Pennsylvania Supreme Court Rules that Electricity Distribution, Transmission and Transition Charges are Subject to Sales Tax


On November 5, 2009, in Spectrum Arena Limited Partnership v. Commonwealth, 983 A.2d 641 (Pa. 2009), the Pennsylvania Supreme Court affirmed the April 2008 decision of the Commonwealth Court that distribution, transmission and transition charges associated with the purchase of electricity for non-residential purposes (“Delivery Charges”) are subject to Pennsylvania Sales Tax. Numerous refund claims had been filed by commercial electricity users seeking a refund of sales tax paid on Delivery Charges in cases where the electricity charges had been “unbundled,” i.e., one utility company generated the electricity purchased by the consumer and another “local” utility company delivered the electricity to the consumer through its power lines.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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

Written by:


McNees Wallace & Nurick LLC on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*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. Or, sign up using your email address.