|Posted:||January 18, 2017 03:34 PM|
|From:||Representative Stephen Bloom|
|To:||All House members|
|Subject:||Request IFO Study Regarding Like-Kind Exchanges|
In the near future I will be introducing a resolution instructing the Independent Fiscal Office (IFO) to perform a dynamic analysis of the overall economic benefit and tax revenue impact of eliminating Pennsylvania’s tax on like-kind exchanges.
A like-kind exchange allows a taxpayer to defer current recognition of gains and losses when selling and acquiring a replacement property. Pennsylvania is currently regarded as the most business-unfriendly state when it comes to like-kind exchanges. All other states with an income tax regime follow the Federal tax code, which provides for nontaxable like-kind exchanges (section 1031 exchanges), or have adopted their own like-kind exchange provision. Hence, my request for the Independent Fiscal Office (IFO) to perform this analysis.
Please join me in cosponsoring this important resolution.