Telecom Gross Recipts Tax Decision Issued

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In a decision just issued as this newsletter was going to press, the Commonwealth Court has ruled that charges for private lines and for directory assistance are subject to Pennsylvania’s Gross Receipts Tax on telecommunications companies.  The court, however, ruled that charges for installation, repair, relocation and other “non-recurring charges” are not subject to the tax.  Further appeal is anticipated.  We will provide additional analysis in our next newsletter.