Pennsylvania tax: State adopts tax law changes as part of 2009-2010 budget process

On October 9, 2009, in conjunction with the 2009-2010 Budget process, Pennsylvania Governor Edward G. Rendell signed House Bill 1531. The new law makes various business and personal tax changes and adopts a tax amnesty program to begin in 2010. Included among the more significant Pennsylvania tax law changes are the following:
- Expansion of the Corporate Net Income Tax net operating loss and increased weighting of the apportionment sales factor,
- Extension of the sunset of the Capital Stock/Foreign Franchise Tax and an increase in the tax rate for current and prospective periods,
- Semimonthly reporting and payment of the Sales and Use Tax required for large vendors,
- Increased and expanded Excise Tax on cigarettes and certain tobacco products,
- New Excise Tax on the receipts of certain Managed Care Organizations,
- Revised employer payment timing regarding Personal Income Tax withholding,
- Reduction of funding caps for various tax credit programs.