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Politics & Government
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Pennsylvania Expanding Tax To More Out-Of-State Corporations

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Matt Rourke
/
AP

Pennsylvania will start collecting corporate income taxes from companies that don't have offices, employees or property in the state, making it one of the last states to target such companies.

Pennsylvania announced the change starting in the 2020 tax year through a tax bulletin published Sept. 30. It cites a ground-breaking U.S. Supreme Court decision last year as the legal basis to expand how it applies the tax.

The change will undoubtedly result in more cash for Pennsylvania, which is facing huge demographic challenges in the coming years.

Until now, corporations without offices, employees or property in Pennsylvania didn't have to file a Pennsylvania tax return. Starting next year, they'll have to pay the state's net corporate income tax if they record more than $500,000 in sales in Pennsylvania.