Business Privilege Tax Bill Awaiting Action in Senate

A bill that would prevent contractors from having to pay the local business privilege tax in any municipality where they have a project is on the move in the Senate. Senate Bill 601 has been re-referred to the Senate Appropriations Committee after previously passing out of the Senate Finance committee. This bill is in reaction to a 2007 State Court ruling that expanded a municipality's ability to tax anyone conducting business within city limits. The State Supreme Court ruling in V.L. Rendina v. Harrisburg found that a contractor can be required to pay the local business privilege tax even if the contractor does not have a permanent office within city limits. As contractors often have construction trailers at job sites, the ruling could cost contractors a great deal of money.