Pennsylvania Sets Threshold For Taxing Out-of-State Companies

Oct. 1, 2019, 6:38 PM

Pennsylvania will start next year to collect corporate tax from out-of-state businesses that meet a $500,000 gross receipts threshold, extending its interpretation of a landmark U.S. Supreme Court sales-tax ruling.

The high court’s June 2018 decision in Wayfair v. South Dakota swept away the requirement that a company have a physical presence in a state to establish nexus, or the connection sufficient to support the state’s taxation. In Sept. 30 guidance (Corporation Tax Bulletin 2019-04), the Pennsylvania Revenue Department applied the Wayfair reasoning to its corporate net income tax.

The move by Pennsylvania to apply ...

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