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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: April 28, 2017 09:28 AM
From: Representative Patrick J. Harkins
To: All House members
Subject: Ensuring Equal Tax Treatment of All Air Freight Companies
In the near future, I plan to introduce legislation which will ensure that all air freight companies are treated equally under Pennsylvania tax law. This legislation is companion legislation to Senate Bill 627 (Killion), which was recently unanimously approved by the Senate Finance Committee, and also received unanimous approval by this committee during the 2015-2016 Legislative Session (as Senate Bill 386).

Currently, the tax code treats companies differently based on ownership structure, a distinction which is not grounded in any logical public policy. With this in mind, my bill would effectively provide that the amount of tax owed to this Commonwealth by qualified air freight forwarding companies on business income would be determined using the same tax formula that is based on “revenue miles” as is currently used for airline companies, as well as railroad, truck, and bus companies, under state law. A revenue mile is considered to be the average receipts derived from the transportation by the taxpayer of persons or property one mile.

In addition, under my bill, the nonbusiness income of qualified air freight forwarding companies would also be taxed using the same formula for nonbusiness income that is applied to airline, railroad, truck and bus companies, although that formula is calculated differently.

Please join me in co-sponsoring this common sense legislation.

Introduced as HB1381