Pennsylvania State and Local Tax Update—Fourth Quarter 2022

It was a relatively quiet fourth quarter in Pennsylvania, but the Commonwealth Court issued an interesting decision in the sales and use tax and inheritance tax issues. There also was some welcome news for Philadelphia business taxpayers and helpful guidance about realty transfer tax refunds.

In Quality Driven Copack, Inc., v. Commonwealth, the Commonwealth Court overruled the taxpayer’s exceptions and affirmed its decision that the taxpayer was not engaged in manufacturing. The taxpayer purchases food components and packaging materials, blends the components into meals, packages the finished meals into various types of containers, and freezes them to complete the process. The meals then are sold to the taxpayer’s customers.

Read the full article here.