|Posted:||December 3, 2018 10:41 AM|
|From:||Representative Jim Cox|
|To:||All House members|
|Subject:||Small Business Tax Fairness – Like-kind Exchanges|
|A key to improving our economy is the success of the small businesses that create 65% of Pennsylvania’s jobs. Removing unfair tax obstacles for small businesses allows them to compete effectively, so they can grow more jobs for current and future generations.
In the near future, I will be reintroducing legislation focused on removing an unnecessary impediment to small business.
Under Federal tax law, a “like-kind” exchange pursuant to Internal Revenue Code Section 1031 allows for tax-deferral when property is exchanged for similar property. This long-standing Federal provision facilitates efficient investment in the job-creating assets businesses need to remain competitive, and every state but Pennsylvania provides for a similar deferral on the state level.
Currently, Pennsylvania tax law contains no such provision. This legislation would allow for like-kind exchanges in Pennsylvania mirroring Internal Revenue Code Section 1031 provisions, thereby removing an unfair disadvantage Pennsylvania small businesses face in competing with businesses in other states.
This legislation (former H.B. 331), passed the House last session with nearly unanimous support (188-2). Please consider co-sponsoring this legislation to help get this bill to the Governor’s desk this session.
Prior Co-Sponsors of this legislation: CUTLER, DOWLING, DIAMOND, DUNBAR, DUSH, EVERETT, FARRY, FEE, GABLER, GILLEN, GREINER, GROVE, HELM, IRVIN, JAMES, KAUFFMAN, F. KELLER, M. K. KELLER, KLUNK, KNOWLES, KORTZ, LAWRENCE, MACKENZIE, MALONEY, MENTZER, METCALFE, MILLARD, B. MILLER, MURT, NELSON, ORTITAY, PEIFER, PICKETT, R. BROWN, RAPP, ROTHMAN, RYAN, SANKEY, SAYLOR, SCHEMEL, SIMMONS, STAATS, TOOHIL, WALSH and ZIMMERMAN
Introduced as HB105