Pennsylvania enacts changes to the Bank Shares Tax
August 2016
Overview
On July 13, 2016, Pennsylvania Governor Tom Wolf signed H.B. 1198, enacting the revenue portion of the Commonwealth’s budget for the 2016 – 2017 fiscal year. H.B. 1198 was passed without a broad based tax increase or significant overhaul to the tax system. However, among the developments are several noteworthy changes to the Pennsylvania Bank Shares Tax (72 Pa. Stat. Ann. § 7701 et. seq.), including: (1) amending the definition of “doing business”; (2) increasing the rate; (3) revising the definition of “equity capital”; (4) clarifying the goodwill deduction; (5) amending the apportionment provisions; and (6) aligning the definition of receipts to eliminate reference to the federal tax return.
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