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Pennsylvania State Tax Updates

For the latest news and updates on Pennsylvania state and local tax

May 2, 2020

Pennsylvania Provides Property Tax Relief

Governor Wolf signed into law S841, effective April 20, 2020, which provides property tax relief due to Covid-19. The law temporarily authorizes the governing body of a taxing district to apply the taxing district’s discount rate to taxes collected by August 31, 2020, and to waive any fee or penalty for late payment of property taxes paid in full by December 31, 2020.

Source: https://www.legis.state.pa.us/cfdocs/legis/li/uconsCheck.cfm?yr=2020&sessInd=0&act=15

March 21, 2020

Income Tax Returns Deadline Extended

Pennsylvania’s Department of Revenue announced the deadline for taxpayers to file their 2019 Pennsylvania personal income tax returns is extended to July 15, 2020. Giving taxpayers an additional 90 days to file from the original deadline of April 15, no extension is necessary. This extension applies to both final 2019 tax returns and payments, and estimated payments for the first and second quarters of 2020.

Source: https://www.media.pa.gov/Pages/Revenue-Details.aspx?newsid=30

PA Inherence Tax Returns Update

Due to the recent closing of commonwealth and county office buildings to help prevent the spread of COVID-19, the Department of Revenue is aware that taxpayers have been unable to meet their Inheritance Tax filing and payment obligations. To address these concerns, the Department is asking County Register of Wills offices to implement the following procedures when their operations resume:

If a taxpayer is filing a return or making a payment and indicates that either was due during the timeframe that offices were closed, please place a date received as of March 12, 2020, on the return and the receipt.

In addition, the Department is making system modifications to not apply penalties for payments received late, that otherwise would have been timely during office closures.

PA Waiver of Penalties on Accelerated Sales Tax Payment

The Department of Revenue is waiving penalties for businesses that are required to make Accelerated Sales Tax (AST) prepayments by the deadline of Friday, March 20, 2020. For April sales tax payments, the Department is waiving the AST prepayment requirement and asking businesses to remit the sales tax that they have collected in March.

Updates by City

Philadelphia

May 2, 2020

The City of Philadelphia Provides Extensions and Installment Plans for Property Tax Relief

The City of Philadelphia has changed the extended due date for real estate taxes from April 30, 2020 to July 15, 2020. The Department has also extended the deadline to July 15th for senior citizens over the age of 65, and eligible low-income homeowners, to apply for an installment payment plan for their real estate taxes.

Source: https://www.phila.gov/2020-04-27-philadelphia-property-tax-due-date-extended-to-june-15/

April 2, 2020

The City has Several Funds and Programs in Place to Assist Businesses During this Financial Crisis

  • The Enterprise Center Capital Corporation COVID-19 Loan Fund is offering loans to small businesses that meet the following criteria: The business is located in Philadelphia, has been in operation for a minimum of six months prior to the COVID-19 pandemic, and has a documented hardship.
  • The Philadelphia COVID-19 Small Business Program offers grants or zero-interest loans to Philadelphia small businesses impacted by COVID-19. The program, administered by the Department of Commerce and PIDC, aims to provide relief to selected small businesses in order to help them survive this crisis and retain as many employees as possible grants or zero-interest loans to Philadelphia small businesses impacted by COVID-19. Due to extraordinary demand and limited resources available, applications submitted after 5 p.m. on March 30, 2020, will only be accepted and reviewed from businesses applying for microenterprise grants of $5,000. Awards for applications received after that deadline will only be made as new funds become available.
  • The West Philadelphia Financial Services Institution provides loans to small businesses in Philadelphia.
  • The Neighborhood Progress Fund is a nonprofit group that offers small business loans and business development services to entrepreneurs and businesses in distressed communities.
  • Apply for the Commonwealth of Pennsylvania’s new COVID-19 Working Capital Access Program, administered by the Pennsylvania Industrial Development Authority (PIDA). Applications must be submitted to Philadelphia Industrial Development Corporation (PIDC) – the city’s Certified Economic Development Organization (CEDO). The program will offer loans of $100,000 or less to for-profit businesses with 100 or fewer full-time employees.
  • KIVA, which gives entrepreneurs access to zero-percent interest small business loans, has increased the size of no-interest loans available.
  • The Finanta Emergency Loan is available for entrepreneurs affected by COVID-19 and other emergencies. Loans range from $5,000-$15,000 without closing fees. Please contact Finanta for more information and to apply: 267-236-7030 (for English) or 267-236-7019 (para Español)
  • The Women’s Opportunities Resource Center has low–interest loans, professional services, and referrals to partner banks and community loan funds for small businesses.

Source: https://www.phila.gov/2020-03-20-information-and-resources-for-businesses-impacted-by-covid-19/

March 30, 2020

Philadelphia Payroll Tax Guidance for Non-Resident Employees in Respect to COVID-19

The City of Philadelphia issued payroll tax guidance on March 26, 2020, pertaining to the Covid-19 pandemic. The City uses a “requirement of employment” standard for payroll taxes. Philadelphia asserts for nonresidents who work from their home for their own convenience, then the nonresident employee would be still be subject to tax. This is similar to the New York convenience of employer rules. However, in respect to the pandemic, the City states even if the employer’s base of operation is in Philadelphia, the employer is not required to withhold on wages on nonresident employees if they are required/ordered to work from outside of the City.

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