|December 22, 2022 11:12 AM
|Representative Robert W. Mercuri
|All House members
|A Simpler and More Certain Business Tax Environment (Prior HB285)
|In the near future, I plan to reintroduce House Bill 2825, from the 2021-2022 Legislative Session. This legislation would further conform Pennsylvania’s tax laws with the federal government and create favorable tax policy for existing and prospective businesses within the Commonwealth.
As many of you will recall, last legislative session we took a historic measure to reduce the Corporate Net Income Tax from 9.99%, the highest the highest flat tax rate in the country, to 4.99% over the upcoming taxable years. While this will certainly reduce the “sticker shock” the tax rate had on both existing and prospective businesses, what cannot be forgotten is the host of other complexities and challenges that the business community faces while navigating Pennsylvania’s tax laws.
Recently, there has been an emphasis on achieving simplicity by conforming with Federal tax laws where it is appropriate and advantageous to do so. This has led to the consideration of countless pieces of legislation, amending nearly every article of the Tax Reform Code of 1971, for the benefit of our constituencies. My legislation builds upon these efforts by proposing further changes relating to the depreciation of assets owned by businesses and the determination of basis for property that is sold or otherwise disposed of during a taxable year.
It is essential that we take steps now to make it simple and advantageous to do business within the Commonwealth, positioning our communities for investment and growth as we continue to recover from the economic uncertainty that has arisen as a result of COVID-19 policies and record-high inflation.
I look forward to working with you on this important legislation.
Prior cosponsors of HB2825 are: MERCURI, SCHLEGEL CULVER, JAMES, KEEFER, MIHALEK, OWLETT, PICKETT AND ZIMMERMAN
Introduced as HB60