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Weekly Caselaw Updates

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General Motors Corp. v. Commonwealth

The Pennsylvania Supreme Court addressed the constitutionality of the state’s “net loss carryover” (“NLC”) provision that permits corporate taxpayers to deduct losses suffered in prior years from the current year’s taxable income to reduce their tax liability. Previously, the Supreme Court held that the NLC deduction applicable to corporate income…

General Motors Corp. v. Commonwealth
Pennsylvania Supreme Court

The Pennsylvania Supreme Court addressed the constitutionality of the state’s “net loss carryover” (“NLC”) provision that permits corporate taxpayers to deduct losses suffered in prior years from the current year’s taxable income to reduce their tax liability. Previously, the Supreme Court held that the NLC deduction applicable to corporate income tax for 2007 violated the… Continue reading General Motors Corp. v. Commonwealth

Pearlstein v. Commonwealth
Pennsylvania Commonwealth Court

An en banc panel of the Pennsylvania Commonwealth Court issued a critical opinion for attorneys who advise clients regarding real estate sales. The Court affirmed the Board of Finance and Revenue, which held that a partnership should be assessed Personal Income Tax from the net gains from like-kind exchanges of real property, commonly called “1031… Continue reading Pearlstein v. Commonwealth

Greenwood Gaming & Entm’t v. Comonwealth
Pennsylvania Supreme Court

Place your bets! The Pennsylvania Supreme Court held that concert tickets, which a casino distributed to its patrons for playing table games and slot machines at its facility, are not “services” for purposes of calculating the casino’s taxable revenues generated by those games and machines under Section 1103 of the Gaming Act. Thus, they were… Continue reading Greenwood Gaming & Entm’t v. Comonwealth

Parkinson v. Diamond Chemical Co., Inc.
New Jersey Appellate Division

The New Jersey Appellate Division issued a critical decision regarding discovery and parties’ tax returns. Under the Court’s ruling in Ullmann v. Hartford Fire Ins. Co., a party seeking tax returns in discovery must meet a heightened standard outlined in a three-part test. Here, in a wrongful discharge action, the plaintiff sought the tax returns… Continue reading Parkinson v. Diamond Chemical Co., Inc.

Kuharchik Constr. v. Commonwealth
Pennsylvania Commonwealth Court

A three-judge panel of the Pennsylvania Commonwealth Court held that Kuharchik Construction’s purchase and use of items that supported a traffic signal – specifically, signal poles, mast arms, and pedestal bases – qualified as “building machinery and equipment” as defined by Section 201(pp) of the Tax Reform Code of 1971. The Commonwealth filed exceptions. An… Continue reading Kuharchik Constr. v. Commonwealth

Phoebe Servs. Inc. v. City of Allentown
Pennsylvania Commonwealth Court

The issue in this appeal was whether the trial court erred by misinterpreting the meaning of “business” as defined in a City of Allentown ordinance. In 2018, the City’s Revenue and Audit Bureau issued a Notice of Underpayment and Assessment to Phoebe Services (“Phoebe”), indicating the City’s intention to retroactively impose its business privilege tax… Continue reading Phoebe Servs. Inc. v. City of Allentown

Myers v. Commonwealth of Pa.
Pennsylvania Commonwealth Court

Finally, I’ve found someone who loves coupons more than my mother-in-law! Mr. Myers made three separate purchases from BJ’s Wholesale Club; twice he purchased one item, and once, he bought six items. Each receipt showed that every purchased item was taxable. And he used a coupon for each transaction. He sought refunds for excess sales… Continue reading Myers v. Commonwealth of Pa.

Duffield House Assoc., L.P. v. City of Philadelphia
Pennsylvania Commonwealth Court

The Pennsylvania Commonwealth Court considered whether Philadelphia’s selective reassessment in Tax Year 2018 of only commercial properties violated the Uniformity Clause of the Pennsylvania Constitution. After a bench trial, the Court of Common Pleas held that the reassessments were unconstitutional. The Commonwealth Court affirmed and found that the record contained overwhelming evidence demonstrating the City… Continue reading Duffield House Assoc., L.P. v. City of Philadelphia

GM Berkshire Hills LLC v. Berks Co. Bd. of Assessment
Pennsylvania Commonwealth Court

A school district designed a formula for properties within its catchment to determine if the district should appeal a particular property’s assessed value. Using that calculation, the district determined that two properties were assessed at a fraction of their actual value and appealed those values. The Court of Common Pleas agreed and increased the assessment.… Continue reading GM Berkshire Hills LLC v. Berks Co. Bd. of Assessment

Winberry Realty P’ship v. Borough of Rutherford
New Jersey Supreme Court

The plaintiffs brought this action under the New Jersey Civil Rights Act (CRA), N.J.S.A. 10:6-1 to -2, and 42 U.S.C. §§ 1983 and 1985, alleging that the Tax Collector and the Borough violated their constitutional, statutory, and common law rights to reclaim their property. The trial court granted summary judgment to the defendants, finding that… Continue reading Winberry Realty P’ship v. Borough of Rutherford