Happenings in Harrisburg - A Legislative Update - October 1, 2024
The House Finance Committee held a voting meeting today, 10/1 at 9:30 am, where they considered four bills:
1. HB 1994 – sponsored by Rep. Tim Briggs (D), passed the House Finance Committee by a vote of 25-0. This bill reforms the Board of Finance and Revenue so they can consider late filed tax appeals from the Department of Revenue. It also establishes a settlement process and permits faster resolution of tax disputes. This bill was amended in committee: The amendment extends the appeal window for personal income tax issues from 60 days to 90 days; allows an appeal at 120 days if there is good cause; defines good cause; provides a settlement process, including the hiring of a settlement officer that would be used by the Board of Finance and Revenue; requires a final report; adds the word dispensary; makes technical and editorial changes; and revises the effective date to 90 days for the provisions relative to the Board of Finance and Revenue and immediate for the provisions relative to medical marijuana dispensaries.
2. HB 2536 – sponsored by Rep. Christina Sappey (D) - Passed out of the House Finance Committee by a vote of 24-1.
This bill amends the Pennsylvania Constitution to make it possible for other counties beyond Philadelphia and Allegheny Counties to create Longtime Owner-Occupant Programs (LOOPs). The Longtime Owner-Occupant Program gives property tax relief to homeowners who have lived in their homes for at least 10 years by exempting or deferring property tax increases even if their home assessment values increase in future years.
Link to the bill here: Bill Information - House Bill 2536; Regular Session 2023-2024 - PA General Assembly (state.pa.us)
3. HB 2565 – sponsored by Rep. Steve Samuelson (D) - Passed out of the House Finance Committee by a vote of 24-1.
This bill allows more businesses to make use of the semiconductor tax credit by lowering the minimum investment and the number of jobs created necessary for a business to qualify. A qualified business is a company that is either an early-stage semiconductor business (has less than $10 million in revenue in the areas of research or design of semiconductor materials, devices, packaging or testing) or satisfies the following: conducts semiconductor manufacturing, has made a capital investment of at least $20 million, has created or retained a minimum aggregate total of 100 jobs, among other requirements. $20 million in tax credits are to be made available each fiscal year.
Link to the bill here: Bill Information - House Bill 2565; Regular Session 2023-2024 - PA General Assembly (state.pa.us)
4. SB 1051 – sponsored by Sen. Scott Hutchinson (R) - Passed out of the House Finance Committee by a vote of 25-0.
This is companion legislation to HB 1994. This bill also permits the Board of Finance and Revenue to consider late filed tax appeals from the DOR and creates a settlement process for taxpayers as an alternative to the formal and lengthy court appeals process. It was amended in the same way HB 1994 was amended.
This bill passed out of the Senate on 6/4 by a vote of 29-21.
Link to the bill here: Bill Information - Senate Bill 1051; Regular Session 2023-2024 - PA General Assembly (state.pa.us)
Other proposed legislation to note:
Sales Tax: HB 2552 - Rep. Jason Ortitay (R) - 2024-09-17 - Referred to House Finance
Provides a sales tax exclusion for pet adoption fees for adoptions from animal shelters.
Tax Credits: HB 2565 - Rep. Steve Samuelson (D) - Public Hearing Discussion 9-18-2024
Legislation that will allow more businesses to make use of the semiconductor tax credit by lowering the minimum investment and the number of jobs created necessary for a business to qualify. A qualified business is a company that is either an early-stage semiconductor business (has less than $10 million in revenue in the areas of research or design of semiconductor materials, devices, packaging or testing) or satisfies the following: conducts semiconductor manufacturing, has made a capital investment of at least $20 million, has created or retained a minimum aggregate total of 100 jobs, among other requirements. $20 million in tax credits are to be made available each fiscal year.
Tax Collection: HB 2458 - Rep. Tarah Probst (D)
Requires tax collectors, in the case of delinquent earned income and net profits tax, to provide no less than two notices to the taxpayer owing delinquent taxes by registered or certified mail. The return receipt card for certified or registered mail shall be marked delivered to addressee only, and the cost of notification by certified or registered mail shall be added to the costs for collecting taxes.