State and Local Taxation: Philadelphia Taxpayers Are Entitled to Open-Ended Credits for Overpayments

city of PhiladelphiaOn December 21st, the Supreme Court of Pennsylvania issued an opinion that carries significant potential benefits to Philadelphia taxpayers; a divided court held that taxpayers were entitled to credit for overpayments under Section 19-2610 of the Philadelphia Code, even if the period in which a refund can be sought had expired. City of Philadelphia v. City of Phila. Tax Rev. Board ex rel. Keystone Health Plan East, Inc., No. 19 EAP 2014, 2015 Pa. LEXIS 2988 (Pa. Dec. 21, 2015). While the City sought reargument, that motion was recently denied.

The taxpayers were subsidiaries of Independence Blue Cross that did business in the City of Philadelphia and were subject to its Business Privilege Tax (“BPT”), now known as the Business Income and Receipts Tax.… Read More