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of the Commonwealth of Pennsylvania

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    Corporation Taxes

    Public Utility Realty Tax

    The public utility realty tax (PURTA) is levied against certain entities furnishing utility services regulated by the Pennsylvania Public Utility Commission or a similar regulatory body. The commonwealth imposes this tax on public utility realty in lieu of local real estate taxes and distributes the local realty tax equivalent to local taxing authorities.

    Overview

    The public utility realty tax (PURTA) is levied against certain entities furnishing utility services regulated by the Pennsylvania Public Utility Commission or a similar regulatory body. The commonwealth imposes this tax on public utility realty in lieu of local real estate taxes and distributes the local realty tax equivalent to local taxing authorities.

    The Tax Reform Code of 1971 provides for a revenue distribution to local taxing authorities each October 1st.

    • “Local Taxing Authority” is defined as a county, city, institution district, borough, town, township or school district having authority to impose taxes on real estate. By law, a local taxing authority that fails to file its annual report cannot participate in this distribution.
    • To take part of the distribution, each LTA is required to file an annual RCT-900 report with the Department of Revenue by April 1st for the prior tax year. LTAs are also required to provide annual parcel data and millage rates in a manner prescribed by the department.

    Certain public utilities are required to file an annual report, RCT-127A, with the department; this includes any person, partnership, association, corporation, electric cooperative or other entity furnishing public utility service under the jurisdiction of the Pennsylvania Public Utility Commission or the corresponding regulatory agency of any other state or the federal government on December 31st of the taxable year.

    Public Utility Reporting (RCT-127A) has moved to myPATH. Please file the report electroncially and remit the estimated tax payment on or before May 1st by visiting mypath.pa.gov.

    The PURTA tax base is the fair market value of utility realty, defined as the assessed value of the realty as adjusted by the common level ratio of the county in which the realty is located.

    For detailed and historic Pennsylvania PURTA information, please review the Tax Compendium.

    Public utilities furnishing sewage services and municipal authorities furnishing public utility service are exempt from the tax. Also exempt are easements, pipelines, railroad beds, tracks or other lines, machinery and equipment not affixed to the land. Land and improvements indispensable to the generation of electricity are excluded from the PURTA tax base and the realty tax equivalent, as are certain other property subject to local taxation.

    If you need assistance or have additional questions, please contact the department at ra-purta@pa.gov.