PA Supreme Court Affirms Sales Tax Exemption For “Chep” Pallets

more+
less-

[author: Sharon R. Paxton]

On October 16, 2012, the Pennsylvania Supreme Court affirmed the Commonwealth Court’s decision in Procter & Gamble Paper Products Company v. Commonwealth, 29 A.3d 1221 (Pa. Cmwlth. 2011), in which the Commonwealth Court ruled that “CHEP” pallets qualify as exempt “wrapping supplies.”

P&G Paper rents pallets from CHEP USA. Following use, the pallets are returned to CHEP, which reconditions and then reissues the pallets. At audit, the Pennsylvania Department of Revenue assessed Use Tax on P&G Paper’s payments for use of the pallets. On appeal, the Department’s Board of Appeals and the Board of Finance and Revenue rejected the company’s claim that the pallets are exempt “wrapping supplies,” on the basis that the pallets are taxable as “returnable containers.” The Commonwealth Court endorsed P&G Paper’s argument that the pallets, themselves, are not “containers” and constitute exempt “wrapping supplies.”

Companies which have paid tax but have not filed refund claims should contact a member of the McNees SALT Group for assistance in filing claims.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McNees Wallace & Nurick LLC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×