PA
Pennsylvania Senate Bill SB659

Pennsylvania 2023-2024 Regular Session

Pennsylvania Senate Bill SB659

Introduced
5/3/23  
Refer
5/3/23  

Caption

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

Impact

The proposed changes in SB659 could have a significant impact on state laws regarding personal income tax. By clarifying the definitions and creating new provisions for the taxation of pass-through entities, the bill is positioned to ensure that income generated through these entities is taxed at the entity level before being distributed to partners. This could affect many business owners and operators throughout the state, potentially modifying their tax liabilities and influencing financial planning related to personal income tax.

Summary

SB659 addresses various aspects of personal income tax, proposing amendments that further define tax regulations. The bill outlines the imposition of an elective tax at the pass-through entity level, which affects how income from these entities is taxed and delineates the taxability of partners involved in such entities. The modifications proposed in the bill seek to clarify existing definitions and streamline tax processes for entities and their partners, aiming to enhance compliance and potentially increase state revenue from personal income tax.

Sentiment

The sentiment surrounding SB659 appears to be cautiously optimistic among legislative supporters while eliciting concern from some stakeholders in the business community. Supporters view the bill as a necessary step to ensure fairness and clarity in tax regulation that could ultimately enhance the state’s revenue stream from personal income taxation. However, critics raise concerns about the implications of increased tax burdens on small businesses and the potential complexity of compliance that could arise from the new tax definitions and structures.

Contention

Some points of contention revolve around the notion of tax fairness and the administrative burden that could stem from implementing the changes proposed by SB659. Opponents of the bill worry it could disproportionately affect small businesses that operate as pass-through entities, fearing that the new tax structure may lead to unfavorable conditions for their financial sustainability. As discussions continue, the balance between enhancing state revenue and maintaining a supportive environment for business will likely be a focal point of the ongoing dialogue surrounding the bill.

Latest SB659 Activity

Companion Bills

No companion bills found.

Previously Filed As

PA SB396

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

PA HB1584

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

PA HB1703

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

PA HB1636

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries.

PA SB815

In personal income tax, further providing for imposition of tax and for taxability of estates, trusts and their beneficiaries; and, in corporate net income tax, further providing for manufacturing innovation and reinvestment deduction.

PA HB1126

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB655

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; in tax credit and tax benefit administration, further providing for definitions; and providing for personal health investment tax credit.

PA HB2452

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB1106

In personal income tax, further providing for classes of income; in corporate net income tax, further providing for definitions; and providing for personal health investment tax credit.

PA SB660

In personal income tax, further providing for income taxes imposed by other states.

Similar Bills

PA HB1584

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

PA HB1703

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners, for income of a Pennsylvania S corporation and for income taxes imposed by other states.

PA SB396

In personal income tax, further providing for definitions, providing for elective tax imposed at pass-through entity level and further providing for taxability of partners and for income of a Pennsylvania S corporation.

PA HB1773

In personal income tax, further providing for imposition of tax and for amount of withholding tax.

PA HB1649

Eliminating school district property taxes; imposing county and school district taxes; establishing the School District Emergency Fund and the School District Property Tax Elimination Fund; consolidating Articles II and III of the Tax Reform Code of 1971; in preliminary provisions relating to sales and use tax, providing for definitions; in taxation generally relating to sales and use tax, providing for exclusions and for transfer to county sales and use tax accounts; in preliminary provisions relating to personal income tax, providing for definitions; and making repeals.

PA HB177

Providing for the creation of keystone opportunity dairy zones to facilitate the economic development of Pennsylvania's dairy industry; authorizing expenditures; providing for tax exemptions, tax deductions, tax abatements and tax credits; creating additional obligations of the Commonwealth and local governmental units; prescribing powers and duties of certain State and local departments, agencies and officials; and imposing penalties.

PA HB500

In Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credits, repealing provisions relating to local resource manufacturing, providing for Reliable Energy Investment Tax Credit, repealing provisions relating to Pennsylvania milk processing and providing for Pennsylvania milk processing; in regional clean hydrogen hubs, further providing for definitions, for eligibility, for application and approval of tax credit, for use of tax credits and for applicability; in semiconductor manufacturing and biomedical manufacturing and research, further providing for definitions and for application and approval of tax credit and providing for geothermal energy and for sustainable aviation fuel; and, in application of Prevailing Wage Act, further providing for definitions.

PA HB995

Providing for the creation of keystone opportunity dairy zones to facilitate the economic development of Pennsylvania's dairy industry; authorizing expenditures; providing tax exemptions, tax deductions, tax abatements and tax credits; creating additional obligations of the Commonwealth and local governmental units; prescribing powers and duties of certain State and local departments, agencies and officials; and imposing penalties.