LETTER: CPA's Will Fight 'Double Taxation', Despite Governor Wolf Veto

The following letter to the editor was submitted by Lisa Myers, CPA, president of the Pennsylvania Institute of Certified Public Accountants (PICPA). To submit a letter to the editor at Patch, please email justin.heinze@patch.com.

On Friday, Nov. 4, Gov. Tom Wolf vetoed House Bill 245 (HB 245), legislation that was overwhelmingly passed by the House (148-42) and Senate (36-12). The purpose of the bill was to ensure that Pennsylvania taxpayers are not double-taxed by local jurisdictions that levy a local earned income tax. The language in HB 245 provided greater uniformity and clarity in the collection of local income taxes. Without this legislation jurisdictions have free reign to continue this practice.

HB 245, sponsored by Rep. George Dunbar (R-Westmoreland), was crafted with input from CPA tax practitioners from across the state, including members of the Pennsylvania Institute of CPAs (PICPA). The bill provides consistency to the local earned income tax crediting provisions for all taxpayers – an important protection from double taxation. Other taxpayer protection provisions in HB 245 include limited oversight of the local tax system by the Department of Community and Economic Development, a prohibition against charging taxpayers with no income a fee when they do not file a return, and clarification of the withholding tax rates for employees who are on a temporary assignment.

According to Dunbar, “With absolutely no warning or previously stated objections, the governor vetoed this legislation which passed both the House and Senate with strong bipartisan support and several agreed-to-revisions between the Legislature and his own Department of Community and Economic Development.” He further explained that the justification the governor offered – the adverse financial impact on certain school districts – “demonstrates a clear lack of understanding on his part about the type of oversight and clarifications that this legislation provides.”

While CPAs are disappointed by Wolf’s unexpected 11th hour veto, we will work to have this pro-taxpayer bill reintroduced in the new session. The PICPA’s fight to protect taxpayers from aggressive tax collectors and level the playing field continues.

Lisa A. Myers, CPA

President – Pennsylvania Institute of CPAs

Patch file photo.