This year has proven to be a busy year in Pennsylvania’s state and local tax (SALT) world, with some notable taxpayer wins and losses. This article will highlight the top three taxpayer SALT victories of 2019.

Taxpayer Uniformity Argument Wins (Again)

The uniformity clause of Pennsylvania’s Constitution has a long and storied past, wrought with inequity in the form of special tax laws applicable only to particular industries or individuals. During the early 19th century, such special tax laws began to thrive in Pennsylvania during a time when many states were trying to foster infrastructure development within their borders and engage in the boom of the Industrial Revolution. The Pennsylvania legislature directly financed many of these ventures and also provided indirect subsidies by bestowing preferential tax treatment upon certain industries. The railroad industry was especially successful in the field of taxation—so much so that in 1861 the Pennsylvania legislature voted to exempt the railroad industry from taxation altogether. Not surprisingly, this preferential treatment spurred anger among the people. This resentment ultimately pressured the legislature to authorize a constitutional convention to address the issue—resulting in the establishment of Pennsylvania’s uniformity clause. The uniformity clause provides that “all taxes shall be uniform upon the same class of subjects within the territorial limits of the authority levying the tax and shall be levied and collected under general rules.”