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PA Bulletin, Doc. No. 18-157

NOTICES

DEPARTMENT OF REVENUE

Act 43-2017 Notice of Pennsylvania Supreme Court Decision Concerning Constitutionality of Corporate Net Income Tax Net Loss Deduction

[48 Pa.B. 701]
[Saturday, January 27, 2018]

 Under section 46 of the act of October 30, 2017 (P.L. 672, No. 43) (Act 43), the Secretary of Revenue is required to publish notice of a decision of the Pennsylvania Supreme Court holding unconstitutional all or a part of the Pennsylvania corporate net income tax net loss deduction limitations authorized by section 401(3)4(c) of the Tax Reform Code of 1971 (act) (72 P.S. § 7401(3)4(c)). Section 49 of Act 43 further provides that the amendment or addition of section 401(3)4(c)(1)(A)(VI), (VII) and (VIII) and (2)(b)(VII) and (VIII) of the act shall take effect on the date of the publication of this notice.

 On October 18, 2017, the Pennsylvania Supreme Court issued an opinion in Nextel Communications of the Mid-Atlantic, Inc. v. Commonwealth, 171 A.3d 682, holding that the flat $3 million net loss deduction carryover provision authorized by section 401(3)4(c) of the act violated Article 8, Section 1 of the Pennsylvania Constitution (also known as the Uniformity Clause). On January 4, 2018, the Pennsylvania Supreme Court denied Nextel's application for reargument.

 In accordance with section 46 of Act 43, the Secretary of Revenue hereby provides notice that the Pennsylvania Supreme Court held unconstitutional all or a part of the Pennsylvania corporate net income tax net loss deduction limitations authorized by section 401(3)4(c) of the act and that the amendment or addition of section 401(3)4(c)(1)(A)(VI), (VII) and (VIII) and (2)(b)(VII) and (VIII) of the act take effect on the date of the publication of this notice.

C. DANIEL HASSELL, 
Secretary

[Pa.B. Doc. No. 18-157. Filed for public inspection January 26, 2018, 9:00 a.m.]


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