Pennsylvania State and Local Tax Updates October 2020

Newest edition of PDOR newsletter available online

The most recent edition of the Pennsylvania Dept. of Revenue (PDOR) newsletter is available now online. The August/September issue discusses services it has provided to taxpayers during the COVID-19 pandemic. Also included are new filing online options available in December, through the PDOR’s online self-service portal, myPath, for personal income tax and the property tax/rent rebate program (which launches in December 2020) and other filing options through myPATH in 2021.

Pennsylvania Supreme Court rules on a tax sale provision

The Real Estate Tax Sale Law omits the right of post-tax sale redemption. At present that right allows a delinquent taxpayer in Philadelphia and Allegheny counties to redeem property sold at an upset tax sale by paying the taxes and other costs within nine months of the sale. The state supreme court upheld that omission, because it promotes the legislative interest of delinquent tax collection by ensuring certainty and finality for tax sales. That in turn encourages higher bids by offering greater security to purchasers. (Lohr and Fouse v. Saratoga Partners L.P, 10/1/2020)

Pennsylvania revises guidance on withholding state tax for military servicemembers

Pennsylvania has revised its guidance on withholding of state tax for military servicemembers. Revisions are according to the Servicemembers Civil Relief Act, the Military Spouse Residency Relief Act and the Veterans Benefits and Transition Act of 2018. The revisions state that servicemembers and their spouses don’t lose their domicile or residency (or acquire new domicile or residency) for income tax purposes due to being absent or present in any U.S. tax jurisdiction solely in compliance with military orders. For PA withholding purposes, servicemembers and their spouses that are exempt from PA withholding must file PA Form REV-419 (Nonwithholding Application) with their employers.

Philadelphia DoR updates guidance on wage tax withholding

Updated guidance available from the Philadelphia Dept. of Revenue (DOR) on wage tax withholding. DOR’s policy on withholding hasn’t changed during the COVID-19 pandemic. The city requires employers to withhold and remit wages tax for all residents, and for nonresidents who work at the employer’s location. However, nonresident employees who are required by their employers to work from their homes are exempt from city wage tax for hours worked outside of the city, who is required by his or her employer to work from home. Nonresident employees who believe they were taxed improperly during the time they worked from their homes can contact us with questions.


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© 2020

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