Tuesday, December 17, 2013

Pennsylvania Seen As 'Most Improved' State

Corbett-Cawley Campaign Manager Mike Barley released the following statement following the Council on State Taxation’s (COST) release of a 2013 study proclaiming Pennsylvania as it’s “Most Improved” state:
“This report further acknowledges that Governor Corbett’s ‘More Jobs, Less Taxes’ agenda is growing our economy and putting Pennsylvania back on track. By keeping his promises to reform Harrisburg, get government out of the way, keep taxes low and reduce burdens on job creators, Governor Corbett has improved Pennsylvania’s future as a national and global economic leader.”
“While our opponents, including our leading challenger Congresswoman Allyson Schwartz, continue to outline plans to return to the same failed tax-and-spend agenda that left our state high unemployment and a $4.2 billion budget deficit, Governor Corbett is working hard to put Pennsylvania back on the road to economic prosperity. Bipartisan efforts to secure the first major investment in a world class, economically competitive infrastructure in more than two decades will only build on the progress made from safely enhancing our energy sector, eliminating the inheritance taxes on family farms and small businesses, and other pro-growth policies that have led to the creation of over 141,000 private sector jobs since Governor Corbett took office in 2011.”
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COST’s 2013 Scorecard on Tax Appeals and Procedural Requirements rates Pennsylvania as its “Most Improved” state thanks to the efforts of Governor Tom Corbett. The rating moves Pennsylvania from a “bottom states” ranking of “D” in 2010 to a “top states” rating of “A-“ due in large part to improving Pennsylvania’s tax appeals process in legislation that also eliminated the death tax on Pennsylvania’s family-owned farms and small businesses. The PA Chamber and PMA both praised the Corbett administration’s efforts in working to achieve improvements to Pennsylvania’s economic climate.
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 Pennsylvania – “Most Improved”
“Pennsylvania leapt from a D and a “bottom states” ranking to an A- and a “top states” ranking, mainly through legislation adopted in 2012 (H.B. 761) and 2013 (H.B. 465). In particular, Pennsylvania’s ranking was helped by adopting reforms to provide independence in tax appeals heard by the Board of Finance and Revenue. Like other states embracing independent tax appeals tribunals, Pennsylvania received a boost in the Scorecard’s new “transparency” category due to the statutory requirement that the Board issue written decisions.” (Douglas Lindholm, Ferdinand Hogroian, Frederick Nicely, “The Best and Worst of State Tax Administration: Cost Scorecard on Tax Appeals & Procedrual Requirements,” Council on State Taxation, December 2013)
 Pennsylvania – “2013 Top-Ranked State”
2013 Top-Ranked States
Maine              A
Ohio                A
Alaska               A-
Arizona              A-
Kansas               A-
Montana             A-
Pennsylvania     A-

What Others Are Saying:

Pennsylvania Chamber of Labor and Industry – Dec. 16: “These reforms have allowed for greater independence and transparency in the tax appeals process through the state Board of Finance and Revenue and the Board of Appeals, which have had a positive impact on Pennsylvania’s business climate. Pennsylvania’s greatly improved tax appeals rating is just one of the many results of our work with lawmakers and the Corbett administration to make the Commonwealth’s tax process fairer and more equitable for the state, business and all taxpayers.” (Gene Barr, “New study ranks Pa. the nation’s ‘most improved’ in terms of tax appeals climate,” Pennsylvania Chamber of Labor and Industry, 12/16/13) 
Pennsylvania Manufacturer’s Association – Nov. 6: "While my colleagues from Maryland and New York were not able to share much positive news regarding their governments’ efforts, we have a great story to tell here in PA. The move to 100 percent sales factor for CNI, our commitment to reduce and eliminate onerous and redundant taxes, and the positive trajectory of our tax policy is putting Pennsylvania back on many selection surveys. That's much more than the others can say.” (Carl Marrara, “PA Improves from ‘D’ to ‘A-‘ Under Corbett’s Leadership on Tax Reform,” Pennsylvania Manufacturers’ Association, 11/6/13) 
Council on State Taxation – Nov. 6: “COST commends the leadership and hard work of Governor Corbett and his team for taking courageous and measurable steps to vastly improve state tax administration in Pennsylvania.  Since 2010, Pennsylvania has moved from an overall grade of ‘D’ on our last state tax Administrative Scorecard, to a grade of ‘A-’ in the soon-to-be released 2013 updated report.  By adopting an independent tax dispute forum, embracing more transparent administrative processes, establishing an even-handed statute of limitations for taxpayer disputes, and a few other important reforms, Pennsylvania is being heralded in the business taxpayer community and by COST members as the most improved state for fair, effective and customer-focused tax administration.” (Douglas Lindholm, “PA Improves from ‘D’ to ‘A-‘ Under Corbett’s Leadership on Tax Reform,” Pennsylvania Manufacturers’ Association, 11/6/13)  
Eliminating the Death Tax on Family-Owned Farms and Small Businesses  
Family-Owned Farms: “…House Bill 1864, would exempt transfers of agricultural assets from the Pennsylvania inheritance tax when the receiving heir is a sibling or child of the deceased farmer. The exemption was incorporated into the omnibus Pennsylvania Tax Code bill (House Bill 761) by the Senate this week and passed finally by the House today.” (Office of State Representative Stephen Bloom, “Inheritance Tax Relief Measure Heads to Governor’s Desk,” Pennsylvania House of Representatives, 6/30/12)  
Family-Owned Small Business: “Legislation…to eliminate Pennsylvania’s inheritance tax – commonly referred to as the “death tax” – on small businesses has been sent to Governor Tom Corbett…signed the bill on July 9; it is now Act 52 of 2013…Senator Pileggi’s legislation…was included in an amendment to House Bill 465, which contains numerous amendments to Pennsylvania’s tax code.” (Office of State Senate Majority Leader Dominic Pileggi, “Senator Pileggi’s Initiative to Eliminate Death Tax on Small Businesses Sent to Governor,” Pennsylvania State Senate, 7/8/13)

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