours worked. Smaller employers are only required to allow accrual of up to 24 hours per year. The PA Supreme Court found that Pittsburgh didn’t exceed its authority when enacting a sick leave policy. The ruling overturns the Commonwealth Court ruling that concluded otherwise. Pittsburgh City Councilman Corey O’Connor said, “This is not only a historic win for workers in Pittsburgh but for all of Pennsylvania.” No effective date was given.

Here’s more: https://bit.ly/2yeZZ2B


Property tax breaks may be available for some Philadelphia homeowners

August 7, 2019

Those who enroll in the Homestead Exemption can reduce their property tax bill up to $629 in 2020. To apply, a taxpayer must own, live in and occupy the property as their primary residence. Those approved for this exemption need not reapply, unless they buy a different home or the name on the deed changes. You can check to see if your property already has an exemption by calling the Homestead hotline at (215) 686-9200, or by going to the city’s property lookup website: https://bit.ly/2OqaVFA. Enter your address; find the words “Homestead Exemption” on the right. If you are signed up, “yes” will appear below the address.

 

© 2019

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